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Group Commits $3 Billion Investment to Boost African Agriculture and Food Production

November 10, 2023

The Alliance for Special Agro-Industrial Processing Zones is committing $3 billion towards boosting food production in Africa. The alliance made up of the African Development Bank Group, Afreximbank, Arise Integrated Industrial Platforms, the Islamic Development Bank Group and the United Nations Industrial Development Organization was launched at the 2023 Africa Investment Forum Market Days a new private sector-focused Alliance to bridge the critical financing gap in agriculture.

Founding members of a new private-sector focused Alliance for Special Agro-Industrial Processing Zones (SAPZ) have announced $3 billion in new investment to transform Africa’s underdeveloped rural areas into agro-industrial corridors of prosperity.

The Alliance, comprising development financial institutions, the private sector and development-oriented technical partners, will also help streamline the development and delivery of SAPZ projects.

The new commitments consist of $1.1 billion by the African Development Bank Group, $1 billion by Afreximbank, $300 million by the Islamic Development Bank Group (IsDB) and $600 million from Arise Integrated Industrial Platforms (Arise IIP) and its partners.

Dr. Akinwumi A. Adesina, President of the African Development Bank Group, said, “The Alliance will raise funds through various investment windows for project preparation, project development and construction, and financing for tenant companies.”

“By doing so, the Alliance will bridge the critical financing gap, complement existing initiatives, and mobilise resources towards our common goal of enhancing agricultural value addition in Africa”, Adesina added.

The Alliance was launched at the 2023 Africa Investment Forum Market Days¾the continent’s premier investment marketplace¾in Marrakech, Morocco on Wednesday. During the launch session, founding members discussed how the SAPZ model could impact Africa’s agro-industrialisation process.

“The beauty of this Alliance is that it brings together a lot of different, diverse players¾this is just a start and others will join us,” said Dr. Beth Dunford, African Development Bank Vice President for Agriculture, Human and Social Development.

Special Agro-Industrial Processing Zones stimulate structural transformation in agriculture by connecting rural and urban development through the zone’s ecosystem. These zones integrate smallholder farmers into value chains through logistics and infrastructure, linking them to agro-industrial processors and consumer markets.

Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, welcomed the emergence of the Alliance and suggested that, to attract the private sector, the creation of continental regulatory bodies that countries could respect should be considered. “Projects of this nature are very visible,” he explained.

According to the Alliance members, meeting this financing goal will deliver an additional 15 to 20 SAPZ projects in various countries across the continent and improve administrative, policy and investment incentives.

“Financing alone has never been enough to develop,” said Eng. Hani Sonbol, CEO of the International Islamic Trade Finance Corporation and acting CEO of the Islamic Corporation for the Development of the Private Sector, representing IsDB President Dr. Muhammad Al Jasser. “Strengthening food sovereignty in Africa will require us to think differently in terms of investment. We look for self-sufficiency, climate change and adaptation, and how to attract private sector involvement”, he said.

Arise IIP CEO Gagan Gupta underlined the need for infrastructure around the zones that reflects the need of these communities, including housing, transportation, health and extension services. “These zones rely on the governments for policy frameworks, supporting infrastructure, and training and vocational centres,” he said.

The United Nations Industrial Development Organization (UNIDO) brings on its part to the Alliance a wealth of technical assistance knowledge, practical experience, tools and methodologies.

“We have a lot of experience in developing, planning and implementing industrial parks and special economic zones,” said Gunther Beger, UNIDO Managing Director of the Directorate for Sustainable Development Goals, Innovation and Economic Transformation. “The Alliance presents a completely new approach to transform Africa’s agro-food system. This is a much-needed partnership of financial institutions, public and private sector players,” he added.

Across the continent, the African Development Bank has already committed $853 million to develop more than two dozen Special Agro-Industrial Processing Zones in 11 countries. This investment has attracted $661 million in cofinancing from Bank partners.

Professor Oyebanji Oyelaran-Oyeyinka, Senior Special Advisor to Dr. Adesina, concluded: “SAPZ is a tool designed to achieve the twin objectives of structural transformation and rural development through agro-industrialisation.”

