The Nation Newspaper

Category: Industry

  • $251m lifeline for African women entrepreneurs

    Leaders of the G7 nations have approved a $251 million package in support of the African Development Bank (AfDB) Affirmative Finance Action for Women in Africa (AFAWA) initiative to support women entrepreneurs in Africa.

    AFAWA aims to raise up to $5 billion for African women entrepreneurs and the AfDB will provide $1 billion financing. The risk-sharing mechanism used by AFAWA is a practical approach to international commitments.

    It is a direct response to the demand by women to ease access to financing, specifically on the need to establish a financing mechanism for women’s economic empowerment.

    AFAWA was adopted during a summit of African Heads of State in 2015 and assigned to the African Development Bank for implementation.

    The $251 million package for African women entrepreneurs was announced at a press conference at the G7 Summit in Biarritz, France, during the week.

    French President/G7 president Emmanuel Macron said: “I am particularly proud, as the current G7 president, that the programme we are supporting today, the AFAWA initiative, comes from an African organisation, the AfDB, which works with African guarantee funds and a network of African banks.”

    Beninese artist Angelique Kidjo, a guest at the press conference, in her role as programme ambassador, described African women as the continent’s backbone. “I’m thrilled to bring their voice to the G7. AFAWA is essential for our continent,” she said.

    AfDB President Akinwumi Adesina applauded the “extraordinary support of all the G7 heads of state and government, which will provide incredible momentum” to the AFAWA programme.

    “This is a great day for African women. Investing in women entrepreneurs in Africa is important, because women are not only Africa’s future, they are Africa’s present,” he said.

    Adesina said women operate over 40 per cent of Small and Medium Enterprises (SMEs) in Africa, but there is a financing gap of $42 billion between male and female entrepreneurs.

    ‘’This gap must be closed, and quickly,” the AfDB president said, adding, “This financing effort for women is the most significant in the continent’s history.”

    The initiative, backed by the G7 nations, was based on three fundamental principles. The first was to improve women’s access to financing through innovative and adapted financial instruments, including guarantee mechanisms to support women entrepreneurs.

    In cooperation with strategic partners, the second principle was to provide capacity-building services to women entrepreneurs, including access to mentoring and training courses in entrepreneurship.

    AFAWA also assists financial institutions in responding to specific needs of women-led businesses through specially adapted financial and non-financial products.

    The third principle was improving the legal and regulatory environment, eliminating obstacles that specifically affect women by engaging in policy dialogue with governments, central banks, and other institutions.

    The press conference on AFAWA was part of the G7 Summit’s emphasis on reducing inequality, specifically including a renewed partnership with Africa.

    This partnership will be highlighted by creating sustainable employment and supporting entrepreneurship, particularly women entrepreneurs.

    France holds the presidency of the G7 this year, and Macron is championing gender equality as a major theme of his five-year term.

  • Sustainable Cycling Foundation unveils ‘Kit and Kin’ initiative

    Sustainable Cycling Foundation (SCF) has unveiled the ‘Kit and Kin’ initiative in  Lagos. The program has the backing of Access Bank, Cocoon Homes, Kingston Wheelers and Craneburg Construction.

    The SCF said that its mission is to use cycling to empower young people on the continent and build the next generation of leaders. The  the Kit and Kin initiative is envisioned to support the launch of the Pro-Continental cycling outfit, Team Access-Cocoon, Nigeria’s first professional cycling team whilst also serving as a boost to the cycling ecosystem on the continent.

    Speaking at a media briefing in Lagos,  Iboroma Akpana, a trustee of the Foundation, explained that the future of every country depends on the youth and given the demographic bulge in this segment in Nigeria, the Foundation has decided to massively invest in the talents of young cyclists and create opportunities through the sport for them to actualize their potentials both as athletes and as citizens that will be useful to self and society.

    “We are focused on building a solid foundation for future leaders to maximize their potentials. Working with our partners – Access Bank, Cocoon Homes, Craneburg Construction, Specialized UK, Kingston Wheelers and Sigma sports – the Sustainable Cycling Foundation realized that we can further empower young Africans to create better lives for themselves, improve their communities, and build global recognition,” he said.

