A new e-Commerce platform, ShopESpot, has launched and aims to provide SMEs, business owners, and entrepreneurs an easy-to-use platform to move their business into the online market. The impact of Covid-19 has caused many small businesses to reinvent themselves with a shift towards creating an online presence to manage sales and increase their customer reach.
Lisa Sukdev, Chief Sales and Marketing Director of ShopESpot
Lisa Sukdev, Chief Sales and Marketing Director of ShopESpot explains the importance of businesses creating an online presence to bolster their business revenue. “The Covid-19 pandemic has brought about disruptive innovation whereby trends, such as shifting business to an online platform, have been accelerated. So much has changed in such a short space of time, and it’s difficult for businesses to keep up at the required rate.”
Sukdev adds that ShopESpot has been created to help facilitate a smooth transition for businesses wanting to create an online presence. “ShopESpot has been developed as a way for any local business to quickly and easily adapt to e-commerce, ensuring they’re not left behind.”Offering an all-in-one service, the platform allows businesses to create their own website in record time. This will further allow SMEs to promote their products and services online.
With an online presence on ShopESpot, SMEs will be able to market the brand, showcase up to 1000 items for sale without the costs for developer services, embed a collection facility between company and consumer, select suitable delivery companies along with allocating sold items for delivery or pick up. Small business owners are able to sell products, online courses, and even membership services when utilising the ShopESpot platform.
Essentially, ShopESpot offers an affordable solution for SMEs to take their business online. Clients who make use of the 14-day trial will have access to a ShopESpot consult designer at a reduced fee. Business owners are able to select from three packages available with ShopESpot. Packages are based on the business’s requirements, size, and other factors. All the transactions are rand-based and when items are purchased by customers, payments are immediately deposited directly into SME and business owner’s bank accounts.
Features for SMEs
ShopESpot’s innovative platform has the following features: Data protection: ShopESpot provides 3D card payments which mean zero risks of cybercrime to the business owner or consumer. Easy migration of an existing website onto the ShopESpot platform. One-click to easily manage all social media and an expansive online presence and complete online reputational management on a single platform. Also it has an efficient use of staff and resources, with immediate returns.
It has been described as more than just a transactional platform. This is because the Customer Relationship Management (CRM) dashboard provided by ShopESpot provides companies with valuable data and insights. The data collected can assist the business to improve sales and the customer’s overall experience.
The CRM dashboard is able to provide the following services for SMEs: Print or allocate vouchers for consumers.Develop and manage customized loyalty offers.Automatically create client databases.Communicate with clients via SMS or email.Ascertain insights into clients’ behaviour for enhanced CRM.Track transactions from the order through to completion.
“We are rapidly heading away from physical stores towards a much more engaging online presence in South Africa, and this has many benefits for both retailers and consumers. With ShopESpot, we are looking to make this a hassle-free transition that continues to simplify business operations for all parties,” concludes Sukdev
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 United States International Development Finance Corporation (DFC) Board of Directors has approved its largest ever quarterly investments this quarter totaling more than $2.5 billion across nine projects that will advance development in Africa, Latin America, and emerging markets across the globe. An additional 30 investments totaling more than $1 billion were approved by the agency since its last quarterly Board meeting in June, bringing total investments approved over the quarter to more than $3.6 billion.
DFC Chief Executive Officer Adam Boehler
“The investments approved today mark the culmination of an exceptionally impactful quarter,” said DFC Chief Executive Officer Adam Boehler. “DFC’s work over the past three months will unlock billions of dollars in some of the world’s most impoverished countries. These projects will help stabilize communities across the world and prepare them to thrive in the years ahead. I am extremely proud of the DFC team and grateful to our agency’s many partners for their continued leadership in the face of the pandemic.”
Today’s Board meeting included the approval of two transactions totaling $1.7 billion that will help transform Mozambique, one of the poorest countries in the world. Several investments will also channel desperately needed capital into the hands of small business owners and other underserved borrowers in the wake of COVID-19, including in several markets across the Western Hemisphere that have been severely impacted by the pandemic.
The past quarter saw DFC continue to bring its investment tools to tackle complex development challenges, including through the first transactions structured by DFC’s Mission Transaction Unit—composed of staff from the United States Agency for International Development (USAID)’s former Development Credit Authority—which will bring needed capital to fragile states in Africa’s Sahel region. Other investments approved advance DFC’s foreign policy mandate, from strengthening energy security in Ukraine by facilitating increased energy imports from the United States to supporting investments in critical minerals.
