Blog - Afrikan Heroes

Poor Countries Need More Encouragement in their Battle with Poverty

October 20, 2019

Like the scriptures, the International Monetary Fund (IMF) is probably resigned to the existential fact that “the poor will always be with us”. It characterizes 59 of its 189 sovereign members as low-income countries which currently post GNI per capita of about $1,025 or less against high- income economies with GNI per head of $12,376 or more. Under current conditions in the global economy, the Fund reckons that it will take 90 years to halve the gap between the two.

Central Bank of Kenya (CBK) Governor, Patrick Njuroge

That may well be eternity for citinizens of developing countries, most of who live in sub-Saharan Africa. Of these countries, 43 percent are in distress and the Fund is looking for new ideas to help bridge the gulf between the world’s haves and have-nots. Regrettably, the task, the IMF says, is being made harder by the day by a cocktail of challenges including recurrent commodity price shocks, soaring borrowing costs and difficulty in adapting to recent developments in technology and Fintech. Other headwinds border on the fallouts from global trade tensions fomented by the world’s two largest economies, conflicts and natural disasters.

Panelists at the talk on Lending to Low-Income Countries who are also representatives and mouth pieces of policymakers in LICs, acknowledge that the Fund’s new architecture for lending has been deployed in many states but are unanimous that many of the programs need to be tweaked to make them effective for the diverse and peculiar needs of the Fund’s client-states.

Central Bank of Kenya (CBK) Governor, Patrick Njuroge, is particularly worried about the problem of access to the Fund’s programs. He berates the IMF for the impracticality of its terms, citing the requirement that LICs on Poverty Reduction and Growth Facilities achieve debt sustainability in three years as “stringent” when richer countries are cut considerably more slack. He is supported by Antoinette Sayeh, former Director of Africa Department of the IMF and cabinet member in Liberian President Ellen Johnson Sirleaf’s government. She notes that the Fund’s debt sustainability analyses for LICs need improvement to reflect the peculiar challenges of their clients. Her stint at the institution vis-a-vis her time in the government of Liberia stands her in good stead to objectively criticize the Fund’s processes and policies.

For Alamine Ousmane Mey, Cameroon’s Minister of Economic Planning and Regional Development, much of the problem stems from the inability or failure of the Fund to carry out realistic assessments of the scope of their interventions, the resources available to LICs and the expected outcome of programs. Often, he says, the lender is too optimistic in its assessments such that failure becomes inevitable.

Bank of Zambia Governor Denny Kalyalya agrees with his co-panelists’ exception to the conditionalities that sometimes make programs stilted and bereft of clients’ buy-in or “ownership”. Fortunately, the IMF knows that it needs to up its game to become more relevant to the neediest of its client-states. It expects LICs to grow at an average rate of 5.5 percent in the medium term just to remain as they are. It is mulling new processes and policies that will increase the maximum they can borrow under the already liberal, interest-free Poverty Reduction and Growth Trust by a third of the old value. It is also increasing the flexibility of the terms of engagement with fragile states all in a bid to close the yawning gap between the rich, developed countries and poor ones. The most immediate adjustment it is planning to make is to encourage countries to immerse themselves in the programs and really ensure ownership.

That out of the way, the IMF wants LICs to overhaul their processes and the quality of their budgets and Cameroon’s Mey agrees. He enjoins poor countries to do their bit by working on internal administration of their economies to link up government with the productive tax-paying private sector. The Small and medium-scale enterprises which constitute the bulk of players in their economies must be brought into the formal sector for accountability. More important, these diverse economic players must also be made to see taxation not as burden but a positive tool to provide the enabling environment for a thriving economy and their own good, especially.

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.

African Governments Should Address Security, Corruption and Abuse of Power for Economic Growth—General William Ward

Gen. William Ward, former Commander of the United States Africa Command (AFRICOM) has called on African governments to , address issues of security, corruption, and abuse of power which is prevalent in the continent if they truly want Africa to move forward and to get the said in the African continental Free Trade Area (AfCFTA) Agreement off the ground. General Ward made the call last night during the 3rd Babacar Ndiaye Lecture organised by the African Export-Import Bank (Afreximbank) on the sidelines of the Annual Meetings of the World Bank Group and the International Monetary Fund,here in Washington D.C. United States.