    “Our mission is to connect African youths through cycling, provide opportunities for competition, promote healthy living, and empower generations,” Akpana added.

    Representing Kingston Wheelers for the initiative, Andy Edwards said: “This is our second year working with the Sustainable Cycling Foundation and we have stepped up our involvement. The images of last year’s Lagos Crit made a big impact in the UK, with my club Kingston Wheelers and through a feature in the UK’s bestselling cycling magazine Cycling Weekly, on a national level also. The SCF and its partners demonstrate the vibrancy and talent within the Nigerian cycling scene and the potential to grow the sport not only in Nigeria but across Africa as a whole, and we are delighted to part of this.”

    Read Also: Healing environmental ills through recycling

    Through the ‘Kit and Kin’ initiative, the Foundation will provide thousands of items to cycling communities over the next few months to ensure cycling is transformed into a major sport in West Africa.

    The Sustainable Cycling Foundation remains committed to setting standards for sustainable cycling by adopting innovative practices to build a desirable cycling future for Africa that is founded on clean sports, merit and zero tolerance to corruption. In addition to its support of “five local cycling teams, which it helped establish, the Foundation has also established a cycling shop and bike maintenance facility and sponsored several bike races and training camps whilst it continues to make positive contributions to the cycling ecosystem.

     

  • Underutilisation of LADOL Free Zone threatens NCDMB’s local content commitment

    Since the completion of the integration work on the Floating Production Storage Offloading (FPSO) vessel and sail-away of the facility to the deep offshore Egina oil field, the entire LADOL free zone is currently underutilised.

    This underutilisation not only threatens Nigerian jobs but also threatens local content provision and the commitment of the Nigeria Content Development and Monitoring Board (NCDMB) to increase local content provision from 28 per cent to 70 per cent by 2027.

    LADOL zone is virtually empty and devoid of any tangible project development, except for the SHI-MCI fabrication and integration yard – a joint venture set up by Samsung Heavy Industries and LADOL to complete the fabrication and integration of the Egina FPSO top-sides.

    But even the presence of Samsung in the yard remains in jeopardy because LADOL cancelled Samsung’s operating licence for the free-zone, leading to protracted legal battle ongoing at the Lagos State High Court.

    READ ALSO: Court affirms judgment restraining LADOL from interfering in Samsung’s operations

    Samsung worked closely with the NCDMB throughout the project to ensure that it met its local content requirements. SHI-MCI was a sub-contractor to Samsung in its execution of in-country fabrication and integration works on the ship, which was a crucial local content component of the Egina project.

    The Egina FPSO is a success story for Nigerian local content delivery. However, Samsung is not the only international business involved in a legal dispute with LADOL.

    Africoat, an American-owned pipe-coating company, has alleged in legal documents that its staff and management have been barred from Africoat’s facility by LADOL and its Free Zone management company – Global Resources Management Free Zone Company (GRMFZC).

    Although Africoat’s facility currently lies dormant, the American company is confident that it could be mobilised and become operational within a few weeks if consistently granted access to its facility.

    The reasons why LADOL has attempted to block the operations of its largest tenants remains unclear. However, its disputes with foreign businesses have led to questions around the monopolistic control it holds over the free zone.

    The protracted legal battles between LADOL and its major tenants may also be the reason for the current underutilisation of the free zone, and possibly other logistics facilities in Nigeria.

    After all, foreign businesses do not want to invest money and expertise if the risks of interference to their operations outweigh the potential for returns.

    Nigerian Content 10-year Strategic Roadmap

    The transformational benefits of Nigerian Oil & Gas Industry Content Development (NOGICD) Act increased local content provision from almost nothing before the 2010 Act to 28 per cent today.

    At a press-conference earlier this month, the Executive Secretary of NCDMB, Mr. Simbi Wabote set out an ambitious Nigerian Content 10-year Strategic Roadmap to increase Nigerian content performance from 28 per cent to 70 per cent by 2027.

