Macky Sall - Afrikan Heroes

Macky Sall Has Excelled as an African Voice Speaking up for African Priorities

December 9, 2022

By NJ Ayuk

When African Union Chairman Macky Sall addressed the United Nations General Assembly last September, he wasn’t shy about speaking up for his continent. The gist of his message? There is absolutely no excuse for failing to ensure consistent African representation in the world’s key decision-making bodies.

“It is time to overcome the reticence and deconstruct the narratives that persist in confining Africa to the margins of decision-making circles,” said Sall, who also is the president of Senegal.

Sall’s speech was about the need to give Africa permanent seats at the UN Security Council so, as he put it, “Africa can finally be represented where decisions that affect 1.4 billion Africans are being taken.”

But that was far from the first time he has called upon the global community to seek and consider African perspectives. From the beginning of his one-year term as the African Union’s chairman last February, Sall said he wanted to see fair, equitable international partnerships that welcomed African contributions instead of dismissing African priorities.

“Our continent cannot be a field which is the feast of others,” Sall said during his inaugural speech.

He also has spoken up for greater African representation in the G20, which as of yet only has one African member (South Africa). Multilateralism must “serve the interests of all,” Sall argued in October, or it will suffer “loss of legitimacy and authority.”

I commend Chairman Sall for his tireless work, not only to insist that the global community listens to and respects African issues, but also to build awareness of just what those issues are.

He has put African needs and priorities — including infrastructure development, greater access to COVID-19 vaccinations, food security, and an end to energy poverty — in front of world leaders ranging from Chinese President Xi Jinping to U.S. President Joe Biden. He has done the same at global events, including the 2022 G20 summit and the COP27 climate conference.

Sall has been particularly outspoken about Africa’s energy needs and the rights of African countries to continue extracting and capitalizing upon their oil and gas resources, even in the face of tremendous global pressure for Africa to make a rapid switch to renewable energy sources. Sall has firmly stated that, when it comes to the global march toward net zero emissions, Africa will not be in lockstep with the rest of the world at the expense of our countries’ well-being.

We are in an era when Africa needs fierce advocates. Nations and international partnerships are fighting for their respective priorities, and unless African leaders are willing to stand up for what our continent needs, our objectives will be pushed aside. Sall has, indeed, taken a stand.

An Unwavering Voice for a Just Energy Transition

African energy was not Sall’s only priority as chairman of the African Union, but he did, rightfully, use his platform to expand global awareness of Africa’s unique energy needs in 2022. He pointed out the hypocrisy of wealthy countries that harnessed fossil fuels to industrialize and grow their economies telling developing African countries that the world’s zero-emission goals trumped their right to do the same.

“We will not accept that polluting countries, responsible for the situation of the planet, tell us that we are no longer going to finance fossil fuels,” Sall said in September.

He made similar remarks when he opened the MSGBC Oil, Gas & Power 2022 conference and exhibition, held Sept. 1-2 this year in Dakar. The MSGBC region comprises Mauritania, Senegal, the Gambia, Guinea-Bissau, and Guinea-Conakry.

“In this new configuration of the world, energy resources are major assets for Africa. Therefore, we must not accept that our continent is an object of world geopolitics, but an actor, aware of its natural wealth of interests, which acts on the competition instead of suffering it,” Sall said, adding that made no sense for African countries to stop exploiting their oil and gas resources while more than 600 million Africans lacked electricity. “While remaining committed to the implementation of the Paris Climate Agreement, we must continue to defend the interests of our countries in the run-up to COP27 next November in Egypt.”

And that’s exactly what happened. Sall and other African leaders fiercely defended Africa’s energy interests before and during COP27. The result? As multiple news outlets reported, African natural gas took center stage at the conference.

A Strong Collaborator

As I tweeted in November, Africa was fortunate to have Sall at COP27. He understands both sides of the African energy transition debate: the need for Africa to set the timing for its shift to renewables and the world’s need to address climate change. Sall advocated for ongoing natural gas production in Africa, which allows us to minimize carbon dioxide emissions while providing much-needed gas to generate electricity domestically, build our economies, and move toward industrialization. Sall also has pushed for the international community to help fund the renewable energy infrastructure Africa needs for a just transition and to provide financial support for African climate adaptation.

