News - Afrikan Heroes

African Cocoa Farmers to Benefit Through IFC, Cargill Partnership

September 28, 2019

African Cocoa farmers especially those in cooperatives will benefit from a new initiative aimed at strengthening cocoa producing cooperatives and their communities which includes Coop Academy 2.0.. The initiative launched by Cargill and the International Finance Corporation (IFC), the private sector arm of the World Bank Group will add 40 additional cooperatives to the academy, bringing the total to 120 cooperatives reached through training and tools to improve their cocoa business improve sustainability and increase profitability.

The Cargill Coop Academy, first established in 2013, was the first of its kind in the cocoa sector. The model provides cooperative leaders with the management skills to improve daily operations of their organizations, leading to a more professional, efficient and successful business. In 2014, Cargill partnered with IFC and others to scale the program to reach over 350 cooperative leaders.

Speaking on the development the Managing Director of Cargill Cocoa & Chocolate in West Africa, Mr. Lionel Soulard, said that the cooperative model has proven to be an exceptional method to bring cocoa farmers and their communities lasting benefits. He noted that by gaining invaluable skills and tools to professionalize their business, “we see them independently driving impactful sustainability projects that bring meaningful change to their communities and the cocoa sector at large “he added.

Kenyans Will Proceed With New Sh1000 Notes As Court Rules Jomo Statue Is Not A Portrait, New Notes Legal

In what is a like a significant landmark victory, Kenyans will would be proceeding to have new Sh1000 notes by September 30. A Kenyan High Court has ruled that the new bank notes are legal and that Kenya’s first President, Jomo Kenyatta’s statue on them is not a portrait. The court also declined to extend the expiry date of old Sh1,000 notes.

Here Is All You Need To Know

On June 4, two cases challenging the release of new bank notes into circulation were filed before the High Court.
The petitions filed separately by activist Okiya Omtatah and East Africa Legislative Assembly Member of Parliament Simon Mbugua said the image of a statue of President Jomo are in violation of the Constitution and should be removed from the new denominations.
According to the petitioners, although Kenyatta’s portrait is captured as a part of Kenyatta International Conference Center (KICC), it is a representation of the former President’s image, whose inclusion is illegal.

“The petitioners posit that the new design Kenyan currency bank notes are unconstitutional and, therefore, invalid, null and void, because they violate Article 231(4) of the Constitution to the extent that they bear the portrait of the late President Jomo Kenyatta,” the petitions read.

On August 8, Omtatah also sued Attorney General Kihara Kariuki for publishing new laws to regulate circulation of the new currencies.
Omtatah argued that the AG sneaked in the new law after realising that the Central Bank of Kenya illegally introduced the new generation currencies, and when the court was at an advanced stage of determining legality of the new currencies.
He wanted the court to suspend a legal notice published by the AG, pending determination of his suit over the new currencies.
The activist challenged the laws relied on by CBK to introduce the new currencies and have founding President Jomo Kenyatta’s portrait on the notes.

Here Is How The New Currency Policy Has Pushed Some Kenyans To Tight Corners

Under Kenya’s new currency regime, some of the country’s currency would be replaced with a new generation of banknotes. To that effect, Kenyans must return their old 1,000 shillings ($10; £8) notes to banks before 1 October, 2019 in a bid to fight money laundering, counterfeits, and corruption).

To effectively implement the new policy, the Central Bank of Kenya has issued some tough guidelines on how to exchange the old Sh1000 currency for new notes.

Read also: What Kenyan Businesses Need To Know About The New Currency Policy In Place In The Country

To this effect, those without a bank account are not able to exchange more than Sh1 million of old currency with the new notes without CBK’s approval.
Even with a new bank account, it is reported as a suspicious activity if the holder all of a sudden credits his account with more than Sh1 million, or seeks to exchange it in cash and walk away without proper documentation on proof of source of funds.

There is an alleged feeling of desperation among those suspected to be hoarding money acquired illegally and who are hence unable to bank it as they cannot openly declare its source. Such individuals are faced with the challenge of losing the money when it is devalued on 1st October as Kenya officially moves on to the new currency as is dictated by the 2010 Constitution, reports Kenya’s Investment Company Soko Directory.

New Guidelines Warning Stakeholders By CBK

In its most recent circular, KCB warned it would take action against any commercial bank that fails to, neglects or omits to comply with relevant regulations.

The regulator reminded lenders of their obligation under the Crime and Anti-Money Laundering Act, 2009, saying they should undertake due diligence on customers’ transactions and ensure effective monitoring of all accounts and transactions.

