Blog - Afrikan Heroes

South Africa’s e-commerce startup SnapnSave raises capital from Vunani Capital

September 12, 2019

With Jumia’s controversial listing on the New York Stock Exchange, Konga’s recent acquisition by the Zinox Group, and barely a poor history at fund-raising this year, it does seem that confidence is gradually returning to Africa’s ecommerce sector (although this is still very much connected to fintech). South African startup SnapnSave, which has developed a cashback grocery coupon app, has raised an undisclosed amount of funding from Vunani Capital as it builds towards its Series A round.

Here Is The Deal

The amount in this round of investment is undisclosed but investment came from VC firm Vunani Capital through its fintech-focused fund.

“We are delighted to be working closely with the team at Vunani. Their expertise in understanding corporate finance and their relationships in Africa will aid the company as we prepare for a Series A raise that will allow us to expand into new markets in 2020,” said SnapnSave co-founder Mark Bradshaw.

Why The Investor Invested

One thing is top on the list of why VC Vunani invested — SnapnSave belongs in the fintech space.

“This investment offers the Vunani group exposure to a new wave of fintech businesses that are using digital platforms to bring benefits to ordinary consumers,” Vunani executive director Mark Anderson said. “SnapnSave is our first fintech investment. We are expecting to enter into more transactions in the fintech space as we diversify our financial services offering.”

What The Startup Does

SnapnSave gives shoppers cash back on their favourite products, wherever they shop, just by snapping a photo of their till slip.

The startup secured ZAR14 million (US$980,000) in funding from Kalon and Smollan in 2017, taking in the second tranche of that investment last November.
The startup has seen significant growth since it was launched in 2015, and now has more than 350,000 users that have submitted over 1.5 million till slips and earned more than ZAR14 million (US$950,000) in rewards.
Its latest round of funding, which comes from VC firm Vunani Capital through its fintech-focused fund, will be used to further grow and scale the shopper and vendor base of SnapnSave as it builds towards a Series A round. Bradshaw’s fellow SnapnSave co-founder Tina Fisher said with over 200,000 grocery retail points in South Africa, it was clear that shoppers in the market do not just shop at one store for their favourite grocery items.

Read Also: Jumia: Lessons For E-Commerce Companies In Nigeria

“With promotions in retail traditionally being store-specific, more and more shoppers are signing up for SnapnSave to benefit from cash back savings available at any retailer. Leading brands like Coke, Pioneer Foods, Unilever, SC Johnson and more are working closely with SnapnSave to engage with these shoppers,” she said.

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

From 2020, Namibian Startups May Get Higher Funding Under The Youth Credit Scheme

At this age and time, $135 may no longer be enough to start up a business in Namibia. This is what the review of the old Namibian Youth Credit Scheme seeks to consider. The Namibian government is reviewing the country’s Youth Credit Scheme as it seeks to enhance capacity in providing financial services to start-up youth business enterprises. The Namibia Youth Credit Scheme provides start-up loans to young Namibians aged 18 to 35 seeking to establish or expand their businesses.

Here Is All You Need To Know

The Namibia Youth Credit Scheme (NYCS) is a youth credit initiative formulated to enable youth of Namibia to access capital, enabling them to significantly participate in the socio-economic development of Namibia, according to a report by the scheme.
The NYCS was co-funded by the Ministry of Youth, National Service, Sport and Culture (MYNSSC) and the Social Security Commission of Namibia. It is an integrated support programme, providing simplified business management training as well as loans ranging from N$400 to N$4000 as a means of supporting youth of ages ranging from 18 to 35 years in their efforts to establish small and medium enterprise (SME) initiatives as strategies for self-employment and income generation, thereby improving their living standards.
During 2018, the Scheme dispersed seed capital to 218 Namibian youth-led business es countrywide, valued at 1.8 million Namibian dollars.
The loans are given to individuals in groups from the same community (usually 5–10 people). It is necessary for the young people to be recommended by their parents or legal guardians in order to join the programme (they need to either sign a letter or the loan agreement).
The review aims to take another look at its funding model for small-medium enterprises, and to ensure that the programs meet current demands.

The Gross Domestic Product (GDP) in Namibia was worth 14.52 billion US dollars in 2018. The GDP value of Namibia represents 0.02 percent of the world economy. GDP in Namibia averaged 5.99 USD Billion from 1980 until 2018, reaching an all time high of 14.52 USD Billion in 2018 and a record low of 1.61 USD Billion in 1985.

“The Scheme was initially launched as a social welfare program through the Commonwealth. Currently, funding starts from 2,000 Namibian dollars (135 U.S. dollars), which is no longer adequate for most start-ups, which poses a challenge to wider national economic development. Hence; the need to review the Scheme,” Emma Kantema-Gaomas, executive director of the Ministry of Sport, Youth and National Service said.

