Tag: Sierra Leone

FIRSTHOLDCO: Reinforcing ESG, sustainability initiatives as it rebrands

By A.Ezekiel

In a world where approximately 20% of new businesses fail within the first two years, 45% within five years, 65% within ten years, and only 25% make it to 15 years or more (according to the US Bureau of Statistics), any business that has crossed 15 years should be sharing insights on survival and success.

But what about businesses that have lasted twice that long? Or a financial services group that has thrived for over 130 years, especially in Africa, where business survival rates are likely lower than those statistics from the Global North? Such a group has certainly earned the right to teach masterclasses on business longevity.

First HoldCo Plc (FirstHoldCo), recently rebranded from FBN Holdings Plc, exemplifies sustainable business practices. A well-diversified group, it is one of Africa’s largest financial services organisations, offering innovative financial solutions through its subsidiaries in commercial banking, asset management, capital markets, securities, trusteeship, and insurance brokerage. FirstHoldCo ensures strategic coordination and synergy among its subsidiaries to deliver long-term value for stakeholders.

Retaining the legacy strengths and experience of FBN Holdings Plc, FirstHoldCo ensures that its subsidiaries enhance positive environmental, social, and governance (ESG) impacts while minimising or eliminating negative ones. This includes managing ESG risks in the workplace, marketplace, community, and environment, with the institutional capability to turn risks into opportunities.

For example, ESG risk management enhances credit and investment decision-making, de-risking processes for subsidiaries such as FirstBank and FBNQuest. It also strengthens social relationships with the communities in which these subsidiaries operate.

ESG and sustainability may be buzzwords for some corporations seeking to appear politically correct, but at FirstHoldCo, they are integral to its identity. The company is self-driven in aligning its strategy and operations with ESG principles and setting new sustainability benchmarks for financial services in Nigeria.

FirstHoldCo’ s flagship subsidiaries, FirstBank and FBNQuest, integrate ESG risks into their products, services, and offerings from the ideation stage through to development and launch. This approach drives responsible lending and investment practices, enabling the group to leverage ESG market opportunities while promoting sustainable socio-economic growth.

FirstHoldCo also prioritises people empowerment, fostering a work environment rooted in equal opportunities, diversity, and inclusion. A notable achievement is bridging the diversity gap, reaching a 40% female to 60% male employee ratio in 2023, one year ahead of its 2024 target.

The group also supports the communities where its subsidiaries operate, ensuring its impact resonates positively. Since 2017, it has implemented the SPARK (Start Performing Acts of Random Kindness) initiative and Corporate Responsibility and Sustainability (CR&S) Week. In 2023, these initiatives impacted 60,000 lives through outreaches to 60 orphanages, 20 schools, and hospitals across Nigeria, Ghana, Senegal, The Gambia, the Democratic Republic of Congo, Sierra Leone, and the United Kingdom. Donations included consumables, computers, clean water projects, school renovations, wheelchairs, and cash. Employees committed over 27,000 volunteer hours to these initiatives.

In 2023, FirstBank reinforced its commitment to empowering women through FirstGem, a financial product supporting women-led businesses. Over N36 billion in loans were disbursed at a single-digit interest rate of 9%. Additionally, its Agency Banking business, FirstMonie, expanded its female agent network to over 55,000.

Inclusion remains a key focus, with FirstBank enhancing accessibility for physically challenged customers in 234 locations, making 25 branches fully accessible and improving access at 209 others. It also expanded the SPARK initiative to institutions like the Bethesda School of the Blind and the Down Syndrome Foundation in Lagos.

FirstBank operates an Environmental, Social, and Governance Management System (ESGMS) to drive responsible lending and minimize ESG risks. In 2023, this system was enhanced to ensure real-time transparency in corporate credit screenings. That year, 2,239 credit transactions worth N4.236 trillion were assessed for ESG risks.

To strengthen ESG compliance, FirstBank collaborates with development partners such as British International Investment, the African Development Bank, the International Finance Corporation (IFC), and Proparco, a French development finance institution. Its partnership with Proparco is crucial for integrating climate initiatives into business strategy. This project enhances its understanding of financed emissions and positions it for climate financing and investment opportunities.

This initiative will help FirstBank reduce greenhouse gas (GHG) emissions, mitigate exposure to physical and transition risks, and strengthen climate adaptation efforts. It also reinforces its market competitiveness as an ESG leader committed to a low-carbon economy.

