The 29th Oversight Committee (OC) meeting of the New Partnership for Africa’s Development Infrastructure Project Preparation Facility (NEPAD-IPPF) Special Fund held at the headquarters of the African Union Commission in Addis Ababa, Ethiopia, has ended with calls for increased investments to accelerate the closure of Africa’s infrastructure gap.
The meeting which was hosted by the AUC and chaired by KfW Development Bank (Germany). Topics discussed included the NEPAD-IPPF Independent Review report, the introduction of reimbursable grants as part of the new business model, the mid-year progress report, updates on continental infrastructure initiatives, and adoption of a proposed joint AUC/AUDA/AfDB Domestic Resource Mobilization Strategy.
Michael Andres, the Oversight Committee Chairman, commended the achievements of NEPAD-IPPF and noted that more resources are required given the increasing demands being made on the fund.
“The NEPAD-IPPF Special Fund must continue to focus on key priorities, such as PIDA Projects to support the African 2063 Agenda,” Andres said.
While speaking on the Fund’s progress in the first semester of 2019, African Development Bank Director for Infrastructure and Urban Development Amadou Oumarou urged participants to consider the continent’s enormous infrastructure needs.
“New contributions from Spain (Euro 3 million) and the African Development Bank (UA 3 million) are indications of confidence in the Fund’s ability to successfully fulfill its mandate, and also recognize that the NEPAD-IPPF is playing a critical role in infrastructure development in Africa. It is therefore expedient for (the Fund) to be further strengthened with the necessary resources to enable it to meet its objectives and mandate,” Oumarou said.
The meeting convened over 30 participants including donors providing financial support to the NEPAD-IPPF Special Fund, representatives from the African Development Bank, the African Union Commission, the African Union Development Agency (AUDA-NEPAD), Regional Economic Communities (RECs), River Basin organizations and regional corridors authorities.
For AUC Director for Infrastructure and Energy, Cheikh Bedda, “The Programme for Infrastructure Development in Africa (PIDA), and Africa’s infrastructure priorities cannot be implemented without adequate resources committed to the NEPAD-IPPF, a critical instrument to prepare high quality bankable regional infrastructure projects across Africa”.
Providing updates on the Fund’s operational performance NEPAD-IPPF Fund Manager Mike Salawou, stated that cumulative contributions by donor partners including the African Development Bank amounted to $102 million, out of which $96.1 million had been committed to approving 91 projects. As at June 2019, 60 studies have been completed, 9 canceled and 22 are on-going, he noted.
The African Development Bank approved in June 2019 the allocation of UA 3 million from its 2018 Net Income to NEPAD-IPPF. In addition, the Spanish Government announced a new contribution of EUR 3 million to NEPAD-IPPF in May 2019.
Among the studies completed by the Facility, 30 have so far reached financial close and attracted financing of $24.2 billion for the physical implementation of power plants, bridges, ports, roads, hydropower schemes, and ICT projects. Of these successful projects, 17 have been constructed, 11 are under construction and two are yet to commence.
“While disbursements of committed funds on supported projects have reached a record, beyond that and without any new contributions to the Fund, NEPAD-IPPF will not be in a position to support additional project preparation activities, therefore, there is a need for urgent replenishment of the Special Fund,” Salawou stressed.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
The 3rd Women in Africa Annual Summit which took place on Marrakech from June 27th and 28th, 2019, attracted delegates from over 80 countries with a mandate to African women to rise to the need to take a leading role in defining how they want to develop business with the rest of the world.
According to Hafsat Abiola, President of Women In Africa, “together we are and we will change the centuries’ old story of Africa through the magic of women from all part of Africa, from Asia, the Middle East, and America and from the few men who have understood that we are changing Africa for the greater good of all of us”.
The ‘greater good’ was symbolized by the exceptional presence of Alaa Salah, the 22-year-old Sudanese student, now known throughout the world as the Lady Liberty of Sudan after she spoke up in a demonstration demanding the installation of a democratic and civilian government in her country. As she did last April, she reminded the audience the poem she read, standing fearless on top of a car: “It is not the bullet that kills; What kills is the silence of people.”