Read Also: Namibia Is The Easiest Country In Africa For Small Businesses To Get Bank Loan
The review is expected to be completed by the end of November this year.

The total population in Namibia was estimated at 2.5 million people in 2018, according to the latest census figures. Looking back, in the year of 1960, Namibia had a population of 0.6 million people.

“The prime objective is further to strengthen the program, and come up with a model that will drive sustainability and economic prosperity,” she added.

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

President Biya Offers Olive Branch to English Speaking Cameroonians

September 11, 2019

The Cameroonian President, Paul Biya has offered to entertain the grievances of the separatists’ in south western parts of the country as way of bringing to an end the political crisis that has engulfed the country in the last few years. This overture by President Biya is seen by observers as a positive development as an official acknowledgement of the crisis the country has been wading through in recent times. President Biya had in a public address promised to have a national dialogue with the agitators, saying that the dialogue which will probably start from the end of this month, would be led by the Prime Minister, and would bring together a wide range of people to seek ways to end violence that has plagued the country in recent times.

Paul Biya, President, Republic of Cameroon

It could be recalled that Cameroon has been battling internal insurgency since 2017 after the government cracked down heavily on peaceful protesters in Cameroon’s Northwest and Southwest English-speaking regions who were bringing to the fore, acts of marginalization by the French-speaking majority of the country. The government’s high handedness in quelling the protests led to more protests leading to the death of over 1,800 people and displacing close to a million.

The President said that in view of the ongoing quagmire, there is need to convene a major national dialogue to enable the country seek, within the bounds of the Constitution ways and means of meeting the deep aspirations of the peoples of the Northwest and Southwest, but also of all the other components of the nation.

Observers say that the Cameroonian leadership has been playing the Ostrich with the political problems facing the country in the last three years by their nonchalant attitude to the yearnings and aspirations of the people of southwestern Cameroon. This they said has cost the country enormous goodwill, investment and worsened the security situation in the country. For example, Cameroon’s hosting rights for the 2019 CAF African Nation’s Cup was withdrawn at the last minute because of security concerns are campaign by human right groups against the government’s high handed response to peaceful protests by the people.

Though the President did not specify if representatives for the separatist movements would be invited to participate in the talks, Human Rights Watch said the prospects for talks between the government and separatist leaders were very thin because of breakdown of trust that has festered over a long period. While hailing the decision as being on the right path, many still doubt the government’s sincerity to peace.

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.

New Forex Policy Threaten Businesses in Central Africa States.

The new foreign exchange policy promulgated by the Central Bank of Central African States (BEAC) aimed at tackling financial frauds and money laundering and stems floundering foreign reserves seem to be having the opposite effects as dwindling forex and transaction delays have pushed businesses across the six countries of the BEAC in a bid fix. Many business people have decried the new rules warning that if nothing is done urgently, most businesses will crumble. The BEAC which manages monetary policies across Chad, Cameroon, Republic of Congo, Equatorial Guinea, Gabon and the Central African Republic is said to have implemented the new rules in line with the directive by the International Monetary Fund (IMF) urging it to boost its foreign reserves, which it estimated at 2.7 months of import cover at the end of last year, rather very low for a region with so much oil. The BEAC had agreed to boost this to five months by 2022 and the new rules aim to do that by forcing banks to keep their foreign exchange with the BEAC.

Abbas Mahamat Tolli, Governor, Bank of Central African States

The BEAC said that new rules introduced in June this year will help bring the much desired order to a monetary bloc awash with petrodollars which, owing to lax controls, often end up in offshore bank accounts after bypassing local economies completely. Aside the Central African Republic (CAR) that is not an oil producing country within the group, the others are among sub-Saharan Africa’s top oil producers, whose financial dealings are among the most opaque structures in the world, thus the aim to stem the outflow. As part of the rules, all forex transfers over a 1 million CFA francs ($1,680) be vetted for approval by the bank, and that all export proceeds above 5 million CFA ($8,400) be repatriated in 150 days to a local bank account.

The BEAC equally ordered onshore foreign currency accounts shut – some of which may be re-opened with its approval – and prohibited the use of offshore accounts by companies and businesses that exists within the region without a prior approval from it. All these rules have brought untold hardship for business people who complain that the band is too small and the processing time quite laborious. Moreso, many say they now have to wait for months to get hold of hard currency which has affected their businesses as some of them can’t even meet import orders from suppliers. And those who do, don’t have enough forex to meet their needs. The period it now takes for money transfers to be affected has adversely affected a lot of businesses as foreign partners do not have the patience to wait through such snail speed process for a transaction that ordinarily takes less than 48 hours, says one affected CEO.

