Africa - Afrikan Heroes

Africa must begin to look inwards, create industries through its own energy – Adeoye

December 2, 2019

Zion Adeoye an oil and gas specialist who has focused his career on energy law and finance is a Senior Associate at Centurion Law Group. He is the Country Relations Lead for South Sudan at Centurion Law Group. He has been a key legal advisor on over 25 oil and gas investments in 12 countries across Sub-Saharan Africa. Zion holds an LLB from the University of Ibadan, Nigeria and a BL from the Nigerian Law School. He is a member of the Nigerian Bar Association and the Association of Independent Petroleum Negotiators (AIPN). He is currently undertaking an MBA in International Oil and Gas Management at the University of Dundee, Scotland.

No stranger to awards, he was recently awarded an ESQ 40 under 40 Lawyer award at the Nigerian Rising Stars Award, for shaping the future of the legal profession in Nigeria and on the continent. He was significantly involved in the various efforts at amending the Nigerian Petroleum Act and related legislations including acting at one time as secretary to the Petroleum Industry Bill (PIB) Fiscal and Financial Management Syndicate Session commissioned by the Nigerian Federal House of Representatives and advised the Board of Nigeria Extractive Industries Transparency Initiative (NEITI) on the fiscal aspects of the PIB.In this interview, he speaks the African oil and gas industry, legal practice in the continent among other issues. Excerpts.

Do you think the current African oil market is adjusting or keeping up with the modern world – enough to play in the same field as America as UAE?

Markets, including the oil market, are significantly driven by demand, and holding a sizeable supply profile. The modern world is in a state of flux in terms of energy demand and supply, whether we are speaking of hydrocarbons or other energy sources. Africa has the ability, more than ever, to shape the energy world order rather than merely keeping up. With the US increasing its production profile, the inevitability of scientific breakthroughs in Shale within the next decade for other regions of the world which are currently major hydrocarbons markets for Africa, and potential significant shift from fossil fuels in Europe, there is a risk that many out-bound African projects might be in limbo. unlocking the African market is not just a nice-to-have, it is a necessity.

What would your advice for African markets be?

Africa must bring the strength of its population to bear on the global market. Through centralised and regional efforts, Africa must diversify its economies and empower its people, creating alongside a demand base to be reckoned with globally. While achieving this, Africa must begin to look inwards, create and power industries through its own energy.

The population of Nigeria alone is more than a quarter of the entire Europe. There is therefore a potentially viable market within Africa, which we must begin to unlock as a priority and Intra-African trade must become a top burner to sustain this. The African Continental Free Trade Agreement is a statement in the right direction, but we must begin to see concrete steps that match this statement.

Considering the strides and discoveries that took place in 2019, where do you see the African Energy (oil & gas) market going in the next year: Trends for 2020/2021 and why?.

Short of fulfilling the Buridan’s ass paradox, Africa is more than justified to aggressively pursue its oil and gas exploration aspirations. What we have seen in 2019 is just the beginning as I believe many new players will join the wagon within the next 3 years. We have also witnessed the ascendancy of African independents oil and gas companies in African E&P across Sub-Saharan Africa and this is a trend that must continue in other to retain value within Africa.

There’s been a lot of talk about carbon emissions; do you see African completely turning away from exploration and production of oil and moving towards green energy any time soon? Or do you think Africa’s oil industry needs to adjust uniquely on how it defines itself to be more eco-friendly. Contrary to general assumptions, even though accidents continue to occur, the oil and gas industry has significantly improved its health, safety and environment (HSE) profile over the last decade, but admittedly, the improvement falls far short of what scientists have established will be needed to reduce carbon emissions in order to successfully combat climate change.

Drilling down to Africa’s contribution to carbon emissions vis-à-vis its dependency on hydrocarbons revenue, it’s a no-brainer that Africa is the least culpable even while countries like Gabon continue to show leadership on environmental preservation. While Africa must have a coordinated plan in the medium to long term on energy base transition and also to achieve zero-flare status in its oil and gas industry, China and the US continue to significantly dominate the global emissions profile and more meaningful cuts will have to come from these countries. China and the US contribute about 40% of global fossil CO2 emissions.

Africa certainly needs a further ramp-up period to grow its industries to achieve a level of economic security at which point a whole-scale energy-source shift will be feasible.

What are your views and predicted operating implications or wins, regarding the recently announced Nigerian Deep offshore and Inland Basin Production Sharing Contract (Amendment) Act 2019?

The new Act codifies the Nigerian government’s position on lingering issues relating to Nigerian deep offshore and inland basin PSCs, especially the fiscal terms. While investors will make a judgment on whether the terms are fair or favourable for investment, clarity and certainty through legislative enactment is always a welcome development for investors.

