News - Afrikan Heroes

Stellantis Invests 3 Billion in South Africa, Establishing State-of-the-Art Automotive Plant in Coega

September 20, 2023

Stellantis has confirmed its intention to develop a greenfield manufacturing facility in Coega in South Africa with the Industrial Development Corporation (IDC) and the Department of Trade, Industry and Competition (the dtic)

Stellantis MEA COO Cherfan and SA Minister of Trade, Industry & Competition Patel shake hands on a new manufacturing plant in South Africa; Rapid progress has been made since the MOU signing in March 2023 with the Industrial Development Corporation (IDC) and the Department of Trade, Industry and Competition (the dtic); this bold initiative reinforces Stellantis MEA Region’s Dare Forward 2030 ambition to sell one million vehicles by 2030 with 70% regional production autonomy.

Stellantis has confirmed its intention to develop a greenfield manufacturing facility in Coega in South Africa with the Industrial Development Corporation (IDC) and the Department of Trade, Industry and Competition (the dtic). Minister Ebrahim Patel, senior officials from the IDC and Mr. Samir Cherfan, Stellantis Middle East and Africa Chief Operating Officer met at the Parliament Buildings in Cape Town to agree on investment in the South African motor industry.

“It is a wonderful day for all South Africans when a global company of Stellantis’ proportions decides to expand its manufacturing footprint in South Africa, to assemble completely knocked down units,” said Mr. Ebrahim Patel, Minister of Trade, Industry and Competition. “South Africa currently has the capacity to produce close to 700 000 vehicles annually. This will add considerable additional capacity, just as we prepare to implement the African Continental Free Trade Area. The country remains a great investment destination and this commitment from Stellantis to invest in our local motor industry highlights the success of our manufacturing sector policy, its capability and potential. We look forward to welcoming Stellantis to South Africa and sharing in the detailed plan for employment and investment”.

“We are delighted with the speed at which we are progressing on this project, thanks to the commitment of Minister Patel and the great collaboration with IDC, CDC and dtic teams,” commented Samir Cherfan-Chief Operating Officer Stellantis Middle East and Africa. “This project reflects our focus and trust in South Africa as one of the most important markets in Africa & Middle East. It is also the execution of our Dare Forward 2030 Strategy to reach over 22% Market Share in the region by 2030 with 70% regional localization of our sales leading to over 1 million units produced. We believe in South Africa and we intend to develop industrially and commercially bringing value to our customers”.

The manufacturing plant will be built in the South African Special Economic Zone (SEZ) in Coega situated near Gqeberha in the Eastern Cape province of South Africa. The greenfield manufacturing project is planned to complete by the end of 2025. The first launch planned early 2026 is a 1 T pick-up truck with volumes expected to reach up to 50,000 completely knocked down (CKD’s) units annually including export, in line with the industry masterplan, known as the Automotive Production Development Program (APDP). The plant will be predisposed in terms of space and painting to go up to 90K units / year.

Direct employment to support the first capacity step is expected at 1000 jobs. Stellantis will be massively investing in over 500 000 hours in training and skills to develop and support the local teams to the level of global standards. We are targeting a localization rate over 30%.

“The Coega Development Corporation (CDC) is enthralled for Stellantis to have chosen the proposed site in Coega for their Southern African manufacturing operations. Joining other major manufacturers in the area makes the Coega region the primary automotive hub in the country. The investment in the plant, employment, training and skills transfer will certainly benefit the region tremendously. “This is a much needed and welcomed economic boost for the Eastern Cape Province with an anticipated economy wide impact on the province’s GDP of R 664 million. Household income is anticipated to increase to R558.4 million within the Nelson Mandela Bay Municipality (NMBM) and R577.4 million for the entire Province. Most importantly, an anticipated 1800 jobs will be created in the Metro and around 2 097 for the EC Province,” said Khwezi Tiya, CEO the CDC.

Stellantis continues to work closely with the IDC in developing a viable joint venture (JV) partnership that will be evaluated by appropriate credit committees. “Stellantis’ success with similar manufacturing plants around the world is well-known and our planned JV with Stellantis to build another greenfield plant in South Africa is progressing well. The investment is in line with IDC’s intent to drive investment that supports the development of the regional automobile value chain,” said Mr. TP Nchocho, CEO of the IDC.