Speaking on the development, a spokesperson for the IMF pointed out that the revised regulations do not introduce new … exchange controls or any restriction on capital movements. Rather, they aim at clarifying certain requirements, highlighting that it was expected they would help the region adhere to the “rules of anti-money laundering and combating financing of terrorism.

Oil and Mining companies are lobbying to have the rule reviewed as it is negatively affecting their businesses says oil industry lobbyist NJ Ayuk, whose Centurion Law Group is representing some energy companies in their dispute with the bank. Speaking on the development, a representative of Eramet, a major French mining firm with operations across the region especially in Gabon pointed out that the new foreign exchange regulations do not sufficiently take into account the specific needs of mining activity, which is very export-oriented in markets denominated in U.S. dollars and euros thus the company is having an ongoing engagement with the BEAC. Reacting to the complaints, the BEAC was quoted as saying that the Bank has extended the deadline for the directive from the earlier September 1, to December 1, a development the business people say does not address the situation. Whether the Bank will reverse the rules, or relax it to accommodate the issues raised by the businesses are yet to be seen.

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.

Nigeria ’s First Digital-Only Bank Kuda Secures $1.6M In New Funding Round

Nigeria ‘s fintech startup Kuda — a digital-only retail bank —has joined the league of fund raisers, with a new $1.6 million pre-seed funding.

“As far as I’m aware, there is no other digital bank [in Nigeria] that has a micro-finance license,” a representative for the Central Bank of Nigeria was quoted as confirming Kuda’s banking license and status.

Here Is The Deal

The $1.6 million pre-seed funding investment was led by investor Haresh Aswani with Ragnar Meitern and other angel investors joining.
By this investment, Aswani will take a position on Kuda’s board.
Kuda plans to use its seed funds to go from beta to live launch in Nigeria by fourth-quarter 2019. The startup will also build out the tech of its banking platform, including support for its developer team located in Lagos and Cape Town, according to Ogundeyi.
Kuda also intends to expand in the near future. “It’s Nigeria for right now, but the plan is build a Pan-African digital-only bank,” he said.

Kuda CEO Babs Ogundeyi believes the startup can scale and compete in Nigeria on a number of factors, one being financial safety. He names the company’s official bank status and the Nigeria Deposit Insurance Corporation security that brings as something that can attract cash-comfortable bank clients to digital finance.

Ogundeyi also points to offerings and price.

‘‘We look to be the next generation bank where you can do everything — savings, payments and transfers — and also the one that’s least expensive,” he said.

Why The Investors Invested

The investors must have been attracted by the Nigerian Central Bank’s increasing policy towards financial inclusiveness, as well as the staggering number of the unbanked in Nigeria. Nigeria’s first online-only bank hopes to capitalise on this opportunity. Apart from investing, Haresh Aswani the lead investor would now be sitting on the company’s board.

In both raw and per capita numbers, Nigeria has been slower to convert to digital payments than leading African countries, such as Kenya, according to joint McKinsey Company and Gates Foundation analysis done several years ago. The same study estimated there could be nearly $1.3 billion in revenue up for grabs if Nigeria could reach the same digital-payments penetration as Kenya.

A number of startups — established and new — are going after that prize in the West African country — several with a strategy to scale in Nigeria first before expanding outward on the continent and globally.

San Francisco-based, no-fee payment venture Chipper Cash entered Nigeria this month.

Series B-stage Nigerian payments company Paga raised $10 million in 2018 to further grow its customer base (that now tallies 13 million) and expand to Asia and Latin America.

Read Also: Three Months After Launch, South Africa’s First Digital Bank Hits 500,000 Customers.

What Kuda Does

Kuda is a Lagos and London-based company. It recently launched the beta version of its online mobile finance platform. Kuda also received its banking license from the Nigerian Central Bank, giving it a distinction compared to other fintech startups.

“Kuda is the first digital-only bank in Nigeria with a standalone license. We’re not a mobile wallet or simply a mobile app piggybacking on an existing bank,” Kuda bank founder Babs Ogundeyi told TechCrunch.

“We have built our own full-stack banking software from scratch. We can also take deposits and connect directly to the switch,” Ogundeyi added, referring to the Nigeria’s Central Switch — a SWIFT-like system that facilitates bank communication and settlements.

Kuda offers checking accounts with no monthly-fees, a free debit card, and plans to offer consumer savings and P2P payments options on its platform in coming months.

“You can open a bank account within five minutes, do all the KYC in the app, and you get issued a new bank account number,” according to Ogundeyi.

