News - Afrikan Heroes

Nigeria Gets $288.5 Million as COVID-19 Response Support Program

June 6, 2020

Ebrima Faal, Senior Director for the African Development Bank in Nigeria

To help the Nigerian government mitigate the impact of the slump in oil prices on her economy and also tackle the menace of the Covid-19 pandemic, the African Development Bank has approved a $288.5 million loan to help Nigeria tackle the COVID-19 pandemic and mitigate its impact on people and businesses. The loan will bolster the government’s plans to improve surveillance and response to COVID-19 emergencies, ease the impact on workers and businesses and strengthen the social protection system.

Nigeria, Africa’s most populous nation and the continent’s largest oil producer, is facing twin crises – a health epidemic caused by COVID-19, and an economic crunch largely occasioned by a global oil price plunge. As of June 5, the country reported 11,516 coronavirus cases, 3,535 recoveries and 323 deaths. The loan is the Bank’s initial response to help mitigate the slump in oil prices and its impact on the national economy. About 40.1% of Nigerians live below the poverty line of $1.90 per day and it is feared that the fall in household income during the pandemic will result in wealth deterioration for both the formal and informal sector workers.

“The proposed program will ensure that the fiscal position and the economy are sufficiently supported to weather the COVID-19 shocks, thereby limiting its potential adverse impact on livelihoods and the economy more generally,” Ebrima Faal, Senior Director of the African Development Bank for Nigeria said. Prior to the COVID-19 outbreak, Nigeria’s economy was projected to grow by 2.9% of GDP in 2020 and further expand by 3.3% in 2021. But with the advent of the pandemic and the slump in crude prices, the economy is expected to shrink by between 4.4% under a conservative baseline scenario, and 7.2% should the pandemic persist to end-2020.

Faal said beyond the country’s immediate economic recovery needs, the Bank and other development partners, will dialogue with the government on proposals for medium-term structural reforms to diversify and boost domestic revenues away from the oil sector. The Bank has instituted strong fiduciary measures to monitor the use of COVID-19 funds, and will maintain dialogue, particularly with the Office of the Auditor General in Nigeria, to ensure adherence to the transparency and accountability of the funds, Faal said.

The Bank’s intervention aligns with its COVID-19 Response Facility (CRF); Ten-Year Strategy (2013-2022); and High 5 priorities, especially “Improve the quality of life for the people of Africa”. It is also consistent with the second strategic pillar of the recently approved Bank’s Country Strategy Paper 2020-2024 for Nigeria.

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

Nigeria’s New Five-Year Strategy Gets African Development Bank’s Approval

June 5, 2020

Nigeria’s new Country Strategy Paper (CSP) 2020-2024, which builds on the successes and challenges of the 2013-2019 editions, and incorporates emerging developmental realities and opportunities shaping Nigeria’s political and economic landscape, including in the post-COVID-19 period has been approved by the African Development Bank (AfDB). According to the Senior Director for the African Development Bank in Nigeria Ebrima Faal who reaffirmed the institution’s support for Nigeria’s socio-economic advancement, added that “in the implementation of the CSP, the Bank will also support Nigeria to address economic shocks associated with the COVID-19 pandemic and oil price shocks by focusing our interventions in sectors that will strengthen public health infrastructure and accelerate efforts towards economic transformation and diversification of export earnings and fiscal revenues from oil.”

The 2020-2024 CSP identifies supporting infrastructure development and promoting social inclusion through agribusiness and skills development as key priority areas for Nigeria. These priorities have been selected to leverage Nigeria’s rich endowment of natural and human resources toward transforming the lives of its people. It is in this context that the new CSP has been customized to support government efforts in confronting challenges and to foster long-term, socially inclusive development. Under the CSP, the Bank will deploy a combination of sovereign and non-sovereign financing instruments to support the two priority areas, including investment and institutional support projects, evidence based analytical work in numerous economic sectors, policy dialogue and provision of advisory services. Special focus will be put on supporting the Nigerian private sector, in terms of financing and advisory services, and on Public-Private-Partnership (PPP) initiatives that enable innovative, long-term investment in energy, transport and water and sanitation.