Prior to the panel discussion, Mr. Ryad Mezzour, Minister of Industry and Trade, Kingdom of Morocco, called on large private sector companies to become tenants in SAPZ. “You need a company that can bring the others – that integrates this area.”

Rwanda’s Minister of State for Treasury, Richard Tusabe, said: “Special Agro-Industrial Processing Zones will give us a chance to mass produce the food we need to feed our population. We need to feed our people¾there is no shortcut.”

The Africa Investment Forum draws African heads of government, investors, transaction sponsors and development financial institutions. The Forum also includes boardroom sessions that showcase billions of dollars in agribusiness, transport and energy deals, among other critical sectors, to investors

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Afreximbank Doles Out $1-Billion African Film Fund

Prof Benedict Oramah, president Afriexim bank

The African Export-Import Bank (Afreximbank) is walking its talk with the announcement of the establishment of a $1-billion African Film Fund to be launched in 2024 to support the continent’s film industry. This was made known by Kanayo Awani, Executive Vice President, Intra-African Trade Bank, at Afreximbank, announced in Cairo today.

Addressing the opening of the 2023 CANEX Summit held as part of the third Intra-African Trade Fair (IATF2023), Mrs. Awani said that the fund would oversee film financing, co-finance with large studios, finance African filmmakers and finance producers and directors of film projects across the continent.

She noted that during CANEX WKND 2022, the Bank had increased the financing it was making available to the creative sector from US$500 million to US$1 billion and that the Bank currently had a pipeline of over US$600 million in film, music, visual arts, fashion, and sports deal.

“The very first film we financed recently premiered at the Toronto Film Festival,” Mrs. Awani said, adding, “The Bank has several in the pipeline from Nigeria, South Africa, and Kenya, which should be on streaming platforms in 2024.”

Acknowledging that the film and audiovisual industries in Africa accounted for US$5 billion of the continent’s GDP and employed an estimated five million people, with the potential to create over 20 million jobs and generate US$20 billion in revenues annually, Mrs. Awani noted that the sector faced several challenges, including limited access to financing and copyright infringement due to weak copyright laws, enforcement mechanisms and a lack of awareness.

The sector was also confronted with infrastructure and technology gaps, lack of capacity and shortage of skilled professionals and limited market access and international exposure, as a result of which African creative and cultural products often struggle to gain exposure and access to international markets.

Earlier, Boris Kodjoe, a celebrity actor of Ghanaian descent, highlighted how the creativity of Africans had influenced various aspects of modern life, including music, fashion, art, design, social consciousness, business, sports, film and TV. He said that the exploitation of black creativity by the West had had lasting effects and that, despite admiration of black excellence, Africa still faced branding challenges due to external perception fuelled by the traditional media’s depiction of poverty, famine, civil wars and migration on the continent.

Mr. Kodjoe said that the world craved culturally specific global content and that Africa was a key player in meeting that demand. With the continent’s young population and high connectivity, studios, networks, promoters and brands were investing in solutions to reach diverse audiences. Films and TV shows with diversity performed better than others by 30 per cent and Afrobeats was taking over global airwaves. By 2030, Africa was projected to produce up to 10 per cent of global creative goods export worth roughly $200 billion or four per cent of Africa’s GDP.

Also speaking, Albert M. Muchanga, Commissioner for Trade and Industry of the African Union Commission, said that the creative sector in Africa was rapidly growing and making a significant contribution to the inclusive growth and sustainable development of African economies.

“I reaffirm my belief that the African creative industry has huge potential to be a source of employment and revenue to create the Africa we want – revenue from intra-African trade as well as revenue from the rest of the world.”

Ambassador Muchanga urged African nations to convert their vast potential into plans and projects that yield tangible results, stressing the need to also invest in protecting international property rights.

CANEX is an Afreximbank initiative to support Africa and the African Diaspora’s creative and cultural industries by providing financing and non-financing instruments to boost growth. The seven-day CANEX Summit is intended to further develop conversations and provide additional business-to-business and business-to-government opportunities. It includes a fashion show featuring a range of bold and exciting designs from across Africa and the Diaspora and a CANEX Music Factory, hosted by renowned South African producer Oskido, which will provide songwriters and beat makers with the opportunity to record their work.