Prof. Benedict Oramah, President of Afreximbank

Gen. Ward said that corruption and abuse of power in the security sector could become significant non-tariff barriers to trade and to the success of the AfCFTA. According to him, “reforming the security sector, particularly in countries that experience conflict or serious security challenges, is a critical element of conflict management, peace, and security and can provide a safe and stable environment for political and economic growth,” he told guests at the lecture.

Gen. Ward also highlighted the importance of respect for the rule of law in the implementation of the AfCFTA, saying that it would provide traders and investors with the confidence to engage in cross-border trade in the knowledge that legal commitments undertaken by countries would be enforced and respected and that, should challenges arise, they would have recourse through robust legal systems.

He recommended regional approaches to dispute settlement and to ensuring the quality of goods traded under the AfCFTA. “Failure to do so could see rise in tension and could undermine integration efforts as traders or consumers feel aggrieved by arbitrary restrictions or sub-par or risky products entering their markets from other African countries. These can lead to border closures or to an increase in interstate tensions, especially if no legal avenue for recourse is provided,” he added.Gen. Ward said that international investment into Africa and allowing African economies to diversify and move up the technology frontier would mitigate some of the global security challenges emanating from migration as people seek opportunities outside the region.

“The opportunities provided by the AfCFTA, coupled with investment by development partners, could shift the patterns of migration from one driven by security concerns to one driven by entrepreneurial spirit, creating growth opportunities for receiving countries,” explained Gen. Ward.He described security and development as two faces of the same coin and said that robust and long-run economic growth rates were required to narrow income gaps with between Africa and the world’s advanced economies.

Earlier, Prof. Benedict Oramah, President of Afreximbank, said that, while Africa was not the theatre of instability or the source of current global uncertainty, some parts of Africa had been the epicentre of raging conflicts and insecurity which were undermining cross-border trade. Those conflicts were increasingly triggered by geopolitical dynamics.

Understanding the sources and causes of conflicts and insecurity was, therefore, important for creating a protective shield against crises and episodes of war which had magnified risk perception across Africa, he said. Those perceptions raised costs and undermined prospects for long-term investment and regional integration in Africa.

Prof. Oramah commended the vision of Dr. Babacar Ndiaye in identifying and working tirelessly to establish institutions, such as Afreximbank, as strategic instruments for accelerating economic development in Africa.“About 26 years later, the African Export-Import Bank—the Trade Finance Bank for Africa, has become an important instrument in the quest for Africa’s development and its effective integration into the world economy as envisioned by Dr Ndiaye when he conceived the idea; it has stepped in to correct market failures; filling trade finance gaps when markets panic and being a partner of choice to international banks wary of African risks,” he said.

“Since inception, Afreximbank has disbursed over $60 billion in support of African trade and attracted about $70 billion into strategic sectors of the African, economy using various instruments,” stated Prof. Oramah. “Through the effort of Afreximbank, many African entrepreneurs are now able to win and execute major public sector projects across the continent.”

Dr. Leila Ndiaye, daughter of Dr. Ndiaye, read a tribute to her father.

The Babacar Ndiaye Lecture series recognises and immortalises Dr. Ndiaye, who was President of the African Development Bank from 1985 to 1995, for his many important contributions to Africa’s economic development, in particular, his critical role in the creation of Afreximbank.Dr. Ndiaye, who died in July 2017, was also behind the creation of several other continental institutions, including Shelter Afrique and the African Business Roundtable. He is credited with fostering the emergence of many young entrepreneurs who are helping to build Africa today.

The event was attended by about 250 participants from African and global banks, development finance institutions, the business community, the diplomatic community, policy making institutions, the academia, African and non-African ministries of finance, economy and development, central banks, and global and African corporates

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.

Finance Ministers and Central Bank Governors Urged to Focus on Growth

As the global economy shows signs of uncertainty on many fronts policy makers have been urged to focus on growth. This is coming amid subdued growth even as the pace of the investment and trade softens.

