Africa Will Need Pragmatism, Not Idealism, to Achieve a Just Energy Transition

NJ Ayuk, Executive Chairman of the African Energy Chamber, CEO of pan-African corporate law conglomerate Centurion Law Group

By NJ Ayuk

Western leaders often urge African nations to make a rapid transition from fossil fuels to renewable energy sources. They seem to think that African nations can switch to renewable power sources fairly easily, as if a good energy infrastructure was already in place.

But this is not the case in Africa, where roughly half of the population lacks access to electricity. Far too many our people can’t buy milk from a refrigerated grocery aisle, do schoolwork after sunset, or get an X-ray at their local hospital. Right now, those 620 million souls don’t need green electricity — they need electricity, period. Then there are the 900 million Africans who lack clean cooking fuel. For them, cooking with wood, charcoal, and even waste, is part of daily life. So is walking up to 20 hours a week to gather these fuels—and the dramatic health risks associated with inhaling smoke from cooking. The sheer urgency of these situations demands that we prioritize a reliable grid first and everything else second.

NJ Ayuk, Executive Chairman of the African Energy Chamber, CEO of pan-African corporate law conglomerate Centurion Law Group
NJ Ayuk, Executive Chairman of the African Energy Chamber, CEO of pan-African corporate law conglomerate Centurion Law Group

Different Timelines

Contrast this with the United Kingdom and United States, where the majority of homes have been energized since 1930 and 1960, respectively. Currently, Britain generates 41% of its electricity from renewable sources, and the U.S. recently saw its renewable generation outpace coal. Worthy milestones, but let’s not forget that both nations had already been enjoying and expanding their fossil fuel-based grids for nearly a century. They spent decades industrializing and building robust infrastructure before implementing successful green policies. I don’t believe that every single African state must follow the same timeline, especially as renewable technology improves. I do, however, ask long-industrialized nations to consider the vast differences between their energy landscapes and ours.

Different Needs

Many Western states supplement their grids with wind or solar but ultimately rely on natural gas, oil, or coal. Take the U.S., which generates 60% of its electricity with fossil fuels and 21% with renewables. The hard truth remains: Fossil fuels are still more reliable.

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How much more reliable? Natural gas has a capacity factor of 65%, which means that gas-powered plants operate at full power 65% of the time. Contrast that with wind and solar, which operate at 36% and 25%, respectively. In other words, these renewables are about half as reliable as natural gas.

Asking developing nations to ignore natural gas is essentially requesting that they ignore half their power capacity. It’s a declaration that Africans deserve half the energy, half the standard of living, and half the safety of their Western peers.

It’s admirable and forward-thinking that many modern states supplement their grids with wind or solar. However, when panels crack or wind farms fail, their people have the luxury of falling back on a safe, reliable, and established fossil fuel grid. It’s significantly easier to make an existing network eco-friendly than it is to build a green one from the ground up. Once Africans have universal access to electricity, climate-centric conversations will be much more welcome.

Different Costs

Africa contains 70% of the least developed nations in the world. Only one state – South Africa – is fully industrialized. It’s one thing to hear these statistics, and quite another to make decisions on the ground of a developing nation. I believe that many talented, well-meaning Western thinkers simply aren’t accustomed to the fiscal environment that African leaders operate in.

For example, consider the logistics behind solar panels. In the U.S., it can cost anywhere from USD15,000 to USD35,000 to purchase and install a panel — and that’s not counting the upfront costs of fixing a roof that’s not solar-ready, the recurring cleaning and maintenance fees, or replacing the panels every 20 to 30 years.

And for undeveloped areas, those fees are just the tip of the iceberg. Even in a scenario where a subsidy pays for every single panel, transporting them (via gas-powered engines, seeing as we don’t have the grid to support electrical vehicles) to their destinations becomes ruinous — there are no reliable trains or roads in our poorest areas. The labor costs of finding people to install, repair, and replace the panels also add up.