Creative Africa Nexus (CANEX) programme set up by Afreximbank seeks to facilitate the development and growth of the creative and cultural industries in Africa and the diaspora. The programme provides a range of financing and non-financing instruments and interventions aimed at supporting trade and investment in Africa’s creative sector.

IATF2023, Africa’s largest trade and investment fair opened on 9th November and will run till 15th November 2023.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Egyptian FinTech Fawry and Group-IB Jointly Confirm System Security Amidst Recent Controversy

In the latest developments surrounding Fawry’s alleged security breach, the company has released the findings of a meticulous examination conducted by Group-IB, a globally recognized cybersecurity firm. The results of this examination affirm that Fawry’s systems, serving both individual and institutional clients, remain secure with no signs of breach or data leakage.

Fawry, a leading e-payments solutions provider in Egypt, took a proactive step by enlisting Group-IB to conduct a thorough examination of its systems and applications. The multinational cybersecurity firm’s comprehensive review of the infrastructure supporting Fawry’s applications has provided assurance that the company’s security measures are robust and effective.

Group-IB’s affirmative findings have been promptly communicated to regulatory authorities, and Fawry expresses gratitude for their collaboration throughout the inspection process. In light of these examinations, Fawry reassures its users that no data related to cards used in its applications or any financial transactions, whether for individuals or institutions, has been compromised. The company emphasizes that its applications remain entirely safe for use.

Addressing a recent incident, Fawry acknowledges the temporary suspension of the myFawry application, attributing it to an unprecedented surge in customer demand that exceeded the application’s capacity. Fawry assures its customers that a measured and composed approach is being taken to restore normal functionality to all applications promptly.

In an additional commitment to user security, Fawry pledges to conduct thorough verification procedures regarding information circulated on various websites. This verification will only proceed after ensuring the absolute integrity of the infrastructure supporting applications for individuals and institutions.

As Fawry and Group-IB collaborate to address concerns and fortify security measures, the unfolding situation will continue to be closely monitored. Updates will be provided as the company works towards full restoration and verification of its systems.

Egyptian FinTech Fawry Faces Alleged Security Breach as Cyber Attack Raises Concerns

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

Banking App Kidnappings on The Rise in South Africa

South Africa is witnessing a rise in the kidnappings of banking app with the aim of gaining unauthorised access to victims’ money under duress. The development has been described as a worrying trend as victims are being kidnapped and coerced, often under the threat of violence, into making transfers from their banking apps, often stripping them of all their savings or completely looting their other accounts.

Incidents involving kidnapping or hijacking of individuals, with the aim of gaining unauthorised access to their banking apps under duress, are on the rise, experts say.

“There are different syndicates operating, and they have their own targets and modus operandi. Attacks on business owners have occurred, but some attacks are more opportunistic in nature,” a spokesman for Standard Bank was quoted as saying.

Victims’ accounts are used to make online purchases both locally and across South Africa’s borders. These “shakedowns” are executed in a number of ways.

Some victims are forced to make payments into bank accounts outside of the country, which makes tracing the funds nearly impossible for law enforcement.

In other cases, victims’ accounts are used to make online purchases both locally and across South Africa’s borders. In yet another example, multiple digital wallet payments or account transfers are made to a local recipient by syndicate members holding the victim hostage while other perpetrators drive around and make withdrawals at ATMs as quickly as they can. In all instances, common banking app protection features including Pins, biometric authentication and facial recognition prove to be ineffective.

“In an app kidnapping – where someone is forced to open their own profile on their own phone – there isn’t much one can do. It’s similar to someone forcing you at gunpoint to withdraw cash using your own card and Pin at an ATM,” said Lezanne Human, an executive director at Bank Zero.

Banking app kidnappings – what to do

For many, the knee-jerk reaction to what is perceived as a helpless situation is to delete all banking apps on personal devices entirely, but this makes transacting and managing funds on a day-to-day basis cumbersome.

Human recommends a workable middle ground: “Keep only enough funds in your transactional account to cover immediate expenses. Place the rest in a seven-day (or longer) notice account. If you then need urgent access to it, you can action an ‘early breakage’, but funds will only be available the next day – long after the criminals have moved on,” she said.

