As competition from existing and emerging firms heats up, ride-hailing platform Bolt has taken the battle to the turf through the introduction of a new low-cost category called Bolt Go for its South African customers. The new package which is aiming to be the cheapest ride-hailing service in South Africa, with fares approximately 20% less than regular Bolt rides is expected to retain patronage and attract new customers especially in the face of dwindling economic activities and rising poverty occasioned by the Covid-19 pandemic which has hit the country hard.
Gareth Taylor, country manager for Bolt South Africa.
The addition of the new low-cost category hopes to significantly lower the barriers to entry into the South African ride-hailing industry by empowering owners and drivers of hatchback cars to access the Bolt platform and earn an income says Gareth Taylor, country manager for Bolt South Africa. According to Taylor “smaller hatchback cars are less expensive to purchase, have lower maintenance costs, and are more fuel-efficient to operate than Bolt’s regular larger sedan cars,” adding that “these lower operational costs also enable Bolt Go fares to be significantly more affordable.”
The new more affordable service has already been trialed successfully in the Eastern Cape cities of East London and Port Elizabeth and is now being rolled out to all 35 cities and towns across South Africa where Bolt is active. Bolt has indicated that the service will initially be introduced to secondary provincial cities and towns, and then in the large urban areas of Gauteng, Cape Town and Durban. Time and kilometre-based rates vary between locations but will always be approximately 20% more affordable than Bolt’s standard sedan category.
“Because Bolt Go has been designed for hatchback drivers, the service is not ideal for trips with lots of luggage – for example to the airport ahead of a big holiday – but it’s perfect for people wanting to quickly, safely and affordably get to work, the shops or to family – all dependent on the COVID-19 regulations at any time,” says Taylor.
All trips in the Bolt Go category will include Bolt’s existing Trip Protection – a no-cost, value-added insurance product that covers all passengers and drivers across all car categories in the case of an accident or unexpected incident. The Bolt Go category is open to standard hatchback cars in good condition with low mileage, that pass a 45-point safety inspection and that seat at least four passengers in addition to the driver. Bolt anticipates that popular models will include the likes of Volkswagen Polo Vivo, Datsun Go and Toyota Etios.
The new category gives consumers even more choice in addition to the existing categories that Bolt offers including Bolt (the original sedan category), Isolate, Premium, XL and Van. Hatchback cars may only operate in the Bolt Go category. However, Bolt has enabled the drivers of its regular larger sedan cars, who may be experiencing a quiet period, to opt-in and out on an ad-hoc basis to Bolt Go to boost their earnings and maximise their earning potential.
Taylor explains that transportation services remain critical to the functioning of the economy, and as a significant stakeholder in the transportation sector, ride-hailing must adapt and transform in times of crisis. “Our focus is on the thousands of South African drivers who rely on Bolt to connect them with passengers and earn a steady income – and enabling them to continue to earn that income to care for their families and loved ones,” he concludes.
Bolt drivers across all categories, including Bolt Go, have to have a Professional Driving Permit and pass a criminal background check before they join the platform, and adhere to strict COVID-19 safety protocols during all trips.
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
Despite the great enthusiasm and energy of their proprietors, small and medium-sized enterprises constantly find it difficult if not impossible to obtain finance to develop or expand their businesses. The African Guarantee Fund (AGF) works with financial institutions across the continent to help extend much needed finance to the sector.
AGF’s group chief executive Felix Bikpo
In this interview, the AGF’s group chief executive Felix Bikpo explains exactly what his organisation does and its strategies and priorities going forward. Bikpo has more than 20 years’ experience in banking and finance with a specialised knowledge of the dynamics obtaining in Sub-Saharan Africa.
Over his diverse career, he has served as CEO of Access Pan-Africa, a holding company of Access Bank Plc Nigeria, Group CEO of Atlantic Financial Group, MD of Ecobank Niger, Executive Director of ETI (Ecobank Group) in charge of the restructuring of the West Africa affiliates and as Vice President of Citibank NA, in charge of Financial Control, in French-speaking countries. He was also the first Managing Director of Fonds de Garantie des Investissements Prives en Afrique de l’Ouest (GARI Fund), now AGF West Africa. Excerpts.
What is the African Guarantee Fund, what are its aims and who are the shareholders?
African Guarantee Fund (AGF) is an AA- Fitch-rated Pan-African non-bank financial institution. AGF contributes to the promotion of economic development – vital for prosperity, stability and poverty reduction in Africa – through reducing the financing gap between financial institutions and small and medium-sized enterprises (SMEs). The AGF operates via two lines of intervention: Provision of partial guarantees to financial institutions to facilitate access to finance for SMEs. AGF offers three types of guarantee: Loan Guarantees, Resource Mobilisation Guarantees and Equity Guarantees.
Provision of capacity development support to the Partner Financial Institutions to improve their ability to properly assess SME risks and to the Small and Medium-sized Enterprises to build their capacity for easier access to finance.
AGF was founded by the government of Denmark through the Danish International Development Agency (DANIDA), the government of Spain through the Spanish Agency for International Cooperation and Development (AECID) and the African Development Bank (AfDB). AGF has since been joined by Agence Française de Développement (AFD), Nordic Development Fund (NDF), Investment Fund for Developing Countries (IFU) and KfW Entwicklungsbank (KfW Development Bank). The West African Development Bank (WADB) is the shareholder of AGF West Africa, AGF’s first subsidiary.
