The Nation Newspaper

Tag: Africa

  • India’s growth to have impact on Africa next year

    With just days to go for the year to end, a new study has projected a steady growth in India, which from every indication is likely to have some impact on its dealings with Africa which is also being seen as a growth zone next year.

    The Standard Chartered Bank’s Global Research team has projected India to be “a positive surprise” compared to the situation in other parts of the globe.

    “More importantly, sentiment is also rising sharply due to changes made by the new government to reduce red tape and promote investment,” the team said.

    Former Federation of India Chambers of Commerce and Industry (Ficci) president R.V. Kanoria said earlier this year that the Indian government has been proactive in its commitment to encourage investment in Africa.

    “Indian investments in Africa have increased 14-fold in the past year and we are hoping that by next year it will rise to $100 billion,” he said.

    In addition to investment, India has also been active in capacity building and knowledge sharing, particularly in the area of private public participation (PPP) across the continent.

    Indian officials say, the public sector in India has partnered with the private sector to bridge the infrastructure gap resulting in 50 percent private investment.

    With more than a 1,000 PPP projects, India is said to have perfected the PPP model, which could arguably provide a solution to Africa’s infrastructural deficit.

    Emmanuel Mbi Ahas, African Development Bank’s (AfDB) first vice-president and chief operating officer, expressed Africa’s desire to learn from India and the AfDB’s will to support such efforts.

    India’s success story in the implementation of the PPP model makes it an important partner in facilitating its adoption in Africa. Analysts at the AfDB say India is one of the developing countries to have successfully received a large-scale investment to the tune of $300 billion in infrastructure under the PPP model.

    According to them, the Indian government has signed a memorandum of understanding (MoU) with the African Development Bank Group to share the model agreements and legal documents associated with PPPs to facilitate implementation of this model in African countries. This gives some hope for the continent in the coming year.

  • Africa’s first digital lifestyle store debuts in Nigeria

    Nigeria’s growing online retail market has received a boost with the launch of Kumoodi.com, Africa’s first digital lifestyle online store.

    Founder and Chief Client Officer, Kumoodi.com, Mr. Oye Onwuka, said as part of delivering real time solutions, kumoodi.com is in partnership with eTranzact International, one of Nigeria’s payment solutions providers.

    According to him, idea behind kumoodi.com is to offer an entertainment platform, where one can download music, movies, eBooks, eMagazines and digital art or stream over the internet on mobile devices while on the go.

    The platform, he added, also offers convenience and simplicity to meet such needs as airtime topup, payment for essential lifestyle services as cable TV subscription, energy tokens to recharge prepaid meters and funds transfer to most of the banks in Nigeria.

    According to him, “Kumoodi.com also offers Live Video Streaming services, which redefines how we watch videos on the go. With this service, our esteemed users can watch any event from anywhere in the world. The link to the platform is www.kumoodi.com.

    “kumoodi.com will redefine how we do the simple everyday things in this digital world we now live in. As part of delivering real time solutions, kumoodi.com is in partnership with eTranzact International, one of Nigeria’s payment solutions provider, “Onwuka said.

    He added that the platform will only promote and distribute African contents, from music, movies to books and magazines, as there is a huge demand which it plans to dominate as the only one in the market with such focus.

  • Africa’s trade value hits $110b, says AfDB

    The Africa Development Bank (AfDB) has said the share of intra-African trade accounts for 11 per cent ($110 billion) of the value of total African trade.

    The Trade Finance in Africa released by the bank at the weekend, explained that given the estimated rejection rates of trade finance applications, the conservative estimate for the value of unmet demand for bank-intermediated trade finance is between $110 billion and $120 billion, significantly higher than estimated earlier figures of about $25 billion. These figures, it said, suggest that the market is significantly underserved.

    It said African banks face numerous constraints in meeting the demand for trade finance.

    It said: “The survey reveals that the main constraints are limited dollar availability (by far the dominant currency in international trade, and by extension, trade finance) and insufficient limits with confirming banks for confirming letters of credit. Other constraints include small balance sheets, which tends to make single obligor limits frequently binding. These constraints also suggest that the AfDB’s trade finance program, as well as those implemented by other international financial institutions, are needed and well suited to relaxing some of the most binding constraints.”

    It however, insisted that the outlook of banks for trade finance remains positive, with 72 per cent expecting to increase their trade finance activities in the immediate future.

    “However, banks foresee obstacles to their trade finance portfolio growth such as low US dollar liquidity, regulation compliance, slow economic growth in some markets, and the inability to assess the credit-worthiness of potential borrowers,” it said.

    Also, the AfDB Board has approved $1-billion trade finance (TF) programme to support African trade and provide financing to underserved African-based financial institutions and enterprises.

    The African lender said despite its importance, there is a great deal it never knew about the trade finance market in the continent.

    This includes the size of the market, the variations across sub-regions, the scale of financing gap, the trade finance devoted to intra-African trade, the relative importance of on-balance sheet versus off-balance sheet financing, and constraints faced by banks.

