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ECO: As West Africa Takes the Single Currency Plunge

July 10, 2019

Analysts have started exploring opportunities inherent in the proposed single currency for the West African region; The Eco. It could be recalled that leaders of the 15 member states of the Economic Community of West African States (ECOWAS) met in Abuja, Nigeria, and formally agreed on the name of the planned common currency the “ECO” The currency according to a release from ECOWAS Secretariat Abuja, would be based on a flexible exchange rate regime, coupled with a monetary policy framework focused on tackling inflation.

Observers say there seems to be a sense of urgency in this latest efforts, maybe being buoyed by the recently signed Africa Continental Free Trade Agreement (AfCTA). This is because the target launch date for Eco has been postponed several times; in 2005, 2010 and 2014; since the concept first arose in 2003. Now the Economic Community of West African States (ECOWAS) is planning to launch the currency in 2020, with member states agreeing to name it the ‘ECO’ there seem to be a new sense of urgency.

Reports indicate that governments in the region are keen on more integration and a single currency will facilitate trade, lower transaction costs, and payments amongst ECOWAS’ 385 million people.

Currently, eight of ECOWAS countries i.e. Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal, and Togo jointly use the CFA franc while the remaining six members have their own independent currencies.

Some analysts are of the view that the single currency if properly implemented will improve trade by allowing specific countries to specialize at what they are good at, and exchange it for other goods that other countries in the bloc produce more efficiently.”

A report by the African Development Bank Group (Afdb) indicates that the 2020 deadline for the single currency will most like be postponed again unless the region can align with its monetary and fiscal policies.

Countries are required to meet a ten convergence criteria, set out by the West African Monetary Institute (WAMI), by the 2020 deadline. The primary four beings: a budget deficit of not more than 3%, an average annual inflation rate of less than 10%, Central Bank financing of budget deficits should be no more than 10% of the previous year’s tax revenue and gross external reserves worth at least three months of imports.

The six secondary criteria to be achieved by each member country are: Prohibition of new domestic default payments and liquidation of existing ones, tax revenue should be equal to or greater than 20 percent of the GDP, wage bill to tax revenue equal to or less than 35 percent, public investment to tax revenue equal to or greater than 20 percent, a stable real exchange rate and a positive real interest rate.

However, reports indicate that although countries may meet the criterion by the deadline they fall behind thereafter thus posing the main difficulty in inconsistencies.

As at today, only five countries, viz; Cape Verde, Ivory Coast, Guinea, Senegal and Togo of the region’s fifteen countries currently meet the single currency’s criteria of a budget deficit not higher than 4% and inflation rates of not more than 5%, as noted by Charlie Robertson, chief global economist at Renaissance Capital.

Additionally, while ECOWAS says the integration will be gradual as countries meet the criteria, it’s unlikely that a 2020 launch date is feasible as there is no significant progress in the design, production, and testing of the currency notes.

Given that various economies in the region are at “dramatically different levels of development,” the leadership of ECOWAS is being unrealistic in both its timing for the currency’s launch and expectations of what it might achieve, Robertson says. “You’ve got very different levels of debt, interest rates, and budget deficits. Trying to align these countries to operate as one is extremely difficult,” he says. “What currency policy is right for two such divergent countries like saying Ghana and Burkina Faso?”

There is also the glaring disparity in the economic size of Nigeria in the region. For example, Nigeria is 67% of ECOWAS’ GDP, so really this isn’t a single currency for 15 countries, this is the Nigerian Naira plus a few countries.

How the leaders hope to close all these gaps between now and next year 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.

Facebook: https://web.facebook.com/Afrikanheroes/

Printronix announces partnership with Tri-Continental to Cover Central, East and West Africa

Printronix, a global pioneer of line matrix technology, has recently signed a distribution agreement with Tri-Continental Ltd.