Ogundeyi — a repeat founder who exited classifieds site Motortradertrader.ng and worked in a finance advisory role to the Nigerian government — co-founded Kuda in 2018 with former Stanbic Bank software developer Musty Mustapha.As of 2014, Nigeria has held the dual distinction as Africa’s largest economy and most populous country (with 190 million people).

To scale there, and add some physical infrastructure to its online model, Kuda has correspondent relationships with three of Nigeria’s largest financial institutions: GTBank, Access Bank and Zenith Bank.

He clarified the banks are partners and not investors. Kuda customers can use these banks’ branches and ATMs to put money into bank accounts or withdraw funds without a fee.

“Even though we don’t own a single branch, we actually have the largest branch network in the country,” Ogundeyi claimed.

Kuda’s plans to generate revenues focus largely around leveraging its bank balances.

“We plan to match different liability classes to the different asset classes that we create. That’s how we make money, that’s how we get efficiency in terms of income,” Ogundeyi said.

In Nigeria, Kuda enters a potentially revenue-rich market, but its one that already hosts a crowded fintech field — as the country becomes ground zero for payments startups and tech investment in Africa.

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

Fighting fraud from the top By Ayanda Kotobe

Fraud is at its essence the result of mirroring

Why do we stop at traffic lights? It’s not because we are naturally attuned to seeing red as the order to stop. If that were the case, red dresses and apples wouldn’t be as popular as they are! Red catches our attention, but we stop at a red light because everyone else does.

Humans copy each other. It’s often said that if you want someone to be more comfortable with you, mimic how they sit or stand. Psychologists call this ‘mirroring’, but it doesn’t just happen during social gatherings. Seeing someone drop a bit of trash or cutting a traffic light gives us a slight nudge into thinking it’s okay. If they are doing it, maybe I can too.

Fraud is at its essence the result of mirroring. It would be convenient to consider all fraudsters as hardened criminals who’d sell their granny if the price were right. But fraud investigators often point out that such activities have simple beginnings. The Enron scandal, so devastating that it destroyed an American energy giant, had its roots in some minor manipulations to meet earnings expectations. Yet when the people involved got away with that, they scaled up and even justified their actions as legitimate – at least to themselves.

This is why fraud prevention starts at the top. There has to be no tolerance among an organisation’s leaders for fraud. When accountability and consequences are lacking, fraud will thrive. The culture of an environment, as well as its treatment of ethics and governance, will reflect management’s attitude towards fraud.

Leadership attitudes are fundamental, reinforced by internal controls to spot fraud. Illegal activities usually involve acts that siphon amounts from a business’ coffers. These can include payroll fraud, writing double cheques for payments, skimming tax money or over-ordering. A common fraud in South Africa and elsewhere is to overvalue a purchase and split the difference with the supplier. More recent activities include credit card fraud and bank scams. The Bankers Association of Botswana warned last year that fraudsters are becoming increasingly savvy about loopholes, especially technology ones, that organisations are not fixing fast enough.

In all these examples, it only takes a few people to abuse the trust they earned. Sadly, it’s the company that suffers when their wrongdoing is uncovered, usually because it became cataclysmic…

These can be prevented by internal checks and structures to monitor governance and compliance. Companies should also create pipelines for concerned parties and whistle-blowers to relay their suspicions. The Committee of Sponsoring Organizations of the Treadway Commission (COSO) sets out the following five components for an effective fraud prevention system: control environment, risk assessment, control activities, information & communication, and monitoring. These work together to establish sound internal controls through directed leadership, shared values and a culture that supports accountability.

Increasingly, more of these controls can be automated in modern companies, particularly where high transaction volumes take place. It’s additionally effective to consolidate suppliers to a few that you know can be trusted and are serious about their integrity. Creating reliable procurement channels with those suppliers will help employees stick to legitimate activities.

There is also no reason any more to be ignorant of a company’s finances: even if you have accountants and other fiscal gatekeepers, it is possible with modern software services to generate ad hoc reports and scrutinise patterns using visualisation dashboards. At Kenya’s major banks, employee fraud is often a greater risk than third-party fraud. Headline-grabbing South African frauds such as seen at Fidentia and Steinhoff were perpetrated by the very accountants meant to have policed such activities.

It might sound as if the fight against fraud means reducing trust in employees. This isn’t the case. Instead, it is about narrowing those gaps where fraud might take place, so as not to normalise such activities. The tone should start at the top, from leadership and management who embrace sound controls and good governance. Consequences must be enforced and felt.