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

Classera Launches Innovative ‘Smarter Schools’ Initiative in Egypt to Revolutionize Education

Classera International has introduced the Smarter Schools initiative in Egypt, following its successful launch in the Kingdom of Saudi Arabia. As a leading global player in educational technology, the Classera platform is dedicated to delivering high-quality education and empowering schools to leverage advanced educational technology to the fullest.

Under the Smarter Schools initiative, Classera extends an invitation to all schools seeking to harness and enhance smart educational technologies while simultaneously saving costs to join its partner network. Schools that participate in this initiative can access financial support from Classera.

The primary goal of the Classera “Smarter Schools” initiative is to expedite the digital transformation of schools, enabling them to adopt the various technological solutions offered by Classera’s partners. Furthermore, this initiative offers valuable incentives and discounts from over 18 partner organizations, including Selah El Telmeez, Kutubi, Ynmo, Eduten, Cleverbox, Swigle, Oryx Learning, Vlaby, and other prominent educational technology service providers.

Schools that engage in this initiative also receive special credits from Classera, which can be utilized for the procurement of smart education technology solutions tailored to the specific needs of students.

Classera is widely recognized as the largest educational technology company in the Middle East and Africa, serving millions of users across more than 35 countries globally.

Mahmoud Al Jabri, Director of Strategic Partnerships at Classera International, expressed the company’s commitment to making a substantial positive impact on the education process in Egypt through the Smarter Schools initiative. The aim is to ensure the provision of top-tier education and enable schools to effectively embrace advanced educational technology, aligning with their vision to enhance the future of education and foster educational excellence in Egypt.

Recognizing that teacher development is pivotal to achieving educational excellence, the “Smarter Schools” initiative, in collaboration with its partner organizations, offers continuous training and professional development programs for teachers. These programs equip educators with the skills to implement the best educational practices and effectively integrate technology in the classroom.

Furthermore, Mohamed Nada, the founder of Vlaby platform, one of Classera’s partners, highlighted that their platform provides virtual science laboratories tailored to school students, aligning with their prescribed curricula from primary to secondary levels. This resource is available in five languages, allowing students and teachers to conduct self-assessment tests using any device, at any time, and from any location.

Market Pressure May Break Stablecoins

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

Market Pressure May Break Stablecoins

September 19, 2023

Growing market pressure is piling so much on Stablecoins as it has wilted to their lowest market capitalisation in more than two years which shows that Bitcoin isn’t the only asset experiencing a slump. Stablecoins, cryptocurrencies typically pegged to real-world assets like the US dollar, have wilted to their lowest market capitalization in more than two years, as subdued trading volumes and a weaker dollar weigh on the market for the tokens. In fact, they’re suffering more than most.

While the entire crypto ecosystem has bounced back somewhat from its 2022 lows, the market cap of the stablecoin sector is set to decline for the 18th consecutive month, according to research firm CCData. It has shrunk by almost a tenth this year, standing at US$124.4-billion as of 14 September.

The reason why tether has stickiness among its users is that the entire emerging markets basically run on tether. “A lot of the appetite for stablecoins, because predominantly they are dollar-denominated ones, has to do with appetite for the dollar,” said James Butterfill, head of research at CoinShares. A jump in the dollar index on interest rate hikes last year was accompanied by a big rise in stablecoin volumes, he added.

Yet all is not equal: dollar-pegged tether, the biggest stablecoin, is bucking the losing trend. It hit an all-time high of $83.8-billion in July, according to CoinGecko, after spending the first three months of this year below $80-billion, and has since dipped to around $82.9-billion.

Paolo Ardoino, the chief technology officer of tether, said the coin’s value had been supported by its popularity in certain parts of the world.

“The reason why tether has a stickiness among its users is that the entire emerging markets, the entire central South America and Central Asia, basically run on tether,” he added.

Stablecoins’ key role

While only a fraction of the crypto market, worth more than $1-trillion, stablecoins play a key role for traders, allowing them to hedge against spikes in prices of other tokens, like bitcoin, or to store idle cash without transferring it back into fiat currency. Some enthusiasts also envision stablecoins being used as a form of payment.

But the market for the tokens has languished since last year’s collapse of terraUSD, an algorithmic token that was once the fourth-largest stablecoin, whose downfall was the first domino in a series of dramatic failures for the industry.

