News - Afrikan Heroes

Republic of Benin COVID-19 Laboratories Commences Operations With AATB Grant

June 25, 2020

The people of Republic of Benin had their prayers answered with a grant from the Arab Africa Trade Bridges (AATB) Program in response to the COVID-19 crisis, as part of efforts aimed at providing immediate emergency funding to fight against novel coronavirus. The Arab Africa Trade Bridges (AATB) Program, led by the International Islamic Trade Finance Corporation (ITFC) has granted emergency funding to the Republic of Benin to facilitate its COVID-19 ‘Screen-Isolate-Treat’ strategy as it fights to halt the spread of the virus.

This initiative comes in line with the AATB Response to COVID-19 Crisis Plan set by the Executive Committee of the AATB, including the Islamic Development Bank (IsDB), the International Islamic Trade Finance Corporation (ITFC), the Arab Bank for Economic Development in Africa (BADEA), the Africa Export-Import Bank (Afreximbank) and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), at its meeting which was held on April 9, 2020, approved a “Response from the AATB to the COVID-19 crisis ”, in order to strengthen the capacities of member countries to respond to the pandemic and to strengthen the resilience of the health sector in African and Arab countries.

To this end, 17 laboratories will be made operational in all departments and 89 sorting and screening sites (each municipality will have at least one sorting and screening site). Depending on the protocol to be used, rapid diagnostic tests (RDTs) and PCR will be used. The main targets for screening are high-risk, vulnerable and key worker groups, including teachers, school administrative staff, salespersons in schools, truckers and apprentices at land entry points, medical professionals, in addition to forces involved with the fight against COVID-19.

Commenting on ITFC’s financial support to the Republic of Benin, Eng. Hani Salem Sonbol, ITFC CEO, said: “We are working hard with our partners at the Arab-Africa Trade Bridges Program to provide critical life-saving support to our member countries and the hundreds of millions of people in them that need immediate help. In alignment with the IsDB 3Rs Package, ITFC’s support for Benin will help to halt the spread of the virus and save lives.”

AATB is a multi-donor, multi-country and multi-organizations program, aiming to promote and increase trade and investment ﬂows between African and Arab member countries; provide and support trade ﬁnance and export credit insurance; and enhance existing capacity building tools relating to trade. The program specifically focuses on the key sectors of agriculture and related industries including textiles; health industry including pharmaceuticals; infrastructure and transport; and petrochemicals, construction material and technology.

The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC Member Countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided more than US$51 billion to OIC Member Countries, making it the leading provider of trade solutions for the Member Countries’ needs. With a mission to become a catalyst for trade development for OIC Member Countries and beyond, the Corporation helps entities in Member Countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global 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

Plentywaka Ventures Into Logistics

Mr Johnny Enagwolor, Managing director Plentywaka

The changing face of the supply chain industry due to the disruptions occasioned by the Covid-19 pandemic has forced businesses to make adjustments and venture into areas outside their original core. One of such examples is the recent announcement by Nigeria’s highly innovative transport startup, Plentywaka which is a Bus-booking platform that it is expanding by adding a logistics arm to its business. According to company sources, this new unit will serve consumers directly while providing same-day service. Although it’s foremost a bus-hailing platform, there will be a range of vehicles, from trucks to bikes, to be used for the logistics arm.

The bus-hailing platform launched September last year as a portfolio company under CrowdyVest Holdings which also includes Farmcrowdy and Crowdyvest unfortunately coincided with the infamous Okada ban by the Lagos state government, Plentywaka hit new heights. It claimed to record a 61% increase in app downloads, a 34% increase in ride bookings, and 50% growth in the number of daily riders since the ban took effect. Mr Johnny Enagwolor, Managing director noted that PlentyWaka had done over 100,000 rides across 7 routes in Lagos. On both Android and iOS app stores, the PlentyWaka mobile app had more than 35,000 downloads.

Simultaneously, it also faced regulatory challenges from the state government as being a part of ride-hailing companies. Despite that, Enagwolor said Plentywaka had the full backing of the government and was looking to strike valuable partnerships and key into the state’s mega city plan. “Unlike okadas and kekes, the government is in support of what we are doing because it is in line with the state’s mega city plan,” he added.

