Africa Oil & Power (AOP) is outraged by the violent attacks on foreign nationals living in South Africa. As government adopts measures to ensure safety for all, AOP calls for violence to come to an end; As of Monday, the South African Police has made 639 arrests related to the xenophobic attacks in South Africa; South Africa’s President Cyril Ramaphosa says there is no justification for the attacks and calls on ministers and the police service to find solutions to address the violence.

Africa Oil & Power (AOP) and its partners strongly condemn the violent attacks on foreign nationals living in South Africa which have resulted in businesses being looted and at least 12 lives claimed. In addressing the issue with determination to eliminate it, the government of South Africa has implemented safety and security action plans all over the country and aims to put an end to the xenophobic attacks.

Africa Oil & Power’s business is rooted in the promotion of African cooperation and unity. Through our conferences all over the continent and beyond, we have aimed to tell Africa’s energy and investment story in a way that is beneficial to Africa’s people first. However, a positive end goal can only be achieved if we embrace one another and work together.

“AOP stands firmly against the violence on foreign nationals that has erupted in South Africa in recent weeks. We are pleased that the government has taken affirmative action against the xenophobic attacks which has already shown positive results,” said Guillaume Doane, CEO of Africa Oil & Power.

“This is a time for South Africa to look back at its democratic breakthrough in 1994 in which the support of other African countries was critical in it achieving its freedom. The country is where it is today in large part because of the generosity and kindness of its neighbouring countries,” he said.

Raising concern and denouncing the surge of violence, CEO of Centurion Law Group and Executive Chairman of the African Energy Chamber NJ Ayuk said: “Most people, particularly most Africans, are familiar with this situation. The question is, then, what is to be done to end disproportionate violence and economic stagnation? Businesses are leaving and investors are not investing. The blame game is not going to work. We must own up to it, find solutions and fix it. This is not the Africa we are working for.”

Cautioning the vicious cycle that is bound to occur should the violence not be addressed with immediate action, he added that: “Many have given up on a solution and the hardliners on both sides are winning. This is going to underpin a vicious cycle, high rates of violent crimes, more poverty and killings. Words must become deeds that meet needs. We owe it to a lot of good people who are trapped.”

Last week Thursday, South African Police spokesperson Lungelo Dlamini said there had been a “dramatic decline in public violence and looting” in Gauteng – where the violent attacks initially began – after 289 people had been arrested.

Many South Africans and global leaders have called on the country to take immediate action in ending the violence. In response, President Cyril Ramaphosa, in an official statement endorsed on Twitter by Minister of Mineral Resources and Energy Gwede Mantashe said: “The people of our country want to live in harmony. Whatever concerns or grievances we may have, we need to handle them in a democratic way. There can be no justification for any South African to attack people from other countries.”

“I condemn the violence that has been spreading around a number of our provinces in the strongest terms. I’m convening the ministers in the security cluster today to make sure that we keep a close eye on these acts of wanton violence and find ways of stopping them.”

Read the rest of the article here: https://www.commodity-port.com/africa-oil-power-and-south-africa-partners-condemn-attacks-on-foreign-nationals/

Natural gas can help Africa bring power to the people. It just has to be harnessed appropriately and not wasted or exported.

That is the premise of Chapter 5 of Billions at Play: The Future of African Energy, the new book by leading African energy attorney, NJ Ayuk. And it is a message that Jeff Goodrich, former CEO of OneLNG, supports.

OneLNG was a joint venture between liquified natural gas (LNG) shipping company, Golar LNG, and Schlumberger, the global oilfield services giant. While financing issues hampered OneLNG’s attempts to develop Africa’s first deep-water floating liquid natural gas (FLING) project with London-based Ophir Energy, the project principals, including Goodrich, recognized LNG’s potential to monetize Africa’s offshore natural gas reserves.

“In the chapter entitled Abundant, Accessible, Affordable: The “Golden Age” of Natural Gas Shines in Africa, Ayuk correctly identifies the benefits of natural gas, especially as the world looks for ways to lower CO2 emissions,” Goodrich said. “He also takes aim at some of the issues the African natural gas industry has to confront, namely flaring and the export of product that could be well-used at home.”

Despite advances in electrification, much of Africa is still plunged into darkness each evening. Using natural gas as a reliable source to generate electricity would change that. It would also reduce the reliance on sources like animal dung for cooking—a method that is linked to respiratory diseases.

“It is incredible to think that in this day and age, there are nearly a billion people in sub-Saharan Africa without access to electricity, but that is a reality Ayuk does not shy away from,” Goodrich said. “Rather than running from the problem, he puts forth a number of realistic solutions that anyone who cares about making Africa more self-sufficient will be eager to hear. I think his ideas will resonate especially with readers who agree with Ayuk that an oversaturated global export market makes this the best time to advance intra-African energy trading and focus on regional markets.”

NJ Ayuk is founder and CEO of Pan-African corporate law conglomerate, Centurion Law Group (https://CenturionLG.com) and Executive Chairman of the African Energy Chamber (https://EnergyChamber.org). He is also the co-author of Big Barrels: African Oil and Gas and the Quest for Prosperity (2017).

He is recognized as one of the foremost figures in African business today.

https://www.commodity-port.com/energy-exec-says-new-book-billions-at-play-provides-solutions-for-african-energy-self-sufficiency/

The United Kingdom has set up another funding window to improve electricity access to Nigerians and 14 other African countries, especially vulnerable rural communities and marginalised groups, using clean off-grid solar electricity.

Expected to last for the next four years and funded by the UK Department for International Development (DFID), the programme – Africa Clean Energy Technical Assistance Facility (ACE-TAF) was recently launched in Nigeria to catalyse the country’s solar market and enhance access to stand-alone solar among these vulnerable groups.

According to a statement from the ACE-TAF, the programme launch brought together 45 stakeholders from across the energy sector in Nigeria the country.

It stated that in attendance were government representatives from the federal ministries of power, finance, women, youth, and environment, as well as representatives from the Energy Commission of Nigeria (ECN) as well as the Central Bank of Nigeria (CBN).

According to the statement, there were also representatives from the off-grid renewable energy industry including donor and development partners, industry associations, investors and financiers, market accelerators and support organisations, and solar companies, adding that the launch came at a time when the Nigerian government embraced off-grid solutions as part of the country’s energy mix to provide reliable energy access for millions of Nigerians.

The statement noted that the ACETAF was designed to follow up on the UK government’s commitments in the DFID Energy Africa Compacts.

It added that the programme would catalyse a market-based approach for private sector delivery of high-quality stand-alone solar systems in the beneficiary countries, as well as complement government, private sector and donor initiatives to overcome the barriers preventing the development of off-grid solar markets.

This, it said would lead to improved access to modern energy services for vulnerable rural communities and marginalised groups in 14 countries across Sub-Saharan Africa.

“In Nigeria, ACE-TAF aims to complement government, private sector and donor initiatives to overcome many of the barriers preventing the development of markets for high-quality stand-alone solar (SAS) systems.

“The programme will support the Nigerian government’s rural electrification strategy, facilitate the attainment of its renewable energy targets and support policy and regulatory reform leading to increased energy access, especially for marginalised and vulnerable persons and other initiatives to catalyse private markets in clean energy solutions in the country,” the statement explained.

The statement quoted the Team Leader of ACE-TAF, Pauline Githugu, to have said in her remarks at the launch, that the implementation of the programme will be comprehensive.

“Electrification is a right for all. The private sector will work with government in give-and-take to ensure this. We will be working closely with all of you,” Githugu, said.

Similarly, the Assistant Chief Electrical Engineer at the ministry of power, Mr. Temitope Dina, stated that the ministry looked forward to leveraging the country’s burgeoning solar market to drive up energy access in Nigeria.

Dina, said: “The ministry looks forward to partnering with ACE-TAF to enhance the stand-alone solar market and solve the basic energy needs of rural and vulnerable people as it will help in achieving the UN’s Sustainable Development Goal 7 of ensuring access to affordable, reliable, sustainable and modern energy access for all.”

The statement also noted that the programme would work in close partnership with the International Finance Corporation (IFC) and the Africa Enterprise Challenge Fund (AECF).

It thus quoted a representative of the IFC, Mr. Allwell Nwankwo, to have said that: “It is a great time for ACE-TAF to come into Nigeria. The International Finance Corporation (IFC) is one of the forerunners in the renewable energy sector and will be working with ACE-TAF on the adoption of national standards for stand-alone solar solutions in Nigeria.”

https://www.commodity-port.com/nigeria-uk-steps-up-support-for-improved-electricity-in-nigeria-others/

Leaders from across Africa and around the world pledge new action to address the impacts of climate change on food production while revealing the hidden power of African agribusiness

(Accra, Ghana, September 6, 2018)– A $500 million commitment to developing agriculture opportunities for young Africans, a “Deal Room” that delivered some $200 million in new investments, billions to support digital infrastructure crucial for powering innovative farmer services, significant actions on climate change adaptation, and the launch of a major food trade coalition:

Read more: https://www.commodity-port.com/africas-premiere-agriculture-forum-secures-500-million-for-young-agripreneurs/

The MoU was signed by HE Josefa Leonel Correia Sacko, African Union Commissioner for Rural Economy and Agriculture, OCP Group’s Chairman and CEO, Mr Mostafa Terrab, and HE Dr Ibrahim Assane Mayaki, CEO of the AUDA-NEPAD, represented by Dr Hamady Diop, on the sidelines of the ongoing African Green Revolution Forum (AGRF) from 3 – 6 September 2019 in Accra, Republic of Ghana.

The partnership demonstrates a shared commitment to deepen collaboration with all actors, including the African private sector to reduce jointly hunger and poverty through the sustainable transformation of the agricultural sector on the continent.

OCP Group contributes to the African agricultural ecosystem through support to African farmers and targeted private and public African actors and stakeholder. The Group supports innovative mechanisms aimed at creating resilient and sustainable agricultural productivity to enable Africa to reach its full agricultural potential while protecting its natural environment.

This partnership is intended to facilitate effective coordination of the implementation and delivery of a set of goals as outlined in the African Union Malabo Business Plan on Agriculture Transformation which aims to increase productivity and catalyse private sector investment. As such, the parties aim to promote the use of agricultural inputs, including access to customised fertilizer to the soil and crops of each region, and to develop the efficiency of the fertilizer whole value chain by working on corridors approach.

The agreement will, therefore, be operationalised by strengthening a conducive environment for private sector investment in agriculture; equipping African Union member states with the right policies and tools to support the achievement of the Abuja commitments on fertilizer use; strengthening efficient and sustainable use for smallholders to increase the sector’s productivity and promote inclusive growth; as well as strengthening national and regional agricultural policies aimed at boosting the adoption of good agricultural practices and innovations.

The Comprehensive African Agricultural Development Programme (CAADP) of the African Union monitored by the AUDA-NEPAD, is one of the continental frameworks under Agenda 2063 and it aims to help African countries eliminate hunger and reduce poverty by raising economic growth through agriculture-led development as well as promote increased national budget provision to the agriculture sector.

A smallholder farmer and an agricultural entrepreneur were jointly awarded the Africa Food Prize Wednesday at the African Green Revolution Forum in Ghana.

