AfCFTA - Afrikan Heroes

SME’s Should be at the Heart of Efforts to Accelerate Trade and Investment in Africa

November 28, 2020

As African countries grapple with rebooting their economies post-Covid-19, analysts have called on governments to make small and medium scale enterprises the engines of their economic reinvigoration effects to serve as complementary to the African Continental Free Trade Agreement (AfCTA) which comes on board in January. This they say is because the AfCFTA will not in one dramatic swoop alter existing commercial and economic realities on a vast scale, but its implementation could lead the recovery efforts from the COVID-19 crisis.

This was the submission of industry experts from across the continent who met within the week for a virtual discussion focused on resetting, retooling and restarting regional integration in Africa in the wake of the COVID-19 pandemic, underscored the importance of putting small scale traders at the heart of any initiatives. The joint webinar, organized by the African Development Bank and Korea Customs Service (KCS), looked at service sectors, e-commerce, digital platforms and value chain development as critical factors for accelerating trade and investment in Africa against the backdrop of the global pandemic. The webinar was delivered in three sessions, moderated by Stephen Karangizi, Director, African Legal Support Facility; Dr. Stephen Karingi, Director at Regional Integration and Trade Division of UNECA and Acha Leke, Senior Partner at McKinsey.

History has demonstrated the success of countries and businesses that seize new opportunities during times of crisis, said Sukhwan Roh, Commissioner of the Korea Customs Service. “The COVID-19 pandemic has completely changed health and livelihoods of individuals across the world in less than a year,” he said. “Korea wishes to share all the achievements in system enhancement utilizing new technologies with African countries.”

The workshop’s audience heard how regional integration is increasingly central to the continent’s future economic prospects and to attracting foreign direct investment. The African Continental Free Trade Agreement, (AfCFTA), already ratified by 30 countries, is expected to come into effect on 1 January, 2021. Uniting all 55 member states of the African Union, the pact will create a market of more than 1.2 billion people, including a growing middle class, and a combined gross domestic product (GDP) of over $3.4 trillion.

COVID-19 has deepened pre-existing trade frictions within the continent yet offers important growth opportunities and great stories of innovation and highlights the importance of protecting Africa’s place in local value chains, said Anabel Gonzalez, Senior Fellow, Peterson Institute for International Economics, with the need to “put small scale traders at the heart of the effort.” She urged governments to strengthen national agencies to provide support to small traders.

“AfCFTA creates a new trade and integration reality…integrating unequal partners across the continent,” said Trudi Hartzenberg Executive Director of the Trade Law Center (TRALAC). Trade facilitation enjoys specific focus within the AfCFTA, with digital, e-payments, and e-commerce particularly important, she added, citing a 2020 WTO report that emphasized education and healthcare as fundamental to industrialization.

From the outset, the African Development Bank has lent strong support to the AfCFTA, financing the set-up of its secretariat as well as supporting member countries with technical assistance to comply with a range of AfCFTA regulations, said Bank Vice President, Infrastructure, Private Sector & Industrialization, Solomon Quaynor in his introductory remarks read by Abdu Mukhtar, Bank Director, Industrial and Trade Development Department.

Still, Quaynor warned, post-crisis recovery efforts are likely to be slow. “The AfCFTA will not in one dramatic swoop alter existing commercial and economic realities on a vast scale. However, through strategic measures and the right investments, policy frameworks and political backing, intra-African trade will be enhanced. “

Presentations provided examples from Ghana and Zambia of strategies the private sector can adopt to leverage the AfCFTA within the context of the pandemic. Ghana previously imported most of its Personal Protective Equipment or PPE, but, since the pandemic, the government galvanized 14 local garment firms to manufacture PPE. These firms now produce 1,000 items daily, according to Ghana’s deputy trade minister, Robert Ahomka Lindsay. The development has created 10,000 jobs. “Traditional value chains have been challenged… it made us realise that we cannot rely on those value chains,” Lindsay said.

Some of the worst-affected sectors in Africa such as tourism, aviation and education, had shown resilience, for example, in the food industry, which harnessed e-commerce for marketing during the pandemic, noted Kenneth Baghamunda, Dir. General, Customs and Trade, East African Community Secretariat. Zambia’s success with cashless payment solutions at its border and other innovations since COVID-19 was another example of favourable results.

“We need to see which value chains need to be developed and we need to interconnect our policies with the right institutional framework,” he said.