In March 2019, CBK also directed all commercial banks, microfinance institutions, and mortgage finance companies to nominate “an independent and competent external third party” to evaluate the institution’s compliance to anti-money laundering and combating the financing of terrorism programs.

The appointed parties evaluate the institution’s customer due to diligence measures, its risk assessment for cases of money-laundering and terrorism financing, check the firm’s internal controls against such financial crimes, and their monitoring process.

The fight against money laundering was one of the Kenya ’s reasons to phase out old Sh1000 notes, which CBK said was becoming increasingly easier to imitate.

Speaking during the Madaraka Day celebrations, CBK governor Patrick Njoroge said the new Sh1,000 notes will help address the growing concerns of illicit financial flows in the country.

The Most Direct Implication of This Is That By October This Year, All Those In Possession of The Old Ksh1000 Notes Will Not Be Able To Use Them

This is directive of the Central Bank of Kenya. CBK governor Patrick Njoroge also revealed that 100 million pieces of the old Sh1,000 note had been returned by end of August 2019 out of 217 million pieces or Sh217 billion in circulation.

This means the public has less than 3 days to exchange some of the remaining bulk.

With the deadline fast approaching, businesses have started blocking usage of the old Sh1000 notes.

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

Prof. Oramah Calls for Vehicles that Facilitate Cross-Border Trade in Africa

September 26, 2019

As parts of efforts aimed at strengthening cooperation and facilitating cross boarder trade across Africa, the President of the African Export-Import Bank (Afreximbank), Prof. Benedict Oramah, has urged African countries to create vehicles that would make it possible for manufacturers to trade across the continent. Prof. Oramah made this known yesterday while speaking at a High-level event on the Third Industrial Development Decade for Africa 2016-2019, organised at the United Nations Headquarters, New York.

The event which was well attended by a cross section of dignitaries from Africa had Li Yong, Director-General, United Nations Industrial Organisation; Albert Muchanga, African Union Commissioner for Trade and Industry; Dr. Adewunmi Adesina, President, African Development Bank; Dr. Vera Songwe, Executive Secretary, United nations Economic Commission for Africa; and Ali Mufuruki, Vice Chairman, AfroChampions Club as participants. A second session also featured President Apha Conde of Guinea; President Edgar Lungu of Zambia and Vice President Daniel Kablan Duncan of Cote d’Ivoire. The high-level event, held on the sidelines of the United Nations General Assembly, had the theme “Promoting innovation and infrastructure development: A pathway for boosting manufacturing in the Fourth Industrial Revolution”.

BFA Becomes First Angolan Bank to Sign on to Afreximbank’s Trade Facilitation Programme

Prof. Oramah argued that for manufacturers across the continent to make the much desired impact in getting their wares across to consumers, that there is need for a special vehicle that will help them in handling the marketing end of their products and the intricacies involved in export and trading. This is imperative because the manufacturers are not well versed equipped for those roles, he said. Export trading companies had been one of the approaches used to tackle that challenge, he said, adding that the creation of the African Continental Free Trade Area also attempted to address the issue.

Prof. Oramah said that previous efforts by African countries to use manufacturing and industrialisation as engines for development and growth had failed largely as a result of issues such as lack of access to market, lack of capital and skills and inadequate infrastructure. He stated that many large-scale investors had little interest in investing in Africa in a massive way because of the fragmented nature of the African market.

The President suggested that Africa should focus more on labour-intensive manufacturing which had more net effect on the population than on capital intensive industries. He also stressed the need for Africa to focus on skills development, in particular, by going back to building technical schools and supporting universities of technology in order to equip people with the right skills for the kind of jobs that were beginning to emerge. Prof. Oramah used the opportunity to announce that Afreximbank had launched an equity investment fund, the Fund for Export Development in Africa, which would help attract foreign direct investment to support industrialisation and manufacturing in Africa.

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Caption for the Photograph
Afreximbank President Prof. Benedict Oramah (right) poses with other speakers, (L-R) Li Yong, Director-General, United Nations Industrial Organisation; President Apha Conde of Guinea; President Edgar Lungu of Zambia; vice President Daniel Kablan Duncan of Cote d’Ivoire and Albert Muchanga, African Union Commissioner for Trade and Industry, following the high-level event at the United Nations Headquarters.