The World Bank Group, in cooperation with the International Monetary Fund, can help emerging and low-income countries bolster potential growth, increase their resilience to shocks, boost domestic revenues, and continue building policy buffers. The two organizations have an important role to play in addressing the increase in debt vulnerabilities, and they can help countries meet a range of challenges to the international financial system, including tackling corruption.

World Bank Group President David R. Malpass

These were key messages from the Development Committee, a ministerial-level forum of the World Bank Group and the International Monetary Fund, in a communique issued at the close of the institutions’ Annual Meetings in Washington.

The committee, which represents 189 member countries, noted that the Bank Group is uniquely placed to address global development challenges, and they encouraged it to help implement country platforms that will make better use of development resources and mobilize private sector solutions. They also urged continued efforts to protect the most vulnerable, spur job creation, and strengthen public sector efficiency.

World Bank Group President David R. Malpass similarly stressed the urgency of the organization’s mission: the twin goals to reduce poverty and boost shared prosperity. But with 700 million people still living in extreme poverty around the world and the increasing risks posed by climate change and fragility, today’s global economy is making this mission even harder. At the meetings’ opening press conference, Malpass called for “fresh thinking to ignite growth” while expressing optimism that “well-designed reforms can deliver meaningful gains.” He emphasized that this is especially true for emerging markets and developing countries: they can “unleash growth that’s broadly shared across all segments of society.”

Both the committee and Malpass underscored the leading role played by IDA, the Bank Group’s fund for the poorest countries, in reducing extreme poverty, a challenge that is becoming steadily more concentrated in Africa. They noted IDA’s strong implementation of its current three-year program, and they urged continued strong support from donor countries in the replenishment of IDA’s funding for the next cycle, an effort that is well underway. In his plenary speech to the Board of Governors during the meetings, Malpass highlighted IDA’s growing focus on situations of fragility, conflict, and violence—where the poorest people are also increasingly concentrated. In addition, both he and the committee noted IDA’s joint work with IFC and MIGA to scale up private sector development, including in fragile situations.

The Bank Group’s work supports better development outcomes across a wide range of sectors. Malpass mentioned a number of these: “We’re investing to help countries gain access to electricity and clean water, to ensure the full inclusion of girls and women, to address climate change and protect the environment, to improve health and nutrition, and to bolster infrastructure.” He also stressed the rule of law, transparency, and peace and security, along with more effective debt management. But he observed that effective country programs must fit the distinct needs of each economy: “Development cannot be imposed from outside—country leadership and ownership matter.”

The meetings also marked a further transition in leadership, with Anshula Kant recently arrived as Managing Director and Chief Financial Officer for the Bank Group and with Axel van Trotsenburg assuming a new role as Managing Director of Operations at the World Bank. In welcoming them, Malpass also congratulated Kristalina Georgieva on her appointment as Managing Director of the IMF, expressed his appreciation for IFC CEO Philippe Le Houérou becoming co-chair of the current IDA replenishment, and thanked Keiko Honda for her years of service as MIGA CEO.

In a statement after the Development Committee meeting, Malpass said, “We at the World Bank Group are staying focused on our mission. We’re helping countries build strong programs, tailored to the unique circumstances of their economies.” While acknowledging the risks posed by the global economy and the daunting issues that face individual countries, he expressed confidence that progress can be made: “We cannot let today’s challenges be a roadblock to better development outcomes.”

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.

3 Vital Skills For The Age Of Disruption

The human race has seen more social and technological disruption in the past two decades than in all previous centuries combined. Things are changing so fast that we barely have time to steady ourselves after one technological wave, before another washes up on deck and sweeps us off our feet again.

It’s easy to see why this is happening when we look at technological development in historical terms. Older technologies, like the telephone and the car, were adopted by consumers gradually, over time, sometimes over decades. Newer technologies, like the cell phone and social media, spread seemingly overnight, taking almost no time to go from invention to universal use.

Today, each new technology scales with bewildering speed. It is no longer an adoption curve; it’s an adoption rocket. With AI, genetic engineering and robotics on the anvil, this pace is unlikely to let up anytime soon. It’s disrupting political, economic and social systems as well as cultural norms and social roles.

