Tag: AfDB

  • AfDB partners Pan-African university consortium to launch groundbreaking cognitive devt initiative

    AfDB partners Pan-African university consortium to launch groundbreaking cognitive devt initiative

    In a bold step toward transforming Africa’s cognitive infrastructure and educational systems, the African Development Bank (AfDB) has partnered with a Pan-African university consortium to launch the Qualitative Thinking Model (QTM), a high-order learning and cognitive enhancement framework designed to strengthen reasoning, structured thought, and multi-domain problem-solving across academic and professional contexts.

    The model was developed by Omobayode Lepe, the systems innovator behind RIKA (Resilient Intelligence & Knowledge Architecture), a research platform already in use across several African universities.

    While RIKA focuses on enhancing research workflows, QTM tackles the cognitive core of knowledge development itself.

    Unlike conventional academic frameworks that emphasise rote knowledge or siloed expertise, the Qualitative Thinking Model is engineered to cultivate cognitive precision, deep pattern recognition, and adaptive reasoning. It introduces structured mental models for navigating ambiguity, mapping complexity, and synthesising insight across disciplines.

    “QTM isn’t just an educational tool; it’s a cognitive upgrade system,” Lepe said.

    “It helps learners internalise structured ways of thinking, enabling them to transition from memorisation to synthesis, and from comprehension to generative problem-solving”, Lepe added.

    At its core, QTM leverages concepts such as:

    Cognitive Layer Mapping – segmenting thought processes into modular, traceable logic layers

    Cross-Domain Inference Structuring – enabling learners to draw reasoning pathways between unrelated disciplines.

    Impact-Oriented Thinking Sequences – training the mind to assess consequences, trade-offs, and systemic effects dynamically.

    The framework will be deployed across pilot universities as both a learning accelerator and a thinking assessment system, with support from the AfDB’s innovation and education fund. Its applications extend beyond the classroom, reaching into entrepreneurship programs, civic leadership training, and early-stage innovation labs where structured intelligence is crucial.

    With its foundation rooted in African educational realities but designed to meet global standards of critical reasoning and systems innovation, QTM stands as a milestone in homegrown intellectual development. It signals a shift from content delivery to cognitive empowerment, where the real value lies not just in what learners know, but in how they think.

  • AfDB okays $20b for transport infrastructure

    The African Development Bank (AfDB) has invested over $20 billion in transport infrastructure on the continent in the last one decade.

    The continental lender said more than $1 billion of the $20 billion was invested in the aviation sector.

    Its Chief Aviation Officer, Romain Ekoto made this known in an online interview.

    Ekoto said for many years, AfDB has supported commercial aviation in Africa through modernisation of airport infrastructure to address glaring gaps in the continent’s air transport architecture.

    He said the lender has set key strategic goals, including regional integration to  support aviation because the  sector appears  more than ever as a contributing factor to economic development.

    Citing statistics from the  International Air Transport Association (IATA), Ekoto said  commercial aviation in Africa generates $55.8 billion in economic activity and 6.8 million jobs.

    He said in  the next 20 years, the sector is expected to grow by about six per cent  a year.

    He said: “Over the past decade, the AfDB has invested about $20 billion in transportation infrastructure, including more than $1 billion in the aviation sector.

    “Around 75 per cent  of funding in aviation is devoted to the modernisation of airport infrastructure.”

    He said one of the  recent projects undertaken by the AfDB was financing the modernisation of Nelson Mandela International Airport at Praia in Cape Verde, which  has entered its final phase.

    According to AfDB forecasts, on completion, the airport  will accommodate  over 940,000 passengers yearly by 2020 – and 2.2 million by 2035.

    Ekoto said similar investments had been made in the construction or expansion of airports in Ghana, Kenya, Morocco and Tunisia, as well as in the improvement of air safety and navigation in the Democratic Republic of Congo (DRC).

    He said: “Another of the key objectives of AfDB is to enhance commercial aviation’s profitability, so improving economic performance. By allowing airport managers to access cost-effective financing, and then working closely with them on governance and revenue generation, they should be able to improve results.

    “AfDB is also supporting a regional programme, in the form of grants, for building capacity and coordinating operating systems in twenty five  west and central African countries.