You were one of the legal advisors that drafted, negotiated and advised on the Exploration and Production Sharing Agreement (EPSA) for the B2 Block signed this week between South Sudan and South Africa. What made this deal the deal of the century for the two countries?

To retain significant oil and gas industry value within Africa, a good number of oil and gas deals must have African players at both ends of the table. Having two African countries successfully complete a deal such as the Block B2 acquisition, goes one step ahead in my opinion as the local content imperatives of both countries will be afforded full expression. Also, for South Africa and South Sudan, the upstream and downstream synergy potentials on the deal is huge and perhaps a worthy model for cementing of relations between African nations.

You’ve worked on some of Africa’s most significant Energy deals and top matters. Where have you seen sustained impact and what can other countries/ministries learn?

I am passionate about the African oil and gas industry working for Africans, not only in terms of revenue generation, but also in terms of other KPIs such as energy availability for African industries, engagement of the local private sector across the oil and gas value chain and the development of technical capabilities. I have seen significant efforts across board with increasing involvement of African players on these KPIs but a lot more are needed.

In terms of scaling up technical capabilities where significantly more impact is required, I believe more opportunities must be afforded to the local private sector players in Africa, because, let’s face it, skills and capabilities are neither gender nor race exclusive. There is an all-but-scientifically-proven standard amount of formal education, practical experience and financial resources required to ramp up to the desired level of capability on any given project. Perhaps regulators will have to be more scientific in aggregating these three elements and making them available to local players.

What do you wish you had known about the legal profession before becoming an attorney?

Simply put, the importance of the legal profession to African economic development. I would argue that many African countries would have been better-served by being afforded sound legal advisers at the deal table than peace-keeping soldiers and foreign aid.

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 Leadership Urged to Tackle Youth Unemployment Urgently

African leaders have been urged to tackle the youth bulge and address as a matter of urgency the imploding unemployment crisis facing young people across the continent. This was the submission at The 2019 African Economic Conference (AEC) which opened in the Egyptian resort city of Sharm El Sheikh today, with a call on African policymakers to take bold steps to tackle red-tape and high startup costs in order to create decent and well-paying jobs for the continent’s youth.

Addressing the opening plenary of the three-day conference, Egypt’s Minister of Investment and International Cooperation, Sahar Nasr said the conference provided a critical platform to address the challenges of jobs for the youth on the continent.

“Africa is the next development frontier and the youths will be the main drivers of our continent and our hope for a new continent,” Nasr said. “We need to think strategically and plan for the youths of today.”

For the country’s Central Bank Governor, Tarek Amer, who is also Egypt’s Governor for the African Development Bank, “this is a matter that all policy makers across our continent are concerned about – we all have a vision to create jobs and boost entrepreneurship…and the issue is how to convert the vision into reality.”

Charles Leyeka Lufumpa, acting Chief Economist and Vice President of the African Development Bank Group, said a lack of jobs for the bulging youth population has become a troubling socio-economic and political emergency that requires urgent, pragmatic and forward-looking solutions.

“It is troubling because joblessness could result in unrest and conflict. Having a decent job is an essential part of human dignity, and joblessness could threaten our social fabric and cohesion.”

The Bank has several other initiatives that have contributed significantly to youth empowerment across Africa. Notable among them is its Jobs for Youth Strategy to create 25 million jobs by 2025 and to equip another 50 million young people with a mix of hard and soft skills to increase their employability and entrepreneurial success.

With a little more than a decade left to achieve the targets of the UN’s 2030 Agenda for Sustainable Development , the issue of youth productivity is critical for Africa, not least because the working age population is central to improving the continent’s productivity and competitiveness.

Adam Elhiraika, Director of Macroeconomics and Governance Division at the ECA, said to prepare young people for productive future work, governments should include in the educational curriculum action-oriented entrepreneurship modules for secondary, technical schools and universities.

Governments and development partners must help young entrepreneurs to identify financial help schemes, including grant schemes for innovative ideas with multiplier benefits, revolving and guarantee funds.

“Africa should work hard to make its cities engines of growth that in turn will generate employment for the youth and ensure there’s equitable growth on the continent thus ensuring no-one is left behind as enunciated in the UN 2030 Agenda for Sustainable Development,” Elhiraika said.

One of the highlights of this year’s conference is a session for young African researchers to share their work and be the key proponents in shaping the future of the continent.

The AEC is jointly organized by the African Development Bank, the Economic Commission for Africa and the United Nations Development Programme yearly to discuss pertinent issues affecting the continent. This year’s event, the fourteenth edition, is hosted by the Bank on the theme; “Jobs, entrepreneurship and capacity development for African youth”.