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Once these panels are magically purchased, installed, and repaired, the biggest problems still remain: Storing and transmitting the energy. Even first-world nations have not overcome the technological hurdles of creating reliable, long-term batteries and long-distance transmission for renewable plants. Developing, much less implementing, that infrastructure will entail staggering expenses even for an industrialized nation.

I do not say this to discourage solar solutions as a whole— the technology has great potential for Africa, which contains 60% of the world’s best solar resources. My point is simply that, as of now, widespread renewable energy use is not realistic for most developing nations. Our capital is limited, and we need to invest it in more tried and true solutions.

Different Investment

Attracting foreign investment into Africa is difficult enough under the best of circumstances. Despite the enormous potential of our natural resources and growing population, investors often put African projects on the chopping block first. As we point out in our 2024 Outlook Report, the ratio between actual greenfield spending and potential spending remains concerningly low. And those numbers only involve investments into tried and true fossil fuel exploration — pouring billions of dollars of capital solely into renewables is an even less feasible venture.  When it comes to renewables, we’re dealing with relatively fragile and unreliable technology, along with the challenges of high startup costs, poor infrastructure, and urgent energy needs.

For activists who refuse to believe this economic reality, I invite them to reread the financial pledges made by developed states at COP15. Wealthy nations acknowledged the transition challenges facing developing nations and pledged USD100 billion by 2020 to help them fight climate change. Thirteen years later, the real spending value came in around $24.5 billion. Climate promises do not often survive first contact with a checkbook.

Solar, wind, hydroelectric, green hydrogen, and geothermal energy have vital roles to play in Africa’s future — but it is ludicrous to suggest that our developing nations go 100% renewable before Western nations manage it first. Our current humanitarian, infrastructure, and financial situations require actionable solutions that will reward investors.

Natural gas has supported the West’s grocery stores, hospitals, and schools for decades — let’s use our abundant reserves to do the same.

Priorities

World leaders saw approximately 2.3 million people dying each year from COVID-19 and acted accordingly. Swathes of the globe locked down for months, shut down businesses, and changed social routines. Today, nations continue to pour millions of dollars into revamping their public health infrastructure. Policymakers advocate changes in medicine, law, and even culture to cope with the crisis.

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Meanwhile, approximately 1.1 million Africans die each year from using hazardous cooking fuel. In other words, from 2020-2023, unsafe fuel caused at least half as many deaths as COVID. Why don’t more world leaders treat energy poverty with a fraction of the urgency, compassion, and resources that they put into COVID containment?

Simply put, energy poverty is a humanitarian crisis. That is why African leaders will continue to advocate for the most pragmatic solutions possible, particularly natural gas. This plentiful, clean-burning, tried-and-tested resource remains our best tool to tackle energy poverty. I urge investors to embrace gas, and I encourage the global community to respect African leaders’ commitment to using every means possible, including our petroleum resources, to meet Africans’ needs.

NJ Ayuk, Executive Chairman, African Energy Chamber (https://EnergyChamber.org).

COP28: Afrobarometer Adds African Voices to Climate Conversation

COP28

Afrobarometer, Africa’s leading survey research organisation, is set to make a significant impact at the 2023 UN Climate Change Conference (COP28) by spotlighting the voices of African citizens captured in its recent Pan-Africa Profile on climate change. This underscores the organisation’s commitment to fostering a more inclusive and informed global conversation on climate action.

“In amplifying the voices of African citizens, we aim to bring a nuanced understanding of the unique challenges and opportunities faced by communities across the continent,” said Afrobarometer CEO Joseph Asunka. “We have also developed climate change country cards that provide a detailed snapshot of each nation’s progress and challenges in addressing climate change.”