    “In the long term, AfDB support aims to increase the number of airports certified to ICAO standards to twenty  by the end of 2019.”

    He said the AfDB  also supports other parts of the sector including airlines.

    Ekoto said: “We have already financed the acquisition of aircraft by Ethiopian Airlines and, more recently, by Air Côte d’Ivoire.”

     

  • ‘Funding safer skies is key to AfDB’

    Funding and collaboration among African countries is key to delivering safer skies on the continent and for its air transport sector to deliver as a catalyst for economic development. The Chief Executive Officer/Commissioner, Accident Investigation Bureau (AIB), Akin Olateru, says to acieve this requires a mix of capacity development, right equipment, processes and systems. He spoke with select aviation reporters. KELVIN OSA OKUNBOR was there.

    What has changed in the agency since you came in 2017?

    I will start by saying this. Whatever you think, whatever you feel, all the actions you take in life are majorly influenced by two things: first, your beliefs and second, your values. These two components in a way shape our decisions in life and, in turn, shape our lives. That is life. When I came in, in January 2017, AIB was at its lowest ebb. I inherited disgruntled staff, a poorly-funded agency. An agency of government you can say, in terms of performance, scored below 35 per cent. Today, I stand tall because of our achievements since we came into government.

    When I came in, we had to work on our beliefs and values. On the human elements or human capital, we did a lot and part of the improvements we made in our human capital was training and retraining, changing the mindset of our investigators.

    We moved away from our individualistic way of doing things to a group way of doing things, training them to know the effect of good team work.

    How have you leveraged team work and collaboration to enhance capacity development ?

    These are one of the key things we concentrated on. In doing that, we needed the assistance and support of great institutions around the world. It makes sense to learn from the best and we approached some nations, institutions at that time. I stand today to tell you that the United States Government has been our greatest ally and greatest supporters through the National Transport Safety Bureau (NTSB). They have been in reality a major pillar of support. They have supported us with everything humanly possible through the Managing Director then, Mr. Dennis Jones, who has been to Nigeria to train our investigators with his team. The US government through the Safe Skies for Africa programme supported us immensely. We have other nations who didn’t believe in us. I really sincerely want to thank the US government, especially the NTSB and, most especially Mr. Dennis Jones, who is a gift to the world. He has been a major pillar of support. Without them, maybe, we won’t be where we are.

    How many memorandum of understanding did Accident Investigation Bureau sign with other countries?

    Today, we have nations signing Memoranda of Understanding (MoU) with Nigeria, believing in what we do and want to emulate us, want us to support them. They want us to work with them, they want to share from our experience. We have South Africa, we have Saudi Arabia, we have Gabon. Tshere are talks ongoing on partnership with these nations. Currently, we have signed an MoU with France, Benin Republic, Sao Tome and Principe and in the next one month, we will be signing with Saudi Arabia. These are great nations. But to me, you must have something sellable; you must have something they see in you that they admire in you before they want to sign an MoU with you.

    What is the infrastructure profile of the Bureau ?

    In terms of infrastructure, you will agree with me that there are four key elements to that irrespective of the industry or the sector. The four major components are human capital, infrastructure, equipment and systems processes and procedure. You need to score seven and half over 10 in each of these components. It takes time to build all these four key elements. Today, I can tell you in terms of equipment, AIB is one of the best in the world. I thank the Senator Hadi Sirika, the past Minister of State for Transportation, now Minister of Aviation, for his belief and support for making it happen. We are rated among the first 10 in the world in terms of equipment and capabilities. Our flight safety laboratory in terms of equipment, we are rated one of the best. In terms of infrastructure, we are rated 7/10.

    What is the human capital component like in the Bureau ?

    In terms of human capital, we have over 30 well-trained investigators in Nigeria. The whole of West Africa has no fewer than 30 investigators. So, you can understand the number. In terms of systems and processes, we are rated 8/10. We are independent. This is one thing that the International Civil Aviation Organisation (ICAO) calls for nations to have accident investigation bureau that is independent of the civil aviation authority and that was passed by the parliament in 2006 through the Civil Aviation Act 2006, which gave birth to AIB.

    When will AIB be multimodal in terms of accident investigation?