This strategy may work for some people, provided their banking needs do not go beyond the simplicity of a transactional or savings account, but it is not applicable in all cases all the time.

As George Wandsella, head of enterprise risk and fraud strategy at TymeBank, explains, banking app shakedown syndicates are discerning in the way they choose their targets, often honing in on individuals more likely to have a sophisticated account profile with more banking products – and more money in those accounts.

“Kidnapping cases can affect anyone, but generally speaking those higher at risk include children, business owners, high-income individuals, those living alone and newcomers to South Africa,” said Wandsella. Representatives from Standard Bank, TymeBank and Bank Zero all told TechCentral that detecting and stopping a banking app shakedown in progress is difficult to do.

Tracing stolen funds after the fact also often leads nowhere because, although law enforcement may know where the money was withdrawn, finding the perpetrators is difficult because they change their hunting grounds often. For consumers to insulate themselves, they must be aware of how these criminals operate.

“Prevention is key for this type of crime, and customers are urged to educate themselves on the tactics used by criminals and ensure that the necessary precautions to prevent kidnapping are exercised,” said Wandsella.

Although an extra dose of vigilance might help stop some incidents, it is no magic elixir. When the worst that can happen does, Christina Pieterse, head of Nedbank’s digital channels, recommends the following protocol for banking app shakedown victims:

Cooperate: The safety of your life should always be top priority. If someone is threatening you with violence, it’s best to cooperate and do as they say to ensure your well-being.

Stay calm: Try to remain as calm as possible. Panic can escalate the situation, so it’s essential to keep a level head.

Memorise details: If you can, make mental notes about the assailants’ appearance, their accents, or any identifying features. This information may be helpful to law enforcement later.

Stay passive: Avoid any sudden or aggressive actions that could provoke the kidnappers.

Comply with their demands: Comply with their instructions, such as accessing your banking apps. Your personal safety should always come first.

Seek help later: Once the situation is resolved, immediately contact the authorities and your bank to report the incident.

The South African Banking Risk Information Centre (Sabric) tracks banking-related criminal activity, providing information on the various types of banking crimes. In its Annual Crime Stats 2022 report released last month Sabric noted that other types of mobile banking crimes were in decline while banking app fraud cases increased by 36%, suggesting that criminals are now migrating to banking app shakedowns and other methods since the previously popular Sim-swap method is proving to be less effective than in the past.

“Encouragingly, the number of reported mobile banking fraud incidents saw a 9% reduction in 2022. Additionally, incidents involving Sim swaps declined from 87% in 2021 to 76% in 2022, indicating a waning efficacy of this fraudulent tactic,” it said.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

BasiGo Secures $1.5M Funding from USAID to Drive Electromobility in East Africa

The United States Agency for International Development (USAID) has taken an unexpected turn in its grant allocations for East Africa. Traditionally focused on biodiversity, water, and sanitation, USAID has recently awarded $1.5 million to BasiGo, a Kenyan startup specializing in assembling electric buses. This financial boost aims to “support pilot testing and scale-up” of electric vehicles in Rwanda, where BasiGo is expanding its activities in the field of electromobility.

The American support comes at a crucial time for BasiGo, as it plans to accelerate the electrification of public transport in Rwanda. The country faces the dual challenges of increasing fuel prices and the pressing need to diversify its public transportation offerings. Jit Bhattacharya, the founder of BasiGo in 2017, is optimistic about the impact of the funding. He believes that their innovative Pay-As-You-Drive payment solution, combined with the support of the Rwandan government, will facilitate bus operators in Kigali to swiftly incorporate more electric buses into their fleets.

This financial injection from USAID, facilitated through its Development Innovation Ventures program, is expected to position BasiGo as a key player in the East African electric vehicle market. The initial phase involves deploying two electric buses in the Rwandan capital, Kigali, as part of a pilot program. These buses have already arrived in Mombasa, a port city in southern Kenya.