What is your business model and why is this the most effective method of supporting loans to SMEs?
AGF’s business model aims to reduce the financing gap between financial institutions and SMEs, currently estimated at more than $150bn. Our business model identifies the obstacles that have led to this financing gap and plays the role of the ‘missing middle’ between financial institutions and SMEs.
In Africa, the main source of financing for SMEs is the banking sector. Despite banks’ increased interest in providing lending to SMEs, they still face multiple problems in doing so – mainly due to problems of assessing and managing SME risks.
One of the main problems is that banks lack the internal skills to develop products tailored to SMEs. Furthermore, the resources of banks and other financial institutions are mostly short-term, and it is therefore difficult for the banking system to easily use their current excess of liquidity to finance the investment needs of SMEs.
The inability of SMEs to provide acceptable collateral to reduce the lending risk associated with them, the inadequacy of their capital structure and sometimes, the poor quality of their management increases the reluctance of banks to fully support their activities. Finally, there is a vast perception risk among lenders towards SMEs. Our focus is to address the lack of access to finance by SMEs through the provision of adequate products.
What is your current capital? Could you also outline some recent funding agreements?
Our current capital is $150m. Some of our recent agreements include a $50m re-guarantee agreement with the pan-African Ecobank Transnational, a $34m guarantee agreement with Tanzania’s NMB Bank and a $25m guarantee agreement with the Botswana Development Corporation.
What is the significance of your agreement with KfW?
The biggest asset of a Guarantee Fund is its credibility. Among the criteria upon which the credibility is set, financial strength holds a key position. In this regard, AGF must have an adequate level of resources.
KfW has become AGF’s seventh strong shareholder with a capital injection of 25 million euros. AGF has now acquired more capacity to address the financing barrier, and will now be able to channel more guarantees and technical assistance to banks and other financial institutions, thereby generating enhanced growth in the African SME sector.
With this capital injection, AGF has now successfully concluded the $90m first closing of its fundraising campaign. We intend to raise an additional $320m capital over the next 4 years using a blended finance mechanism targeting Development Financial Institutions, private socially minded organisations, philanthropic organisations and governments.
SMEs are the backbone of all economies but in Africa they receive scant financial support. How is the AGF changing this?
AGF has to date issued up to $900m worth of guarantees. Through this, the loans that have been disbursed to SMEs amount to $1.5bn, enabling the SMEs to create more than 100,000 jobs across the continent.
SMEs are often dismissed as a bad investment risk; is this assessment correct?
It is true that despite the internationally recognised importance of SMEs, SME financing in Africa is often perceived by many financial sector players to be a risky activity as SMEs quite often more than not, fail to come up with the collateral levels required to secure credit facilities.
AGF addresses this risk perception through providing capacity development to our partner financial institutions to equip them with information and skills on how to properly assess and manage SME risks. The capacity development is also offered to SMEs to build their capacity for easier access to finance.
How much support do governments provide to SMEs?
Many governments are now intensifying their efforts to support the SME sector. There is, however, no doubt there is much that governments must do to improve the SME sector, including accelerating infrastructure and energy development, deepening regional integration, easing the regulatory environment, and ensuring healthy urbanisation.
Today, a lot of governments want to create local guarantee funds to benefit SMEs in their eco-systems. AGF is currently collaborating with some governments to help them set up risk-sharing facilities to support their local SMEs.
The AGF is now seven years old. How do you assess the performance of the organisation and what are you looking forward to?
AGF certainly has a lot to be proud of. From an initial focus on nine countries, we are now present in 40 African countries. We have issued guarantees of up to $900m which, as I mentioned earlier, has enabled partner financial institutions to issue loans estimated at $1.5bn to more than 20,000 African SMEs. We are also well on our way to creating 10,000 jobs per year by 2022.
Our Insurance Financial Strength (IFS) rating of AA- (very strong) was re-affirmed last year by the globally renowned Fitch Ratings. Our rating status is the first for a guarantee fund in Africa and only second to the AAA of AfDB, who are one of our shareholders.
In the words of KfW’s Director for Regional Funds, Thomas Duve, “AGF is a great example of an African solution for an African problem. Our institutional and economic strength, mirrored on our AA- credit rating, makes us a perfect partner for commercial African banks who are willing to finance SMEs.
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
Credits to the growing influence of online learning and educational facilities, Nigerian startup Traindemy, which gives people access to online courses provided by vocational and technical schools to help them acquire in-demand skills, says its user base is increasing in size by 25 per cent month-on-month. Established in mid 2018 but pivoted in August 2019 after it took part in the Injini ed-tech accelerator in Cape Town, South Africa, Traindemy provides digital access to short courses in areas such as arts and crafts, agriculture, engineering and technology.
Traindemy Chief executive officer (CEO) Vincent Edigin
These courses are provided by some of the best vocational and technical schools in Africa, and made available via the startup’s online marketplace. Chief executive officer (CEO) Vincent Edigin said it offered physical support to learners too, via its Traindemy workshops, which are still in beta.
“We know practice makes perfect sense, so our Traindemy workshops make it possible for people learning online to practice at private-owned physical locations for a token fee shared by the workshop owner and Traindemy. Learners are also able to search for in-person training happening around them and attend,” he said.