The 550 women and men leaders, representing the economic, governmental, cultural and civil society from more than 80 countries never kept silent during the Women In Africa third annual summit and the parallel WIA54 program dedicated to laureate women entrepreneurs coming from every African country but one.
Under the High Patronage of his Majesty King Mohammed VI, the Women in Africa annual conference welcomed for the first-time official delegations from the United States, the Middle East, and Asia. Together, they worked on the theme: “How African Women Engage the World and Create a New Paradigm.”
“If you get the right people together and get them engaged on subjects, great things happen,” said the Kuwaiti Princess Intisar Al Sabah who attended the conference along with a delegation from her home country. “From the opening speech, the whole subject was: ‘let us collaborate for a better Africa and a better world.’ This set everyone’s mood to engage and collaborate with one another.”
Three specific sessions addressed how Africa can revisit its business relationships with America, Asia, and Europe. “We have to stop thinking ‘charity’ when we talk about women of Africa,” said Aude de Thuin founder of Women in Africa and of the Women’s Forum for the Economy & Society. “The only message is, ‘women in the economy are at the same level as men,'” de Thuin added.
If Africa has done a lot of work in terms of empowering its population to be able to scale up and create a wealthy continent, there remains a gap in how the rest of the world understands the kind of development Africa is going through.
The presence of Africa and of African women in the media around the world appeared to be one of the two key paths toward creating a new paradigm. As American television anchor and lawyer Star Jones explained, it is urgent that Africa and especially African women write their own narrative. “In other words, you do not want to allow the news media to dictate how the world sees you,” Jones said. “You write your own narrative and you tell the world who you are.” “Africa is capable of producing its own images and telling its own stories,” added Denise Epoté, Regional Director for TV5 in Africa. The other path to a new paradigm is to take the lead of professional investment prospection in Asia, beyond India and China through a demanding process that includes transparency and positive social impact.
Acknowledging the growing diversity of African-Asian economic exchange, delegates agreed that Europeans need to revisit their own business relationships with African countries and corporations to remain competitive.
The new African paradigm was also implemented at Women in Africa by the 53 women entrepreneur laureates of WIA54 2019, an initiative launched by WIA Philanthropy Foundation and aimed at high-potential African women entrepreneurs who are creating tomorrow’s Africa. They all participated in a two-day series of training workshops to guide them on the fundamentals of a startup at the crucial moments of its development.
“Africa is the only region in the world where more women than men choose an entrepreneurial career, a reality that underscores the work of Women in Africa Philanthropy, which we are proud to sponsor for the second consecutive year,” said Société Générale CEO Frédéric Oudéa in the closing of the summit. “Opening a field of possibilities to the feminine dynamic will have a certain impact on the future of the African continent.”
“The 53 Women Entrepreneurs represent every country of Africa but Eritrea,” explained its program manager Seynabou Thiam. “They were selected among 1,800 applicants, which confirms the force of women entrepreneurship in Africa,” Thiam explained.
“These young women entrepreneurs represent the future of not only their countries but the future of Africa and the world,” said WIA54 Godmother Ann Walker Marchant, founder of The Walker Marchant Group in Washington D.C. and a former White House Special Assistant to President Bill Clinton. “They are innovative, creative and fierce. They are breaking glass ceilings and changing the perception of business in Africa. These fresh faces are the future.”
Seven of the 53 WIA54 2019 were also honored and their projects distinguished on seven different themes during a ceremony that started and concluded with a spontaneous enthusiastic and emotional party:
* Ley Zoussi (Republic of Congo) in agriculture for Complete Farmer and her community agriculture platform; * Gladys Nelly Kimani (Kenya) on digital for Class Teacher Network and her application that digitizes the school path; * Fadzayi Chiwandire (South Africa) in education for DIV: A Initiative, her NGO that teaches young girls how to code; * Ehiaghe Aigiomawu (Nigeria) in fintech, for Vesicash and her instant escrow technology; * Corine Maurice Ouattara (Ivory Coast) in health, for her Mousso Health Pass, the digital medical record on connected bracelets; * Mariam Sherif (Egypt) in the environment, for Reform Studio, her eco-friendly design products; * Grace Camara (Sierra Leone) for social innovation, with RemitFund, which transforms the African diaspora funds’ transfers into social investments.