The Strategy Paper is the result of participatory consultations with a range of key stakeholders, both state and non-state actors as well as bilateral and multilateral development partners. The CSP is fully aligned with the Bank’s Ten-Year Strategy, the High 5 priorities and Nigeria’s own Economic Reform and Growth Plan (ERGP), as well as the global Sustainable Development Goals (SDGs). As of December 2019, the Bank Group’s active portfolio in Nigeria comprised 61 operations, with a total commitment of about $5 billion. Of the total active operations, 29 were in the public sector, with a commitment of $2 billion (43%) and 32 non-sovereign operations with a total commitment of $3 billion, equivalent to 57% of the total portfolio.

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

Sexual Harassment Accusations Rock the Nigerian Tech Community

The need to address rising incidents of sexual harassment in Nigeria took a new turn recently as activists and civil rights organizations are busy calling on young women to speak out and share their stories. Presently the Nigeria’s tech community has acknowledged the need to have a serious conversation on sexual harassment within the industry. This became necessary with the current allegation from a lady named Kelechi Udoagwu who was an alumna of the MEST training programme. She is accusing Kendall Ananyi, co-founder and CEO of Tizeti, a popular internet service provider based in Lagos of sexually molesting her during the programme.

Ms. Kelechi Udoagwu who took to her Twitter handle to make the accusations, wrote that the said act happened during the MEST training programme, Udoagwu narrated, Ananyi sexually exposed himself to her begging her to do anything she could do for anything I could do. While she admitted that nothing more happened, and that she never reported the incident. However, she noted that in the evening after the incident, two close friends, both of them males, comforted her and told her “everything will be alright.”

While this may appear vague, and even infuriating to some people, it is a loaded statement. Implicit in it is the recognition of Ananyi’s power and influence in the tech community; a man who felt entitled willing to abuse his access and privileges to exploit women. Ananyi hasn’t denied the allegations and has since locked his Twitter account. Coming at a time when the entire country is grappling with three horrid cases of rape, the allegations against Ananyi has cast a chill over Nigeria’s nascent tech community.

As a male-dominated industry, perhaps we should have understood that something like this was likely. In industries where men are the “traditional” gatekeepers, women tend to be excluded, marginalised or exploited should they try to get in or advance their careers. In Nigeria, sexual harassment is pervasive in industries such as entertainment, government, banking, education – all of which are male-dominated. Interestingly, the tech industry is an agglomeration of professionals from all of these sectors and then some. Available data have been warning us that the Nigerian tech community may be one industry where gatekeepers have excluded and or exploited women. Women in Tech, a report by TechCabal, showed 55.6% of Nigerian female founders say they face gender-related challenges in the industry. Only 33% of the senior management positions in tech and media are occupied by women. In 2016, the ratio of male to female developers in the country was 9:1. And across Africa, only 9% of African female-led startups received funding between 2012 and 2017.

Together, these stats show that women struggle to get access and opportunities; a reality their male counterparts rarely encounter. This exposes them to obnoxious male characters who may try to exploit their situation. “From our findings,” the report noted, “the [Nigerian] tech community is a male-dominated space and pursuing a career in the field of technology is stereotyped to be meant for only men.” As a leader in the tech community, Ananyi is a gatekeeper; just another male gatekeeper making it difficult for women to make progress.

Although his company, Tizeti, has issued a statement and is currently investigating Udoagwu’s allegation, Ananyi is yet to resign. His continued stay as CEO may influence the outcome of that investigation, possibly making it a waste of time. Regardless, this is an important time for introspection, especially among male tech leaders. Victims of sexual harassment should not always speak up first. 65% of women studying STEM-related courses are doing so because of their passion. This passion will only last if there are tech companies with the right atmosphere for women.

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

Rise in Domestic Investors for African Equity Capital Markets

June 4, 2020

Andrew Nevin, PwC Nigeria’s Chief Economist

Even with a downward spiral in the African equity capital markets there seem to be a rise in the number of domestic investors within the market. This was made known yesterday during a webinar hosted by The Making Finance Work for Africa (MFW4A) partnership and PwC Nigeria to explore the impact of COVID-19 on African capital markets using most recent data presented from the PricewaterhouseCoopers (PwC) Nigeria 2019 African Capital Market Watch. The data which reviewed the performance of Africa’s capital markets between 2010 and the first quarter of 2020, shows that African equity capital markets activity has seen a downward trajectory over the past three years as major economies on the continent are faced with fiscal challenges due to growing debt levels and slow economic growth.