Everyone will eventually ignore a traffic light if they see enough people do this. In some countries, you can see traffic officers haplessly direct vehicles that ignore them. Are all those drivers criminals? In terms of traffic laws, yes. But did they start as criminals? No. And do they see their behaviour as bad? It’s unlikely. Not until they are caught – and if it were business fraud, by then it might be too late for their employers.

Ayanda Kotobe is the Finance Director at RS Components .

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.

Our Foreign Policy is ‘Sierra Leone First’ – Nabeela F. Tunis

While Sierra Leone will continue to develop economic diplomacy and endeavour to live in peace and harmony with her neighbours, the country will pursue its interest in line with laid down international rules and regulations, and also be part of efforts at building a united Africa so says Honourable Nabeela Tunis, the Minister of Foreign Affairs and International Cooperation of Sierra Leone. Excerpts:

Nabeela Tunis, the Minister of Foreign Affairs and International Cooperation.

How would you describe Sierra Leone’s Foreign Policy direction?

The principal outlines relating to the Sierra Leone Foreign policy objectives are set out in Section 10 of the Country’s 1991 Constitution, to wit “… the promotion and protection of the national interest; the promotion of international cooperation for the consolidation of international peace and security and mutual respect among all nations, and respect for international law and treaty obligations, as well as seeking of settlement of international disputes by negotiation, conciliation, arbitration or adjudication.”

Accordingly and given the thrust of the aforementioned provision, Sierra Leone has invariably observed the tenets of peaceful co-existence with other countries at sub-regional, regional and global levels. This unique characteristic has served as a centerpiece for greater integration at the socio-cultural level. This has further given the leadership of the country the opportunity to revive a trajectory by putting into perspective and energizing its relations mainly with its neighbours as well as countries, with a view to harness Foreign Service creativity through a set of clear goals for efficient cooperation.

It is prima facie evident that a country’s foreign policy involves an assessment of one’s power position relative to the global narrative of alliances, and must reflect the guiding principles of its external behavior with others. Consequently, Sierra Leone became a signatory to the Charter of the OAU and has more often than not, subscribed to a common African position. Sierra Leone has also adopted a pathway of building and sustaining its goodwill with the Bretton Woods institutions, as well as with other emerging players.

Being a member of the Non-Aligned Movement, Sierra Leone’s foreign policy has also been effective within the frameworks of its “non-association” in the rudiments of the Cold War, and in the evolving power play in relations between the West and the European Union on the one hand, and Russia, Iran, Syria as well as other countries opposed to the increasing footprint of NATO and its allies on the other.

It is glaring that the national interest is inextricably linked with the domestic policy of a country and how well it is able to secure the security and welfare of its citizens. Accordingly, His Excellency President Julius Maada Bio has placed premium on “Economic Diplomacy” as the core national interest under “the New Direction Administration.” This policy initiative has shifted the country’s effort from aid assistance from partners to engaging in trade and economic relations, with a view to attracting foreign direct investments to fund its major national projects.

In view thereof, Sierra Leone’s foreign policy direction can therefore be described as a “Sierra Leone First Policy”, in view of what international negotiations bring to the table, and what fundamental issues at the domestic level could be resolved in terms of infrastructural development, lower tariffs for imports of basic commodities, health and other social services. So far, the country is able to maximize its relations for greater assistance and efforts could be increased to lead to expansion in growth, and more importantly, in prestige as a nation.

President Julius Maada Bio’s administration places premium on economic diplomacy as a core national interest. To what extent has this influenced activities within your Ministry?

In the first instance, Economic diplomacy could be referred to as the process through which countries engage at bilateral and multilateral spectra to maximize their national gain in all fields of activity, particularly trade and investment. This concept, though varied, could be applied in various forms by countries to intensify relations for economic development, whilst promoting normal diplomatic relations.

The need to augment this crucial aspect of foreign policy has seen the creation of the division of Economic and Technical Cooperation (ECOTECH), which has intensified the Ministry’s effort in identifying key and significant global players ready, willing and able to do business with Sierra Leone through a ‘win-win’ cooperation. The ECOTECH Division has thus created a technical backstop for liaison with important sectors in the country such as the Ministry of Trade and Industry, the Chamber of Commerce, SLIEPA, etc. in this case, the Ministry can exercise collaborative trade promotion and technical cooperation for effective bilateral assistance from other countries and donor partners.

A key feature of economic cooperation has also involved empowering overseas Missions to engage in constructive dialogue with the business communities in their jurisdictions to realise formidable framework Agreements for cooperation with interested parties.