Dr. Emma Naluyima from Uganda and Baba Dioum from Senegal were chosen “for their remarkable achievements in demonstrating and promoting innovative and sustainable growth in Africa’s agriculture through improved resource use and market links,” according to a release from the prize committee. They share a $100,000 prize.

Trained as a veterinarian, Naluyima has a one-acre farm that uses a “closed-loop” approach to agriculture. The farm is divided into quarters, between pig, cattle, fish, and vegetable farming. Naluyima uses their waste products for feed, fertilizer, and pesticide. For example, pig waste is used to fertilize the vegetables, and the maggots from the waste are used to feed the fish and chicken. The cattle waste is used to create biogas to provide energy for her farm. She claims to generate about $100,000 per year from the products and livestock she sells from her farm.

Each year, Naluyima educates about 10,000 people who visit her farm on her techniques. She also founded a primary school with about 300 students that integrate agriculture into the curriculum.

“What Emma is doing, is incredibly profound,” Strive Masiyiwa, CEO at Econet Group, said during a press conference in Accra on Wednesday, where the winners were announced. “Don’t say you have nothing. Emma only has one acre — and today she has won Africa’s greatest food prize.”

The other winner, Dioum, has been the coordinator general of the Conference of Ministers of Agriculture in West and Central Africa for nearly three decades. He has led key agricultural reforms in Senegal and promoted the cross-border trade of food staples across West and Central Africa. He is also a leading agribusiness operator in the production and export of mangoes to Europe.

“Rather than turn away from the countryside like so many others, [the winners] have embraced farming, using their talents and knowledge to demonstrate its enormous commercial possibilities. In other words, they practice what they preach, and this lends real credibility to their message about the value of technical and policy innovation in agriculture,” said H.E. Olusegun Obasanjo, former president of Nigeria, who chairs the prize committee, in a release.

Africa has about 60% of the world’s uncultivated arable land. But despite the continent’s agricultural potential, it remains a net importer of food because of challenges including connecting smallholder farmers to markets. It is estimated that a fifth of Africans are undernourished.

The winners were chosen from about 200 nominees, with the committee prioritizing efforts to reduce poverty and hunger, increase employment, and the potential for scalability, among other factors.

The prize is awarded by Yara International, ECONET, Corteva, and the Alliance for a Green Revolution in Africa. Last year, it went to the International Institute of Tropical Agriculture.

https://www.commodity-port.com

Agriculture Summit Africa Starts Tomorrow

More than 2000 participants drawn from across Africa will attend Agriculture Summit Africa powered by Sterling Bank in Abuja this week.

The top-level summit which brings together agriculture value chains players, policymakers, investors, development agencies, international finance institutions to unlock Africa’s huge agriculture potential holds from September 5th – 6th.

With 25 confirmed speakers and 200 decision-makers on the line-up, the summit themed “Agriculture – Your Piece of The Trillion-Dollar Economy”, is the largest gathering of leading minds in agriculture, policy and regulation, international trade, finance and infrastructure development on the continent.

Addressing the media on the Summit, Yemi Odubiyi, Executive Director, Corporate and Investment Banking, Sterling Bank, said it will address the issues preventing the very important sector from attaining its potential because food security on the continent has become a critical issue.

Odubiyi disclosed agrarian land are becoming increasingly desolate in the face of climate change and rapid population growth making food security a big challenge.

Referencing Nigeria’s population estimated at 200 million and growing at an annual rate of 3 per cent, the bank chief stated that ensuring food security will be a challenge with annual economic growth rate at less than 3 per cent.

According to Odubiyi, the adoption of technology, quality seedlings, and improved soil fertility will lead to agricultural productivity and Nigerians can export farm produce to other African countries, not just Europe; which is what getting a piece of Africa’s $1 trillion agribusiness economy is all about.

“Working with all other stakeholders, Sterling Bank can help build farming businesses from small land holders to very large, sophisticated operations that help enhance food security in Nigeria and on the continent,” he remarked.

https://www.commodity-port.com/agriculture-summit-africa-starts-tomorrow/

The Digitalisation of African Agriculture Report for 2018-2019 has revealed that Africa generates $127 million with the use of digitisation services for agriculture activities.

The amount will increase to $2.3 billion in the next decade.

Mr Michael Hailu, Director of the Technical Centre for Agricultural and Rural Co-operation (CTA), the Organisation that prepared the report, said about 33 million farmers in Africa had registered with various organisations to access agricultural services including; financial, market access solutions and satellite imagery management.

He said the majority of the farmers registered for extension advisory services and the number would increase to 200 million by 2030.

Mr Hailu made this known at the official media launch of the 2019 African Green Revolution Forum (AGRF) and the Digitisation of African Agriculture Report for 2018-2019 in Accra on Monday.

The four-day forum (September 3-6) will evaluate how far African Continent has progressed in the past decade with agriculture development, discuss policies and programmes that will help attract the needed investments and strategise ways of leveraging on technology as a key driver for agricultural transformation.

It will bring together 2,300 delegates in Africa and across the globe including; Heads of State, Central Bank Governors and captains of industry, as well as development partners, farmer organisations, agripreneurs and other critical stakeholders.

The event will be hosted by the government of Ghana and the Alliance for Green Revolution in Africa (AGRA) being held on the theme: ‘‘Grow Digital: Leveraging Digital Transformation to Drive Sustainable Food Systems’’.

The hosting of the AGRF in Ghana is important because the idea of revolutionising African agriculture was mooted by former United Nations Secretary-General, Mr Kofi Annan, who was also the Founding Chairman of the AGRF, which coincides with one-year anniversary of his passing.

Mr Hailu noted that about 50 per cent of African farmers in a few years’ time would also use artificial intelligence, drones and digital data to enhance agriculture activities to improve productivity and incomes.

He underscored the need for governments, private investors and development partners, to work together to make digitisation of the agricultural sector a game-changer in Africa and stimulate massive transformation.

Mr Hailu called for stringent action by governments to make agriculture gender-inclusive by ensuring that women used technology in farming activities, noting that, only 25 per cent of women used technology in farming and agribusiness, while 70 per cent of young people used technology in agriculture value chain.

The report provided understanding on digitisation usage in six African countries, revenue generated and future prospect, adding that, 200 entrepreneurs were interviewed.

He underlined the need for African governments to make agricultural transformation a priority in the policy agenda in the quest to meet the challenges of food and nutrition insecurity, youth unemployment and overall economic development.

Dr Owusu Afriyie Akoto, Ghana’s Minister of Food and Agriculture, outlined the objectives of the forum including; showcasing Africa’s agricultural transformation efforts and ensuring that it was in accordance with the Malabo Declaration and court political support from African governments and development partners for greater investments and leadership to transform the agricultural sector.

He said the forum would create a platform for agribusinesses and farmer organisations to negotiate with partner organisations that would ensure new deals and partnerships towards increasing investments in the sector.There will be Presidential Summit whereby heads of states will share ideas and discuss various policies and programmes rolled out in their respective countries that are bringing transformation to the agricultural sector and make key commitments to enhance investments in the sector.

The 2019 Food Prize Winner with $100,000 award package would be announced at the forum by an eminent committee chaired by former Nigerian President, Olusegun Obasanjo, which will recognise the contribution of an individual or organisation that had turned agriculture from struggle to survive to a business that thrives.

Dr Agnes Kalibata, President of the Alliance for Green Revolution in Africa, the convenor of the forum, said it would create an opportunity for discussions to ensure that the Continent leveraged on technology/digitisation, including; use of mobile phones, drones and satellite imagery to resolve infrastructure challenges in the agricultural sector in Africa.

More so, the platform would discuss challenges posed by the climate change and evaluate how the African Continent could utilise the creation of the African Continental Free Trade Area (AfCFTA) Agreement to boost trade and development.

She urged the media to play a critical role by educating the populace on the issues that were tabled for discussion and disseminate accurate information about the key outcomes of the forum in order to rally the people towards the implementation of the resolution.

There are more than 250 million farmers in Africa, therefore, the key issues that will emerge from the forum will help the African Continent leapfrog into the next level of food security and create job opportunities for millions of the teeming unemployed youth.

https://www.commodity-port.com/africa-generates-127m-with-use-of-digitisation-services/

The African Energy Chamber has concluded a one-week working visit in Beijing where it met with senior officials from the Chinese government, heads of state-owned energy companies and executives and entrepreneurs from the private sector

During meetings with top Chinese energy companies and financial institutions, the African Energy Chamber discussed the signing of win-win agreements and contracts that will make energy work for Africa while providing Chinese investors with attractive and rewarding opportunities in Africa.

“China’s economic transformation in the last few decades in nothing short of remarkable,” declared Nj Ayuk. “What this country has accomplished is an inspiration for Africa, where nations still need to lift hundreds of millions out of poverty and provide us with sustained economic development for decades. China and Africa share very similar challenges, and the message China is sending us is that if they can do it, so can we.”

As LNG demand is growing by the day in China, Africa stands to play a role. In 2018, China consumed 276.6bn cu/m of natural gas, an increase of 16.6 per cent over 2017. In meetings, the Chamber discussed with Chinese companies the need to invest in gas exploration and the need to also work on African initiatives like LNG2Africa which are a win-win for both Africa and China.

Throughout its meetings, the African Energy Chamber secured more than US$1.4bn in intentions to invest in Africa’s bankable projects in mining, oil and gas, power and renewables. “The biggest encouragement for us is that beyond their investment appetite for Africa, Chinese companies are clear about their intention to invest in the promotion of local content and the building of local manufacturing capacities,” added Nj Ayuk. In addition to upstream oil and gas and mining projects, key infrastructure financing opportunities in refinery and storage facilities were also discussed.

In light of strong Chinese interest for Africa and following demands from its Chinese partners, the Chamber will be hosting the first China-Africa Energy Investment Forum in 2020 in Beijing.

https://www.commodity-port.com/chinese-companies-to-invest-us1-4bn-into-africas-energy-projects/

Agriculture is viewed as the key cornerstone that drives Africa’s economies. It is a major contributor to total gross domestic product (GDP) for many countries, according to the Africa Agriculture Status Report 2018.

Over half of the African population is employed in the sector and the continent has large tracts of arable land including 60 per cent of the world’s uncultivated arable land.

Every African government today is talking about food and nutrition security and employment for its people especially youth and women.

Yet, Africa is still producing too little food for its bourgeoning population to eat. Is the continent really doing everything needed to achieve its aspirations and visions in the agriculture sector?

As the population grows, it is not just food that will be needed but also services such as health and education. Jobs will be even more critical.

Pressure on natural resources will also be felt. For Africa to ensure it is well prepared, it needs a thriving economy and agriculture is right at the center. In fact, Kenya’s government, for example, has singled out food and nutrition security in its Big Four Agenda, to propel the country’s development plan.

As with most development issues, it is not just a question of what needs to be done, it is how. For Africa to achieve desired growth in its agriculture sector and to create jobs for the youth and achieve food security, there is a need to put in place reforms necessary to unlock agriculture’s potential. These reforms include access to land, improvement of infrastructure, enhancement of extension services and farmer education, access to markets and finance and more critically, injection of new technologies.

This means investment and commitment. It means building and committing to agricultural undertakings that will make a difference to economies. Other continents did it, why not Africa? For this to work, Africa needs to view agriculture differently – it needs to expand its view and not just focus on its contribution to food security – which is key but also really a basic expectation – but to look at agriculture holistically – as Africa’s route to economic freedom.