The market has also been hit by the losses of Binance’s dollar-linked token BUSD, which is down about 89% from an all-time high hit in November. In February, the New York department of financial services ordered issuer Paxos to stop minting the token, which was once the third-largest stablecoin.

Though Paxos is maintaining support for BUSD through at least February 2024, a Binance spokesman said the company is encouraging users to trade their balances for other stablecoins.

USD coin (USDC), the second-largest stablecoin, has seen its market cap slide more than 53% from the all-time high it hit in June last year, and is now hovering above $26-billion.

Both tether and USDC lost their pegs to the US dollar at points last year: tether when terraUSD collapsed in May 2022, and USDC in March when Silicon Valley Bank — where the token’s issuer Circle Internet Financial held $3.3-billion of its cash reserves — failed.

The failure of SVB — along with other regional banks earlier this year — is still causing uncertainty in the market, said Dante Disparte, chief strategy officer and head of global policy at Circle, although he emphasised that growth is not the company’s only metric of success.

“There has been a sort of temporary de-risking from the US, but it’s not a function of regulatory ambiguity,” he said. “It’s more a function of the lingering effects of the banking crisis, and I think even there, we will start to see some corrections in the market.”

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

DStv Launches Full Scale Anti-Piracy War

MultiChoice Group chief operating officer Simon Camerer

As pirates are finding new ways to circumvent broadcasters’ security technologies, Africa’s leading cable television conglomerate MultiChoice is not taking matters lying down as it rallies rightsholders and content owners to use every tool at their disposal to fight these threats and protect their revenue.

When Naspers the-CEO Koos Bekker pitched the idea of a satellite television subscription service to Naspers in 1986 – from which DStv parent MultiChoice Group evolved — he realised an encryption company would be necessary to fight piracy; Irdeto was acquired to fulfill that function for the group.

Irdeto’s anti-piracy director, Frikkie Jonker, said in a recent interview that streaming services must work tirelessly to ensure viewers pay for the content they consume by tightening up on security and limiting how content is shared. An end-to-end approach combines security technology with expert piracy oversight, cyber investigations, intelligence analysis and targeted enforcement.

“When we (MultiChoice) buy rights, we buy them for sub-Saharan Africa,” he said. “But there will always be people who want to watch content and not pay for it.”

There are various ways pirates steal content:

Cable piracy occurs when one or more MultiChoice set-top boxes are connected to the headend of a cable pirate operation and are the sort of connections you could find in hotels or gated residential estates. A pirate cable operator will usually provide false information during the enablement process of a MultiChoice smartcard.

Grey markets occur when, for instance, beIN Sports and Canal+ smartcards are sold outside the Middle East and used illegally within cable and rebroadcasting pirate operations on the African continent.

Then there is cross-border piracy, when a MultiChoice decoder dedicated to a specific country is taken to another country to be used illegally. This contravenes the geographical rights of the content and oftentimes a country’s state broadcaster’s rights.

Hotels, restaurants, clubs and pubs are often guilty of commercial piracy, when a smartcard is activated illegally to screen MultiChoice channels in public places with false information given by the subscriber during the enabling process.

Internet streaming piracy is one of the most common forms of illegal viewing, and occurs when one or more pay television operators are hosted within a private server operation and then illegally redistributed via the internet, with subscribers paying a fee to view the pirated content.

Jonker said the digital age has provided pirates with a vast array of tools and platforms to distribute content illegally. Piracy is no longer limited to straightforward downloads: pirates now use illicit streaming sites, real-time sharing through platforms like Popcorn Time, for example, which offers a Netflix-like interface but sources content from illegal torrent sites.

Pirates use virtual private networks to mask their activities, while peer-to-peer networks decentralise distribution, making it harder to pinpoint a single source of the pirated content.

The obvious result is a loss of tax revenue, as sales and subscriptions of legitimate content decrease; job losses occur in the film industry as the sector shrinks due to content being shared illegally; and consumers accessing pirated content expose themselves to malware and phishing attacks.

“One study found that a third of pirate websites deliver malware payloads disguised as plugin downloads or updates,” Jonker said. “Internet streaming piracy is not only a criminal offence, but also poses serious risks to consumers who may have their personal data, including banking information, stolen by pirate operations.”