    We are working on the possibility and the approval of AIB going multimodal. Going multimodal means we are going to be investigating not just the air accident, we are going to be investigating rail accidents, we are going to be investigating marine accidents and road accidents. We are joining nations around the world who operate this multimodal system of operations.

    How did this come about ?

    Last year, the Federal Executive Council (FEC) approved our proposal – the new draft bill for AIB. Before the Senate went on recess, this bill is already in the Senate and hopefully, before the end of this year, this bill will be passed and that would make AIB Nigeria one of the top nations that do multimodal. We have reviewed just two months ago, we reviewed that to take care of all those gaps.

    If you stay stagnant, the world will go past you. I came in January 2017, if you count the number of reports we have released, they are all on our website. AIB, since 2017, has released 58 per cent of the total number of releases done since the creation of the agency since 2007. In terms of release of final reports, we have done 58 per cent. The main reason AIB is set up is to investigate accidents and serious incidents and to come up with safety recommendations to prevent future occurrence. If you don’t release those reports on time, you are doing a disservice to the entire industry because there won’t be lessons to learn. How do you prevent the reoccurrence? By the time you are issuing your safety recommendations, may be four or five years later, the airline may not even be in operation. When I assumed office, I said no report will go beyond 18 months except in an extremely special case, which we have not had.We are like the backend of the operations unlike the Nigerian Civil Aviation Authority (NCAA) that is visible. We influence safety through the backend. Our work is extremely important because we are the only institution that can investigate NCAA to see where there are lapses or gaps and to proffer safety recommendations to NCAA on how to do things better.

    What ground work have you done on the multimodal system you are proposing?

    When you look at accident investigation, the techniques are the same; whether it is marine or rail, the techniques are the same. How do we prevent future occurrence? When I said training, in the last one year, we have sent 30 of our investigators to Cranfield University to train on multimodal accident investigation. They are back in Nigeria. We have another two going in September to complete the cycle. We are working closely with the US NTSB. Singapore NTSB is working with us on this. As we speak, we have a relationship with NTSB, as some of our investigators go there for on-the-job-training, just to learn on the job, not just read books or sit in the classroom, but to actually be present with the US investigators to support us on that. Another thing you have to understand is that we will take on some rail staff from Nigeria Railways Corporation (NRC), the same thing with maritime and road and train them on how to investigate accidents properly. Those are the programmes we have in place to ensure we get there. It is not going to happen overnight. It takes time to build institutions. I can confidently say to you that AIB is a world-class institution.

    How comfortable will it be for AIB to investigate incidents or accidents in other modes of transportation when they don’t have FDR, CVR?

    Most ships have devices in the form of recording systems, but for cars, no. However, there are better ways to investigate car accidents beyond a recorder.

    I want to look at what your manpower will be when you begin with the multi-modal project? Will you be operating from the airport here?

    Currently, if you understand how we were set up, we have four office locations in the country. We are in Lagos, Abuja, Enugu and Kano. You don’t build Rome in one day. This will be a gradual process. We need to first of all utilise  the maximum of what we have first before we do a proper need assessment whether we are going to increase our point or we are good at four points, but these are decisions that will be taken in a later stage. I cannot really comment on that now.

    The Safe Skies for Africa Programme sponsored by the US Government in the past 21 years has finally come to an end. What do you think can be done among African nations to sustain this safety and security initiative?

    Today comes the end of our programme where we brought in African nations to join us in aviation safety programme sponsored by AIB in conjunction with Safe Skies Africa, which is a department of transportation and the NTSB. Unfortunately, the programme has come to an end. The US government will no longer sponsor the safe skies programme. It is very unfortunate. Africa has really benefited from this programme and I think we, Africans, should put heads together on how we can help ourselves. We have the African Development Bank (AfDB), which under corporate social responsibility can take up this programme to help Africans. When an aeroplane goes down, it does not distinguish nations.  This is why we owe it to ourselves, the whole world, to work together and strengthen aviation and make it a safer place to be.

    Why do you think the US Government decided to end the Safer Skies for Africa programme and how can AfDB come in?