Food security and hunger are at a very basic level of human survival. Other continents are working towards goals that Africa can only imagine e.g use of agricultural robots and drones to monitor plant growth and the health of the crops to increase yields. Africa’s agricultural concerns need to shift gears to go beyond hunger and food security to the sustainability of Africa as a community through growing and sustainable economies. That is what agriculture can do for Africa.

Done right, agriculture can deliver the economic goals, saving the continent billions of forex spent on food imports that could be availed to other efforts such as industrialization that would create more jobs. It will generate incomes at the individual and national levels that will improve people’s standards of living.

The continent’s bill for importing rice only is currently estimated to stand at over $ 5 billion which is about 40 per cent of the continent’s rice requirements. Rice consumption in Africa is rising at about 8 per cent against a yield increase of less than 6 per cent per year creating a deficit of over 12 million metric tonnes. Among the 43 rice-producing countries in Africa, more than one-half are rice importers, with varying degrees ranging between 10 – 93 per cent, according to the UN Food and Agriculture Organisation (FAO). Kenya, that produces a meagre 150 000 metric tonnes, consumes 600 000 metric tonnes annually. This means the importation of more than 70 per cent of rice that is consumed locally.

According to the U.S. Department of Agriculture, Nigeria’s rice import was slated to jump 13 per cent this year to 3.4 million metric tonnes, making the country Africa’s biggest rice importer. There is, therefore, an urgent need for Africa to increase its rice production otherwise the shortage is estimated to rise to more than 30 million metric tonnes by 2035.

This scenario can change. Africa can start its own agricultural revolution with low hanging fruits – embracing new agricultural technologies that can improve productivity. China, for example, that is doing a lot of business with the continent, revolutionized rice production in Asia through the use of hybrid rice technology. Currently, the share of hybrid rice in Asian markets is about 60 per cent. If Africa is going to bridge its rice deficit, then the rice hybrids offer an opportunity.

For this to happen, we need to increase the land that farmers use for production to meet Africa’s rice demand and even export at competitive prices. Accordingly, this calls for the adoption of suitable technologies and best agronomic practices to revolutionize rice production in Africa to match the consumption rate while at the same time reducing the dramatic increase in total imports. This will not only boost the economies of African countries but also ensure food security among the bourgeoning Africa population and create employments.

The hybrid rice varieties offer higher yields currently giving farmers over 10 tonnes per hectare under irrigation compared to 4 tonnes that other producers are getting.

The rice, produced locally by Africa Agricultural Technology Foundation (AATF), Hybrid East Africa Ltd (HEAL), Kenya Agricultural Livestock and Research Organisation (KALRO), Tanzania’s Agricultural Research Institute and private seed companies in East Africa offers an opportunity to contribute to private sector growth through the involvement of seed companies. So far, five new rice hybrids have been released in Kenya, Tanzania and Uganda.

For Africa to deliver on its economic goals including job creation for the youth and women and to develop a competitive agricultural sector to improve people’s standards of living, the continent needs to adopt the critical use of new technologies such as the hybrid technology to boost Africa’s rice productivity.

https://www.commodity-port.com/is-hybrid-rice-solution-to-africas-food-shortage/

The Sasakawa Association will work with the Japan International Corporation Agency (JICA), to help double rice production to 50 million tonnes by 2030.  Japanese Prime Minister Shinzo Abe made the announcement at the Sasakawa Africa Association (SAA) symposium held on Wednesday during TICAD7.

“Japanese technology can play a key role in innovation which is key to agriculture,” Prime Minister Shinzo Abe told delegates.

Discussions at the Symposium focused on Africa’s youth bulge, unemployment rates, agricultural innovations and technologies, solutions and job creation opportunities in the agricultural sector.

“We’ve always believed in the agriculture potential of Africa,” said Yohei Sasakawa, Chairman of the Nippon foundation. “We are paying more attention to income-generating activities. We want to help shift the mindset of small-holder farmers from producing-to-eat to producing-to-sell. We are hopeful that Africa’s youth can take agriculture to a new era, and that they can see a career path in agriculture,” he added.

In a keynote address, African Development Bank Group President, Akinwumi Adesina, called for urgent and concerted efforts to “end hunger”.

“In spite of all the gains made in agriculture. We are not winning the global war against hunger. We must all arise collectively and end global hunger. To do that, we must end hunger in Africa. Hunger diminishes our humanity,” Adesina urged.

According to the FAO’s 2019 State of Food and Security, the number of hungry people globally stands at a disconcerting 821 million. Africa alone accounts for 31% of the global number of hungry people – 251 million people.

Commending the Sasakawa Association’s late founder, Ryochi Sasakawa, for his tireless efforts in tackling hunger, Adesina said: “Passion, dedication and commitment to the development of agriculture and the pursuit of food security in our world has been the hallmark of your work.”

Between 1986 and 2003, Sasakawa Association in Africa, operated in a total of 15 countries including – Ghana, Sudan, Nigeria, Burkina Faso, Benin, Togo, Mali, Guinea, Zambia, Ethiopia, Eritrea, Tanzania, Uganda, Malawi and Mozambique.

Harnessing the potential of new technologies

Adesina expressed confidence in the ability of technology to deliver substantial benefits in agriculture. To accelerate Africa’s agricultural growth, the African Development Bank has launched the Technologies for African Agricultural Transformation (TAAT) to deliver new technologies to millions of farmers. ‘TAAT has become a game changer, and is already delivering impressive results, Adesina said.

Working with 30 private seed companies, the TAAT maize compact produced over 27,000 tons of seeds of water efficient maize that was planted by 1.6 million farmers.

Tackling climate change: a top priority

Hiroyuki Takahashi, founder of Pocket Marche, a platform that connects Japanese farmers and producers with consumers, shared insights and lessons learnt from Japan’s experiences, historic cycles of climate disasters and the country’s rebound.

“The power to choose what we eat is the power to stop the climate crisis and bring sustainable happiness to a world with limited resources,” Takahashi said.

It is estimated that Africa will heat up 1.5 times faster than the global average and require $7-15 billion a year for adaptation alone. Limiting the impacts of climate change is expected to become a top priority for Africa.

“Africa has been short-changed by climate change. But, it should not be short-changed by climate finance,” Adesina said in his concluding remarks.

“Let’s be better asset managers for nature. For while we must eat today, so must future generations coming after us. It is our collective responsibility to ensure that we do not leave empty plates on the table for generations to come,” Adesina concluded.

https://www.commodity-port.com/agriculture-seventh-tokyo-international-conference-on-african-development-ticad7/

Russia is attempting to gain influence in Africa and earn billions of pounds by selling developing nations nuclear technology that critics say is unsuitable and unlikely to benefit the continent’s poorest people.

Representatives of Rosatom, the Russian state corporation responsible for both the military and civil use of nuclear energy, have approached the leaders of dozens of African countries in the past two years.

The company, which is building a $29bn reactor for Egypt, has concluded agreements with Uganda, Rwanda, Ghana, South Africa and others.

Nigeria has a deal with Rosatom for the construction of a nuclear reactor, and less ambitious agreements of cooperation have been signed with Sudan, Ethiopia and the Republic of the Congo. Russia has also set up offices to promote nuclear energy in Zambia, with well-funded outreach campaigns designed to drum up enthusiasm.

Winners of an Africa-wide competition were rewarded with an “educational” trip to Russia that included visits to a nuclear power plant and the “science city” of Obninsk.

A typical package offered to a nation interested in nuclear power includes generous loans and long-term supply contracts. Russia has lent Egypt 85% of the construction cost for its nuclear reactor.

Rosatom trains local specialists in nuclear physics and energy in several African nations, and runs a scholarship programme in Kenya.

Rosatom is among international groups that are exporting light-water technology, which is generally considered among the safest and is building a $13bn light-water reactor in Bangladesh. But such reactors typically generate more than 1,000 megawatts and very few countries in sub-Saharan Africa have the capacity to distribute that amount of power.

It is a rule of thumb in the industry is that no single facility should provide more than 10% of the total of a country’s power. Only Nigeria and South Africa comply with this recommendation.

Nuclear power’s supporters argue that the lengthy construction times of nuclear reactors allow poorer countries to build up their infrastructure. But Névine Schepers, a nuclear expert at the International Institute of Strategic Studies in London, said light-water technology was not suited to many African countries.

“In terms of economic sense smaller countries that have a long way to go to develop their grids would be better off aiming for something like smaller modular reactors,” she said.

Technology for cheaper reactors that would produce about 300MW is being developed in Russia, China and the US.

“Despite the shortcomings of the grid infrastructure in Africa, the latest generation of tried and tested ‘large’ [reactors] are still the clear winners in most regions in terms of the cost of electricity,” Rosatom said in a statement. It added that it sought to provide a “customised solution” for each country.

Another concern is that the expensive projects favoured by Rosatom would not benefit Africa’s poorest people. In most countries, energy is generated in large, centralised plants and distributed over a national grid – a model that would be reinforced in Africa by nuclear power.

“Access to energy is a basic human right and necessary for a dignified life. The majority of those denied this right live in Africa,” said Friends of the Earth. “However, the expansion of profit-driven nuclear energy in Africa would only exacerbate the problem.”

The environmental NGO said the answer to Africa’s energy needs lay in “efficient technology that meets the daily needs of people, in the hands of communities and municipalities, and controlled democratically”. Only small-scale and interconnected grids that were democratically managed could deliver energy sovereignty to African people, it added.

Rosatom has accused Friends of the Earth and other NGOs of “hardline anti-nuclear activism … based on a position well known for being completely biased and riddled with factual errors”. It said its priority was “sustainable development” and that nuclear energy was “intrinsically immune to any form of political manipulation”.

Experts pointed out that no nuclear projects have been finished and only two contracts – in Egypt and Nigeria – are in place. “These projects are far into the future, but Russia and Rosatom have been actively wooing African states,” said Schepers. “It is very profitable for them [because it] creates jobs at home and a decades-long relationships.”

Selling nuclear technology is part of an effort by Russia to build influence, power and trade across Africa, with growing involvement in nations across the continent.

The involvement of Russian mercenaries in the Central African Republic and Sudan has attracted significant attention, as has an apparent effort to influence elections in South Africa in May.

Many of the African countries that have signed commercial agreements of the kind being pursued by Rosatom are run by movements or individuals who have long-standing relationships with Russia or – more often – the USSR.

In early April João Lourenço, the president of Angola, visited Moscow for talks with Vladimir Putin and top officials, to discuss arms sales, diamond mining, and gas and oil production. Russia delivered six Su-30K fighter jets to Angola this year and two more are expected in the second part of a billion-dollar deal.

Lourenç, who fought in Angola’s war of independence against Portugal, studied in Moscow from 1978 to 1982. Angola was a cold-war battleground and the USSR backed the Popular Movement for the Liberation of Angola, still the ruling party.

Alex Vines, head of the Africa programme at Chatham House, said: “reactivating old Soviet networks” had been a clear strategy in Moscow for a couple of years. “The old history can play very positively in some places.”