Since its pivot last year, Traindemy has built a user base of around 1,000 people, but Edigin said it is seeing 25 per cent month-on-month growth at present. “We operate a freemium model so users can start for free and are later prompted to enroll to access the full course,” he said.
Traindemy, which recently took part in the Forbes digital accelerator, was formed in response to a number of factors, including growth in unemployment and the decline in local production and manufacturing. “We decided to attack these problems from the root – education. And not just education, but education that makes you self-reliant with the ability to create an enterprise of your own and generate wealth,” said Edigin.
Connecting physical schools with virtual learners has proven a novel way of doing all this, and the bootstrapped Traindemy is looking to raise seed capital in the next few months to help it scale operations. Edigin said the company is in discussions with some investors, and is seeking around US$100,000 to give it a year’s runway.
“This would allow us to onboard more TVET schools and facilitate course creation by getting a dedicated studio and more equipment,” he said, adding that Traindemy also hoped to increase the size of its team, add new categories of course, and expand operations to 20 more Nigerian states. For now, the startup – which monetises through online enrollments, offline summer classes, and the booking of workshops, is focused on Lagos, but it does have wider African ambitions. Edigin said in order to succeed at scale, listening to users was crucial.
“We have learnt immensely from our users and have improved the platform to fit their needs. The difficulty we’ve had in scaling from where we are is mainly onboarding training content of schools for the online part, because it takes a while to curate this content so that the learner gets full value exceeding traditional methods they’re used to,” 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
Rwanda’s leading food logistics startup GET IT has secured a Series A funding round to expand its operations and give it a platform for future regional growth. Launched in 2014, GET IT combines food production, manufacturing, and distribution to build an integrated food ecosystem. The startup leads with domestic distribution to commercial kitchens and hospitality outlets, specialising in fresh fruits and vegetables, while it also offers a full in-stock portfolio of dry goods tailored to commercial kitchen needs.
founder of GET IT Lauren Nkurang
According to the founder of GET IT Lauren Nkuranga, “we provide meat, dairy, seafood, cleaning products, amenities, and other consumables for our hospitality and restaurant clients, this we do on top of our instock products. Moreso, we work with clients from Marriott, to Wilderness Safaris, One&Only, Singita, and Rwandair.” She added that “through our work in fresh produce, we have not only developed a strong network of 50 outgrowers, we have built significant backward linkages into the horticultural supply chain.”
GET IT also has a primary production arm, whereby it grows its own fresh horticultural produce, while it also partners with manufacturers to do simple processing of the products it grows for export and domestic distribution. The startup closed a fully subscribed Series A round, the amount of which is undisclosed in June, led by VestedWorld with Chandaria Capital following on top of an existing investment in the company. The remaining funders are individuals.
“The round will enable GET IT to expand to a fully articulated model of hospitality distribution, manufacturing partnerships, and primary horticultural production in Rwanda. We anticipate this fully articulated model will provide the platform for future regional expansion,” Nkuranga said. “Our goal is to be the leading food logistics company among East, West, and Central Africa.”
GET IT started life as a household retail distribution company, specialising in grocery delivery. “I did the first 500 deliveries out of the back of my car in Kigali. Through 2015 we discovered that there was no “broadline” food service distribution company, not only in Rwanda, but in all of East, West, and Central Africa. In 2016 we transitioned the company to be solely dedicated to broadline food service distribution, with a specialty on fresh fruits and vegetables. We built a network of outgrowers to provide over 100 varieties of produce to high end hotels, restaurants, and commercial catering companies,” Nkuranga said.
The company supplies commercial kitchens throughout Rwanda – not only in Kigali. “We also send trucks to the Volcanoes National Park, Akagera National Park, Lake Kivu resorts and Nyungwe National Park,” adding that “as we built backward linkages into our supply chain, we discovered significant barriers to growth with our outgrower network. We also saw significant opportunity to grow our product for export and domestic distribution.”
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
South Africa’s major telecoms company Vodacom Group has announced plans to launch a super app that offers financial and lifestyle services to its millions of customers. This decision observers say is not unconnected with its failed stint with M-Pesa, the continents leading mobile money platform. The new app being launched in collaboration with digital payment provider Ant Financial Services will make it possible for consumers in South Africa to shop online, send money and pay bills among other features.
CEO of Vodacom Group, Shameel Joosub
The China based payments company Ant Financial Services formerly known by the name of its signature product, Alipay, is also an affiliate company of Chinese multinational tech company, Alibaba Group. The fintech giant claims to have 1.3 billion users worldwide and is said to be the most valuable private fintech company in the world at $150 billion, a valuation that might see an extra $50 billion when the company goes public in the coming weeks.
This deal with Vodacom will see Ant Financial Services license its Alipay technology platform to the South Africa telco and carry out operations as Vodacom Financial Services. Additional details regarding the terms and offerings of this deal remain unclear at the moment, but from the statement released by both parties, the super app will be launched early next year.
One thing is clear, however: its offerings will not benefit only individual subscribers as small and medium enterprises aren’t exempt. From the statement, financial services such as insurance and lending will be made available for these businesses.
In 2010, Vodacom launched M-Pesa in South Africa, its first launch in Southern Africa before introducing the app in Lesotho three years later. Initially, the adoption of the service was moderate but never reached the heights recorded in Eastern African markets like Kenya and Tanzania. Vodacom revamped the service in 2014 with hopes of better adoption. But after witnessing abysmal progress with 76,000 active users in six brutal years, it shut down the product in 2016.