It is also taking a toll on each of us psychologically and emotionally.

Disruption: in business, education, and everyday life

Examples of this disruption abound. The impact of social media on the Brexit election and across the world has yet to be completely understood and poses the question: Are free and fair elections still possible? Even the creators of these digital technologies have limited understanding of them and in some cases lose control when AI algorithms take over, as with the awkward situation that arose when the recent Notre-Dame fire was algorithmically and inappropriately classified with a very different kind of conflagration, the 9/11 attacks.

As an educator, I’ve seen schools stockpile technology and then struggle to bring it to life in a meaningful way to improve learning. The money spent hasn’t translated into large-scale value creation. It reminds us of author Peter Drucker’s words: “Do not confuse motion with progress.”

During a recent car ride (Lyft) in Manhattan, I learnt from the driver that one of his friends is filing personal bankruptcy because he acquired two New York City cab medallions for $800K about a decade ago, and now with ride-share services gaining popularity the medallions are worth a fraction of the price he paid. Disruption can happen fast and hit us in the face. With self-driving cars just round the corner, even the Uber/Lyft drivers will soon be facing disruption.

Read also: How Digital Disruption Will Eliminate Small Businesses And What Small Businesses Can Do

The above three examples from different settings highlight the forces of disruption and the need for us to recast our political, educational, and economic systems. Creating change on one dimension is a daunting task. Imagine doing that on multiple dimensions.

If we don’t change ourselves, it will be impossible to change the systems and institutions that govern and enable us. Rapid learning and rapid execution are keys to staying ahead.

Three key skills

There are three key attributes that I’m convinced we must cultivate in order to take on the challenges the fast-paced disruptive world throws at us: learning agility, resilience, and grounded optimism.

1. Learning Agility

This is the ability and willingness to learn and then apply that learning effectively to prevail even in unfamiliar situations. The seeds of lifelong learning come from curiosity. Curiosity is the innate urge to know, the spark that drives us to explore, discover, invent and reinvent. Today, as we get older, most of us don’t make a point of nurturing our curiosity. But we will have to do it and get better at it. If we don’t learn, how will we evolve? If we end up with a fixed mindset, it will be harder to adapt, evolve and excel.

As Alvin Toffler predicted: “The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn.”

How can one develop learning agility?

• Be curious – start by asking “why?” Do it continually.

• Explore. Try new things and engage with different types of people.

• Reflect. Cultivate self-awareness. Make yourself do this. Actively seek feedback and help. See failure as learning.

A Harvard Business Review article on “Improve your ability to learn” calls out Innovating, Performing, Reflecting and Risking as key learning ability enablers.

2. Resilience:

This is the quality that enables one to bounce back when knocked down by life. It helps us to endure and thrive. In a disruptive world, coping with stress and catastrophe are vital, as adversity and new challenges become mainstays of life.

Resilience is important in personal life and business. Take a quick test to see where you stand on three key attributes of resilience: challenge, control and commitment.

How can you build resilience?

• Practice cognitive reframing. Learn to make the mental shifts necessary to identify the upsides and not just the downsides of a difficult situation.

• Avoid the victimization mindset (“Why is this happening to me?”) It’s not helpful.

• Meditate.

3. Grounded optimism:

Optimism is the propensity to anticipate the best possible outcome. Grounded optimism is where that optimism has a healthy dose of realism and pessimism blended in with it. Grounded optimists are wired to take the positive emotion and convert that into tangible action leading to realistic solutions.

Optimism can be learned. Martin Seligman, who is considered the father of positive psychology, introduced the concept of learned optimism based on his research on learned helplessness. Stanford has a survey based on Martin’s research to analyse one’s mindset – the pessimist-optimist spectrum.

How to build grounded optimism?

• Focus on the positive.

• Read about optimists and keep company with people who have both an optimistic and realistic outlook.

• Be mindful. Mindfulness is a skill, and there’s a lot to it. Fortunately, there are plenty of resources to help you cultivate it.