Roland Berger and Women In Africa published on this occasion their third study on African Women Entrepreneurs. Although Africa has more women entrepreneurs than any of the other continents (24% of women are entrepreneurs), African businesswomen could make their startup companies more sustainable and profitable if access to professional training, support, telecommunications, and banking structures were developed.
Other personalities such as Awa Ndiaye Seck (UN Women), Cathia Lawson Hall (Société Générale), Viviane Onano (Leading Light Initiative), Swaady Martin (Yswara), Alyse Nelson (President of Vital Voices), Rokia Traoré (singer-songwriter and cultural entrepreneur), Aïssata Diakité (Zabaan Holding), Francine Ntoumi, Oby Ezekwesili (#BringBackOurGirls) and Veronica Colondam (YCAB Foundation) participated in conversations that spanned from financial inclusion, women in science, arts & culture, the impact of climate change, development of women’s leadership, investing in the new generation of young digital innovators, facilitating women’s access to finance and agriculture markets, corruption and, gender among others.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
The African Export-Import Bank (Afreximbank) and the Japan Bank for International Cooperation (JBIC) have signed a general agreement for a $300-million export credit line, which can be availed in US dollars and euros, to support projects in Africa.
Afreximbank
The credit line will enable Afreximbank to provide funds for the import of machinery and equipment from Japanese companies and their overseas affiliates to support projects in the Bank’s 51 member-countries in Africa.
Demand for machinery and equipment, which are needed for economic development, is expected to continue to expand in Africa and the credit line will support the efforts of Japanese companies and their overseas affiliates to expand exports to the Africa region. It will also help to further strengthen the economic relationship between Japan and Africa.
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.
Independent report reveals the economic impact of Africa’s top hotel conference
An independent assessment by the international tourism advisory expert, Martin Jansen van Vuuren, a partner at Futureneer Advisors, has quantified the significant economic benefits to host countries of the influential Africa Hotel Investment Forum (AHIF).
He reveals that when AHIF returns to Addis Ababa at the end of September, it could bring over one and a half million dollars in direct benefit to the local economy, an additional two million dollars in indirect benefit and over a quarter a million in tax to the Ethiopian host government if spending at the 2019 event is a mere 10% more than when it was held in the city in 2014. This assessment is based on recent research of attendees at AHIF and a study on the economic impact of previous editions of the conference.
Looking back over the history of AHIF since the first conference in Casablanca in 2011, the event has made a total impact on the local host economies of $21.24 million of which $8.64 million in direct and $12.6 is indirect. In doing so, it has helped to create or sustain over 6,000 jobs and generate $1.4m in tax to the governments of the host countries. But that’s not all, the primary purpose of AHIF is to facilitate dialogue and ultimately deal-making between the top businesspeople present.
Two surveys of delegates attending AHIF events between 2011 and 2018 (segmented by delegates that did or did not conclude a deal) indicated an average value of $12.2 million per transaction in 2018 and $4.6 million over the 8-year period. On the assumption that these findings, which were based on a sample of delegates, were representative of the whole group of attendees, AHIF facilitated around $2.8 billion of investment in the hospitality sector across Africa in 2018 and $6.2 billion between 2011 and 2018.
Martin Jansen van Vuuren, said: “One important measure of AHIF’s success is the high-level of the delegates it attracts – the attending CEO’s and MD’s do not only spend more than average by staying in the best hotels but much more importantly, they are people with the ability to make decisions, including whether or not to invest in a destination – and that’s reflected in the value of deals done.”
Martin’s report also highlights intangible benefits that flow from hosting AHIF. These include increased awareness of the destination’s conference and tourism offering, improved credentials, which will assist bidding for future events and employment opportunities and skills transfer for workers in local supplier companies.
Matthew Weihs, Managing Director of Bench Events, which organises AHIF, said: “It’s exciting and gratifying to see how much the conference adds to the destinations we visit and to the hospitality sector across Africa. At this year’s event, I am aware of more serious investors coming with more money behind them than ever before, so it feels to me that the hospitality industry in Africa is rapidly becoming more mature and sophisticated.”