Many of the approved investments advance DFC’s 2X Women’s Initiative and the Administration’s broader Women’s Global Development and Prosperity Initiative (W-GDP). The investments also support the agency’s Portfolio for Impact and Innovation (PI2), Health and Prosperity Initiative, and Connect Africa initiative as well as the Administration’s Prosper Africa and América Crece initiatives.
More than 60 percent of investments approved by DFC this quarter are in low- and lower middle-income countries. Catalyzing development through energy production in Mozambique: Up to $1.5 billion in political risk insurance will support the commercialization of natural gas reserves in Mozambique’s Rovuma Basin—a project with the potential to transform the country into a major energy exporter. When complete, the project is expected to increase Mozambique’s GDP by an average of $15 billion per year, positioning one of the world’s poorest countries to achieve lasting, long-term economic growth. The project will advance development across Mozambique, with significant associated GDP benefits expected to accrue to sectors beyond oil and gas. DFC’s political risk insurance will support the development, construction, and operation of an onshore liquefaction plant, along with supporting facilities.
Building power infrastructure in Mozambique: An up to $200 million loan to Central Térmica de Temane will finance the development, construction, and operation of a 420-megawatt power plant and 25-kilometer interconnection line in Mozambique. Power will leave the plant through a 560-kilometer transmission line that was supported with technical assistance from the U.S. Government-led Power Africa initiative. The plant will diversify the country’s energy mix, reduce the cost of electricity, and utilize the domestic gas supply to increase power generation in a country that faces one of the lowest electrification rates globally. It will also advance the Government of Mozambique’s plans for development of the national electricity system.
Leveraging mobile technology to deliver essential goods in Kenya: $5 million in equity will help Copia Global grow its mobile commerce platform and logistics network, which delivers essential goods like food, personal care products, and school supplies to low- and middle-income consumers in rural and peri-urban areas of Kenya. Copia’s business model is designed to reach underserved communities including women and individuals earning less than $10 per day, with approximately 70 percent of customers employed by small businesses or farms.
Advancing energy independence in Ukraine: $62 million in additional political risk insurance will support the expansion of Energy Resources of Ukraine (ERU) Trading, which currently imports, stores, and sells approximately 10 percent of Ukraine’s total annual gas needs. The project will advance energy independence in Ukraine by diversifying gas imports and reducing reliance on Russia.
Promoting financial market stability across Africa: An up to $250 million tier-2 capital loan will further strengthen Africa Finance Corporation (AFC), enabling it to continue serving new and existing borrowers across the continent as a low-cost source of financing in the wake of COVID-19. With DFC’s support, the majority private sector-owned, African-led development finance institution will continue to prioritize debt and equity investments in critical infrastructure projects, including energy, telecommunications, and transportation.
Boosting small businesses in Mexico: An up to $100 million loan to Crédito Real will support loans to small and medium enterprises (SMEs) in Mexico, with a focus on reaching businesses owned or led by women. The project will address a significant credit gap faced by small businesses in Mexico, where, even before the severe economic contraction from COVID-19, only an estimated 15 percent of SMEs’ financing needs were met.
Empowering women in Rwanda and Kenya through digital access to health products: $1 million in equity will help Kasha expand its e-commerce platform, delivering critical health and personal care products—including personal protective equipment—to women and girls across Rwanda and Kenya. Enabling greater access to personal care products will also reduce school absences for girls, enabling them to improve their education. Kasha’s mobile platform is accessible with or without internet or a smartphone, selling products directly to low- and middle-income women in both rural and urban locations. The project, which marks the first DFC investment to meet all of the 2X Criteria, is also expected to create over 350 formal jobs, of which 90 percent are expected to be filled by women.
Advancing financial inclusion in Colombia: An up to $250 million tier-2 capital loan to Banco Davivienda will improve the availability of small business and low-income housing loans in Colombia, where limited access to finance remains a major obstacle to economic growth and has only been exacerbated by COVID-19. The bank will prioritize loans to women and women-owned SMEs.
Supporting economic recovery in Costa Rica: An up to $150 million loan will enable BAC San José to expand lending to underserved borrowers in Costa Rica, dedicating at least half of loan proceeds to women and 30 percent to SMEs. DFC’s financing will inject desperately needed liquidity into Costa Rica following a severe outbreak of COVID-19 that has led to widespread and prolonged restrictions to economic activity.