DECEMBER 1: World Heads of State pose for a group photo at Al Wasl during the UN Climate Change Conference COP28 at Expo City Dubai on December 1, 2023, in Dubai, United Arab Emirates. (Photo by COP28 / Mahmoud Khaled)

On Wednesday, Afrobarometer Director of Communications Nafissatou Ndiaye Diouf and Communications and Knowledge Manager Josephine Sanny will host a briefing session at the Climate Innovation Zone for an audience of global sustainability leaders in the civil society, business, government, and development sectors.

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The 90-minute session will zoom in on Afrobarometer’s latest research in 39 African countries, which captures Africans’ awareness of climate change, their experiences with deteriorating weather conditions, and their expectations regarding climate action from governments, developed countries, and other stakeholders. The findings reveal that over the past decade, many Africans have experienced more severe droughts and floods. Yet these experiences do not necessarily translate into greater awareness of the climate threat: Only about half of survey respondents say they have heard of climate change.

For Diouf, including African voices in the global conversation on climate change is not just about representation; it’s about recognising the wealth of knowledge and lived experiences that our communities bring to the table.

“The Afrobarometer survey findings on climate change offer an opportunity to enrich the dialogue and ensure that solutions are truly reflective of the diverse realities within Africa,” she said. On Thursday, the Afrobarometer team will join Devex at the Climate+ Summit for a deep dive into discussions on tackling climate change and related challenges.

Among Africans who are aware of climate change, most expect their governments to take the lead in dealing with its causes and consequences – and to do so more decisively than they have to date. Citizens are prepared to support government measures to limit climate change, even if they are expensive or cause harm to the economy. But Africans also expect “a lot more” climate action from business and industry, developed countries, and ordinary citizens, underscoring their view of climate change as a shared global challenge.

“Afrobarometer’s new Pan-African Profile on climate change is a testament to our commitment to understanding, addressing, and mitigating the impacts of climate change in Africa,” Sanny said. “In fostering awareness and collaboration, we pave the way for informed decisions and resilient, sustainable futures.”

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Afrobarometer’s  participation at COP28 goes beyond showcasing its rich trove of data, aiming to empower citizens to actively participate in the global conversation on climate action for meaningful impact and change.

“As Afrobarometer brings Africans’ views on climate change to the forefront of COP28 discussions, we hope that Dubai will be the turning point where we move from promises to real progress,” Asunka concluded.

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

Sportify Announce Big Job Cuts Across Board

Sportify CEO Daniel Ek

Spotify will reduce its total headcount by around 17% across the company, it said in an e-mail this week, after laying of 6% of this staff in January citing higher costs.

In the latest third quarter, the company swung to a profit aided by price hikes in its streaming services and growth in subscribers in all regions, and forecast that its number of monthly listeners would reach 601 million in the holiday quarter.

CEO Daniel Ek said at that time the company was still focusing on efficiencies to get more out of each dollar.

Early this week, he said a reduction of this size will feel surprisingly large given the recent positive earnings report and its performance.

Sportify CEO Daniel Ek
Sportify CEO Daniel Ek

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“We debated making smaller reductions throughout 2024 and 2025,” CEO Daniel Ek said in an e-mail to employees. “Yet, considering the gap between our financial goal state and our current operational costs, I decided that a substantial action to right-size our costs was the best option to accomplish our objectives.”

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

BII, FMO, Proparco, Frontier Energy Co-Invest in Planet Solar, Sierra Leone’s First Large-Scale Grid-Connected Solar IPP

Jaap Reinking, head of the Private Equity department at FMO

Development Finance Institutions, British International Investment (“BII”), FMO, and Proparco, and renewable fund manager Frontier Energy has announced a co-investment of over $52 million for Planet Solar, a greenfield 50MW solar power project in Sierra Leone, developed by Frontier Energy and Planet One. The co-investment enables the development of a critical project that stimulates investment in renewable energy – responding to the urgent need for access to clean, affordable and stable power.

The renewable energy potential in Sierra Leone is abundant, primarily in hydropower, wind and solar resources. However, it remains underutilised while up to 80 per cent of the country’s electricity is generated from fossil fuels.