In South Africa, about 75% of adults in the country have one or more bank accounts, according to a survey done by a FinMark survey. For mobile money to thrive, it needs an underdeveloped financial services industry which is in great contrast to what South Africa has and most analysts say this might have been the main reason why the service flopped in Africa’s second-largest economy. However, the company blamed its failure on the country’s regulatory environment, stating that it was one of the worst regulatory environments for mobile money to thrive in Africa.
Since then, the South African telco has launched a joint venture of M-Pesa with Kenya’s Vodacom. And with equal stake, they both operate the mobile money service in seven African countries. With an imminent partnership with the Ant Financial Services, Vodacom is ready to take on not only mobile money but an array of services on one platform.
“We already offer South African customers an ecosystem of innovative digital financial services products. But this technology partnership with Alipay will enable us to be on par with leading global digital counterparts quicker and more efficiently,” the CEO of Vodacom Group, Shameel Joosub said in the statement.
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
Cash sent home by Kenyans living in North America hit a historic high of Sh15.7 billion ($145.95 million) in May, defying the tough economic situation facing workers in the region since the Covid-19 pandemic struck.
Data from the Central Bank of Kenya (CBK) shows the remittances from the region, which includes Canada, the United States and Mexico, rose by Sh2.5 billion or 19.6 percent from Sh12.76 billion ($118.71 million) in April.
This saw North America deepen its share of total remittances to 56.5 percent of the Sh27.78 billion ($258.15 million) sent to Kenya in May.
This is in contrast with May last year when the region accounted for 48.6 percent of total remittances. The CBK singled out the US as among the countries which brought in the highest remittances.
The US leads the world in Covid-19 infections, and the number of job losses in the country crossed the 40 million mark in May due to the effects of the coronavirus
The Washington-based Pew Research Centre says some 90,000 Kenyans are currently living in the US, including as many as 30,000 without authorisation.
The CBK had tipped diaspora remittances to dip owing to job losses and salary cuts from the many Kenyans living abroad.
Major economies
However, the May remittances represented a recovery from a six-month low of Sh22.4 billion ($208.21 million) recorded in April.
The rise came in the period remittances from Europe also recovered from Sh3.75 billion ($34.9 million) to Sh4.59 billion ($42.65 million). Remittances from the rest of the world rose by 27 percent to Sh7.48 billion ($69.5 million).
The CBK reckons that remittances were boosted by recoveries in major economies abroad and by more ways to send cash, including straight to the recipients’ mobile phones.
Source: Business Daily Africa
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer.
African governments alone cannot tackle the deep challenges in the continent’s health sector. For success to be guaranteed, Africa’s private sector must be engaged and involved. Indeed, some of the greatest progress towards the health related Millennium Development Goals would not have been possible without support from the Private Sector – in the last 15 years African business leaders and companies have significantly stepped up to the plate in the area of health sector philanthropy. Continued private sector involvement is key if the global Health for All target actioned on the foundation of Primary Health Care (PHC) will be achieved.
Mr. Aigboje AigImoukhuede,co-chair GBCHealth
The 1978 United Nations Alma Ata Declaration, which identified PHC as a necessary condition for universal access to acceptable levels of healthcare, has not taken root in Africa 42 years after. In fact, the continent is still grappling with basic issues including building the capacity of training institutions; instituting universal coverage health insurance schemes; deploying technology; updating national health policies and a host of others. ABCHealth, our coalition of African business leaders and companies focused on better health outcomes for the African continent, was established by the Aliko Dangote Foundation and GBCHealth to address challenges such as these. We at ABCHealth are committed to the transformation of Africa’s healthcare system, originating universal access at the primary level.
Our Chairman, Mr. Aigboje AigImoukhuede, who also co-chairs GBCHealth, recently provided deep insights into a bold new idea to transform Nigeria’s primary health care sector named ‘The Adopt a Primary Health Facility Program’ which will bring many benefits including the provision of quality healthcare to people regardless of geographic, social or financial barriers. The program has the backing of the Private Sector Health Alliance of Nigeria (PSHAN) founded by Aliko Dangote, Jim Ovia and Aigboje Aig-Imoukhuede. In this interview, Mr Aig-Imoukhuede, former CEO Access Bank Plc, who is one of the key drivers of this program in his capacity as Chairman of both ABCHealth and GBCHealth shares his views about the initiative. Excerpts.
What’s your vision for ADHFP? What’s the anticipated timeline for creation/implementation and importantly what’s the potential impact for Nigeria and Africa in general?
The ‘Adopt-A-Healthcare-Facility-Program’ (ADHFP) is driven by my belief that the African continent will continue to carry the painful and shameful burden of high disease mortality long after the rest of the world has overcome such challenges unless we address the poor state of healthcare systems at the primary level. The goal is to establish a chain of Primary Healthcare Centers (PHCs), across Nigeria’s 774 Local Government Areas and apply market-based reforms to provide lowcost health services at decent standards to the poor and vulnerable. We expect to complete the Program design phase by Q3 2020 and commence pilots before the end of the year. The ADHFP is a multi-impact initiative with several benefits includes the reduction in maternal and infant mortality rates, creating platform for employment opportunities in the sector, enhancing entrepreneurship opportunities and health-focused start-ups, improved public sector accountability, female gender empowerment, increased uptake of micro-health insurance as well as successful health policy reforms.