Climate adaptation measures have particularly been a priority for Sall. In his capacity as president of Senegal, he and the CEO of the Global Center on Adaptation (GCA), Patrick Verkooijen, partnered in 2022 to unlock $1 billion in climate finance for Senegal under the Africa Adaptation Accelerator Program (AAAP). The AAAP, Africa-led and Africa-owned, is working to bolster adaptation in agriculture, digital services, infrastructure, entrepreneurship, and jobs for young people. It was developed by the Global Center on Adaptation (GCA) and the African Development Bank (AfDB) in collaboration with the African Union.

Sall was among the trailblazers to convene the Africa Adaptation Leaders’ Event during COP27. He also co-wrote, with French President Emmanuel Macron and Dutch Prime Minister Mark Rutte, an opinion piece for the Guardian about the AAAP. It emphasized the critical importance of increased funding from developed countries for climate adaptation initiatives in developing countries, particularly those in Africa.

What we’ve seen is a pragmatic approach from Sall, one that recognizes the need for Africa to continue harnessing its oil and gas reserves while working diligently to move toward the transition to renewables — and to build climate resiliency into Africa’s economy.

When Sall’s one-year term at the helm of the African Union concludes February 5, the many challenges facing Africa will hardly be behind us. Nevertheless, I firmly believe that Sall has been making a vital difference in his role. Sall has said, loudly and clearly, that African voices will not be silenced. Thanks to Sall, it appears that the global community is starting to hear that message. That is a step in the right direction.

NJ Ayuk, Chairman, African Energy Chamber (http://www.EnergyChamber.org)

Kelechi Deca

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

A New $26m Fund Rolled Out Following Assent To Startup Act In Senegal

November 15, 2021

Macky Sall, the president of Senegal, in October this year, ratified the Senegalese Startup Act, which governs the development and promotion of startups in the West African country. The Senegalese Startup Act among other things, seeks to promote innovation in the country’s economy towards achieving the country’s “Digital Senegal 2025” strategy.

In light of this, Yankhoba Diattara, the country’s Minister of Digital Economy and Innovation, has been speaking about the signing of the Startup Act into law.

“This law provides incentives as well as a structure for the growth of startups. The most recent Council of Ministers agreed to examine and enact a law containing a number of provisions that will aid in the popularization and development of startups in Senegal,” he stated

Diattara highlighted the challenges startups encounter when it comes to raising financing.

“These businesses have a short existence, with 80 percent of them lasting less than three years. This is the gap that the Head of State wishes to address, which is why he has put in place a number of mechanisms to monitor and assist their progress “he stated.

To that end, he stated that Senegal intends to put in place three measures to support these startups as a result of the new law.

“The implementation of the law begins with the establishment of a registration system for all startups, followed by assistance with their formalization and, lastly, labeling, which involves a number of conditions. We’ll make it easier for them by providing tax benefits and establishing a financing structure. The president took a chance by setting up a 15-billion FCFA ($26m) fund to help startups get off the ground. We’ll work with the DER (Delegation for Rapid Entrepreneurship), but we’ll also form agreements with banks so that we can raise funds with an 80% guarantee,” Diattara stated.

Last year, the Startup Act was promulgated after the Senegalese National Assembly passed Law No. 2020/01, relating to the creation and promotion of startups, after a protracted period of deliberation.

Below are key provisions of the Startup Act:

Startups Covered By The Law

The Act targets startups in Senegal that use creativity, innovation, new technologies to achieve high added value for both the Senegalese and the international markets. To qualify to benefit from the Startup Act, the startup must:

a) Be an innovative and disruptive private or public company, which has been legally registered for a period of not more than 8 years, and which has strong growth potential built on a disruptive economic model.

b) Created on the Senegalese territory and must at least, be one-third (1/3) owned by persons of Senegalese nationality or persons resident in Senegal or by legal persons having or doing business in Senegal.

b) The law also applies to any startup created by any Senegalese living abroad
who owns at least 50% of the startup.

Creation of A National Commission Dedicated To Startups

The Act creates an Evaluation, Support and Coordination Commission, which is inclusive of all public and private stakeholders in Senegal, and which is geared towards the development of startups.

The Commission is mandated to set up a platform dedicated to startups.