    However, the lack of jobs and underutilisation at operational dockyards and logistics businesses such as LADOL threatens Wabote’s unprecedented efforts and Nigeria’s noble aim.

    Local and international investors have expressed the fear that NCDMB’s 70 per cent commitment will remain under threat unless LADOL changes its stance and dealing with foreign businesses.

    However, Wabote has publicly stated that the board is driving the reconciliation process between LADOL and Samsung and that he is confident for a resolution by this September.

    Much is at stake for the NCDMB, including Nigeria’s reputation in the eyes of international investors.

    Akpan-Etukudon, an investment advisor, writes from Warri

     

     

     

  • Traders urge National Assembly to ratify AfCFTA agreement

    The National Association of Nigerian Traders (NANTS) has advised the National Assembly to ratify the African Continental Free Trade Area (AfCFTA) agreement to ensure its speedy implementation.

    NANTS President Mr. Ken Ukaoha, who gave the advice in Abuja, said the ratification would enable Nigeria to join the comity of nations that would benefit from the AfCTA.

    President Muhammadu Buhari had on July 7, at the 12th African Union (AU) Extraordinary Summit in Niamey, Niger Republic, signed the agreement establishing the AfCFTA.

    Ukaoha, a lawyer, said the National Assembly had a major role to play in  ratifying the agreement, adding that after signing it, its endorsement should follow.

    “And of course we know that courtesy of Section 12 of the 1999 Constitution of Nigeria as amended, no international agreement or treaty can come into force except it is ratified by the National Assembly.

    “So, the National Assembly should also be seriously and urgently doing so in recourse to provisions of Section 19 of the Constitution, which is part of the fundamental objectives of the government.

    “One, is that our foreign policy objective is in tandem with the AfCFTA, therefore the National Assembly should look at AfCFTA from that angle and ratify it because the implementation is knocking at the door,’’ Ukaoha said.

    According to him, there is no need of wasting time. The private sector has decided to move along and so the National Assembly should rise up and do their bidding.

    Speaking about its implementation, he explained that the reports of the Presidential Committee on AfCFTA had already showed what Nigeria should do to effectively implement the agreement for the benefit of the people.

    “It is one thing to sign an agreement and another thing to implement such it. There are things we need to do as a country for us to be part of the benefits,’’ Ukaoha said, urging the Federal Government to look into funding of Micro, Small and Medium Enterprises (MSMEs) for the implementation of the AfCFTA.

    His words: “The MSMEs is the fulcrum of every economy; therefore, if we do not fund this, we will remain where we are. Secondly, the president should call the private sector to a meeting to strategise on the way forward to implement this agreement because there is no country among the 54 countries in Africa you will not find Nigerian traders.”

    He said if Nigerian traders were found in such countries, then for this particular instruments to benefit, it means that they should become trade ambassadors to the country.

    The NANTS boss also said Nigeria’s export orientation strategy must change. He added that the country should no longer be limited to trade missions and trade fares.

    According to him, Nigeria should rather be identifying required products in specific countries that can compete so that the organised private sector can strategically begin to invest in the development and progressive growth of such products.

    The AfCFTA aims to create a single continental market for goods and services, with free movement of people and investments.

    It covers Protocol on Trade in Goods and Services, Competition Policy, and Intellectual Property Rights.

    Buhari recently approved the establishment of National Action Committee (NAC) for implementation of the AfCFTA agreement.

  • ‘Agribusiness key to unlocking economy’

    Agribusiness, not agriculture, remains the key to unlocking the economy, the Programme Director, Lagos Business School (LBS), Mr. Kelikume Ikechukwu, has said.

    Ikechukwu, who described agriculture as activities, such as crop production, fishery, forestry and animal husbandry, however, said agribusiness encompassed  land, people, packaging, processing, transportation and the export of produce which goes beyond just farming.

    “For instance, an agribusiness practitioner will take maize and extract ethanol and raw starch from it to produce industrial starch needed by textile industries.