The findings show that capital market value in 2019 was the lowest seen over the past decade, with the volume of deals lower only in 2012. African economies now face the unprecedented challenge of the COVID-19 pandemic, which has severely impacted global financial markets, according to Andrew Nevin, PwC Nigeria’s Chief Economist, and Alice Tomdio, the firm’s Director Capital Markets, who presented the data. Commenting on the data and the potential impact of the COVID pandemic, Geoffrey Odundo, CEO of the Nairobi Securities Exchange said: “Capital markets in East Africa have taken a hit, with a 20% decrease in trading volume since the beginning of COVID-19”, adding that on the positive side, there was increased activity from domestic investors.

Daniel Ogbarmey Tetteh, Director-General, Securities and Exchange Commission (SEC), Ghana, said that market activity on the Ghana stock market had remained robust, with an almost threefold increase in trading volumes between January and April 2020, compared to the same period in 2019. Again, a good proportion of these trades originated from domestic investors.

Speakers also stressed the important role of African capital markets in supporting the post-COVID recovery. For this to happen, African markets need to be deepened and provide avenues for investment of the significant pools of local capital currently tied up in “dead” assets. Expanding the range of available asset classes should also include measures to attract and support new listings. The panel agreed that the increased engagement of local investors in the current environment was a positive sign, and that developing a deep pool of domestic investors is essential for African capital markets to play their full role in supporting the post-COVID economic recovery.

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

Nigerian, Kenyan Entrepreneurs Win This Year’s Hardware-Focused Social Innovation Accelerator

ASME’s Executive Director and Chief Executive Officer Tom Costabile

The first ASME Innovation Showcase hosted by the American Society of Mechanical Engineers (ASME) international accelerator of hardware-led social innovation project has seen entrepreneurs from Nigeria and Kenya come out tops to clinch the prizes. The Kenyan and Nigerian innovations in clean cooking, feminine hygiene and medical diagnostics won US$30,000 in cash funding and technical support at the 2020 ASME ISHOW Kenya Virtual Event. Eight socially-minded teams of inventors from Kenya, Nigeria, and Egypt presented their design prototypes in a virtual event held on May 19-21, with three inventors emerging as regional winners. They will share US$30,000 in seed grants and receive technical support to help bring their design innovations to market.

The winners were Kenya’s Ecobora, which is equipping rural marginalised schools with its patented solar-powered cook stove; Kenya’s Inteco, which focuses on the distribution and supply chain management of donated sanitary pads to adolescent girls in schools; and Nigeria’s MicroFuse Technologies, which has developed a tool that enables users to diagnose and detect cerebral malaria retinopathy with a smartphone while also capturing other individual patient data.

Speaking about the competition, ASME’s Executive Director and Chief Executive Officer Tom Costabile said that “We are proud to offer a forum for engineering problem-solving that truly improves lives,” adding that “we are continually impressed by the creative talent of ASME ISHOW participants and their passion for helping underserved communities around the world.”

In addition to the three grand prize winners, the product with the most votes in social media for each regional event is named the “Fan Favourite,’’ and receives US$1,000. The winner was Nigeria’s Dunamis-Cognitio, which has developed a sustainable, affordable, portable, light weight, thermoelectric generator that harnesses heat energy to generate electricity accessible from a USB power port.

Another finalist team was recognised with a special “Research and Development Award” for its diligence in improving on a previous innovation and developing the next generation of hardware. That was Kenya’s BURN Manufacturing, which builds a forced draft biomass stove that is compatible with pay-as-you-go (PAYG) solar systems.

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

Tunisia To Open Sea, Air and Land Borders On June 27

Tunisia will open its sea, land and air borders on June 27, authorities said on Monday, in hopes of rescuing its tourism industry as the coronavirus pandemic comes under control.
The government said also it will allow movement between cities again from Thursday.
The North African country has recorded 1,070 cases and 48 deaths, with only two people still in hospital.
Tunisia has forecast its economy will shrink up to 4.3% this year, the steepest drop since 1956 independence.
The important tourism sector could lose $1.4 billion and 400,000 jobs this year due to the pandemic.

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.

New Growth Opportunities for African Businesses

June 3, 2020

Small-business owners and young entrepreneurs across Africa stands to benefit from the collaborative efforts between the African Import and Export Bank (Afreximbank) and the International Trade Centre to prepare African businesses to trade with other African countries as part of the new African Continental Free Trade Area (AfCFTA). The programme is being launched as the new free-trade area comes on stream and amid the economic strain of climate change and the coronavirus pandemic.