Looking ahead, BasiGo has ambitious plans to deliver a total of 200 electrified vehicles to Rwanda by the end of 2024. This initiative is part of a commercial partnership established with the Rwandan company AC Group in July 2023. The electric fleet will primarily be operated by well-known public transport operators, including Kigali Bus Service, Royal Express, and Volcano. BasiGo intends to provide these operators with comprehensive services, encompassing recharging and maintenance, further solidifying its commitment to the electrification of public transport in the region.

Africa Lobbies for Lengthy Term for New Agoa Deal

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

Egyptian FinTech Fawry Faces Alleged Security Breach as Cyber Attack Raises Concerns

In a recent turn of events, Fawry, Egypt’s leading electronic payment solutions and digital financial services company, is grappling with allegations of a significant security breach. The company, however, vehemently denies these claims and asserts the integrity of its electronic defenses.

Amidst rumors circulating on social media platforms suggesting a potential cyber attack on Fawry, the company took swift action by conducting live investigations on its servers. The results of these tests, according to Fawry, reveal that servers serving both customers and banks have not suffered any breaches. Additionally, Fawry assures its users that no financial or banking data of customers has been compromised.

Egypt's Fawry secures license to finance businesses. 2 other stories and a trivia - Ripples Nigeria — *Credits: Fawry*

In an official statement, Fawry emphasized its commitment to the highest cybersecurity standards, aligning with the requirements set by global regulatory authorities. The company seeks to quell concerns about the alleged breach, maintaining that the reports are unfounded.

However, conflicting information has surfaced online, with some users claiming unauthorized charges on their accounts. A screenshot circulating on social media purports to be an internal memo from AAIB, suggesting that Fawry is undergoing a cyber attack and customer information may be exposed. The alleged perpetrator behind this breach is the LockBit 3.0 ransomware, with a ransom deadline set for November 28. The amount demanded remains undisclosed.

Fawry users are urged to take precautionary measures, with some social media posts advising the removal of credit card details from the Fawry app until the situation is resolved. Despite the company’s reassurances, these reports have caused a minor dip in Fawry’s stock price, slipping from 5.46 Egyptian pounds to 5.2 EGP — approximately a 4.75% decrease in Fawry’s stock price as at the time this report was filed.

As the situation unfolds, Fawry For Banking Technology And Electronic Payment S.A.E, a company providing online payment, ATMs, mobile wallets, and retail points, faces increasing scrutiny over the alleged security breach. The company’s response and the evolving details of the cyber attack will be closely monitored to determine the full extent of the incident and its impact on Fawry and its users. We will continue to provide updates as more information becomes available.

Africa Finance Corporation (AFC) Supports Egyptian Government as Re-Guarantor on Samurai Bond Issue

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

Moroccan Logistics Startup CloudFret Doubles Down with $2.1 Million Investment

In a successful move to bolster its operations, CloudFret, a transport and logistics startup, recently concluded a new funding round, securing €2 million ($2.1 Million) from investors, AfriMobility and Azur Innovation Fund. The startup, operational in Morocco since 2021 and extending its presence to Marseille, is poised for rapid development, with plans to double its workforce by the close of 2024. The focus of this funding round centers on the introduction of an innovative solution geared towards optimizing empty truck returns, specifically targeting the intra-European market.

Established in 2021 by Driss Jabar, CloudFret initially concentrated on mitigating empty truck returns between the Mediterranean shores through an AI algorithm-driven platform connecting shippers and carriers. This mobile Software as a Service (SaaS) solution is accessible across all European carriers, freight forwarders, and shippers’ download platforms.

With the introduction of this new solution, CloudFret seeks to expand its clientele among shippers and partner carriers. Presently employing approximately a dozen individuals, the company has ambitious plans to double its workforce by the conclusion of 2024.

CloudFret’s pioneering approach incorporates artificial intelligence to detect empty cargo vehicles, directing them to available goods for transportation. This strategy minimizes empty truck returns, particularly between Europe and Africa, adopting a concept akin to carpooling, as exemplified by platforms like BlaBlaCar.

Driss Jabar is the Founder and CEO of CloudFret. Credits: Cloudfret

Driss Jabar, Founder and CEO of CloudFret, elucidated that the platform originated from the observation of trucks covering extensive distances while empty. Beyond benefiting loaders and transporters, the platform empowers partners to expand operations and reduce delivery times, offering real-time updates on the cargo’s journey.