    That is a very good one. I cannot speak on behalf of the US government on why they decided to stop sponsoring or funding the Safe Skies project for Africa. All I know is that we were told that the project has stopped. On AfDB, I make bold to say, this is my initiative of getting them to sponsor this project to the benefits of African nations. I had a meeting with Bernard Aliu, the President of the International Civil Aviation Organisaton (ICAO) two months ago in Montreal, Canada. I had a discussion with him on how AfDB can continue to be sponsoring this project through ICAO because AfDB will not just release money to AIB, it has to be an independent organisation, which is ICAO and it is not only for Nigeria, but to African nations.

    There will be another meeting in the next ICAO Assembly on the clear-cut modality to get this done. Talks are still on, on how to make this work.

    Earlier, you spoke about the various MoUs AIB has signed with some countries. Could you tell us what these MoUs tend to achieve?

    I will give you an example of the Sao Tome and Principe. The last accident that occurred in Sao Tome was ceded to Nigeria to investigate. We investigated that accident and the final report was released 12 months after the accident. That gave my investigators some kind of exposure. You need to understand what accident investigation is all about. There are no two accidents that are the same. They may look alike, but if you look critically, you will see that there are other things you need to learn as you go along. That is one thing strengthening your technical competence. Take France, for instance. France wants Nigeria to help the francophone African countries and their MoU is to look at how they can strengthen AIB either through training, equipment. Come November, there is training dedicated for our investigators from France to go to France and learn something. Don’t forget, when you talk aviation, France is one of the leading countries in the world. They have majority shares in Airbus and there are many activities in France. There is so much we can learn from France.

    Take Saudi Arabia, for instance; it is just because of the ongoing hajj, our agreement would have been signed because we have got ‘okay clearance’ from the Ministry of Justice to go ahead and sign the agreement. Saudi Arabia has some expertise that we need and they are happy to come to Nigeria to train our team on that.

    What area will the training address ?

    What they will be coming to train us on is looking beyond the Flight Data Recorder and the Cockpit Voice Recorder (CVR). We have met; we have discussed everything on the CVR and FDR. You need to look beyond that and that can help to make your report much better.

    For the Republic of Benin, what they have signed is to say whenever there is an accident, we should come and help them. They don’t have anything on ground, so they told us, if we have training, we should please include them. We have an agreement with Gambia through Banjul Accord Group Accident Investigation Agency (BAGAIA). Today, we have helped Gambia to set up an accident investigation agency. We supported them in writing their regulations, the Act, the whole work. We even helped them with our Standard Operating Procedure (SOP). They came to Nigeria, they sat with us and we put them through. Today, it has been passed by their parliament. These are the kind of things we are doing to help them.

    Earlier, you said when you came on board in 2017, you met a bureau that was poorly funded. Is the bureau properly funded today?

    If you look at most government institutions, they are funded from the government coffers, but through the ingenuity of the past Minister of State Aviation, vis-a-vis the challenges of AIB at the time, we came up with a modality, which was more of a stop gap measure, a temporary arrangement to fund AIB’s operations through a special intervention fund. But, the permanent solution to that is once our bill is approved and that is when we are going to have a permanent solution in terms of proper funding.

    A committee was set up recently to find out how your recommendations assist with safety. Are you satisfied with that?

    I was the chairman of that committee to look into the implementation and effectiveness of those safety recommendations that AIB has issued since inception and we came up with the final result of 62 per cent of safety recommendations that were implemented. Partially implemented were 18 per cent and the rest were not. You need to understand one thing. Safety recommendations can be issued to an airline. For instance, there was a helicopter crash, the first safety recommendation issued to that company was a Bell Helicopter. Unfortunately, the company went burst even before the safety recommendations came out.Will you count that that was implemented? The answer is no. Some safety recommendations may not be implemented because of cost.

    What is the realationship with the Nigeria Civil Aviation Authority?

    For us and NCAA, I have had a meeting with the Director-General of NCAA, we have agreed on how to work on an MoU basis. We have sent in a proposal and we are waiting for his response because AIB and NCAA need to work together as a team on MoU that will guide our relationship. For clarity sake, I have read some things in the newspapers when somebody said NCAA doesn’t have to implement AIB’s recommendations. It is either the person doesn’t understand aviation or how things work from AIB’s perspective or just trying to be mischievous. I will tell you the process.