The training will give business owners the knowledge and skills they need to engage effectively in cross-border trade under terms of the emerging free-trade area for Africa. Intra-African trade is structurally low at 15% (compared to Europe at nearly 70%, for example), and the AfCFTA will open a market of 1.2 billion people. “Against the backdrop of the current COVID-19 health and economic crisis, African micro, small and medium enterprises (MSMEs) need support to take full advantage of the continental market,” ITC acting Executive Director Dorothy Tembo said. “Through this partnership, African businesses will have the opportunity to learn, plan and succeed in growing their business by taking full advantage of the AfCFTA.”

Kanayo Awani, Managing Director of Afreximbank’s Intra-African Trade Initiative, said that the initiative was necessary because increasing intra-African trade through exports of goods and services by small and medium-sized enterprises (SMEs) was the cornerstone of the AFCFTA. “It signals an optimal strategy to aid businesses and develop regional value chains, which have become more relevant with the advent of the COVID-19 pandemic,” she said.“Our joint initiative with ITC is a proactive way to support the implementation of the AfCFTA and to provide SMEs with the tools to respond more effectively to the economic and social challenges presented by the global pandemic,” added Ms. Awani.

The training programme, run via ITC’s popular multilingual SME Trade Academy platform, under the auspices of the Afreximbank Academy (AFRACAD), will be piloted in Nigeria, Rwanda, and Côte d’Ivoire and be launched in close collaboration with trade promotion organizations of the three selected pilot countries. Afreximbank and ITC will work toward increasing opportunities for small-business owners to export and supporting countries to achieve their overall trade goals at the regional, continental and global levels.

In a similar development, the ITC is also partnering with Afreximbank to support South Sudan in increasing its trade competitiveness, boosting its exports through economic diversification and creating investment opportunities through the development of a trade and investment promotion strategy. The promotion strategy will identify several priority sectors with a high potential for trade and increasing job opportunities − especially for women and young people. ITC will work with the country’s ministry of trade, investment agencies and private-sector associations to ensure the strategy provides sustainable solutions for the country’s development.

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

Senegal Tears Up ‘Unbalanced’ Tax Treaty With Mauritius

Senegal, one of West Africa’s largest economies, has torn up its tax treaty with Mauritius as debate rages over the island tax haven’s impact on developing economies. Senegal unilaterally ended its double non-taxation treaty, or DTA, with Mauritius without fanfare earlier this year — and it is only now coming to the attention of tax officials in the region.

“The problem with this tax treaty is that it was unbalanced,” Magueye Boye, a Senegalese tax official told the International Consortium of Investigative Journalists.

Here Is What You Need To Know

Senegal had previously threatened to cancel the treaty if certain conditions were not met. Senegal alleged that the agreement, signed in 2004, had cost the West African nation $257 million in lost tax revenue over 17 years. It is the first time that Senegal has called time on a bilateral tax treaty.
Mauritius’ revenue authority and financial services commission did not respond to ICIJ’s questions.
In July 2019, ICIJ and journalists from 18 countries published Mauritius Leaks, which showed how multinational companies, often aided by major accounting and advisory firms like KPMG, used Mauritius to avoid paying taxes in some of the world’s poorest countries. In the 2018 West Africa Leaks investigation, ICIJ revealed that a Canadian engineering giant avoided paying up to $8.9 million in taxes to Senegal with the help of a shell company in Mauritius.
Senegal’s decision surprised officials across Africa, including some currently renegotiating treaties with the government in Port Louis. ICIJ spoke to officials from Zambia, Lesotho, Uganda and the Republic of Congo who are seeking to modify treaties with Mauritius because the current deals are costing poorer countries millions of dollars in lost tax revenue each year.

“I was not aware of the development,” one negotiator from Lesotho told ICIJ.

One Senegalese official who wished to remain anonymous told ICIJ that it was important to cancel the treaty with Mauritius as soon as possible because recent oil and gas discoveries will bring an influx of investment to the West African nation. Natural resource companies have made wide — and often abusive — use of offshore companies in Mauritius, Senegalese officials told ICIJ.
Senegal’s decision is a rare move in the otherwise staid world of tax treaty negotiations.