    “The industrial starch is produced outside Nigeria, but the raw starch that is  used in producing  industrial starch comes from Nigeria,” he said.

    The LBS director added that if agriculture were truly the key to unlocking the economy,  then Cote d’Ivoire, the richest country in cocoa production, would have ranked the  biggest in the cocoa value chain.

    His words: “Switzerland, however, is the biggest in the cocoa value chain, but it does not produce cocoa. That is why agribusiness is the key to unlocking the Nigerian economy.

    “If we begin to expand it, you will see how big the agribusiness space is compared to agriculture; that is why it holds the key and not agriculture.”

    Ikechukwu advised youths interested either in agriculture or agribusiness to seek knowledge and experience first before pursuing money because agriculture requires experiential learning for its practitioners to be successful.

    “Money should not be the first thing to consider when anyone is  going into agriculture or else such will lose all the money; rather get knowledge and information which will serve as guide.

    “You need to dirty your hands and build experience by going to the farm to understand the terrain be-fore you can become successful in the financial aspect,” Ikechukwu said.

    He urged youths to take advantage of the opportunities in the agric space to meet the increasing demand for food by  a growing population of 200 million people.

    “Our population is slightly above 200 million people and there is a problem with the age distribution because 43 per cent of our population lies between the age grade zero and 14 years.

    “This means that we have over 90 million children that must be fed. So, we need more youths that will go into agriculture in order to meet the increasing demand for food,” he said.

    The director urged the private sector to show more interest in organising empowerment and capacity building programmes where several youths could benefit from.

  • Industrialists, Centre partner to boost MSMEs

    Industrialists, under the aegis of Nigerian Association of Small Scale Industrialists (NASSI), are partnering the Centre for International Private Enterprise (CIPE), United States to improve Micro, Small and Medium Enterprises (MSMEs).

    Making this known in Abuja, NASSI National President Chief Solomon Vongfa said the partnership was to encourage best practices.

    According to him, the partnership  became necessary in view of the challenges faced by the association as well as the zeal to propel MSMEs to be effective and well grounded.

    “Due to some lapses discovered in the management of the association, we sought for help through the CIPE, U.S.A and it intervened by sending its consultants to drill the association on good governance,’’ Vongfa said.

    Vongfa said based on that, CIPE has held a Diagnostic Meeting with NASSI aimed at studying the association to overhaul its operation.

    He said based on that meeting, there was an action plan that would run for three years for the association.

    “The diagnostic meeting revealed certain areas in which the management of the association has problems. As part of its strategic plan, CIPE has to redo our statutory plan to suit international best practice. The implementation will start mid-September,’’ he noted.

    Vongfa, however, called on the National Executive Committee members of NASSI, who were the statutory body to give necessary corrections and approve the outcome of the meeting for implementation.

    He recalled that the MSMEs survey in 2017 showed that the MSMEs recorded about 41 million entrepreneurs in the country.

    He said the survey was carried out by its regulatory agency, the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) in collaboration with the Nigerian Bureau of Statistics (NBS).

    The national president added that the survey revealed that among the 41 million MSMEs recorded, about 37 million were micro and the smaller level.

    “This is to show that majority of people doing business in Nigeria based on the survey are at micro level, which is the centre of our own sector,” Vongfa said.

    Describing NASSI as the bedrock of the MSMEs in the country, he decried the challenges bedeviling it, which, according to him, included lack of funds that affected its growth.

    “The government should take it very serious and intervene by injecting more funds into the MSMEs; people are willing to take loan and pay back, but the major issue is recovering the loans.

    “When you have Business Management Organisations (BMOs) behind any disbursement, you will recover the loan effectively.

    “If there is sufficient funding, there will be more job creation and poverty reduction. It goes simultaneously,” Vongfa added.

    Commenting on the African Continental Free Trade Area (AfCFTA) agreement, he said initially NASSI was not fully prepared for it, but with the intervention by CIPE and their noting of the benefits of the agreement, NASSI must be part of it.