What informed the setting up of the ADHFP and why now? How did the C19 pandemic influence this decision? To what extent can we say that the outbreak of Covis-19 pandemic influenced the decision and what is likely to change within the African health sector as a result of this initiative?
The ADHFP was conceived early in 2019 well before I had ever heard of the word ‘Coronavirus’. Interestingly, whilst championing the Global Citizens global goal live campaign in Davos this January, I made the case that it is unacceptable for Africa to continue suffering the effects of pandemics like HIV Aids and Malaria long after the rest of the world has put them to bed. I said Nigerians and other stakeholders must launch a movement to revive our ailing healthcare sector starting by fixing the 80% of our 30,000 primary health care facilities, which are currently comatose. COVID-19 is a burning platform for change and reform in Africa’s health sector.
With COVID-19 beaming spotlight on the weaknesses and inadequacies of our health system, the pandemic has simply reinforced, with devastating effect, the reasons ADHFP was conceptualized in the first place. As the Pandemic spreads, it has become evident to Nigerians that our primary health system must be fixed with urgency; otherwise our people will continue to die needlessly.
Why a private sector led initiative? What is the business case/value proposition for ‘Angels’ to adopt one or more PHCs, how would you rate the quality of feedback and to what extent would you say promoting such an idea in the midst of the pandemic will impact the quality of responses?
The government’s track record on annual health spending falls far short of the 15% Abuja Declaration to address the heavy burden of HIV, AIDS, TB and Malaria agreed upon by African Heads of State in 2001. Revenue challenges due to global commodity prices as well as poor governance and corruption have also constrained what is spent on health by the government. Funding must come from other sources such as foreign assistance and the Private sector. But beyond funding, Nigeria’s primary health sector is largely the responsibility of the Local Government tier of government, which suffers from weak capacity, poor governance, and an absence of accountability.
So beyond funding, we will continue to perform abysmally at the primary healthcare level without the involvement of capable and engaged citizens in the running and administration of our primary health system, hence the need for Private Sector organized participation. The program will be implemented as a Private-sector driven initiative. ADHFP will be sponsored by Angel Investors who could be individuals or institutions. Each “Angel” will take responsibility for one or more PHCs. They will build and operate the PHCs for the period of adoption under strict rules and guidelines. Serious work is ongoing to make this vision a reality.
The work is led by the Private Sector Health Alliance of Nigeria (PSHAN) founded by Aliko Dangote, Jim Ovia, myself and a number of notable organisations who have established themselves as serious actors in the field of Nigerian philanthropy and have rallied to the cause. They include: Global Citizen, Africa Business Coalition for Health (ABCHealth), Bill & Melinda Gates Foundation, United Nations Economic Commission for Africa (UNECA), World Bank, International Finance Corporation (IFC), MTN Nigeria Plc, Dangote Group, Zenith Bank, Access Bank, Stanbic-IBTC Bank, PwC, Cisco, Ford Foundation, Nigerian Stock Exchange, Flying Doctors Nigeria, Africa Practice, Cedar Advisory Partners, GBCHealth, Health Federation of Nigeria, Health Law, Eti-Osa Local Government, JNC International Ltd, Johnson & Johnson, Justice in Healthcare, Lagos State Government, MSD for Mothers, Nigeria Economic Summit Group (NESG), ONE Campaign, PharmAccess Foundation, Women-At-Risk International Foundation as well as the SSA to the President on Sustainable Development Goals among others.
What is your vision for the sustainability of these programs beyond the ‘period of adoption’ by Angels? How will these fit within the current MOH system?
Whilst private sector players have a visible role to play in healthcare delivery, healthcare provision in Nigeria is a concurrent responsibility of the nation’s 3 tiers of government. Since the PHCs are integrated into Nigeria’s political system, a proper understanding of the system and safe navigation though its actors are prerequisites for success. It is essential to remain clear-sighted about the limitations to private sector championed public reforms. Without government champions, health sector reforms will fail. We will work with actors at various levels of Government, particularly at the State level, where the leverage for reform is greatest and the spending will take place. Reform champions in government should be identified and engaged vigorously at the levels of Local Government Chairpersons, the Nigerian Governors’ Forum, Federal and State Ministries of Health, the National Assembly and the Presidency to advocate for increased political commitment to executing changes and facilitating effective Primary Care delivery. To ensure that ADHFP fits seamlessly into Nigeria’s legal system, our design phase incorporates a thorough evaluation of the regulatory, institutional, and legal landscape to identify regulations, legislation and on-going reforms that will support or hinder the implementation of the ADHFP.
What are some of the challenges you are anticipating and how are you planning to mitigate those? Do you see this as a replicable model for other African countries?
The ADHFP is a ground-breaking, innovative, private sector driven initiative, but there are a number of risks and challenges associated with its development and implementation. At the moment, the most significant risk is the on-going COVID-19 pandemic, with attendant effects arising from restrictions in movement, risks to life and the damage to the Nigerian economy.