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

AfCFTA Just Launched Its First Challenge For African Startups

The operational phase of the African Continental Free Trade Agreement (AfCFTA) is yet to kick off but expectations are already high. In its latest move to ease business frictions on the continent, AfCFTA has announced it is organising a vision challenge to boost access to funding and technology capacity for small and medium-sized enterprises (SMEs) and innovators across Africa.

Here Is What You Need To Know

In a statement, AfCFTA said the vision challenge is organised in partnership with Sankoree Institute of AfroChampions and in support of African Union (AU) open corridors initiative.
It said African startups, SMEs, innovators and entrepreneurs must submit solutions to challenges posed by some of Africa’s foremost political leaders to secure investment.
The development finance institutions and banks that will serve on the institutional jury were listed to include African Development Bank (AfDB), Trade and Development Bank (TDB), African Export-Import Bank (Afreximbank), Equity Bank; Ecobank, Arab Bank for Economic Development in Africa (BADEA), Africa Finance Corporation (AFC) and Commercial International Bank (CIB).
The two rolling deadlines for submission are November 30, 2020, and December 22, 2020.

“It is easy to showcase your solutions and attract support from a broad array of development finance institutions we have approached by simply visiting www.afcfta.blog/challenge,” Francis Mangeni, director of trade promotion and programs at AfCFTA secretariat, said:

“Once in the portal, you can obtain an AfCFTA number from the main AfCFTA App, allowing you to participate freely in the contest to raise resources to advance any solutions you are working on that can propel AfCFTA forward.”

AfCFTA African startups AfCFTA African startups

AfCFTA said the super-app serves as a base for a continental business registry, trade directory, cross-border trade facilitation network, and a dashboard for the private sector to interact with upcoming Africa trade observatory.
AfCFTA said an extraordinary summit of heads of state and government will hold on December 5, 2020.

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

‘Travel Pass’ to accelerate AfCFTA implementation

October 28, 2020

One of Africa’s leading telecoms firm,Econet, has called on African governments to embrace the Africa Centres for Disease Control and Prevention (Africa CDC)’s Trusted Travel Platform to protect local economies and lives as the continent prepares for the implementation of the African Continental Free Trade Area (AfCFTA) by January 2021.

Econet, which developed a mobile app called the ‘Travel Pass’ that is embedded on Africa CDC’s Trusted Travel Platform, says the use of technology is essential in achieving the AfCFTA’s objectives. The continental free trade area presents a major opportunity for African countries to bring 30 million people out of extreme poverty and to raise the incomes of 68 million others, who live on less than US$5.50 per day.

African countries agreed last year to create the world’s largest free trade area measured by the number of countries participating. There are, however, concerns that economies may be ravaged by the coronavirus pandemic if no proper health guidelines are put in place.

This has resulted in the Africa CDC establishing the Trusted Travel Platform, in partnership with Econet and Panabios, to verify public health documentation for travellers at national borders.

“We understand that governments are under pressure to implement the African Continental Free Trade Area (AfCFTA) as a way of reviving their economies that are expected to lose between 25 and 30 million jobs due to the Covid-19 pandemic, but we are calling for caution as they open their borders,” said Econet.

“Countries should insist that all travellers get digital certificates to prove that they have taken Covid-19 tests from approved laboratories to contain the spread of the pandemic and protect the lives of vulnerable people.”

The Covid-19 pandemic has affected several economic sectors on the continent since its onset. Trade and supply chains have been disrupted while some sectors such as aviation, tourism and hospitality, have been among those hardest hit by the pandemic, resulting in massive job losses and lost revenue.

With the implementation of AfCFTA, trade facilitation measures that cut red tape and simplify customs procedures are expected to drive US$292 billion of the US$450 billion in potential income gains. Experts say the agreement will also help usher in the kinds of deep reforms necessary to enhance long-term growth in African countries. When fully operational by 2030, AfCFTA is expected to cover a market of 1,2 billion people, with a combined gross domestic product (GDP) of US$2.5 trillion. Dr John Nkengasong, the director for Africa CDC has, however, called for a balance between the need to boost African economies and protecting lives.

“Considering the socio-economic effects of the Covid-19 pandemic on member states, we must continue to be proactive in our response and continue to expand and strengthen our partnerships to fight this pandemic effectively,” he said.