    “We are also encouraging government to support by providing machines and equipment that can improve production and quality of products to boost competitiveness. That is the key to implementing the AfCFTA agreement.

    “Why we cannot be very competitive with the global issue is the problem of finishing of the products of some of our members which is very poor. If the packaging is not sophisticated it will not move in the market.

    “Packaging is one of the outcomes from the CIPE diagnostic meeting because you have to be attractive for patronage.

    “We are taking our advocacy to government; you cannot do a policy that will favour only the conglomerate or the big companies while we the major sector of the economy suffer it most.

    “If we cannot compete due to lack of support and fund, the AfCFTA agreement will be a disadvantage to us. But if this understanding is there, it will help us,” he said.

    NASSI, which has the mandate to  promote MSMEs, was established more than 40 years. It has offices in all states of the federation, including the Federal Capital Territry (FCT).

    CIPE seeks to strengthen democracy around the globe through private enterprise and market-oriented reform.

  • Expo 2020 Dubai opens fresh vista for Nigeria

    For six months, October 20, 2020 to April 10, 2021, more than 190 countries and 25 million visitors will participate at Expo 2020 Dubai, a global celebration of creativity, innovation, humanity and world cultures. The event is seen by experts as an invaluable platform for Nigeria to further open up her economy, encourage foreign investments and create jobs. It will also provide businesses with the opportunity to explore new markets, identify investment opportunities and build linkages, not only with the United Arab Emirates (UAE), but also with the rest of the world. Assistant Editor CHIKODI OKEREOCHA reports.

    It has the attributes of an international expo that will change the fortunes of participating economies around the world for good. For instance, by its size, scale, duration and visitor numbers, Expo 2020 Dubai, a global six-month celebration of creativity, innovation, humanity and world cultures looks good to achieve its goal of reinvigorating the economy and culture of the Middle East and give Nigeria and other participating African countries the “push” to tackle new challenges.

    For one, the Expo site, located within the Dubai South district, close to Al Maktoum International Airport and easily reached from Dubai International Airport, boasts an intimidating 4.38 square kilometres. Approximately two square kilometres will form the Expo gated area, and the remaining 2.4 square kilometres will feature supporting amenities and facilities, including the Expo 2020 Village for participants and staff accommodation, warehousing, logistics, transport nodes, hotels, retail and a public park.

    Also, the expo will run for six months from October 20, 2020 to April 10, 2021, with more than 190 countries expected to participate. The six-month event will attract 25 million visitors; 70 per cent of them will come from outside the UAE. According to Vice President, Communications, Expo 2020 Dubai, Mr. Jon Bramley, Expo 2020 Dubai will contribute 1.5 per cent to UAE’s Gross Domestic Product (GDP) within the period. This translates to AED 122 billion, about $33.3 billion. The event will create 500, 000 new jobs, among other huge economic benefits.

    The World Expo is one of the global’s oldest and largest international events. It takes place every five years and lasts six months. It is a festival for all, where everyone can learn, innovate, create progress and have fun by sharing ideas and working together. The first World Expo was London’s Great Exhibition of 1851. But on November 27, 2013, the UAE emerged as the host country of World Expo 2020 during the 154th General Assembly of the Bureau International des Expositions (BIE).

    BIE is the inter-governmental organisation that regulates and oversees World Expos, preserving the core values of education, innovation and cooperation on behalf of its 170 member states. Its delegation, which visited Dubai in February 2013 to examine the Emirate’s readiness for the largest exposition, was said to have been impressed by the infrastructure and the level of national support for the event.

    Each expo revolves around its own theme to leave a lasting impact on the path of human progress. Accordingly, Expo 2020 Dubai was themed ‘Connecting minds, creating the future’. The Emirate said the theme was chosen because of its belief that innovation and progress are the result of people from various fields and backgrounds, who would not normally collaborate, coming together in new and unique ways to share ideas.