Patrick Smith, the editor of Africa Confidential, an investigative newsletter, said: “Russians can’t write big cheques but have mastered the art of making themselves really popular, albeit with some of the worst leaders in Africa. They want the ties too. The more powers they can play off against each other, the better.”

The campaign has had setbacks. A deal in South Africa went wrong when Jacob Zuma was removed from power amid corruption allegations last year. A furore surrounding a $75bn contract to build power stations with a combined 9.6 gigawatt output badly damaged the image of Russia.

“South Africa was a very good example of where [the Russians] overplayed their hand and misread local sentiments. It has set them back there by years,” said Nataliya Bugayova from the Institute for the Study of War in Washington DC. “Part of their pitch is that they can support a regime with relatively few strings attached. I don’t think the overall wellbeing of the African states is driving the Russian campaign, whether nuclear or anything else.”

https://www.commodity-port.com/russia-pushing-unsuitable-nuclear-power-in-africa-critics-claim/

Noble Energy makes oil discovery in Block I, located in Equatorial Guinea’s offshore sector; The well was drilled to a total depth of 4,417 meters and is expected to produce first oil in October 2019; As a champion of oil and gas development in Africa, Minister of Mines and Hydrocarbons H.E. Gabriel Mbaga Obiang Lima will lead the conversation on the future of natural gas on the continent at the Africa Oil & Power event in Cape Town on October 9-11 2019.

Equatorial Guinea’s Ministry of Mines and Hydrocarbons (MMH) is pleased to announce that U.S. oil and gas company Noble Energy has made a discovery in offshore Block I.

The Aseng 6P well was drilled to a total depth of 4,417 meters. Noble is currently in the process of completing the 400-meter horizontal section of the well and, using existing Aseng field infrastructure, is expected to produce oil from October 2019.

“We are excited to announce this discovery which could not have come at a more opportune time. We have been dedicated to developing our resources to build a better economy and create opportunities for our people and, it seems we are gaining momentum,” said Minister of Mines and Hydrocarbons H.E. Gabriel Mbaga Obiang Lima.

He added that: “It’s always been our firm belief that our country is relatively underexplored. When companies drill offshore Equatorial Guinea, their likelihood for a discovery is real. Noble Energy and partners are longtime friends of Equatorial Guinea and it is only fitting that we should build on our oil and gas development efforts with them right by our side. This is great news for our economy, jobs creation and local content development.”

The Aseng field consists of five subsea wells connected to a FPSO vessel. With a 40 per cent interest, Noble Energy is an operator. Other partners include Atlas Petroleum (29 per cent), Glencore Exploration (25 per cent) and Gunvor (6 per cent).

This year, Equatorial Guinea kicked off its endeavour to become Africa’s premier gas hub with the signing of definitive agreements with the Alen field partners and Punta Europa Plant owners to monetize gas from the Noble Energy-operated Alen field – a project known as the Gas Megahub.

As the country develops its gas resources, Minister Obiang Lima said earlier this year that it was also targeting a final agreement on its 2007 joint deal with Cameroon to develop gas condensate discoveries Yoyo and Yolanda on their maritime border.

Minister Obiang Lima alongside Antonio Oburu, General Director of Equatorial Guinea’s national oil company GEPetrol, will lead a delegation of companies active in Equatorial Guinea to the Africa Oil & Power Conference and Exhibition in Cape Town, South Africa on October 9-11 2019. Joining the minister will be BANGE, Centurion Law Group, Noble Energy, Marathon Oil, Golden Swan, Baker Hughes, Kosmos Energy, Trident Energy, Tullow Oil, Elite Construcciones, Schlumberger, NAHSCO, Hexagon and NALCO Champion.

https://www.commodity-port.com/noble-energy-makes-new-equatorial-guinea-petroleum-discovery/

Determined to create job opportunities and industrialize Nigeria, the Dangote Group yesterday announced that it was scaling up its investment in agricultural sector.

Fielding questions from newsmen on the sideline of the ongoing 2nd edition of the Agribusiness Summit in Abuja Group Executive Director, Strategy, capital Project and Portfolio Development Mr. Devakumar VG Edwin said the new investments are significant and timely given the current rate of unemployment in the country.

According to him, agriculture employs 37 % of the population, adding that this is against the backdrop of 23 % unemployment rate in the country.

He said going forward; his company is upping its investment in rice, tomato paste, sugar and dairy products. He said presently the Dangote group is constructing state of the art storage silos, and as well carrying out parboiling, rice milling, polishing, sorting and parking units for a total capacity of one million tons of paddy.

Mr. Edwin said there is an ongoing “investment in 15,000 hectares to produce and process tomato paste of 150,000 tons per year. The current import is 0.5million tons per year.” He said his conglomerate was equally investing in 40,000 hectares to produce sugar, just as he hinted about the ongoing construction of a 3million tons fertilizer plant.

https://www.commodity-port.com/dangote-scales-up-investments-in-agriculture/

Dangote Cement has revealed that its Pan African sales increased by 2.7 per cent to nearly 4.7 million tonnes for the six month ended on June 30, 2019.

To the delight of its investors, the company also revealed that its Tanzania Plants now runs on gas turbines, just as sales volumes from its Senegal Plants are more than 100 per cent of its rated capacity.

The company said in a statement yesterday that these results are good signs of better days ahead for the company's investors.

It would be recalled that the company paid a whopping N272.6 billion as dividends to its shareholders last financial year, translating to N16 per 50kobo share, and representing an increase of 52.4 per cent against a total dividend of N178.9 billion or N10.50 per share paid by the company for 2017 financial year.

The Chairman of the company, Aliko Dangote had recently said its cement terminals in Lagos State and Onne in Rivers, would be concluded before the end of 2019, as a way of further improving its market share.

He promised that the terminals, which were delayed by equipment suppliers, would rake in about $700 million in foreign exchange through cement exportation to sub-Saharan Africa.

He said the company would be opening export facilities within the terminals to export clinker and cement to its existing facilities both in Cameroun and other African countries.

According to him: "Later in 2019, we will open export facilities in Lagos and Port Harcourt that will enable us export clinker initially to our grinding facility in Cameroun and then to new grinding plans we are building in West Africa... Not only will these generate useful foreign currency for Dangote Cement to support other expansion projects outside of Nigeria, they will also help to increase the output of our Nigerian plants," he said.

He further revealed that the company would be exporting cements through the terminals to Ghana, Cameroun, Sierra Leone and Congo, among others and as such make Nigeria the biggest exporter of cement in sub-Saharan Africa.

Noting that the project will improve job creation and increase prosperity of the country, he said the company's capacity will also increase on the completion of the terminals.

Dangote Cement is Africa's leading cement producer with nearly 46metric tonnes per annum capacity across ten countries in Sub-Saharan Africa. A fully integrated quarry-to-customer producer, it has a production capacity of 29.25Mta in Nigeria. Its Obajana plant in Kogi state, Nigeria, is the largest in Africa with 13.25Mta of capacity across four lines; its Ibese plant in Ogun State has four cement lines with a combined capacity of 12Mta, while its Gboko plant in Benue state has 4Mta.

Through its recent investments, Dangote Cement has eliminated Nigeria's dependence on imported cement and has transformed the nation into a net exporter, serving neighbouring countries that lack the limestone necessary for cement manufacturing.

https://www.commodity-port.com/nigeria-dangote-cement-in-tanzania-now-runs-on-gas-turbines-says-company/

An African research centre said Monday it has launched a new rice project that targets to benefit 300,000 households in Kenya, Uganda and Madagascar.

Africa Rice Center said the project which is expected to enhance income and food security will adopt appropriate rice technologies and innovations to address emerging rice value chain constraints.

The project which will improve productivity and competitiveness of domestic rice will run for three years, said Paul Kiepe, head of research planning and coordination with the Africa Rice Center.

"The project is aimed at contributing to the development of the rice value chain in East Africa with focus to women and youths," Kiepe said during the launch in Nairobi.

He added that the project will involve multi-stakeholders' innovation platforms in strengthening functional linkages among rice value chain actors and to improve the capacity of farmers.

Kiepe observed that since Kenya has risen to be the newest middle-income country in the region, the country must seriously act to increasing its production and reduce the huge import dependency.

"The project will generate ample cross country learning cases, and indicate forms of collaboration that will effectively and sustainably contribute to each country's growth and the rice development in the region," he added.

The researcher said that the private sector will be involved in the production and dissemination of new varieties to be widely adopted by the farming community.

The project that is funded by the International Fund for Agricultural Development is meant at improving the local supply of rice since the East African region imports the commodity amounting to 500 million U.S. dollars annually.

"The project will help Kenya achieve 100 per cent food and nutrition security of populations, create employment and wealth to many stakeholders," Mwangi Kiunjuri, cabinet secretary for agriculture, livestock and fisheries.

Kiunjuri noted that it is expected that the project will help Kenya meet the deficit that stands at 400,000 metric tons annually since farmers locally produce 70,000-80,000 metric tons annually.

He noted that Kenya has the potential and capacity if harnessed to not only be self-sufficient in rice but to also be an exporter.

https://www.commodity-port.com/africa-rice-center-launches-new-project-to-improve-food-security/

Nigeria is among 10 producing countries with the highest cost of crude oil production per barrel, it was gathered at the weekend.

Chairman/Managing Director, ExxonMobil Affiliate Companies in Nigeria Paul McGrath, who spoke in Lagos, said the Federal Government needed to address some issues in the petroleum industry to achieve major milestones in the industry.

McGrath, also the Chairman, Oil Producer Trade Section (OPTS),  Lagos Chamber of Commerce and Industry (LCCI), said targets such as increased investment inflow, increased oil reserves and daily production as well as sufficient in-country refining and domestic gas utilisation, may remain wishful thinking if issues drawing back the industry are not addressed.

He described the country as the largest oil producer in Africa and with hydrocarbon prospects among the brightest in the world. “However, there are fixes to be put in place if it aspires to maintain and expand the investment profile in the hydrocarbon industry,” he added.

“Nigeria ranks among the top 10 countries with highest cost of producing oil per barrel and its equivalent in gas. High cost is a major disincentive to investment, especially at this time of considerable global competitiveness. Operating costs are increasing due to attendant increase in required maintenance and well work-overs. Security costs are escalating as peculiarities of the business environment require additional resources to be deployed to secure our people and assets,” he said.

The Nigerian National Petroleum Corporation (NNPC) also said it would grow the country’s crude oil reserves to 40 billion barrels by 2025 from 37 billion barrels.

NNPC’s Group Managing Director, Mallam Mele Kyari, spoke at a conference with the theme: Harnessing the oil and gas potential for national development.

Kyari also said the Corporation will grow oil production to three million barrels per day (bpd)  from the current 2.2 million bpd by the same period.

Represented by the Corporation’s Chief Financial Officer, Mr Umar Isa Ajiya, the GMD said the attainment of these targets by 2025 were part of efforts to optimise the potential of the petroleum industry for rapid economic development.

He said: “From the NNPC’s point of view, we are working with our partners to grow the national reserves to 40 billion barrels by 2025 and further improve crude oil production to three million barrels per day during the period. To achieve these targets, we are not oblivious of the fact that huge investment is required across the value chain.