Additional projects approved by DFC since its last quarterly Board meeting include: Accelerating pandemic recovery in Brazil: A $400 million loan to Banco Itaú will support lending to SMEs following a severe outbreak of COVID-19 in Brazil, with a focus on reaching women and the most underdeveloped states in the country. DFC’s financing was approved under its COVID-19 Rapid Response Liquidity Facility.
Uplifting refugee communities around the world: A $20 million loan will help the Kiva Refugee Investment Fund provide microloans to refugees across the globe, addressing a major barrier for individuals whose perceived risk often prevents them from accessing finance.
Fostering stability through credit access in fragile states in West Africa: A $14.75 million loan portfolio guaranty to Stitching Cordaid will support financing for SMEs and microfinance institutions that are creating economic opportunity and building more prosperous communities in Burkina Faso, Sierra Leone, Guinea, and Mali. The transaction uses a blended finance model, including first-loss capital to be provided by USAID’s West Africa Trade and Investment Hub.
Preparing smallholder farmers for severe weather globally: A $37.5 million loan will help the InsuResilience Investment Fund expand further access around the world to insurance against extreme weather and other natural disasters that impact crop yields, most notably for smallholder farmers.
Incentivizing loans to women in Costa Rica: A $15 million loan to Banco Improsa will enable loans to SMEs in Costa Rica, with an interest rate structure that incentivizes the bank to lend to businesses owned or led by women.
Delivering critical services to underserved communities across the world: A $15 million loan to Global Partnerships will deliver life-changing products and services such as microfinance, healthcare, and technology in mostly low-income and lower middle-income countries in Africa, Latin America, and the Caribbean, with a focus on reaching women.
Strengthening the agricultural value chain in India: A $20 million loan will help Samunnati expand financing and technical assistance to low-income farmers and enterprises throughout the agricultural value chain in India so that they can increase productivity, enhance their earnings, and reach new markets. Helping the world’s small businesses rebound from COVID-19: A $45 million loan will support a debt fund focused on helping MSMEs in mostly low- and lower middle-income countries weather the challenges of COVID-19.
Supporting microenterprises with mobile money in Kenya: A $2.9 million loan guaranty will help 4G Capital provide affordable microloans that are disbursed to and repaid by entrepreneurs and small businesses in Kenya through a mobile banking platform. Bolstering economic growth in an underdeveloped region of Brazil through investment in critical minerals: A $25 million investment will enable TechMet Limited to boost the production capacity of a cobalt and nickel mine in Piauí, Brazil, creating jobs in one of the most underdeveloped states in the country while advancing high U.S. standards.
Developing Vietnam’s aquaculture industry: An $11 million loan will enable Australis Aquaculture to expand an open-water fish farm in Vietnam—introducing new technologies, helping the country diversify its economy, and creating an expected 400 local jobs.Investing in the world’s women through the pandemic: A $20 million loan will help SEAF COVID-19 Global Gender Lens Emergency Loan Finance LLC deliver critical financing to SMEs around the world that are owned or led by women, who often bear the disproportionate impacts of crises like COVID-19. The majority of funds are expected to support borrowers in low- and lower middle-income countries around the world.
Increasing power generation capacity in India: A $53.5 million loan to ReNew Power will support the development, construction, and operation of a 105-megawatt solar power plant in Gujarat, India. Providing affordable homes in El Salvador: A $10 million loan will help La Hipotecaria provide affordable mortgages in El Salvador following the outbreak of COVID-19, which has only exacerbated the housing gap faced by low-income communities around the world.
Supplying critical agricultural inputs in Zambia: $32 million in political risk insurance will support the expansion of Zambia Seed Company, which produces seeds that it distributes to smallholder farmers in Zambia and across Sub-Saharan Africa.
Addressing a finance gap across Latin America: A $20 million loan to Locfund Next will extend scarce local currency financing, combined with technical assistance, to microfinance institutions that serve underbanked communities across Latin America.
Empowering the diaspora community in Bosnia and Herzegovina: A $5.18 million loan portfolio guaranty will support lending from ProCredit Bank to MSMEs owned by family of the Bosnian diaspora or members of the Bosnian diaspora who have recently returned to the country. These groups face major barriers in accessing finance due to limited collateral and documentation.