    What is the procedure adopted before accident reports are released?

    When we are done with our investigation, we send the final draft to NCAA, among other stakeholders, for their review and we give them 60 days to come back to us to tell us why they are not implementable. We don’t just issue safety recommendations for issuing sake.We give the stakeholders opportunity to comment. That is why we call it 60 days window. We are trying to shorten it to 30 days, so that our reports can be out on time. You can imagine you completed reports and you have to give 60 days; that is two months just for stakeholders to read, comment and get back to you. You need to trust AIB.

    We need to build a world-class institution so that when we talk, you will listen. This is what we have been doing in the last two- and-half years to make sure that AIB is a credible institution that everybody would listen when we talk. That is very important. It is the same thing all over the world. The US NTSB doesn’t have it in their regulations that if you don’t comply, they will send you to jail. We are making it easy, we work with you. We give you time to assess our recommendations and discuss with us if you think it is not right.

    What template do you intend to adopt in handling investigation of road crashes?

    On the road, I will give you an example that there is a crash and the vehicle somersaulted, which was caused by a huge ditch or pothole on the road and we issue a safety recommendation to Federal Road Maintenance Agency (FERMA) to fix the ditch. We will work with FERMA, the same thing we are doing with NCAA. Once that pothole is fixed, this is how you can prevent all these needless deaths. People die every day on our roads. The problem is that nobody investigated anything, nobody checks anything, nobody says this is what we need to do to prevent future occurrence. We’ve heard of tanker fire accidents many times; have you read any recommendation on how to prevent it? These are the things we are going to fix. The people that don’t want to comply, it is either they don’t know or they just don’t want to comply. We found out more that people don’t just know.

    Some people think accident investigation is about witch-hunting, but it is not. It is about to help the individual airlines to make sure you reduce these bad images, you are not getting this bad press. If you stop having these reoccurrence, then you reduce the exposure to bad news. It is in the interest of everybody, including the flying public.

     

  • AfDB lauds Chinese commitment to Africa

    The African Development Bank in Nigeria met a private sector consortium from China to help attract investment through partnerships in the development of special agro-Industrial processing zones (SAPZs) across Africa.

    The Bank delegation, led by Professor Banji Oyelaran-Oyeyinka, the senior special adviser on industrialisation to the African Development Bank’s President, paid a courtesy call to Nigeria’s Vice President, Prof. Yemi Osinbajo, who assured the consortium of the tremendous investment opportunities Nigeria offers.

    Discussions centered on Chinese direct investments and partnerships with Nigerian agribusinesses as well as ventures with Nigerian state governments and agribusinesses in the development of agro-Industrial parks.

    “Nigeria has the potential to become the food basket of the world; but this depends on our ability to deploy the right technology. Our partnership with you allows us to harness the knowledge and skills to realise this potential. We work with the African Development Bank at the highest levels to ensure that investors face no constraints in doing business,” Osinbajo said.

    The Bank is committed to developing SAPZs quickly in line with its Feed Africa Strategy – which aims to turn the massive natural endowment of the sector into competitive advantages that create wealth and sustainable agribusiness jobs for African youth. The strategy will also guarantee food security and inclusive growth by involving more women and youth, and promoting improved resilience to climate variability and shocks.

    The SAPZ is a model that requires the full commitment of all levels of government and for this reason the federal and state governments are actively involved in the planning and implementation of the programme”. Professor Oyelaran-Oyeyinka noted that, “due to the significant financial requirements, private resources will be critical”.

    SAPZs will radically transform Africa’s agriculture into a business-oriented and commercially viable sector that guarantees food self-sufficiency and puts an end to food insecurity, malnutrition and other related challenges.

    Members of the consortium had meetings, on 7 August, with state governors at the Nigerian Governors’ Forum.

  • Nigeria’s, others’ debts still under control, says AfDB

    The African Development Bank (AfDB) at the weekend said despite the challenges, Nigeria’s and other African countries debts are still under control.

    Nigeria’s debt profile stands at N23trillion, but the bank,  in its West Africa Economic Outlook 2019, said the servicing of the country’s external debt took about 50 per cent of the country’s revenue.