The African Union Commission recently launched the ‘saving lives, economies and livelihoods’ campaign that seeks to reduce the spread of infections within and across borders by creating a unified public health corridor for safe travel on the continent. The campaign will facilitate the development of a harmonised strategy to protect borders, travellers, economies, livelihoods and schools in Africa from the risk of increased Covid-19 transmissions as countries re-open their borders and their economies. This comes as several European countries are struggling to stem a resurgence of the virus, that risks overwhelming some healthcare systems. With an average of more than 100 000 new infections per day over the past week, Europe now accounts for about one-third of new cases reported worldwide.

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

AfCFTA Will Not Work Without a Legal Framework

September 24, 2020

African Continental Free Trade Area Secretary, Wamkele Keabetswe Mene

The African Continental Free Trade Agreement (AfCFTA) may go the way of other commendable initiatives the African continent has conceived unless it is backed by a legal framework which will help address most of the concerns of reluctant members’ states for the trade bloc to yield the expected results. This was the submission of the Senate President of the federal republic of Nigeria, Senator Ahmad Lawan who noted that going ahead without such framework would amount to putting the cart before the horse. The Senate president made this known when a delegation from the African Continental Free Trade Area Secretariat, led by its new Secretary General, Wamkele Keabetswe Mene paid a courtesy visit to him in Abuja.

According to Lawan, aside from facing the challenges of unemployment, and underemployment, which had led to migration, the economies of African countries had been characterised by low productivity, reduced efficiency, and limited resources. He described AfCFTA as “a step in the right direction for the growth of African economies, through limited restrictions, leading to the stimulation of trade, commerce, and industry”.

“In signing the AfCFTA, and depositing the instrument with the African Union Commission, our countries made a statement on the determination of our collective economic fate. This fate is in our hands, through requisite legal frameworks, right policies, and a robust implementation. “The initial momentum from the signing of the agreement needs to be continued, for a greater continental impact, to benefit Africans, both on the continent and outside it,” he said.

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

Prof. Benedict Oramah Re-appointed as Afreximbank President

June 14, 2020

Prof. Benedict Oramah, President of the African Export-import Bank

Nigeria’s Prof. Benedict Okechukwu Oramah has been re-elected as the President of African Export-Import Bank (Afreximbank). The shareholders meet today to re-elect him for a second 5-year term. The decision was announced in Cairo following Afreximbank’s 27th Annual General Meeting of Shareholders which was held by circulation of resolutions due to the COVID-19 pandemic situation.

Prof Benedict Oramah, president Afriexim bank

In an acceptance statement released shortly thereafter, President Oramah told Shareholders that the Bank’s ultimate goal under his second term of office is the realisation of Africa’s strategic ambition to create an integrated market. “We want an Africa where the foundations of the African Continental Free Trade Agreement (AfCFTA) are laid expeditiously so that the 84,000 kilometres of borders that have divided us for ages can begin to come down,” said prof. Oramah who added that AfCFTA would “drive the industrialisation of Africa, support the emergence of regional value chains, turn Africa’s creative and cultural assets into engines of growth, grow jobs for the continent’s youth, convey respect to Africans wherever they may be and better prepare the continent to compete more effectively in the global markets.”

Prof. Oramah highlighted that between 2015 and 2019, Afreximbank disbursed more than US$30 billion in support of African trade with over US$15 billion channeled towards the financing and promotion of intra-African trade. “We will aim to double intra-African trade financing so that by the end of my term, it will constitute no less than 40% of the Bank’s total assets, with aggregate disbursements, on a revolving basis, over the 5 years exceeding US$30 billion,” he announced.

In office since 2015, Prof. Oramah’s re-appointment was one of the key decisions taken by shareholders during the Bank’s 2020 General Meeting. A resolution proposing the re-election of Mr. Stefan-Luis Francois Nalletamby as a director representing Class “A” Shareholders and Mr. Kee Chong Li Kwong Wing as a director representing Class “B” Sharefolders was also approved by the meeting.

In addition, the 2019 audited accounts were approved, as well as the proposal to raise an additional US$500 million in equity within Afreximbank’s current Strategic Plan dubbed “IMPACT 2021-Africa transformed”. The approval to raise additional equity was in recognition that an amount of US$1 billion earlier authorized to be mobilized had almost been fully raised. “I make a commitment that with your support, the Bank will remain well capitalised throughout my term of office and beyond. We will continue our efforts to diversify sources of equity to include the markets while ensuring that the Bank’s development focus remains unchanged,” President Oramah assured the Bank’s Shareholders.