    The theme was underpinned by the three interwoven sub-themes of Opportunity, mobility and sustainability, seen as fundamental in addressing the most pressing issues of the time. While the sub-theme of opportunity will seek to unlock the potential for individuals and communities to shape the future, mobility will create smarter and more productive movement of people, goods and ideas.

    On the other hand, the expo’s sub-theme of sustainability was hinged on respecting and living in balance with the world to ensure a sustainable future for all. Expo 2020 Dubai is the first World Expo to be held in the Middle East, Africa and South Asia (MEASA) region, and the first to be hosted by an Arab nation. The expo coincides with the UAE’s 50th anniversary in 2021, marking an important milestone for the UAE.

     

    A window of opportunity for Nigeria

    One of the aims of Expo 2020 Dubai was to contribute to achieving the UAE Vision 2021 by supporting the growth of tourism, stimulating the development of innovative businesses in the UAE, and enhancing the country’s international reputation as a location to do business.

    Launched in 2010 by Vice President and Prime Minister of the UAE and Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, Vision 2021 is a long-term plan that aims to make the UAE one of the best countries in the world by 2021 when the UAE would celebrate the Golden Jubilee of its formation as a federation.

    Although the Emirate also said it remained committed to riding on the back of Expo 2020 Dubai to build a legacy that is sustainable, enduring and will set a benchmark for future World Expos, the event is also a prime opportunity for African countries, particularly Nigeria to collaborate, innovate, and work towards an inclusive and brighter future.

    Indeed, this holds true, especially for Nigeria, which is seeking to open up her economy and encourage massive investment. The event offers an unprecedented opportunity for Africa’s largest and most populous nation to showcase her capabilities, boost her global profile and access a diverse group of 25 million visitors that are expected to attend the mega event.

    The Marketing and Corporate Communications Director, Dubai Chamber of Commerce & Industry (DCCI), Mr. Rami Halawani, underscored the need for Nigeria and other African countries to latch on the Expo. “Africa is rich in energy and mineral resources, but lacks the capital, resources and infrastructure to bring this natural wealth to the market.

    “The UAE has access to the capital required by Africa to unlock the potential of its natural resources as well as the infrastructure to sustain economic growth,” he said. He added that Dubai remains a global gateway to Nigeria and other African markets, which is why the Chamber operates four representative offices within Africa. They include Ethiopia, Ghana, Mozambique and Kenya. The Chamber is also studying the possibility of expanding into Nigeria, Angola, Uganda and the Central African markets.

    Halawani, who spoke with select reporters from Africa and India during a ‘Business in Dubai FAM Trip’ organised by Dubai Commerce Marketing, recently, also said Dubai Chamber was working with her African offices to organise trade missions to Dubai, which have been joined by African business leaders that are actively looking for UAE business partners.

    “Through our trade missions, events, international offices, workshops, research, we continuously try to provide businesses with the opportunity to explore new markets, identify investment opportunities and build linkages.” he said.

    The fact that many developed countries are said to have confirmed their participation at the expo means that the opportunities for shared thinking, for collective development, and for beneficial trade and commerce have never been greater.

    Some of the buoyant economies that have confirmed participation include United Kingdom (UK), United States, Germany, Russia, China, India and Saudi Arabia, among others. They will be joined by Nigeria and other African countries that have also confirmed their participation in Expo 2020 Dubai.

    Some of them include Burkina Faso, Cape Verde, Central African Republic, Democratic Republic of Congo, Guinea, Lesotho, Liberia, Senegal, Sierra Leone, Somalia and Togo.

    Already, UAE, which is hosting the event, said it wants Expo 2020 to serve Africa’s interests and provide a platform for connections to be made by, and for, its African partners whether they be government, business or visitors.

    For Nigeria and other African countries that will participate at the expo, the robust UAE-Africa trade relations will be a plus. According to Halawani, several UAE firms have established a presence in Africa and there is strong interest by businesses in the UAE that are eyeing expansion opportunities across the continent.

    He listed some of these companies to include DP World, Carrefour, and Lulu. Halawani also said Dubai, in particular, has historic and strong trade links with African countries and can be a strategic partner for other regions that are looking to develop their trade and investment ties with the continent.