Under the agreement, Tri-Continental, one of the largest and most prominent IT distributors in the African market, will distribute Printronix and TallyGenicom line matrix printers as well as its desktop serial dot matrix models, the S809 and S828. Through this partnership, Tri-Continental and Printronix will broaden their reseller base and strengthen their presence and market penetration in this important region.

Based in West London, Tri-Continental has expanded its operation to span 36 countries in Central, East and West Africa, and has been IBM’s strongest performing channel partner there for almost 30 years. The company has a strong reputation for providing the right solutions for its customers and adding value to the supply chain. It has been working with global brands such as IBM, NetApp, Epson, and Canon.

Joseph Musisi, Tri-Continental Director and General Manager, says he is confident that the expanding range of reliable quality printers from Printronix is ideal for Africa’s many applications, its demanding environments, and multiple vertical markets. “Printronix is well known for its reliable quality printers. The devices are globally recognized for their unrivaled performance in mission-critical applications where downtime is not an option and cost-effectiveness is a priority. Printronix is a trusted supplier with a long list of high profile global customers, many of whom have a presence in Africa. We can add new local customers to that list, as well as expand the usage of Printronix printers across all the countries where we are present,” explains Joseph.

With over 40 years of success to build on, Printronix offers a wide range of printing solutions and applications for various industries, as well as ongoing support, sales training, and service to its channel partners. Regional Sales Manager for Sub-Sahara and South Africa at Printronix, Lareen Kohler says: “Tri-Continental is firmly positioned as a leading Pan-African distributor of world-class technology products, and, as an additional partner in the region, it will help us expand our channel base and reach end customers in Africa that we are not currently engaged with. This is an important market for Printronix so Tri-Continental is an ideal choice to contribute to our business growth plans for the region.”

Rosemarie Zito, Printronix Vice-President of EMEA Sales & Marketing, adds: “Printronix is looking forward to working with Tri-Continental. Its team has a great track record for building reseller channels throughout Africa, which will greatly support our solutions.

Printronix is the OEM supplier of former IBM 6400 and 6500 line printers and, as such, we are partnering with Tri-Continental as it has such extensive knowledge of the corporate IBM customers in the region. We are sure that Tri-Continental will help us better serve them and upgrade legacy line and serial dot matrix printers. In addition, we believe Tri-Continental is complementary to our existing distribution channel in the region.”

The Printronix P8000 and TallyGenicom 6800 line matrix series with Pedestal, Zero Tear and Enclosed Cabinet models, and the S809/S828 serial dot matrix printers deliver flexible design, adaptable functionality, and manageable savings.

Line and serial dot matrix printers are designed for users in manufacturing, distribution and logistics, government, banking, and food & beverage. They can be used to print invoices, shipment, and transportation documentation, bank and customer statements, and product labels. Users can expect maximum uptime, low cost of ownership, and maximum reliability in demanding environments.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

Opera Founded Startup OPay Raises $50M For Mobile Finance in Nigeria

OPay is just a year old in Nigeria, but the startup is already making waves. Nigerian road users would be familiar with the green livery motorbike hailing startup ORide, which is a part of the OPay business. Founded by Norwegian browser company Opera, OPay, the Africa-focused mobile payments startup has raised $50 million in new funding.

A Look At The Funding

A large chunk of the investment came from investors including Sequoia China, IDG Capital, and Source Code Capital. Opera also joined the round in the payments venture it created.
OPay intends to use the capital (which wasn’t given a stage designation) primarily to grow its digital finance business in Nigeria — Africa’s most populous nation and largest economy.
OPay will also support Opera’s growing commercial network in Nigeria, including its motorcycle ride-hail app ORide and OFood delivery service.
Opera founded Opay in 2018 on the popularity of its internet search engine. Opera’s web-browser has ranked number two in usage in Africa, after Chrome, the last four years.