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 in a Fix as the World Focuses on Renewable Future

The precarious situation of many African countries, especially those whose economies depends wholly on petroleum came to the fore yesterday during a forum in New York. This came as President of African Development Bank President (AfDB) Dr. Akinwumi Adesina unveiled ambitious plans to scrap coal power stations across the continent of Africa and switch to renewable energy. This unveiling took place at the United Nations climate talks early this week. While addressing leaders and officials from almost 200 countries in New York, on the sidelines of the ongoing United Nations General Assembly (UNGA), Dr. Adesina outlined efforts to shutter coal-fired power plants and build the “largest solar zone in the world” in the arid Sahel belt. He noted that coal is the past, and renewable energy is the future, saying that the African Development Bank is getting out of coal.

This development according to Dr. Adesina is in line with the Bank’s $500 million green baseload scheme which will be rolled out in 2020 and is set to yield $5 billion of investment that will help African countries transition from coal and fossil fuel to renewable energy. He also talked about plans for $20 billion of investments in solar and clean energy that would provide the region’s 250 million people with 10,000 MW of electricity.

The United Nations Climate Summit was attended by presidents, princes and government ministers from around the world as they faced mounting pressure to reduce heat-trapping gas emissions and slow the global rise in temperatures. The UN secretary-general Antonio Guterres also warned of the “dying fossil fuel industry” and said it was still not too late to keep the global rise in temperatures below the benchmark figure of 1.5 degrees Celsius. The UN Scribe added that it will require fundamental transformations in all aspects of society on “how we grow food, use land, fuel our transport and power our economies”.

This is coming at a time many African countries are discovering new oil and gas deposits and exploration activities are going on at frenzied speed, to that effect, analysts say that Africa is in a very tight spot as many of them are presently focusing on growing their economies on fosil fuel at a time renewable energy and most especially electric vehicles are fast becoming the order of the day.

The UN says mankind must reduce greenhouse gas emissions to limit global warming to about 1.5 degrees Celsius above pre-industrial temperatures to stave off the worst-case predictions of scientists. The Summit was part of the run-up to the international climate talks in 2020, which is the next deadline for countries to make significant emissions reduction pledges under the 2015 global warming deal.

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.

Onyeka Ojogbo Appointed to Head Centurion’s New Frankfurt Office

September 25, 2019

Nigerian born, US trained attorney, Onyeka Ojogbo has been appointed to lead the Centurion Law Group activities in Europe through the newly established Frankfurt office. The office in Germany will focus on developing opportunities for German and African clients in the energy sector. According to sources at Centurion Group, Onyeka Ojogbo will be handling a growing portfolio of clients coming from Germany and Western Europe, and work on further attracting investments from European energy companies into Africa.

Speaking on the development the CEO of Centurion Law Group NJ Ayuk commended Ms. Ojogbo for her industriousness and initiative since she joined the firm of attorneys. He added that ‘since she joined the firm, Onyeka has demonstrated a strong entrepreneurial mindset and an ability to work on the most complex transactions and deals” noting that “her appointment to our new office in Germany makes perfect sense given her qualifications and capacities to lead a team and represent the firm on the most demanding transactions and negotiations. She is a top notch lawyer and deal maker, and is a benefit for Europe and Africa,” he pointed out.

Centurion according to the CEO do recognize the need to further open up African energy markets to European companies and entrepreneurs who can bring value to the energy industry and work hand in hand with African companies. Germany he noted has a lot to offer Africa in areas such as gas-to-power, clean and new energy and I look forward to being part of a new story within Europe and Africa’s energy cooperation. This development according to company sources is in line with the company’s expansion plans as it rolls out Centurion Plus, its latest lawyers-on-demand offering launched in 2018. Operating as a division of Centurion, Centurion Plus offers cost-savings and efficient flexible legal and advisory services to corporate clients, who can select from a pool of about 190 carefully vetted, on-demand attorneys and advisors for temporary and project-based legal services.

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.

Ghana’s Public debt reaches 59.4% of GDP at the end of July 2019

Ghana’s public debt reached 59.4% of GDP at the end of July this year, against 53.1% in July 2018, the Bank of Ghana’s Monetary Policy Committee (MPC) revealed.

The GHC205.6 billion ($38 billion) debt in July 2019 is 26.6% higher than the GHC159.7 billion ($30 billion) of July 2018. According to the Central Bank of Ghana, this debt is composed of external borrowing (31% of GDP) and domestic debt (28.4% of GDP).

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

Dangote Foundation Empowers 106,000 Women with N1.1 billion

September 24, 2019

The Aliko Dangote Foundation (ADF) has continued its empowerment projects across the continent of Africa with an additional empowerment of 106,000 women across four states in Northern Nigeria with the sum of N1.1 billion. This present gesture is in continuation of the Foundation’s micro-grant programme aimed at poverty amelioration through economic empowerment of women.

