Category: Business

Can you bring us up to speed on the outcome of your recent visit to Burkina Faso?

I have just been in Burkina Faso where I was with my second visit, third visit to the Sahel actually, this last year. And it follows a number of visits I have made to the Horn as well, as USAID has really pursued a strategy of resilience. Last week two events occurred. The first is that we released our first ever policy on resilience called ‘Building Resilience to Recurrent Crisis’, which really signals the ways in which USAID is doing business differently to build resilience in areas where you have chronic poverty buffeted by recurring shocks and crisis. I was in Burkina Faso to join colleagues from regional organisations, countries of the region and the European Union (EU) to launch something called the Global Alliance for Building Resilience, and what that does is enable donors and international development partners to align our resources and approaches with regional organisations in support of country plans for building resilience. This mirrors an organisation that we launched last April in Nairobi, similarly with international partners and regional organisations aligning resources to support country plans to build resilience. All of this has been galvanised by the last year and a half of really devastating droughts both in the Horn of Africa that affected more than 13 million people and then followed quickly in the Sahel by a drought that affected some 18 million people. In both regions, what has become very painfully clear, is that with the impact of climate change moving these cycles of drought from what used to be every decade or so, they are coming faster and faster every two or three years. And the most vulnerable communities in those regions are simply not able to recover. So they are losing their assets, they are falling deeper into debt, there are persistent stubborn rates of malnutrition and we are not connecting our significant infusions of humanitarian assistance with ongoing development efforts. So with this resilience launch and with these organisations, both in the Horn and the Sahel, that enable us to join in alliances with development partners to align resources and efforts with regional partners to support country plans. The goal is to reduce the number of people who are persistently falling into crisis, who need humanitarian assistance and to enable them to get on the pathway for development. This complements President Obama’s “Feed the Future Initiative”, which is an effort to really bring additional resources and investment, particularly in agriculture which is so important for communities in Africa to move forward into greater development and prosperity. So taken together, this is the United States’ commitment to really make a difference for the most vulnerable across the continent and connect to the possibilities for growth and prosperity.

Nigeria has been ravaged by floods in recent times. You find that the government did some interventions which obviously have not been enough. What is USAID doing along that line?

Our whole resilience policy very much builds on work that we have done with disaster risk reduction as well as some of the adaptation work from global climate change. We know that these kinds of disasters are going to keep happening and so the emphasis is on that risk reduction and that preparedness, but linked to the kinds of approaches that can help those affected communities maintain their development gains and move forward on growth. So it will look different in each country and for Nigeria, like other parts of both the Sahel and the Horn, one of the keys is making sure that at the local level, people are prepared, that there are the kinds of government policies that enable that overall risk reduction.

With regards to food insecurity, there are fears that next year we will have a huge famine in the country. I want to know what USAID is planning to do to help assist the communities that are likely to be affected by this crisis.

In Nigeria, you know, about 20 years ago USAID invested in a system called FEWSNEt and along with CILSS, which I believe you are familiar with, which is headquartered in Ouagadougou, we watch very closely with market data, crop production, indicators of what food availability might be in a given area. We have food prepositioned in the region. Last year for example, we were able to both move food in as well as programmes that emphasise cash and vouchers, so that we don’t disrupt markets where they are working. So we are very vigilant at looking at what the indicators are for future deepened food insecurity and have contingency plans ready to trigger if they are necessary. And one of the big changes over the last say five years, is we have put a greater and greater emphasis on market-based assistance programmes. So although we do have commodities prepositioned in the region, it is very important not to undermine or disrupt those markets that are functioning. In which case we can use cash and/or voucher kind of programmes.

The assistance to the country, could you quantify it in monetary terms or is it mainly technical assistance?

You know, we will have to get back to you with that. The focus areas for our resilience strategy right now have been in Kenya, Ethiopia, Burkina Faso, and Niger. We do have a large programme in Nigeria and we have provided some regional humanitarian assistance, but it is less affected than other parts of the Sahel by the drought last year.

Are there efforts made by USAID to boost the green revolution in Africa to grow indigenous crops? For example, Nigeria is the highest producer of cassava although we are not the highest exporter of cassava. So is there anything that USAID is doing to help Nigeria use its indigenous crops to boost food security? That is one. The other question I also want to ask has to do with biotechnology. I know a lot is being done to use biotechnology to put food security in the area of research. Is there anything also being done by USAID to collaborate with Nigeria to ensure there is food security in the country?

You know, I would just say that overall our Feed the Future initiative, which was announced by President Obama, is very much focused on ensuring that there is increased emphasis on food security and really looking at how do we improve production using local capacity. And so far, Feed the Future has helped 1.8 million food producers adopt improved technologies or management practices that can lead to more resilient crops, to higher yields, to increased incomes and as part of that, the initiative has also reached about 9 million children through nutrition programmes. So this is a companion to the resilience approach, understanding that when communities and families are hit by shocks, you can undermine those development gains. So making them more resilient enables them to then work on these approaches of improved technologies, benefit from the kind of research that comes up with drought resistant varieties as well as tackle some of these really important nutritional issues.