Fortunately, a number of tried and tested business continuity strategies have emerged that we can apply to mitigate pandemic risks. Another key risk to be mitigated is the possible loss of enthusiasm by ADHFP sponsors, donors and implementing partners. These are mission critical stakeholders whose interest must be sustained through the highs and lows of reform implementation. Great reliance will be placed on our ability to engage the hearts and minds of donors and implementing partners. Adopting best practices in project management, getting some quick wins and successful delivery of program objectives will go a long way to ensuring that our Angels stay the course. Another risk is misinformation about the ADHFP.
To mitigate this, an effective Communication Strategy will be developed to ensure PHC host communities are carried along. In addition, Traditional institutions, Civil society and the Media will be carried along through traditional and technology enabled channels. Extensive stakeholder consultations with both current and past actors at State and Local Government level is also ongoing with the purposeful intent of getting them to support ADHFP. Once we have demonstrated that we can effectively manage these risks, I am quite confident that ADHFP will become a model of reference for strengthening primary health care delivery across Nigeria. Indeed, through the Africa Business Coalition for Health (ABCHealth), it is our intention that the initiative will become a flagship community health development strategy in Africa.
Your legacy includes building and strengthening the financial and capital markets across Africa. Is reimagining the healthcare system the missing piece on the way to a more prosperous Nigeria?
Thank you for your generous compliments. There are many missing pieces required to solve the Nigerian puzzle and I don’t claim to be able to provide answers to all of them. I only try to answer some of them using whatever time and resources the Almighty God has gifted to me.
What’s your call to action?
It takes Leadership for a community to reach its full potential. I know that each of Nigeria’s 774 local government areas is blessed with citizens who have the capacity to transform the quality of primary health care available to their people.
What are we waiting for?
Let’s join forces and become partners in the business of saving lives!
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 workplace and the education sector can now create new, sustainable models which are accessible, inclusive and qualitative writes Opeoluwa Runsewe
It is no news that the outbreak and proliferation of Covid-19 have had some of the most acute implications on global economies in recent times; the vast majority of private and public institutions have been put on edge and are being forced to mitigate these unforeseen contingencies by adopting the swiftest and most dynamic mechanisms.
Opeoluwa Runsewe is Executive Director at Ojar Foundation
Gradually, the virus has spread to 188 countries, with it’s ramifications cutting across all demographics. According to verified data by John Hopkins University in the United States, as at July 16th 2020, more than 13.5 million cases and 584,000 deaths had been reported; Schools, businesses and airports have been closed, restrictions on movement and large gatherings have been enforced, and one too many businesses have been obligated to urgently close shop regardless of the concerted effort by governments and health care professionals to curtail the rate of infection. However, it remains largely uncertain and highly debatable as to whether the recently imposed restrictive measures will be totally terminated in a bid to ensure that economic activities can imminently reach full potential. According to the IMF, the global economy will shrink by 3% this year; in what is described as the worst decline since the Great Depression of the 1930s.
The effects of restrictions on countries expectedly differ. The availability of universal healthcare, digital devices, access to data, digitalization of systems and processes, good and affordable broadband internet service, financial inclusion, social prosperity and other proactive measures have been consequential in countries that appear to attenuate the enormous economic impact. For instance, the central banks of several countries have successfully slashed interest rates alongside other Fiscal and monetary policies, all in an effort to encourage borrowing and spending. These measures have however proven to be some of the most feasible ways to theoretically boost their respective economies. The UK, Germany, Italy and France are some of the countries that have furloughed government-supported job retention schemes extended to the millions of people that constitute their work-forces.
However, the impacts of Covid-19 join a long list of factors that expose Africa’s perceived economic backwardness; evidently prompted by some of the earlier mentioned infrastructure either lying in poor state, being totally dormant, lagging behind on up-to-date trends or being summarily unavailable to majority of the working population. In turn, this constricts the capacity to remain productive, keep businesses running and ensure optimal revenue generation.
With more than 590,000 confirmed cases in all African countries as at July 17th 2020, the pandemic has undoubtedly caused significant social and economic disruption. African countries have been propelled to impose various preventive and containment measures; South Africa, Rwanda, Tunisia and the Democratic Republic of Congo constitute some of the countries that announced complete lockdowns. Governments, through their machineries and the media, have urged residents to stay home and distant, all in order to limit person-to-person transmission.
Many employers across the continent have therefore transitioned to telecommuting; permitting employees to work from home or outside their traditional workspaces, and using video conferencing platforms to conduct staff and client meetings. These employers are also adopting technological solutions that enable them shift the bulk of their operations online.
With the exemption of a few essential service providers, most organizations swiftly directed members of staff in various locations to work from home. Ringier One Africa Media (ROAM), a media company with operations in eight Sub-Saharan African countries is one of those organizations. On 24th March 2020, it signaled its readiness to adjust by announcing that it required its 400 employees to work remotely, as part of its efforts to protect them from the widespread of the virus.
Organizations are also taking advantage of Africa’s booming digital space to convene virtual management and shareholder meetings, in order to maintain the standard procedures required for effective decision-making and corporate governance. United Bank for Africa Plc (UBA) is a Pan-African financial institution offering bank services to more than twenty million customers, across 1,000 business offices and customer touchpoints, in 20 African countries. On April 29th 2020, UBA held its first virtual Annual General Meeting. In attendance were representatives of relevant regulatory bodies, shareholders, management and staff of the organization. Similar industry leaders like Zenith Bank and Standard Bank Group Plc have since followed suit.