Alahaji Aliko Dangote, Chairman Dangote Group

Add to this, the Foundation has began the identification of eligible beneficiaries, towards the implementation of the programme across these states and will be actively targeting and empowering 23,000

women in Sokoto State, 34,000 women in Katsina State, 21,000 women in Kebbi State and 28,000 women in Zamfara State, all in northern Nigeria.
Since the programme was launched in 2011 starting with Kano State, the home state of Aligo Dangote, it has gulped about N10 Billion with a special emphasis on indigenous and vulnerable women. According to sources at the Foundation, efforts are being made to extend the programme to cover 774 Local Government areas in Nigeria. So far, 334,500 women and youths from Kano, Jigawa, Kogi, Adamawa, Borno, Yobe, Lagos, Nasarawa and Niger States have benefitted from the programme.
The scheme also provides recipients with a one-time, un-conditional N10,000.00 cash grant to meet immediate household consumption and economic needs.

As way as doable, participants also receive training tailored to bolster their income-generating activities which are critical for the welfare of millions of Nigerians.
Selection is predicated on communities with primary thought for vulnerable girls, food distressed households with infant or children under-five year old, disabled, divorcee, widow with multiple dependents, extremely poor residents in these communities.

The programme is enforced in partnership with states governments to enrich their economic authorization and impoverishment reduction drive across the country.

From 2016, the Foundation automated the beneficiary enrollment and payment processes.

Also, additionally to the money grants, beneficiaries were also given mobile phones and SIM cards by the Foundation.
In the last 2 states, the theme was enforced, the Foundation partnered with a number one depository financial institution to open bank accounts and supply ATM card for every beneficiary.

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.

Growing Fintech Makes Startups Vulnerable to Cyberattacks in Africa

September 23, 2019

There are indications that Africa’s fast growing Fintech ecosystem which surged up to 60% in the last two years as the continent’s Fintech firms grew from about 300 to about 500 in the last two years but with this boom also comes the challenges chief among which is the increase in cyberattacks. Analysts say that with about $132.8 million raised in 2018 by Fintech firms, Africa presents an opportunity for growth in the sector especially given the high mobile phone penetration levels and the boom in mobile financial services and payment technologies.

Bethwel Opil, Enterprise Sales Manager at Kaspersky Africa

The growth in mobile technology is responsible for the high growth in Fintech in countries such as South Africa, Nigeria and Kenya that accounts for 65.2% of Africa’s Fintech startups. Speaking on this development, Bethwel Opil, Enterprise Sales Manager at Kaspersky Africa said that such Fintechs have had a significant impact on the financial services landscape of these countries, where locally, these solutions are reaching more Kenyans than ever before. He added that the tech revolution that took place in Kenya has brought about practical Fintech experiences making it one of the most financially inclusive countries in Africa and where mobile money transactions contribute a significant percentage to the country’s GDP.

However, the downside to this development is the fact that with more local businesses and consumers taking advantage of the ability to use digital methods to move money around, criminally minded people are also having more targets to focus on thus the emerging Fintech space is also becoming an increasing target for cybercriminals.

Opil noted that young startups are always more exposed than traditional businesses, and their undeveloped infrastructure, especially at startup stage, make them an easier target than traditional banks. He pointed out that there are a growing number of businesses that are using or offering cryptocurrency and mobile money as payment methods and cybercriminals are embracing this trend, using sophisticated techniques to access such funds.

Startups should bear in mind that that operating over the internet makes Fintechs vulnerable to criminals even though mobile payment methods offer a convenience that is hard to debate. For example cases of SIM swap fraud is reported as being used to not only steal credentials and capture one-time passwords (OTPs) sent via an SMS, it can also be adopted to cause heavy financial damages customers by resetting the accounts and or allowing fraudsters to access currency accounts not only in banks, but also in Fintechs and credit unions. Challenges such as this abound because most Fintech companies do not have proper defences in place to protect their services and their users against a data breach and because the market is unregulated, it is hard to prevent. Another ugly development is that cybercriminals are presently demanding ransoms in cryptocurrency given the anonymity of the market and the fact that there is little chance of being tracked. One ready example is the kidnapping case in Abuja where the kidnappers requested that the victim’s family pay the ransom with cryptocurrency, even though the Nigerian Police eventually traced the payment to the owner of the account leading to the arrest of the criminals. To avert such, the need for more and adequate security education, awareness and ensuring that it is seen as a priority is critical as the Fintech market grows cannot be overemphasized.