    AfDB’s Director of Service Delivery, Performance Management and Results, Simon Mizrahi, said Africa’s debt has increased in recent years “but not to unsustainable levels.”

    He however called for caution, saying: “We need to continue to generate financing and spur growth without increasing debt.”

    Sharing insights on Africa’s path forward, Mizrahi underscored the need to harness the continent’s incredible potential in renewable energy.

    ‘’Africa is the most vulnerable continent and suffers the most from climate change.

    “With the right vision, investments and political commitments, Africa can lead a global energy revolution and leapfrog to renewable technologies.  This is why the bank is putting its money where its mouth is and investing more than any other development b ank in helping the continent transition towards more resilient and sustainable economies,” he said.

    The bank’s Group Treasurer, Hassatou Diop N’sele, said the continent, however, remained strong with growing operating revenues with allocable income generated since 2010 reaching $2.5 billion.

    Last year, the bank earned $214 million in allocable income, 48 per cent of which has been reinvested in the institution to reinforce reserves and its business growth capacity. The bullish numbers were revealed during the AfDB’s financial presentation as part of highlights of the 2019 Annual Meetings of the Bank underway in Malabo, Equatorial Guinea.

    During the presentation attended by delegates, governors, executive directors and AfDB workers, N’Sele said the bank could chart a new path on account of its ability to raise funds on the capital markets. “The amount of infrastructure financing covered by private sector could double if African countries harness the full potential of their capital markets,” N’Sele said.

    N’sele said many African countries could save as much $1 billion on a 20-year loan, if they borrow from the AfDB, instead of from the Eurobond market, due to preferable lending rates.

    Delegates were informed of the bank’s successful issuance of the first-ever NOK social bond sold in Norway and sealed last year.

    According to Mizrahi, the African Continental Free Trade Area (AfCTA) paves way to the world’s largest free trade area with an integrated market of 1.3 billion consumers.

    “This is important because Africa will struggle to be competitive at the global scale, if it continues to operate as 54 fragmented economies. The continent needs to be more integrated, it needs larger economic spaces so that Africa can attract more investors, create more and better jobs, boost internal trade and create continent-wide value chains that are globally competitive,” Mizrahi said.

    N’sele expressed the bank’s appreciation for Canada’s unwavering support to the institution with the recently-announced $1.1 billion callable capital.

  • ‘Fed Govt in talks with AfDB on $500m Innovation fund’

    VICE President Yemi Osinbajo has said the Federal Government is holding talks with the African Development Bank (AfDB) to establish a $500million Innovation Fund to boost entrepreneurship.

    He disclosed this at the TechMoney Africa summit, which held during the week at the University of Lagos (UNILAG).

    The VP, represented by Special Adviser to the President on Economic Matters, Ambassador Adeyemi Dipeolu, said innovation and entrepreneurship are vital to economic growth, which requires government’s support.

    “It is essential to ensure that there is adequate and affordable finance for the digital sector, especially for start-ups.  The Federal Government is holding discussions with the African Development Bank on the establishment of a $500million Innovation Fund to support innovation and entrepreneurship, especially in technology focused small and medium enterprises,” he said.

    He added: “In addition to attracting co-funding, we expect that the innovation fund will crowd-in additional resources into the sector from venture capitalists and angel investors. Techpoint Africa’s Nigerian Startup Funding Report states that Nigerian start-ups raised $178million in 166 deals last year. The report also found that more than 90 investors (individuals and institutions) participated in the investment landscape in Nigeria.The financing support for technology solutions in Africa in the coming years must continue to increase, and the focus must be on sustainable, long term and patient finance that gives the time, support and focus that is required for these companies to thrive.’’

    Unicorn Group Chairman Mr Kola Abiola said at the opening ceremony that the event was aimed at inspiring and educating Africans, adding that it would showcase their talents and start-ups.

    He said unlocking the entrepreneurship potential of youths was important as it would to creation of jobs for them. Henceforth, he said, the summit, which ended yesterday, would be held yearly.

    UNILAG Vice Chancellor Prof Toyin Ogundipe said the event aligned with the institution’s vision to train the students to compete in the global scene. adding that it is committed to promoting student entrepreneurship.  He reiterated that UNILAG would continue to give direction in the areas of innovation and entrepreneurship.