As we dive deeper into the 21st century (shorter product life cycles, breaking business models, competing against machines), IQ alone will not be sufficient to help us adapt. A healthy dose of EQ (emotional intelligence) and RQ (resilience quotient) are critical as we chart our courses.

Today, we live in a “VUCA” world, characterized by volatility, uncertainty, complexity and ambiguity. In this world, it isn’t how hard you fall or how many times you fall, but how fast you get up that matters. Are you ready to unleash the VUCA warrior in you?

Karthik Krishnan is the Global CEO, Britannica Group

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Nigeria May Be Headed For A Trade War With Its Neighbours As Ghana Traders’ Union Calls For Boycott of Nigerian Products

As Nigeria’s land border closure bites West African countries, the Ghana Union of Traders Association (GUTA) has called for a total boycott of all Nigerian products imported by Ghana.

The move, the traders union believes, will force the Nigerian government to open up its land borders for foreign goods. Nigeria partially shut its borders since August.

Here Is All You Need To Know

According to Ghanaweb.com, Greater Accra Regional Secretary of GUTA, David Kwadwo Amoateng on Adom FM’s morning show, Dwaso Nsem, Friday said the Nigerian government has not been fair to foreign traders.
In return, he expects the Ghana government to prevent Nigerian traders from bringing goods into Ghana, but that plea has fallen on deaf ears.
“Either somebody’s bread has been buttered or we are cowards. Government is not being fair to us,” he fumed.
Mr Amoateng cited how Dangote cement had taken over the market while local ones from GHACEM are suffering.

“Let’s boycott Nigerian products as payback to their government’s action. How can we be slaves in our own country?” he said.

Mr Amoateng argued that the issue, if not checked, could hamper the Continental Free Trade Area.

Ghana’s Ministry of Foreign Affairs and Regional Integration has appealed to Ghanaian traders to remain calm as it works with the Nigerian authorities to ease its ban on the exportation of Non-traditional products.

Image result for map of west africa — Nigeria’s neighbouring countries

‘’Nigeria’s Land Borders Closed to All Goods’’

Nigeria started a partial closure of its land borders in August to all movement of goods and has no timeline for reopening them as part of an effort to curb smuggling.

“All goods for now are banned from being exported or imported through our land borders and that is to ensure we have total control over what comes in,” Hameed Ali, comptroller-general of the Nigerian Customs Service, told reporters in Abuja on Monday.

Africa’s largest economy launched a partial border closure in August as part of an effort to thwart smuggling of rice and other goods, and there had been widespread local media reports of a broader closure.

But Ali’s announcement was the first official confirmation of a total shutdown in trade across Nigeria’s land borders — including goods that had been moving legally.

“We are strategizing on how best the goods can be handled when we eventually get to the point where this operation will relax for the influx of goods,” he said. He did not give a timeline for any relaxation of the controls.

The closure has no impact on Nigeria’s economically crucial oil exports, which are shipped out almost entirely via the nation’s seaports and offshore oil platforms.

Ali added that despite the land border closure, it would still be possible for goods to cross at points equipped with special scanners, but did not say where those locations were.

Ali said reopening the borders would depend on the actions of neighboring states, and that as long as they and Nigeria were not in accord on what goods should be imported or exported overland, the frontier would remain shut.

The move is likely to make a variety of food items, such as rice, tomatoes, poultry and sugar, more expensive for consumers.

While it was illegal to bring these items into the country via land borders even before the border closure, they had been widely smuggled.

“Already we are seeing effects on prices and inflation and I’m guessing we will see effects on Q3 GDP once that data comes out in November,” said Nonso Obikili, director at the Turgot Center for Economics and Policy Research in Abuja.

Exports are also restricted, which will stop movements of cocoa and sesame seeds via land borders, Obikili said.

Ali noted that legal exports could continue via seaports, but Nigeria’s congested terminals and dilapidated road and rail networks make it difficult to quickly change export routes.

Deliveries of gasoline in Nigeria had also dropped by nearly 20 percent during the early stage of the border closure, according to the Petroleum Products Pricing Regulatory Agency.