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 Has All Ingredients for a New Era of Success

November 18, 2019

By NJ Ayuk

If you follow news about Africa, it’s easy to find disheartening headlines about the continent’s struggles. But those stories do not paint a complete picture. Every day, I read encouraging news about African entrepreneurs and business leaders who are making a positive impact.

A few examples: Kola Karim’s Shoreline Natural Resources has grown its upstream business through the acquisition of OML 30 a world class asset from Shell in 2010. OML 30 is onshore Nigeria, located less than 50 kilometers east of Warri. The lease covers 1,097 square kilometers with eight producing fields. OML 30 has 2P reserves of 1.2billion barrels of oil and 2tcf of gas reserves. Current production averages 70,00 bopd with potential to significantly increase to c. 300,000 bopd in the long term.

Nigerian oil tycoon Arthur Eze of Atlas Oranto Petroleum recently closed, alongside Noble Energy and Glencore, a $350 million deal on pooling supply from stranded gas fields in Equatorial Guinea and the Gulf of Guinea to replace declining output from the Alba field.

Benedict Peters, chairman and CEO of energy conglomerate AITEO Group will serve on the Board of Advisors for the U.S.-Africa Business Center. There he will be able to provide relevant insights that lead to valuable economic opportunities for Americans and Africans.

The Nigerian Natural Gas Association, which just celebrated its 20th anniversary, is thriving under the leadership of President Audrey Joe-Ezigbo, the association’s first female president.

Sahara Group, an energy and infrastructure conglomerate, has teamed up with the United Nations Development Programme to create the Africa Renewable Energy Forum. Sahara Group, which is under the leadership of Executive Director Temitope Shenube, says the forum’s objective is to provide access to sustainable energy for 10 million African households through alternative energy initiatives and interventions.

The point is, exciting things are taking place in Africa.

When I wrote Billions at Play: The Future of African Energy and Doing Deals, my goal was to help readers envision a new future for Africa, a future they could help shape. I want people to see that Africa doesn’t have to be subject to a resource curse, and with the right strategies and policies, Africa can reap the full benefits of its oil and gas resources.

But that’s only part of the story. I also want people to understand that Africa has more than petroleum resources going for it: the continent also is rich in people who refuse to give up on Africa, people who are working to guide the continent toward a more stable and prosperous future. We have energetic entrepreneurs and government leaders committed to the African dream of stability and prosperity; increasing numbers of female professionals and leaders bringing their talents to the table, and successful petroleum sector leaders who want to channel their expertise and resources into Africa’s future.

When you combine the people working for a better African future with the steady flow of opportunities we’re seeing in oil and gas — including several major discoveries in the last few months alone — great things can happen.

Committed to Africa

Long before Nyonga Fofang took the helm of private equity firm Bambili Group in South Africa, the Harvard-educated financier made a name for himself on Wall Street. I quoted him in my book to help make a case for the importance of foreign investment in Africa. But in addition to being a source of valuable finance insights, Fofang is an example of Africans who are sharing the benefits of their Western educations and career experiences with their home continent. These Africans are harnessing the insights and ingenuity they have gained abroad and putting them to work for the good of Africans.

Another excellent example of that dynamic is Gabriel Mbaga Obiang Lima, the Minister of Mines and Hydrocarbons of the Republic of Equatorial Guinea. Lima earned his bachelor’s degree in International Trade from Alma College in Michigan before going on to build a successful career in Equatorial Guinea. Today, this highly respected OPEC Minister is known for his effective leadership in Equatorial Guinea and around the world, where he plays a critical role in the country’s increased petroleum exploration and production activity.

Fofang and Lima are not isolated cases: a recent survey by pan-African equity firm Jacana Partners found that 70 percent of African MBA students at the top schools in American and Europe planned to return home after graduation. And in a survey by the Association of Commonwealth Universities, 400 doctoral students from Africa said they intended to return to their home country after completing educations abroad. Many Africans are committing to playing a role in their continent’s success, and that bodes very well for the continent’s future.

I would like to add, though, that Africa also benefits from people who have left the continent, but continue to find ways to support their home communities and countries. The African diaspora, comprising more than 30 million people around the globe, can make significant contributions to Africa’s socioeconomic well-being. That can take the form of knowledge and technology sharing, investments, and participation in civil society and advocacy efforts. We do see that happening now, and I hope to see an even more engaged Africa diaspora going forward.

Fully Capitalizing on Africa’s Talent

As I wrote in Billions at Play, female leaders excel at what they do. When women are given the opportunity to lead, we see the businesses, governments, and organizations under their guidance reap the rewards. That’s why we all should be excited when we hear about woman rising to positions of power and influence in Africa.