    “Dubai will serve as a strategic hub linking resource-rich Africa with capital-rich regions such as the Gulf Cooperation Council (GCC) region and Asia and provide foreign businesses with easy access to fast-growing markets in the continent,” the DCCI spokesman emphasised.

    The GCC is a regional political organisation comprising the energy-rich Gulf monarchies-Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. It is a political and economic alliance of six countries in the Arabian Peninsula.

    Nigeria signs up to Expo 2020 Dubai

    Interestingly, Nigeria has since announced that she will join the UAE’s Expo 2020 Dubai. The country’s participation was confirmed in a letter delivered by Nigeria’s Ambassador, Mohammed Dansanta Rimi, to the Chairman of the Expo 2020 Dubai Higher Committee, Sheikh Ahmed bin Saeed Al Maktoum.

    Rimi reportedly said: “Expo 2020 Dubai will be an unmissable opportunity for Nigeria to showcase the hard work we are doing to ensure economic growth and progress for our country in both the short and long term.

    “We want to show the world how we are working to improve the lives of our youths and people, while opening up our economy and encouraging foreign investment – and the Expo will be the ideal platform for us to do so.”

    By this, it means that Nigeria will have its own pavilion as part of Expo 2020 Dubai’s one nation, one pavilion policy – making Expo 2020 the first time in the 168-year history of World Expos where every country will have its own pavilion. Dozens of nations have already revealed the design, theme and visitor experience of their pavilions, with more being announced regularly.

    The Nation learnt that at the last count, more than 26,000 suppliers from 150 countries have registered for the expo. This includes Small and Medium Scale Enterprises (SMEs), which continue to be a priority in getting contracts. so far, fifty-six per cent of all Expo 2020 contracts have been awarded to SMEs.

    To date, Expo 2020 has awarded AED 15.32 billion in contracts, with AED 2.4 billion benefitting SMEs, supporting expo’s aim to foster innovation and support small businesses.

  • Monarch to Fed Govt: revitalise textile industry

    The Ebumawe of Ago-Iwoye, Ogun State, Oba Abdul-Rasaq Adesina Adenugba ((Okokodana II), has urged the Federal and state governments to revitalise the textile industry to create jobs for the youth.

    The former banker and industrialist made the call in an interview with The Nation.

    The monarch appealed to governments at all levels to encourage cotton production and provide the enabling environment that would encourage private sector participation for the textile industry to grow.

    He noted that the provision of critical infrastructure, such as electricity and good transportation system, was crucial for the industry to boom and meet local demand.

    The Ebumawe said one textile firm had the capacity to employ between 1,000 and 10,000 workers. He, therefore, and urged the government to put in place policies and measures that would assist in revitalising the moribund industry.

    He said the industry had a value chain of cotton cultivation, fabrics production and fashion business, which are can boost the economy.

    “If we calculate the impact, definitely more jobs would have been created for the restive youths and the jobless graduates,” he said.

    Oba Adenugba noted that, in the past, the industry played a dominant role in boosting the economy.

    “The country witnessed a boom in the textile industry in the early 60s, 70s and 80s with textile mills in Kano, Kaduna, Aba and others employing millions of people. The industry was able to contribute highly to the country’s Gross Domestic Product (GDP).

    “The situation changed, following the shifting of focus to oil and government’s neglect of the agriculture sector. The abandonment of the sector has adversely affected the textile industry. Our textile industry has become a shadow of its former self and has continued to be in the throes of prolonged depression,” he said.

    The paramount ruler recalled that in the 80s, the textile industry was the second highest employer of labour after the civil service.

    He, however, regretted that things became difficult for many textile companies because of lack of infrastructural, especially electricity supply, lack of raw materials and spare parts and government’s policy inconsistency.

    The Ebumawe said these factors pushed the once-thriving textile industry to near total collapse. “Today, the industry is faced with rising operating cost and weak sales due to high energy cost, smuggling of textile materials, and poor access to finance,” he said.