Driving a diversified approach to addressing energy access in the country, Planet Solar will be the first large-scale grid-connected solar Independent Power Producer (IPP). The 50MW solar capacity is expected to help avoid 53,000 tonnes of annual CO2 emissions. 

Jaap Reinking, head of the Private Equity department at FMO
Jaap Reinking, head of the Private Equity department at FMO

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Currently only 23 per cent of the population in Sierra Leone have access to electricity. This project will increase the operational domestic electricity supply by c. 30 per cent in Sierra Leone, channeling it to commercial and industrial entities, public institutions, and households connected to the main energy- grid. This enables more power to flow to industries and communities in Freetown, Sierra Leone’s commercial capital, the Western Area, and beyond including four sites throughout the country.

Commenting on the transaction, Chris Chijiutomi, Managing Director and Head of Africa at BII, said: “We are delighted to help bring clean and reliable energy to underserved regions in Sierra Leone. Our investment in Planet Solar highlights our commitment to climate finance and accelerating progress towards net-zero emissions by 2050. We look forward to the transformational potential of this project as a beacon to unlock more long-term capital to advance the country’s energy sector and support a more sustainable future.”

“Access to energy is a key enabler and driver of inclusive, sustainable, and resilient economic recovery and growth. We are therefore thrilled to support Planet Solar, the first large-scale grid-connected solar Independent Power Producer in Sierra Leone. We thank our co-investors and Planet Solar for the cooperation, supporting vital services to households and businesses in the country,” says Jaap Reinking, head of the Private Equity department at FMO. 

“We are thrilled to announce our support to Planet Solar, as this transaction is fully in line with our climate change mitigation strategy in Africa. This is Proparco’s first investment in Sierra Leone. We are all the more proud since Planet Solar’s projects are expected to increase the country’s installed electricity capacity by 30% thereby underpinning Sierra Leone’s development of electrical infrastructure,” added Tibor Asboth, Deputy Head of Private Equity Africa & Middle East division at Proparco.

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Commenting on the transaction, Lars Tejlgaard Jensen, Investment Director and Partner, Frontier Energy stated: “The 50 MW solar project in Sierra Leone stands as a testament to the project development and delivery capabilities of Frontier and Planet One. Despite challenging conditions, we have delivered on our joint commitment to provide stable, clean and reasonably priced power. The project will benefit urban & rural consumers as well as commercial & industrial entities, thereby fostering robust growth in economic activities across several regions. We thank H.E the President, Hon. Minister of Energy, various stakeholders in Sierra Leone, and our co-financiers, FMO, BII and Proparco for their support to this project of national & regional significance.”

Sierra Leone is one of the priority countries of the Africa Resilience Investment Accelerator initiative co-led by BII and FMO, with Proparco and other DFIs as members. The initiative aims to unlock investment opportunities and mobilise commercial capital in frontier markets in Africa. The commitment contributes to United Nations’ Sustainable Development Goals (SDGs) Affordable and Clean Energy (SDG 7); Decent Work and Economic Growth (SDG 8) and Climate Action (SDG 13).

Kelechi Deca

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

Africa Finance Corporation Signs US$350 Million Long-term Line of Credit With African Development Bank for Infrastructure

africa finance coperation

Africa Finance Corporation (AFC), the leading infrastructure solutions provider on the continent, announced that it has signed a US$350 million long-term line of credit with the African Development Bank (AfDB). The agreement, which was signed during the ongoing 28th Conference of the Parties (COP 28), supports urgently needed financing for infrastructure projects to underpin sustainable development and economic growth.

