South Africa’s national energy firm, Eskom will use a portion of $12.5-billion in multilateral loans to deliver power to areas where the grid is overloaded.
Eskom will use a portion of US$12.5-billion (R229-billion) in multilateral loans to deliver power to areas where the grid is overloaded and stymying the transition to renewable sources, according to electricity minister Kgosientsho Ramokgopa.
Expanding the nation’s transmission grid will significantly contribute to stopping power cuts and is crucial to bringing renewable projects online, Ramokgopa said Sunday.
“We know now that the transmission capacity has been exhausted in those areas,” he said in a media briefing. “And that undermines our ability to connect the renewable energy projects. This pool of money will help us to access that.”
We know now that the transmission capacity has been exhausted in those areas
South Africa needs an estimated R390-billion to strengthen its transmission capacity and connect renewable energy projects in parts of the Northern, Eastern and Western Cape to the national grid, the minister said.
Eskom’s performance has steadily worsened in recent years, leading President Cyril Ramaphosa to declare an energy crisis, step up the purchase of power from private producers and appoint an electricity minister for the first time in March.
Due to transmission constraints, many renewable energy firms have included options to raise money for grid expansion into their business models, Ramokgopa said in response to questions. “There is an insatiable appetite,” he said.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
Last month, the City of Cape Town hosted an innovation summit aimed at curating discussions about how the city could be transformed into a thriving start-up ecosystem – how it could become the Silicon Valley of Africa.
Some may argue that this will remain a pipe dream for many years to come, as South Africa continues to lag the rest of the world in its capacity to adopt the latest technological advancements.
Others would argue that this perceived lag actually opens up a broader range of opportunities for South African businesses. These conversations aim to focus on the fact that we could use this lag as an opportunity to expand the horizon of possibilities available to us, as we aim to build better systems, improve productivity and increase long-term profits.
There are three fundamental skills every founder should cultivate when building a business in South Africa
Drawing inspiration from the Silicon Valley model, where innovation thrives and entrepreneurs turn ground-breaking ideas into billion-dollar enterprises, South Africa’s start-up ecosystem holds great promise. A generation of young South Africans, including myself, embarked on an educational tour of Silicon Valley just over a decade ago. The experience offered a glimpse of Google’s cutting-edge innovations years before they hit the market. It left us inspired, because it proved that passionate young minds don’t need vast resources, experience or a huge network to create disruptive start-ups. They merely needed problems to solve, and South Africa has no shortage of those.
Today South Africa is more than just an observer; it’s a participant in the global tech arena. Thousands of innovators are determined to grow this country and its cities into the tech powerhouses of tomorrow. We’re not just dreaming of Silicon Valley’s success; we’re forging our own path here in Southern Africa, a journey that will offer a beacon of hope for the rest of Africa as well.
Ecosystem
To ensure that this vision materialises sustainably, we must establish a well-developed start-up ecosystem that supports continuous technological development, job creation and constant innovation. This will remain a critical undertaking if we want to drive growth and investment into our economy and people.
There are several challenges that keep South African entrepreneurs awake at night. To build a thriving business or start-up in South Africa, one must embrace a level of responsibility and commitment that surpasses even the highest expectations of a traditional founder or CEO.
That said, there are three fundamental skills every founder should cultivate when building a business in South Africa: a problem-solving approach, a customer-centric approach and effective storytelling can offer invaluable assets to any South African start-up.
Effective problem solving is the lifeblood of start-ups, particularly in South Africa. Launching and growing a start-up is often akin to piecing together a complex puzzle with numerous pathways to the desired outcome, yet with countless opportunities to veer off course. Founders must come to terms with the reality that there is no definitive manual or mentor to guide them. Instead, they must absorb knowledge from diverse sources, experiment and adapt based on feedback loops and success indicators.
The challenges facing South African start-ups are distinct from those in other markets and include navigating intricate regulatory environments and meeting specific market needs. Problem solving is not just about finding solutions, it’s also about discerning the right problems to solve. In a diverse nation like South Africa, understanding the requirements of different communities, urban and rural, is paramount. The ability to adapt and pivot in response to unforeseen obstacles distinguishes successful founders.
A customer-centric approach is equally essential. While entrepreneurial literature frequently underscores the importance of customer obsession, it’s a skill that may not come naturally to all founders. It’s easy to get side-tracked by personal aspirations when building a business. However, the most successful ventures stem from an unwavering commitment to meeting the needs and desires of customers. Founders who excel at extracting insights from their clients and persistently strive to meet their demands will invariably grow their businesses.