Gasoline, whose prices is capped in Nigeria, is frequently smuggled across land borders and sold in neighboring countries.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Russia Businessmen Return to Africa, Seeks Business Collaborations

October 19, 2019

With the impact and influence China’s incursion into Africa has made, other countries such as Japan, India followed suit by upping their engagements with African businesses. This left Russia out, but not for long. With the upcoming Russia- Africa Summit in Sochi later this year, Russia is making a return to the continent. This is coming against the backdrop of Russia’s historic relationship with Africa especially during the cold war era.

Paul Stronski of the Carnegie’s Russia and Eurasia Program

That aspect of history is responsible for the wide media coverage, governmental concerns and civil society reactions in recent weeks, especially as Sochi gears up to host the first ever Russia-Africa Summit next week.

Most commentators have come from Europe and North America to voice concerns over Russia’s dodgy arm deals in Africa, political meddling with unstable African regimes, and its overall challenging of the status quo on the continent. The problem is, when these comments are not outright hypocritical, they are missing a key point: competition is good for business, which is just what Africa needs right now.

First, Russia’s presence in the continent cannot be summarized into sensationalism. It is complex and needs to be put back into context. Its modern relations with African governments and institutions started building up in post-independence Africa, time when the Soviet Union offered key diplomatic and military support to young African nations in need of it. This assistance was multi-form and much needed for countries seeking fast development following harsh independence wars and conflicts. “The Soviet Union provided significant economic assistance, including infrastructure, agricultural development, security cooperation, and health sector cooperation,” wrote Paul Stronski of the Carnegie’s Russia and Eurasia Program this week. Consequently, Putin’s vision for Africa is resuming and building up on a cooperation that started in the second half of the 20th century and was only put on hold by the collapse of the Soviet Union in 1991.

In short, while arriving late to the party, Russia is no stranger to the African playground. Beyond military cooperation, its state-owned natural resources companies have already made inroads into the continent, and could be a game changer for many African countries in need of investment and electricity. Key Russia energy companies such as Gazprom, Lukoil, Rostec and Rosatom are already present in Algeria, Angola, Egypt, Nigeria, Cameroon, Equatorial Guinea or Uganda, while mining and minerals ones such as Nordgold or Rusal are developing world-class mines in Guinea and Zimbabwe. On a global stage, Russia’s involvement in OPEC has also sent strong signals that it is committed to market stability and global energy cooperation, which ultimately benefit African producers.

“Russia’s influence is increasing through strategic investments in natural resources, and such investments are welcomed by African governments and companies. They bring in key Russian capital and know-how to the continent which is seeking to diversify its investors basket and attract much needed investment into its energy industry,” said Nj Ayuk, Executive Chairman at the African Energy Chamber (EnergyChamber.org) and CEO of the Centurion Law Group. “The African Energy Chamber is supporting such efforts and has seen a definite uptick in Russian companies’ interests for the continent. We predict a lot of deals to be signed during and after the Sochi Summit for Russian energy companies to develop African resources and do business in Africa. This will be especially beneficial as Africa develops gas-based economies,” he added.

Amongst the most recent agreements are for instance the MoU between Atlas Oranto Petroleum and Rosneft in 2018, under which the pan-African E&P company agreed to explore the joint-development of its assets across Africa with the Russian state-owned giant. Another one is the signing of several agreements between Russia and Mozambique this summer, involving again state-owned Rosneft but also Nordgold. In Central Africa, Gazprom is also lifting gas from Cameroon’s the FLNG Hilli Episeyo, the world’s first converted FLNG vessel.

As such investments and activity picks up, the real game changer will be Africa’s ability to make deals that work for its people and its economies. Deal-making is what will shape the future of Russia-Africa relations and will tell whether Russia’s renewed influence in the continent is good or bad for its people. Rightly so, the ability and capacity of African governments to make better deals with investors is becoming central to the global business narrative on Africa.

In his much anticipated book coming up this month and already best-seller on Amazon, “Billions At Play: The Future of African Energy and Doing Deals”, Nj Ayuk dedicates an entire chapter to the critical art of deal-making. “For Africa to truly realize all of the benefits oil and gas operations have to offer, we need to see good deal-making across the board,” he writes. “Clearly, good deal-making has far-reaching implications for African people, communities and business.”