Partners Against Piracy (PAP), of which MultiChoice is a principal member, said content piracy globally is at an all-time high. High-quality content and advanced streaming technologies have become more easily available and often fund other crimes, such as identity theft, child pornography and people trafficking, PAP said. Justice minister Ronald Lamola committed South Africa to fighting content piracy at the launch of PAP in March 2022.

In South Africa, it is illegal to provide content to any person or any third party without the consent of the rightsholders in accordance with the Copyright Act and Electronic Communications & Transactions Act. “Content theft has become a full-fledged criminal enterprise, providing illegal subscriptions to compete with established operators, and actions like ours are crucial in the fight against piracy,” said Jonker.

As determined as the pirates are, so are the teams fighting piracy.

“Our cyber teams scour the internet every day,” said Jonker. “They look at Twitter, at YouTube, at Facebook and examine posts on social media that look suspicious. Staff and installers report information to us.”

Jonker said other pay-TV platforms also report transgressions to MultiChoice, from as far afield as beIN Sports in Asia and Sky Sports in the UK.

DStv programming

The anti-piracy department has a large pool of ex-policemen, ex-military and ex-special forces operatives in Africa, Jonker said, who have a relationship with police officers in African countries and who are not afraid to raid premises and serve seizure warrants.

He mentioned two successful convictions in Bellville, for instance, and said in both cases the Hawks and the police’s commercial crimes unit were involved.

Lee Whaley, a UK citizen, was arrested in December 2019 by detectives from the provincial commercial unit for selling Android TV boxes and internet protocol television subscriptions, allowing access to premium copyrighted content, including DStv programming.

Government promises to fight piracy by working with the private sector

In November 2022, Jordan Mott was convicted of selling Android TV boxes and ordered to pay R120 000. Pirates operate globally, with most piracy in Africa occurring in Nigeria and Ghana. In May in the UK, five men who illegally streamed Premier League football matches to thousands of people were jailed. They sold cut-price £10/month subscriptions, showing games not otherwise available to watch live in the UK because of “blackout” broadcasting rules.

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

inDrive Rolls Out Services in Bulawayo, After Harare Experience

Vincent Lilane, Business Development Representative for inDrive Africa

Following its positive experience in Harare, Zimbabwe’s capital, ride hailing company inDrive has announced the extension of its revolutionary peer-to-peer ride-hailing services to Bulawayo, Zimbabwe. Following an overwhelmingly positive reception in Harare, inDrive is excited to continue reshaping the transport landscape by rolling out its unique “Name Your Price” model in Bulawayo with a zero commission phase, emphasizing its dedication to fairness and transparency in the ride-hailing sector.

With its head office located in California, USA, inDrive’s penetration into the Zimbabwean market is a reaffirmation of the company’s commitment to enhancing the mobility options available for African residents. Bulawayo joins Harare in the list, making Zimbabwe the eighth African country to experience the innovative platform and one of over 700 cities globally to benefit from inDrive’s services.

inDrive’s standout feature is its dynamic pricing model that places the power in the hands of the users. Passengers suggest a fare for their intended journey, and drivers can accept, counter, or decline the offer, culminating in a mutually agreed-upon price. This peer-to-peer approach has been a game-changer in challenging unfair pricing practices, with inDrive now boasting over 175 million downloads and standing proudly as the second most downloaded mobility app on a global scale.

Safety remains a top priority for inDrive. All users – both passengers and drivers – undergo a stringent registration process. To combat anonymity, only those with verified documentation can utilize the platform, with personal data only shared with authorities upon official request. The platform incorporates safety features such as passenger ratings, travel address alerts, a Safety Center, an emergency SOS button, and a “Share the Ride Route” option. Any safety incidents reported are promptly investigated, with potential mental health support resources made available.

“We are beyond excited about our expansion into Bulawayo,” remarked Vincent Lilane, Business Development Representative for inDrive Africa. “Our platform is not just about transport; it’s about empowerment, transparency, and reshaping the way we think about mobility. We look forward to offering Bulawayo’s residents a safer, fairer, and more flexible transport solution.”

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

Stephen Linnell is The New BankservAfrica CEO

September 18, 2023

Interbank payments provider BankservAfrica has appointed Stephen Linnell as its new CEO, replacing Jan Pilbauer, who left the organisation in April. BankservAfrica, which plays an integral role in the smooth functioning of South Africa’s economy, and which led the recent launch of PayShap, South Africa’s digital rapid payments platform, said Linnell will take the reins on 1 October.