In northern Nigeria, we have the case of the drought, which is spreading with regard to the boundaries that you have with the Sahara desert. Are there projects, or is there anything you are doing, you said you are going to work with farmers to also improve their resilience, so that the soil could be fertile by either tree planting or working with local farmers. Because not all the food produced in Nigeria is by local farmers. Is there a project or anything you are working with for local farmers in Nigeria?

Throughout the Sahel region, one of the most really exciting developments is the re-greening approach, which is very much about small farmers doing the kind of cropping and tree planting that revitalizes the soil, makes it more fertile, increases food production. We have specific emphasis on working with small farmers, both because they are often the most vulnerable, they are most affected by these cycles of drought, they are often highly indebted, and by the way they are often women, and through a combination of improved crop variety, like the Moringa tree for example. When I was in both Niger and Burkina Faso recently I visited a number of women who were growing Moringa in their kitchen gardens which, if you are not familiar with it, it is a very high yield, highly nutritious small tree that enables these women both to feed their children very nutritious meals as well as market the rest of it. So working with small farmers in a way that both reduces their vulnerability and in fact takes them onto a more productive pathway, and by the way, has climate benefits. If you look at the re-greening initiative for example, this is a very important approach that combines a number of these key issues, addresses the risks and moves the farmers forward. This then can link up with the kind of approaches that we focus on in Feed the Future, which is the improved seed varieties and ensuring that there are improved markets. You are absolutely right to ask about the small farmers, though. They are key.

With the increasing level of food crisis in Africa, do you think the region will be able to attain their first Millennium Development Goal of extreme hunger and poverty and what do you think African leaders can do to help attain agricultural and food security?

You know, I actually think that we have an extreme moment of opportunity here in Africa. There is a recent Economist survey. It says that six of the 10 fastest growing economies of this last decade were in Sub-Saharan Africa. And looking ahead, the International Monetary Fund (IMF) predicts that in the next five years seven of the 10 fastest growing economies will also be in Africa. The challenge is ensuring that those gains are not undercut each time a shock hits- a drought, a flood, a food price increase and also ensuring that the most vulnerable are included in these development gains. A recent study at the World Bank notes that the drought in Kenya cost it, the Kenyan economy, $12 billion. So it is important that the kind of risk mitigation measures, that the kind of adaptation approaches are very much a part of a country plan and that they are thinking about including those most vulnerable communities, many in fact whom can be an important part of a country’s production. Where I am very hopeful, is that with this international focus and international momentum that we have seen in both the Horn and the Sahel, with the EU, with the U.S. joining forces with other countries in Europe and Japan, the World Bank, most regional entities, and with the country governments that we have this extraordinary alignment and commitment to doing business differently and to building resilience. Not just providing humanitarian assistance but connecting that to development programs so that we can realize the kind of gains and support the future of Africa as a real growth leader. But it needs to be inclusive growth.

The yuletide season is a time of the year when many corporate bodies deploy resources in order to reward staff, customers’ loyalty as well as their host communities. But the general lull in the economy which has had a rippling effect on different businesses has adversely affected the budget for Christmas this year, report Ibrahim Apekhade Yusuf and Bukola Afolabi   

FOR most businesses whether in the public or organised private sector, Christmas this year, in a manner of speaking, will not have its usual fun, frills and thrills.

Reason: most big businesses around, hitherto known for heavy spending usually at this time of the year have all planned and based their annual yuletide package on a shoestring budget.

Blue chip companies such as banks, oil and gas, telecoms, construction, manufacturing, among several others, are putting up appearances rather than devoting resources on expensive gift items for the yuletide while others are spending little or nothing at all.

Our correspondent who visited some bank headquarters on the island observed that not many of the banks are investing much in Christmas decorations unlike the previous year as majority of them, it was learnt, have had to make do with used ones of the previous year.

Charity giving

It is, however, instructive to note that some of the banks devoted a slice of their budget for spending during the yuletide as part of fulfilling their corporate social responsibility.

Many of them like First Bank Plc, Fidelity, Diamond, GTB, UBA, Zenith, Sterling and others definitely score high in this regard.

For instance, Zenith Bank Plc, with headquarters on Ajose Adeogun Street, beautified the entire stretch of the street starting from the roundabout, with the bank logo dotting the landscape.

Also at the Lekki Phase one roundabout, where Zenith has a botanical garden, the place was a cynosure of eyes as some tourists were seen taking photographs besides the roundabout just as many passersby at the bus stops stole quick glances at the massive Xmas architecture glittering in maroon and cream colors, which depicts the brand.

Attempts to speak with Akin Olaniyan, Head of Corporate Affairs at Zenith Bank, to shed light on what may have motivated the bank’s spending for the yuletide were futile as he neither returned calls nor text messages sent to him.