The Startup’s Statistics

On the payments side, OPay in Nigeria has scaled to 40,000 active agents and $5 million in transaction volume in 10 months.
The $50 million investment in OPay is more than just another big round in Africa. It has significance for the continent’s tech-ecosystem on multiple levels.
To start, OPay’s raise tracks greater influence in African tech from China — whose engagement with African startups has been light compared to China’s deal-making on infrastructure and commodities. OPay founder Opera was acquired in 2016 for $600 million by a consortium of Chinese investors, led by current Opera CEO Yahui Zhou.
The majority of the investment for OPay’s raise comes from Chinese funds and sources, including Source Code Capital, Sequoia China, and GSR Ventures. There’s not a lot of statistical data on the value of Chinese VC investment in Africa, but a large portion of $50 million to a fintech venture stands out.

This New Investment May Mean A Major Shift For Nigerian Digital Payments Startups

OPay’s VC haul also has significance vis-a-vis digital-finance in Nigeria. In tandem with other trends, it could support the shift of Nigeria surpassing Kenya as Africa’s digital payments leader. For years Kenya has outpaced Nigeria in P2P digital payments volumes and digital financial inclusion, largely due to the rapid adoption of mobile-money products, such as Safaricom’s M-Pesa.
Some of this is due in part to Nigeria’s Central Bank limiting the ability of non-banks (including telcos) to offer mobile payment services. The CBN eased many of those restrictions earlier this year. This opens the door for mobile-operators like MTN, with the largest phone network in Nigeria, to offer mobile-money products. In addition to fintech regulatory improvements, there’s been a gradual increase in VC flowing to Nigerian payment ventures.
The country’s leading digital payment company, Paga, raised $10 million in 2018 to further expand its customer base that now tallies 13 million. OPay’s $50 million backed commitment to grow mobile money in Nigeria should provide another big boost to digital-finance adoption across the country’s 190 million people.
And not to be overlooked is how OPay’s capital raise moves Opera toward becoming a multi-service commercial internet platform in Africa. Part of the $50 million investment includes diversifying country and product offerings. “Geographic expansion of OPay and other services is a key part of our plans,” Opera CEO Yahui Zhou told TechCrunch via email.

This could place OPay and its Opera supported the suite of products on a competitive footing with other ride-hail, food-delivery, and payments startups across the continent. It could also mean competition between Opera and Africa’s largest multi-service internet company, e-commerce unicorn Jumia.

Charles Rapulu Udoh

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

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Lesley Nneka Arimah Wins the 2019 Caine Prize for African Writing

Nigerian born author Lesley Arimah has been declared the winner of The 2019 Caine Prize for African Writing for her short stories. Her short story titled Skinned won the Award. This win is coming against the backdrop of her being shortlisted for the Award on three previous occasions.

The Shortlist for this year came alongside Meron Hadero of Ethiopia for ‘The Wall’, Cherrie Kandie of Kenya for ‘Sew My Mouth’, Ngwah-Mbo Nana Nkweti of Cameroon for ‘It Takes A Village Some Say’, and another Nigerian Tochukwu Emmanuel Okafor for his work titled ‘All Our Lives’.

Arimah’s story was first published in McSweeney’s Quarterly Concern (Issue 53). A statement by Caine Prize said, “‘Skinned’ envisions a society in which young girls are ceremonially ‘uncovered’ and must marry in order to regain the right to be clothed. It tells the story of Ejem, a young woman uncovered at the age of fifteen yet ‘unclaimed’ in adulthood, and her attempts to negotiate a rigidly stratified society following the breakdown of a protective friendship with the married Chidinma. With a wit, prescience, and wicked imagination, ‘Skinned’ is a bold and unsettling tale of bodily autonomy and womanhood, and the fault lines along which solidarities are formed and broken.”

In 2016, Arimah was shortlisted for the Caine Prize for her short story which became the title story of her collection of short stories, ‘What It Means When A Man Falls From The Sky.’ In 2017, Arimah’s ‘Who Will Greet You At Home’ which was shortlisted for the prize was first published in the New Yorker.