“Stephen’s credentials as a dynamic executive across a wide range of disciplines is impeccable,” BankservAfrica board chairman Teddy Daka said in a statement on Monday.

“His passion for the development of financial market infrastructure is evident and we are confident of Stephen’s expertise and ability to lead BankservAfrica in its journey towards the envisioned platform future state.”

Linnell was previously both chief operating officer and chief information officer for global markets at Rand Merchant Bank. He also has experience leading wholesale securities and payments businesses for both RMB and Absa, and has held board level positions at other financial markets infrastructure providers.

On Pilbauer’s exit, BankservAfrica said: “Jan played a pivotal role in transitioning BankservAfrica to be recognised as an influential force in the industry through the delivery of PayShap, and in steering the organisation’s vision towards its modernised, future state.”

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

Spar CIO Resigns Amid Botched SAP Project

Spar Group’s CIO, Mark Huxtable, has resigned from the South African food and liquor retailer, not long after a rocky implementation of a R1.8-billion software system.

The move to the SAP software resulted in various integration and distribution issues that caused interruptions in stock deliveries to stores and lost sales. The SAP software project cost Spar about R786-million in lost first-half wholesale turnover. Operating profit fell 18% in the six months to March.

Huxtable’s departure is for personal reasons and he will leave the Durban-based company at the end of the month, it said Friday in an e-mailed response to questions. The problems with the SAP systems have been worked on and stores are again being serviced, it said.

Spar’s South African national IT executive Brett McDougall will step in to support the team, chairman Mike Bosman said in the e-mail. Huxtable did not respond to requests for comment and SAP said it was unable to comment on behalf of its customers.

The grocer has lost a number of executives this year, including its former CEO, Brett Botten, and ex-chairman Graham O’Connor who resigned over governance issues.

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

Ethereum Faces New Dilemma

One year after one of the most talked about software upgrades since the Y2K changeover more than two decades ago, crypto’s most important commercial highway risks becoming a victim of its own success.

The revamp of the ethereum network, which was known as the Merge, turned out to be a seamless transition to a more energy-efficient system of ordering transactions on the blockchain. One of the incentives offered to participants is the ability to earn a yield on tokens used to help the network run. Surging demand for the so-called staking feature has now raised the prospect of the network bogging itself down.

As part of the staking process, the ether tokens that underpin the network are “locked up” in digital wallets to help order transactions and to earn the yield. Already about 20% of all ether in circulation, valued at about US$41.5-billion, has been staked, according to data tracker Staking Rewards.

What’s driving the demand is that staking has emerged as one of a few reliable ways to earn returns in crypto

If the current pace continues, that amount would balloon to 50% by May and 100% by December 2024, according to a paper whose two authors include Tim Beiko, who coordinates ethereum developers.

What’s driving the demand is that staking has emerged as one of a few reliable ways to earn returns in crypto. Most token prices are still less than half the record highs reached in late 2021. Ether owners can currently earn a yield of around 4% by staking.

“We all like up-only, but not when the safety of ethereum is at stake,” the paper’s other author, who goes by Dapplion, said on X, the social platform formally known as Twitter.

The worst case scenario is that there won’t be any ether available to actually make transactions on the network. At a minimum, it increases the strain on the part of the network used to order transactions.

Staking influx

That’s why ethereum developers are working to slow the staking influx down. On 14 September, the developers agreed to cap the number of new validators, which operate the staking wallets, allowed to join the network every six minutes. The change will be tagged onto the next major ethereum software upgrade later this year. With the so-called churn change, ethereum won’t reach the theoretical point of 100% of all circulating ether being staked for several years, according to the paper.

“We want to slow it down a bit to buy us some time,” Matt Nelson, a product manager at ethereum infrastructure builder Consensys, said in an interview.

The respite will allow developers to figure out longer-term solutions. With staking achieving “unprecedented success, beyond the original intended targets of stake rate”, the paper said, developers may look at adjusting validator rewards “to discourage staking past a certain point”.

Most people don’t stake their ether — and act as validators — directly. Instead, they give their tokens to various services, operated by the likes of Kraken, Lido and Coinbase Global that pool the tokens and share in the rewards. Lido, which issues ether holders another token they can trade on exchanges while their coins are staked, has about a 33% market share, according to data service Dune.