As part of its commitment to decarbonisation, FirstHoldCo’ s FirstBank actively engages in reforestation and afforestation through partnerships focused on carbon dioxide (CO2) removal. In 2023, it pledged to plant 50,000 trees by 2025 in collaboration with the Nigerian Conservation Foundation (NCF). That year, it planted 1,000 trees at the Lekki Conservation Centre, Lagos; Model Secondary School, Maitama, Abuja; and Federal Government Girls College, Calabar. By the following year, it had planted an additional 30,000 trees, bringing the total to 31,000.

FirstBank also drives thought leadership in climate finance, promoting knowledge on carbon mitigation and climate adaptation. A notable effort was a webinar themed ‘Harnessing Climate Finance Opportunities in Nigeria,’ held in partnership with the Sustainability Practitioners Institute of Nigeria (SPIN). The event featured prominent ESG and sustainability experts such as Professor Kenneth Amaeshi, Dr. Muntaqa Umaru-Sadiq, and Carina Dunker, underscoring FirstBank’s commitment to advancing climate finance discussions.

With so much achieved and ongoing ESG/sustainability initiatives, what is the greatest impact of ESG at FirstHoldCo?

For the group, it is the net positive effect on the communities where its subsidiaries operate. For individuals, it is the tangible benefits from its financial solutions and CSR initiatives. For businesses, it is the sustainable practices FirstHoldCo champions, setting a standard for responsible corporate leadership.

February 27, 2025
AfDB, PowerGen, and Partners Launch Transformative Renewable Energy Platform to Scale Clean Energy Access Across the Continent

…Adopting a platform approach has the potential to accelerate efforts to connect the 570 million people across sub-Saharan Africa who currently lack access to electricity, according to data from IRENA

PowerGen Renewable Energy (PowerGen) has partnered with leading international investors to establish a scalable, distributed renewable energy platform targeting the deployment of 120 MW of renewable power, including battery energy storage solutions across Africa.

The platform is a collaboration between PowerGen and the Private Infrastructure Development Group (PIDG), the Danish Investment Fund for Developing Countries (IFU), EDFI Management Company, through its EU-funded Electrification Financing Initiative (ElectriFi), and the African Development Bank’s Sustainable Energy Fund for Africa (SEFA). The anchor commitment from PIDG was made through InfraCo, its investment arm, with concessional capital provided by PIDG Technical Assistance.

SEFA is a multi-donor special fund managed by the African Development Bank that provides catalytic finance to unlock private sector investments in renewable energy and energy efficiency.

Building on PowerGen’s thirteen-plus years of experience developing, implementing, and operating projects across Africa, the funds will support the deployment of a 120MW portfolio of renewable mini-/metro-grids and commercial and industrial (C&I) power solutions, inclusive of battery energy storage.

Initially focused on Nigeria, Sierra Leone, and the Democratic Republic of the Congo (DRC), the platform will be expanded within the wider region, leveraging PowerGen’s deep pipeline in combination with local developer and engineering, procurement and construction (EPC) partnerships. Adopting a platform approach has the potential to accelerate efforts to connect the 570 million people across sub-Saharan Africa who currently lack access to electricity, according to data from IRENA. The first closing of the transaction was reached in January 2025 and will catalyse additional equity and debt finance later this year.

Dr Daniel Schroth, Director of Renewable Energy and Energy Efficiency at the African Development Bank, said: “The African Development Bank’s contribution to PowerGen’s platform reflects our commitment to catalysing private investment in sustainable infrastructure and energy access in line with the objectives of Mission 300. This project will bring electricity to underserved areas in Nigeria, Sierra Leone, and the DRC, and generate significant economic activity and create numerous employment opportunities. It’s an excellent example of our strategy to drive development through targeted partnerships.”

PIDG’s Head of Investment Management for InfraCo, Claire Jarratt, said: “PIDG has worked with PowerGen for a number of years in Sierra Leone, and we are confident in their ability to develop, deliver and operate high-quality distributed energy infrastructure in challenging conditions. We are therefore delighted to anchor this new investment. We are pleased to be working with partners to support PowerGen to expand its offering across sub-Saharan Africa at a platform scale that has the potential to be truly transformational.”