Bridging the credit gap in Mexico: A $14 million loan guaranty will enable Banco Compartamos to expand microlending in Mexico, especially to women, who represent almost 90 percent of the bank’s current microfinance portfolio.
Financing rooftop solar for SMEs in India: With the support of USAID’s India Mission, a $12.5 million loan portfolio guaranty will help finance investments by Indian SMEs in renewable energy solutions, including rooftop solar installations, enabling businesses to access reliable power and cut costs.
Advancing fintech solutions in rural Colombia: A $9.75 million loan guaranty will enable Finsocial to expand its digital lending platform, which serves teachers and pensioners with otherwise limited access to finance in rural and low-income areas of Colombia.
Bolstering farming output in Namibia: $36 million in political risk insurance will help Achill Island Investments grow its table grape farm in Namibia, creating jobs and stimulating the local economy.
Injecting critical liquidity into India’s energy sector: A $75 million loan to ReNew Power will address liquidity needs resulting from COVID-19, enabling shovel-ready energy projects to move forward across India.
Meeting the financing needs of rural populations in Ecuador: A $9.75 million loan guaranty will enable Cooperativa de Ahorro y Crédito Jardín Azuayo to expand financing in rural areas of southern Ecuador, with a focus on reaching those owned or led by women.
Promoting financial inclusion in Cambodia: A $50 million loan to Hattha Kaksekar Limited (HKL) will expand microlending to women and MSMEs in Cambodia, especially in rural areas of the country.
Boosting growing businesses in Mexico: A $45 million loan will help Mexarrend extend lease financing to SMEs in Mexico, enabling businesses in the healthcare, consumer, and manufacturing sectors to acquire assets that accelerate growth and productivity.
Spurring economic activity in Ukraine: A $27 million loan will support the construction and operation of a Sheraton hotel in Kyiv, Ukraine that will create jobs, build local supply chains, and encourage trade, investment, and economic growth.
Serving the underbanked in El Salvador: A $9.75 million loan guaranty will help Sociedad de Ahorro y Crédito Apoyo Integral expand mortgage loans and other credit solutions to low-income individuals in El Salvador, mostly in rural areas of the country.
Channeling capital to highly impactful ventures in India: A $15 million loan to Sabre Partners Fund and $10 million co-investment arrangement will finance investments in SMEs that are introducing innovative solutions in highly impactful sectors such as healthcare, financial services, and technology across India.
Generating solar power in Costa Rica: A $15 million loan will help GoSolar develop, install, and finance rooftop solar systems that will deliver affordable power to homeowners and businesses in Costa Rica.
Expanding women’s access to microfinance in India: A $14.625 million loan guaranty will enable Asirvad to expand its microfinance portfolio to rural, low-income women across India.
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’s largest e-commerce firm and first unicorn, Jumia, has embarked on massive expansion of its operations in Ghana. This aims to cut inefficiencies and address complaints by customers who prefer to pick their orders instead of hand delivery. The introduction of new pick-up locations across Ghana according to Jumia, is something the company hopes will allow customers to receive their orders faster while saving money.
Lionel Mobi, COO of Jumia Ghana.
With over 20 pick up stations already operational in Accra and Kumasi, new stations will open in the Western and Central Region. Preparations to expand to Koforidua, Ho, Aflao and Tamale are also in the pipeline.
The eCommerce reports that more than 25% of its consumers are from remote, rural areas who haven’t always been afforded the choice to find more affordable products. However, with the introduction of these pick-up stations, consumers will be able to find MORE flexible payment options.Consumers in the Western and Central Regions can now also choose the cash on delivery payment mode, JumiaPay or debit card.
“At these new pick up stations, consumers can pick their orders, know more about Jumia, order and pay directly. We are very committed to ensuring that our consumers enjoy better pricing while saving money on Jumia,” says Lionel Mobi, COO of Jumia Ghana. “Easy access to information and picking up their orders safely is important to us during this pandemic. We have ensured that all pick-up stations and staff observe the needed COVID-19 protocols.’’
Jumia announced that it has suspended all e-commerce operations in Tanzania – this comes just two weeks after Africa’s ‘Amazon’ revealed its exit from Cameroon – making it the second African market to lose the site in less than a month. In a statement Jumia says, “Based on our review of the path to success, we have made a difficult decision to cease our operations in Tanzania as of 27th Nov 2019”. “While Tanzania has strong potential and we’re proud of the growth we’ve collectively seen stemming from Jumia’s adoption, we have to focus our resources on our other markets. This decision isn’t easy but will help put our focus and resources where they can bring the best value and help Jumia thrive.”