At the International level, the Ministry continues to follow up on our commitments with sub regional and regional Organisations such as Mano River Union (MRU), ECOWAS and the African Union (AU) for partnership on key objectives. The Free Trade Area Agreement (AfFTA) recently launched by the AU is one such collaborative measure for cooperation, which Sierra Leone intends to exploit fully. Continued efforts at the level of the United Nations and key global bodies by our Missions abroad, as well as engagement at summitry levels by H.E. President Bio are also certain to yield significant results.

What are the mechanisms put in place by the Ministry to encourage foreign direct investment and how effective have they been in attracting greater foreign partnership and investments to Sierra Leone?

Foreign direct investment in Sierra Leone is one of the goals of the new direction as encapsulated in the National Medium- Term Development Plan (2019-2023) of H.E. President Bio, and this is germane for all sectors of the Governments.

Consequently, and in view of Sierra Leone being a strategic location within the axis of the MRU, this Ministry continues to design important frameworks for Sierra Leone to be considered a destination and a hub within the sub-region. A key objective is therefore to attract investment for the creation of a strategic Economic and Trading Zone in the eastern part of the country within the context of the FTA coming into force.

Of importance is solid investment in both soft and hard infrastructure, being the basis for improved economic development. In that regard, this Ministry continues to engage non-traditional donor partners such as China, India, Russia, Turkey, etc. for investment in hardcore infrastructure, which should attract Sustainable business companies for long term investment in the country.

What kind of Support is the Sierra Leonean Government receiving from the International Community and the development partners in its efforts to achieve its development targets?

It is abundantly clear that Sierra Leone has received various kinds of support from the International Community over the years. One such support has been budgetary support.

Budgetary support refers to a method of financing a partner country’s budget through a transfer of resources from an external financing agency to the partner government’s national treasury. The funds thus transferred are managed in accordance with the recipient’s budgetary procedures. Budget support includes General Budget Support (GBS) and Sector Budget Support (SBS). SBS aims at contributing to accelerate progress towards the government’s goals within a specific sector (as identified in the sector strategy). On the other hand, GBS, as the case may be involves the dialogue between donors and partner governments, which focuses on overall policy and budget priorities.

The overall objective of budget support is to facilitate the achievement of the Government’s goals. More particularly, it intends to contribute to the achievement of a number of specific objectives, such as: establishing a favourable and stable macro-economic environment; improve government service delivery; focus on the needs of the poor; to name but a few.

The International Community has also provided support through grants or loans, which is common with the Bretton Woods institutions such as the IMF, the World Bank and the ICRB, although with conditionality. Aid has also been received from specific regional blocs such as the Saudi Fund for Development, Japan and China via TICAD, FOCAC, etc., as well as lines of Credit from Development Banks of India and China, among many others. Specific programs organized to raise funding such as Investment for a including the scheduled Russia-Africa Summit for October 2019.

During perilous times in the country’s history ranging from the civil conflict to the mudslide in 2017, a series of interventions have been received in assistance of a direct kind. Non-traditional donor partners, in particular, China, have also most often than not provided direct bilateral assistance to Sierra Leone without conditionality.

How is the Ministry mobilizing and leveraging Sierra Leonean Diaspora business communities for investment and trade in Sierra Leone

It is a necessary fact that fruitful engagements be effected with the Sierra Leone diaspora, in particular, the business community, with a view to transporting creative ideas and enlarging the business portfolio in Sierra Leone.

In view thereof, the Ministry is in the process of completing the Management and Functional Review process, which aims at subsuming the Office of Diaspora Affairs under its purview. The unit, if subsumed under the Ministry will certainly embark on compiling and registering of all Sierra Leonean businesses abroad with a view to providing adequate information for inward investment in Sierra Leone.

Further, our missions abroad have also been encouraged to submit quarterly reports on engagements with the respective Sierra Leonean communities abroad, with a view to facilitating their contacts with the host countries.

What Strategies have the Ministry of Foreign Affairs and International Cooperation adopted to develop a strong regional nexus and closer cooperation with other African countries for mutual development pursuits at the global arena?

The Ministry is aware of the need for building and sustaining international support and goodwill at the regional level, being a member of the MRU, ECOWAS and the AU. Active participation in these regional bodies over the years has proven to be conclusive in respect of strengthened relations with all the countries within the African Union.

As a start, Sierra Leone being the Coordinator of the Committee of Ten (10) on Reform of the United Nations Security Council has been successful in corralling the African countries towards a united and common position on reform issues, and Sierra Leone seeks to leverage this position for increased interaction in its relations with other African countries.

A “priority list” on all region, including Africa, is being finalized by this Ministry to present a clear set of objectives on ways of developing practical cooperation with emerging African economies where comparative advantages and favourable concessions could be mutually exploited for win win cooperation. Additionally, our Mission in Addis Ababa continues to be robust in its update on issues discussed at the AU Secretariat.