The £10,000 prize is the most prestigious literary award for a short story on the continent. Dr. Peter Kimani, the Chair of Judges when announcing the prize said, “The winner of this year’s Caine Prize for African Writing is a unique retake of women’s struggle for inclusion in a society regulated by rituals.

According to a statement from the judges, Arimah’s Skinned defamiliarizes the familiar to topple social hierarchies, challenge traditions and envision new possibilities for women of the world. Using a sprightly diction, she invents a dystopian universe inhabited by unforgettable characters where friendship is tested, innocence is lost, and readers gain a new understanding of life.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

How AfCFTA Will Impact Africa’s Economies

July 9, 2019

With the launch of Sunday of a continental free-trade zone in Africa, leaders of 54 nations have created on paper, which is regarded as the largest free trade zone in the world. Encompassing 1.3 billion people, and the potential to create a $3.4 trillion economic bloc.

After four years of talks, an agreement to form a 55-nation trade bloc was reached in March, paving the way for the launch earlier this week at the African Union Summit in Niger where Ghana was announced as the host of the trade zone’s future headquarters and discussions were held on how exactly the bloc will operate.

It is hoped that the African Continental Free Trade Area (AfCFTA) – the largest since the creation of the World Trade Organization in 1994 – will help unlock Africa’s long-stymied economic potential by boosting intra-regional trade, strengthening supply chains and spreading expertise.

“The eyes of the world are turned towards Africa,” Egyptian President and African Union Chairman Abdel Fattah al-Sisi said at the summit’s opening ceremony.

“The success of the AfCFTA will be the real test to achieve the economic growth that will turn our people’s dream of welfare and quality of life into a reality,” he said.

Africa has much to catch up with: its intra-regional trade accounted for just 17% of exports in 2017 versus 59% in Asia and 69% in Europe, and Africa has missed out on the economic booms that other trade blocs have experienced in recent decades.

Economists say significant challenges remain, including poor road and rail links, large areas of unrest, excessive border bureaucracy and petty corruption that have held back growth and integration.

Members have committed to eliminating tariffs on most goods, which will increase trade in the region by 15-25% in the medium term, but this would more than double if these other issues were dealt with, according to International Monetary Fund (IMF) estimates.

The IMF in a May report described the free-trade zone as a potential “economic game changer” of the kind that has boosted growth in Europe and North America, but it added a note of caution. Reducing tariffs alone is not sufficient, it said.

Africa already has an alphabet soup of competing and overlapping trade zones – ECOWAS in the west, EAC in the east, SADC in the south and COMESA in the east and south.

But only the EAC, driven mainly by Kenya, has made significant progress toward a common market in goods and services.

These regional economic communities (REC) will continue to trade among themselves as they do now. The role of AfCFTA is to liberalize trade among those member states that are not currently in the same REC, said Trudi Hartzenberg, director at Tralac, a South Africa-based trade law organization.

The zone’s potential clout received a boost when Nigeria, the largest economy in Africa, agreed to sign the agreement at the summit. Benin has also since agreed to join. Fifty-four of the continent’s 55 states have now signed up, but only about half of these have ratified.
One obstacle in negotiations will be the countries’ conflicting motives.

For undiversified but relatively developed economies like Nigeria, which relies heavily on oil exports, the benefits of membership will likely be smaller than others, said John Ashbourne, senior emerging markets economist at Capital Economics.

Nigerian officials have expressed concern that the country could be flooded with low-priced goods, confounding efforts to encourage moribund local manufacturing and expand farming.

In contrast, South Africa’s manufacturers, which are among the most developed in Africa, could quickly expand outside their usual export markets and into West and North Africa, giving them an advantage over manufacturers from other countries, Ashbourne said.

The vast difference in countries’ economic heft is another complicating factor in negotiations. Nigeria, Egypt and South Africa account for over 50% of Africa’s cumulative GDP, while its six sovereign island nations represent about 1%.