“The corporation is planning to open up the midstream, complete all critical projects targeted at delivering about three billion standard cubic feet of gas daily to the market and further ensure the closeout of investment decision on the Nigerian Liquefied and Natural Gas’ (NLNG) Train 7, and improve domestic utilisation to boost power generation and industrial growth.”

https://www.commodity-port.com/nigerias-oil-production-cost-among-10-worlds-highest/

The Nigerian National Petroleum Corporation (NNPC) has heightened the hunt for investments as it declared plans to surge the country’s gas output for the global gas market to three billion standard cubic feet (scuf) daily.

Group Managing Director of the Corporation, Mele Kyari, who declared this at the annual conference organised by the National Association of Energy Correspondents (NAEC) in Lagos, yesterday, maintained that gas is the needed catalyst for national development.

“All hands must be on deck to ensure that, using the realistic government policies, gas is fully utilized domestically to power industries and fast track the nation’s march towards industrialization,” he said.
Part of what should be done, according to Kyari who was represented at the event by the Chief Financial Officer, Umar Ajiya, is “to open up the midstream, complete all critical gas development projects targeted at delivering about 3Bscfd to gas market, ensure the closeout of investment decision on NLNG Train 7 and improve domestic utilization to boost power generation and industrial growth.”

Speaking on the conference theme: ‘Harnessing Oil and Gas Potentials for National Development,’ the NNPC’s boss said: “Our concerns should be, among others, on what we need to do to harness Nigeria’s oil and gas potentials towards national development, more so, in the face of mounting challenges facing the industry.

“From NNPC’s point of view, we are working tirelessly to achieve that. Today, with our partners, we are driving the aspiration to grow the national reserves to 40 billion barrels by 2025 and improve crude oil production to three million barrels/day during the period. To achieve these targets, we are not oblivious of the fact that huge investment is required across the entire value chain.”

In the downstream sub-sector, Kyari said: “Nigeria is still a net importer of petroleum products due to the current state of our refineries and the long absence of private investment in the refining sector. Thus, we require more investment to revamp and expand our domestic refineries and associated infrastructures to support the growth of the downstream sector and guaranty energy security to the nation.

“In this respect, NNPC under my purview, would leave no stone unturned to ensure our 445,000-barrel refineries in Port Harcourt, Warri and Kaduna work to an appreciable level or capacity.

www.commodity-port.com

The Food and Agriculture Organisation (FAO) on Wednesday donated agricultural equipment to the Ministry of Food and Agriculture (MOFA) to enhance agricultural development in the country.

The items are laboratory coats, seed trays, personal protective equipment, digital grain moisture analyzer, tarpaulins, weighing scale and sampling bags.

The rest are digital camera and educational materials, flyer on signs and symptoms of Fall Army Worm (FAW) and poster on signs and symptoms of FAW.

The items are to support seed testing under the 'Planting for Food and Jobs' (PFJ) while the educational books are to help in the management and control of FAW....

Read full article by clicking https://www.commodity-port.com/blog/wp-admin/post.php?post=2689&action=edit

The International Finance Corporation (IFC), the investment arm of the World Bank, will vote in mid-October on the approval of a USD 300 million investment in a gold mine in the Tasiast region of Mauritania. The investment decision – which is the first-ever IFC project in Mauritania – comes less than a month after President Mohamed Ould Ghazouani took over as president from his predecessor, Mohamed Ould Abdel Aziz.

According to documents disclosed on the IFC website, the mine, which is owned by Tasiast Mauritania Limited SA, a subsidiary of Kinross Gold Corporation, has undergone all of the necessary environmental and social studies for an investment to be considered. The IFC leads a consortium which includes USD 155 million of its own capital that will be complemented by a USD 145 million joint investment by Canada Export Development, the Canadian development finance institution, and two unnamed commercial banks...

Click https://www.commodity-port.com/world-banks-ifc-to-invest-in-mauritanian-mine/ to read full article

According to him, the AGRF 2019 will particularly identify and catalyze the enabling policies, programs, and investments to leverage digital transformation to drive sustainable food systems in Africa.

Addressing the media at a press briefing, Mr. Foster Boateng said: “Given the unprecedented growth and adoption of digital technologies, Africa has an opportunity to leapfrog the agricultural transformation trajectory of the past and revolutionize life by overcoming isolation, speeding up change, creating jobs of the future and taking success to scale.”

The AGRF is considered the world’s most important and impactful forum for African agriculture, pulling together stakeholders in the agricultural landscape to take practical actions and share lessons that will move African agriculture forward. It is a unique multi-disciplinary forum where delegates discuss and commit to programs, investments, and policies that can counter the major challenges affecting the agriculture sector on the continent. Since the first AGRF was held in Ghana in 2010 under the leadership of H.E. President Mills, the Forum has annually brought together Heads of State, Ministers, business leaders, development partner leadership, thought leaders, farmer organization representatives, youth entrepreneurs, and other critical stakeholders to focus on the actions and policies needed to move the continental agenda forward.

He further added that the forum will take stock, evaluate actions, and learn from compelling evidence across the continent, presented by many of the most inspiring leaders, including young people, turning agriculture into thriving enterprises.

“Farmers will demonstrate how the use of technology and better farming methods is able to transform entire communities and nations; Ghana and other public sector thought leaders will share experiences in delivering policies and investments to advance jobs and food security; while private sector champions and agripreneurs will showcase their efforts in innovation and opening up scalable and sustainable market opportunities in Africa’s evolving food systems.” Mr. Boateng explained

Mr. Foster Boateng reiterated that the AGRF 2019 is aimed at achieving a follow up on the 2017 and 2018 commitments which seeks to showcase progress made on commitments of the last two years to advance political and economic contributions to African Agriculture while aligning what is needed to support the Malabo Declaration and the SDGs.

“There will be a Political and Policy Leadership from African Governments which will also showcase leadership of African Heads of State and 15+ ministers, particularly the progress made and the lessons learned from their agricultural transformation efforts, so that they serve as champions for the rest of the continent.” he stressed.

Mr. Boateng further mentioned that a Political and financial support from development partners and the private sector in the spirit of the campaign titled “How Will You Lead”, featuring leadership from actors across the sector that are driving current progress, and also highlighting the need for even greater leadership at all levels of the sector in order to achieve the progress needed to meet the shared aspirations for African agriculture.

He said “There will be new business deals. This marketplace of ideas (deal room) is a new addition to the AGRF and provides opportunities to negotiate financial backing for early-stage agribusinesses to help bring African youth, high growth potential companies and public investments to the fore of sustainable agricultural development. AGRF 2019 will provide a platform for crowd sourcing ideas and financial commitments – and to make sure these are followed through.

Mr. Foster Boateng stated that an announcement of the 2019 Africa Food Prize Winner will be made adding that the Prize will recognize an extraordinary individual whose outstanding contribution to African agriculture in recent years is forging a new era of food security and economic opportunity for all Africans.

The West African Regional Director, however, disclosed that one major challenge facing AGFA is youth not involving themselves in the project.

“One major problem is the Youth not involving themselves in the Agricultural venture. We have tried enough but all efforts is proving futile but we have not lost hope as we will continue to push for their involvement.”

Mr. Foster Boateng says he is confident that after the 3 days forum, many farmers would have learned now methods in boosting their Agricultural yields and Ghana’s economy

The Forum was hosted by Heads of State in Tanzania in 2012, Mozambique in 2013, Ethiopia in 2014, Zambia in 2015, Kenya in 2016, Ivory Coast in 2017, and Rwanda in 2018.

The Forum and its momentum have grown considerably over these years, and this is the first time AGRF has ever returned to a previous host country.

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Adesina made this comment while addressing over 1,000 delegates at the opening ceremony of the 39th Southern Africa Development Community (SADC) Summit.

This year's Summit is themed on 'A Conducive Environment for Inclusive and Sustainable Industrial Development, Increased Intra-trade and Job Creation'.

Tanzanian President John Magufuli officially took over as Chair of the 16-nation regional economic integration body, from Namibian President Dr Hage Geingob at the summit attended by 16 heads of state and government.

"Our countries are not poor. We are very rich. We have all the resources needed for one to be rich. We have a huge population, large numbers of wildlife, vast plant species, marine ecosystem, minerals and hydrocarbons,” Magufuli said in his acceptance speech.

The AfDB has invested heavily in the region with key projects including a $5 billion investment in South Africa's power utility Eskom.

The Bank has also supported Mauritius with $114 million for its St. Louis Power Plant that now provides 36% of the population with electricity.

“For every dollar of paid-in capital by the region, it received about $19 in investments, an impressive 19:1 leverage ratio,” Adesina said in his address.

“Unlocking the potential of the Inga hydropower project in the Democratic Republic of Congo must be a top priority,” Adesina urged.

With a potential of over 44,000MW, Inga can power the whole of the region, and beyond.  “That’s why the African Development Bank is strongly supporting the realisation of the Inga 3,” he said.

The recently inaugurated Walvis Bay Port expansion in Namibia, supported with $300 million from the Bank, will help double its capacity from 300,000 to 750,000 twenty-foot equivalent units, providing better port access to Zambia, Botswana, and Zimbabwe.

Other transformative bank-funded projects include the construction of the Kazungula Bridge that will link Zambia and Botswana, and improve access to Malawi and DRC. The Bank’s $500 million funding of the Nacala corridor holds the key for much of regional integration in the SADC region and will expand regional trade by 25% and reduce transport cost by 15-25%.

The AfDB is supporting the establishment of a $1.2 billion SADC Regional Development Fund to help mobilise domestic resources for regional infrastructure and industrialisation.

In May this year, the Bank approved $2 million for the operationalisation of this Fund, including for project preparation for mining, agriculture, and pharmaceuticals.

Thanking the heads of state for their strong support for a general capital increase (GCI) for the Bank, he noted that the proposed capital increase would help fast-track Africa’s development.

Last year, the Bank financed the rapid dissemination of technologies to tackle the fall army-worm, a serious threat to food security in the SADC region. Its intervention reached 1.5 million farmers in that year alone.

SADC’s 16 member states are Angola, Botswana, Democratic Republic of Congo, Comoros, Lesotho, Malawi, Madagascar, Mauritius, Mozambique, Namibia, South Africa, Seychelles, eSwatini, Tanzania, Zambia and Zimbabwe.

“I see a brighter future for the SADC region. Regional railways that link the whole region, regional value chains that will drive competitiveness, Special Agro-industrial zones that will transform agriculture into a major business across the region, creating millions of jobs, and regional power pools that will finally solve the energy challenge in the region,” Adesina concluded.

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Farming rabbits could be a way for small scale South African farmers to get into exports for just R35,000 in startup costs.

This is according to Pertunia Setumo, agricultural economist at First National Bank's business unit, who believes investing in rabbit farms could provide food security for small-scale African farmers while also generating cash.

“For a small-scale unit of 150 does and 30 bucks, a start-up investment is estimated at R35,000. This would cover setup costs such as breeding stock, feed, labour and other variable and fixed inputs, for the first month. This excludes structures (which require capital investment depending on the size of the operation) and adhoc fixed costs,” said Setumo.

Over 80% of the rabbits bred in South Africa are destined for export. The meat is mostly destined for China, which has a huge demand despite being the largest producer of rabbits.

According to Setumo, demand has more than doubled since 2013, led by strong consumption. According to the Food and Agriculture Organization of the United Nations (FAO), an estimated 1.2 billion rabbits are slaughtered annually.