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
The African Development Bank Group said on Friday that two General Electric Co subsidiaries would be temporarily barred from bidding on power contracts as part of a settlement of misconduct cases.
The agreement bars GE Power units in Egypt and Germany from bidding for up to 76 months, the bank said. The units, former parts of Alstom that GE acquired in 2015, were found to have engaged in bribery and fraud in 2006 and 2011, the bank said.
“This conduct happened long before GE acquired Alstom’s power business and we cooperated fully with the investigation,” GE said in a statement. “Ethical behavior and compliance are foundational to GE’s ability to successfully operate in more than 180 markets around the world.”
Other development banks may also enforce the bans, the bank said. “We have no reason whatsoever to doubt that the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank and the World Bank Group will follow the African Development Bank’s lead,” Johann Benohr, a senior advisor to the director of the office of integrity and anti-corruption at the African Development Bank Group, said in an email to Reuters.
The barred entities are Alstom Egypt for Power Projects S.A.E., based in Cairo, and GE Power Systems GmbH, based in Mannheim, Germany, the bank said.
GE is trying to restore profits at its money-losing power business as the conglomerate slims down to three main product lines: power plants, jet engines, and wind turbines.
African Development Bank turns to a hedge fund to offset the risk
The pioneering deal comes as supranational face pressure to expand lending capacity
The African Development Bank is paying a New York hedge fund to take on some of the risks of losses on its loans in a pioneering deal which illustrates the growing financial sophistication of supranational institutions. The AfDB has bought insurance on a $1bn portfolio of loans from a group of investors led by Mariner Investment Group through a so-called synthetic securitization, in which the hedge fund does not acquire the assets but will take on $152m of default risk in exchange for returns in the low double digits.
Supranational organizations, which are backed by groups of nations and so enjoy the world’s highest credit ratings, are under pressure from the governments that fund them to seek new ways of bolstering their lending capacity. By turning to Wall Street to take on some of its lending risks, the AfDB has reduced the amount of capital it has to hold against the loans and thereby freed up more lending capacity. While this financing structure has already been used by banks — Mariner signed a similar deal last year with Crédit Agricole — it is the first time that a supranational development bank has engaged in this kind of financial engineering.
The deal will “super-charge our ability to invest in urgently needed projects across Africa”, according to AfDB president Akinwumi Adesina. “It leverages our financial resources so we can have more impact, and it creates new pathways that enable long-term investors to support Africa’s development while getting excellent financial returns.” In the decade since the financial crisis supranationals have significantly stepped up their capital markets activity, with their low cost of capital making them a cost-efficient way of financing development and infrastructure projects. However, they are still small by comparison to sovereign states’ finance-raising volumes — the assets of the world’s multilateral development banks are approximately equivalent to those of a medium-sized international investment bank.
Given governments’ reluctance to boost supranationals’ capitalization through additional financial contributions, the AfDB-Mariner deal has attracted political attention. Canada helped advise on its structure, the European Commission has insured a $100m tranche of the loans and Africa50, an investment platform backed by 27 African nations, also invested in the deal. Bill Morneau, Canadian minister of finance, said: “Attracting more private capital into global development efforts is critical to building economies that work for more and more people around the world. “That is why Canada and our G20 partners have been calling on multilateral development banks to use their existing resources as efficiently as possible and to look for new ways to attract more private capital.”
A report by thinktank ODI earlier this year concluded that synthetic securitizations were the best mechanism by which multilateral development banks could increase the amount of financial firepower they had available to lend. The AfDB’s deal covers approximately 40 loans to power, transport, finance and manufacturing projects across more than 15 African countries.
The bank has promised to lend the freed-up funds to projects which meet sustainable and social impact targets. The AfDB will take the first $20m of losses on the portfolio. Mariner portfolio manager Andrew Hohns said the deal “may well provide a template for unlocking significant private sector and impact capital into urgently needed projects in developing economies”. Mariner now hopes to sign similar deals with other multilateral institutions. Mizuho structured the transaction.
AfDB imposes debarments to restore integrity in project development.
March 25, 2019
Following years of investigation into alleged bribery and fraud, the African Development Bank (AfDB) and GE Power have reached a settlement on legacy Alstom misconduct.