Contracts negotiations is in fact the key element missing from the current debate on Russia’s increasing influence in Africa. There is no doubt Africa is welcoming Russia’s interest for doing business on the continent, not only because it comes without the conditionality of actors such as the IMF and the World Bank, but also because Africa needs critical energy investment and a giant oil producer like Russia has good technology and know-how to export. The only thing is, sub-Saharan Africa has seen several regulatory developments in the near future, with a particular focus on local content regulations across energy markets. Jobs creation, domestic capacity building and the growth of a strong base of local energy companies is high up on the African agenda. If African governments are able to negotiate contracts that deliver on these expectations and Russian companies are committed to see the continent grow, then the future is bright for Russia in Africa.

At the end of the day, it is all about how African governments and institutions will negotiate future contracts with Russian companies. As Nj Ayuk writes in Billions At Play, “governments must give investors a chance to generate income from the resources they are interested in and recoup their investments. At the same time, governments need to look at creating value for their country and its people. It’s a balancing act. It’s challenging, but it’s doable.”

Whether Sochi will result in that balancing act remains to be seen, but the challenge is given and Africa is up for it

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.

Photo news : Nigeria’s Minister of Finance Zainab Shamsuna Ahmed at the IMF Headquarters

Photo News

(1) Director of the African Department at the International Monetary Fund (IjjMF) Abebe Aemro Selassie moderates the Governor Talks with him is
Nigeria’s Minister of Finance Zainab Shamsuna Ahmed at the IMF Headquarters during the ongoing 2019 IMF/World Bank Annual Meetings in Washington D.C. United States.

G_20 governors — The G-20 Group Photo held at the IMF Headquarters during the 2019 IMF/World Bank Annual Meetings, October 17, 2019 in Washington, DC. IMF Photograph/Ryan Rayburn

(2) Finance Ministers and Central Bank Governors of the G-20 Countries after their meeting yesterday during the ongoing International Monetary Fund/World Bank Annual Meetings in Washing D.C.United States.

Director of the African Department Abebe Aemro Selassie moderates the Governor Talks – Nigeria with Nigeria’s Minister of Finance Zainab Shamsuna Ahmed at the IMF Headquarters during the 2019 IMF/World Bank Annual Meetings, October 17, 2019 in Washington, DC. IMF Photograph/Cory Hancock

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.

Ghana’s PEG Africa Secures $4m In Debt Capital To Scale Operations In Senegal

PEG Africa, an Accra-based pay-as-you-go solar energy company has sealed a $4-million debt financing deal from a $15-million multi-currency facility led by UK development finance institution CDC Group. Also, backed by existing lenders SunFunder and ResponsAbility, PEG Africa explained in a statement that it will use the capital to expand operations in Senegal where it says it has thousands of customers.

PEG Africa was founded in 2013 by Hugh Whalan and Nate Heller

Expanding to Senegal

Whalan, the PEG Africa’s CEO, said Senegal has been growing “far quicker than expected” and has reached profitably within its first year.

“With the continued backing of CDC Group, we expect our growth in Senegal to continue. Importantly, we believe that we will be able to apply our learnings and expansion playbook to yield superior results as we grow into future markets,” he added.

Why Debt Financing?

Whalan said the fact the company is increasingly raising debt as opposed to equity investment, and its ability to secure multiple facilities from lenders like CDC Group, is testament to the increasing strength and the financial sustainability of its business.

Last month PEG Africa raised $5-million in debt funding from the EU-funded Electrification Financing Initiative (ElectriFI).

In March the company raised a $25-million Series-C round which at the time it said it intended to use for off-grid solar expansion in Ivory Coast, Ghana and Senegal.

About PEG Africa

PEG touts itself as employing nearly 1000 people across Ghana, Ivory Coast and Senegal and has won numerous awards, including the prestigious Ashden International Award for excellence in sustainable energy, and has been named as one of the “fastest growing companies in Africa” by the London Stock Exchange.