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 startups are trudging on inspite of the negative impacts of the Covid-19 pandemic on businesses, and many of them are using the opportunities provided by the market disruptions to expand into other markets within the continent. This could be gleaned from the number of successful funding that has taken place since the great lockdown. The latest on the list is South African pay-as-you-go (PAYG) solar energy startup Yellow which is embarking on an expansion drive which will see it berth in Malawi and Uganda. The US$3.3 million Series A funding round it successfully achieved will aid its scaling-up its footprint to over 100,000 customers in Malawi and Uganda.
Founded in 2017, Yellow has enabled 30,000 low income, rural households to access electricity through solar home systems on a financed basis. In May, the company closed a US$3.3 million Series A round to grow its footprint, with investment coming from Platform Investment Partners (PIP), Ruby Rock Investment and previous investors LBOS. Yellow will use the funding to grow its development and operations teams, and rapidly scale its off-grid energy offering. However, it also plans to look at broader opportunities its digital distribution platform offers, in consumer items and financial services.
“Platform Growth seeks to invest in businesses that combine strong management teams with unique technology. In Yellow we feel we have found this combination and have been hugely impressed by the deployment of Yellow’s Ofeefee software to solve complex problems in Malawi and Uganda. We are proud to provide capital alongside our investment partners, Ruby Rock, in order to grow Yellow into one of Africa’s leading digital retailers,” said Michael Stannard, chief operating officer (COO) of Platform Investment Partners.
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
As the African insurance market grows, especially with the impact of the Covid-19 pandemic on businesses, the African Trade Insurance Agency (ATI) has commenced a management reshuffling aimed at expansion and embracing innovation. This informed the recent approval by the Board of Directors for a few changes within the Management team starting with the appointment of a new chief executive officer (CEO) in the person of Mr. Manuel Moses. Mr Moses is a veteran of the International Financial Corporation, an arm of the World Bank Group. The new CEO will assume office on 1 November, 2020 but in the interim, Ms. Toavina Ramamonjiarisoa, ATI’s Chief Financial Officer, will fill the position of Acting CEO; Mr. Benjamin Mugisha has been confirmed as the substantive Chief Underwriting Officer (CUO). Mr. Mugisha, a Senior Underwriter, who joined ATI in 2010, has been Acting CUO for the past year; The Board paid tribute to Mr. Cyprien Sakubu’s dedication during his 19 years of service on the occasion of his retirement. Cyprien Sakubu’s most recent role was General Counsel and Corporate Secretary. The African Trade Insurance Agency (ATI) has confirmed key Senior-level positions that will play an important role in steering critical support to member governments.
Chief executive officer (CEO) African Trade Insurance Agency (ATI), Mr. Manuel Moses
During its recently concluded virtual 20th annual meeting, ATI’s shareholders ratified the appointment of Mr. Manuel Moses as the new Chief Executive Officer (CEO) based on the Board’s recommendation. Mr. Moses is a Zimbabwean national, who brings 15 years of experience from the IFC, where he most recently held the post of Country Manager of Kenya. He holds an MBA from the University of Leicester in the UK and a BSc in Civil Engineering from the University of Zimbabwe. Mr. Moses will assume office on 1 November, 2020.
In the interim, the Board of Directors has placed ATI in very capable hands with Ms. Toavina Ramamonjiarisoa, the Chief Finance Officer (CFO) taking the reins as Acting CEO. Ms. Ramamonjiarisoa has been an integral part of ATI’s management team since she was appointed CFO in 2011, where, in this position, she has helped guide the institution towards its current eight-year record-setting growth rates along with ensuring maintenance of ATI’s investment grade ratings from both S&P and Moody’s (A/Stable and A3/Stable respectively). While Ms. Ramamonjiarisoa is Acting CEO, Mr. Rodgers Siachitema has been approved as the Acting CFO.
ATI’s business operations also received a boost with the appointment of Mr. Benjamin Mugisha as the substantive Chief Underwriting Officer (CUO). Mr. Mugisha, who has been the Acting CUO for one year brings considerable experience to the position. He joined ATI in 2010 and has served various functions including as ATI’s Uganda Representative, where he was responsible for field offices in Burundi, Rwanda and Uganda; and, subsequently as Senior Underwriter, where he managed ATI’s day-to-day business and a portfolio of international financial partners.