There is also potential in the South African market. Rabbit farms are less demanding than farming other livestock being easier to maintain and requiring less land and resources than other types of livestock farms. Maturation periods are short with about 51 days to reach a marketable weight of 2.2 kilograms and ideal weights of 3.5 kilograms achieved in three month.

Setumo says it costs about R55 to feed a bunny to maturation stage, consuming a mere 9.2 kilograms of feed on average.

South Africans could also benefit from eating a lot more rabbit meat. Rabbit is considered to have a lower calorie count per serving and a high protein concentration compared to beef, lamb, chicken, fish, and pork, yet it is still a relatively unpopular dish in South Africa.

“Locally, the retail market is still immature owing to a lack of knowledge in terms of nutritional benefits and accessibility. The meat is available in gourmet restaurants, wildlife butcheries, informal markets and some selected retailers.”

“Farmers who are starting out are also advised to partner with various rabbit farming clubs and associations across the country,” says Setumo.

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Kenya is hoping to benefit from the current standoff between India and Pakistan to push the 16 percent share New Delhi supplies to Karachi. East Africa Tea Traders Association (Eatta) said Kenya has an opportunity to raise its exports to Pakistan, the leading buyer of the local beverage whose numbers have been going down of late.

Pakistan and India are at the moment in another standoff after the latter suspended the semi-autonomous status of the contested Kashmir region.

“We would like to use this impasse to further our tea exports to Pakistan as Kenya stands to benefit from this standoff,” said Edward Mudibo, Managing Director at the Eatta.

India supplies Sh3 billion tea to Pakistan every year making it the second country in terms of market supply after Kenya.

Whereas Kenya might benefit in terms of volumes, the earnings could be lower as the Pakistan rupee has of late been losing value against the dollar.

The impact of currency devaluation is felt in Kenya today as the rupee has been shedding value for close to a year now.

Low global oil prices and currency devaluation of countries that are major buyers of the Kenyan tea have negatively impacted on the domestic price of the beverage.

Economies of several importing countries such as Egypt and Sudan, which are heavily dependent on oil and gas, have persistently recorded lower purchases.

In the last financial year, Pakistan imported 184 million kilogrammes of tea from all over the world with 84 per cent of the total (155 million kilos) coming from Kenya. Out of this, the Kenya Tea Development Agency’s produce accounted for 57 percent.

Kenya much relies on Pakistan, Egypt, the UK, Sudan and the United Arab Emirates for tea dollars. However, the volumes purchased by the countries have been declining as exports face trade barriers from some of the markets.

In January last year, Kenya nearly lost the Pakistan market as the country raised concern over possible contamination of aflatoxin in the commodity, requiring the beverage to undergo rigorous tests that created a backlog on consignment destined to Islamabad.

Read more commodity news in Africa here: www.commodity-port.com

According to the World Health Organisation, the daily allowable caffeine intake for an adult is 400mg.

“Coca-Cola Plus Coffee is therefore far below the normal requirement, but like anything people need to understand to consume it in moderation and have it as part of a balanced beverage intake across the board,” said Bernard Pieters, Coca-Cola’s head of integrated marketing communications....

Reaad more: https://www.commodity-port.com/the-new-coffee-flavoured-coke/

One of the greatest unresolved challenges facing Africa’s agribusiness sector is the lack of value addition. Sub-Saharan Africa-focused consultant Dr Edward George looks at how this affects two of Africa’s most important soft commodity value chains – cocoa and cotton – and explores how the fostering of local demand for crops could transform the balance of power for Africa’s agricultural producers.

Of all the challenges facing Africa’s agribusiness sector, the failure to add value to crops before they are exported has proved the most intractable. Most African softs are exported raw to global markets, and the processing industries that do exist locally struggle to add value. They may bring national prestige but they require costly subsidies to survive and create little employment. This situation is acute for three of Sub-Saharan Africa’s most important cash crops – cocoa, cotton and cashew nuts – which provide a livelihood for millions of Africans (Figure 1).

West Africa is the world’s largest producer of cocoa, with Côte d’Ivoire, Ghana, Cameroon and Nigeria producing over 70% of global output. But around 75% of the crop is exported as raw beans to Europe and Asia, with only a quarter staying in the region for processing into cocoa butter, powder and (a little) chocolate. This leaves the lion’s share of value addition to be captured by the confectioners and retailers at the end of the chain.

Cotton is another mainstay of West Africa’s agricultural sector, yet 70% of the crop is exported raw to Asia where it is processed into yarn and fabric and re-exported back to Africa. This means there may be West African cotton farmers wearing Asian-manufactured shirts made of the cotton they grew themselves. And, in the case of cashews, barely 5% of the crop is processed prior to export, with 95% of nuts going raw to India and Vietnam for processing and consumption.

It is not that there is no processing of cash crops in Africa. The problem is that most processing is basic. The majority of cash crops go through the bare minimum required for export or sale to the next part of the value chain. Although this can bring in immediate cash for farmers and processors, it means that they put in all the work to make a fungible commodity that is easy to trade and then let all of the value add go to those further down the chain (see fact box, page 29).

Processers struggle to compete internationally

There are processing sectors in Africa that extract more value from the crop, notably in cocoa and cotton. West Africa is one of the largest cocoa grinding regions in the world, accounting for 20% of global output. As the world’s largest producer of cocoa, Côte d’Ivoire has long vied with the Netherlands to be the world’s largest grinder, and the Ivorian government has pledged to boost local grinding from an estimated 27% of the crop in 2018/19 to 40-50% in the medium term.

But these strong numbers and ambitious targets belie the challenges facing West Africa’s grinding sector. Despite investment and local abundance of the crop, West African grinders have struggled to boost output and they are losing market share to grinders in Indonesia and Malaysia. They have survived thanks to local subsidies, whether in the form of tax breaks and cheap access to finance or export contracts, price stabilisation mechanisms or guaranteed discounts on the mid/light crop. In Ghana, for example, Cocobod gives a discount to local grinders for beans produced in the light crop (May-August) which are typically smaller and of lower quality than beans produced in the main crop (September-April), most of which are for export. This is not in itself wrong, as all value addition sectors enjoy some form of domestic protection around the world. But across West Africa the system has become so complex and opaque that it has distorted the local market and made it difficult for grinders to operate profitability and sustainably (Figures 2 and 3).

Francophone West Africa also boasts two cotton giants – Sofitex (Burkina Faso) and CMDT (Mali) – which run sophisticated value chains in the region. But they too have had their challenges. Sofitex was forced into a costly and disruptive withdrawal of the Bt cotton (genetically modified pest resistant) variety it was growing when it was discovered that the fibre lengths were shorter, which reduced the cotton’s value and quality.

The revival of the Africa’s textile sector has also been patchy, with the success of new manufacturing hubs in East Africa contrasting sharply with stagnation in West Africa’s textile processing. In the case of cashews, local processing has failed to keep pace with the dramatic expansion in production in Côte d’Ivoire, which is on track to become the single largest producer in the world. This is wasting a huge opportunity to capture value.

Why is value addition so low?

So why is value addition so low in Africa, when the continent’s agricultural sector has so many inbuilt advantages? These include abundant agricultural land, a rapidly growing population, the lower cost of capex for industrial plants, lower labour costs, plus less onerous know your customer and regulation. But many factors work against these advantages.

A key constraint is the lack of an efficient marketing infrastructure. This prevents farmers and processors from getting full value from their crop, even in its raw form. The problems start with the lack of farmer credit and inputs, and progress through the value chain with inadequate storage facilities, poor roads, overloaded ports and lack of access to buyers. This results in high crop losses – typically 30-40% of African crops rot before they reach market – and poor co-ordination between farmers which creates market gluts – as often happens in Nigeria’s tomato sector – and results in farmers getting little or nothing for their crop.

Africa’s agri value chains are highly fragmented, with numerous middle men adding costs while bringing dubious value and high levels of fraud. This creates an unstable platform for setting up processing businesses that rely on regular and guaranteed flows of raw commodities in order to meet the demands of their offtakers.

Taken together, these factors make it difficult for banks to finance value addition in the agricultural value chain. Too many banks have been burned by lending to small processors, traders and co-operatives, when they failed to understand the complexity of local markets and value chains. For many banks the risks are simply too high, from whether the farmers will provide the crops in return for credit advanced by the processor, to whether the processor will get a fair price from traders who are fighting to protect their own margins.

And, in the case of a default, what collateral do local processors really have? Leaving aside the internationally-owned value chains, which operate in their own enclaves, most African processors have ageing machinery and basic warehousing of little or no value. As a result, most banks do not finance the agri sector directly and the funding available for value addition projects falls well short of demand.

Starved of funding and struggling with a fragmented value chain, Africa’s processors face a further challenge: international competition. Cocoa butter produced in Côte d’Ivoire or Ghana directly competes with butters from anywhere in the world. If the costs of power, storage, transportation and paperwork delays are much higher in Africa than in other emerging or developing markets, then domestic processors cannot compete.

Boosting local demand is the key

The key to breaking this logjam is boosting local demand for cash crops, both within countries and regionally. If a country decides to add value to a product for which there is no local demand – for example making cocoa butter and powder – then it must offer a fiscal incentive to local processers. This means subsidies, and any subsidised industry can come to rely on subsidies in order to remain commercially viable, undercutting its competitiveness. But if there are multiple uses, consumers and markets for a crop, this gives market power to exporters as they do not have to take the first price offered to them.

Africa already has a successful example of this model in Ethiopia’s coffee sector. Ethiopia is Africa’s largest producer of Arabica coffee, with output of 7.7 million 60kg bags in 2017/18. But Ethiopia’s coffee exports are smaller than its rival, Uganda, whose output is a third lower. This is because Ethiopia consumes half of its crop (coffee is central to Ethiopian culture), reducing its availability for export. This enables the country to be selective in its coffee exports, helping build speciality brands like Yirgacheffe which command a premium.

Coffee consumption by Africans is also growing, helped by the bean’s brand association with Western working and social lifestyles, and there is ample space for the growth of African brands that meet local tastes and social habits.

It is also possible to capture the value of crops not grown in Africa but which are – again – intended for local or regional consumption. Nigeria’s sugar sector is a successful example of reverse integration. Starting in the late 1990s the Nigerian government first banned imports of packaged sugar – in order to boost investment in local packing plants – and then started to squeeze imports of refined sugar, while offering incentives for companies to invest in local sugar refineries. The results have been dramatic.

Imports of raw sugar have surged from just 1.2% of sugar imports in 1995 to 83.5% in 2016 (according to the Food and Agriculture Organization of the UN), all of it feeding the growth of the world’s largest sugar refining complex around Lagos. Over the same period, imports of refined sugar have fallen from 1.1 million tonnes in 2002 to just 267,000 tonnes in 2016. This means that all the value previously captured by sugar refiners in Brazil is now being captured in Nigeria. The next step is to make Nigeria self-sufficient in sugar production and redirect the sugar refined from Brazilian raw imports to sub-regional markets such as Ghana, Côte d’Ivoire and Cameroon. (Figure 4).

Similar value-add models focused on local consumption could change the picture for crops like cocoa. Little cocoa is consumed in Africa and the usual argument given for this is that chocolate is not suitable for tropical climates. But it doesn’t have to be chocolate. There are a host of foods and drinks, including cakes, biscuits and soups, that can be produced from cocoa for the local market. Cocoa can even be marketed as a health food, breaking the bean’s association with sugary confectionary.