The AfDB imposed debarments of 76 months and 12 months on former Alstom companies after it was found to have engaged in bribery and fraud in 2006 and 2011 in relation to two bank-financed Egyptian power generation projects. GE Power acquired the companies in 2015.
Last week, the bank announced a conclusion of a settlement agreement with GE Power, thus resolving sanctionable practices committed by former Alstom companies.
“Corrupt practices in the power generation sector directly undermine the African Development Bank’s operational priority to light up and power Africa. This can never be accepted by the Bank”, said Bubacarr Sankareh, manager of the investigations division within the Office of Integrity and Anti-Corruption.
Sankareh added: “We are very pleased that GE Power is joining us today in our efforts to fight corruption and to ensure the delivery of value for money to the bank’s regional member countries.”
Corrupt practices
An investigation conducted by the bank’s office of Integrity and Anti-Corruption established that in 2006 and 2011 the companies, then named Alstom Power Generation AG, Alstom Power GmbH, and Alstom Egypt for Power & Transport Projects, engaged in two instances of corrupt practices and in one instance of a fraudulent practice in the context of the bank-financed Suez Thermal Power Plant Project and the El Kureimat III Power Project, both in Egypt.
GE Power assumed control over these three companies in 2015 after the misconduct had occurred when it acquired Alstom’s thermal power generation business. As part of the settlement, the bank imposes on former Alstom Egypt for Power & Transport Projects S.A.E. (now known as Alstom Egypt for Power Projects S.A.E.), based in Cairo, Egypt, and on former Alstom Power Generation AG (now known as GE Power Systems GmbH), headquartered in Mannheim, Germany, a debarment of 76 months.
Debarment period
The debarment period may be reduced to 48 months if the companies comply with all conditions of the agreement early.
This debarment may be enforced by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions, including the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank and the World Bank Group.
Further, pursuant to the settlement, former Alstom Power GmbH (now known as GE Power GmbH), equally based in Mannheim, Germany, is debarred for a period of 12 months.
Among other conditions for release from debarment, GE Power commits to collaborate with the Office of Integrity and Anti-Corruption in the fight against corruption in the power generation and transmission sector.
Tender processing
In 2006, Alstom Egypt for Power & Transport Projects S.A.E. and Alstom Power Generation AG participated in a tender for steam turbine generators in the context of the Bank-financed El Kureimat III Power Project.
The companies indirectly paid an amount of €963,477 to their local agent.
The Office of Integrity and Anti-Corruption has concluded that one purpose of the payment was to ensure the support of public officials involved in the procurement process in order to gain an unfair competitive advantage in the tender.
Further, the Office of Integrity and Anti-Corruption established that the companies had erroneously only declared €50,000 in fees paid to its local agent.
In 2011, Alstom Egypt for Power & Transport Projects S.A.E., Alstom Power GmbH, and Alstom Power Generation AG, by then renamed Alstom Power Systems GmbH, participated in a tender for a steam turbine generator and condensers for the Bank-financed Suez Thermal Power Plant.
In the context of this tender, the companies indirectly offered €1.7 million to their local agent.
The Office of Integrity and Anti-Corruption has concluded that one objective of the offer was to ensure that public officials would assert undue influence on the procurement process in favor of the companies’ bid.
In reaching this settlement, the African Development Bank took into account General Electric’s substantial cooperation with the investigation of the legacy cases as well as the high quality of the company’s comprehensive compliance programme, which now applies to the Alstom entities acquired by GE Power.
African Development Bank debars CHINT Electric for 36 months for fraudulent practices
The African Development Bank Group has announced the conclusion of a settlement agreement with CHINT Electric Co., Ltd., a power transmission and distribution equipment manufacturer and EPC contractor.
An investigation conducted by the Bank’s Office of Integrity and Anti-Corruption established that CHINT Electric engaged in a multitude of fraudulent practices: In bidding for contracts in the context of numerous Bank-financed power projects, the company misrepresented its experience with similar assignments in order to meet qualification requirements.
As part of the settlement, in consideration of the company’s cooperation with the investigation, the African Development Bank imposes a debarment on CHINT Electric for a period of three years, subject to the company enhancing its corporate compliance program within that period to the institution’s full satisfaction.