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

New Growth Opportunities for African Businesses

June 3, 2020

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

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

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

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

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

Kelechi Deca

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

Integration is Key to Building More Resilient Economies in Africa – Report

May 23, 2020

David Luke, coordinator of the African Trade Policy Centre (ATPC)

The Economic Commission for Africa (ECA), the African Development Bank and the African Union Commission (AUC), yesterday launched the second Africa Regional Integration Index (ARII 2019) with a call to action to African economies to deepen their integration. The 2019 Index, which builds on the first edition published in 2016, provides up-to-date data on the status and progress of regional integration in Africa. It also helps to assess the level of integration for every Regional Economic Community (REC) and their member countries. The report observed that although 20 countries score above average, no African country can be considered well integrated in its region. Even the most integrated country, South Africa, scores 0.625 less than two-thirds of its potential on the scale.

The report found that much more needs to be done to integrate regional economies to make them more resilient to shocks such as the current COVID-19 pandemic. Overall, the Index shows that levels of integration on the continent are relatively low with an average score of 0.327 out of 1. “Whereas the Index edition we are releasing today has data cut off points in 2019, the present COVID-19 pandemic has reopened the question of whether enough is being done in advancing regional integration as a means to help Africa withstand systematic shocks such as the one being experienced today,” said Stephen Karingi, Regional Integration Division Director at the ECA. “This index is both a measurement exercise and a call to action; to build resilient economies through integration,” he added. “It will identify the solutions needed to truly build an integrated Africa.”

Jean-Denis Gabikini, Acting Director of the AUC’s Economic Affairs Department, welcomed the collaboration in producing the Index. He noted that the Index covers issues of intellectual property, competition policy, investment and digital trade which are critical to the successful negotiations of Phase II and III of AfCFTA. “To achieve an “integrated, prosperous and peaceful Africa, representing a dynamic force in the concert of nations”, this ARII report will support AU Member States and RECs to address industrialisation and value addition priorities for the development of the continent,” Gabikini said.

With the establishment of RECs and the creation of AfCFTA, Africa has reinforced regional integration as a major development priority for the continent under the 2012 Boosting Intra-African Trade (BIAT) Action Plan. The Index ranks the level of integration of African countries within their respective RECs and also with the rest of the continent. It scores across five key dimensions: trade, productive capacity, macroeconomic policy, infrastructure, and free movement of people.

Among the eight RECs recognised by the AU, the East African Community (EAC) scored highest for overall integration, with the Southern African Development Community (SADC) coming last.The African Development Bank’s Director for Regional Development and Regional Integration, Moono Mupotola, said the Index was a useful tool for tracking progress on the regional integration front and would help countries identify priorities to improve integration.“The crippling effects of COVID-19 illustrate the need for enhanced production of African finished goods and services that can readily be traded across the continent,” Mupotola said.

David Luke, coordinator of the African Trade Policy Centre (ATPC) at the ECA pointed out that the productive and infrastructure dimensions of regional integration are intricately linked. Tackling these two dimensions along with implementing the AfCFTA would be a massive boost for trade, he said. For Africa to succeed in its long-standing efforts towards closer economic integration, ARII 2019 made the following recommendations: improve regional networks of production and trade by enhancing countries’ productive, distributive, and marketing capacities; build innovative, regional value-chain frameworks in different sectors using improved technology, higher-quality inputs, and updated marketing techniques; fully implement the AfCFTA to remove non-tariff barriers, which remain a major challenge for regional integration; enhance African workers’ competencies to match the technology and production capacities of today and tomorrow to succeed in the global economy; improve infrastructure through increased public–private partnerships, tapping into national resources and using regional and global infrastructure development funds and other innovative financing tools, accompanied by rigorous competition and transparency in procurement and construction processes; and implement the Protocol on the Free Movement of People, which will enhance economic growth through increased opportunities for tourism, trade and investment, human capital mobility, and allow firms to find skills more easily, in turn driving productivity.

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

After COVID-19, what will Africa look like in 2030 and 2063?

April 15, 2020

Professor Banji Oyelaran-Oyeyinka, Senior Special Adviser on Industrialization to the President of the African Development Bank

by Banji Oyelaran-Oyeyinka

The COVID-19 pandemic, one of the world’s most significant events, has resulted in cessation of economic activities that will lead to a significant decline in GDP, an unprecedented social disruption, and the loss of millions of jobs. According to estimates by the African Development Bank, the contraction of the region’s economies will cost Sub-Saharan Africa between $35 billion and $100 billion due to an output decline and a steep fall in commodity prices, especially the crash of oil prices.