The online platform will allow any startup to complete the related formalities towards its registration and labeling. The platform will also facilitate access to information by startups.

The law also allows the Commission to get support from both the public or private sectors towards assisting the creation, promotion and development of startups.

Consequently, the law gives the Commission the power to register and issue registration certificate to any startup which meets criteria for a startup stated above for purposes of obtaining such support and assistance from the private and public sectors.

It also gives the Commission the power to stipulate the technical standards which a startup must meet before it is issued with a startup label. It is also tasked with the responsibilities of fixing procedures for labeling,evaluation, renewal or withdrawal of the label from startups.

Read also: Senegal Approves A-Three Year Tax Exemption For Its Startups

Incentives and Benefits for Startups Under the New Law

The law also states that any registered or labeled startup benefits from incentives, according to conditions stated by the law.

Consequently all the startup wishing to benefit from the reserved advantages and incentives need to do is to comply with the provisions of this law — which is to say, to embark on a simplified registration and labeling procedures implemented by the Commission described above.

Particularly, the incentives will relate to:

The granting of customs and social advantages according to conditions to be defined taking account of the Labor Code and the General Customs Code available in Senegal.

Tax measures according to conditions to be defined taking into account the General Tax Code — to this effect, the Senegalese government has approved a three year tax exemption for its startups and newly created companies. According to a memorandum dated February 24, 2020 issued by the country’s Ministry of Finance and Budget, the Finance law of December 20, 2019, which came fully into force throughout the country on December 28, 2019 has brought to an end the regime of taxation of the country’s startups and SMEs.

The legally registered startup will further benefit from special tax advantages such as provided for in the General Tax Code in Senegal. It will also benefit from other measures and schemes more favorable to them in accordance with the laws and regulations in force.

The granting of guarantees to startups with a view to obtaining credit ;

Direct granting of public or private funding to registered startups;

The implementation of measures favorable to investment for their benefits;

Facilitating access to public procurement for startups under conditions to be defined in taking into account the Public Procurement Code in Senegal;

The implementation of support, facilitation and development measures the startup;

The implementation of capacity building measures for the startup.

Commission is also mandated to set up training and empowerment platform reserved only for startups registered with it. The platform will, among other things, allow access to a database and a list of experts, trainers and mentors who support startups towards upgrading their knowledge on various issues such as finance, marketing, communication, and development of business plans.

Additionally, startups legally registered with the Commission, under the new Senegal ‘s Startup Act may receive support from the Senegalese government with the aim of:

Subsidizing its registration cost;

Reserving the .sn domain name;

Ensuring the protection of startup innovations with national organizations and international intellectual property protection;

Facilitating support from approved incubators for the startup;

Supporting the startup’s research and development activities;

Covering any other support necessary during the growth stage of the
startup.

Access To Funding For Startups Under The Act

Under the Act, labelled startups will benefit from public and private funds in or outside of Senegal, mainly intended to directly finance eligible startups.

The public sector support will also guarantee :

(within the limit of a ceiling fixed by law) loans, financing and participation in the capital of startups, granted or made by investment companies, whatever their form, and any other investment organizations according to the legislation in force in Senegal;

Loans made to startups by credit and other institutions;

The execution of contracts.

3. Under the law, labeled startup will also benefit from a preferential regime for access to Public Procurement Order.

Consequently, throughout the label’s validity period:

A preference margin of 5% is granted to any labeled startup that participates in a call for competition relating to public contracts, public service delegations and partnership contracts. This percentage can be combined with any other advantage granted to other candidates by applicable regulations. However, the cumulative preference cannot exceed 25%.

The applicant for a public contract, a delegation of public service or a contract partnership which agrees to subcontract 30% of the services covered by the contract to one or more several labeled startups or that present an offer in grouping with one or several startups, can benefit from a preference margin of 5%. This margin of preference can be combined with any other margin provided for by the regulations in force.

In the event of a collaboration with another company which is not a labeled startup, the margin of preference provided for in the preceding paragraph of this article is not applicable.

As part of the implementation of public private partnership contracts between a contracting authority and a labeled startup, the candidate’s status is taken into account within the framework of the application of the provisions relating to the spontaneous offer.