When I proposed this idea to a Ghanaian friend he put it to his WhatsApp community and was deluged with traditional cocoa recipes, none of which were chocolate, from their aunts, grannies and parents. If cocoa-based products can be developed to suit local tastes and eating habits, it can create a local source of demand for cocoa. This will give power back to the farmers and co-operatives, who will have an alternative market for their beans when international prices and demand are low.

It is in this context that the African Continental Free Trade Area (AfCFTA) could help transform the value addition debate in Africa. AfCFTA’s focus on intra-regional trade – as opposed to international exports – could provide the framework to build cross-border agricultural value chains. These could link together production and consumption zones across Africa and process the commodities in the most efficient hubs. Not only would this put Africa’s value addition industries on a more stable footing, but it could help integrate all the actors into the agricultural value chain, in particular the farmers. This would make it possible to ensure that value addition industries not only add value to the economy but also that they transfer a fair share of this value to all participants in the agri value chain.

Value addition in Africa’s soft commodity sector

Basic processing:

Cotton lint
Raw cocoa and coffee beans
Natural rubber
Crude palm oil
Rice, maize, cassava
Raw sugar
Semi-finished:

Cocoa liquor, butter and powder
Roasted coffee
Refined and fortified sugar
Maize and cassava flour
Parboiled rice
Finished:

Textiles and footwear
Chocolate and ice cream
Freeze-dried, instant and ground coffee
Processed foods (pasta, noodles, bread)
Tinned fruit and vegetables

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On July 24, French super-major, Total signed a Gas Supply Agreement and Host Government Agreement with Benin and its state utility, the Société Béninoise d’Energie Electrique (SBEE). The agreement would see the development of a 0.5 mtpa Floating, Storage and Regasification Unit (FSRU), the first in West Africa.

According to reports, the liquefied natural gas (LNG) supplies sourced from Total’s global portfolio are set to start in 2021 and last for 15 years.

Prior to this development, Benin Republic, a country with a population of less than 12 million and a GDP of $10.35billion in 2018, is often overshadowed by its massive neighbour, Nigeria. But as African countries try to revitalise their energy sector, bring in private capital and develop gas-to-power, experts are now convinced that Benin look set for a positive reform in the sector, hence it has become a piece setter in the move to use LNG for the provision of clean energy.

Worthy of note is that before the signing of the agreement, the country embarked on a legislative reforms, thus setting a strong political agenda and indicating that the small West African nation is strengthening its place as the capital of the West African Power Pool (WAPP) and positioning itself as a big hub for gas and power in the sub-region.

Experts think this was no small move for a region that had repeatedly tried to develop its gas-to-power infrastructure but has remained faced with financing, infrastructure and regulatory challenges.

According to Power Africa, between Cote d’Ivoire, Ghana, Nigeria and Senegal, up to 7,750MW of gas-to-power facilities could be installed by 2030. In practice however, erratic supplies from the West Africa Gas Pipeline, lack of gas and transmission & distribution infrastructure, unattractive pricing structures and outdated master plans mean that such potential might remain under-exploited, the report noted.

In this context, the recent signing of agreements with Total brings hope to a region hungry for power. It is first the result of strong political will. Under the leadership of President Patrice Talon, Benin has been implementing a strong Government Action Plan (PAG) since 2016, which places the revitalisation of the country’s energy sector and private sector capital as a pillar of economic development.

The formula is working: Benin grew by almost 7 per cent last year and is expected to grow by 6.5 per cent this year (IMF), placing it in the top 15 of the world’s fastest growing economies. And political vision has led to a better ease of doing business. Benin has been revising its Electricity Code, and its Council of Ministers approved last month the new framework of intervention for the Independent Power Producers (IPPs), improving investment and operating conditions for private investors in the country’s power industry.

As a result, the agreement with Total would not only see the development of West Africa’s first FSRU, it is also reviving hopes of seeing clean LNG powering future homes and industries across the region. The new gas import project would indeed supply power plants in Benin, such as the new 127 MW power station at Maria Gléta, with regasification infrastructure developed and operated by Total.

Nigeria Losing Out?

Unfortunately, Nigeria which is said to have the largest gas reserves in Africa continue to struggle to convert the resources to energise the country’s economy.

According to the Nigerian National Petroleum Corporation (NNPC), Nigeria has around 202 trillion cubic feet (TCF) of proven gas reserves plus about 600 TCF unproven gas reserves, but only 25 per cent of this is said to be currently produced. Despite the said production level, the power sector continues to suffer from lack of adequate supply of gas due to a number of reasons.

The Place of Legislation

As rightly noted in the Benin experience, the appropriate legislation processed the investment by the private sector operator. This is where the Petroleum Industry Governance Bill (PIGB) passed by the 8th National Assembly but failed to get Mr. President’s assent comes to mind.

The PIGB is perceived in some quarters as an initiative that would not only help curb corruption in the petroleum industry, but as well serve as the defining guideline to participating in the sector.

In addition, the bill intends to reduce the minister’s power as some have been said to misuse the enormous power reposed on them in the current dispensation where the minister is said to be able to award oil exploration and crude oil shipment contracts to friends and cronies.

What exactly is the PIGB?

The PIGB was first proposed some 18 years ago by stakeholders in the oil and gas sector, as an answer to the massive corruption and theft that has confronted every administration since the 1960s.

On Thursday, May 25, 2017, the immediate past senate broke the jinx by passing the bill   after a clause-by-clause consideration and amendment of the report.

Weeks later, the House of Representatives passed its own version.

On March 28, 2018, the PIGB was harmonised and passed by the senate and the house of representatives.

On July 3, 2018, the PIGB arrived Aso Rock for President Buhari’s assent.

The PIGB aims to achieve the following: Create efficient and effective governing institutions with clear and separate roles for the petroleum industry; Establish a framework for the creation of commercially oriented and profit driven petroleum entities to ensure value addition and internationalisation of the petroleum industry; Promote transparency and accountability in the administration of petroleum resources of Nigeria; and foster a conducive business environment for petroleum industry operations.

However after months of stay at the President’s office, the bill was rejected assent with explanations by the Senior Special Assistant to the President on National Assembly Matters (Senate), Sen. Ita Enang.

According to Senator Enang, President Mohammadu Buhari withheld his assent to the bill on what he described as constitutional and legal grounds.

Among other reasons, the presidency said it disagreed with the section of the bill that allows the proposed Nigerian Petroleum Regulatory Commission (NPRC) to retain as much as 10 per cent of the revenue generated, because this would unduly increase the funds accruing to the Commission to “the detriment of the revenue available to the federal, states, Federal capital Territory and local governments in the country.”

What the federal government is saying here is that it won’t sign a bill that guarantees 10 per cent to the regulatory commission because that would affect what is due to states in monthly allocations.

What the government failed to put into consideration is the negative impacts in terms of foreign investment flow into the country due to the absence of adequate legislation governing the industry.

So far, neighbouring countries like Ghana, Equatorial Guinea, and even Benin are already taking advantage of Nigeria’s negligence and failure to monster the political will to do the right thing at the right time. Instead of looking at the bigger picture the country continues to view issues from a myopic point. The truth is that the world will not wait for Nigeria. It’s time the country takes advantage of her position in the region before it’s too late.

Source: Commodity-Port

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A few decades ago, it was very easy starting up a business in any country on the black continent and have a huge growth after a little while, but gone are those days. In this century, setting up a business or organization requires an extra care and management, it is incumbent to note every detailed information and the substantial economic values of an African country before one decides setting up a business in such country.
According to the 2019 World Bank ‘Ease of Doing Business’ report, we were able to identify ten countries that executives and investors should consider while dealing in a business.

1 Rwanda

Rwanda is one of Africa’s fastest-growing economies with growth averaging more than 6 per cent every year since the turn of the century. Last year, it recorded the most business reforms in the region. The world bank says it has “carried out the most reforms since the inception of Doing Business 16 years ago.”

One major point of improvement pointed out in world bank’s Doing Business 2019 is the ease of starting a business in Rwanda. It has replaced its bureaucratic structures with an electronic system. Last year, it replaced its stifling special billing machine system for value-added tax invoices with free software that allows taxpayers to issue value-added tax invoices from any printer. Also, the country is only second to New Zealand in the ease of property registration in the world.

2 Kenya

The country was one of the world’s best performers in the areas of Getting Credit and Starting a Business, according to the world bank. In just two years, the country has moved 31 spots in the overall the Doing Business ranking. One major reform the government initiated was the introduction of a new law which improved the ease in accessing credit for businesses. The Kenyan government has also been collaborating with IBM to develop technological solutions for its agencies that have since resulted in making registration of property easier by introducing an online system to pay fees and obtain digital certificates.

Kenya’s economy is expected to continue growing at 6.1 per cent, according to the International Monetary Fund (IMF) projections or 5.9 per cent for the world bank’s prediction. What’s almost certain is that the country would remain East Africa’s leading regional hub for information and communication technology, financial, and transportation services.

3 Ghana

Since the smooth transition to the Nana Akufo-Addo government in 2016, the government has promoted private sector-led growth to revive the non-oil and non-agricultural sectors. Commodities including oil, gold and cocoa have been the mainstay of Ghana’s $47 billion economy. The rapid economic growth it has also enjoyed over the last few years have been closely linked to oil since it became a producer in 2010. Ghana has been under the watchful eye of the IMF since the $918 million credit deal agreed in 2015. The current programme is to end 2018. The government says it’s working hard to build a resilient and robust economy to avoid a return to the IIMF for financial bailout.

The world bank’s doing business report says Ghana had further simplified the process of importing. It now has a paperless customs clearance processing system.The country moved six places up in the overall index.

4 Côte d’Ivoire

The world’s largest exporter of cocoa beans has made significant progress in its business environment in recent years building on gains of a stable political environment. The country was one of the top 10 improvers in the world in the Ease of Doing Business rankings. Over the last two years, it has reduced processing time for building permits and has introduced a new system for electronic payment of taxes and a credit bureau. Last year, it introduced online systems for filing corporate income tax and value-added tax returns, according to the world bank.

The agro-based economy is expected to maintain a steady growth rate of 7 per cent or above in the coming year. It’s relatively developed road network and port, the second-largest in West Africa, puts it in a favourable position to attract investments in 2019.

5 Ethiopia

This landlocked country of over 100 million people on the Horn of Africa is transforming itself into Africa’s manufacturing hub. The Ethiopia government is luring investments with tax incentives, infrastructure investment, and cheap labour. Industrial parks construction is also part of the government’s plan. It already has six industrial parks and still looks to set up nine more across the country in the coming years.

Ethiopia has also gone through a historic political transformation after welcoming a new reformist prime minister, Abiy Ahmed, in April. He sought to open up the economy to private investments. He announced plans to sell minority stakes in state monopolies such as Ethio Telecom and Ethiopian Airlines Enterprise, the continent’s biggest airline, as well as Ethiopian Shipping & Logistics Services Enterprise to foreign and domestic investors. The IMF forecasted Ethiopia would be Africa’s fastest growing economy in 2019, with a projected 8.5 per cent growth rate.