Luke Foley, PIDG Deputy Head of Technical Assistance, added: “This investment epitomises the PIDG mandate. It builds on PIDG’s innovative use of its blended finance tools and reinforces its dedication to support the deployment of sustainable energy solutions, which are key to both combating climate change and fostering economic resilience in the region.”

IFU Investment Director, Henrik Henriksen, said: “There is a tremendous need for enabling access to clean energy that can assist underserved households and businesses in Africa to become more resilient to climate change and to provide them with opportunities for better living conditions without further increasing greenhouse gas emissions. Therefore, we are very proud to be a part of a joint investment enabling PowerGen to develop sustainable off-grid power solutions in sub-Saharan Africa. This aligns with our increased focus on supporting Africa’s transition to be more climate resilient.”

Rodrigo Madrazo Garcia de Lomana, CEO of EDFI Management Company, said: “Our initial investment in PowerGen Renewable Energy in 2019 has proven to be truly catalytic, paving the way for this significant funding round. We are excited to continue supporting PowerGen’s growth as part of this round, which showcases the ripple effect of our early commitment. PowerGen exemplifies how targeted early-stage funding can unlock transformative solutions for sustainable energy access in emerging markets.”

Aaron Cheng, CEO of PowerGen, said: “We are thrilled to announce this transformational next chapter to drive our vision of providing clean, reliable, and affordable energy across Africa. We are grateful to our terrific partners for their collaboration, and together, we look forward to contributing at scale to the energy transition and socio-economic growth across the continent.”

With funding secured, PowerGen is well-positioned to serve the energy needs of more than 68,000 households and reduce the cost of power for 7,000 businesses. Increasing access to reliable and affordable electricity is expected to enhance business productivity, create indirect jobs and drive economic growth.

January 16, 2025
FirstBank plans expansion to Ethiopia, Angola, Cameroon

As part of corporate plans to deepen its presence in Sub-saharan Africa, Nigeria’s leading commercial bank, First Bank is looking to expand into several other Adrican countries, including Ethiopia, Angola and Cameroon.

“There are a number of large economies with large banking pools that are of interest to us because their financial markets are opening up,” Deputy Managing Director, Ini Ebong told The Africa Report in December on the sidelines of the Africa Financial Industry Summit (AFIS).

“So, you look at countries like Ethiopia and Angola. In francophone West Africa, we want to expand our presence in places like Côte d’Ivoire and Cameroon. The market opportunity is there, and we seek to continue to exploit it,” said Ebong.

Ethiopia, Africa’s second most populous country, is poised to partially open its banking sector to foreign banks following a vote by lawmakers in December. The new banking law, passed by a majority in parliament, allows foreign banks to open subsidiaries in Ethiopia. Foreign firms will only be allowed to own 49% of shares, according to the Ethiopian news magazine, Addis Standard.

Speaking during a panel session at AFIS, Ethiopia’s central bank governor, Mamo Mihretu said the country had been working on the legislation that would finally open the banking sector to foreign competition over the past one year.

After the ratification of the legislation by the parliament, the largest economy in East Africa is “open for business” for any banks looking to come into the country, according to Mihretu.

Previously the executive director in charge of treasury and international banking before his appointment in June 2024, Ebong said that there are growing opportunities in markets across the continent with the expansion of financial systems similar to “what we saw in the early 2000s in some of the larger African markets”. “We believe it is an opportune time to take part in the phase of growth that we see,” said Ebong.

FirstBank, which has been operating in Nigeria for 130 years, began establishing subsidiaries in other African markets in 2011, when it acquired Banque International de Credit, one of the leading banks in Democratic Republic of Congo.

In November 2013, it snapped up the subsidiaries of International Commercial Bank Financial Group Holdings AG (ICBFGH) in The Gambia, Sierra Leone, Ghana and Guinea. It went ahead to purchase ICB Senegal the following year, completing its acquisition of West African assets and operations of ICBFGH.

FirstBank also has a subsidiary in the United Kingdom with branches in London and Paris, France, as well as a representative office in Beijing, China. Its parent company FBNHoldings saw its pretax profit for the first nine months of 2024 soar to N610.86bn ($395m) from N267.88bn in the corresponding period a year earlier.