The procedures for applying and monitoring the benefits and incentives for promoting startups’ access to public procurement are set by the Commission.

Penalty for Non-Complying Startups

Finally, under the Startup Act, the label given to a startup may be withdrawn from it when it no longer meets the eligibility criteria. The withdrawal of the label results in the loss of all the advantages linked to the status of labeled startup. The procedures and procedures for withdrawal are specified by the technical standards defined by the Commission.

A legally registered or labeled startup in a situation of irregularity may however request its regularization by the Commission by complying with the standards set by the Commission.

Startup Act Senegal Fund Startup Act Senegal Fund Startup Act Senegal Fund Startup Act Senegal Fund

Who Are The Investors In Francophone African Startups And How Do They Invest?

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning write

Senegalese President Macky Sall is right about African Debt Relief – and the G20 shouldn’t stop there

September 14, 2020

“Flatten the curve.” Do you remember that phrase? It was on everyone’s lips back in the spring, when the novel coronavirus (COVID-19) pandemic began rampaging across the world in earnest. At the time, the idea was that the best way to combat the germ known as SARS CoV-2 was to go home and stay there long enough for hospitals, clinics, and other medical facilities to build up the capacity needed to handle the expected flood of new patients. Most of us expected that this departure from routine would be a temporary thing. We hoped it wouldn’t last long — that we’d be able to return to our normal routines after a brief disruption, with confidence that all necessary safeguards were in place.

Of course, it didn’t turn out that way. We spent far more time than we expected sheltering in place, unable to visit friends and family, attend school, or go to work in the usual manner. Many of us lost our jobs and saw our businesses fail, and the cumulative result of all these individual disasters was that the global economy took a sharp downward turn.

We Still Need To ‘Flatten the Curve’ … But How?

Along the way, of course, we’ve learned quite a bit more about SARS CoV-2 — how it makes people sick, how to treat it more effectively, what kind of resources our medical providers need most, and so on. But we’ve also stopped talking about “flattening the curve.” Even in places where hospitals and clinics have been able to build up their stocks of personal protective equipment (PPE), ventilators, and other necessities, we’ve moved on to other topics.

In my view, this is a mistake. I’d like to explain why I think so.

It’s not because our understanding of the virus has changed over time.

It’s not because we’ve seen infection rates rise after the lifting of lockdown orders.

It’s not because we don’t have a vaccine yet.

It’s not because the idea of “flattening the curve” seems callous when more than 900,000 people out the nearly 28 million infected around the world have already died of COVID-19.

It’s because we need to rethink the idea of what “flattening the curve” means.

And I believe President Macky Sall’s call for African debt relief is a good place to start that rethinking.

The President’s Perspective

First, let’s look at what President Sall has to say. In late August, the Senegalese leader urged members of the G20 group of countries to continue helping African nations balance their obligations to creditors with their obligations to their own citizens in the face of a deadly pandemic. Speaking to a group of business leaders at the French Entrepreneurs’ Conference, he noted that the group had taken up his call for a moratorium on the collection of debt from impoverished countries in Africa and elsewhere in April. He suggested that this moratorium be extended into 2021 rather than allowed to expire at the end of 2020.

“For the most part, and for all African countries, internal efforts will not be enough to lessen the shock of COVID and revive economic growth,” he said. “We need more financial capacity, which is why, with other colleagues, I have made a plea for substantial relief of Africa’s public debt and private debt on terms to be agreed upon.”

What the President’s Words Mean

Sall’s statements reflect the fact that the emergence of SARS CoV-2 was not a one-off event that sparked a short-term crisis, but rather the start of a struggle that will take a long time to resolve. They recognize that the outbreak is likely to be a drag on the world economy for years to come — and that the countries battling COVID-19 outbreaks need time to build up their capacity to fight back.

What’s more, the president’s words advance the idea that African states will be in a better position to meet their financial obligations in the future if they take the time and the trouble to address the public health situation first. Indeed, he made a point of stressing that Africa takes its financial commitments seriously, since he mentioned debt relief and not debt forgiveness. (He also suggested that members of the G20 group offer debtors the same kind of breathing room they have granted themselves, such as temporary exemption from rules limiting debt to 3% of GDP or less.)