The Board also recognized the substantial contribution and 19 years of service to ATI by Mr. Cyprien Sakubu, the General Counsel and Corporate Secretary, who has recently retired from the institution. The Board has constituted a special committee to oversee the recruitment of a new General Counsel and in the interim, Ms. Elizabeth Mutafungwa, the current Legal Expert, has been appointed Acting General Counsel.
ATI is increasingly recognized by the IMF, S&P, Moody’s and others as a strategic development institution for Africa that is well-positioned to provide effective support to its member governments through the pandemic. Specifically, with the support of ATI, governments are able to manage their growing debt levels by re-profiling their costlier and riskier debts and replacing them with longer-term, cheaper debts from international commercial lenders. ATI is currently insuring 1 to 2 percent of the GDP of its member countries and is expected to facilitate US$2 billion of additional investments to the continent in the next 12 to 24 months.
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 Green Cluster of SMEs in Côte d’Ivoire has won the 2020 Green Champion a prize for the best technical and financial partner committed to promoting the green economy and supporting small and medium-sized enterprises (SMEs) toward a low-carbon transition. The Green Awards acknowledge and honor the actors that have made a significant contribution to the development of green SMEs.
Minister of Trade, Industry and Promotion of Small and Medium-sized Enterprises(SMEs), Félix Miézan Anoblé
The prize was awarded on 30 July at the Green Awards, an initiative launched in 2019 under the sponsorship of the Ivorian Minister of the Environment and Sustainable Development Prof. Joseph Seka Seka, with support from the country’s Minister of Trade, Industry and Promotion of Small and Medium-sized Enterprises, Félix Miézan Anoblé.
Despite the onset of the COVID-19 pandemic, the Green Cluster organized a follow-up event, which recognized the continuing importance of sustainable development, the green economy, and other measures to fight climate change. The Green Awards represent one pillar of the “Green Days” that were held virtually in Abidjan from 28 to 30 July. The other pillars are Green Talks, and a Green Marketplace. The Green Awards acknowledge and honor the actors that have made a significant contribution to the development of green SMEs and the emergence of a sustainable low-carbon green economy resilient to climate change.
“As an innovative approach of building on SMEs’ resilience and commitment toward a post-COVID green and sustainable economy, the Green Days in Abidjan awarded the African Development Bank with a Green Award prize for their key contribution to the development of a green economy and green SMEs,” said Marc Daubrey, Green Cluster – CI President.Dr. Arona Soumaré, The Bank’s regional principal climate change officer, who attended the event said, “We are much honored to receive this Green Award. Enabling eco-innovative SMEs to take into account climate change risks and opportunities, is a key step toward achieving a green economy in the context of the post-COVID-19 recovery. For this reason, the African Development Bank is leading the way to strengthen the technical capacities of SMEs and is deploying a range of climate finance mechanisms to respond to their needs for both competitiveness and inclusive growth.”
The Bank’s Climate Change and Green Growth department has provided ongoing technical support to the organization of the Green Days in the form of presentations and the mobilization of experts.
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 Covid-19 pandemic has accelerated the adoption of e-commerce in a way no company could have imagined. In fact, in many instances, it has brought three- to five-year sales projections forward in just a matter of months. Many businesses are already living in the future. A good example is Amazon.com, which has experienced record levels of demand, comparable to a usual Christmas period. Not only has its online retail operation thrived, but its video and Web services have also flourished during the lockdown periods around the world.
Gerrit Smit, head of equity management UK at Stonehage Fleming
Then there are digital payment companies such as PayPal, which has recorded a remarkable increase in transactions across its network. It took on 7.4m new customers in April alone — a 135% increase. Those new customers are doing more transactions than ever and the business is experiencing retention rates to match.
This must be one of the biggest economic shifts in the world for a long time, if not ever. Nor is this trend likely to reverse materially…Visa, too, is benefitting. Quite apart from an increase in online purchases, hygiene-conscious consumers’ reluctance to touch cash has further boosted business. This is a game-changer for all payment companies whose biggest competitor is cash.