More fundamentally, the pandemic has brutally exposed the hollowness of African economies on two fronts: the fragility and weakness of Africa’s health and pharmaceutical sectors and the lack of industrial capabilities. The two are complementary. This is because Africa is almost 100 percent dependent on imports for the supply of medicines.

According to a recent McKinsey (2019) study, China and India supply 70 percent of Sub-Saharan Africa’s demand for medicine, worth $14 billion. China’s and India’s markets are worth $120 billion and $33 billion respectively. Consider a hypothetic situation where both India and China are unable or unwilling to supply the African market? Africa surely faces a health hazard.

The root of Africa’s underdeveloped industrial and health sectors can be encapsulated in three ways. First, some African policy makers simply think that poor countries do not need to industrialize. This group believes the “no-industrial policy” advocates who engage in rhetoric that does not fit the facts. The histories of both Western societies, and contemporary lessons from East Asia, run contrary to that stance.

Clearly, governments have an important role to play in the nature and direction of industrialization. Progressive governments throughout history understand that the faster the rate of growth in manufacturing, the faster the growth of Gross Domestic Product (GDP).

From the Economist magazine five years ago: “BY MAKING things and selling them to foreigners, China has transformed itself—and the world economy with it. In 1990 it produced less than 3% of global manufacturing output by value; its share now is nearly a quarter. China produces about 80% of the world’s air-conditioners, 70% of its mobile phones and 60% of its shoes. Today, China is the world’s leader in manufacturing and produces almost half of the world’s steel.” The keyword is “making”.

Two, rich countries therefore became rich by manufacturing and exporting to others, including high-quality goods and services. Poor African countries remain poor because they continue to produce raw materials for rich countries. For example, 70% of global trade in agriculture is in semi-processed and processed products. Africa is largely absent in this market while the region remains an exporter of raw materials to Asia and the West.

Lastly, African countries are repeatedly told that they cannot compete based on scale economy, and as well, price and quality competitiveness because China will outcompete them. For this reason, they should jettison the idea of local production of drugs, food and the most basic things.

The question is: How did Vietnam, with a population of 95 million, emerge from a brutal 20-year war and lift more than 45 million people out of poverty between 2002 and 2018 and develop a manufacturing base that spans textiles, agriculture, furniture, plastics, paper, tourism and telecommunications? It has emerged as a manufacturing powerhouse, becoming the world’s third-largest exporter of textiles and garments (after China and Bangladesh).Vietnam currently exports over 10 million tonnes of rice, coming third after India and China.

How is it that Bangladesh, a country far poorer than many African countries, is able to manufacture 97% of all its drugs demand, yet it is next door to India, a powerhouse of drug manufacturing?

The COVID-19 pandemic has exposed Africa. African leaders need to look in the mirror and ask where this continent will be in 2030 and 2063. Africa must adopt progressive industrial policies that create inclusive, prosperous and sustainable societies. What then should be done? A three-pronged approached is urgently needed.

First, Africa needs a strong regional coordination mechanism to consolidate small uncompetitive firms operating in small atomistic market structures. With a consumer base of 1.3 billion and $3.3 trillion market under the African Continental Free Trade Area (AfCFTA), the continent has no choice but to bring together its fragmented markets. Second, Africa needs to build better institutions, strengthen weak ones and introduce the ones missing. No better wake-up call is required than the present pandemic.

Third, one important institution that has been abruptly disrupted is the supply chain for medicines and food, for example. Logistics for transporting capital and consumer goods across the region need predictable structures. Building or strengthening supply chains involve fostering and providing regulations for long-term agreements and competences that leverage both private and public institutional challenges such as customs regulations.

Finally, development finance institutions (DFIs) such as the African Development Bank are mandated to, and are currently, trying to fill the gaps left by private financial institutions. There is an opportunity to Africa to rethink and reengineer its future. The Africa of tomorrow must look inwards for its solutions. – whether in feeding its own people, build industrial powerhouses led by African champions.

The African Development Bank stands ready to help target and push for deeper economic transformation. Africa needs to execute structurally transformative projects that generate positive externalities and social returns. Keep our eyes on the days after.

Professor Banji Oyelaran-Oyeyinka, is the Senior Special Adviser on Industrialization to the President of the African Development Bank.