“It will be important to address those disparities to ensure that special and differential treatments for the least developed countries are adopted and successfully implemented,” said Landry Signe, a fellow at the Brookings Institution’s Africa Growth Initiative.

The summit also saw the launch of a digital payments system for the zone and instruments that will govern rules of origin and tariff concessions, as well as monitor and seek to eliminate non-tariff obstacles to trade, the African Union said.

While this is a good start, a lot is still left undone, or to be addressed.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

Siemens partners with Plan International to deliver humanitarian aid initiatives in Sudan

Siemens and Plan International Germany have signed a Memorandum of Understanding (MOU) to collaborate on future humanitarian projects to assist marginalized populations across Africa, with initial emphasis on Sudan, specifically displaced communities affected by conflict in neighboring South Sudan; The partnership will start by addressing the educational and infrastructure needs of communities in the White Nile state, including hybrid solar solutions in areas where access to decentralized energy is urgently required to enable sustainable development; Plan International is a child-centered community development organization that assists the most vulnerable in more than 50 countries, including Sudan

Siemens has signed a Memorandum of Understanding (MOU) with Plan International Germany that will see the two organizations working together to provide education, aid, and infrastructure to marginalized communities in Africa. The initial focus is on remote regions in Sudan, where Siemens and Plan International will provide aid in the educational and training sector, starting in White Nile state. Plan International is a child-centered organization that aligns with Siemens’ goal to support sustainable growth in the region.

With this agreement, Siemens further solidifies its commitment to significant humanitarian efforts in Sudan to address basic human needs and essential infrastructure. Siemens follows a clear business-to-society model in all countries and communities where it operates, and the goal is to directly impact the quality of life of the citizens of Sudan. Siemens and Plan International will focus on the renovation and modernization of 2 schools in the White Nile region incorporating a hybrid electrification solution for the schools and surrounding community.

According to 2018 data collected by Plan International, Sudan continues to receive ongoing significant influxes of refugees into areas such as the White Nile State. The majority of refugees are women and children (88%), who arrive in poor health after traveling many days to reach Sudan, often by foot, and who are in urgent need of protection, nutrition, shelter, and health support.

There are over 170,000 refugees living across 8 camps in White Nile. Over-congestion remains a serious concern, with all camps currently hosting populations beyond initial capacity.

According to Sabine Dall’Omo, CEO of Siemens Southern and Eastern Africa, “This area is in desperate need of sustainable solutions. While short-term aid is welcome and much needed, our aim is to provide self-sustaining solutions in education, skills development, and training, as well as a hybrid energy solution to state, benefit the marginalized populations in areas struggling to keep up with the influx of refugees.”

As a technology company with a footprint across Africa, Siemens has a keen understanding of the impact energy infrastructure has in marginalized areas. Access to electricity is the catalyst that enables access to education, food security, healthcare, and sustainable growth.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

Africa: Sports as a Business and a Brand – by Victor Oladokun

Fans are choosing not to watch live football events, and instead are opting in increasing numbers for the ‘intimacy’ of their crystal clear digital flat TV screens, or not all

At the ongoing Africa Cup of Nations in Egypt, the visual imagery of almost empty stadiums is a powerful narrative. But not the kind that African sports, African football, or corporate sponsors deserve.

The empty seat syndrome suggests that football fans are voting with their feet, or better still with their backsides. Fans are choosing not to watch live football events, and instead are opting in increasing numbers for the ‘intimacy’ of their crystal clear digital flat TV screens, or not all.

Before Egypt’s stunning 0-1 loss to South Africa in the round of 16, the host country was the only team able to attract 70,000 fans. Other than when Mo Salah and the Pharaohs have been on the field, most stadia across Egypt have at best attracted an average of 5,000 to 7,000 fans.

Official broadcast camera crews have done a creative job minimizing the visual gaps of empty seats. But wide camera angles reveal the obvious … a lack of attendance and public enthusiasm, in spite of the presence of some of the biggest names in world football on the field.