“A knock-on effect is that it enshrines current staking providers,” said Jim McDonald, chief technology officer at Attestant, one of the largest ethereum staking providers.

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’s renewables capacity minimal at best — for now

NJ Ayuk, Executive Chairman at the African Energy Chamber.

By NJ Ayuk

There’s no question that renewables will have a future in our energy systems in Africa. It’s an exciting prospect to consider homes powered completely by the sun and clean-burning cars with zero emissions. But for many areas of Africa, these green technologies feel more like flying cars and jet packs. In other words: They won’t be within our grasp for a long, long time.

When it comes to relying on renewables, much of the continent is just not there yet… not even close. In fact, 43% of our total population still lacks reliable access to electricity of any kind. That’s more than 600 million people!

That’s why the African Energy Chamber (AEC) advocates for ongoing oil and gas production in our continent. Yes, renewables can be used to help deliver more energy, but they can’t do it alone. While Africa continues to face pressure from Western countries and environmental activists who want our continent to transition from fossil fuels to renewables right away, those calls are not based on reality.

The AEC recently released “The State of African Energy 2Q 2023.” This report forecasts Africa’s renewables capacity (solar, wind, and hydrogen electrolyzer solutions) — and for those eager to see Africa make an immediate switch from fossil fuels to renewables, the current prognosis may be a bit disheartening. Compared to the ever-growing capacities from Asia, Europe, and North America, Africa’s green tech production continues to remain miniscule.

Asia, Europe, and U.S. Drive Capacity

Capacity growth in Asia, Europe, and the U.S. is, not surprisingly, propelling most of the growth in sustainable energy worldwide. Together, these three regions currently contribute more than 90% of the global capacity: Asia, 755 gigawatts (GW); Europe, 330 GW; and the U.S., 260 GW.

These statistics make it understandable why so many of “the powers that be” in the fight for austere net-zero policies come from these regions.

When you’re able to produce such high volumes of renewables, and your infrastructure is able to convert these renewables into energy for most of your population, it makes sense that you’d support immediate net-zero ideals. But Africa is on a completely different track.

Very Little Impact

As our report shows, the current total announced capacity of renewables in Africa is around 385 GW. But the majority of the continent’s total announced renewables capacity is still in concept phase. Less than 6% is currently in operation: The actual current capacity for 2023 is estimated to be about 21.5 GW.

The report does expect to see growth in Africa’s renewables space, to 260 GW by 2035. By the numbers, this may seem like impressive growth. But it only represents 7% of global capacities. As a comparison, consider that today’s global renewables capacity stands at roughly 1,500 GW. By 2035, this figure is anticipated to reach 3,935 GW.

Let’s dive a little deeper: The 2023 global capacity for solar power is estimated to reach 575 GW, but Africa is only expected to contribute 9.75 GW of the total. Globally, solar capacity is expected to increase to 1,320 GW by 2030 and to more than 1,570 GW by 2035. And Africa’s solar PV capacities are only expected to increase marginally, to 18.2 GW, over the next two years.

When it comes to wind power, current global capacity is about 910 GW. Africa is only expected to contribute 8.75 GW to this amount. We see global wind capacity growing to 1,610 GW by 2030 and to over 1,945 GW by 2035. Meanwhile, Africa’s onshore wind capacity is only expected to increase to 14.5 GW by 2025.

The only real bright spot is hydrogen, where high levels of activity continue to boost capacity. Unfortunately, these high levels of activity are concentrated in just a few countries. As you can see, Africa has a lot of work to do.

Reaching Our Potential

However, here is where we at the Chamber are optimistic. The gap between African renewable capacity and global capacity means that there is great potential for us to gain ground. But we must be allowed to develop our green energy sector at a pace that makes sense for us.

Africa’s low-capacity volumes are both cause and effect of infrastructure — or the lack thereof. If Africa is ever to build up sustainable energy into a viable option for everyone on the continent, high investments are required. Despite an increase in operators and investors entering Africa’s clean energy and energy transition space, very little is currently contributing to Africa’s energy needs.

So while we at the chamber strongly encourage the development of renewables to power our lives, we remind the rest of the developed world that green tech is not a one-size-fits-all proposition. While some areas of the world have the means to launch renewable-only energy, many others do not. Developing regions must not be bullied into ascribing to net-zero methods that, at present, do not work for them.