One of the women featured in my book, for example, has been transforming Africa’s tech sector. Rebecca Enonchong is an innovator who not only thinks outside of the box, she is developing better boxes altogether. Enonchong is the founder and CEO of AppsTech, which provides solutions for businesses and organizations around the globe, and of the I/O Spaces incubator for members of the African diaspora in the U.S. She also is the chair of ActiSpaces (the African Center for Technology Innovation and Ventures) and of AfriLabs, a network organization of more than 80 innovation centers across 27 African countries. And she is a founding member of the African Business Angel Network. Earlier this year, she was among the tech trailblazers featured in the augmented reality art experience “Nyota,” in Lagos, which was created to honor those who have contributed significantly to the growth of innovation and the technology ecosystem in Africa. Enonchong continues to innovate, to lead, and to create meaningful economic opportunities for Africans.

And she is one of many examples I have written about. Another is Catherine Uju Ifejika, Chairman/Chief Executive Officer of Nigerian energy services company, Brittania-U Group. Under her effective leadership, Brittania-U Group creates business opportunities for other indigenous companies, along with training and full-time jobs.

Another African leader to follow is Audrey Joe-Ezigbo, whom I mentioned earlier in this piece. In addition to her role with the Nigerian Natural Gas Association, she is the co-founder of Falcon Corporation Limited, an indigenous midstream and downstream gas outfit. She also is an author; on the Executive Council of Women in Management, Business & Public Service; is the founder of The Barnabas Widows Support Foundation; and provides business and relationship-building training to couples that are in business together.

Lets not forget, Elizabeth Rogo – Founder & Chief Executive Officer Tsavo Oilfield Services. Elizabeth’s trailblazing path includes being the first woman to lead American oilfield service company Weatherford’s Sub-Sahara division to hold country and regional management roles when she was appointed Country Manager (Kenya) then East Africa Area Manager (Kenya, Uganda, Tanzania, Mozambique and Ethiopia) from 2015 until 2017 before starting her own oilfield Services company – another first for a woman in the region.

I am not saying women have more to offer Africa than men, both have a great deal to offer Africa. Why shouldn’t our continent benefit from all of its talent? I am excited to see more women contributing to economic development and innovation in Africa, and I know the continent will continue to benefit as more determined business leaders, male and female, join their efforts.

Movers and Shakers

Arthur Eze is another powerful example of African business leaders working for a better African future. Eze, usually referred to as Prince Arthur Eze because he is descended from tribal royalty, is the founder of Atlas Petroleum International and Oranto Petroleum. He is known not only for his business successes, but also for his philanthropy. Last year, Oranto started building two primary schools in South Sudan, where the company has an exploration license for Block B3. Oranto also has committed to a five-year teacher training program in South Sudan.

Petroleum industry leader Benedict Peters has a strong track record of impactful business and charitable activities as well. He has been recognized for helping Nigeria develop its energy industry, and for transforming Aiteo Group from a small downstream operation to an integrated energy conglomerate. Aiteo is a regular support of organizations like FACE Africa, which provides clean water to sub-Saharan Africans. Peters’ organization, the Joseph Agro Foundation, addresses unemployment and water shortages by creating job opportunities for farmers.

Then there is Sahara Group. Under the leadership of Executive Director and co-founder Temitope Shenube, the Nigerian energy and infrastructure conglomerate empowers the communities where it works. The company’s charitable arm, Sahara Foundation, supports health, education and capacity building, environment, and sustainable development initiatives.

What we are seeing in Africa is a pattern of African petroleum-sector leaders taking meaningful steps to make life better in Africa.

Endless Energy Opportunities

Africa has no shortage of people determined to improve its future, and it has what it needs to fuel their efforts: enormous stores of oil and gas resources. The last 12 months have been an exceptionally exciting time in terms of discoveries.

In offshore Mauritania, Kosmos Energy recently announced a massive natural gas discovery that could yield as much as 50 trillion cubic feet of gas. Total discovered what could amount to 1 billion barrels of oil equivalent offshore South Africa’s Brulpadda field. BP and Kosmos Energy announced a discovery in the Yakaar-2 appraisal well, offshore of Senegal.

We are also seeing tremendously promising activity in Mozambique. Earlier this fall, ExxonMobil announced a $33 billion enlargement of Mozambique’s Rovuma liquid natural gas (LNG) complex. Total, meanwhile, says it will expand its Mozambique LNG project it recently acquired from Anadarko. Both projects are likely to create tens of thousands of jobs, bolster the economy, and raise everyday people’s standard of living.