In European football leagues, where many of the stars in Egypt ply their trade, fans pay mega bucks to see the likes of John Mikel Obi, Ahmed Musa, Sadio Mane, Ryahd Mahrez, Nicolas Pépé, Wilfred, Zaha, and Kalidou Koulibaly.

Which is why the empty seats in Egypt are both stunning.

Admittedly, Egypt bailed CAF out and should receive well-deserved credit for coming to the rescue and hosting the African Cup of Nations, with barely 6 months notice, when the original hosts were sanctioned due to shoddy preparations.

Nevertheless, the lack of attendance in Egypt speaks volumes high ticket costs; the timing of matches bang in the middle of work days; the difficulties faced by national team supporters in obtaining entry visas to Egypt; and challenges with the Confederation of African Football’s complicated online ticket purchasing system.

It should not be so. This, after all, is the most important event in Africa’s sports calendar. At least, it used to be before England’s Premier League, Spain’s La Liga, Italy’s Serie A, and Germany’s Bundesliga captured our collective imaginations.

The end result is that where once 30,000 to 70,000 fans a week watched highly competitive domestic football leagues across Africa, the empty seat syndrome has been the norm for almost two decades. It is not unusual to have less than a thousand fans in a stadium that seats 30,000.

The lack of fan attendance has obvious economic and financial implications across the sports value chain for team owners, sports federations and confederations, players, sponsors, advertising and marketing agencies, merchandisers, vendors, and local communities who once counted on fan attendance to boost fledgling economies.

What’s responsible for the increasing slide in fan attendance?

1. Poor facilities

2. High ticket costs

3. A lack of reliable transportation to and from venues. As well as sufficient and secure parking.

4. Increasingly crude behavior and violence at event locations.

5. Technology. Mobile phones and Apps that carry events live as well as a plethora of entertainment alternatives. In other words, once big events are no longer the main gigs in town.

So, what can be done to reverse the trend? Here are 5 quick suggestions.

1. It can no longer be business as usual. Africa must run sports as a professional business. This includes the right infrastructure, training facilities, attractive pay scales for professional athletes who now consider anything less than a European league appearance, a professional failure.

Regrettably, as with Africa’s overall propensity to simply export raw materials instead of adding value to what we produce, we are doing the same with football and many other sports. Africa has a tremendous abundance of potential talent that for the most part (with the exception of South Africa, Kenya, and Ethiopia) we add little or no value to. Instead, millions of genetically blessed athletes are simply waiting or begging to be ‘found’ on the cheap by European and American sports teams. Why? Simply because we fail to see diamonds in the rough and because we are unable to add value to the potential of what for now seems to be rough stones.

2. Modern and professionally maintained facilities: In sizzling hot Africa, we must invest in covered stadia. When I can sit in front of my big screen TV in my air-conditioned living room, why would I want to subject myself to temperatures that I swear have gone up a number of notches in recent years?

3. Sport is a spectacle. This includes everything including pre-event and half time entertainment to keep fans with short attention spans upbeat and engaged.

4. Give back to the fans: Essentially, engagement in the 21st century must change. Its time to give something back to fans rather than fleecing them at every opportunity with sub-standard services and products. It would seem to me that sports teams could offer something as simple as raffle draws that reward fans with extra game tickets, signed player jerseys, visits with select players, or products from local sponsors. Professional marketing firms can come up with an endless list.

5. Make sports big and make it a win-win proposition.

Real Madrid F.C. and Barcelona F.C. for example, are not owned by a few rich individuals. Instead, they are owned and supported by thousands of shareholders known as ‘socios.’ Across Africa, it’s time to change the numbers game – in ownership, money, and attendance – by giving fans a seat at the table.

These are just a few quick ideas. However, the running of sports in general and football in particular as a business and a brand proposition will require honest analysis, political and financial will, and a collective approach.