South Africa is a nation with diverse consumer preferences and needs, from bustling urban centres to rural communities. Understanding what your customers truly value is a challenging yet essential task. This goes beyond offering products or services that address their needs; it entails nurturing deep trust and loyalty.
The dream of turning Cape Town into the Silicon Valley of Africa is not far-fetched
Effective storytelling is an often-understated skill that every founder must acquire. Whether it’s recruiting top talent, securing investors or convincing customers to invest in a product or service that has yet fully to materialise, founders are essentially painting a vivid picture of the future and the possibilities their vision offers.
In South Africa, where the entrepreneurial landscape is still evolving, effective storytelling can be the bridge that connects your start-up’s vision with potential stakeholders. It’s about creating a narrative that captures the essence of your mission, the impact you aim to make and the value you bring to the market.
Honing these three essential skills – problem solving, customer centricity and storytelling – provides founders with a robust foundation on which to build. The journey can be arduous, but the most successful founders are those who strive persistently to master these skills.
The dream of turning Cape Town into the Silicon Valley of Africa is not far-fetched. South Africa, with its unique blend of challenges and opportunities, has the potential to nurture a vibrant and thriving start-up ecosystem.
Daniel Novitzkas, is CEO at Specno
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
In a strategic move signaling a comeback to the Moroccan financial landscape, investment fund Mediterrania Capital Partners, in collaboration with a consortium of investors, is eyeing a return to the capital of Cash Plus, a prominent payment institution in Morocco.
Mediterrania Capital Partners, known for its focus on SMEs and medium-sized enterprises in Africa, had previously entered the capital of Cash Plus in 2014, acquiring a significant 49% stake. However, the private equity firm exited its investment in February 2021. Now, it aims to re-establish its presence by jointly acquiring a majority stake in Cash Plus, according to an announcement made by the Competition Council of Morocco on Thursday, November 16.
The proposed acquisition involves a consortium of notable entities, including the International Finance Corporation (IFC), the FMO, and five other private entities. The specific share allocations for each participant have not been disclosed. The formation of a new company, MC IV Money, has been confirmed for the sole purpose of facilitating this investment in Cash Plus.
Mediterrania’s return to Cash Plus had been under speculation since early November, and the recent announcement confirms their intention to rejoin the shareholding structure. The private equity firm had previously sold its shares in Cash Plus in February 2021, following which it had hinted at potential reinvestment.
This investment initiative aligns with Mediterrania’s recent activities, including a €15 million investment from its latest fund, MC IV Fund. The fund has already seen successful investments in pharmaceutical company Laprophan and, notably, in Cash Plus. These moves underscore Mediterrania’s commitment to bolstering the financial landscape in Morocco.
Cash Plus, founded in 2004 and currently owned by the Tazi and Amar families, operates as a leading payment institution in Morocco. Offering a range of financial and para-financial services, from money transfer to bill payments, Cash Plus has been a significant player in the local financial market for nearly two decades.
The success of this proposed acquisition could reshape the ownership structure of Cash Plus and potentially enhance its capacity to expand and innovate within the dynamic financial services sector.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard
The South African Joint Standing Committee on Defence has called on current South African National Defence Force members to reconsider their resistance to the increase in their contributions to ensure that the Regular Force Medical Continuation Fund (RFMCF) remains viable and sustainable. The committee is concerned that the sustained low contribution model will have dire consequences for members when they retire. The envisioned balance will ensure quality medical services upon retirement.
“While the committee acknowledges that the RFMCF is a private entity, it is important to ensure the viability of the fund because it ensures the wellbeing of members after retirement. The welfare of our members, active or retired, is important,” said Mr Cyril Xaba, the co-Chairperson of the committee.
While the committee welcomed the fund’s improved financial management and governance, it emphasised that its funding model should be reconsidered in the light of the cost of healthcare, which is above inflation in most cases.
President Cyril Ramaphosa
The committee also highlighted the consequences of weaknesses within the South African Military Health Service (SAMHS), which directly impacts on the fund’s viability and which has resulted in the increased use of the private sector. A functional SAMHS should be providing quality healthcare to all its members, both active and retired. “We have been emphatic about the need to resolve challenges facing the SAMHS to ensure that it is enabled to provide adequate support to all members and also save the fiscus excessively high private medical costs,” said Mr Mamagase Nchabeleng, the co-Chairperson of the committee.