And these are only a few examples of Africa’s many petroleum-related opportunities. Of course, we need to act thoughtfully and decisively to capitalize on them and make sure that everyday Africans benefit from them. African countries need to monetize their natural resources and use the resulting revenue to build much-needed infrastructure and diversify economies. We must insist on governance that encourages exploration and production, effective local content policies, and an end to corruption. We need to be making better deals and developing new models for managing oil revenue.

Instead of looking to foreign aid, we need to develop strategic partnerships with foreign companies willing to share knowledge. And while we are capitalizing on petroleum resources, we also need to embrace sustainable energy sources and plan now for Africa’s energy transition. I cover all of these topics in great detail in my book.

The African Dream is Within Our Reach

Africa is home to infectious optimism and tenacity. We’re seeing it in Africans who’ve achieved success and now work to help other Africans do the same. We are seeing it in women who are overcoming gender stereotypes and obstacles to take their rightful place as industry leaders. And, we are seeing it among petroleum executives who are offering meaningful support and opportunities to African communities.

Africa is an exciting place in an era of huge potential. That’s why the time is right to join the fight for its future. Whether you are an African entrepreneur, a member of the diaspora, or a foreign investor, your efforts today have more potential than ever to make a positive impact.

NJ Ayuk is the CEO of Centurion Law Group and the Executive Chairman of the African Energy Chamber. His experience negotiating oil and gas deals has given him an expert’s grasp of Africa’s energy landscape. He is the author of “Billions at Play: The Future of African Energy and doing deals.”

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 can be world’s next economic hub if…. Tharman Shanmugaratnam

November 6, 2019

With the right policies and linkages, Africa can become an indispensable global economic hub, Singapore’s Senior Minister Tharman Shanmugaratnam told an audience yesterday, commending the continent’s diverse economic potential. Delivering this year’s Kofi A. Annan Eminent Speakers’ Lecture series at the African Development Bank headquarters in Abidjan, Shanmugaratnam outlined five strategies which must underpin the continent’s transformation drive and efforts to build inclusive growth.

The lecture which is the third in a new series organised by the African Development Institute in honour of late Kofi Annan, had the theme: “Inclusive Growth: Learning from Experience, Partnering for the Future – How Africa and Asia can work together for broad-based prosperity.” He was accompanied by senior government officials from Singapore.

According to him, Africa must spread its economic openness by strongly showcasing specialisation along the production value chain and invest more boldly in social foundations. The continent must also maximise policy coherence and effectiveness, think in the long-term and maximise the benefits of global financial system, Shanmugaratnam told diplomats, students, government representatives and senior Bank officials gathered in the Babacar Ndiaye auditorium.

“There are challenges, but there are also opportunities. There is much more to be done,” said Shanmugaratnam who is also Singapore’s Coordinating Minister for Social Policies. In order to build economic resilience and create job opportunities for their bulging youth population, there must be stronger connectivity and economic interaction among developing regions, especially between Africa and Asia which share demographic similarities.

He noted that there is a significant interest by Singapore businesses in Africa which needs to be scaled up. “We need to take practical steps to spur this collaboration with more bilateral investment treaties that provide some assurance to investors.” Singapore is the eighth largest foreign investor in Africa. It invested around $90 billion in the continent in 2018.

“We are in an unusual time globally – a time of unusual challenge where some of the basic beliefs of how the world prospect together are being challenged. But it’s also a time of immense opportunities… in the international economy, in international finance and in international cooperation,” the minister stated.

It is projected that in the next decade, Africa will have the largest working age population in the world, larger than China and India with about 1.1 billion people of working age population of between 15 and 64 years. Shanmugaratnam said African leaders must prepare to take advantage of the strong bulging workforce, coupled with the high mobile technology penetration to drive innovation for growth.

In his welcoming remarks, Bank Group President Akinwumi Adesina noted that Africa could learn a lot from Singapore. He described Mr Shanmugaratnam as someone with expansive knowledge who was chosen because of his inspiring works in the Asian nation.

Adesina said the Eminent Lecture series was dedicated to Kofi Annan, a former Secretary-General of the United Nations (UN) in recognition of his contributions to humanity. Annan launched the UN millennium development goals.

“As we continue our efforts to do more, we want to learn from the impressive achievements of Singapore, and no one is better placed to discuss this and all of the things around Asia and Africa with us than Tharman Shanmugaratnam,” he said.

The African Development Bank launched the Eminent Speakers Lecture series in 2006 to provide a platform for a robust exchange of ideas to meet the challenges of African development. Since then, the series has featured world-class speakers, politicians, top academics, businesspeople and civil society representatives, who have spoken on a diverse range of topics and issues, including economics, finance, regional integration, human development, the environment, and philosophy.