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

Given Opportunity, African Youth Have Been Force for Positive Change, says Prof. Oramah

March 13, 2020

The new Africa presents the continent’s youth with an excellent battleground to join and wage the economic struggle that will finally liberate Africa, Prof. Benedict Oramah, President of the African Export-import Bank (Afreximbank) has said. Speaking on Wednesday on the topic “Unleashing the Power of the Youth” while delivering the 14th Convocation Lecture of the Nnamdi Azikiwe University (UniZik) in Awka, Nigeria, Prof. Oramah said, “just as Africa’s political struggle was led by the youth, so will the youth lead the way for Africa’s economic emancipation”.

Youths represented agents of change across the social, political and economic spectra and history and contemporary evidence had shown that they had always been the catalyst to economic transformation, constituting the largest proportion of the labour force and the population at the height of the industrial revolutions in the advance countries, he said.

“History has shown that where the youth are given the opportunity, they have been the force for positive change,” noted Prof. Oramah who added that he considered the youth to be Africa’s greatest resource, “an asset much more valuable than all the oil and solid minerals we so frequently celebrate”.

He quoted the statement by Dr. Nnamdi Azikiwe, the former President of Nigeria after whom the university was named, that, “The immediate aim of African education should be to develop character, initiative, and ability of the youth of the country, so that they may be reliable, useful, and intelligent in the rapidly changing life and circumstances of their own people. …….. Anything narrower than this must lead to a stagnant and menacing flood of unemployed and unemployable youth.”

Prof. Oramah noted that the ubiquitous social media platforms, Facebook, Twitter and Instagram; Tech companies such as Apple and Microsoft; and e-commerce platforms, including Amazon and Alibaba; were founded by people in their youth. Youth-powered digital businesses accounted for about two-thirds of the U.S. economy, one-third of the Chinese economy and eight per cent of the Indian economy, he added, saying that those companies were bigger in value than many African economies.

Despite limited opportunities, however, Africa’s youth was beginning to make important contributions to economic transformation on the continent, said Prof. Oramah. The African versions of Steve Job, Mark Zuckerberg, Alexander McQueen and Calvin Klein were rising like the Phoenix while others, like Aliko Dangote, Tony Elumelu, Lily Alfonso and Njideka Akunyili-Crosby, all started making impact in their various endeavours as youth.

Prof Oramah cited Ndubuisi Eze, a young drone expert who was identified by Singaporean investors at the inaugural Intra-African Trade Fair in Cairo in 2018 and, subsequently, relocated to Singapore where he was able to get support to develop his company and now produces and exports drones to global markets.

Prof. Oramah also highlighted the Nigerian youth-led entertainment industry which is making significant gains and inroads into the global scene and noted that Afreximbank had recently announced a $500 million Creative Industry Financing Facility which was available to operators in the full spectrum of Africa’s creative sector. That facility was expected to boost youth participation in the African creative economy.

Prof. Oramah urged the youth to be prepared to take advantage of emerging opportunities under the African Continental Free Trade Area (AfCFTA) and announced that Afreximbank had launched a number of initiatives and programmes to support African economies and the youth to maximize the benefits of the AfCFTA. Those included an incubation lab being put in place to support innovation and help bring innovative products to market.

Prof. Oramah paid tribute to the leaders whose visions made UniZik possible, including Chief Jim Nwobodo and Dr. Chukwuemeka Ezeife, two former governors of Nigeria’s Anambra State, and former Nigerian President Ibrahim Babangida under whose leadership the former Anambra State University of Science and Technology was renamed Nnamdi Azikiwe University and made a federal university.

Prof. Oramah also paid tribute to Dr. Azikiwe, who was Governor General of Nigeria from 1960 to 1963 and President from 1963 to 1966, saying that he was a freedom fighter who devoted his youth and entire life towards the emancipation of Africa in general and Nigeria in particular.

“He was fearless in his struggle, knew no boundaries in his scope and leveraged his legendary intellectual capacity to overcome the most complex of challenges. He understood the importance of education in the struggle for Africa’s renaissance. His passion for scholarship and Africa’s emancipation – what he stood for and his fulfilled life lived – presents us with an armour to engage in the complex battles of today,” said the Afreximbank President.

Earlier, Prof. Rasheed Abubakar, Executive Secretary of Nigeria’s National Universities Commission and Chairman of the Convocation Lecture, introduced Prof. Oramah, describing him as “one of the greatest minds” and saying that his lecture would stress the primacy of education.