Finally, businesses have adopted strategies that have allowed both staff and customers to smoothly transition from routine cash payments to online transactions. Paga, a mobile money organization with 500 employees and a presence in two African countries is one of such. On 24th March 2020, it announced strategies to reduce cash handling, in order to slow the spread of Covid-19 and adjusted its fees in such a way that merchants can accept payment with its platform without incurring any charges.
Covid-19 has also had its enormous implications in the education sector. UNESCO says that 9.8 million African students are experiencing acute interruptions in their education, and this undoubtedly raises pressing concern.
In Nigeria, a few state governments (e.g. Ogun, Kwara and Lagos) have made provisions for continued learning via local television and radio. That is, following the indefinite closure of schools, as declared on 19th March 2020 by the Federal Government of Nigeria. This is also the case in Ivory Coast and Botswana, with both operating similar models all aimed at bridging this threatening gap. In Ghana, the University of Ghana conducts online classes and has since negotiated free internet data with indigenous telecom companies.
In Rwanda, South Africa, and Tunisia, universities have partnered with governments and internet service providers to avail students across the various institutions free access to select educational websites. In March, Eneza education partnered with Safaricom Plc to deliver free revision material to Kenyan students for 60 days; OJAR foundation, an NGO committed to the capacity development of young innovators, and African digital education leaders, Sapphital partnered to deliver an initiative dubbed ‘E-learning4impact’ which provides free access to an impressive catalogue of specially curated courses for young African across different disciplines. Private organizations and NGOs have adopted similar strategies in Egypt, Libya, Liberia, Tunisia, Morocco, Nigeria and South Africa.
While ‘Work From Home’ (WFH) and ‘Learning Never Stops’ strategies are admirable, their plausibility raises important questions. That is, against a backdrop of twin challenges – power supply and internet access. In Africa, these are effectively crippling the digital solutions and other digitalized measures aimed at taking the edge of the effects of the virus.
While the rate of global access to electricity is 87 percent, the rate in Africa is a sultry 43 percent. Residents in African countries like Chad, Mozambique, Rwanda, Tanzania and Uganda suffer epileptic power supplies. In addition, going online presents complications in an Africa where only 24% of the population have access to internet. Related problems include poor connectivity and exorbitant costs. Getting online is expensive for majority of the populace, reports suggest that purchasing a mobile phone and 500MB worth of internet data cost an average 10 percent of monthly income.
Notably, Transsion Holdings, an Asian company, produces mobile phone brands like Techno, Infinix and Itel, specifically tailored to be hybrid option; providing top-notch features and at the same time, relatively low-cost. Africans also purchase previously owned phones flooding the markets from various parts of the world hence considerably reducing the cost of mobile phone purchase amid the barely existent credit or installment payment options. Yet, a vast majority of African telecom service providers do not offer the high-speed internet access and affordable data packages to facilitate the necessary adoption of telecommuting, easy digital transactions, etc.
In usual African fashion; thriving amid long-existing turbulence, Africa is experiencing fast growth in it’s digital space. There is visible increase in tech-enabled businesses in Africa. Notably, mobile technology in Africa is its fastest growing market. 70% of the world is already connected via mobile with Africa experiencing the fastest growth in this respect. PwC reports that between 2007 – 2016, mobile phone usage in Africa increased by 344%. Mobile broadband is accessible to two-third of the population and has hugely contributed to the continent’s socio-economic development by affording digital and financial inclusion.
Importantly, mobile phones have afforded small businesses the means to participate in e-commerce. Nigeria’s e-commerce sector is Africa’s largest, valued at $13 billion. Meanwhile, WhatsApp is a free mobile app used by millions of Nigerians. Small businesses have become smart; using WhatsApp to build strong consumer relationships, increase market share and, to boost revenue generation.
The challenges in Africa’s digital space, as unveiled by the pandemic, have been percieved to be slowing down the expected utilization of technology on the continent. However, the present awareness of these problems present endless opportunities, and should become an important launch pad for innovation in infrastructure and the digital marketplace. The workplace and the education sector, for instance, can now create new, sustainable models which are accessible, inclusive and qualitative
Opeoluwa Runsewe is Executive Director at Ojar Foundation
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
Competition is getting hotter for fintech startups across West Africa as Orange, a major player in telecommunications in Africa and the Middle East, and NSIA, leader in bancassurance, have announced the launch of Orange Bank Africa’s commercial activities across West Africa, with the pilot project starting in Abidjan, Côte d’Ivoire. Orange Bank Africa, headed by Jean-Louis Menann-Kouamé, aims to offer customers a simple credit and savings offer that is accessible at any time from their mobile.
Stéphane Richard, Chairman and CEO of Orange
“New technologies are needed to strengthen financial inclusion and support economic development, as mobile money has proven in recent years. Banking activity is new for Orange in Africa. It is fully consistent with our strategy as a multi-service operator and our desire to drive the continent’s digital transformation. Thanks to our association with NSIA, another African market leader, we facilitate access to banking services to as many people as possible, through simple and essential services, for the benefit of all our customers,” Stéphane Richard, Chairman and CEO of Orange said.
Here Is What You Need To Know
The latest move by Orange in mobile financial services in Africa aims to offer solutions accessible to as many people as possible regardless of their income level or where they live. Thus, the objective of Orange Bank Africa is to become the benchmark player in financial inclusion in West Africa.