In other words, Sall is asking the G20 group to give Africa time and space to flatten the curve. He may not have used those exact words, but that appears to be his goal. He is hoping creditors will agree to suspend business as usual so that African states can build up their capacity for economic growth, just as regular citizens of many countries around the world agreed to disrupt their usual routines of work and school and leisure activities so that hospitals could build up their capacity for patient care.

Sall also understands that this flattening of the economic curve is not a simple process. He knows it will take more than one round of deferred payments to compensate for the economic consequences of the pandemic, and that is why he has now asked the G20 to extend the debt moratorium, which was originally due to expire at the end of 2020, into next year.

Compensating for the Setbacks of the Last Six Months

And make no mistake: Africa needs that extra time. The continent has suffered enormously over the last six months.On the economic front, the pandemic has triggered a global recession that has caused millions of salaried African workers to lose their jobs. Meanwhile, many more millions have seen their livelihoods dwindle or disappear because restrictions on movement have stifled the informal sector and forced the closure of small businesses. Additionally, the continent has experienced shortages of fuel and other essential goods as a result of disruptions in the supply chain.

Some parts of Africa have also weathered political disruptions. Mali suffered a coup in mid-August, following more than two months of anti-government demonstrations. Libya’s civil war, pitting the UN-backed Government of National Accord (GNA) in Tripoli against Khalifa Haftar’s Libyan National Army (LNA), has continued to grind on, effectively crippling the country’s lucrative oil industry. Investors in liquefied natural gas (LNG) projects in Mozambique have grown more nervous since a militia with ties to the Islamic State group, also known as Daesh, seized control of a key port in Cabo Delgado state.

Under other circumstances, African fossil fuel producers might have been able to use their reserves to help build up the cash needed to cope with the consequences of COVID-19. After all, as I explained in my latest book, Billions at Play: The Future of African Energy and Doing Deals, the oil and gas industry has the potential to serve as a springboard, amplifying and accelerating economic growth. It can create opportunities for economic diversification and — through petroleum companies’ research and investments — help pave the way to the creation of a renewable energy sector.

Unfortunately, though, world oil prices crashed earlier this year, partly because of the competition between Russia and Saudi Arabia for market share and partly because the pandemic undercut energy demand. Prices hit historic lows in late April. And since they have yet to recover completely, African producers will need more than oil and gas to compensate for the setbacks they have experienced this year.

A Necessary Step: Debt Relief

That’s where debt relief comes in.

Debt relief will help African states weather the storms caused by the pandemic.

Debt relief will help African states take the steps needed to help people go back to work or build up their businesses.

Debt relief will help African states re-establish stability following political disruptions.

Debt relief will help African states make up for the sharp decline in oil and gas revenues and begin building renewable energy sectors.

Debt relief is necessary to flatten the curve. It’s what will give Africa time and space to start carving out a path towards recovery — to take the steps necessary to bring new investment to the oil and gas industry, to build Africa’s sustainable energy sector, to expand business and residential consumers’ access to electric power, to revive small businesses, to promote innovation and entrepreneurship, to foster job creation, and to remove red tape and regulatory obstacles.

Asking for More: Debt Forgiveness

Senegal’s president understands this — and I hope the leaders of the G20 group’s members do, too. I hope they can see how reasonable it is for impoverished countries in Africa and other regions to ask for what they need to flatten the curve.

But I’d also like to take it a step further. I’m going to ask for more.

I’m going to ask for debt forgiveness.

I’m going to suggest that members of the G20 group agree to forego payments from African debtors — specifically, from eligible African debtors. And by eligible debtors, I mean countries that commit themselves to a forward-looking agenda that includes wide-ranging and market-oriented reforms, as well as safeguards for economic freedom, good governance, free trade, and investment in education.

All of these points are in line with the ideals that have helped most G20 member states achieve so much with respect to economic growth. What’s more, they are exactly the sort of things that African states ought to do in order to maximize their chances of building up the momentum lost as a result of the pandemic — and to extend their recovery far into the future, beyond the point when vaccines, cures, and more effective treatments remove the threat of COVID-19.

I hope that G20 lenders to Africa will see it my way. I hope they will agree to help Africa do as much as it can to flatten the curve

NJ Ayuk is the Executive Chairman, African Energy Chamber (www.EnergyChamber.org).