News - Afrikan Heroes

Alomo Bitters Loses US$2m to Nigeria-Benin Border Closure

October 24, 2019

The negative impacts of the continued closure of the Nigeria-Benin borders have continued to reverberate across the West African sub-region as businesses in Ghana and Cote d’Ivoire have started feeling the pains. The latest business to raise alarm over the closure is Kasapreko, Ghana’s largest local beverage manufacturer, which brews Alomo Bitters among other market leading brands. Officials at Kasapreko said that the company has lost about US$2 million in revenue due to the border closure.

According to the Head of International Business Development for the company, Mr. Francis Holly Adzah, this is inspite of the fact that the company was able to send three trucks of products to the Nigerian market moments before the border was closed, saying that four other trucks loaded with products – one at the border and the others at the premises of the manufacturing company – have been left grounded.

Mr. Holly Adzah said that in September, Kasapreko lost US$1 million to the closure and in October which is almost ending, checks from the company’s finance department shows a loss of another million dollars. The situation he said is getting out of hand and very serious.

A market survey carried out by the company shows that its agents and major distributors have exhausted all its products in the Nigerian market – a critical situation which has seen them being overtaken by competitors. The company however said that to mitigate the loss, and hedge against future occurrence, the company is venturing into other ready markets apart from Nigeria to make up for the losses.

According to Mr Holly Adzah, the company is looking at entering Ivory Coast, Senegal, Togo, Benin and other European markets.

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.

Morocco’s Economic Growth to Rise to 3.3 in 2020-2021

MOROCCO’S economic growth is expected to pick up gradually and average 3.3 percent over 2020–2021, mainly driven by more dynamic secondary and tertiary activities, bolstered by high foreign investments, according to IMF forecasts.

Significant FDIs continue to flow into Moroccan automotive industries, especially in the new Peugeot plant – that will eventually double the sector’s production capacity – as well as into logistics and trade services following the expansion of the Tangiers port, say World Bank analysts.

Thanks to sound monetary policy and ample supply of fresh food, inflation is projected to average around 1% over the medium-term while the unemployment rate will slightly decline in 2019.

Morocco’s Non-agricultural growth will improve (3.4%in 2019 compared to 3% in 2018), driven by better performance of phosphates, chemicals, and textiles output.

According to the World Economic Outlook, private consumption will contribute the most to growth, boosted by higher salaries and low inflation. The report also cites the 2020 Budget which is expected to reflect the Government’s commitment to increase social spending financed by expanded efforts to mobilize revenue and controlling some recurrent expenditures. Subsidy policy will continue, especially for LPG (Liquefied petroleum gas) consumption.

Morocco’s current account balance is also expected to gradually improve over the forecast period due to the growth of manufacturing exports – especially automobiles, agribusiness, electronics, and chemicals – and rising tourism receipts, supported by a price easing of the main imported commodities and goods.

But, the government has revised downward Morocco’s economic growth this year. It projects the economy to grow by 2.9% this year after 3% in 2018 as the economy continues to be affected by agricultural output, according to Finance Minister Mohamed Benchaaboun.

Growth however is seen recovering to about 3% in the upcoming two years, according to the World Economic Outlook, just as Standard and Poors rating agency has upgraded Morocco’s outlook from negative to stable citing budgetary measures to control the deficit and reduce spending.

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.

ARMANDO MANUEL OF ANGOLA JOINS WORLD BANK

MR. Armando Manuel, an Angola national, serves as the World Bank Group Alternate Executive Director for Angola, Nigeria, South Africa since November 1, 2018.Prior to this appointment, Mr. Manuel was IMF advisor in Public Finance Management based in Washington DC. He served as Minister of Finance of Angola from 2013 to 2016.

He also held various senior level positions, including Economic Policy Advisor to the President and Chairman of the Angola Sovereign Wealth Fund. At the Ministry of Finance since 1993, he led the Department of Treasury’s Operations in 2003 and lately, in 2006, became the National Director of Treasury. Mr. Manuel lectured economics at the Agostinho Neto University, Catholic University of Angola and Instituto Metropolitano de Angola. He was Fiscal Policy researcher at the CEIC (Center of Studies and Scientific Research owned by Angola Catholic University).

Mr. Manuel graduated in 1996 in economics (BSc) from the Agostinho Neto University in Luanda, Angola, and holds a MSc in economics from London Guildhall University in London in 2001, United Kingdom. In 2014, Mr. Manuel was awarded Finance Minister of the Year by the African Banker Organization.

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.