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 GOVERNMENTS URGED TO IMPROVE EDUCATION

October 26, 2019

IT is morally unacceptable and bad public policy to have children that cannot read at the age of 10. This was the consensus of panellists at a seminar titled, “Learning Poverty: Building the foundation of human capital”, at the just concluded IMF/World Bank annual meetings.

The panellists frowned at the situation where a terribly high percentage of children in Sub-Saharan Africa cannot read at age of 10. This, they contend, is at the root of global poverty. Investing in human capital is therefore pivotal to eliminating the scourge of poverty globally.

Kelvin Watkins, Chief Executive of ‘Save the Children’, identified the incidence of malnutrition, shortage of qualified teachers and inequality in the society, as possible causes of this anomaly that must be addressed. He said that investing in human capital and learning is pivotal to eliminating the scourge of poverty globally.

Ivo Ferreira Gomes, Mayor of Sobral, Brazil, believes that specially trained, adequate, loving and happy teachers constitute a major fundamental to breaking this yoke of learning poverty.

Annette Dixon, Vice President, Human Development, World Bank Group, summed up the discussion. She said that “beyond fiscal reforms, children must first survive and thrive, families must have access to quality services, girls must have the same opportunities as boys, parents must have economic opportunities, and countries must have policy approaches that allow all of this to flourish.”

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 NEEDS TO CREATE MORE JOBS FOR ITS TEEMING YOUTH

October 22, 2019

IT would not have been a bad thing had participants at the conversation on Jobs and Economic transformation observed a minute’s silence in honour of Mohamed Bouazizi, the Tunisian youth whose daring self- immolation sparked off the Arab Spring. The Government of Tunisia could not give the youngster a job, yet it would not allow him eke out a living selling vegetables in the streets!

Governments in much of the world, especially in Africa, are as guilty as the government of Zine el-Abidine Ben Ali which drove Bouazizi to despair and ultimately to suicide in 2010. Many of them seem oblivious to the danger of growing armies of unemployed youths in their domains even as they crave economic development and social stability. They seem not to notice rich governments’ (particularly the US’) obsession with “job numbers” and the strategic economic significance.

Kenya’s Cabinet Secretary, Ministry of East African Community and Regional Development, Adan Mohamed

Africa has the fastest growing youth population in the world and now suffers the effects of so-called ‘youth bulge’, the presence of idle and unemployed young people in the developing world, which is a catalyst for internal violence as seen in Nigeria, Pakistan and Afghanistan.

The World Bank reckons that Africa needs to create an incredible 1.7 million jobs every month over the next 30 years to avert cataclysmic social upheaval. The pace of job creation is simply not keeping pace with population growth and expectations of African leaders meeting the challenge are bleak.

Kenya’s Cabinet Secretary, Ministry of East African Community and Regional Development, Adan Mohamed, is bothered about African youths’ lack of skills and education for most jobs in today’s technology-driven world. He therefore advises that focus should be placed on developing such labour-intensive sectors as textiles, leather and agro-based industries where the continent has comparative advantage. He projects that in 10 years, millions of low-end manufacturing jobs will move from China to Africa. When that happens, he says, the challenge would shift to market access, which may require replications of the US-inspired African Growth and Opportunity Act (AGOA).

Dr Sahar Nasr, Egypt’s Minister of Investment and International Cooperation, believes much depends on government making the right policies to incentivize the private sector to play its role as a job creator. She cites the importance of infrastructure and liberal markets in the economic development and job creation. She cautions on the wrong use of subsidies, which, perversely, end up hurting the very people they are meant to help by scaring the private sector away. A good example is Nigeria’s fuel subsidies which have kept investors away from the downstream sector of the strategic oil sector. The result has been underinvestment in the sector, which in turn has underperformed as a job creator.

Another panelist, Peter Njonjo of Twiga Foods thinks African farmers can make good living if the retail sector were not so fragmented and disorganized. Noting that 50 percent of disposable income in Africa is spent on food, he contends that agriculture can contribute more to job creation efforts and economic development than it currently does. His position is buttressed by Nadim Ahmed of India’s Global Tea and Commodities who sees value addition to primary products as the way forward. Ahmed believes that Africans can be innovators as demonstrated by Kenya’s MPESA, which led the world in the mobile money business.

The world may yet overcome the jobs problem, if Mastercard Foundation’s Reeta Roy has her way. She hopes to get 30 million youths worldwide find dignified work as opposed to just “jobs” within the next decade. Focused on Africa, the Foundation is committing funds to education and skills acquisition to prepare youths for sustainable employment in today’s fast-changing world.