Orange Bank Africa hopes to meet the needs of a large part of the population, often excluded from the traditional banking world, by allowing them to borrow or save small amounts essential for their daily lives.
As soon as it is launched, Orange Bank Africa will offer, through the Orange Money channel, a savings and micro-credit offer allowing customers to borrow from 5,000 FCFA ($8.7) instantly from your mobile.
Orange Bank Africa aims to expand into Senegal, Mali and Burkina Faso. At the heart of financial transactions for several years, Orange Money and digital services have seen their importance reinforced and their adoption accelerated in times of health crisis.
“I am very happy that the partnership concluded between Orange and NSIA has given birth to Orange Bank Africa. For 25 years, the NSIA Group has been developing banking and insurance solutions adapted to the needs of African populations with the aim of making them accessible to as many people as possible. We know that banking digitization is a sine qua non for the financial inclusion of our populations. We are therefore proud to have been able to combine our expertise and human capital with those of Orange for the creation of the 100% digital bank Orange Bank Africa,” Jean Kacou Diagou, President of the NSIA group said.
France Telecom-Orange: A French giant’s Pan African footprint. Source:Orange.com
Orange is one of the main telecommunications operators in the world, with a turnover of 42 billion euros in 2019 and 145,000 employees as of March 31, 2020, including 85,000 in France. The Group served 253 million customers as of March 31, 2020, including 208 million mobile customers, 21 million fixed broadband customers. The Group is present in 26 countries. Orange is also one of the world leaders in telecommunications services to multinational companies under the Orange Business Services brand. In December 2019, the Group presented its new strategic plan “Engage 2025” which, guided by social and environmental exemplarity, aims to reinvent its profession of operator. While accelerating in areas and areas with growth potential and by placing data and AI at the heart of its innovation model, the Group intends to be an attractive and responsible employer, adapted to emerging businesses.Orange is listed on Euronext Paris (symbol ORA) and on the New York Stock Exchange (symbol ORAN). For more information (on the web and on your mobile): www.orange.com,www.orange-business.com or to follow us on Twitter: @ presseorange.Orange and any other Orange product or service mentioned in this press release are trademarks owned by Orange or Orange Brand Services Limited.
About NSIA
The NSIA Group is a financial services group that integrates banking and insurance products and services. The NSIA Group is made up of 3 banks, 3 bank branches, 21 insurance companies, 1 management and inter-mediation company (SGI), 1 UCITS management company, 1 real estate company, 1 reinsurance brokerage company, and 1 Foundation. It has nearly 3,000 employees.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer.
The Algerian economy is passing through its worst in recent times, especially as the country’s over dependence on petroleum is beginning to tell with the crash in commodity prices. Algeria’s oil and gas industry is expected to plummet by $10 billion in revenue this year compared to 2019. The crash in energy revenue will send shockwaves through Algeria’s already precarious economy so says the country’s Energy Minister Abdelmajid Attar who added that he expects oil revenue to fall to $23 billion in 2020, a 30.3% decrease from $33 billion in 2019.
Energy Minister Abdelmajid Attar
“We are in a difficult economic situation,” Attar admitted, warning that Algeria’s oil and gas industry which is the cornerstone of the country’s economy could be negatively impacted with the crash in energy revenue could devastate the already financially struggling country. Attar however, reassured that the government is working on legislation to implement the energy law Algeria passed in November 2019. He said foreign investors may be waiting for the legislation to be formalized before deciding to invest in Algeria.“Foreign firms are welcome to work with (Algerian state energy company) Sonatrach on these fields,” he added.
The recent crash in Algerian oil and gas revenue is another blow to the country’s embattled energy sector. In 2014, oil and gas revenue in the country had reached $60 billion, plummeting to hit only $33 billion last year.In early May, Algerian President Abdelmajid Tebboune announced plans to cut the national budget by 50% in a bid to manage the financial crash caused by the COVID-19 lockdown and the global tumble of oil prices.
Algeria was already facing an economic decline before COVID-19 struck hard, with foreign exchange reserves down to $62 billion, compared to $180 billion in 2014, and the global economic dip has left many Algerians struggling to afford basic necessities. Tebboune announced this month that he will reveal the government’s plan to revitalize the Algerian economy “soon.” What the plan will look like, however, remains to be seen as Algeria’s oil and gas industry continues to plummet.
At the start of the COVID-19 pandemic, Tebboune refused point-blank to consider accepting foreign loans. “I personally think that the absence of international debt is a strengthening mechanism amid the COVID-19 crisis,” the president said on May 1, after ruling out using IMF funds to bail out Algeria’s struggling economy.
Algeria is a “free country,” the president underlined. Debts to international actors compromise this freedom, he argued.If Algeria were to accept a loan, the country would “no longer be able to defend causes, like the Palestinian cause and the Western Sahara conflict,” Tebboune emphasized.
However, in a recent u-turn as Algeria’s oil and gas industry hit an all-time low, Tebboune’s government applied for membership of the European Bank for Reconstruction and Development (EBRD). Membership of EBRD includes accepting advisory services as a condition of the funding.The application to join EBRD, alongside the Algerian government’s May 26 changes to Algeria’s iconic 51/49 law on foreign investment suggest that Tebboune and his ministers are now laying aside their pride to look for solutions to Algeria’s failing economy in the international community.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