Founded in 2013 by Hugh Whalan and Nate Heller, PEG Africa currently provides 400 000 daily users in Ivory Coast, Ghana and Senegal with credit for solar home systems via its pay-as-you-go financing model.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Mara Launches In South Africa, Becomes The Country’s First Smartphone Factory

Mara Phones has officially opened the first smartphone manufacturing facility in South Africa, located in Durban, KwaZulu-Natal.

The manufacturing plant is the result of a R1.5-billion investment by Mara Phones that was supported by the government, and the opening on 17 October 2019 was attended by President Cyril Ramaphosa.

“The investment in South Africa by Mara Phones with the support of the Government of South Africa has already created almost 200 jobs, of which over 60% are women and over 90% are skilled, unemployed youth,” Mara Phones said.

“Mara Phones South Africa is expected to generate about 1,500 direct jobs over a period of 6 years and thousands of indirect jobs, which will contribute to the reduction in unemployment and enhance the transfer of high-tech knowledge in South Africa.”

Devices and plans

The Mara Phones factory is designed to assemble high-quality smartphones at affordable prices for South African consumers.

So far, the factory will be producing two devices — the Mara X and the Mara Z.

These devices are described as having long-lasting batteries, immense storage space, and Android One compatibility — which means they are guaranteed to receive Android updates for two years.

The pricing for these devices is detailed below:

Mara X — R2,999
Mara Z — R3,999

The Mara Z and Mara X feature similar designs and sizes, although the Mara Z is slightly larger and sports higher-end hardware.

Mara Phones also plans to launch physical experience stores across the country on its own and through franchises.

“Korea has Samsung, China has Huawei & Tecno, USA has Apple, and now Africa has Mara Phones!” said Mara Phones CEO Ashish J. Thakkar.

Mara Phone Factory, South Africa In Pictures

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Young People Urged to Embrace Agriculture

October 18, 2019

Young people from around the world have been urged to embrace Agriculture both as a hobby and as a future profession. This was known yesterday as young students from across the world gathered at Des Moines Iowa United States at the Global Youth Institute to interact with Nobel and World Food Prize laureates. This year, 450 exceptional high school students from 10 countries attended the three-day Global Youth Institute hosted by the World Food Prize Foundation to facilitate discussion on pressing food security and agricultural issues.

2002 World Food Prize Laureate, Pedro Sanchez

The director of youth leadership development at the World Food Prize Foundation, Kelsey Tyrrell, told the young audience that African Development Bank President Akinwumi Adesina had been invited because of his advocacy and promotion of agriculture as a career for young people.

“After winning the World Food Prize in 2017, he dedicated his prize money to youth empowerment programmes. We wanted you to know that you have the power to make global change, and Adesina knows the incredible power that young people have,” Kelsey said. The African Development Bank is committed to ensuring that Africa’s agriculture is digitally enabled and has launched the Digital Solutions for African Agriculture program, which supports governments and the private sector.

Digital Solutions for African Agriculture program supports the public and private sector to introduce and scale-up transformative digital solutions. This includes super platforms for e-registries, e-extension, soil information maps, e-commerce and digital marketplaces for agri-inputs and outputs, tracking and traceability systems, and e-Agri-governance.

The Bank is implementing programs that harness the power of technology to drive the future of agriculture, such as using drones to survey fields and monitor harvests.

“Building the food industry of tomorrow requires that we build the leaders of those industries today. The opportunities offered by the Global Youth Institute are intended to construct for you the highway to becoming tomorrow’s leaders of the food and agriculture industry,” the Bank President told the students. Adesina is the 2017 World Food Prize Laureate. “Digitisation will attract more young people like you into agriculture. Agriculture is really where you want to be,” he said.

Former President of Nigeria Olusegun Obasanjo attended the morning session. On Wednesday night, Adesina hosted a dinner in honour of the President of the World Food Prize Foundation, Kenneth Quinn, who is retiring from the organization. Quinn described the Bank’s work as transformative.

Also speaking at the dinner, the 2002 World Food Prize Laureate, Pedro Sanchez, commended the Bank for its work in agriculture, comparing it to that of Norman Borlaug, Nobel Peace Prize winner in 1970 and founder of the World Food Prize.

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.