Meanwhile, the committee unanimously supported the President’s decision to deploy 3 300 South African National Defence Force (SANDF) members for service in cooperation with the South African Police Service (SAPS) to combat crime and maintain and preserve law and order under Operation Prosper. The SANDF deployment is part of the security cluster’s efforts to address the prevailing high level of brazen organised crime and illicit mining.
While the committee supports the deployment, it is concerned that the unfunded mandate will have an impact on the Department of Defence’s baseline budget, especially in light of further budget cuts. Despite this, the committee acknowledged that illegal mining is a serious challenge and requires the active participation of all to defeat it.
The committee further highlighted that the SANDF deployment is a short-term solution and that broader solutions must be developed to deal with this crime.
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
Fatma Samoura, FIFA Secretary General has been honoured in recognition of her achievements as Secretary General; Progress in women’s football and development schemes central themes of speech; Vows to continue work against discrimination after stepping down at the end of the year.
Fatma Samoura has received the Choiseul Grand Prix award at a ceremony in Casablanca, Morocco, in recognition of her achievements during more than seven years as FIFA Secretary General.
Appointed in 2016 and the first female, African and Muslim Secretary General in over a century of FIFA history, Ms Samoura has since worked tirelessly alongside President Gianni Infantino to rehabilitate FIFA’s image and increase transparency.
She has also been a staunch advocate for women’s football, and her tenure has seen a major increase in the number of girls and women playing the game as FIFA work towards the goal of 60 million female players in organised football by 2026.
Fatma Samoura, FIFA Secretary General
In her acceptance speech, Ms Samoura highlighted the success of the expanded FIFA Women’s World Cup 2023, which saw nearly two million fans attend matches in Australia and Aotearoa New Zealand, and noted the significant impact the tournament would have not only on the women’s game, but also society.
“As my journey with FIFA draws to a close, I have had some time to look back on the last seven-and-a-half years and see just how far we have come. FIFA itself has changed significantly. When I stepped into the role in June 2016, it was basically a toxic brand due to all the corruption scandals. So along with President Infantino, I had to take a leading role in cleaning up the organisation, inside and out. Today FIFA is a more accountable, better governed and more transparent organisation that puts football in the center of its activities, and I am hugely proud to have contributed in some small way to creating that.” said Ms Samoura at the event organised by Institut Choiseul, an independent, non-partisan and non-profit thinktank focused on finding solutions to economic challenges in Africa.
Ms Samoura has also contributed to changing the face of FIFA. Since the founding of the Women’s Football Division in 2016, the FIFA Council now features seven female members, including one FIFA Vice-President, while over 40 percent of FIFA employees are female.
But she has also been a driving force behind development schemes such as the FIFA Football for Schools programme (www.FootballForSchools.FIFA.com), this week attending the launch in Ethiopia as the East African nation became the 102nd of FIFA’s 211 Member Associations (MAs) to join the initiative, which aims to give children around the world skills for life as well as football.
She also highlighted the benefits of the Talent Development Scheme, which provides the most promising young players a pathway to fully exploit their potential, and the FIFA Forward programme, which funds MAs’ football-related development projects and has seen a seven-fold increase in support since 2016.
The FIFA Talent Development Scheme helps raise the standards of national-team football around the world for both men and women. The scheme supports MAs in making the most of the talent available to them with FIFA approved a funding allocation of USD 200 million. FIFA’s ambition is that by 2026, all MAs will have at least one high-performance centre of excellence for players between the ages of 12 and 16.
Ms Samoura was also a driving force behind FIFA’s partnership with Agence Française de Développement (AFD). The partnership has seen projects to mitigate Covid 19 effects, projects on mental health co-financed with the GIZ (the German Development Cooperation), and the Championnes programme. The Championnes programme is an important project that promotes leadership among girls and promotes gender equality in Africa through football.
The most recent co-financed FIFA/AFD initiative– with Play International and Diambars as implementation agencies – is an inclusive football academy programme launched in Djibouti, Malawi and Mauritania.