The World Bank, the seminar’s convener, says it is changing its techniques for dealing with global unemployment in tune with Rwandan President Paul Kagame’s advice that “we all must change our mindset”. The Bank’s “Cascade Approach” obliges it to switch from reactive to a proactive. It has upturned its strategy by first designing programs and projects before going after private sector investors to key in as it does with its Solar Energy intervention paradigm. This new approach has also encouraged it to open up 9 new country offices to complement the old 25 located worldwide. The time for sermonizing is over.

That is the way to go. The Bank can now use its own example rather than precepts to encourage governments and policymakers to tackle the scourge of unemployment before another Bouazizi moment erupts.

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.

Mahamadou Issoufou brings African vision to the World at the Dialogue of Civilizations

October 15, 2019

The Dialogue of Civilisations which took place during the 17th Rhodes Forum on the 11th and 12th of October 2019 was organised by the Dialogue of Civilizations Research Institute, to discuss several national and regional issues and offer Africa’s vision on major international issues. Special guest at this year’s event was the President of Niger Republique and present Chairman of the African Union, President Mahamadou Issoufou.

President of Niger Republique and present Chairman of the African Union, President Mahamadou Issoufou

President Issofou used the opportunity to present his vision for Africa and Niger, advocating for multilateralism and drawing attention to the security situation in the Sahel region and Lake Chad Basin, the situation in Libya and support of the international community to combat terrorism in West Africa. He warned that the problems posed by climate change and illegal migration if left unattained to will create another circle of violence across the region.

This event comes at a time Niger is ascending the position of a non-permanent member of the Security Council from January 2020 thus it has a big role in projecting African interests and representations. Another issue he highlighted was the challenges of counterfeiting in drugs across the markets in Africa. He equally called for reforms in global political and economic governance and win-win cooperation between countries.

On the next day of the Dialogue, President Issoufou concluded by participating in a panel dedicated to partnership between Africa and the rest of the world. The Panel discussion was moderated by Hannane Ferdjani of Africanews. Participants included the Founder of Transparency International, Africa Progress Panel Co-Chair Mr Peter Eigen from Germany, Founder and President of the Brazzaville Foundation Mr Jean Yves Olivier from France, former Prime Minister of Guinea Mr Kabiné Komara, Director of Education Projects of ABO Capital Mr Jaimie Graça from Angola and South African Industrialist, Entrepreneur and Philanthropist Mr Ivor Ichikovitz.

In his speech, President Issoufou raised all the issues related to this theme and clarified his vision for the development of Africa. His Excellency Mahamadou Issoufou emphasised the challenges and prospects inherent in the development of the African continent, recalling the situation of Africa in various fields and underlining the efforts led by its leaders through, inter alia, Agenda 2063 and its various Plans and Projects, including ZLECAf.

President Issoufou again thanked the Dialogue of Civilizations Research Institute and in particular its Chairman of the Board of Directors, Dr. Vladimir Yakunin and Executive Director Mr. Jean-Christophe Bas, ‘for having provided him, as a Special Guest, at this 17th Rhodes Forum, a privileged place of reflection and analysis to help in the decision-making of political and economic world leaders.’

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.

South Africa, Angola, Senegal and Equatorial Guinea Set to Launch Investment reports on Oil and Gas

October 6, 2019

Four African countries are set to launch investment reports on their oil and gas sector with aim to attract the right investors and quality investment in their emerging petroleum industry. Aside Angola and Equatorial Guinea, South Africa and Senegal, being new comers in the industry want to leverage on the knowhow of the traditional oil giants in the continent to promote their oil industry. The reports will be contained in the Africa Oil & Power’s (AOP) Africa Energy Series (AES) reports set for launching at the 2019 AOP conference which comes up from 9th to 11th of October, in Cape Town South Africa.

Nelisiwe Magubane, Chairman, Matleng Energy Solutions

It is expected that ministers from South Africa, Senegal, Angola, and Equatorial Guinea will present the country-specific investment reports throughout the three-day conference; all delegates attending AOP 2019 will receive a copy of the AES reports says Nelisiwe Magubane, Chairman, Matleng Energy Solutions. Other organizations that will participate at the event are Power Africa Increasing Electricity Access, Gas Mega Hub Equatorial Guinea, Standard Bank Mozambique LNG FID. Moreso Adewale Fayemi, Managing Director, Total E&P South Africa will receive the Big Five Energy awards at the event.

The Africa Oil & Power’s (AOP) Africa Energy Series (AES) investment reports provides a broad outlook on the energy sectors of South Africa, Angola, Senegal and Equatorial Guinea, the AES investment reports are a compilation of resources, articles and interviews with key industry players examining the potential and challenges in each country’s petroleum industry.