We’re certainly not saying that renewables have no place in Africa. On the contrary: We see many promising projects on the horizon, from the AMAN green hydrogen project in Mauritania to the 10-GW renewable energy and green hydrogen hub being developed in the Republic of Djibouti in East Africa. What we’re saying is that we must temper the enthusiasm for renewables-only policies.

For the sake of her people, Africa must be allowed to develop sustainable energy at a pace that doesn’t further impede standards of living — in tandem with oil and gas. We definitely see an expansion of renewables in our future — but a focus on the present is the only way to get there.

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

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

21 Ministers Call for Simplified and Consistent Access to Climate Finance with Local Climate Adaptive Living Facility (LoCAL)

September 17, 2023

About 21 Ministers and high-level representatives today signed the Ministerial Declaration in New York calling for “simplified” and “consistent” access to climate finance and the establishment of a consolidated funding modality for the UNCDF managed Local Climate Adaptive Living Facility, which they said would enable them to federate and sequence climate finance and scale up locally led adaptation actions in their countries – and many others – where LoCAL is being implemented.

The launch took place at a dedicated Climate Week NYC event and on the side lines of the UN General Assembly, which this year seeks to prioritise accelerating action on the 2030 Agenda and its Sustainable Development Goals and include commitments on environment and climate.

The declaration, made by some of the world’s most vulnerable nations to the impacts of climate change, comes less than 100 days before the start of COP28, the annual UN climate summit that bring world leaders together to seek solutions to the climate crisis and grapple over questions of funding and reparations.

“The finance to at least build the minimum resilience should be available,” said Hon. Rohey John-Manjang, Minister of Environment Climate Change and Natural Resources speaking at the today’s event in UNCDF headquarters, New York. “My take as a Minister and as a LoCAL Ambassador is that this decision that we have all signed is completely fitting with the needs laid out in the latest IPCC reports,” she added, referring to the Intergovernmental Panel on Climate Change, which prepares assessment reports on climate change and response options.

“What I’m calling for is a smooth, successful sustainable financial flow – it should be guaranteed,” she added.

The LoCAL Facility provides a mechanism for channeling finance to local governments for locally led adaptation to the impacts of climate change, designed and managed by the UNCDF. Today, some 34 countries across Africa, Asia, the Caribbean and Pacific are designing or implementing their adaptation actions with the LoCAL Facility, which has mobilised over US $170 million for adaptation to date. The Ministerial Declaration is based on inter-governmental discussions held at a meeting of the 10th Annual LoCAL Board and Ministerial Meeting in May of this year.

“We see LoCAL as an integral part of the entire adaptation system of climate adaptation… that delivers at point of need,” said Prof Wilson K Tarpeh Executive Director and Chief Executive Officer of the Environmental Protection Agency, Liberia who joined the event in New York. “LoCAL provides a mechanism for channeling climate finance to the community level to make adaptation a reality.”

Today’s event adds momentum to ministers’ repeated calls for increased adaptation finance for African nations, Small Island Developing Sates (SIDS) and Least Developed Countries. Many speakers highlighted the fact that while their countries are feeling some of the most acute impacts of climate change, they, as pre-industrialised nations, have contributed the least to the carbon emissions driving the crisis.

“It was at the 10th LoCAL Board earlier this year that my minister, Hon Ugyen Dorji, Minister of Home Affairs, signed a Ministerial Declaration calling for action towards reforming the international climate finance architecture to respond to climate change and ensure simplified access to climate finance,” said Kado Zangpo, Director of Local Government and Disaster Management, Bhutan, who represented Hon Dorji and joined the event by video-link. “In line with that declaration we again call for the strengthening of the LoCAL Facility and the establishment of a consolidated funding instrument that can support countries to scale up their adaptation action with LoCAL.”

David Jackson, Director of Local Transformative Finance at UNCDF hosted today’s event, stating: “Ministers from 21 countries have added their signatures to this Ministerial Declaration are showing their clear and shared political will. It is important that we build on this document and progress on these action points and calls for action at the coming COP28.”

The Annual Conference of the Parties, or COP28, is an international climate summit that brings together world leaders to tackle climate change, including agreements around adaptation and climate financing. Demand from countries wanting to implement or scale up their adaptation actions with UNCDF LoCAL currently outstrips delivery and is hampered by funding flow requirements that often times earmark funds for specific time bound projects, countries or regions, hindering flexible, sustained, and responsive action.

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