The benefits of these programmes in Africa can already been seen in recent FIFA tournaments including the FIFA Women’s World Cup™️ which saw an increase to four African teams qualify for the finals, with a record three of them – Morocco, Nigeria and South Africa – reaching the knockout rounds. African nations have also impressed in the FIFA U-17 World Cup™️, currently being held in Indonesia. Three out of the four CAF nations – Morocco, Mali and Senegal – have qualified for the knockout rounds with Morrocco finishing top of their group.
The Football Unites the World campaign, and the wide range of social issues given greater visibility at the FIFA World Cup last year in Qatar and this year’s FIFA Women’s World Cup, such as gender equality and education for all, have all been causes close to Ms Samoura’s heart during her time in office. She said she intends to keep promoting those issues when she steps down as FIFA Secretary General at the end of the year.
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
The African Export-Import Bank (Afreximbank) has announced the launching of an African Gastronomy and Culinary Arts Programme under its Creative Africa Nexus Initiative (CANEX).
Launched during the third Intra-African Trade Fair (IATF2023), the CANEX African Gastronomy and Culinary Arts Programme is the newest vertical within the CANEX programme and featured nine celebrity chefs from Africa and the Caribbean taking part in masterclasses, live cooking demonstrations and conversations with culinary experts.
The inaugural session of the programme, concluded with a live demonstration, dubbed the “Jollof Wars” to highlight the unique flavours and cultural diversity of Jollof rice among Nigeria, Ghana and Senegal.
Prof Benedict Oramah, president Afriexim bank
Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, said that the introduction of the programme would help to refocus continental efforts towards local food production to ensure food security, reduce high food costs and imports and minimise the impact of external shocks on Africa’s food supply chain.
He described the programme as an opportunity for the promotion of African cuisine to develop trade and local food value chain through promotion of local foods, highlight their superior health benefits to local and regional communities and support local restauranteurs and entrepreneurs to upgrade the dining experience through skills development and capacity building.
The programme would also improve access to finance to help build sector infrastructure, such as restaurants, franchises and packaged goods production plants, to develop the local food value chains and increase employment opportunities.
The launch featured a live demonstration and conversation with the Afreximbank President and Dr. Pamela Coke-Hamilton, Executive Director, International Trade Center, tracing the African food journey and its influence on food culture in the Caribbean, the Americas and globally.
The programme which was developed by African Food Changemakers had participating chefs Davisha Burrowes, Development Chef, Yolk Brands, Barbados; Christian Abegan, CEO Abegan & Co, Cameroon; Natasha de Bourg, President, Trinidad Culinary Limited, and Chef Stone of Red Dish Chronicles, Nigeria.
Prof. Oramah said that the programme would develop an enabling ecosystem from farm to table and would address issues such as food sustainability, GMOs, local farming, the business of franchising and the art of African cuisine.
Afreximbank introduced its African Gastronomy Development Framework to finance the development and expansion of food service market infrastructure, support production of local packaged goods and other value-add products and facilitate training and capacity development of African chefs and sous chef, food technologists, nutritionists, food safety specialist, etc.
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
The global mobility and urban services platform inDrive has announced the launching of a new venture and M&A arm aiming to invest up to $100 million in promising startups. Seasoned entrepreneur and investment professional Andries Smit joins inDrive as Vice President of New Ventures.
New Ventures investments will focus on rapid growth and positive community impact with the following investment criteria:
A mission that challenges injustice, improving the lives of individuals and communities
Local market startups with potential for global expansion
Post-seed/pre-Series A companies with proven product market fit
Rapid organic growth
Healthy economics and cash flow
Andries Smit, Vice President of New Ventures at inDrive, says: “Once an underdog and now a global company, inDrive is certainly an investor to watch – the team has achieved rapid global growth while remaining committed to its mission of challenging injustice. By investing in emerging companies innovating to improve people’s lives, inDrive further strengthens its commitment to challenge injustice by helping successful, but overlooked startups. The company is uniquely positioned to do this, leveraging its presence and fast growth in these emerging markets that have much weaker access to capital markets than developed countries.
Mark Loughran, President of inDrive
I’m thrilled to apply my own venture building and investing experience to help inDrive transform the lives of innovative founders hungry to scale up their successful businesses that contribute to a better world.”
inDrive’s New Ventures unit is dedicated to help investee and acquired companies scale quickly across inDrive’s platform. These companies are set to gain a competitive edge by tapping inDrive’s global multi-million customer base across 45+ markets, access to the company’s go-to-market know-how and technology.