     

  • AfDB approves $15m equity fund for SMEs

    The Board of Directors of the African Development Bank has approved a $15 million equity investment in Verod Capital Growth Fund III, a private equity fund that will make investments in high growth middle market companies in Anglophone West Africa including Nigeria, Ghana, Liberia, Sierra Leone and the Gambia.

    The Fund’s investments will be in companies in consumer driven sectors including light industrials, fast moving consumer goods, education, financial services and agro processing. The ticket size for each investment will be between $ 5 million and $20 million.

    “The Fund will help accelerate investments in small and medium scale enterprises (SMEs) in the West African region. This is key to job and wealth creation, knowledge transfer and scaling up of local businesses,” said Abdu Mukhtar, the African Development Bank’s Director of Industrial and Trade Development. He also added: “The Fund will provide an important vehicle to growing SMEs in Africa, which are a key pillar to the continent’s industrialization drive”.

    The Fund Manager, Verod Capital Partners, is an experienced indigenous private equity firm with extensive knowledge of the Anglophone West Africa market. It also possesses a strong record of accomplishment in SME investments. Since 2008, Verod Capital Partners has invested in 16 SME companies in the region.

  • AfDB okays $200m for Nigeria’s electrification project

    The African Development Bank Group (AfDB) has approved $200million to boost Nigeria’s electrification project, particularly the off-grid expansion being implemented by the Rural Electrification Agency (REA).

    A source in the bank, who did not want his name in print because he was not authorised to speak, said the project is expected to provide electricity to households, medium, small and micro enterprises (MSMEs) and public institutions in a least-cost and timely manner.

    According to him, the project has four components which include solar hybrid mini grids for rural economic development, stand-alone solar systems for homes and enterprises, energising education as well as technical assistance.

    The proposed project, he said, will support the Federal Government’s aim of increasing electricity access as defined in the national development agenda, adding that in order to meet the government’s targets, the country will have to embrace both on-grid and off-grid expansion.

    Beneficiaries of the project include households, MSMEs, students, faculty workers and patients at Federal universities and teaching hospitals throughout the country.

    The AfDB, the source, is also supporting some independent power projects (IPPs), which are in the pipeline, but is most concerned with proving finance or guarantee instrument to off-grid power projects.

    The source said: “We also have some gas related projects we are looking at financing. We know that in the power sector we need gas as feed stock and we know companies that have interest in bringing gas to the market. Then we are looking at financing them to ensure that they are able to bring that gas to the market to the advantage of the electricity sector and others sectors.

    “The Nigerian electrification project is soon going to be launched. We have already started preparatory activities on the solar projects. We are in discussions with the Nigerian Bulk Electricity Trading (NBET), so once these discussions are completed, may be by the end of the year and the financing structure is put in place, we can start construction as early as next year.

    “Of course, a lot of projects in the power sector have long gestation period, so even if you give them money now, in the next six months, they cannot finish the projects. There is a time lag that will be experienced in these projects.”

    Meanwhile, the source added that part of the reasons the generation companies (GenCos) were not getting their payments from the NBET was because customers were not paying for their electricity bills as they should. He absolved NBET from all blames. He, however, admitted that the GenCos were being owed huge sums of money by the NBET in terms of the purchasing agreements.

    “It’s not the job of NBET to go to consumers’ houses and start telling them to stop bypassing meters, that’s the job of the distribution companies (DisCos).

    “The DisCos are responsible for installing your meter and making sure they collect the money from you and when they collect the money they now pay to NBET.

    “But if the DisCos don’t collect the money from you, what are they going to give to NBET? And even if they collect the money assuming you owe them a certain amount and they decided to give only part of it to NBET, it is still the DisCos that should be held responsible,” he said.

    To him, NBET is not structured to go and start collecting money on the streets, adding that they have the plan to give invoice to the DisCos including Ikeja, Eko and Abuja to pay.