This Ministry further seeks to advise the Office of the President on participation at summit/events to build confidence at the highest levels.

How does your Ministry intend to sustain the global image and goodwill Sierra Leone has been enjoying since the inception of President Bio’s administration?

The foreign policy objectives of the country are invariably linked to boosting the image and prestige of Sierra Leone. The flagship project of H.E. President Bio in terms of promoting free quality education, coupled with the renewed fight against corruption are certain to create a new standard in relations between Sierra Leone and the International community.

For its part, this Ministry will certainly endeavor to reinforce the message of a disciplined leadership ready to do business in a resource-rich country which is ripe for business, in a transparent manner with its international partners as well as with the global business community.

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.

South Africa ’s e-health startup Erada Raises $318k For malaria diagnostics tool

Apart from fintechs, logistics and transport, Venture Capital firms seem to be going after Africa’s e-health startups this year. South Africa ‘s e-health startup Erada is the latest to join the league of fund raisers, with a new EUR288,000 (US$318,000) foundation grant from the De Beers Group to support its saliva-based Malaria Asymptomatic and Asexual Rapid Test (SMAART) test.

Here Is The Deal

De Beers Group, which has mining operations in South Africa, Botswana, Canada and Namibia, has provided the grant through its Venetia Diamond Mine in Limpopo, close to the border with Zimbabwe and Botswana.
The foundation grant from mining firm De Beers Group will be utilised in the final stages of Erada’s work prior to the product’s global launch, planned to coincide with World Malaria Day in April 2020. SALVA! will complete its field trials before full commercialisation and distribution in 2020.
The (SMAART) test developed by Erada is known as SALVA!, and is the world’s first ever saliva-based rapid diagnostic test for malaria. It includes a simple device for standardised collection of saliva, and can detect parasites circulating in an infected human before symptoms start to show, assisting in early detection of malaria.

“This generous grant from De Beers Group makes it possible for Erada to complete much of our vital preparatory work before we conduct field trials and finalisation of commercialisation of SALVA!,” said the startup’s founder Dr Benji Pretorius.

“The introduction of SALVA! is going to play a major part in achieving effective diagnostic testing and surveillance; as well as prevention and treatment of this disease, and therefore will be a major catalyst in meeting the WHO’s 2030 target to reduce malaria incidence and mortality by 90 per cent, ” Dr. Benji Pretorius said.

Read also: South Africa: e-health Startup SmartBlade Raises $635k

Why De Beers Group Invested In The Startup

“Mining and exploration operations face a number of unique challenges related to exposure to endemic diseases such as malaria, emergency medical care and in some cases a lack of available health services. Our investment in a local business which has the potential to transform the lives of millions of people worldwide is a logical extension of De Beers Group’s long history of supporting world and community health projects,” said Gerrie Nortje, general manager of the Venetia mine.

“Through this foundation grant, we are proud to be playing a pivotal early part in the eradication of one of the most pervasive and destructive diseases on the planet.”

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

How Mauritius is Fast Becoming a Big Business Player in Africa

Mention Mauritius and most South Africans will think of its pristine beaches and luxury resorts, but this small country is becoming a big business player not only in Africa but on a global scale.

Mauritius may just be an island — its annual tourist influx of 1.4 million outnumbers its own population of around 1.3 million — but this hasn’t stopped it, over the past three decades, from growing into a giant on the business front.

Many ‘Firsts’

As far as the continent goes, it’s already racked up a number of African “firsts” in terms of international business achievements. These include Economic Freedom of the World (2017, Fraser Institute), Forbes Survey of Best Countries for Business (2017) and the Global Competitiveness Index (2017–2018).

It also secured first place in Africa and 25th position overall out of 190 countries on the World Bank’s Ease of Doing Business Report, receiving recognition in terms of its political, social and economic stability, efficient and effective regulatory framework, state-of-the-art infrastructure, transparent and innovative legal framework and its highly competitive tax system.

With a government focused on promoting foreign and domestic investment, it has enabled free repatriation of profits, no withholding tax on dividends, interest and royalties, no capital gains tax, and no estate duty, inheritance tax or gift tax. Plus it has 44 tax treaties with countries across the globe and another 32 in various stages of negotiation and ratification.

Together with its low tax rates, its fiscal regime has seen it being listed in 2017 on the Organisation for Economic Co-operation and Development (OECD) “white list” in terms of transparency and being a fully compliant tax jurisdiction in terms of best practice international standards. It was, indeed, one of only three such top-rated jurisdictions in the world.

It is welcoming foreigners with open arms and — as a country in Africa — it’s certainly giving South Africa a run for its money.