“This is a big deal,” said a tax researcher at the Malawi revenue authority who did not have permission to speak publicly. “This tells us that DTAs with Mauritius are milking a lot of other African countries of significant revenue.”

“I have a feeling that this will trigger a wave of similar reactions, especially now that there is a lot more awareness of how African countries are losing out through DTAs with tax havens like Mauritius.”

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

Nigerian Parents Worry Over Dangerous Contents in Their Wards Social Media Accounts

With the stay at home order across the world, many families have been forced to spend time together and this also means spending much time using different Internet connected devices. For clear reasons, children’s growing online activity can cause lots of worries to their parents. In a survey recently conducted by Kaspersky, 25% of Nigerian parents claim that they have come across something in their child’s social media account that seemed suspicious. Elaborating on what it exactly was, they mention groups or public pages they join (56%), posts that they publish or share (50%), people they interact with (31%), video on their page (31%) and private messages (19%).

Maher Yamout, Senior Security Researcher at Kaspersky

What is more, 34% state their child has seen or listened to something that seemed suspicious to them, be that videos (68%), music (43%) or photos (25%). Obviously, this data shows the need to explore the interests of children, to make sure everything is okay or if it is necessary to take action. However, not all the parents realise it – only 19% of them befriend their children via social networks in order to be connected with their kids – sometimes real communication is not enough and the parents have to look carefully at their children’s webpages.

“It gets harder and harder for parents to keep up with the pace of the modern evolving world. They are often left out of the picture as they simply do not catch up with trends that emerge way too fast. However, it is possible to stop this backlog by communicating with your child and ensuring your presence on the Internet – to build trust and a good relationship with your child you have to know what you are talking about with them,” states Maher Yamout, Senior Security Researcher at Kaspersky.

In order to eliminate groundless suspicions about your child’s digital life and to secure their presence on social media, Kaspersky strongly recommends following this advice: Learn more on the topic of children’s cybersecurity: explore modern trends, apps, the way of behaviour that has to be adopted in order to safeguard against dangers (for instance, the basic security rules while on the Internet);communicate with your child and define the boundaries which are not meant to be crossed: discuss with them safe locations both real and webpages; Install a reliable security solution such as Kaspersky Safe Kids (www.Kaspersky.co.za/safe-kids) to monitor your child’s activity successfully.

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

75% Of Kenya’s Small, Medium Businesses May Collapse Before By June — Central Bank Of Kenya

May 29, 2020

At least 75 per cent of SMEs are facing closure by end of June due to lack of funds, CBK governor Patrick Njoroge has said. During a post-MPC briefing on Thursday, he said there is an urgent need to cushion them as they contribute hugely to the country’s employment and GDP.

“I wanted to underscore the urgency of … putting in place the credit guarantee scheme,” central bank Governor Patrick Njoroge told a virtual news conference. “This is extremely urgent. We cannot do this as business as usual.”

Here Is All You Need To Know

On Wednesday, the Monetary Policy Committee retained the base lending rate at seven per cent in its latest review.
Njoroge, who heads the committee, said measures adopted in March and April to cushion the economy from the Covid-19 effects were having the intended effect.
Growth is expected to worsen in the second quarter of the year (April-June), with the imposition of more stringent travel and transport containment measures, particularly in transport and storage, trade, and accommodation and restaurants.
As a result, real GDP growth in 2020 could slow to about 2.3 per cent from 5.4 per cent in 2019, Njoroge said.
On Wednesday, the committee backed the Economic Stimulus Programme announced by government to cushion vulnerable citizens and businesses from the adverse effects of the pandemic and enhance economic activities.
The measures are expected to be implemented expeditiously in 2020–21 financial year and will focus on key sectors including agriculture and food security, tourism, manufacturing, education , health , ICT and MSMEs.
Read also:Kenyan Retail Startup MarketForce Secures $350k In Seed Funding Round

“The MPC concluded the current accommodative monetary policy stance remains appropriate and therefore decided to retain the Central Bank Rate at seven per cent,” Njoroge said.

He said the committee will continue to closely monitor the impact of the policy measures so far as well as developments in the global and domestic economy and stands ready to take additional measures as necessary.
In April, the MPC lowered the CBR from 7.25 per cent in light of the continuing adverse economic outlook.
This was after a reduction to 7.25 per cent from 8.25 per cent in March.

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.