During the debarment period, the company is ineligible to be awarded contracts under any African Development Bank-financed project or to be a subcontractor, consultant, supplier, or service provider of an otherwise eligible firm in the context of a Bank-financed project.
The debarment qualifies for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions, including the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank and the World Bank Group.
The African Development Bank will verify the adequacy of CHINT Electric’s compliance framework and the robustness of its implementation prior to any release decision. In addition, CHINT Electric commits to cooperate with the Office of Integrity and Anti-Corruption in its investigations of unrelated cases of misconduct in African Development Bank-financed projects.
The period of debarment may be reduced to 24 months if CHINT Electric complies with all conditions of the agreement early.
“Procurement under the Bank’s rules aims at ensuring optimal value for money for the Bank’s Regional Member Countries,” said Bubacarr Sankareh, Acting Director of the Office of Integrity and Anti-Corruption of the African Development Bank. “The misrepresentation of a bidder’s qualifications materially undermines this objective and is therefore taken very seriously by the institution.”
Between 2012 and 2017, CHINT Electric participated in the tenders for: the supply of 132-kV and 66-kV substation equipment for the Mendi substation and others in the context of the Bank-financed Rural Electrification II Project in Ethiopia, the supply of substation equipment in the context of the Bank-financed Emergency Power Infrastructure Rehabilitation Project in Zimbabwe; the design and supply of 132-kV equipment for the Yabello and Buee substations in the context of the African Development Bank-financed Rural Electrification II Project in Ethiopia.
It also participated in the design and supply of a total of four substations at Iringa, Dodoma, Singida and Shinyanga in the context of the Bank-financed Electricity Transmission System Improvement Project in Tanzania; the transmission rehabilitation of the Marvel and Chertsey substations equipment in the context of the African Development Bank-financed Emergency Power Infrastructure Rehabilitation Project – Phase II in Zimbabwe; works and equipment for the Prince Edward Dam substation and others in the context of the Bank-financed Emergency Power Infrastructure Rehabilitation Project – Phase II in Zimbabwe; and the transmission rehabilitation of the Sherwood and Orange substations in the context of the African Development Bank-financed Emergency Power Infrastructure Rehabilitation Project – Phase II in Zimbabwe.
In the context of the above tenders, CHINT Electric misrepresented the technical specifications, the value, the execution period and/or the degree of completion of contracts used as credentials in order to qualify for the tenders.
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.
AT least, four African countries are in the race to host the secretariat of the African Continental Free Trade Area (AfCFTA) scheduled to formally take off in July 2019. The countries are Egypt, Kenya, Ghana, and Senegal. It is understood that the AU Commission has set up a panel to evaluate the preparedness of each of the countries applying to host the secretariat.
However, Egypt’s chance of getting the nod of other member states to host the secretariat appears narrow. Egypt’s head of state, President Abdel Fatah al-Sisi, is the current AU chair. Moreover, Egypt is also the host country of the African Export and Import Bank (Afreximbank).
In the same vein, hosting the secretariat may elude Ghana since Cote d’Ivoire, a neighboring West African country, is the host of the African Developing Bank (AfDB). It might be viewed as concentrating Africa’s major economic institution in one region of the continent. For now, the odds appear to favor Kenya, an East African country. It is one of the first batches of countries to ratify the free trade agreement.
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.
Nigeria is preferring to laugh last here. It is bringing to the table a population of over 200 million to the African Continental Free Trade Agreement. A tweet from the Nigerian Presidency wraps up the whole debate about why Nigeria has refused to be part of the deal.
‘‘Nigeria will sign the #AfCFTA Agreement at the upcoming Extraordinary Summit of the African Union in Niamey, Niger. Recall that the Pres. Cttee on the Impact & Readiness Assessment of the Agreement Establishing the AfCFTA submitted its Report to Pres @MBuhari Thur June 27, 2019.