As the pandemic struck, the company started diversifying its offerings. Last month, it launched its Staff Bus Solutions to ensure a safer commute of staff from pickup point to their destination. With the launch of its logistics arm, Plentywaka is taking things up a notch. According to Enagwolor, the company is working with different partners to make this as seamless as possible.

In January, the company introduced Plentywaka Vehicle Partnerships to onboard more buses. It will likely use the same medium to onboard other vehicles since logistics can’t survive on buses only.The last three months have seen different companies make slight changes in operations by offering logistics services. With the crowded space heating up, it would be fascinating to see how the CrowdyVest Holdings’ portfolio company fares.

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

FNB Partners UnionPay for Contactless Payments

June 24, 2020

One of South Africa’s biggest financial institutions, First National Bank (FNB) is collaborating with UnionPay International (UPI) to set up a mechanism that will allow UnionPay cardholders to make contactless payments with their cards via FNB Speedpoint terminals at merchants across South Africa. This highly innovative partnership marks the first time a South African bank has accepted contactless transactions made with UnionPay cards, providing customers with a safer and smoother payment experience.

“FNB has a diverse contactless payments ecosystem from a card acceptance and payments perspective. We have seen significant growth in the acceptance of contactless card payments as more consumers adopt safer payment and shopping habits. Adding UnionPay to our platform will certainly elevate this trend,” says Thokozani Dlamini, FNB Merchant Services CEO.

According to research conducted by global tech market advisory firm, ABI Research, globally contactless adoption will increase between 6% and 8% when compared to pre-COVID-19 expectations. One of the main reasons is that contactless card payments require a lot less contact with Point of Sale devices, thereby minimising exposure to the virus. Contactless payments have been trending as a safer method of payment since the outbreak of the coronavirus globally.

Speaking on the development, Luping Zhang, GM at UnionPay International Africa says, “we encourage UnionPay cardholders to use contactless payments especially during this challenging time. We take our responsibility to ensure a safe, simple and smooth payment experience to our cardholders to minimize the impact of the pandemic on their daily life.”

At present, UnionPay cards are widely accepted in South Africa in all sectors, effectively meeting the diverse purchasing needs of UnionPay cardholders living and visiting South Africa. In recent years, UPI has expanded its acceptance network to 178 countries and regions, and more than 8.4 billion UnionPay cards issued in 61 countries and regions. In Africa, UnionPay cards have been issued in over 10 African countries, including South Africa, Mauritius, Seychelles, Madagascar, Ghana and Kenya.

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

African Countries Should Not Demand for Debt Cancellation—-Ecobank CEO

The Chief Executive Officer of Ecobank Transnational International (ETI) has warned that calls for debt cancelation by some African countries in the wake of the covid-19 spread across the continent may come to haunt the continent if acceded to by the creditors. Adding that the idea of African countries seeking debt cancellation from multilateral institutions, bilateral lenders, and international financial organizations will backfire.

Ade Ayeyemi speaking recently said that canceling the debt of heavily indebted African countries would only come back to haunt them. “Forgiveness is not helpful because your debt is somebody else’s savings. When you go to the market to borrow money, the market is looking at your current and past behavior.”This view was also corroborated by the Chief Executive Officer of Kenya’s largest bank, Equity Group Holdings, James Mwangi, who said that forgiveness was a form of default, which distorted markets. He pointed out that the call for debt forgiveness was one area where the continent should be conscious of the unintended consequences.

It can be recalled that in April, African Finance ministers asked for debt relief from multilateral Institutions like the International Monetary Fund, World Bank and the European Union amid the coronavirus crisis. The African countries who asked for immediate relief from debt service obligations from these multilateral institutions including the G20, canvassed for a portion of their debt to be forgiven or converted into long term, low interest loans. This is to help free up funds for the more than 50 poor African countries to deal with the coronavirus pandemic.

It could be recalled that China, to exempt some African countries from repaying their interest-free loans that are due at the end of 2020. It also expressed its willingness to provide further support, including loan maturing extensions, to free up funds needed to deal with the pandemic.