But a staff of Zenith who asked not to be named because he is not authorised to speak with the press said it is the bank’s policy to give charity during the yuletide.

Huge industry around Xmas

A huge industry has been built around Christmas as many people get gifts like hampers, clothes, shoes and jewelries. For some, it is the season to buy new stock while for others, it is the period to empty their stock by selling them at cheaper prices in preparation for new ones that will come in the New Year.

Lull in businesses

During Christmas world over, financial spending is always on the high side. Many people, having worked throughout the year, spend all their savings on fun and merriment during Christmas. However, the dwindling economic fortune of many who can hardly spare disposable income these days is gradually having negative effects on the celebration of Christmas.

Since the second quarter of the year, many Nigerians have been groaning under the harsh economic condition with daily lamentation of ‘no money in town’.

As such, with Christmas celebration just few days away, many might not enjoy this year’s Christmas as much as they would have wanted.

A cross-section of sales reps and attendants at Ikeja axis and environs who spoke with The Nation lamented low patronage as few customers patronise them, unlike what it used to be.

Mrs. Funmilayo Adewale who has a shop at Alade market, Ikeja, said in the last one week, she was only able to sell 10 hampers as against 25 she used to sell few days to Christmas.

“This year’s sales have not been encouraging. For the past one week, sales have not been moving as it should be. You can imagine that I have only sold 10 hampers in the last three weeks before Christmas. People are complaining there is no money. I have a customer that used to buy five hampers at the same time. This year he bought only three and when I asked him why, he said he’s trying to manage the money he has. The goods are there but where are the customers?” she lamented.

For Victor Afolabi, a cloth merchant on Lagos Island, the complain is much the same. “Every year, I travel to China two months before Christmas to buy goods. I sell them all of them at least a week before Christmas but as you can see, four days to Christmas, I am yet to finish selling all of them this year. This year, business is not the way it used to be. We can only hope that the situation change before January 1.”

Even those who work in corporate organisations are not left out. Sharing her experience, Alero Temisan, a staff of an oil servicing company with headquarters in Port Harcourt, recalls with glee the “wow” treat members of staff got last year during the yuletide.

“Last Christmas, I got a Blackberry gift from my company. This is besides the retreat we all enjoyed at the Obudu Ranch for two weeks. I have fond memories of last year’s festivities,” Alero enthused.

But regrettably, she says this year is the worse the company has ever had as no budget was approved for hampers or leisure trips, because the company is passing through some hard times.

“Things are a little bit hard up for the company. The business outlook for this year has been anything but favourable to us. We have a lot of debt overhang among other challenges. So, naturally we don’t expect anything from the company not even a bonus of any sorts,” Alero stated.

Abimbola Oluwasegun who works in a commercial bank is also on the same page with Alero.

“What I realised is that many people are trying to reduce their spending. Today is December 21, just four days to Christmas and I have only received two bags of rice and two hampers as gift. Two years ago, by this time, I would have received four bags of rice and at least two hampers. Even some of my friends are complaining of the same thing. I think the economy is biting hard on many Nigerians, even the rich ones are complaining,” she recalled.

Echoing similar sentiments, Gbenga Adeleye, the CEO of an indigenous shipping company, equally lamented the effects the economy is having on the celebration of this year’s Christmas.

“As a matter of fact, this year I am only able to give my staff half bags of rice each unlike the one bag I used to give them. The reality on ground is that we need to start cutting down on our spending because no one knows where Nigeria is going. Christmas will come and go, so it does not make sense to spend lavishly just because you want to give gifts because the economic situation of Nigeria as it is now no longer allows for that.”

A visit to some shopping malls, supermarket, local street markets in Lagos metropolis and its environs showed a lot of wares on display but few shoppers.

Small mercies

However, not everyone is affected by the low sales. While some are lamenting low patronage, there are others who still record a reasonable patronage and literally smile to the bank. Talk of little mercies.

Comfort Chinemere, who sells household items at the Warehouse Market along Apapa/Oshodi, said she has enjoyed high patronage in the last one week. “I thank God sales have been good. At least people are coming to buy. You know there are some people who will wait till end of the year to buy what they want at cheaper price. There are some who buy and resell. In the last two weeks, I have been selling well and I hope it continues like that till New Year.”

Likewise, Prince Azuka, a phone seller in the same market, said sales have been good for him in spite of the economic situation. “At least, I have been selling four phones a day in the last one week which was not like that five months ago.”

Esther Jones, who sells used clothes at the famous Boundary market, located in Ajegunle, an uptown district in Lagos, usually has a palatable experience at Christmas.

“Yes, Christmas is good for me. Sales have been good because people have been coming. Some parents who do not have money to buy new clothes and shoes for their children come here to buy used ones which are still in good condition. This is the period I make more money. As a matter of fact, I do travel to Cotonou twice in a week to buy because sales are moving very fast and by the time I come back, lots of customers would have been waiting for me.”