The Ethiopian Investment Commission (EIC) launched an online investment guide, iGuide, in December 2018. The platform, created with support from the United Nations Economic Commission for Africa (ECA) and the United Nations Conference on Trade and Development (UNCTAD), will help investors discover opportunities in the country, business costs, key procedures and laws.

6 Mauritius

This tiny island country has one of the smallest market sizes on the continent, which means some investors tend to ignore it. However, the state has consistently ranked higher than other African countries in ease of doing business. It currently ranks 20th in world bank’s ease of doing business index.

Mauritius’ stable political system, liberal financial sector and low taxes which encourage business formation have made it an ideal environment for investors who prefer a business-friendly and less risky investment environment.

Mauritius signed a full free trade agreement (FTA) with China last year – Africa’s first formal FTA with China – and has expressed an interest in becoming a transhipment and financial hub on China’s Maritime Silk Road trade route. Mauritius has already agreed on a formal trade agreement with three African trade blocs — Common Market for Eastern and Southern Africa, Southern African Development Community and the East African Community.

7 Morocco

Morocco is not only famous for its vibrant culture, superb cuisine and awe-inspiring landscape but also its friendly business environment. The greatly enhanced operating environment has served Morocco well to become a favourable position as a financial hub and platform from which European countries can access the African market. Between 2011 and 2019, Morocco climbed from the 114th place to the 60th place in the Ease of Doing Business ranking, indicating sustained improvements to the business climate.

The central bank of the Kingdom of Morocco expects a 3.1 per cent expansion in 2019. Tourism and manufacturing are expected to be the key growth drivers of the economy. The manufacturing sector is also expected to benefit from substantial foreign investment into the autos and aeronautics industries.

8 Nigeria

Africa’s biggest economy might not have so much short-term investment appeal due to low economic growth and high political risks. A lot hinges on the elections in 2019. The vote in mid-February would be a choice between President Muhammadu Buhari, who’s currently struggling to grow the economy after it plunged into recession in 2016, and former Vice President Atiku Abubakar, posturing as a pro-business alternative. We expect investors to adopt a ‘wait and see’ approach before attempting to come into the market.

Even though Nigeria dropped one position lower in the ease of doing business index, Nigeria was among the forty-six economies in the world that improved across three or more categories the world bank considers in its analysis. Notably, in two states, Lagos and Kano, starting a business was made easier by reducing the time needed to register a company at the corporate affairs commission and introducing an online platform to pay stamp duty.

9 South Africa

Africa’s second-largest economy is one of the easiest places to do business on the continent with advanced legal and financial structures. However, Africa’s most industrialised economy has been struggling to grow until it eventually plunged into a recession in the second quarter of 2018. The euphoria from Ramaphosa’s ambitious statements on reforms to rescue the economy has since cleared off.

Ramaphosa unveiled a “stimulus and recovery plan”, but his plans could be hampered by the general elections next year. The governing African National Congress (ANC), which has to contend with corruption allegations against Jacob Zuma, the former president, would be facing huge credibility and popularity test in the May elections. The country, which grew by only 0.8 per cent in 2018, also has to deal with struggling state-owned firms like power firm Eskom and South African Airways (SAA).

10 Egypt

Egypt snatched first position from South Africa in the 2018 investment attractiveness index by Rand Merchant Bank, one of Africa’s leading diversified financial services provider. Since North Africa’s largest economy recovered from the Arab Spring, it started implementing an economic reform programme backed by a $12 billion (Dh44bn) loan from the IMF in late 2016. Under the programme, the country introduced new taxes and floated the currency with the intention to overhaul the economy, boost investor confidence and restore stability to capital markets.

The country had fallen six places in the World Bank’s “Doing Business Report 2018” but was quick to issue some policy announcements in the weeks after the publication. Those reforms dragged it eighth places up in the 2019 edition of the report. The world bank noted that the country carried out five business reforms in 2017, which is the highest number to be carried out in Egypt in one year within the past decade. Notable among the reforms are reducing the time to start a business to 11 days now, from 16 days earlier; and strengthening corporate transparency to protect the rights of minority investors.

credit: Feranmi Akeredolu

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The establishment of an African free-trade zone will enable the continent to speak with one voice and potentially boost exports to the US, says SA’s trade and industry minister Ebrahim Patel.

Concerns have been raised about the future of the African Growth and Opportunity Act (Agoa) under President Donald Trump's administration.

Enacted 19 years ago, Agoa gives special treatment to 39 African countries by abandoning import levies on more than 7,000 wide-ranging products. The US president has previously made it clear he wants to protect US domestic business and manufacturing against threats from abroad.

Analysts have suggested that this could mean added import duties on South African exports to the US. Trump’s foreign policy on Africa has not been clearly defined, with many observers suggesting that the continent is likely to slide down his list of foreign policy priorities.

In 2018, SA joined various other countries on the continent in signing the Continental Free Trade Area agreement that aims to create a single continental market for goods and services, with free movement of business people and investments. With about 1.2-billion people in Africa, the agreement is set to create one of the largest free-trade market zones in the world.

Patel and his deputy,  Fikile Slovo Majola, are attending the Agoa forum which started at the weekend and ends on Wednesday.

The Agoa forum is an annual meeting held alternately in Africa and in the US between the ministers of trade of Sub-Saharan African countries and their US counterparts.

Speaking in Abidjan in the Ivory Coast during the 18th Africa Growth and Opportunity Act forum, Patel said the continent has the opportunity to align the Continental Free Trade Area (CTFA) with plans to increase access to US markets.

“We have an opportunity in these proceeding to align Agoa to goals of the CFTA to enable us to speak with one voice,” Patel said of the Abidjan meeting.

He pointed out that Sub-Saharan exports to the US have been on a downward trend in recent years. Total exports from the region to the US increased from $22bn in 2000 to a high of $82bn in 2008 at the height of the commodity boom.

Patel said countries in the region have to work closely together to make the most of Agoa preferences and deepen trade relations with the US.

“The US is the world’s largest economy and access to the US market and to American investment in our economy are important ways of addressing job creation and the elimination of poverty. We look forward to a constructive and positive discussion with the US trade representative,” he said.

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Rising debt in sub-Saharan Africa has sparked fears that the continent is heading towards crisis point. Although debt ratios remain below historic highs, critics have suggested that African countries are being propped
up by riskier loans.

Managing debt is a balancing act of possible risks and benefits. While borrowing money is one practical way for governments to boost their economies, the equilibrium can easily be thrown off-kilter – especially for low-income countries.

In the 1980s, several compounding factors caused debt across Africa to nearly double in a matter of years, reaching over $270bn. Meanwhile, Africa’s debt-to-GNI ratio rocketed from 49 per cent in 1980 to 104 per cent in 1987. Debt relief programmes – such as the Heavily Indebted Poor Countries Initiative (HIPC Initiative) and the Multilateral Debt Relief Initiative – were also developed, and subsequently provided $99bn to erase the debts of 36 countries – 30 of which were African.\

Over the course of the following decades, African debt was successfully tapered off, but the continent’s fortunes took a turn for the worse in 2012. In fact, according to the World Bank’s 2018 Africa’s Pulse report, average public debt as a percentage of GDP in sub-Saharan Africa rose from 37 to 56 per cent between 2012 and 2016. By 2018, 40 per cent of sub-Saharan African countries were at high risk of debt distress – double the proportion recorded just five years earlier. With a growing share of these debts being owed to China – a country critics have accused of extending unsustainable loans – fears are mounting that a new debt crisis could be just around the corner.

Lending a hand
Africa’s last debt crisis was spurred by a spending spree in the 1960s, during which the continent’s newly independent countries – supported by a strong commodities market – poured money into infrastructure projects and industries aimed at encouraging economic growth. Unfortunately, the hopes that had been pinned to these projects came crashing down in the 1980s.

The problems were myriad: a global recession had taken hold; developed countries’ interest rates were spiking; the flow of capital from abroad was declining; and commodity prices had witnessed an unprecedented drop. Worryingly, some of these issues can still be found in Africa’s current financial climate, such as commodity price shocks, which cause government revenues to decline, and a depreciation in local currencies against the US dollar, which makes foreign currency loans more expensive to repay. But what is more notable than the similarities is one stark difference: the composition of the continent’s debt.

Mma Amara Ekeruche, a research associate at the Centre for the Study of the Economies of Africa, told World Finance: “In the [1980s], most of the lenders were multilateral creditors – the World Bank, the IMF – but now we’re seeing bilateral lenders like China playing a more significant role.”

In its 2018 Africa’s Pulse report, the World Bank stated that there had been a “clear downward trend” for multilateral lending, while loans from new bilateral creditors had increased, especially among non-Paris-Club members (the Paris Club being a group of major creditor nations, including the US, the UK, Japan and many more, that coordinates lenders in cases where countries can no longer repay their debts). Market-based borrowing also increased as a new source of financing in both lower-middle-income and low-income countries. The World Bank believes this poses a significant threat: “Although international bond issuances allow countries to diversify their investor base and complement multilateral and bilateral financing, large (bullet) repayments from 2021 [onwards] constitute [a] significant refinancing risk for the region.”

According to the Jubilee Debt Campaign, a charity that calls for the debts of developing nations to be written off, as much as 20 per cent of African governments’ external debt is owed to China. Meanwhile, 35 per cent is owed to multilateral institutions. This transition away from traditional concessional sources of financing and towards less stringent lenders – China, in particular – has raised concerns about debt sustainability...

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President Muhammadu Buhari yesterday restated the commitment of his administration to create jobs for the youthful population of Nigeria.

He stated this during an audience with Guy Ryder, the Director-General of the International Labour Organisation (ILO).

Buhari said in the last four years, his government has prioritised Agriculture, Housing and Infrastructure development.

“Our focus in these areas was to create jobs today and ensure peace and equitable prosperity for future generations,” he said.

The President added that it was simply impossible to continue to import food with the nation’s population. “On agriculture, it was simple; a country with a population of close to 200 million has to be able to feed itself. We cannot rely on importing food,” he said.

He attributed some of the achievements of his government so far to consultations before taking critical decisions affecting the labour force:

“Our achievements to date were as a result of strategic fiscal and monetary policy decisions. In some instances, we partnered with stakeholders such as the labour unions.

"A good example was during the African Continental Free Trade Agreement review and the National Minimum Wage negotiations. This consultative approach aligns with the vision of the ILO to keep communications open, create jobs, ensure social justice and eliminate worker exploitation,” he said.

Earlier in his remarks, Mr Guy Ryder said he was in Nigeria to attend the Global Youth Employment Forum where over 60 countries have gathered to address practically the most pressing challenge of finding decent jobs for young people.

He also expressed the commitment of the Organization to existing partnership and cooperation with Nigeria. “We have worked with the Labour Ministry to prepare employment policies about youth employment, migration safety and health productivity. The focus is the practical implementation of these plans,” he said.

The president’s speech was also delivered by the Secretary to the Government of the Federation, Boss Mustapha, at the Global Youth Employment Forum (GYEF) in Abuja yesterday.

The forum had as its theme “Today and Tomorrow with Decent Jobs for Youth.”

Mustapha said the Buhari administration is focusing more attention on youth empowerment by creating the enabling environment for job opportunities and capacity building.

DAILY TRUST

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