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

Facebook Supports Small And Medium-size African Businesses

Facebook is offering African businesses business support programs, available virtually from June 23, 2020. They will include 90-minute instructor-led live webinar sessions, with presentations, demonstrations, lectures and discussions virtual

THESE SPECIALLY DESIGNED PROGRAMS WILL PROVIDE ESSENTIAL SUPPORT AND ADVICE TO SMES SEEKING TO ESTABLISH AND DEVELOP THEIR BUSINESSES

Facebook’s economic impact programs include Boost With Facebook, currently implemented in 11 African countries and targeting more than 41,000 small businesses; SheMeansBusiness available in Nigeria, South Africa and Senegal which reaches 7,500 participants, Digify Pro offered in Nigeria, Kenya and South Africa which has 230 participants and the Aspiring Entrepreneurs program which has 360 participants in Nigeria.

These programs, available virtually from June 23, 2020, will include 90-minute instructor-led live webinar sessions, with presentations, demonstrations, lectures and virtual discussions.

As part of this program, Facebook / Instagram Live sessions will also be held, which will highlight business leaders, entrepreneurs and start-ups who will give seminars and conferences on various subjects, the trainers also offering “hours”. desktop “to answer questions from attendees.

Phil Oduor, Program Manager for Economic Impact and Digital Literacy at Facebook said: “We know that businesses across the continent, especially small businesses, face unexpected challenges. These specially designed programs will provide essential support and advice for SMEs looking to establish and develop their businesses “

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.

Call Centres to Deploy Artificial Intelligence in Transforming Customer Service Industry

June 23, 2020

If efforts by a South African startup go according to plan, this might be the end to traditional call centres as Voyc is deploying Artificial Intelligence (AI) to remodel how companies engage clients via customer service. This new programmes is expected to help organizations communicate the highest value possible to customers at the least cost, while complying with regulatory requirements. Voyc claims that it has a solution that applies machine learning to analyze all calls, checking for key phrases and highlighting insights from agent-customer conversations.

Speaking on the innovation, Voyc’s CEO Matthew Westaway said that “we want to ensure that companies and their customers are treated fairly, by getting through all the calls and making sure nothing slips through the cracks.” Westaway co-founded Voyc in 2018, with the collaboration of Lethabo Motsoaledi who is Voyc’s CTO, while they were engineering students at the University of Cape Town. He said that the idea for the startup came while both worked on an initial market research endeavour that required them to deliver insights to companies based on audio interviews with customers. He pointed out that a bank could, for example, engage 50 agents a month who make thousands of calls, but only a sample of these calls are analysed for quality assurance. The analysis is often manual and, for long calls, could be tedious. With Voyc, this is cut down to the barest minimum of time, helping organizations analyse feedbacks and improve services.

Presently, insurance is Voyc’s biggest client segment due to the regulatory pressure on companies to treat customers well, and the risk companies are exposed to from prospective/active customers who may sometimes not be truthful about pre-existing conditions or claims. But Westaway believes his service applies beyond insurance as there are quality assurance needs wherever call centres are used for telemarketing. The issue of audio transcription according to Westaway is not rocket science for many tech savvy people in 2020. There are a number of apps that are able to capture text from voice – though the range of functionalities remains possible for mostly European languages, and success varies.

The broad family of voice-to-text platforms, which includes apps like Google Translate, operate based on Natural Language Processing (NLP) principles of artificial intelligence. The same architecture underlies Voyc’s promise to “achieve expert insights infinitely faster than the manual qualitative research process.” With 100% of calls analyzed, companies have the evidence-based resources to improve the quality of their call agents and telemarketers, Westaway says. The algorithm on which this work is the identification of keywords and topics that should accompany certain calls and run quality checks based on the frequency of use by agents, as well as tone of voice. This is called sentiment analysis in NLP parlance and is an increasingly popular analytical tool among digital marketers.

Voyc, which is a web-based platform, scores each agent’s calls and where a company chooses to integrate scripts, scores are partly based on conformity to the scripts. You could, for example, search a call’s transcript to find out how an agent responded when a customer asked to speak to the manager. In essence, call centre and customer service personnel are trained through a data-driven process to become more emotionally intelligent, or to more firmly stick to the company line.