CloudFret presently serves 130 shipper clients, engaging with 900 transport companies operating 7,000 vehicles across six countries — France, Spain, Morocco, Senegal, Portugal, and Italy.

In addition to optimizing empty truck returns, the startup has broadened its services, unveiling a Business-to-Business (B2B) SaaS Marketplace. This marketplace not only provides optimal transport offers but also incorporates additional services such as FastPay payment after delivery, fuel cards with discounts and deferred payment, and cargo insurance at competitive market prices.

Driss Jabar shared insight into the company’s future, stating that “other large-scale investments are in the closing phase,” indicating a promising trajectory for CloudFret as it continues to reshape the transport and logistics industry.

Moroccan Logistics Startup, Cloud Fret, Raises $1M In New Funding Round

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

Africa Finance Corporation (AFC) Supports Egyptian Government as Re-Guarantor on Samurai Bond Issue

November 9, 2023

Banji Fehintola, Senior Director and Treasurer of AFC

Africa Finance Corporation (AFC) (www.AfricaFC.org), the continent’s leading infrastructure financier and solutions provider, today announced its support to the Arab Republic of Egypt as a Re-Guarantor on a private placement offering of JPY 75 billion, 5-year, Samurai bonds. This landmark financing was guaranteed by Sumitomo Mitsui Banking Corporation with a full re-guarantee provided by AFC and SMBC Nikko acting as the Sole Lead Arranger on the transaction.

The Arab Republic of Egypt, a shareholder and member country of AFC, leveraged the Corporation’s A3 investment grade rating to access international capital markets at a time when borrowing costs are significantly elevated and market access is effectively shut for many emerging market issuers. The guaranteed Samurai bond issue allows Egypt to deepen its access to the Japanese bond market, while significantly lowering the country’s all-in cost of the funding, when compared to an equivalent new US Dollar benchmark Eurobond issue. This transaction demonstrates AFC’s commitment to providing counter-cyclical support to its member countries and African sovereigns in general, as they implement structural reforms and strategic investments aimed at delivering sustainable economic growth and development.

This bond offering is Egypt’s second foray into the Samurai bond market, coming on the back of an issuance of JPY 60 billion, 5-year Samurai Bonds in March 2022 that was guaranteed by Sumitomo Mitsui Banking Corporation with insurance provided by Nippon Export and Investment Insurance (NEXI). Proceeds of this bond issue will be used to finance the electricity supply infrastructure under the Government of Egypt’s largest agricultural projects being constructed on more than one million acres of land on the northwest coast of Egypt and is expected to contribute to Egypt’s food security and increase agricultural output by 15%.

Commenting on the bond issue, Samaila Zubairu, President and CEO of Africa Finance Corporation, said, “This transaction demonstrates the very essence of AFC, an institution that provides innovative financing solutions to unleash Africa’s immense potential. We are proud to have acted as a reliable bridge connecting Egypt to global capital markets, proceeds of which will finance rapid industrialization and move the country away from exporting agricultural raw materials towards value addition and import substitution. With the right investment in infrastructure, Africa can become instrumental to the global solution to food insecurity.”

Egypt’s Minister of Finance, H.E. Dr. Mohamed Maait also commented on the issuance saying, “Egypt has succeeded in returning to the Japanese markets, as it closed its second Samurai bonds issuance offering of JPY 75 billion, equivalent to about US$500 million, at a pricing of 1.5% per annum and a term of 5 years. The pricing was made possible by the guarantee provided by Sumitomo Mitsui Banking Corporation and full re-guarantee by Africa Finance Corporation. The bond issuance helps us to prolong the average life of the public debt portfolio, reduce the cost of external debt, diversify sources and financing instruments and expand the international investor base. Egypt continues to successfully access the international debt capital markets despite the harsh global economic climate driven by severe inflationary pressures and geopolitical tensions”.