    He added that it was painful that the cotton growing sector was dead, thereby depriving thousands of smallholder farmers the chance to earn a living. According to him, a large proportion of clothing materials in Nigeria are imported from China and Europe.

    “The death of these industries led to the rise in unemployment, insecurity and other negative social vices that we are witnessing today, hence the need for governments to pay attention to the textile industry with a view to reviving it, ” Oba Adenugba said.

  • Sade Okoya Speaks on the future of manufacturing in Nigeria

    Chief Executive Officer of manufacturing giant, Eleganza Group, Folashade Okoya, has spoken on the role women have to play in the manufacturing industry in Nigeria.

    Okoya, who has helmed the affairs of the company over the past decade with her husband, Chief Razak Okoya published an op-ed titled Nigeria’s Manufacturing Power Couple on the Future of Manufacturing in Nigeria, in the prestigious Forbes Africa magazine.

    The article which featured in the prestigious Forbes Africa magazine examines the need for greater automation in the manufacturing processes as well as the trends that will influence the competitive Nigerian manufacturing sector in the next decade.

    Folashade Okoya, who was also interviewed in the magazine, opined that women are very strong by nature even though they appear fragile by physical appearance, we can adapt to any situation irrespective of the challenges we face daily.

    On the role of females in the manufacturing industry, she said; “Firstly, I think we need a program that promotes the role of women in manufacturing and this really should be initiated by the Nigerian government. The reform needs to start from the micro level and we need initiatives that will serve to mentor and recognize women while also leading research efforts tackling this important topic. Ultimately, to attract top female talent in manufacturing, there needs to be a way of showing the amazing opportunities the manufacturing industry has to offer.”

    READ ALSO: ‘Bad policies bane of Nigeria’s manufacturing sector’

    She further added that to bolster manufacturing attractiveness to women, it is important to set up more technical and tertiary institutions for women and celebrate more women in manufacturing regularly to bring awareness to more millennial women.

    Presently, Mrs. Okoya is using her entrepreneurial drive to strengthen the goodwill of the organization and its corporate positioning in Nigeria. At a time when the manufacturing sector has been dominated by men because it was considered to be too challenging for women, she has used her entrepreneurial prowess to show the relevance of women in the sector.

    The manufacturing industry is contributing nearly 13% of GDP to the Nigerian economy.

    Folashade and her husband, Rasak are industrialists who have contributed greatly to this quota by transforming a small trading company into one of the largest conglomerates and indigenous manufacturers of household products in Nigeria, employing about 5000 people across Nigeria.

  • Afreximbank reaffirms commitment to Africa’s transformation via trade

    The African Import Export Bank (Afreximbank) has reiterated its commitment to integrate and transform African economies by promoting intra-African trade.

    The bank, in a statement on Monday quoted its Managing Director on Intra-African Trade, Mrs. Kanayo Awani, as saying this at the “Trade with Africa Business Summit’’ in Chicago, United States of America.

    Awani said efforts to open up African markets should be accompanied with industrialisation and capacity building initiatives to help African countries produce value-added goods.

    She said such an approach would allow for such value-added goods to be traded within the continent and globally in a competitive manner.

    “Afreximbank is already financing and facilitating the production of such value-added goods, using a number of instruments which also support intra-African trade.

    “This includes supporting the establishment of industrial parks and export processing zones, establishing Africa quality assurance centres, and setting up export trading companies.

    “The bank has also recently inaugurated the Pan-African Payments and Settlements System, established MANSA, an Africa customer due diligence repository platform, and instituted the Intra-African Trade Fair.

    “This is to further boost intra-African trade and support the implementation of the African Continental Free Trade Area (AfCFTA),’’ she said.

    Awani said the bank was ready to work with partners, including the United States to promote inclusive growth and socio-economic transformation in Africa.

    She said with the number of Africans in Diaspora, there were opportunities for growth in Diaspora-focused trade in ethnic foods, textiles, the creative industry, including music and film, and tourism.