Westaway and Motsoaledi initially tried to pitch Voyc as a product for improving market research processes by providing data on audio interviews. But the low frequency of interviews even at market research agencies meant scale would be limited. They pivoted to the call centre market after participating in a Techstars programme in Germany. After a tour of accelerator programmes last year including Google’s ‘London Immersion’ (where PiggyVest, 54Gene, and PayGo Energy also featured), Voyc has doubled down on the insurance market as the sector most likely to need its services at scale.

Since beginning full operations in 2018, all of Voyc’s current clients have been in South Africa where there are about 500 companies in the sector and the insurance penetration rate was 16.99% (as of 2017). One of such clients is a company that sells travel insurance to four South African banks, among them Standard Bank, Africa’s largest lender by assets. But a 500-company addressable market in one of Africa’s top-three largest economies is hardly large. When you account for the fact that small companies may not find it operationally necessary or financially prudent to outsource quality assurance, the market does appear small.

Voyc is presently looking beyond Africa for other clients and is currently exploring the UK market, after which they hope to enter the US. Their Africa strategy is to pitch their service to telcos and they have begun trials with at least one customer experience company, Westaway says.But there is a labour cost reality to Westaway’s focus away from Africa: it is relatively cheaper to hire people to listen to and review calls for quality assurance in Africa than in the UK or US. It would be difficult to be price competitive in Africa, he says.Two years in, Voyc says they have analyzed 1.4 million minutes of calls for clients. Though founded by Africans and piloted in Africa, it might just be a product a little ahead of its time. But there is value in there and if the encouraging post-COVID fortunes of Nigeria’s insurance market is a signal, Westaway and co may find a breakthrough here while prospecting for greener landscapes.

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 is Raising a Generation of Women in Tech– Doroba

Hendrina C. Doroba, Manager in the Education, Human Capital and Employment

Rwanda has always nursed the ambition of being special in Africa. After its internecine war that led to the death of over 800,000 people, like the legendary Phoenix, Rwandan rose from the ashes of destruction to become Africa’s model country in virtually every sector of development. Aside from creating Africa’s tech hub, Rwanda which occupies the third position in Africa’s startup ranking is working to use its commendable achievements in gender to launch women into the tech industry.In 2020, Rwanda was the only African country ranked in the top 10 of the World Economic Forum’s Global Gender Gap Report. It ranked in the top four in the Report’s political empowerment category, in recognition of the high proportion of Rwandese women lawmakers and ministers. Rwanda, therefore, seemed a natural fit for a 2018 pilot programme of the African Development Bank’s Coding for Employment initiative, with Nigeria, Kenya, the Ivory Coast and Senegal.

***Hendrina C. Doroba, Manager in the Education, Human Capital and Employment***, AfDB

The Coding for Employment flagship programme is establishing 130 ICT centres for excellence in Africa, training 234,000 youths for employability and entrepreneurship to create over 9 million jobs. In this interview with Hendrina C. Doroba, Manager in the Education, Human Capital and Employment Division at the Bank, explains how Rwanda is empowering women in technology.

How has the government of Rwanda enabled women to pursue careers in technology, and STEM in general?

Rwanda’s government has been a foremost champion of women in ICT and in the fields of science, technology, engineering and mathematics (STEM), by driving initiatives like the establishment of the Carnegie Mellon University-Africa campus, for which the Bank provided funding. Students from 17 different countries pursue highly specialized ICT skills at the Africa campus. Rwanda’s government has been a foremost champion of women in ICT and in the fields of science, technology, engineering and mathematics.

The country also hosts the African Institute of Mathematics (AIMS) which is now recruiting balanced cohorts of women and men. Lastly, the Bank-funded University of Rwanda College of Science and Technology has for many years produced women leaders in the ICT sector in Rwanda and globally. Its government also supports initiatives such as the Miss Geek Rwanda competition, an initiative of Girls in ICT Rwanda, which aims to encourage school-age girls, even those in remote areas, to develop innovative tech or business ideas and to generally immerse themselves in ICT. The Miss Geek initiative has now been rolled out in other countries in the region.