The tweet goes further to quote Nigerian President as saying that:
“For #AfCFTA to succeed, we must develop policies that promote African production, among other benefits. Africa, therefore, needs not only a trade policy but also a continental manufacturing agenda.” — President @MBuhari, June 27, 2019
It further stated that:
“Our vision for intra-African trade is for the free movement of ‘made in Africa goods.’ That is, goods and services made locally with dominant African content in terms of raw materials and value addition.” — President @MBuhari, June 27, 2019 #AfCFTA
10:37 PM — 2 Jul 2019
“Let me state unequivocally that trade is important for us as a nation and to all nations. Economic progress is what makes the world go around. Our position is very simple, we support free trade as long as it is fair and conducted on an equitable basis.” — President @MBuhari
10:43 PM — 2 Jul 2019
Here are The Key Points You Should Know About the AfCFTA Agreement:
The CFTA is a free trade agreement among African countries, who are signatories to the Agreement. The CFTA is consistent with the World Trade Organisation rules relating to Free Trade Agreements. A free-trade agreement is an agreement among a group of two or more countries whereby the duties and other restrictive regulations of commerce are eliminated on substantially all the trade between the countries in products originating from the countries.
The Agreement wants to create a single market for goods and services in Africa and to permit more people to move around any country in Africa with minimum visa requirements.
It also seeks to create a market that is less free from custom duty and tariffs.
It seeks to make the movement of money and capital across African countries freer.
The Agreement also hopes that, if it ever becomes successful, there would be established a Continental Customs Union that would make issues of customs duty and levy less demanding in Africa.
The Agreement seeks better ways of bringing more industries to Africa as well as opening up its agricultural and food sectors.
What The Agreement Intends To Disrupt for African Businesses
Free Up Trade
The Agreement, when it comes in force on July 7, 2019, would finally put an end to tariffs charged on goods imported from African countries that have signed the Agreement. Therefore, countries that have signed the Agreement are required to set out the products or goods that they are willing to forfeit tariffs on. They are also expected to list out the import duties to be charged on products or goods that they are not ready to fully forfeit tariffs or import duties on.
The Agreement, in other words, would allow the signatory countries to offer preferential treatment to goods imported from other African countries that are also signatories to the Agreement. However, the Agreement has listed some steps to be followed in making sure that this preferential treatment fully benefits any signatory country. In any case, this preferential treatment would not be applied where the goods or products in question are meant to remedy any defect in trade.
The Implication of Nigeria’s Signature
With this proposed signature, Nigeria is signaling an end to the drama of Africa’s most populous nation and largest economy refusing to sign the agreement citing abuse and destruction of its local industries. What remains is for Nigeria’s Parliament to ratify the Agreement in order to fully benefit from the Agreement.
So far, 25 African countries have deposited their instruments of AfCFTA ratification with the African Union Commission. They include Ghana, Kenya, Rwanda, Niger, Chad, Congo Republic, Djibouti, Guinea, eSwatini, Mali, Mauritania, Namibia, SouthAfrica, Uganda, IvoryCoast, Senegal, Togo, Egypt, Ethiopia, Gambia SierraLeone, Sahrawi Republic, Zimbabwe, Burkina Faso, and SaoTomé and Principe
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.
A team of attorneys from Centurion is in China this week to participate in the EG Ronda Licensing Roadshow being held today and tomorrow at the Kempinski Hotel Beijing. Led by CEO Nj Ayuk, the team is meeting with several high-profile Chinese executives and energy companies seeking to invest in sub-Saharan Africa.
The roadshow is organized by the AfricanEnergy Chamber on behalf of Equatorial Guinea’s Ministry of Mines and Hydrocarbons. With the biggest names amongst the Chinese energy companies attending, including companies such as CNPC, PowerChina Group, Sinopec, Sinochem, CNOOC, Shenergy, CMEC, and China Minmetals Corp, Centurion has had the opportunity to discuss considerable deals in several African oil markets.
“Centurion’s presence in China for the EG Ronda Roadshow is a mark of our commitment not only to Equatorial Guinea but to the promotion of Chinese investments across Africa,” declared Nj Ayuk from Beijing. “China is serious about investing in Africa, and Chinese investors and companies are looking for reliable African legal advisors and partners to efficiently do business in our continent. This represents billions of dollars of investment ready to support the development of the African oil industry.”
Centurion has always been at the forefront of channeling foreign investments into Africa’s oil & gas value chains. The firm has advised on the most recent PSCs being signed in the continent and continues to be part of landmark deals and projects in West and Eastern Africa.