E-commerce is perhaps the most striking example of structural shifts in the economy. Since the beginning of Covid-19 alone, e-commerce penetration as a percentage of retail sales in the US has increased in a matter of three months as much as it previously took a decade to achieve. This must be one of the biggest economic shifts in the world for a long time, if not ever. Nor is this trend likely to reverse materially once economies have fully opened and the virus has receded.
Economic shift
With millions of people working and learning from home, consumers have been forced to rely on e-commerce, and have come to understand the benefits of obtaining goods and services through the Internet. These include variety, safety, convenience and certain cost savings.
From an investor’s perspective, the economic shift to online is revitalising important investment opportunities. In addition to large retailers like Amazon and payment systems like PayPal and Visa, technology companies that enable working from home have also benefited. Consider 5G network providers, data and voice providers, cloud services, data handling and office automation services. More time at home has also meant more home cooking, to the benefit of many food and spices companies, as well as an increase in home design and décor products and services as people adapt their homes for new requirements.
Entertainment and streaming services have also benefited from people spending more time at home, as have online exercise offerings. And of course, this has translated into an increased interest in leisure and sports clothing lines.Investors will find no shortage of newly energised investment opportunities. High uncertainty and market volatility, however, will remain a challenge. Good stock selection is as critical as it has ever been. Investors should be very selective with their investments – buying only quality businesses with strong balance sheets.
Gerrit Smit is head of equity management UK at Stonehage Fleming. He manages the Stonehage Fleming Global Best Ideas Equity Fund
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
As Jumia’s shares experienced momentary surge due to the rise in Covid-19 induced purchases after going through a rough patch last year, Mobile Telecoms Network (MTN) is planning to latch on this window to sell off its shareholding in the company. Sources at MTN say that the Telco may also sell off its shares in IHS Towers as part of plans to refocus on its core sector. MTN Group Limited holds $243 million interest in Jumia Technologies AG and had previously marked the online retailer as a non-core business. With Jumia’s shares surging to 142% this year, recovering from a dip in 2019, MTN sees this as the best opportunity to offload its shareholding though the management is yet to arrive at a final decision on this.
Jumia founders, Sacha Poignonnec and Jeremy Hodara
This news according to analysts may have a negative impact on Jumia’s recovery as MTN is viewed as one of Africa’s most admired brands. Jumia operates in 14 African countries including Nigeria and Ivory Coast where Amazon still lacks distribution infrastructure. Headquartered in Germany, Jumia is run by its two French founders, Sacha Poignonnec and Jeremy Hodara but has run into murky waters in the last two years owning to deteriorating business climate in the continent and regulatory constraints. This led to its dropping below its initial public offering price in 2019 after improper transactions in its Nigeria business were uncovered.
As MTN faces growing competition across the continent, observers say that the company is having a rethink about its investment across many sectors termed non-core to its primary operations. This they believe is responsible for the flurry of divestment talks within its boardroom in Johannesburg, South Africa. A source at the company says this strategy which has been ongoing through the disposing of non-core assets aims at reducing debt and driving future growth, especially as some of such investments have been mired in debt.
This informs the talks around selling off its 29% stake in IHS Towers. The MTN has generated $812 million in asset sales that included selling its towers holdings in Ghana and Uganda to American Towers Inc. The company plans include bidding for a license to enter Ethiopia, one of the largest markets that have not yet privatized its telecommunications industry. With over 100 million people, Ethiopia is Africa’s second largest country by population after Nigeria and a potentially huge market with one of the non commodity driven fastest economic growth in the continent, with over a decade running. MTN believes it can replicate in Ethiopia what it achieved in Nigeria, especially as the country still has a single carrier with opportunities for competition.
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
Management consulting company, Africa Foresight Group (AFG), based in Accra, Ghana, which has developed a platform offering access to a network of freelance management consultants in Africa, has secured a seed funding round of over US$700,000.
Yasmin Kumi, CEO, Africa Foresight Group
“It has been a journey of three years to get here and we are excited for what lies ahead. I am proud that a majority of our capital comes from Africa-based investors who believe in the importance of what we do full-heartedly. We are a business that can drive both significant impact for Africa’s private sector and financial return for our shareholders,” said Yasmin Kumi, the startup’s founder.
The startup will use the fund to expand across Africa.
Why The Investors Invested
Investor Consonance Investment Managers has been very active on the African startup scene. Headquatered in Mauritius, but operating from Lagos, its notable investments include its $2 million co-investment in Ethiopian edtech startup Gebeya; its $1 million participation in the Nigerian healthtech company Lifestore in February this year; its co-funding in another Nigerian startup VerifyMe. Other notable startups on its portfolio include MDaas Global; She Leads Africa; Curacel, among others.