What role has the Bank played in supporting Rwanda’s digital strategy, especially in relation to women?

The strategy of the Bank’s Coding for Employment centre of excellence in Rwanda has been to join forces with the Rwanda Coding Academy through a grant agreement to support the school’s activities, like ICT equipment, teacher training and career orientation. The Rwanda Coding Academy started in January 2019 and has so far enrolled one cohort, which is now going into their second year. Besides the Rwanda Coding Academy, the Bank’s Coding for Employment programme held a two-day masterclass for girls and young women entrepreneurs at the 2018 Youth Connekt summit, where over 200 beneficiaries were trained in using digital tools to amplify their businesses.

The session was attended by women entrepreneurs as well as students from girl schools in Kigali, including those from White Dove School, which is an all-girl school fully dedicated to training in ICT. The masterclass culminated into pitching exercises from various groups who presented their ideas to a panel of judges.

Paula Igabire, Minister of ICT and Innovation, Rwanda

What lessons can other African countries learn from Rwanda’s approach to the 4IR, in particular the role of women?

The government of Rwanda has been a trailblazer in using innovation to improve public services across the country using the e-governance platform Irembo, to bring government services closer to citizens. In addition, the government is driving national digital skilling campaigns by championing digital ambassador programs and platforms such as Smart Africa, which has organized the annual Transform Africa summit since 2013. Still, gender equality remains a concern, and gender gaps are evident even in schools. Rwanda’s ambitions extend to piloting the Kigali Innovation City, also Bank-funded, to serve as the country’s knowledge and innovation hub by attracting new businesses and incubating ideas.

At the same time, the country has created a business environment which is pro-entrepreneurship and welcomes global inventors to test their ideas and concepts. Zipline, a company which uses drones to deliver medical supplies in remote areas, is one example. Lastly, Rwanda promotes women leaders in the ICT and innovation sector. The country’s Minister of ICT and Innovation is a woman, as is the CEO of the Irembo platform. Appointments such as these are helping to dispel the myth that women are not as capable as men in ICT.

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

European Bank for Reconstruction and Development and NBE Boosts Private Businesses in Egypt

June 22, 2020

With a loan of US$ 100 million in support of SMEs and private businesses in Egypt and an additional US$ 100 million aimed at increasing the current trade finance limit, the European Bank for Reconstruction and Development (EBRD) is supporting the Egyptian Economy with a US$ 200 million financing package through the National Bank of Egypt (NBE) for trade and for on-lending to local companies impacted by the coronavirus pandemic.Under this facility, the EBRD will provide a US$ 100 million loan to help NBE provide short-term loans to private small and medium-sized enterprises and firms facing liquidity strains due to a decrease in their activities and turnover caused by the crisis.

Jurgen Rigterink, EBRD First Vice President

In addition, the Bank is increasing an existing uncommitted trade finance limit for NBE by US$ 100 million under the EBRD’s Trade Facilitation Programme to reach US$ 300 million, to help meet the increased demand for import and export transactions. Jurgen Rigterink, EBRD First Vice President, said: “We are very happy to partner again with NBE to provide financing to local small businesses, the backbone of the economy. Strengthening this segment of the Egyptian economy has never been more important than during this crisis.”

Hisham Okasha, NBE Chairman, said: “NBE is committed to minimising the economic and financial impact of Covid-19 on the Egyptian economy and our customers in particular. This new facility, under the EBRD’s Solidarity Package, targets a crucial segment of the economy, which we will continue to support, thus ensuring its resilience. This facility comes on the heels of an increase of US$ 100 million in our trade finance programme with the EBRD as well as the signing of a package in the amount of US$ 150 million to support young people in business, skills in business and green climate financing.”

In response to the coronavirus pandemic the EBRD now expects to dedicate the entirety of its activities in 2020-21 to combating the economic impact of the crisis and stands ready to provide support worth up to €21 billion over this period in the 38 emerging economies where it invests. NBE is the largest commercial bank in Egypt. Since the cooperation with the EBRD began in 2013, credit and trade finance lines have been signed, including in support of women in business and to strengthen energy efficiency.Egypt is a founding member of the EBRD. Since the start of its operations there in 2012, the Bank has invested close to €6.5 billion in 115 projects in the country.