Andries has held key strategic roles in both the startup and corporate organizations, leading business transformations, acquisitions and integrations at major corporations including Morgan Stanley, and Aviva. He has also built ventures as a partner at Stryber, a leading strategic growth partner and independent corporate venture builder in Europe, the Middle East, and the Asia-Pacific.
Mark Loughran, President of inDrive, says: “The mission at the heart of New Ventures is to find overlooked, high-growth startups that may be operating outside of traditional innovation hub regions, and support their development to increase their positive impact. Andries has a unique blend of corporate and venture building experience that makes him a perfect fit to lead New Ventures, and we are confident the energy and experience he brings will help us surpass our investment goals.”
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
Grindstone has unveiled its selection of 15 green technology start-ups for participation in its accelerator program. The collaborative effort between Cape Town-based accelerator Grindstone and the Anglo American Foundation (AAF) marks the initiation of the Grindstone South Africa program, with a specific aim to empower entrepreneurs in the green sector.
The chosen start-ups include VEZ Technology, Ground 2 Tap, I-N-TECH, Boombadotmobi, First Drop Hydration, Tsehla Holdings, GreenMovement, MKGreen Solutions, The Green Cab, Imperative Energy Group, Lily Loompa Upcycled Homeware, RE: HEAT Africa, Isphepho Group, PWK Waste Management and Recycling, and Umlilo Energy South Africa.
In a joint statement, the organizations express the program’s objective of assisting 15 technology and technology-enabled start-ups in the green sector by providing them access to secure funding and valuable market opportunities.
Maike von Heymann, Head of the AAF, emphasizes, “From solar power to waste management, to water filtration systems, this cohort of 15 start-ups are driving positive change in their communities across South Africa. At the Anglo American Foundation, we are proud to partner with Grindstone; together, we champion entrepreneurship that not only creates quality jobs, with a focus on youth, but also paves the way for a greener, more sustainable world.”
The program is scheduled to span over six months, commencing this month, and is tailored for post-seed to Series A start-ups operating within the green sector. Grindstone highlights that the winning company will be rewarded with a cash incentive at the program’s conclusion.
Start-ups involved in the program will gain access to knowledge through plenary workgroups covering strategy, branding, marketing, sales, technology, legal and intellectual property, valuation, finance, mentoring hours, secure funding access, and valuable market opportunities for networking, social media, and environmental, social, and governance (ESG) assessments.
Furthermore, these companies will benefit from mentorship provided by Grindstone alumni and established ecosystem network partners, including Green Cape and Savant.
Earlier in the year, Grindstone collaborated with Naspers Labs to launch the GrindstoneX female entrepreneur program, which selected ten local female-founded start-ups for participation.
Recognizing the expanding technology landscape, Grindstone emphasizes the potential of the green economy to create meaningful job opportunities in South Africa while simultaneously supporting environmental sustainability.
Catherine Young, Managing Partner at Grindstone, acknowledges the rapid growth of the green sector and underscores the need for a corresponding surge in impact investing and a focus on youth job creation in the primary and secondary markets related to the green economy.
Young states, “By supporting innovation in the green sector, including clean energy, decarbonization, sustainable food production, climate tech, and more, we can improve millions of lives, as well as drive sustainable economic growth and job creation in vulnerable communities. Our partnership with the Anglo American Foundation will help South African entrepreneurs at the forefront of building a more sustainable future. It ties in perfectly with our own ESG focus, which is strengthened through partnerships like this.”
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard
The African continent presents huge potential for growth and the recently introduced African Continental Free Trade Area (AfCFTA) agreement promises to underpin trade facilitation and economic expansion with be the largest free trade area since the formation of the World Trade Organization in 1995.
The longest journey starts with a single step. Government, public bodies, private institutions, and investors are having conversations with a pointed focus on compliance standards, verification of conformities and regulatory alignment to encourage import and export in a safe manner.
Africa’s current population of 1.5 billion people, expected to increase to 2.5 billion by 2050, demands the need for goods and services for domestic consumption and international trade to achieve sustainable economic growth and improve living standards. The forecast for Africa estimates the fastest urban growth rate globally according to the Organization for Economic Cooperation and Development (OECD), with cities touted to become home to some additional 950 million people. With most of this happening in small and medium-sized towns, great opportunities are envisaged and with this comes the need for food protection, much needed infrastructure development and essential services, all wrapped up in a green environment that is sustainable and transparent.