Read also: Inside Mauritius Where A Majority of South Africans Are Migrating To And Their Reasons

A Financial Hub

Along with 4% growth in its economy, its reputation is also growing for being the best financial hub and base for businesses coming to Africa.

Investors from places such as France, India, and the UK — not to mention South Africa itself — are all seeing it as a safe place to set up shop. It’s why we, as The Business Exchange (TBE) with our own home base in South Africa, have set up our latest coworking space here, to meet the growing demand for office space on the island. It’s a destination we believe is out-investing South Africa

A Business Safe Haven

A safe investment climate, efficient financial infrastructure and political stability are always going to be highly conducive towards attracting and conducting business. Little over an hour longer in flying time than the time it takes to travel between Cape Town and Johannesburg, the third smallest country in Africa is, therefore, becoming an attractive destination in which to live, work, play and stay… quite possibly forever.

Its private and government institutions are strong. Good schooling (in English with French as a second language), state-of-the-art healthcare facilities, and a low crime rate are starting to see a number of South Africans turning their heads north in its direction — families as well as companies.

As a property ownership destination, it’s already been proving its worth for a number of years now, initially for holiday and second homes but, today, increasingly for residency, relocation and retirement. A huge attraction for investors and in particular those looking to attain passive rental income, has been its property development schemes for foreign non-citizen investment. An investment of $500 000 or more in a PDS will also grant an investor permanent residence status.

And, as we ourselves have found as The Business Exchange, there’s a great deal that’s attractive to invest in from a business perspective as well. Not only is there an ideal opportunity for us to service the rapidly growing need for professional office space on the island, but we’ve also decided to use the country as the perfect base from which to launch our own growth into the rest of Africa. Legislation around setting up companies and ownership structures in Mauritius are quite straightforward and relatively simple to administer with the right partners and advisors onboard.

It may well have been a place of beaches to start with, a few decades ago — and, believe me, those pristine sands are still just as beautiful — but it’s business opportunities are now among its biggest attractions. And as South Africa continues to reflect uncertainty, I’ve no doubt that Mauritius’s positive offerings will continue to grow even brighter.

David Seinker is the CEO of The Business Place, an office and co-working space with a number of locations throughout Johannesburg — and now in Mauritius.

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

First Set of Nigerians from South Africa Arrives Wednesday 11th September

With the completion of diplomatic formalities and other immigration requirements, the first set of the over 600 Nigerians who agreed to the federal governments offer for voluntary evacuation from South Africa in the wake of the xenophobic inspired attacks on Africans from other nationalities in South Africa. The attacks which has raised a lot of issues, and caused soured relationship between South Africa and many African countries almost led to a diplomatic spat with Nigeria. Also it took the shine of the World Economic Conference which took place in Cape Town South Africa last week, as many attendees used that opportunity to bring to the fore South Africa’s culture of xenophobia.

The first set made up of about 320 in number will leave South Africa on Wednesday according to the Nigeria Mission in South Africa. The federal government had in the wake of the crisis in South Africa sent an envoy to the President of South Africa, Mr. Cyril Ramaphosa condemning the attacks on Nigerians in particular and other African nationals. The government also promised to work with the government of South Africa to tackle issues of crime in the country especially those linked to Nigerians in that country.

The evacuation which was to start last week with Air Peace providing one of its Boeing 777-300ER series to airlift Nigerians willing to be evacuated free of charge was stalled due to the slow documentation process. The process which started on the 3rd of September 2019, could not achieve much as many of the Nigerians there have expired passports and other travel documents. Because of the delay, the Airline had to postpone its evacuation plans till everything is put in place. According to the Chairman of Air Peace, Allen Onyema, had said the evacuation set to start today (September 6) had thus been postponed to early next week by which time the embassy would have sorted the issue of travel documents. This is because the Nigerians in South Africa have to obtain travel certificates because many of them do not have travel documents and their passports have expired.

He added that since September 3, the airline had placed its Boeing 777 aircraft on standby awaiting a green light from the federal government. The government had on Thursday acknowledged the plans for evacuation by the private operator. Air Peace opted earlier this week to airlift Nigerians who have been affected by the latest upsurge of xenophobic violence in South Africa. South African outlets have been targeted in parts of Nigeria and its embassies closed for security reasons. “The Air Peace flight to South Africa will take off from the Lagos Airport and also return to Lagos. As earlier stated, the take off could be Sept 9 or Sept 10,” he said.

Earlier, a spokesman of the ministry of foreign affairs announced the plan of the airline to evacuate Nigerians who wish to return to Nigeria “free of charge.” Nigerians have lauded the gesture which some hold should have been government’s responsibility.

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.