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

Reaffirmation of Standard & Poor’s AAA Rating of African Development Bank Good for Africa

The role being played by the African Development Bank in mitigating the overall impact of the Covid-19 continent wide seem to have done the magic as rating agency’s pointed to the Bank’s healthy interventions as encouraging. With the reaffirmation of its ‘AAA/A-1+’ long- and short-term issuer credit assessment of the African Development Bank (AfDB) (www.AfDB.org) with a stable outlook. According to experts, the rating agency’s positive assessment of the Bank’s very strong financial risk profile, very strong capital adequacy, strong funding and liquidity, extraordinary shareholder support and adequacy of its governance and management goes a long way to show the potential within the continent.

President of the African Development Bank Akinwumi Adesina

In arriving at the decision to reaffirm its triple A rating, S&P noted the Bank’s $115 billion capital increase, approved by shareholders in October 2019, and the replenishment to the African Development Fund, the Bank’s concessional window, in December 2019. “The stable outlook reflects our expectation that, over the next two years, AfDB will prudently manage its capital while maintaining solid levels of high-quality liquidity assets and robust funding,” S&P Global said in a statement.

S&P expects that “shareholders will remain supportive by providing timely capital payments”; the Bank “will continue benefiting from preferred creditor treatment (PCT); and “prudently manage growth in private-sector lending in a way that’s aligned with its mandate.”

The rating agency’s report further noted that the “AfDB will play a key role supporting the region, particularly in the context of COVID-19. The institution approved an up to $10 billion relief package for 2020, of which $6.9 billion will be financed by AfDB and the remainder through its concessional lending window.”

Responding to the development, the President of the Bank, Akinwumi A. Adesina, said that “we are delighted with and welcome S&P Global’s decision to affirm the Bank’s AAA/A-1+ rating. It reflects the Bank’s very strong financial position and risk management, as well as our sound governance. We will continue to maintain these standards, with the strong support of all our shareholders, as we deliver much needed financial, knowledge and policy support to our regional member countries during and after this period of the COVID-19 pandemic.”

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 Airways Works Out Rescue for the Troubled Airline

June 21, 2020

As part of efforts aimed at rescuing one of Africa’s biggest airlines, the ad-hoc management of the South African Airways has set out a rescue plan on initial fleet and personnel requirements. The resurrection plan would involve an initial restart period of eight months; running to January 2021 says the interim management. Adding that over this period the fleet would be gradually built up to around 26 aircraft, comprising seven long-haul jets – about half of which would be in place at the end of this year – plus nine narrowbodies, and 10 smaller aircraft.

The Airline would have 40% fewer aircraft than it had before entering business rescue last December, when the fleet heavily favoured long-haul types.Reshaping the fleet over the period to January 2021 would enable operations to be revived in accordance with the lifting of lockdown measures, initially covering domestic and regional services before the re-introduction of intercontinental flights.

The proposed route network, set out in the business rescue plan, comprises long-haul services to New York, Washington, London, Frankfurt, and Perth, plus some 20 major cities primarily in Africa, and three domestic links. Under the rescue plan SAA’s long-haul fleet would be heavily reduced.

For the first three months, the plan says, the revived airline would require about 1,000 personnel. “It is anticipated that the final staff number will increase in accordance with the market conditions and passenger demand,” it adds.

During the ramp-up phase, the expanding business will need just under 2,900 employees. “As the operations of SAA stabilise, and eventually increase, it is anticipated that more staff will be required,” says the plan. “On a commercially viable and sustainable basis the company will employ more staff, with a preference being given to former SAA employees subject to competence, skills and suitability.”

SAA previously employed just over 4,700 personnel including 617 pilots with over 1,500 cabin crew. The plan expects a voluntary severance agreement to be concluded through employee consultations, with 1,000 jobs being retained – under new terms and conditions – for the initial start-up. Given the number of employees likely to be retrenched, the severance package will cost about R2.2 billion ($127 million). This will form part of the overall R26.7 billion costs for restarting the airline.

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