“We…believe strongly in AFG’s vision of building the largest managed marketplace of freelance talent in Africa to bridge the talent gap. AFG ticked attributes we look out for, including a strong women-led management team solving critical problems in a scalable way and a three-year track record in their sector. We are proud to support their vision and journey,” Mobolaji Adeoye, managing director at Consonance Investment Managers, said.
Founded in 2016 by Yasmin Kumi, who is also an Executive Director of the Harambe Entrepreneur Alliance — which she led from September 2016 to September 2017 — AFG allows leading companies, investment funds and development partners to hire teams to make the right strategic decisions and achieve sustainable success, utilising an online platform and machine learning to build an entirely new model for consulting in Africa.
The startup’s platform matches teams with open project opportunities, manages performance data, and supports the invoicing and payments process, amongst others.
Currently, AFG claims to have finished more than 120 engagements across Africa in Ghana, Nigeria, Ivory Coast, Kenya, Ethiopia, Namibia, Rwanda, South Africa and Tanzania since inception with a team of more than 100 consultants — “foresighters”. The startup claims its clients include leading private equity funds from the US and the UK, development finance institutions from Germany and within Africa as well as large family business groups from across the continent.
“We are on a quest to build the largest talent network in Africa to elevate the people and businesses of our continent,” said Yasmin Kumi.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
As countries across the world cautiously open their economies after the lockdown, East African countries whose economies depends so much in tourism have opened up their international skies to resume flights. The decision by Kenya and Rwanda to reopen their skies amidst a surge in COVID-19 cases follows similar decisions in Tanzania and South Sudan in June. Kenya opened the airports for domestic flights since July 15, a fortnight after President Uhuru Kenyatta announced the phased reopening and said the country would adopt a wait-and-see approach to any changes in the preventative measures it has instituted since March.
In late July, Kenyan Transport Cabinet Secretary James Macharia has announced 11 countries that will be allowed to originate internationally, but added this list would be reviewed daily. Of its five neighbors, Nairobi would allow flights from Uganda and Ethiopia, as well as its East African Community partner Rwanda. Tanzania, understandably was not on the list as the extent and rate of infections in the country is unknown.Tanzania stopped announcing official figures of the pandemic in April, and while reopening the country in early June, President Magufuli declared that it was coronavirus-free. Although the list also includes Uganda whose President, Yoweri Museveni put up stringent measures to tackle the spread of the virus, but in his latest update, President Museveni said Uganda’s borders will remain closed “because there is so much chaos in some of these countries abroad.”
Ethiopia’s response has been more measured, as its airline continued flying to destinations that still allowed flights. By early July, the country’s airline was flying to about 40 destinations.
While international passengers entering Kenya and Rwanda will be required to show result of a negative Cocid-19 test, the two countries’ new entry rules differ significantly on the specifics. For example, while Kenya will accept test results produced seven days to arrival, Rwanda’s rules require test results produced 72 hours before. The Kenyan government said it will neither quarantine or retest passengers unless they show symptoms and will rely mainly on temperature checks to determine high-risk travellers. Rwanda however, will re-test all passengers on arrival, and quarantine them for a day awaiting results. According to at Ndegwa Karanja, the acting managing director for Kenyan low-cost carrier Jambojet, the measures adopted by Rwanda and Uganda will definitely make it hard for passengers and it will affect patronage making them unprofitable for some airlines. Adding that “we are accessing the demand and return conditions. With mandatory quarantine in Rwanda and Uganda, the demand will be quite low,”
Despite these differences in approach, the reasons for reopening are mostly the same, the region’s economies it must be said have taken a battering when the pandemic made landfall in the region four months ago, straining public health resources and requiring extensive lockdowns and testing.
Initially, Kenya’s President had said that his administration “opted for the health over economy argument, but added the country had since reached a reasonable level of preparedness across the board to allow a phased re-opening. With about 20,000 confirmed cases, Kenya has the highest number of Covid-19 cases in the region. But the economic argument of reopening its borders is driven mainly by its dependence on tourism as one of its main foreign exchange earners, while Rwanda has been building a brand as a conferencing hub. How these new measures will be accepted by both airlines and passengers remains to be seen.
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