Hailed as a game changer for import and export
The AfCFTA has been hailed as a ‘game changer’ to intra-African trade, pivotal to boosting the economy because of its unification and solidifying of all the African countries into one binding agreement, making it historic and a first of its kind. The agreement is expected to change the face of the import and export landscape, already making an impact since it was brokered and signed in 2018.
As the AfCFTA becomes a part of the daily business environment, governments and businesses need to be aware of product standards and regulations to protect traders and society. The necessity for a safe environment for the export of goods within countries in Africa; and the regulatory and compliance alignment required for promoting “made in Africa” goods for export to international markets, have spurred on the recent collaboration between Afreximbank and the world leader in testing, inspection and certification, the independent entity Bureau Veritas, to launch the African Quality Assurance Centre (AQAC) in Ogun State, Nigeria.
AfCFTA Secretariat
The state-of-the-art testing facility ensures standards of final products for export comply with global standards across all sectors of the market, including the food chain; therefore, also serving as a health and safety benefit for the predicated urban growth. Aligned to international compliance regulations, the laboratory, through testing, ensures that “made in Africa” products are accepted internationally. Addressing the trade imbalance between import and export, the facility is making consistent inroads at balancing the playing fields.
According to Ohioze Unuigbe, Sales Director for Government Services, Africa for Bureau Veritas, and an instrumental player in the development of AQAC with Afreximbank: “Nigeria and more globally Africa have a razor-sharp focus on conformity and compliance of goods, which is helping to accelerate safe and secure trade with Nigeria and between countries in Africa and indeed to the rest of the world. We are in a very exciting phase in the maturation of the African trading landscape, and we just need to ensure we have the right regulations in place to drive compliance. Our collaboration with Afreximbank has resulted in a one-of-a-kind, modern testing facility which is going to bear great fruits for the protection and facilitation of intra-African and export trade with the continent and globally.” AQAC has also sparked the need for training and building local technical knowledge, further boosting skills, enhancing prosperity, and encouraging job creation. It is expected that further AQAC laboratories will be rolled out in due course which in turn will ensure ease of logistics and quality control across regions.
Bureau Veritas plays a key role in facilitating intra-African trade, helping support their clients to achieve market access for the made-in-Africa products, whilst also facilitating and promoting relationships with International Financial Institutions, including Afreximbank. With recent investments into laboratories to ensure compliance standards and the pre-Export Verification of Conformity programs in place, Bureau Veritas, together with its stakeholders, is determined to enhance inter-country exporting within Africa and is taking the lead on this very important topic.
Powerful influence of SONCAP on the economy
In 2005, the Nigerian government introduced the Standards Organization of Nigeria Conformity Assessment Program (SONCAP), a pre-shipment verification of conformity to standards for imported products. The program addresses the concern of unsafe products entering the country and the subsequent risks to public health and safety. SONCAP provides a level playing field in terms of quality for both regulated and locally manufactured products to prevent unfair competition. Products arriving at Nigerian entry points; ports, airports, or land borders without a SONCAP Certificate are rejected at the entry point and the Customs release will be refused. “To date the program has made a positive impact on products being regulated and importers are being held accountable for their goods, thereby improving the quality of products currently reaching the country,” adds Unuigbe.
“It is of vital importance that we view compliance holistically as a continent rather than through the lens of one nation. The European Union is strong because they collaborate on standards and compliance regulations. Bureau Veritas runs verification of compliance programs globally and so we can play a pivotal role in supporting any nation comparing their programs to best practice or refining their regulations. The recently launched TIC Council Africa with Bertrand Martin, SVP Africa Bureau Veritas will not only serve as a catalyst to shaping the African trade landscape but will also, ensure an eagle eye is kept on conformance and compliance across Africa,” he asserts.
The impact of standardization on the economy
Harmonization of standards and regulatory compliance are essential to unlocking the Nigerian and African economies, whilst also serving as an inhibitor of sub-standard product importation. Currently 45% of expired drugs end up in Africa due to lack of standards regulations, which in turn negatively impacts public health and safety. Standardization of products will alleviate many of these challenges in the long term, thus reducing the impact on weighty health budgets.
The African Quality Assurance Centre will further support the Nigerian economy by ensuring the correct pricing of commodities is obtained based on the quality of the goods, which is achievable only by testing. As a country rich in raw materials that are currently being exported for processing, this will make a positive dent on the economy and Gross Domestic Product.