That is why Kaspersky Africa is warning that there is no substitute for vigilance – if something looks suspicious in any way, do not make the payment or investment. Consumers who are using mobile cryptocurrency as an investment or payment method should also ensure that they verify the wallet’s address. “Don’t just follow links, double check everything before sending the transaction and make sure you use a high-quality security solution to safeguard the devices you use” Opil added.

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.

President Mahamadou Issoufou Keynotes This Year’s Rhodes Forum

President Mahamadou Issoufou has been announced as the keynote speaker in this year’s Rhodes Forum which will take place in New York. The Rhodes Forum is regarded as the flagship global affairs conference. This year’s Forum which is the 17^th will focus on global order and security. According to the Dialogue of Civilizations Research Institute (DOC), organizers of the Forum, President Issoufou will share an African perspective on issues related to global order, security and economic development with the Rhodes Forum’s audience of more than 300 senior policymakers, diplomats, academics and businesspeople from around the world. He will also participate in the Forum’s Focus on Africa panel to discuss how the continent can become a driver of global development.

Speaking on what informed the choice of President Issoufou, the CEO of Dialogue Civilizations Research Institute (DOC), Jean-Christophe Bas said that with President Issoufou, the DOC is proud to welcome to Rhodes a major leader of the African continent, and one who was instrumental in the launch of the African Free Trade Zone last July in Niamey. He added that the shape of the future global order, security and development are central themes of this year’s Rhodes Forum, which continues our established focus on Africa and African development.

It is in this context, says Jean-Christophe Bas, and also the fact that Niger is set to join the UN Security Council as a non-permanent member in January 2020, that President Issoufou’s intervention at the 17th Rhodes Forum will be timely and authoritative. “I am sure that the Forum’s high-level and influential audience will all benefit from his insights, and I expect this year’s Rhodes Forum to make a substantive contribution to current debates around Africa’s future as a pillar of the global order and driver of economic growth” he argued.

Other African leaders that have graced the Rhodes Forum in the past as keynote speakers are former President Goodluck Jonathan, Prime Minister of Guinea Ibrahima Kassory Fofana and former Malian President Dioncounda Traoré.

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.

Kenyan High Court to rule on shift to new currency

On June 1, Central bank announced that it was withdrawing Ksh1,000 ($10) notes from circulation effective October 1 to deal with counterfeits and money laundering.

Last week, the Kenya Bankers Association (KBA), the industry’s lobby, said no banks should now be dispensing the old Ksh1,000 notes because now it’s about receiving them and forwarding them to CBK,”

Did Central Bank of Kenya (CBK) violate the Constitution in including the statue of founding president Jomo Kenyatta on the new generation bank notes?

The answer to this question, and its effect, is at the heart of a case filed by activist Okiya Omtatah and whose verdict is expected from the High Court on September 27.

The ruling will come only days to the expiry of the CBK deadline of September 30th for return of the old Ksh1,000 bank notes that are set to be withdrawn from circulation.

Justice David Maraga of the high court of Kenya

Chief Justice David Maraga appointed judges George Kanyi Kimondo, Anthony Charo Murima and Lady Justice Asenath Nyaboke Ongeri to handle the case.

Mr Omtatah accused the Central Bank of Kenya and its governor Patrick Njoroge of violating Article 231 (4) of the Constitution that prohibits the use of individual portraits in currency notes and coins.

He also argued that the designs of the new generation currency note and coins were not subjected to public participation in line with the requirements of the Kenyan Constitution.

“Notes and coins issued by the Central Bank of Kenya may bear images that depict or symbolise Kenya or an aspect of Kenya but shall not bear the portrait of any individual,” states the Constitution.

According to Mr Omtatah, the Legal Notices used by CBK to legalise the issuance of new generation bank notes — No. 235 of December 7, 2018, No. 72 of May 31, 2019, and the Kenya Gazette Notice No. 4849 of May 31, 2019—are invalid, null and void because they were issued in violation of the Constitution and statutes without being tabled in parliament for scrutiny and approval.

On June 1, Central bank announced that it was withdrawing Ksh1,000 ($10) notes from circulation effective October 1 to deal with counterfeits and money laundering.

Last week, the Kenya Bankers Association (KBA), the industry’s lobby, said no banks should now be dispensing the old Ksh1,000 notes because now it’s about receiving them and forwarding them to CBK,”

However, The EastAfrican has learnt that some lenders are still dispensing old Ksh1,000 notes through their automated teller machines (ATMs)

JAMES ANYANZWA works for The East African

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