    “One or two people out there whether they are relatives or friends are bypassing their meters, so if someone is bypassing his/her meter, that means that he or she is consuming power that was sent from the GenCos, but nobody is paying for that power. “

  • AfDB, Fidelity Bank seal $15.35b deal to fund MSMEs

    The African Development Bank (AfDB) has extended a $50 million (about N15.35 billion) facility to Fidelity Bank Plc for the growth of Micro Small and Medium Enterprises (MSMEs).

    The facility is designed to boost the bank’s capacity to promote the growth of the MSMEs segment of the economy.

    At the agreement-signing yesterday in Abuja, it was revealed that the facility will be dedicated to financing the MSMEs and a minimum of 30 per cent of the entire financial package “will be devoted to wholly women-owned enterprises.”

    AfDB Senior Director/Country Representative Ebrima Faal, who signed on behalf of the multilateral institution, said the AfDB was excited with Fidelity Bank’s partnership.

    He noted: “The lines of credit tended to be general support for SMEs. This one has strong emphasis on gender. It can be considered as a vanguard credit for us. Our main focus is to reach out to SMEs to give the much needed impact.”

    He urged the bank “to ensure that the requirement for loan disbursement is okay to enable it reach out to the target audience.”

    Faal added that the $50 million credit line would contribute to strengthening Fidelity Bank’s presence in its key market segments.

    “AfDB”, he said, “believes the selection of Fidelity bank for the seven-year credit facility, with a two-year moratorium, is based on its strong presence in the MSMEs.”

    Fidelity Bank’s Deputy Managing Director, Mohammed Balarabe, who signed for his bank, stated that the line of credit granted to his bank is “particularly unique because gender has been brought in mainly because 30 per cent of this loan is to be targeted at MSMEs that are driven by women. So, that makes it unique.”

    Speaking to the issue of how Fidelity bank will select the businesses that will benefit from the 30 per cent facility set aside for women, Balarabe said: “They have to be run by women. Most importantly, it is aimed at businesses at that low level so that they can catalyse development in the country.

    “The MSME sector remains the most active in terms of generating employment and fostering development which is why Fidelity Bank has consistent targeted that segment.

    “That is why the AfDB has found us fitting to be one of the bank’s that will be benefiting for onward lending to MSMEs. When it is absolutely necessary, Fidelity extends a line of credit to such businesses at cheap rates, which are far lower than market rates.”

    The $50 million AfDB facility will enhance Fidelity Bank’s liquidity and help it meet the demand for medium-term funding to players in the MSMEs segment.

     

  • UN, AfDB chiefs seek Africa’s economic growth

    Development impact on the continent and security in the Sahel topped discussions at a recent meeting between United Nations Secretary-General António Guterres and African Development Bank (AfDB) President Akinwumi Adesina in New York.

    Both leaders emphasised the need for deeper collaboration between their institutions to achieve the Sustainable Development Goals (SDGs). Specifically, Guterres signaled his strong support for the African development.

    The bank’s flagship Desert to Power’ initiative is expected to provide electricity to 250 million people. He offered to convene a special global meeting on Lake Chad, in consultation with President Muhammadu Buhari.

    The ‘Desert to Power’ programme, a $10 billion initiative to build a 10 GW solar zone across the Sahel –the largest in the world – aims to develop and provide 10 GW of solar energy by 2025 and supply 250 million people with green electricity, including in some of the world’s poorest countries.

    According to Adesina, “Secretary-General Guterres and I had a highly productive engagement and committed to enhance strategic and operational partnerships between the UN and the African Development Bank. I am encouraged by the Secretary-General’s generous support for the bank’s development initiatives, which we are certain, will bear fruit across the continent.”

    The two heads of institutions met following Adesina’s trip to the United States for the World Bank’s annual Spring meetings in Washington DC.

    Adesina also briefed the Secretary-General about ongoing discussions on the bank’s General Capital Increase (GCI-7), designed to address Africa’s growing lending demands. The Secretary-General committed to advocate “for the mobilisation of adequate resources in order to further the bank’s development goals”.

    Guterres and Adesina also discussed the bank’s inaugural Africa Investment Forum held last year in Johannesburg, South Africa, where projects worth $38.7 billion secured investment interest.

    The Secretary-General accepted the Adesina’s invitation to participate in this year’s edition of the event, to be held in November in South Africa.