The collaboration is a significant milestone in a long-standing relationship, with AfDB becoming a shareholder in AFC in 2019, and the institutions co-investing in multiple transformational infrastructure projects. Most recently, both institutions joined the US, EU and governments of Angola, the Democratic Republic of Congo and Zambia in signing a Memorandum of Understanding for development of the Lobito Corridor expansion, with AFC appointed lead project developer.

africa finance coperation

The financing agreement with AfDB will enable AFC to mobilise additional resources towards continued development of infrastructure projects in its focus sectors, including power, transportation, telecommunications, and natural resources. These projects play a pivotal role in closing Africa’s infrastructure deficit and creating new opportunities for economic growth and prosperity.

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Speaking at the signing ceremony, AFC Board Member and Executive Director of Financial Services, Sanjeev Gupta, said: “AFC and AfDB have always enjoyed a mutually beneficial partnership and this facility further embeds our shared vision for a prosperous, resilient, and sustainable Africa. It is crucial that premier institutions in Africa work together and share knowledge, capacity and collectively negotiate on behalf of Africa to drive a development agenda that is both pragmatic and sustainable and ensures that it creates economic prosperity through local manufacturing, value addition and a shift away from the historic extraction and export driven model that has plagued the continent. We welcome the opportunity to widen and deepen our collaboration and deliver on our mandate that will unlock the continent’s economic potential, create jobs, and improve the quality of life for millions of Africans.”

“The partnership between the African Development Bank and the AFC exemplifies a shared commitment to catalysing sustainable development across the continent,” said Solomon Quaynor, Vice President – Private Sector, Infrastructure & Industrialization, at African Development Bank. “Through this line of credit, the two institutions, together, forge a path toward economic empowerment, infrastructure growth and a brighter future of Africa.”

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AFC has one of the highest investment-grade credit ratings on the continent (A3 by Moody’s), which it leverages to achieve among the lowest borrowing costs of any institution in Africa for deployment in developing critical infrastructure projects. The latest agreement underscores the power of leading African multilaterals, combining the strength of their resources and expertise, to drive rapid industrialisation and generate millions of jobs essential for the burgeoning youth population, enhancing the value of Africa’s raw materials and catalysing overall economic expansion.

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

EU Announce €1 Billion in New Climate Finance at COP28

COP28

The European Bank for Reconstruction and Development (EBRD) and European Union (EU) have announced new guarantee support of up to €1 billion for green investments. The announcement took place at the “High level roundtable on a Euro-Mediterranean clean tech cooperation”, a side event at COP28.

The new funding will boost lending to projects across various economic sectors, such as energy and municipal infrastructure, industrial, building and logistics. The funding will be supported by guarantees from the EU’s European Fund for Sustainable Development Plus (EFSD+).

Cop28
DECEMBER 1: World Heads of State pose for a group photo at Al Wasl during the UN Climate Change Conference COP28 at Expo City Dubai on December 1, 2023, in Dubai, United Arab Emirates. (Photo by COP28 / Mahmoud Khaled)

The financing of climate technologies will be backed by €168 million in EFSD+ guarantees. This funding will help to accelerate the uptake of innovative and under-deployed climate-change-mitigation technologies, particularly those facing high barriers in any of the economies where the EBRD operates outside the EU.

An additional €60 million in EFSD+ guarantees will be allocated to sustainable infrastructure projects. The guarantees will support green investments in the industrial, building and transport sectors, and include circular-economy and energy-efficiency measures in eastern Europe and the Caucasus, the southern and eastern Mediterranean region, and Türkiye.

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Speaking on the development, the EBRD First Vice President Jürgen Rigterink said: “I am delighted to announce this significant milestone, which will help us to achieve our ambitious goals in mobilising climate finance and supporting the United Nations’ Sustainable Development Goals. Together with the EU, our work will not only boost vital green investments, but also help to build a more sustainable future for people across the EBRD regions.”

The European Commission’s Director-General for Neighbourhood and Enlargement Negotiations, Gert Jan Koopman, said: “The EBRD is one of our key partners in our efforts to increase investments in our Neighbourhood and Enlargement countries. The two guarantees that the EU and the EBRD intend to conclude will help reduce the perceived risk by the private sector to invest in green technologies in countries engaged in a challenging green transition. These agreements show our strong commitment to the goals of the UN Framework Convention on Climate Change discussed at the COP28 gathering this week.”