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 Business Leaders Share Ideas on Solving the Continent’s Biggest Social Challenges

March 6, 2020

Shared Value Africa Initiative Founder and CEO Tiekie Barnard

Business leaders from across Africa will seek solutions to some of the continent’s most challenging social issues at the Africa Shared Value Leadership Summit in Kigali, Rwanda from the 4^th to the 5^th of June 2020. The Summit, which will draw leaders from some of Africa’s biggest companies as well as decision-makers from government and civil society, provides a platform for business to collaborate on social upliftment of the continent, as well as to share insights about the most effective ways for companies to solve social challenges as a core part of their business operations.

The Shared Value Africa Initiative (SVAI) brings businesses and business communities from across Africa together with a common purpose: build ecosystems to drive the growth of the African economy; shift Africa from being the poorest continent to become the most economically viable; and bring about change at scale to the benefit not only business but also society and the environment. Its main objective is to build one of Africa’s most powerful business networks. The SVAI enables people to partner with and learn from others to sustainably create both economic and societal value through their Shared Value strategy, as well as how to motivate others to make the shift to Shared Value, further influencing change at scale.

The decision to hold the 2020 Summit in Rwanda gives delegates an opportunity to learn from the economic and social developments in the country over the last two decades, with the summit’s content aligned with selected priority areas of Rwanda’s National Strategy for Transformation (NST1). “The solution-seeking sessions enable attendees delegates to discuss specific regional challenges and collectively contribute and suggest possible solutions,” says Shared Value Africa Initiative CEO Tiekie Barnard. “This provides a significant opportunity for delegates to learn and form networks across the continent.”

In line with the Summit’s partnership with Africa Leadership University (ALU), these sessions will be facilitated by students and alumni of ALU School of Business MBA course, with ALU faculty members compiling reportage of these sessions. Undergraduate students will be ambassadors throughout the Summit, while African Leadership Group founder Fred Swaniker will also give a keynote address at the Summit. The solution-seeking sessions allow some of the greatest minds in Africa to grapple with complex issues such as how Africa connects across borders to make the continent the global tourist destination, what is required to create food security in Africa and outbreaks, pandemics and the future of Africa’s health. Other issues they will look into are how to track the societal benefit of the AfCFTA, building shared value ecosystems and exchanges in conversation regarding entrepreneurship and Public-Private Partnerships.

“The Shared Value business model, developed by Harvard Business School’s Prof Michael Porter and Mark Kramer, is practised by an increasing number of businesses across the world,” says Shared Value Africa Initiative Founder and CEO Tiekie Barnard. “This provides opportunities to build business initiatives around solving social problems at scale, contributing to achieving the United Nations Sustainable Development Goals on the continent.”

The Summit has become a platform for Africa’s business thought leaders to exchange insights and share their experiences implementing the Shared Value business model in the diverse African context. The event connects speakers from industries ranging from telecommunications to healthcare, manufacturing and mining.

Discussions enable participants new to Shared Value thinking to learn how to embed shared value into core strategy of the business, and how to develop shared value opportunities to address social and environmental issues. As well as the solution-seeking sessions, the Summit will also feature African leaders sharing how their businesses create economic value and value for society, as well as presentations from various industry sectors.

The Summit, which took place 23-24 May 2019 in Nairobi, was attended by more than 350 business executives per day over two days, with more than 18 countries represented. The Summit also aims to encourage business to contribute to achieving the United Nations Sustainable Development Goals on the continent. “As with previous years, the UN Sustainable Development Goals will be a theme throughout at the Summit as a guide to the business leaders to demonstrate how business can contribute to achieving the goals and to addressing e social challenges, a core part of their operations” says Barnard.

The Shared Value Africa Initiative (SVAI), is a pan-African organisation and the custodian of the global Shared Value movement on our continent. The SVAI is the regional partner of the global Shared Value Initiative started by economists Prof Michael Porter and Mark Kramer from Harvard Business School. Prof Porter is a current member of the Rwandan Presidential Advisory Council.

Since its inception, the SVAI has been working to establish a strong footprint across the continent, beginning in South Africa. As East Africa is home to some of the fastest-growing economies on the globe, the SVAI believes that this region has the potential to catalyse a business revolution across the continent. Successful economies, such as Kenya (hosts of the 2019 Summit) and Rwanda, influence and motivate others to follow in their footsteps – and, by becoming Shared Value hubs, can influence positive change on our continent.

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