AFC has enjoyed a mutually beneficial relationship with Egypt for many years, with the Arab Republic acceding to membership in 2021 and last year, becoming a shareholder of the Corporation. This successful bond issuance is testament to the significant benefits enjoyed by AFC member countries, as they are able to leverage the Corporation’s investment grade rating, network of partners and preferred creditor status in tapping new funding sources. Member countries also enjoy increased investment allocation, preferred access to AFC’s structuring and lending solutions for sovereign states, reduced debt costs for projects, and access to the Corporation’s Public Sector Advisory and Project Development facilities.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Africa Needs Bold Innovative Initiatives to Unleash the Full Potential of the Continent—King Mohammed VI of Morocco

Morocco’s King Mohammed VI opened the 2023 Africa Investment Forum Market Days on Wednesday with a call for Africans to work together to attract the levels of private investment needed to drive the continent’s inclusive development. The Market Days, an initiative of the African Development Bank and seven other co-founding partners, is taking place in Marrakech, Morocco over the next three days.

The platform advances projects to bankability, raises capital, and accelerates deals toward financial closure.

“Africa needs now more than ever bold, innovative initiatives to encourage private entrepreneurship and unleash the full potential of our continent,” King Mohammed VI said in a keynote speech read on his behalf by his advisor Omar Kabbaj, a President Emeritus of the African Development Bank.

The King said Morocco could serve as a model for other African countries’ efforts to overcome their infrastructure gaps. “Over the past two decades, Morocco has made infrastructure development a priority in all economic sectors,” he said. He also informed the gathering that the country was pushing toward its goal of deriving over 52% of its national electricity mix from renewable energy by 2030.

The King also stressed that African countries should enhance “coordination and cooperation mechanisms to drive regional integration.” As an example of the country’s push to partner with neighbors, he cited the Morocco-Nigeria Gas Pipeline Project. The project will “enable all countries along the pipeline route to have access to reliable energy supplies and to be more resilient to exogenous energy price shocks.”

Several heads of state and over 1000 participants including CEOs, heads of multilateral and regional financial institutions, business leaders and project developers and government ministers are attending the 2023 Market Days. Heads of state and government took the opportunity to make the case for investment in their countries by participating in deal-focused boardrooms and thematic plenaries. They include Azali Assoumani, President of the Union of Comoros and current chairperson of the African Union, Tanzania’s President Samia Suluhu Hassan, the President of Sierra Leone Julius Maada Bio, Rwanda’s Prime Minister Eduardo Girente and the Prime Minister of Barbados Mia Mottley.

A platform for smooth investments into Africa

In his keynote address, Dr Akinwumi A. Adesina, President of the African Development Bank Group, highlighted Africa’s prospects as a prime investment destination. The continent is not as risky as perceived and is growing and showing resilience despite global challenges, he said, offering reasons for global investors to pursue high-risk-adjusted returns in Africa. “As investors, put your monies where the future is—The future is Africa,” said Adesina.

Heads of state took part in a conversation on Accelerating Africa’s Economic Transformation following opening statements.

The President of Comoros, Azali Assoumani, pointed out that manufactured African exports account for just 1% of world exports. “We export them to developed countries and these countries re-export them to us processed and sell them back to us at ten times the price. Despite the obstacles, there are enormous opportunities for the development of value chains in Africa.”

President Samia Suluhu Hassan of Tanzania said technological and aviation “connectivity is a problem in Africa. We need to invest in the continent’s connectivity.” She noted that she recently had to travel via Paris from her country in East Africa to her destination in Dakar, West Africa.

President Julius Maada Bio of Sierra Leone said, “Obstacles are opportunities and how we turn obstacles into opportunities is the most important thing. Our economies are not sufficiently diversified and as soon as there is a shock, we suffer the consequences. And we are at the mercy of fluctuations in commodities like oil.”

Barbados Prime Minister Mia Mottley thanked the government of Morocco and the African Development Bank for inviting her, allowing Africans and Caribbeans to reclaim our Atlantic destiny. “We are finding more and more that opportunities for synergies and solidarities are clear,” she said. Mottley has been a forceful voice on behalf of the global south. In 2022, ahead of COP27, she announced the Bridgetown Initiative, an agenda for the reform of the global financial architecture and development finance in the context of three intersecting global crises: debt, climate, and inflation.