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

Virtual Venue Brings a Whole New Game to the Global Football Industry

A Portuguese technology company Focus BC, will showcase Virtual Venue, a collaborative platform that supports organizers in planning and delivering events more efficiently, during World Football Summit Asia (www.WorldFootballSummit.com) in December 12-13 in Jeddah (Saudi Arabia); Validated by high-caliber organizations such as UEFA, FIFA or FIBA, Virtual Venue will seek to expand its footprint across the global football industry; The partnership between both organizations extends to World Football Summit events in 2024, including Football Innovation Forum, World Football Summit Americas and World Football Summit Europe.

The football industry is embracing new technologies at an exponential rate. One of these groundbreaking shifts relates to the adoption of virtual technologies, which helps football properties connect with any stakeholder around the world at any time and drive operational efficiencies across the sports business.

After working with top sports bodies such as FIFA, UEFA, or FIBA, across more than 40 events, Virtual Venue has demonstrated its ability to deliver cost savings, reduce carbon footprints, enhance event quality, and boost team productivity. Now, Virtual Venue is set to showcase its collaborative platform at WFS Asia. This innovative tool unites event organizers, fostering efficient event planning and delivery by bringing teams together in a shared virtual space.

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Scheduled for December 12 and 13, 2023 with the backdrop of the FIFA Club World Cup, the second edition of WFS Asia aims to bring together over 1,200 representatives and stakeholders from the football ecosystem. The event will feature 130+ speakers, with 70% of attendees being decision-makers from leading football properties and sports businesses.

The decision to host WFS Asia in Saudi Arabia highlights the country’s growing prominence as a global sports powerhouse and a force of sports innovation. The Kingdom has already secured the 2027 AFC Asian Cup and FIFA Club World Cup and has attracted top talents such as Cristiano Ronaldo, Neymar or Benzema. Moreover, Saudi Arabia is the sole contender for hosting the 2034 Men’s FIFA World Cup. Alongside football, the nation has made significant strides in other sports, including LIV, eSports, for which they will start hosting an annual eSports World Cup in 2024, and more.

The partnership between Virtual Venue and World Football Summit will then extend across WFS events in 2024, including:

Football Innovation Forum, taking place in London on May 31st.

World Football Summit Americas, being held Mexico in June 2024.

World Football Summit Europe, which will return to Seville in September 2024.

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Virtual Venue operates as a map-centric system, fostering collaboration among all event delivery teams using shared digital twin sites. Designed for user autonomy, it empowers even non-experts to tackle complex tasks. Together, teams define the event overlay and workflows, ensuring consistent communication and actions based on real-time information. User-friendly dashboards, featuring relevant KPIs, assist management in focusing on critical issues.

Since its inception in 2016, WFS has successfully attracted over 24,000 attendees across 18 events and has built a global community of 100,000+ sports industry executives throughout its platforms. Top names in the industry, including Gianni Infantino, Fatma Samoura, Ronaldo Nazario, Samuel Eto’o, Peter Moore, and Cindy Parlow-Cone have participated, showcasing the event’s significance in the global football landscape.

“As a global product, we are eager to explore opportunities in Saudi Arabia at WFS Asia and other prominent football markets worldwide. Partnering with WFS aligns perfectly with our long-term global strategy to penetrate these markets. Our commitment is to continue to position Virtual Venue as the industry standard for sports event organization.” Vasco Pinheiro, Managing Partner at Virtual Venue.

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Jan Alessie, Co-founder & Director of World Football Summit, shared his opinion on this partnership: “World Football Summit is committed to help the football industry embrace innovation, which is why we are excited to welcome Virtual Venue to the WFS network. We are confident that, given their expertise with other major sports properties, they will be able to bring value to the ecosystem and help solve inefficiencies that are currently preventing business growth.”