It must be if Africa is to unlock potential and turn millions into billions.

Dr. Victor Oladokun is the Director of Communication and External Relations at the African Development Bank (www.AfDB.org).

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.

Facebook: https://web.facebook.com/Afrikanheroes/

African Development Bank President decries child marriage in Africa

The president of the African Development Bank Akinwumi Adesina joined continental leaders in Niger for an African Union summit which saw the official launch of the African Continental Free Trade Area agreement – the world’s largest free trade area since the formation of the World Trade Organization.

The agreement, ratified in April, will cover a market of 1.2 billion people and an estimated gross domestic product (GDP) of $2.5 trillion, across all 55 member States of the African Union.

The Bank has been central in shaping the AfCFTA agreement, setting its strategy and format and approving a $4.8 million grant to the AU for the establishing of the Secretariat and to accelerate its roll out. Nigeria made history at the summit by becoming the 54th African country to sign up.

Commending all the parties involved for bringing this historic agreement to fruition, President of Niger, Mahamadou Issoufou said: “The time has come to translate words into actions. The continent has waited for far too long, and we are glad this historic moment for the people of Africa is being witnessed in Niger.”

His comments were echoed by AU President, Abdel Fattah al-Sissi and AU Chairperson, Moussa Faki Mahamat who both stressed the need to celebrate the strides the continent has made.

“An old dream has come true. The founding fathers must be proud,” said Faki.

Whilst in Niamey, Adesina also participated in a high-level panel on combatting child marriage, organized on the sidelines of the summit by the First Ladies of West African Economic Community states and Niger’s first lady Dr. Lala Malika Mahamadou Issoufou.

The panel themed: Combatting child marriage and promoting girls’ education and retention in schools, heard testimonies from young girls as well as from Niger’s traditional chiefs, who committed to support the recommendations of the meeting.

“It is totally unacceptable that in Africa some people would block the future of girls. Fundamentally, we have to protect girls, help them achieve and perform.” Adesina said.

Highlighting the need to urgently address “this plague which jeopardizes the future of girls in Africa,” Adesina urged participants to prioritize the inclusion of women. “Women are the backbone of the African economy and of the African communities,” Adesina stated.

President Issoufou also reaffirmed his government’s commitment to supporting the First ladies.

“Keeping girls in school is one of the best ways to end child marriage. Like men, an educated girl will contribute to her community’s transformation,” the President said.

Rounding off the conversation Niger’s First Lady described the issue as a “critical priority.”

“It is not just a West Africa issue, but an issue for the entire region. So all of us must come together – public, non-governmental institutions, religious leaders, communities, families, and schools – for a sustained multi-stakeholder approach to combat early marriage and promote girls’ education,” Malika Mahamadou Issoufou concluded.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

Key Reasons South African crypto-based Payments Startup Wala Closed Down

South African crypto-based startup Wala has come to its end. The startup’s premises, after 4 years of being in operation, are no longer open for business. Founded in 2015, Wala initially provided access to transactional banking, remittances, loans, and insurance, working with specialist providers to offer a full suite of financial services.

However, the startup became crypto-focused in 2017 with the launch of utility crypto-token Dala, which Wala hoped would support the operationalization and further development of scalable, blockchain-enabled financial platforms for emerging markets. It did this by raising funding from Newtown Partners and then bagged US$1.2 million in addition through a token sale.

Here are the key reasons why the startup closed down

Funding

Initially, Wala was coasting home clean. The startup which won the Zambezi Prize late last year, secured over 150,000 users, mainly residing in Uganda, within months, but founder and chief executive officer (CEO) Tricia Martinez said it soon ran into problems.

“We had little funding and limited resources while tackling a massive global problem. With over 150,000 Dala wallets and more and more partners wanting to work with us we had a lot on our plate with limited resources,” said Martinez.