IMF/WORLD BANK CALLS FOR MORE RESOURCES TO MITIGATE CLIMATE CHANGE

THE launch of the International Platform for Sustainable Finance at the ongoing IMF/World Bank annual meetings marks the beginning of serious efforts at cooperation to pull resources together to fight climate change. Few countries have the means to finance environmentally-friendly development from their budget and therefore there is the need to raise money from the market to grow sustainably according to Valdis Dombrovskis, EU’s Vice President for Social Dialogue. Seven countries comprising Argentina, Canada, Chile, China, India, Kenya and Morocco together banded together to launch the platform.

Valdis Dombrovskis, EU’s Vice President for Social Dialogue.

For Kristalina Georgieva, IMF Managing Director, she is happy the IMF was the place chosen to launch the platform highlighting the importance of green finance in the fight against climate change and achieving the SDGs. Recalling her time at the World Bank where she was part of the team that launched the first green bond in 2008, Georgieva says it is important to develop market instruments that can shift resources to sustainable projects.

“The objective of carbon pricing and tax is to capture finance for sustainable development” she says. About $900 billion has been raised according to her but this represents just 2 percent of total credit outstanding while green bond has raised just $86 billion. Raising sustainable finance from the market, in her view, should be guided the principles of transparency, disclosure, impact and cooperation.

China despite being the workshop of the world is committed to green and sustainable development according Yi Gang, Governor of the Peoples’ Bank of China. China financial market has green instruments that is “evolving in line with the need to change lifestyle and ways of production to reduce carbon emission”.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

AFRICA NEEDS BROADBAND FOR FASTER ECONOMIC GROWTH

THE question of broadband internet infrastructure is at the core of Africa’s overall development. Panellists at the seminar on Connecting Africa Through Broadband which took place on the sidelines of the just concluded IMF/World Bank annual meetings in Washington D.C. USA, contend that the earlier the 54 nations on the continent are able to cue into the universal trend, the faster the pace of development of Africa.

With experts drawn from different fields and countries, the importance of broadband internet accessibility to Africans was dissected and projected as the panacea to its advancement in health, education, and technology.

One of the panellists, Aurelie Adam Soule Zoumarou, Benin Republic’s Minister of Digital Technology, said that though her country is a small, it is propelled by a monumental vision to work towards digitalisation. She was optimistic that with the determination of the people and the unflinching support of the country’s policy makers, it’s just a matter of time before a functional broadband infrastructure becomes a reality in Benin Republic.

The discussants were inspired by a report titled: Connecting Africa through Broadband: A Roadmap for Inclusive Growth. The report, one of the first to quantify the cost of bridging the broadband gap in North and Sub-Saharan Africa, calls for urgent action to close the internet gap while providing a roadmap and action plan for reaching universal broadband connectivity in Africa by 2030.

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.

Ghanaian Appointed Chairman of IMF/World Bank Board of Governors

October 22, 2019

It was a major breakthrough for Africa over the weekend as Ghana’s Central Bank Governor; Dr. Ernest Addison was appointed Chairman of the Board of Governors of IMF and the World Bank Group. With this appointment, Dr. Addison will chair the Board of Governors of IMF and the World Bank Group for 2020. To this end, he will preside over the 2020 plenary and other committee responsibilities.

Dr. Addison takes over from Aiyaz Sayed-Khaiyum who is the Fijian Attorney-General and the Minister for Economy, Civil Service and Communications. The Board of Governors is the highest decision-making body of the IMF consisting of one governor and one alternate governor for each member country, the governor who is mostly appointed by the member country of the Brettonwoods institution is usually the minister of finance or the head of the central bank.

While the Board of Governors has delegated most of its powers to the IMF’s Executive Board, it retains the right to approve quota increases, special drawing right (SDR) allocations, the admittance of new members, compulsory withdrawal of members, and amendments to the Articles of Agreement and By-Laws.

The Board of Governors also elects or appoints executive directors and is the ultimate arbiter on issues related to the interpretation of the IMF’s Articles of Agreement. Voting by the Board of Governors usually takes place by mail-in ballot.

With this elevation, Dr. Addison will among other things chair other functional Committees of the two institutions. He will chair the Joint Committee on Remuneration of Executive Directors and their Alternates (JCR). His duties also include the appointment of two other Committee members (on the recommendation of the President of the Bank and the Managing Director of the Fund), reviewing briefing papers, and convening meetings of the Committee. And equally chair the Joint Procedures Committee (JPC)/MIGA Procedures Committee.

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.