Kelechi Deca

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

Afreximbank’s President Oramah Emerges FORBES AFRICA’s 2023 Person of the Year

Afreximbank President Prof. Benedict Oramah

The President of the African Export-Import Bank (Afreximbank), Prof. Benedict Oramah, today in Cairo received the FORBES AFRICA magazine 2023 Person of The Year award.

At a well-attended award ceremony, which also included the unveiling of the cover for FORBES AFRICA’s December 2023/January 2024 edition featuring Prof. Oramah as Cover personality, Dr. Rakesh Wahi, FORBES AFRICA Founder and Publisher, and Roberta Naicker, the Managing Director, said that the award recognised the stellar accomplishments of leading Africans contributing to the development of the continent.

Prof. Benedict Oramah, the Bank's President
Prof. Benedict Oramah, the Bank’s President

“With a career spanning three decades at Afreximbank, Prof. Benedict Oramah is a true pan-Africanist,” said Renuka Methil, Managing Editor of FORBES AFRICA. “In our almost hour-long interview Prof. Oramah’s stellar track record, coupled with his unbridled enthusiasm, passion, and contribution to the economic development of Africa shone through”

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“Amongst many initiatives under his visionary leadership, Afreximbank launched the Pan-African Payment and Settlement System (PAPSS) which will be a historic project for cross-border payments in local African currencies. He is a resilient risk-taker and articulated so well what a new united Africa should, and would, look like,” added Ms Renuka Methil.

Nominations for FORBES AFRICA Person of The Year are submitted by members of the magazine’s editorial and research teams, including journalists from its bureaus across Africa, and a winner is selected after an Africa-wide review of the prominent contributors to the continent. Prof. Oramah’s name was shortlisted and unanimously adjudged the winner for 2023.

With the award, Prof. Oramah joins a prestigious list of high achievers who had previously received the award, including Sanusi Lamido Sanusi, former Governor of the Central Bank of Nigeria; Dr. James Mwangi, CEO, Equity Group; Dr. Akinwumi Adesina, President, African Development Bank; Aliko Dangote, CEO, Dangote Group; Mohammed Dewji, President, MeTL Group; and Thuli Madonsela, former Public Protector of South Africa.

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On 18 November, President Oramah also received the Zik Prize in Professional Leadership at an event in Lagos, Nigeria. He is also the recipient of numerous other awards for his contributions to the development and promotion of trade in Africa, and for the many initiatives he has championed to drive intra-African trade.

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

Binance, Cryptoconvert Partnership With Pick’n’Pay to Venture Into Retail Space

Changpeng Zhao, CEO of Binance

As the digital payment revolution gains momentum, Binance, a cryptocurrency exchange, is over the moon to announce its partnership with CryptoConvert which will see its users able to make payments cashless, contactless, and incredibly secure at all Pick n Pay till points. CryptoConvert partnered with Pick n Pay last year to trial making crypto payments more mainstream, and as of February this year, over 1,500 Pick n Pay stores now accept crypto payments.

Crypto to Buy Groceries

Binance says that while they might not be the first to announce this partnership, this move is still a stellar announcement for their users. Why? Because now, anyone can use crypto to buy their groceries at any Pick n Pay outlet.

Talk about crypto going grocery shopping. Binance firmly believes that when it comes to partnerships, it’s better to arrive fashionably late than to never show up at all.

Changpeng Zhao, CEO of Binance
Changpeng Zhao, CEO of Binance

As one of the largest exchanges by volume and the first major crypto exchange to offer the option of buying groceries with cryptocurrency, this move will not only restore trust in the industry but also pave the way for long-term growth.

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Adopting Cryptocurrency as a Mainstream Payment Method

Hannes Wessels, General Manager for Binance in Southern Africa, highlights the growing trend of adopting cryptocurrency as a mainstream payment method: “The partnership with Cryptoconvert exemplifies the rapidly growing trend towards adopting cryptocurrency as a mainstream method of payment, with nearly 75% of retailers planning to accept cryptocurrency payments within the next two years.” 