However, when it became time to fundraise again, Wala was not successful, in spite of its team believing its rapid growth would make it attractive to investors.

“I began fundraising at the start of crypto winter, which certainly didn’t help. For whatever reason, not many investors wanted to back a crypto company, let alone a startup focused on African markets,” Martinez said.

“For eight months I traveled across the globe, pitching investors in blockchain, fintech, impact, African-focused… I met and engaged with over 100 investors, and despite our early growth numbers, we couldn’t secure the necessary financial support we needed to continue growing and operating.”

Wala began cutting back, turning off deposits and laying off most of its team, but on June 24 it turned off its app entirely.

Infrastructure and Cyber-security Problems

Martinez also said activities of scammers and infrequency of service supply from the startup’s partner networks also contributed to the downfall of the startup.

“Rewards attracted scammers or people who figured out how to take advantage of a rewards system. This led us to change our rewards model multiple times and have to remove users who were abusing our system,” she said.

“The biggest problem we ran into was infrastructure. Our partners’ systems upwould regularly turn off due to internet problems or their own poor infrastructure, which meant our users were unable to transact, which was the biggest use case for Dala. This crushed our user engagement and most importantly trust in our system. It also forced us to expand the scope for Dala. We had to build even more infrastructure than we anticipated at the start,’’ she said.

A Ruined and Devastated Startup

The startup expressed shock over this reality.

“Our team was devastated to say the least and our users were upset. We provided a free financial payments system to consumers that solved a huge problem for them, but we didn’t have the funding to scale operations and solve the infrastructure problems that existed in these markets,” said Martinez.

Charles Rapulu Udoh

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

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Zambia’s Rent To Own Secures USD 1.1 Mn Funding To Increase Portfolio Of Entrepreneurs

Zambian startup, Rent to Own (RTO) is determined to achieve its goal of providing productive-use assets to rural SMEs in Zambia. The startup has just raised a EURO 1 Mn (USD 1,121,849) in a new round of funding from the Seed Capital and Business Development facility of the Dutch Good Growth Fund (DGGF).

The Funding At A Glance

The funding was led by the Seed Capital and Business Development facility of the Dutch Good Growth Fund (DGGF)
DGGF, managed by Triple Jump BV is a fund of funds investment initiative from the Dutch Ministry of Foreign Affairs that invests in funds and financial intermediaries that provide capital to SMEs.
Through its seed investment in RTO, DGGF will help support rural SMEs to improve livelihoods and develop sustainable income sources.
According to an official disclosure, Rent To Own engaged Open Capital Advisors, a management consulting and financial advisory firm based in Africa, to provide investment-readiness and transaction advisory support for this deal.
Own To Rent intends to use the funds primarily as working capital to double the company’s portfolio for rural Zambian entrepreneurs.
Building upon convertible notes, Rent To Own provides high-impact assets to rural entrepreneurs and smallholder farmers in Zambia.

Rent To Own At Glance

The startup, founded in 2010, claims to have financed over 7000 high-impact assets in Zambia and has achieved a 96% repayment rate since inception.

Image result for Zambian startup scene — The numbers that show Africa is buzzing with an entrepreneurial spirit – CNN.com

Offering a unique “all-in-one” package of uncollateralized financing, delivery, installation, and equipment training, the startup empowers its clients to grow their businesses and improve their quality of life.
RTO’s flexible, tech-enabled platform also provides a route-to-market for equipment suppliers and supports the rapid adoption of innovative assets, such as solar-powered irrigation pumps.

“We are extremely excited by the opportunity provided by DGGF to continue to focus on this mission and rapidly grow our loan book despite the harsh economic conditions we are currently experiencing in Zambia”, says Jeffrey Scheidegger, CEO.

Rent To Own raised USD 1.05 Mn last year in a seed round led by AHL Venture Partners. Due to a significant increment in the company’s investment, the investors were joined by two other firms – Small Foundation and Jordan Engineering.

Charles Rapulu Udoh

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