The firm has a specific desk dedicated to Chinese companies and investors and has been increasingly working in diversifying the flow of investments coming into Africa’s extractive industries, working with new partners from Russia, Turkey, and the Middle East.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
The African Energy Chamber (EnergyChamber.org) has commended the re-appointment of Mohammed Barkindo as Secretary General of OPEC saying it is as a factor of stability for African and global oil markets. Barkindo was reappointed yesterday during OPEC’s meeting in Vienna, Austria.
According to Energy Chamber, Secretary General Barkindo has managed to keep OPEC united as an organization under very unstable times and a deep crisis in commodity prices. His leadership and diplomacy have restored market stability and successfully sealed landmark agreements like that of the Declaration of Cooperation between OPEC and non-OPEC member countries.
More importantly for our continent, it is under Secretary-General Barkindo that OPEC gained its two newest African members, Equatorial Guinea in 2017 and the Republic of Congo in 2018. Last year, he was awarded the Africa Oil Man of the Year award by Africa Oil & Power for prioritizing of cooperation in turbulent times, for stabilizing oil markets and for raising the voice of Africa on the global energy stage.
“The extension of H.E. Mohammed Barkindo’s mandate as Secretary-General for another term is excellent news. It is well-deserved and a result of the trust he has gained from the entire global energy community,” declared NJ Ayuk, Executive Chairman of the Chamber and CEO of the Centurion Law Group.
“Secretary Barkindo has maintained faith in the future of the oil & gas industry, he picks the right battles and fights them with courage. As the race towards stability continues, his sense of teamwork will continue building the bridges our industry needs to achieve greater prosperity.”
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.
This year’s Africa Young Hero Award goes to Megane Lorraine Ceday Boho of Cote d’Ivoire for earning the highest accolade a young person can achieve for social action or humanitarian efforts – The Princess Diana Award. Celebrating its 20th anniversary, the Award was established in memory of Diana, Princess of Wales, and is given out by the charity of the same name and has the support of both her sons, The Duke of Cambridge and The Duke of Sussex.
Passionate about putting gender equality at the heart of economic development, Meganne started providing free coaching to people applying for fellowships. With her association SEPHIS, she set up “The SEPHIS National Tour for Women Empowerment”.
In the last two years, they have raised more than $30,000 and trained more than 1,800 young women. She is dedicated to providing young women with the opportunities to further their career, for example, she gave free French classes to English speaking participants at a fellowship gathering 100 young people from West Africa. Through her position of Account Manager at African Media Agency (AMA), she has been able to work on big events like the Africa CEO Forum, The Next Einstein Forum, and Africa 2018 Forum.
Tessy Ojo, CEO of The Diana Award, said: “We congratulate all our new International Diana Award Holders who are changemakers for their generation. We know by receiving this honour they will inspire more young people to get involved in their communities and begin their own journey as active citizens. For over twenty years, The Diana Award has valued and invested in young people encouraging them to continue to make a positive change in their communities and lives of others.”
Commenting on Meganne’s award, Sefora Kodjo Kouassi, President of SEPHIS added “I am very proud of Meganne who constantly impresses us with her positive impact on the Association. This distinction is a testimony that Meganne is a truly inspiring model for her generation”.
“This Award is the recognition of Meganne’s dedicated work to women’s empowerment. We hope she will continue to inspire many young women in Africa to create a better future for generations to come”, commented Eloïne Barry, CEO of Africa Media Agency.
Award Holders have been put forward by adults who know the young people in a professional capacity and recognized their efforts as a positive contribution to society. Through a rigorous nomination process, these nominators had to demonstrate the nominee’s impact in five key areas: Vision, Social Impact, Inspiring Others, Youth Leadership, and Service Journey.
There are 13 Diana Award Judging Panels representing each UK region or nation and a further two panels representing countries outside of the UK. Each panel consists of four judges; Two Diana Award Holders, an education or youth work professional, and a business or government representative.
The panels have an important main purpose: to determine which nominations from each UK region/nation will receive The Diana Award. Nominations are judged using the Criteria Guide and Scoring Guide which have been created to measure the quality of youth social action
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.