WORLD LEADERS WORRIED OVER ANOTHER FINANCIAL CRISIS

FAILED economic plans for such countries as Argentina, Ecuador and Somalia have got watchers of the global economy worried that the road ahead is bumpier than expected. The IMF had, in its 2019 World Economic Outlook down-graded global economic forecasts with such chilling words as “precarious” and “uncertain” to describe the headwinds affecting these and other economies it has been monitoring in the course of the year.

The civil society organization, Jubilee USA’s Eric LeCompte thinks the Fund “got Argentina’s debt sustainability wrong and failed to prevent most of their financing being lost to capital flight” just as its leadership and technicians were caught up in conflicting policy recommendations for Ecuador, tom that country’s detriment.

The IMF Global Financial Stability Report equally issued concerns over high debts and risky investing. It worried that protracted trade tensions between the world’s two biggest economies as well as other systemically important ones in the Middle East and elsewhere are causing revenue losses and bringing down trade statistics and economic growth rates around the globe. What is worse, the Fund is bothered that developing countries seem to be going back to the bad old days of binge borrowing.

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 world must not sleep-walk into another debt crisis

By Patricia Scotland.

TRADE wars, protectionism, and nationalist rhetoric are combining to weave the possibility of a nightmare debt crisis that could be worse than any previously experienced. Global borrowing is now at the highest levels since the 1950s – and history suggests we should take this as a warning that a debt crisis could be looming.

Were one to materialise, it could inflict greater dislocation on international financial systems and national economic stability than ever previously witnessed, especially in this highly uncertain environment characterised by the trade war and regional disintegration.

This would be particularly tragic in view of the extraordinary global commitment to delivering Sustainable Development Goals, and as so many nations seem finally to be in earnest about tackling the causes and impact of the climate crisis.

The impact of a parallel crisis in global debt would derail this and could make much needed international cooperation on poverty and progress impossible. Governments would be diverted by the need to stabilise local economies devastated by unmanageable debt. Yet such a scenario can be averted.

Haunting memories of the economic chaos, poverty and suffering caused by previous debt crises are the reason that the finance ministers of Commonwealth are working together to prevent the needless recurrence of an avoidable crisis.

The breadth and inclusiveness of the Commonwealth mean that when our member countries meet, many perspectives are brought to the table. These can be shared to decisive effect when Commonwealth countries work together to ensure the voices and views of all are taken into account at forums such as the G20 and other international and regional gatherings.

It is no longer feasible for policies on debt, trade and other economic matters to be considered in isolation from the increasingly extensive impacts of climate change, which are becoming more frequent and more stark.

Small island states tend to be the most vulnerable to extreme weather and natural disasters, and also to have the least resilience or resources with which to recover from the damage to their infrastructures and economies.

With interest rates at historically low levels, borrowing becomes an attractive proposition yet heightens the concomitant risk of debt ballooning to levels which are unsustainable over the longer term. This raises the possibility that countries which have ‘borrowed their way out of trouble’ following a setback will eventually face very severe debt distress. Preventing such eventualities is a global challenge which requires collective and coordinated responses.

The Commonwealth is particularly and perhaps uniquely well-placed to ensure that the perspectives and needs of developing nations are fully considered in multilateral discussions on policy for tackling future debt crises. This is the purpose of our Commonwealth Finance Ministers Meeting taking place in Washington DC alongside the annual meetings of the World Bank and International Monetary Fund.

The ministers of our 53 diverse and widely distributed yet closely connected nations will this year examine proposals designed to improve debt transparency. They will consider ways in which debt contracts can be specially amended to provide relief during disasters. Such initiatives will be supported by collating the perspectives of ministers from developing countries so that their Commonwealth counterparts from countries with advanced economies can carry them forward for the attention of the G20. The way to a stable and sustainable economic future is for developing and developed countries to work together inclusively on shaping the global debt rules which affect them all. So our Commonwealth approach is to focus on the roles of creditor and indebted countries.

There have been instances of hidden national debt burdens, and this places responsibility on creditors as well as debtors. In countries where fiscal regulation is weak, debt may be acquired or accumulated in ways which are not transparent, and very seriously to the detriment of citizens. Those who provide credit in such circumstances are also culpable, and they too must be scrutinised and be made to bear responsibility – particularly as those who suffer the most pain from unsustainable debt and carry the greatest burden at times of crisis tend to be the poor and marginalised – those least able to cope.

Among topics and actions being considered at our 2019 Commonwealth Finance Ministers meeting are:

DebtRelief – with an agreement to be sought for debt contracts with vulnerable countries to include provision for relief if a severe natural disaster strikes. Transparency in debt through innovation – encouragement to use the Commonwealth Meridian debt management system which helps to improve the accuracy with which government debt is recorded.