Governments need to create an enabling environment for investors, which becomes more attractive to foreign direct investment if harmonization of standards exists. The Nigerian market is an import-driven market highlighting the need for strong regulations to protect consumers. The need for an independent testing, inspections, and certifications body to ensure compliance with a harmonized regulatory system and international standards is essential to creating an environment of trust and transparency; where government, businesses, investors, and consumers all benefit in a safe manner.
A new Trade Supermarket for Africa
Afreximbank plays a unique and pivotal role in intra-African trade and the African economy. Their positive impact on trade has been well documented, as already witnessed by much interest from companies for funding to process raw materials from natural resources prior to export.
Afreximbank, has strategically championed the progress of trade and are now perceived as the “Trade Supermarket for Africa”, boosting the economy, and acting as a “one-stop-shop” for financial needs for the continent whilst also supporting regional integration on the continent. Proposing a pan-African solution of international finance that will benefit every country on the continent.
In its drive to promote infrastructural development, Bureau Veritas certifications, testing and inspection certificates of quality are recognized and readily accepted internationally, making them an indispensable player in the relationships between Afreximbank, Africa and the AfCFTA. Afreximbank and Bureau Veritas together bring trust to the entire process, further encouraging much needed foreign direct investment to the continent.
Key drivers of the economy and regional integration
Many countries on the continent are in dire need of coverage of key infrastructures such as transport, energy, ICT, energy, infrastructure, and transboundary water resources.
One of the critical areas in the spotlight for the Nigerian government is food security. With an economy offering huge potential for growth AfCFTA and AQAC play a pivotal role in the Agricultural sector, one of the fastest growing areas of the market. Quality testing and conformance will further enhance food security, which is also dependent on infrastructure development as an essential driver for progress and has the potential to be an enabler of sustainable and inclusive economic growth. The African economy demands reliable infrastructure to connect supply chains and transport goods and services effectively across borders via regional corridors, central to successful intra-African trade.
The need for regional integration is core to the success of the AfCFTA in Africa, which will help create a new ecosystem for trade. As this gains momentum, an enabling environment for the private sector to invest on the continent will be created which will further boost economic success.
Sustainability, going green, conformity and compliance
Africa currently enjoys one of the lowest contributors to green-house emissions and has contributed the least to global warming. As and when much-needed infrastructural development is rolled out, sustainable green solutions that are inclusive and resilient are being implemented to address the infrastructure deficit.
Africa’s rich natural resources and the world’s largest free trade area, incorporating seamless regional corridors and harmonious compliance regulations, will set the stage for positive growth in intra-Africa trade.
One must think global and act local.
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
The African Export-Import Bank (Afreximbank) has presented an intra-African Engineering, Procurement and Construction (EPC) platform designed to empower African contractors to successfully bid for contracts by allowing for the seamless posting of key infrastructure projects within the EPC space in Africa for bidding by EPC companies.
The presentation, which took place during a workshop organised on the sidelines of the third Intra-African Trade Fair (IATF2023), also covered various products, programmes and initiatives developed by Afreximbank to support local companies engaged in infrastructure contract bidding.
Addressing the workshop, Kanayo Awani, Executive Vice President, Intra-African Trade Bank at Afreximbank, said that the objective of the workshop was to promote African participation in large scale African infrastructure projects and to promote the award of EPC contracts to African entities.
Mrs. Kanayo Awani, Executive Vice President, Intra-Africa Trade Bank, Afreximbank
“It is our belief that this specialized capacity building programme will enable African contractors to successfully bid for construction projects on the continent and beyond,” she said.
The workshop was held to share the results of a survey conducted on challenges faced by African contractors and to also share the critical success factors in winning projects. It also featured presentation of success stories from companies that previously received support from Afreximbank, including Mota Engil, Elsewedy and Hassan Allam.
The company representatives, in their presentations, highlighted the need for African countries to allow for the movement of labour across borders so that EPC contractors could bring in workers from other African counties where expertise existed. They also said that including local content requirement in EPC contracts would help to encourage the use of local contractors and enhance capacity building.
The workshop was capped off with the signing of facility agreements valued at US$200 million with Hassan Allam; US$30 million with Grainer Angola; US$50 million with DOTT Services; US$200 million with Arab Contractors; US$200 million with FDI; and US$300 million with Elsewedy.
IATF2023, Africa’s largest trade and investment fair, opened on November 9 and will run till November 15.
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