    “It is based on a unique survey of the trade finance activities performed by commercial banks in Africa in 2011 and 2012. Our survey questionnaire was sent to approximately 900 banks on the continent. We received a high response rate, resulting in a dataset that covers 276 banks across 45 countries.

    distributed across sub-regions as the average trade finance assets per bank in Northern Africa dwarfs those of the other sub-regions. The share of bank-intermediated trade finance that is devoted to intra-African trade is limited, and comprises approximately 18 per cent ($68 billion) of the total trade finance assets of African banks,” it said.

  • Scouting for Africa

    Scouting for Africa

    VOGUE Talents, in collaboration with International Business Consortium Nigeria limited, organizers of Africa’s biggest model search and owners of ECOWAS Fashion Week, and Africa International Fashion Week in partnership with Studio 24 launched “Scouting for Africa” sponsored by Access Bank PLC Nigeria and Baileys.

    This is a new international scouting project aimed at emerging women’s wear, men’s wear and accessories designed by African designers and non-African designers based in Africa.

    The profiles of the best designers will appear in Vogue Italia in 2015. One of the selected designers will have the opportunity of presenting their garments and accessories within the marvellous setting of Palazzo Morando in Milan, a showcase of international scouting, in September 2015. During this special event, the chosen designers will be able to show their collections to journalists, buyers and designers.

    The designers, who will be picked, will feature at Africa International Fashion Week with an award night by Baileys targeting women who have made their mark in the African fashion industry.

  • Airtel launches first 4G service in Africa

    Bharti Airtel has  launched Africa’s first 4G service in the Seychelles.

    This makes the Seychelles among the first countries in sub-Saharan Africa to commercially deploy this cutting-edge technology.

    Airtel is leading global telecom services provider with operations in 20 countries across Asia and Africa.

    This is Airtel’s first commercial LTE network in Africa.The infrastructure is a new, nationwide LTE (Long Term Evolution) 800 MHz network, which will more than meet the growing customer demand for mobile broadband services, whilst delivering superior network performance. The network is expected to cover 10,000 LTE subscribers in the first phase and will greatly enhance connectivity giving Airtel’s customers an improved smartphone experience, with faster web browsing, downloads and improved quality of service. Airtel’s 4G (FD-LTE) network was launched by His Excellency Mr. Danny Fure, Vice President, government of Seychelles.

    The Vice President said: “The deployment of the next generation mobile network across the Seychelles will enable an enhanced mobile experience and reliable services; and will facilitate new and exciting opportunities for businesses, the society and the people in the country.”

    Mr. Christian de Faria, Airtel Africa’s CEO, said: “Today’s launch is a major milestone for Seychelles and Airtel in Africa.

    “We already have Africa’s widest 3G footprint, being present in 17 countries. We are delighted to now provide leadership in setting the technology standard for 4G services in Africa by rolling out this cutting edge LTE network. I would like to thank the team involved in helping fulfill this achievement.”

    Airtel Seychelles Managing Director, Amadou Mahamat Dina, said: “Besides offering rich content, Airtel’s 4G will allow superfast access to High Definition (HD) video streaming, multiple chatting, instant uploading of photos and much more.”

  • Infrastructure deficit threatens Africa

    Infrastructure deficit threatens Africa

    Economist and former Chairman of Goldman Sachs Asset Management, Jim O’Neill, has said Africa needs to bridge the infrastructure investment deficit in the continent.

    He spoke during the African Finance Corporation (AFC) conference on infrastructure held in Lagos.

    O’Neill said infrastructure in general has been estimated to have the potential to add an average of two per cent to Africa’s economic growth rate over the next decade as investment is brought to bear to bridge the deficit.

    He said Africa’s future depends on its policy makers doing the right thing. “That is working to create better governance, reducing crime, fighting corruption and delivering improved infrastructure. Infrastructure development is both a defining challenge and a standout investment opportunity for Africa and investors around the world,” he said.

    He said Nigeria is growing at seven per cent despite poor access to power; decent power could boost economic growth to 10 to 12 per cent adding that there is no reason why the country should not become one of the G20.

    The conference attracted more than 500 leading thinkers from government, academia, business and finance, fuelled energetic debate on both the opportunities and the challenges of the African infrastructure landscape.

  • Africa’s GDP to exceed $2.6tr by 2020, says Visa chief

    Country Manager for Visa in West Africa Ade Ashaye has said Africa’s Gross Domestic Product (GDP) of over $1.9 trillion is expected to exceed $2.6 trillion by 2020.

    He said it was expected that buoyant economic growth would continue for the foreseeable future, adding that it is likely that the African economy will achieve a growth rate approaching 5.5 per cent this year.

    Ashaye, who spoke after the release of its second annual Visa Africa Integration Index, said the report measures the degree of economic integration within key trade corridors of sub-Saharan Africa, namely West Africa, East Africa and Southern Africa.