“Don’t ask us to choose people over planet or planet over people,” Mottley said, recommending a unified approach to the creation of a level playing field. She said there was scope for African and Caribbean people to partner in a range of spheres including pharmaceutical development and tourism, particularly the cruise ship industry.

Rwanda’s Prime Minister Édouard Ngirente commended the Africa Investment Forum. “I like events where we are discussing action rather than potential. We need action now,” he said. He urged the removal of barriers to the free movement of people.

Adesina, the chairperson of the Africa Investment Forum, also praised the platform. He said, what makes the Africa Investment Forum unique and remarkable is that it is highly innovative, and 100% transactional. “We develop and curate projects, reduce transaction costs and risks and accelerate the closure of deals,” Adesina said. “Our goal is simple: make investments to land in Africa smoothly.”

He urged attendees to seize opportunities presented during the Market Days: “Let us be concrete, bold, and decisive. The boardrooms have been well prepared. The clock is ticking. The project developers are here. The investors are here. The heads of state and governments are here. And the financial institutions are here. So, let the deals begin.”

The theme of the 2023 Market Days is Unlocking Africa’s value chains. The forum helps connect investors with bankable deals in several sectors including renewable energy, agribusiness and the manufacture of lithium-ion batteries for electric vehicles.

Adesina also conveyed the solidarity of Africa Investment Forum partners for Morocco following the devastating earthquake that struck the country in early September. The African Development Bank will commit €782 million to help finance various projects in Morocco in 2023.

The 2023 Market Days runs from 8 to 10 November. Previous iterations of Market Days have drawn more than 16,500 participants and generated cumulative investment interest of nearly $143 billion.

The Africa Investment Forum’s eight founding partners are the African Development Bank Group, Africa50, Africa Finance Corporation, Afreximbank, Development Bank of Southern Africa, European Investment Bank, Islamic Development Bank, and Trade and Development Bank.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Africa Lobbies for Lengthy Term for New Agoa Deal

Africa wants the US to renew its flagship trade programme for the continent for at least 10 years, the African Union’s top trade official said, adding that any modifications to the initiative should only be considered later.

Speaking at the start of three days of meetings of African trade ministers and US officials, AU trade commissioner Albert Muchanga also said the US will not be granted tariff-free access to a new African free-trade area.

First launched in 2000, the African Growth and Opportunity Act (Agoa) grants exports from qualifying African countries duty free access to the US — the world’s largest consumer market. It is due to expire in September 2025, and discussions are currently under way for its possible renewal.

The African ministers are due to meet with US officials, including US trade representative Katherine Tai

“[An extension of] 10-20 years is very critical to the investment community. Anything lower than that would generate uncertainty,” Muchanga told the ministers, who gathered in Johannesburg to form a common position on the future of the programme.

The African ministers are due to meet with US officials, including US trade representative Katherine Tai, on Friday and Saturday.

US lawmakers and the Biden administration have voiced support for renewing Agoa, which saw more than US$10-billion worth of African exports enter the US duty free last year.

However, there is debate in Washington over whether the initiative needs updating. Constance Hamilton, the Biden administration’s top trade official for Africa, said last week that the US congress should consider changes that would “make the programme more impactful”.

African governments and some US industry groups warn that attempting to modify Agoa as part of the renewal process could delay its reauthorisation.

One-sided

“If there are any enhancements to be made, those should be done after the extension,” Muchanga said. Agoa’s duty-free provisions are currently one-sided. US exports to African markets remain subject to national tariffs. Some US lawmakers have in the past suggested the programme should be made more reciprocal. Africa is in the process of setting up a new continent-wide free-trade area, known as the AfCFTA that aims to bring together 1.3 billion people in a $3.4-trillion economic bloc. Once fully implemented, it will be the largest free-trade area since the establishment of the World Trade Organisation.

Muchanga told the ministers that many of the US officials and lawmakers he had met to discuss Agoa’s renewal had assumed US exports would be granted duty-free entrance to the AfCFTA.

“I’ve told them very, very frankly that that is not possible,” he said. “If they try to export goods from the United States of America into Africa, they are going to meet national tariffs.”

The Biden administration said on 30 October it intended to end the participation of Gabon, Niger, Uganda and the Central African Republic in Agoa over governance and rights failings.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry