News - Afrikan Heroes

Stakeholders Chart Sustainable Pathway to Universal Health Coverage in Nigeria

December 18, 2023

The World Health Organization (WHO) in collaboration with its partners is supporting the government of Nigeria in finding evidence-based and sustainable solutions towards the attainment of Universal Health Coverage (UHC) by 2030.

This is to accelerate the ongoing effort of the government to ensure that all Nigerians irrespective of age, status, and geographic location, have access to the full range of quality health services they need, when and where they need them, without financial hardship.

Consequently, December 12 every year has been designated by the WHO for governments to renew their commitment while providing the unique opportunity for advocates to raise their voices in demand for efficient investments in health towards UHC.

Addressing Journalists after the UHC commemorative walk in Abuja, the Coordinating Minister for Health and Social Welfare, Professor Mohammed Ali Pate said the President Tinubu-led administration is determined to improve the health of Nigerians through positive health transformation that will lead to the attainment of UHC.

The 3.5-kilometre March tagged “Walk for Health” was part of the activities embarked upon to commemorate the Universal Health Coverage (UHC) Day in Abuja on 12 December 2023.

The Minister said that Health is a fundamental human right and the Federal Government through the Federal Ministry of Health remains committed to delivering equitable and optimal health outcomes for all Nigerians.

He noted that the National Health Insurance Authority had made it mandatory for everyone to be enrolled and access a package of essential health services free at the point of use.

“This will bring about investment to expand the quality of healthcare services that Nigerians access through the primary healthcare systems and hospitals. We expect that states will complement the effort of the Federal Government to guarantee the participation of every stakeholder, to ensure that the society is healthier.

Good health is core to harnessing Nigeria’s greatest asset, its human capital, which is at the heart of our relentless efforts to ensure that all Nigerians are on the path to having access to improved quality health services without financial hardship” he said.
Professor Pate further advised Nigerians to take care of their health by engaging in exercises to keep fit and eat good food.

In his remark, the WHO Country Representative, Dr Walter Kazadi Mulombo said the walk was to create awareness and remind everyone that the world was lagging in providing Universal Health Coverage to the population. He expressed WHO’s commitment alongside other UN agencies and partners towards accelerating health for all, as this is the time for action.

“WHO alongside other partners will support the country in finding solutions to most of its health challenges. It is an opportunity for us to rethink the way we do our business and associate towards universal coverage for everyone.

The new investment initiative provides the hope that will change the course of health in Nigeria because Nigeria matters. If we can do it in Nigeria, it would influence Africa and also have a ripple effect globally,” he said.

Other participants at the walk included the Minister of State for Health, Dr Tunji Alausa, the Permanent Secretary of the Ministry of Health, heads of agencies, CSOs, media and partners in the health sector.

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

Afreximbank Calls for Inclusive and Just Energy Actions

December 17, 2023

Prof Benedict Oramah, president Afriexim bank

Afreximbank Calls for Inclusive and Just Energy Actions The frican Export-Import Bank (“Afreximbank”) recently concluded its participation at COP28 in Dubai, the United Arab Emirates, where the Bank reiterated its commitment to advancing the continent’s climate goals and sustainable development agenda.

Against the backdrop of the official COP28 theme “Transforming climate finance, by delivering on old promises and setting the framework for a new deal on finance; Putting nature, people, lives, and livelihoods at the heart of climate action“, Afreximbank worked to build on the progress made at COP27 in Egypt and the African Climate Summit 2023 in Kenya.

At COP27, Afreximbank spearheaded calls for Africa to assert its needs, challenges, and outlook, and most significantly to drive the continent’s position on a just energy transition and sustainable development. Similarly, at COP28, Afreximbank’s position aligned with the broader agenda of the African Union on Climate Change and Africa’s development as outlined in the Nairobi 2023 declaration during the Africa Climate Summit 2023.

The Bank’s approach also incorporated elements from COP27, addressing the broader issues on financing climate interventions for climate adaptation and mitigation, loss and damage compensation for African states affected by climate-related hazards and potential challenges that African states will face as they try to access the Loss and Damage Fund announced during COP28’s opening session.

Professor Benedict Oramah, President and Chairman, Afreximbank, said, “Amidst the pressing climate challenges faced by Africa, Afreximbank continues to advocate for an inclusive and just energy transition for Africa, in collaboration with the African Union, member states and partners, that will forge a new, green industrialized economy, advance the continent’s climate goals and development through strategic initiatives and expediting of the AfCFTA implementation. This will serve as a catalyst for economic development and a resilient future for Africa.
Led by its Executive Management, Afreximbank made substantial progress in critical areas.

Support the advancement of the goals articulated under the African Leaders Declaration on Climate Change in Nairobi 2023

At COP28, Afreximbank championed a robust pan-African narrative derived from the agreed Nairobi declaration at the inaugural African Climate Summit in Nairobi. Afreximbank supported interventions addressing the multidimensional impacts of climate change on the continent and promoting sustainable development in Africa. In line with the Paris Agreement emission reduction goals, Afreximbank showcased African leaders’ aspirations to reduce emissions while actively contributing to the implementation of innovative solutions designed to address the existing climate finance in the continent. The Bank further advocated for the swift operationalization of the Loss and Damage Fund agreed upon at COP27, designed to provide financial assistance to countries that are most vulnerable and impacted by climate change, especially in Africa.

Fostering and promoting inclusive partnerships for renewable energy and a just energy transition for sustainable development

Aligned with the AU Agenda 2063, Afreximbank’s commitment to financing and supporting renewable energy projects was sounded at COP28. Specific focus was given to interventions seeking to increase capital to support the optimisation of Africa’s vast renewable energy potential and other initiatives buttressing the development of sustainable energy systems that guarantee increased energy access for Africans as an important catalyst for economic development. Indeed, Afreximbank used the COP28 opportunity to underscore the importance of planning renewable energy ventures on the continent to ensure their readiness for investment from private capital.
Afreximbank also urged for increased collaboration by public and private sector actors for a globally inclusive energy transition model. The Bank solidified its commitment to supporting Africa’s just-transition plans, taking into consideration the continent’s development priorities, mitigation of transition costs, timelines, and the criticality of its natural resources in financing development programmes designed to address existential challenges including improved energy access for its people.
Moreover, Afreximbank discussed the opportunity presented by Africa’s great reserves of critical energy transition materials. The Bank highlighted its collaboration with UNECA, alongside other partners, in progressing the DRC-Zambia Battery Value Chain Special Economic Zones, aimed at locally beneficiating the critical minerals necessary for the global energy transition.

Accelerating the Implementation of the AfCFTA for a Greener Africa

At COP28, Afreximbank, among other African institutions, was at the forefront of championing the AfCFTA, showcasing its ability to drive local industry growth and spearhead a continent-wide transition to net-zero emissions. The Bank prioritizes the mobilization of resources to foster collaborative efforts expediting AfCFTA implementation which will promote the localization of regional value chains, critical to reducing Africa’s carbon emissions. Notably, the Bank’s groundbreaking initiative, the AfCFTA Adjustment Fund, aims to address short-term disruptions and ensure retooling and reskilling within the private sector for sustainable development in Africa. At a side event, the Bank and other partners launched the SAFE Initiative, where its representatives made the case for the expansion and acceleration of the continent’s burgeoning EV industrial infrastructure.
Afreximbank engaged in crucial dialogues at COP28 and used the platform to advocate for climate action in Africa – highlighting at all times the AfCFTA’s pivotal role as an instrumental variable in achieving climate goals. Conference delegates heard from Afreximbank’s trade policy experts on the importance of a trade approach coordinated on a continental basis.

Deployment of innovative climate finance solutions

Afreximbank’s commitment to exploring and deploying innovative climate finance solutions was demonstrated at COP28. The Bank highlighted its climate-related initiatives such as the Climate Adaptation Finance Facility, early-stage project preparation facility and risk bearing instruments like guarantees, tailored for the Bank’s member states. Afreximbank aims to deploy initiatives designed to address the challenges inhibiting access to climate finance, and the need for increased private and public sector collaboration in financing of climate interventions across the continent.

The Bank also articulated the urgency of channelling climate finance to Africa and the importance of crowding in private sector capital to climate-relevant projects, communicating to a broader international audience the imperative that, as well as a radical increase in the quantity of financing directed to continental ventures, the structure of finance flows to Africa must be revised to meet the demands of this unprecedented test.

Shaping a well-regulated carbon market for Africa’s future

Afreximbank acknowledges its position as a key player in shaping a well-regulated carbon market in Africa by 2030. With initiatives like the African Carbon Markets Initiative (ACMI), the Bank contributes to transparent and innovative solutions, aligning with COP28’s transformative climate finance theme. Afreximbank is committed to the implementation of Biodiversity Credits in Africa and the diversification of the continent’s participation in carbon credit markets, which could be converted into a critical funding tool to bridge Africa’s Infrastructure Finance Gap.

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

Norway Bolsters Africa’s Climate Defenses With $6.5 Million Disaster Financing Pledge

December 15, 2023

Norways-Minister-of-International-Development-Anne-Beathe-Tvinnereim

The government of Norway has announced a financial commitment of 70 million Norwegian Krone ($6.5 million) for an African Development Bank Group (www.AfDB.org) programme to boost Africa’s resilience and responsiveness to climate shocks.

With the pledge, Norway becomes the fifth country to join the Bank Group’s Africa Disaster Risk Financing Programme (ADRiFi) Multi-Donor Trust Fund, which bolsters sovereign drought insurance protection to mitigate the negative impacts in Africa of climate-related extremes such as cyclones, flooding and drought.

The financing commitment, over three years, comes was announced on the sidelines of the COP28 UN climate summit, where officials from the African Development Bank and the Norwegian Agency for Development Cooperation met in Dubai.

Norway’s Minister of International Development, Anne Beathe Tvinnereim, said: “Norway is proud of becoming a new donor to the Africa Disaster Risk Financing Programme and providing additional funding to reduce the risk of climate related disasters and make parametric insurance solutions more accessible to a greater variety of stakeholders on the African continent.”

She added that climate change has disrupted the daily lives of many Africans. Enhancing countries’ resilience and response to climate shocks by responding to early warnings, “enables mitigation of some of the devastating effects before they have occurred – securing lives, livelihoods, and economies.”

Dr. Beth Dunford, African Development Bank Group Vice President for Agriculture, Human and Social Development said: “Growing numbers in the international community are realizing that this African-led solution to Africa’s climate change-related challenges is impactful and important. Norway’s support for the ADRiFi Multi-Donor Trust Fund will help bring protection to millions of the continent’s most vulnerable coping with climate risk, and enhance African countries’ ability to be more resilient to climate change.”

Other donor countries to the ADRiFi Multi-Donor Trust Fund include: the United Kingdom, Switzerland, the United States and Canada.

Under the Africa Disaster Risk Financing Programme and in collaboration with the African Risk Capacity Group, the Bank is at the forefront of promoting proactive climate risk management instruments in Africa. The Bank has invested more than $100 million and supported 15 African countries to access sovereign insurance and financial protection against climate hazards.

Since its inception in 2018, the ADRiFi programme has provided financial protection against severe droughts and tropical cyclones to more than five million people, significantly contributing to bolstering resilience in vulnerable communities.

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

Kenya Can Build on Past Success to Make Growth More Inclusive and Accelerate Poverty Reduction

Keith-Hansen-World-Bank-Country-Director-for-Kenya

Kenya has in the past been successful in translating economic growth into improved living standards of its citizens. Despite progress, the challenge going forward is to ensure the poor and vulnerable benefit equally from progress, addressing the stark and persistent disparities across space and income groups.

According to a new World Bank report titled Kenya Poverty and Equity Assessment (KPEA) 2023 – From Poverty to Prosperity: Making Growth More Inclusive, which covers the period between 2005 and 2021, the progress Kenya has made in reducing poverty and raising living standards of its citizens has not been equally shared. As a result, economic growth has not sufficiently translated to more people escaping poverty and in recent years, poverty has become less responsive to economic growth.

“While Kenya’s economic growth is commendable, it is important to ensure that it is inclusive and benefits everyone, especially the poor and vulnerable,” said Keith Hansen, World Bank Country Director for Kenya. “An inclusive growth strategy will accelerate poverty reduction and equalize opportunities through smart economic policies and efficient and equitable public spending that raise the productive capacity of the poor.”

A combination of interconnected factors contributes to the uneven progress. Creation of productive jobs and economic opportunities is limited especially for the poor. The incidence of shocks, especially extreme weather shocks, is growing, with exposure and vulnerability highest among the poor. In addition, inequality of both opportunity and outcomes dampens the translation of economy-wide growth to income growth of the poor.

The recent slowdown in the pace of poverty reduction point to the need for an inclusive growth strategy that brings widespread growth in people’s disposable income, says the KPEA. It recommends three broad interconnected policy pathways to inform such a strategy. These include (i) connecting the poor to economic growth (ii) strengthening households’ resilience to adverse weather shocks, and (iii) leveraging fiscal policy to support poverty reduction objectives.

“More disposable income in the hands of more people, especially amongst those who are at the bottom of the income distribution, will create lasting pathways to prosperity. Such widespread prosperity is also good for the economy because it can translate into higher tax revenues and greater fiscal space but also support a vibrant domestic demand and private sector.” said Precious Zikhali, Senior Economist, and co-author of the report.

The KPEA says that Kenya can build on past success to accelerate poverty reduction and boost equity. Connecting the poor to the country’s economic growth calls for a policy focus on raising the working poor’s productivity in agriculture, manufacturing, and services sectors where most are deployed, it adds.

“A broad range of public policy instruments, spanning agricultural policy, Micro, Small and Medium Enterprises policy, and urban development as well as interventions from the private sector will also be needed to raise the poor’s productive capacity,” said Nistha Sinha, Senior Economist, and a co-author of the report.

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

Qawafel Launches to Assist Tunisian Startups Expand Across Africa

As part of the Qawafel project, dedicated to supporting the internationalization of Tunisian startups and SMEs on the African continent, a call for projects is open to Tunisian support structures. These structures are invited to design programs aimed at supporting startups in their internationalization efforts. Each structure can benefit from a grant ranging from 75,000 to 120,000 euros.

The objective of this project is to contribute to job creation, the inclusive economic development of Tunisia, and its integration into the markets of the African continent. It is important to note that the deadline for the submission of applications is set for January 29, 2024, at 2:00 PM, and this must be done through the qawafel.tn website.

For those interested, an information session on the project is scheduled for Thursday, January 11, at 10:00 AM at The Dot.

This project, funded by the French Development Agency (AFD) and implemented by Expertise France, represents a promising opportunity to strengthen the Tunisian entrepreneurial fabric by promoting its expansion on the scale of the African continent.

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

President Cyril Ramaphosa Appeals High Court Ruling Setting Aside Recognition of His Majesty King Misuzulu

December 14, 2023

President Cyril Ramaphosa has noted the judgement of the High Court of South Africa, Gauteng Division, setting aside the recognition of AmaZulu King, His Majesty King Misuzulu kaZwelithini. The court further ordered the President to institute an investigative committee to investigate allegations of violation of customary laws in the identification of King Misuzulu.

Following a study of the judgement, the President will apply for leave to appeal against the judgement. During the course of these legal processes, His Majesty King Misuzulu remains the identified heir to the throne.

President Ramaphosa calls on all members of the Royal family to continue working for the unity of ubukhosi bakwaZulu and to prioritise the interest of His Majesty’s subjects. It is vital that all due processes are allowed to reach their natural conclusion without inflaming tensions.

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

Chipper Cash Announces Full Coverage of the United States

Chipper Cash, a financial services company serving over five million customers across Africa and the US, has announced it now provides 100 per cent coverage in the US, enabling retail and business customers to use the Chipper app to securely send money domestically and internationally in every US state.

The fintech has steadily been delivering on its US licensing program over the past three years. The output has seen the company obtain money transmitter licenses for 80 per cent of US states, with well-established banking partnerships supporting operations across the remaining 20 per cent. State money transmitter licenses are important as they govern the safety and integrity of the payment infrastructure.

“The expansion of our US licensing program now totals money transmitter licenses for 40 individual states, marking a substantial leap forward in our journey to fulfilling our mission – and setting us apart in the fintech landscape,” said Naledi Ngubeni, Chief Compliance Officer, Chipper Cash.

Naledi continued: “We extend our deepest appreciation to regulators in all the jurisdictions that we operate in. Their guidance and oversight have been invaluable in ensuring we maintain the highest standards of financial security and integrity. These licenses aren’t just legal formalities, they embody our core values of providing reliable, safe and trusted financial services. They symbolize our pledge to adhere to stringent regulatory standards, ensuring the utmost security for our customers’ transactions.”

Working in close partnership with regulators, the company aims to acquire all 53 US state and territory money transmitter licenses next year.

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

Greenpeace Africa Responds to the Final COP28 Outcome

December 13, 2023

The Greenpeace Africa through its Executive Director Dr. Oulie Keita has welcomed today’s agreement at the end of COP28 saying that it represents a hopeful stride in our collective journey limiting warming to 1.5 degrees. However, its true value will be measured by the tangible actions it prompts, particularly in the communities that have long borne the brunt of climate change. These communities have clearly articulated their needs: a swift, just, and complete transition away from fossil fuels. We stand in solidarity with them in advocating for this essential shift.

The major contributors to climate change must be held accountable for their actions and are made responsible for the environmental damage they have caused. Unfortunately, this agreement falls short in outlining specific strategies for financing this energy transition and ensuring that historical polluters accept and act upon their responsibilities.

Africa is blessed with abundant renewable resources, like solar and wind energy. Our investments must pivot decisively towards these sustainable avenues. Our collective future, our people’s well-being, and our planet’s health depend on it. As we move forward, let us unite as a continent not in pursuing short-term profits but in a shared commitment to the best interests of our people, future generations, and the very Earth we inhabit.

Africa’s path to true liberation lies in achieving climate justice. Fossil fuels represent not just an environmental threat but a perpetuation of oppression, exploitation, and a form of neo-colonialism. Our continent endures the harshest impacts of the climate crisis, and it is incumbent upon our leaders to pursue solutions that address these challenges and seek restitution for the harm inflicted”

Kaisa Kosonen, Greenpeace International said: “The signal that the fossil industry has been afraid of is there: ending the fossil fuel era, along with a call to massively scale up renewables and efficiency this decade, but it’s buried under many dangerous distractions and without sufficient means to achieve it in a fair and fast manner.

You won’t find the words ‘phase out’ in the text, but that’s what the equitable transition away from fossil fuels in line with 1.5°C and science will necessitate, when implemented sustainably. And that’s what we’re determined to make happen, now more than ever. The outcome leaves poorer countries well short of the resources they will need for renewable energy transition and other needs. For the many goals of the agreement to be realised, rich countries will need to significantly step up financial support and make fossil fuel polluters pay. Only last year the fossil fuel industry made $4 trillion in profits, and they need to start paying for the harm and destruction they have caused.

This is not the historical deal that the world needed: It has many loopholes and shortcomings. But history will be made if all those nearly 130 countries, businesses, local leaders and civil society voices, who came together to form an unprecedented force for change, now take this determination and make the fossil fuel phase out happen. Most urgently that means stopping all those expansion plans that are pushing us over the 1.5°C limit right now.”

Ghiwa Nakat, Executive Director, Greenpeace MENA, added that “COP28 has sent an unprecedented signal to the world that the curtain has been raised for the end of the fossil fuel era. We commend the efforts of the COP presidency to conclude with a final acknowledgement of the need to transition away from fossil fuels and to mobilise climate finance with more than $700million pledged to the operationalised Loss and Damage Fund. But communities on the frontline of the climate catastrophe need more than this. They need to see an unwavering and resolute commitment to a rapid, equitable, and well-funded phaseout of all fossil fuels – together with a comprehensive finance package for developing countries to transition to renewables and cope with escalating climate impacts. We leave Dubai knowing that hope is still alive but our mission is far from over”

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 to Accelerate Establishment of African Union Financial Institutions

The African Union is convening a consultative forum to assess the implementation of the African Union Financial Institutions (AUFIs). The meeting scheduled for 13- 15 December 2023 in Lusaka, Zambia will gather participants from the Ministries of Finance, Central Banks, African Union Organs and Specialised Agencies, Regional Economic Communities, Association of African Central Banks, African Securities Exchanges Association, and development partners will look into the economic and political challenges impeding the Member States ability to sign and ratify legal instruments establishing the financial institutions, constraints that restrain the continent to collectively pool their sovereignty in order to mutualise their efforts and resources for the establishment the AUFIs.

The forum will also formulate a strategy to generate the much-needed consensus and enhanced political will on key issues, and galvanize the momentum towards the establishment of the AUFIs.

The dynamics in the global economic and financial structures continue to present challenges that threaten the macroeconomic stability, economic growth, and sustainable development in Africa. The continent has taken on various economic and political integration initiatives, such as trade promotion, acceleration of inclusive growth and sustainable development to minimize the impact of the resulting instability. While trade integration has received significant attention and made great strides over the years, financial integration has progressed slowly.

In 2009 and 2014, the legal instruments for the establishment of the African Investment Bank (AIB) and the African Monetary Fund (AMF) were adopted respectively. However, none of the financial institutions has reached the requisite number of ratifications to enter into force. The inadequate funding for establishing the African Union Financial Institutions has been detrimental to the operationalization of the African Monetary Institutes, which is the first step toward the establishment of the African Central Bank (ACB). The urgency to expedite the establishment of the African Union Financial Institutions has been underscored by the changing global economic landscape due to the COVID-19 pandemic, climate change and insecurity which also calls for the revision of the legal instruments establishing the AU Financial Institutions.

Although challenges exist, there has been notable progress in the establishment of the AU Financial Institutions. Below are some of the notable progress;

In February 2020, the African Union appointed Nana Addo Dankwa Akufo-Addo, President of the Republic of Ghana, as the Champion of the African Union Financial Institutions. The Champion provides political leadership and awareness to accelerate AU Financial Institutions.

In February 2022, the Assembly of Heads of State and Government adopted the macroeconomic convergence criteria of the African Monetary Cooperation Program and mandated the AU Commission and the Association of African Central Banks (AACB) to monitor the implementation of the macroeconomic convergence criteria and report annually. In August 2023, the Assembly of Governors requested the AU Commission and AACB Secretariat to activate the Peer Review Mechanism for monitoring the implementation of the macroeconomic convergence. As such, the Secretariat was formed in October 2023 to oversee this work.

The 6th Specialized Technical Committee (STC) on Finance, Monetary Affairs, Economic Planning and Integration held in July 2023 recommended to the AU Commission to submit the revised statute of the African Monetary Institute to the AACB Assembly of Governors for consideration and endorsement. Following the Governor’s endorsement, the document has since been transmitted for the consideration and endorsement of the policy organs of the African Union.

Launch of the Africa Exchanges Linkage Project (AELP). The African Union Commission and the African Securities Exchanges Association (ASEA) signed the Memorandum of Understanding (MoU) in July 2022. The collaboration aims to scale up the AELP and transform it into a Pan African Stock Exchange (PASE). The AELP was launched in November 2022. So far, there are nine ( 9) participating Securities Exchanges: The African Union Commission will play an active and central role encouraging more countries to participate in the AELP, a path towards establishing PASE.

The progress made however remains insufficient to establish the AU Financial Institutions within the required timeframe. Member States are encouraged to take ownership and extend the political will to accelerate the implementation process. The establishment of African Union Financial Institutions can contribute significantly to the economic development, stability, and prosperity of the continent. The benefits include among others:

Economic Stability: The institutions can contribute to stabilizing the economic environment by providing mechanisms for fiscal and monetary coordination among Member States.

Increased Trade and Investment: By fostering financial integration, the institutions can facilitate cross-border trade and investment, which can lead to economic growth and sustainable development.

Reduced Dependency on External Sources: African Union Financial Institutions can reduce the continent’s reliance on external financial aid and loans, allowing for greater economic self-sufficiency.

Risk Mitigation: The institutions can help manage financial risks associated with currency fluctuations, inflation, and other economic challenges through mechanisms such as currency reserves and stability funds.

Infrastructure Development: The institutions will play a crucial role in financing large-scale infrastructure projects that benefit the entire continent, such as transportation networks, energy grids, and telecommunications.

Promoting Financial Inclusion: The institutions will ensure financial services are accessible to a larger portion of the population, promoting inclusive growth and sustainable development.

Crisis Response and Resolution: The institutions will serve as a platform for Member States to jointly respond to financial crises, providing a unified approach to problem-solving. The African Monetary Fund provides for the establishment of an African Financial Stability Mechanism that can cushion the continent in case of crises.

Capacity Building and Knowledge Sharing: The institutions will facilitate knowledge transfer and capacity building in areas of financial management and governance, benefiting Member States in the long term. Increased Influence on Global Financial Stage: A unified financial institution can give Africa a stronger voice in international financial organizations, allowing it to better shape global economic policies.

The meeting will be held at the Intercontinental Hotel, Lusaka, Zambia and will be broadcast live on AU digital platforms. Twitter. Facebook and Livestream. A recording will also be availed on AU YouTube channel.

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

Continued Reforms to Boost Macro-Economic Stability in Zimbabwe

Zimbabwean central bank governor John Mangudya

Zimbabwe’s economic growth is projected to slow to 3.5 percent in 2024, a decrease from 4.5 percent in 2023, as agricultural output is expected to suffer from depressed global growth and the predicted erratic and below-average rainfall caused by the El Niño weather pattern, according to the fourth World Bank Zimbabwe Economic Update (ZEU) launched today.

According to the report, titled Electrifying Growth Through Reliable and Universal Energy Access, Zimbabwe’s economy has seen a strong rebound since the COVID-19 pandemic, making it one of the fastest-growing economies in the Southern African Development Community (2021, 2022, and, so far, in 2023). In previous years, Zimbabwe faced increased global turmoil, while expansionary monetary policy has put initial pressure on inflation and the exchange rate. Yet, since June 2023, the Government proactively tightened monetary policy to bring down inflation and the parallel market premium. It also extended the use of US dollars as legal tender until 2030, further reducing policy uncertainty.

The ZEU finds that while Zimbabwe’s economic outlook appears moderate, it reflects continued global headwinds, structural bottlenecks, weather-related shocks, and price and exchange rate volatility. Prolonged global turmoil could result in a slowdown in global output, reduced trade and investment, increased volatility in commodity prices, and supply disruptions. Moreover, fiscal pressures may result in an expansionary economic policy. This could increase economic volatility, impacting private sector activity and growth. Climate change shocks may also lower economic output, particularly in the agriculture sector. Continued economic reforms will be essential to mitigate these risks, including fiscal adjustment and rebuilding foreign exchange reserves.

“To sustain economic growth, Zimbabwe must continue tackling its macroeconomic challenges. Addressing price and exchange rate volatility and public debt arrears will support economic growth and job creation. This will help the country address the poverty, vulnerability, and food insecurity rates, which remain high,” said World Bank Country Manager Eneida Fernandes.

The ZEU’s special chapter on the energy sector shows that, despite some recent achievements, the electricity sector still faces major challenges, with power outages of 12–14 hours a day. The report estimates that power shortages cost the country a total of 6.1 percent of GDP per year, comprising 2.3 percent of GDP in generation inefficiencies and excessive network losses, and 3.8 percent of GDP on the downstream costs of unreliable energy.

The ZEU provides the World Bank’s perspective on recent economic developments and outlook and discusses macroeconomic issues facing the country. The ZEU features a special chapter on the energy sector, which looks at recent developments and ways to attain the country’s target to ensure reliable energy and expand electricity services to most of the population by 2030. Economic Updates are a standard World Bank tool for macroeconomic and fiscal monitoring, the 2023 ZEU reviews developments in 2023 and emerging trends in 2024.

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