This strategic partnership signals a significant stride toward cryptocurrency adoption. Binance Pay and CryptoConvert’s CryptoQR application enable seamless transactions within seconds.

QR app for Swift and Efficient Transactions

Carel van Wyk from CryptoConvert says “Our partnership with Binance, one of the largest global exchanges, will enable users to make seamless payments via the CryptoQR app, ensuring swift and efficient transactions in seconds.”

Binance’s Wessels elaborates, “Binance Pay has been designed and evaluated by some of the foremost leading global security experts of our time, ensuring a highly secure transaction process. To safeguard your Binance Pay funds, it’s essential to exercise the same caution as you would with your internet banking app.”

He also concluded that announcements have no punctuality! Being fashionably late merely means that one stands a better chance of being remembered because, well, your news becomes the last thing people remember, just like the catchy tune you can’t get out of your head.

How to pay via Binance Pay

Open the “CryptoQR” application and follow the instructions to link your Binance wallet.

When you are ready to pay for your goods at a PnP store, ask the cashier to select the “Contactless QR” payment option (option 2) on the payment device.

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Scan the payment QR code with the “CryptoQR” app on your phone.

CryptoQR will scan the QR code and open your Binance wallet for you to complete the payment.

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

Nedbank Says There’s Shift in Consumer Spending Trends

Nedbank has said that it observed a significant shift in trends in consumer spending behavior during the recent Black Friday period. The Bank said that this  points to the continual evolution of South Africa’s retail landscape, and a greater awareness by South Africans of the importance of sound personal financial principles.

Decline in Card Transaction Volumes

According to data reported by BankservAfrica, the South African banking industry experienced a 6% decline in Black Friday card transaction volumes.

Yusuf Hassen, Head of Product Management Card at BankservAfrica, expressed that while this decline may initially seem concerning, it is essential to understand the broader context influencing consumer behaviour.

Yusuf Hassen, Head of Product Management Card at BankservAfrica
Yusuf Hassen, Head of Product Management Card at BankservAfrica

He says, “Financial constraints faced by consumers were clearly visible in this year’s Black Friday spending patterns, Hassen notes,“and we are also mindful that promotions extended throughout the month of November, which could have resulted in the muted figures for Black Friday itself.”

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Possible Reasons for Transaction Data

According to Hassen, Black Friday spending could have been impacted by the fact that it fell on the 24th of November, as opposed to the 25th that is the usual South African pay day.

Executive Trading Product VP at Nedbank explained that Black Friday delivered mixed data in terms of transaction volumes and values.

Despite a decrease in physical card transactions, there was a continuation of the shift towards e-commerce, evidenced by a robust 35% growth in online payment transactions.

Nedbank’s own data also reveals a pattern that appears to bear out Hassen’s opinion about the payday mis-timing of Black Friday. The bank saw a slight decline in the growth of volume and value of transactions on the day itself, followed by a significant recovery over the weekend.

Sharp Rise in Contactless Payments

Nedbank’s issuing base mirrored this trend, remaining flat year-on-year but showing a strong weekend recovery into Cyber Monday. Notably, e-commerce transactions involving Nedbank and American Express cards increased on Black Friday.

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“The trend towards contactless payments is particularly encouraging, demonstrating a 47% volume increase and a staggering 93% value growth compared to 2021,” says Naidoo, highlighting the fact that this was not a passing fad relating to the pandemic, but rather that consumers now recognise the convenience and security that these contactless transactions offer.”

Data shows shift towards mindful spending

The highest number of transactions by a single Nedbank cardholder on Black Friday dropped significantly, coming in at 64 in 2023, compared to 100 in 2022.

It was further observed that this datapoint is indicative of a broader trend observed by Nedbank towards more discerning and mindful spending by consumers.

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