Dialogue on debt – the relaunch of the Commonwealth debt management forum to encourage international dialogue on the consequences of over-indebtedness so that sounder debt policies are adopted in order to prevent crises.

Easier access to financing to reduce debt burdens – through mechanisms and facilities such as the Commonwealth Climate Finance Access Hub and Commonwealth Disaster Finance Portal which offer added capacity for developing countries to access to affordable debt financing.

By working together in such practical ways, and on programmes that draw together a broad and inclusive array of nations, crises can be averted. It is essential for there, to be honest, and open collaboration between creditors and debtors in a spirit of trust and goodwill. This the Commonwealth can offer, building on the depth of our connection and the basis of equality on which our family of nations comes together.

Rather than sleep-walking towards yet another debt crisis, and the misery such nightmare reality would bring, the Commonwealth can open up pathways toward horizons of hope, with rich and poor walking in harmony towards a fairer, more secure, more sustainable and more prosperous future in which all can share.

Patricia Scotland is the Secretary General of the Commonwealth of Nations

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 Securities and Exchange Commission To Introduce Crowdfunding Regulation

Nigeria ‘s Securities and Exchange Commission has revealed plans to introduce regulations on the use of crowdfunding by small businesses to raise capital.

The acting Director-General, SEC, Ms. Mary Uduk, while speaking during an interview with journalists on the sidelines of the ongoing annual meetings of the World Bank and International Monetary Fund in Washington DC, said the move was aimed at protecting investors in the capital market.

She said, “Investors’ confidence is central to our job as the regulator of the capital market. People must have the confidence to invest.

“With crowdfunding, private companies in Nigeria can raise long-term funds using regulated platforms. The platform of the crowdfunding will be regulated by the SEC.”

Uduk, while speaking on the performance of the capital market in 2019, said the market had received a significant boost with the listing of MTN Nigeria and Airtel on the Nigerian Stock Exchange.

She noted that the primary market witnessed a new trend in the last one year with the listing of the telecom companies, Initial Public Offerings and dual listings.

Uduk said, “The dual listing of Airtel signifies the interest of the foreign issuers into the Nigerian capital market.

“Consequent to the Airtel IPO, some offshore companies are in discussion with the commission for an IPO that will be dually listed in Nigeria and the United Kingdom.

“If you look at the equities market, especially on the NSE, the market has lost about 16 per cent so far this year on the back of relatively weak economic fundamentals and investors sentiments.”

She stated that into the last quarter of the year, she hoped to see some improvement in the equities segment, especially as investors saw opportunities to pick low-priced stocks.

She added that there were still opportunities and higher probabilities for the market to rise before the end of the year.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Afreximbank Floats African Cotton Initiative

October 21, 2019

The African Export-Import Bank (Afreximbank) is developing an African Cotton Initiative (AFRICOTIN) to help to catalyse the African cotton sector, Kanayo Awani, Managing Director of the Bank’s Intra-African Trade Initiative, has announced.

Kanayo Awani, Managing Director of the Bank’s Intra-African Trade Initiative

Speaking during the launch of the African Corner at the World Cotton Day organised by the World Trade Organization in Geneva , Ms. Awani said that the initiative would involve upstream interventions boosting production of cotton on the continent and downstream interventions promoting and financing the consumption of cotton products.

She noted that the cotton value chain provides income for millions of people in Africa, especially those living in rural areas, and represented an important source of foreign exchange for many countries.

Afreximbank had a cotton pipeline of about 400 million Euros, she announced, including $195 million dollars in textile and cotton Parks in Burkina Faso and textile and garments industrial parks in Nigeria.

The African Corner, sponsored by Afreximbank, allowed the Bank to showcase its support for the African cotton value chain and for the African fashion and design industry.

The African Corner is a section of the WTO premises dedicated to African Cotton products and was designed to give exposure and recognition to African cotton and cotton stakeholders. The corner is also being used to develop collaboration with the private sector and seek investors for cotton-related industries and production in Africa.

Observance of the World Cotton Day followed a United Nations resolution sponsored by Benin, Burkina Faso, Chad and Mali proclaiming 7 October as World Cotton Day. The four countries, also known as the Cotton-4, are co-sponsors of the Cotton Sectorial Initiative which aims to improve the international cotton trading system.

Cotton is produced in 75 countries, including many least-developed countries where production and processing are important contributors to economic stability and job creation.

Also addressing participants in Geneva was Arancha González, Executive Director of the International Trade Centre, who said that cotton was at the heart the Centre’s efforts to ensure sustainable development through trade in Africa.

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.