    The purpose of the Index, he said, was to better understand and to help facilitate economic growth from greater cross-border interaction and economic openness. Together with its partners, Visa touches 500 million people in Africa.

    He said: “Since the launch of the Visa Africa Integration Index in 2013, the African economy has extended its best period of economic growth on record by delivering growth of 4.8 per cent in 2013. Our objective was to construct an index for a number of selected sub-Saharan African countries to measure their global and regional integration.”

    The Index, he said, was built from country-level macroeconomic data, and a wealth of proprietary data drawn from Visa in sub-Saharan Africa, that sum to more than four million observations measured across 19 elements.

    The final output are economic integration scores at the country and regional levels measured on a semi-annual basis for 2011-2013 period. “We want to better understand Africa to help unleash the enormous growth potential in electronic payments on the continent, now the heart of the developing world,” he said.

     

  • Sobanjo is Africa’s Most Influential Personality in Advert

    Advertising czar, Mr. Biodun Sobanjo, has been presented with the Most Influential Personality in Advertising in Africa Award.

    The event held at the Third African Development (ADM) Award of Excellence in Development (Ghana 2014) at Novotel Hotel, Accra, Ghana.

    According to Ayo Ilesanmi, Chief Executive Officer, Playhorse Communications Limited, publishers of the ADM Magazine, the awards’ organisers highlighted that Sobanjo was counted worthy of the award ‘in appreciation of his contributions to the advertising industry in Africa.’

    According to Ilesanmi, it has become necessary for African leaders to refocus on the continent so as not to reinforce the stronghold of neocolonialists that emphasise on minor divisive tendencies to milk Africa. “There is no better time for business leaders of African origin to position to harness the economic strengths of domestic economies of the nation states of Africa. No one else is going to develop Africa but Africans,’’ he said.

    He explained that acknowledging giant strides of illustrious sons and daughters of Africa was ADM’s small way of thanking those who have demonstrated faith in developing Africa by investing their God-given resources in the hope that it gingers both present and coming generations to walk in the steps of worthy leaders.

    “We hope to grow the awards to motivate Africans so that people can aspire to earning it through diligence and honesty in the coming years. That way, worthy leaders become role models and inspiration for African development,”said Ilesanmi.

    The award was chaired by Ing Robert Wood, chairman of Fateco Limited, Ghana.

    The next edition of the awards is billed for Nairobi, Kenya.

  • ‘Agric revolution in Africa could increase global carbon emissions’

    Productivity-boosting agricultural innovations in Africa could lead to an increase in global deforestation rates and carbon emissions, a Purdue University study finds.

    Historically, improvements in agricultural technology have conserved land and decreased carbon emissions at the global level: Gaining better yields in one area lessens the need to clear other areas for crops, sidestepping a land conversion process that can significantly raise the amount of carbon dioxide released into the atmosphere.

    Agricultural advances in Africa, however, could have the reverse effect, increasing globally the amount of undeveloped land converted to cropland and raising greenhouse gas emissions, said Thomas Hertel, a distinguished professor of agricultural economics.

    “Increasing productivity in Africa – a carbon-rich region with low agricultural yields – could have negative effects on the environment, especially if agricultural markets are highly integrated,” he said. “This study highlights the importance of understanding the interplay between globalization and the environmental impacts of agricultural technology. They are deeply intertwined.”

    Debate surrounds the effects of agricultural innovation on the environment, Hertel noted. Some researchers suggest that increasing the profitability of farming will amplify its negative environmental effects, raising greenhouse gas emissions and accelerating tropical deforestation. Others argue that intensifying agricultural production is better for the environment overall because more land can be spared for nature if the same amount of crops can be produced using less land.

    “We set out to determine who was right,” Hertel said.

  • Ecobank, Africa SME Champions partner

    The Ecobank Group and the Africa SME Champions Forum have partnered other co-organisers like the African Guarantee Fund and AfricSearch to ensure a successful hosting of over 300 Small and Medium Enterprises (SME) in Dakar, Senegal.

    The meeting was an avenue for over 300 ambitious SME companies in Africa who are interested in growing their businesses.

    The forum which the bank said creates an opportunity to identify Africa’s next great success stories, is the first direct access platform to finance for the SMEs. It is also providing them the opportunities to enjoy master classes, customised consultancy service that brings together high-quality experts and a mentoring programme.

    According to the organisers, the idea of the SME forum is to bring together at a single location an entire range of tools, networks and services dedicated to SMEs to allow them to put in place, on their return, the methods shared by the community of the Africa SME Champions Forum.

    Deputy Managing Director, Ecobank Nigeria Tony Okpanachi said the inaccessibility of finance is a major obstacle to small business growth and development, with only 20 per cent of African SMEs receiving a credit line from financial institutions.

    He emphasised that “this forum aims to assist viable SMEs by providing them opportunity for easy financing. The partnership reaffirms Ecobank’s commitment to support small and medium-sized businesses and further enable the SME sector play a critical role in the socio-economic development of Africa.