The investment reports are a vital resource for investors entering or expanding their presence in the continent’s energy sector. Covering both macro and micro-dynamics, the AES reports are one of the few holistic and informed resources available for an otherwise information scarce industry. H.E. Gwede Mantashe, South Africa’s Minister of Mineral Resources and Energy, will launch the South Africa report on the first day of the AOP conference, followed by H.E. Mouhamadou Makhtar Cisse, Senegal’s Minister of Petroleum and Energy who will present the report on Senegal, which has been endorsed by H.E Macky Sall, President of Senegal as “the official publication documenting the immense investment opportunities within our oil and gas sector and within our country.”

Showcasing the country’s energy industry, the AES: Angola report will be launched on the second day of the three-day conference. Endorsing the report, the country’s President H.E. João Manuel Gonçalves Lourenço said: “At a time when our country stands resolute in its efforts to attract investment and promote partnership in all segments of the energy value chain, it has never been more critical to showcase the vision that our country has for its petroleum and gas industry to the rest of the world,”

Adding that, “I am honored to present the Africa Energy Series: Angola 2019 report as an official publication exploring the past achievements, future endeavors and untold investment opportunities present in our ever-growing oil and gas industry.”

H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of Equatorial Guinea will present the AES: Equatorial Guinea 2019 report, which has been embraced by the country’s President, H.E. Teodoro Obiang Nguema Mbasogo as a means to honor the contributions of individuals, organizations, government and the private sector who have remained committed to the country’s development.

“I am delighted to present the Africa Energy Series: Equatorial Guinea 2019 report as the official publication documenting the Year Of Energy and detailing the oil and gas achievements of this country,” said President Mbasogo, while endorsing the country’s second AES investment report. The conference will be opened by keynote speakers H.E. Macky Sall, President of Senegal; Minister of Mineral Resources and Energy of South Africa, H.E. Gwede Mantashe, Minister of Mines and Hydrocarbons of Equatorial Guinea, H.E. Gabriel Mbaga Obiang Lima, and NJ Ayuk, Executive Chairman of the African Energy Chamber.

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

September 26, 2019

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

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

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

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

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

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

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

Kelechi Deca

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

President Ramaphosa Envoy, Jeff Radebe Promises to Mend Fences across Africa

September 21, 2019

As South Africa reels from the after effects of the xenophobic attacks on nationals from other African countries, more countries have ramped up evacuation processes of their citizens in the country; President Cyril Ramaphosa’s special envoy to select African countries assures fellow African countries that the government is taking every necessary step to ensure a safe and secure South Africa. The team started their visits from Nigeria where they met with President Muhammadu Buhari, from there they went to Niger, Ghana, Senegal, Tanzania, the Democratic Republic of Congo and Zambia to deliver a message of solidarity from President Cyril Ramaphosa.

President Cyril Ramaphosa of South Africa

However, more countries have continued the evacuation of their citizens from South Africa which observers see as a draw back to the shuttle diplomacy engaged in by President Ramaphosa and his government. It could be recalled that a second batch of over 300 Nigerians were evacuated from South Africa over the week, while countries like Malawi, Zambia and Zimbabwe have also been evacuating their citizens from South Africa.

Analysts say that South African government has been under enormous pressure to assure the world that their country is safe for foreigners because the xenophobic attacks has had negative impacts on consumer confidence, and the economy in general as the hopes of the economy coming out of recession dims. The country is working hard to address its dented image abroad.

Inspite of the development, the Special Envoy which consists of South Africa’s former Minister of Energy, Jeff Radebe, Ambassador Kingsley Mmabolo and Dr Khulu Mbatha, a veteran of the African National Congress; President Cyril Ramaphosa is determined to assure fellow African countries that the government is taking every necessary step to ensure a safe and secure South Africa; Special Envoy Jeff Radebe is the 2018 recipient of the Big Five Energy award presented by Africa Oil & Power (AOP).

The group of Presidential Special Envoys will deliver a message of solidarity from South Africa’s President Cyril Ramaphosa to the heads of state as a means to assure them that the government is committed to addressing xenophobic attacks which sparked in the Gauteng province earlier this month.

“The Special Envoys are tasked with reassuring fellow African countries that South Africa is committed to the ideals of pan-African unity and solidarity. The Special Envoys will also reaffirm South Africa’s commitment to the rule of law,” said an official statement by The Presidency of the Republic of South Africa.

Special Envoy Radebe already met with Nigeria’s President Muhammadu Buhari; President of Ghana, Nana Akufo-Addo and Senegal’s President, Macky Sall since the tour started on September 14, 2019. Buhari assured them that the recent ugly incident will not taint the good diplomatic relationship between Nigeria and South Africa, but called on the South African government to take stringent steps to ensure such occurrence never repeats itself.

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.