Fitch Ratings said in July last year that FirstBank, Nigeria’s third-largest lender, represented 10.7% of banking system assets at the end of 2023. “Its strong franchise supports a stable funding profile and low funding costs. Revenue diversification is significant, with non-interest income typically exceeding 40% of operating income,” it said.

January 10, 2025
The OPEC Fund for International Development (OPEC Fund) approves close to US$1 billion in new development financing

…These projects will benefit countries across the globe and aim to bolster infrastructure, food security, renewable energy, economic resilience and governance in partner countries

The OPEC Fund for International Development (OPEC Fund) has approved close to US$1 billion in new development financing over the last quarter of 2024, including during its 190^th Governing Board meeting in Vienna today. These projects will benefit countries across the globe and aim to bolster infrastructure, food security, renewable energy, economic resilience and governance in partner countries.

OPEC Fund President Abdulhamid Alkhalifa said: “2024 has been a landmark year for the OPEC Fund, marked by a significant increase in project approvals and commitments across key sectors, helping to build resilience, develop sustainable infrastructure and address climate change. Our latest round of financing reflects the OPEC Fund’s ongoing dedication to delivering impactful solutions that drive meaningful change for millions of people. We remain focused on working with partners worldwide to tackle today’s challenges and build a better tomorrow.”

The OPEC Fund most recently approved projects since September 2024 (in alphabetical order):

Public Sector Operations:

Bangladesh: A €96.1 million loan will co-finance the Strengthening Economic Management and Governance Program with the Asian Development Bank (ADB). This initiative supports the government’s reform agenda to strengthen private sector development, trade logistics and governance. It aims to improve domestic resource mobilization, enhance public sector transparency and promote the diversification of exports.

Burkina Faso: A US$30 million loan will support the Human Capital Protection Project, which aims to provide 17 million free healthcare consultations, immunize one million children under age five and improve education for 91,000 teachers and 748,000 students. The initiative is co-financed with the World Bank.

Chad: A US$16 million loan will promote the Rice Farming Development Project in Chari-Logone, co-financed with BADEA. The project will benefit 2,000 households, with half the beneficiaries being women and youth, by enhancing agricultural productivity, rural infrastructure and agribusiness practices in selected provinces.

Comoros: A US$17.5 million loan will support the First Fiscal Management and Resilient Growth Development Policy. This program aims to improve debt management, enhance disaster resilience and strengthen the country’s economic stability and governance frameworks.

El Salvador: A US$30 million loan will co-finance the Rural Adelante 2.0 Program in partnership with the International Fund for Agricultural Development (IFAD). The program will support 74,000 smallholder farmers and rural families by improving agricultural practices, market access and climate resilience, ultimately boosting incomes and food security.

The Gambia: A US$20 million loan will fund the Rural Infrastructure Development Project (Phase 2), which will improve access to agricultural markets through enhanced rural infrastructure. The project will benefit local farmers and communities with interventions in agriculture value chains and improved connectivity to markets.

Honduras: A US$50 million loan will support the Women’s Empowerment and Social Inclusion Program promoting gender equality and empowering marginalized groups, including indigenous and Afro-descendant populations.

Kenya: A €60 million loan will co-finance the Economic Inclusion and Green Recovery Support Program with the African Development Bank. This initiative aims to create more inclusive and competitive markets, improve governance frameworks and promote green economic recovery.

Malawi: A US$20 million loan will co-finance the Mangochi–Mwanjati–Makanjira Road Project (Phase I). This project will benefit some 300,000 people by enhancing regional connectivity, reducing travel times and supporting economic development.

Mauritania: A US$40 million loan will help fund the Mauritania-Mali Power Interconnection and Related Solar Power Plants Development Project, alongside multiple development partners. The project will connect 80,000 households to electricity, promote renewable energy and reduce greenhouse gas emissions.

Montenegro: A €50 million loan, the OPEC Fund’s first engagement in the South-East European country, will support the Resilient Fiscal and Sustainable Development Program. The project focuses on improving fiscal sustainability, energy efficiency and waste management, while reducing greenhouse gas emissions.

Senegal: A US$60 million loan will fund the Senegal Food Sovereignty Strategy Support Project to enhance agricultural productivity, climate resilience and market access for 220,000 households with a focus on women and youth.

Sierra Leone: A US$30 million loan and a $2 million grant will support the Livestock and Livelihoods Development Program. This initiative will enhance livestock productivity, establish small and medium-sized enterprises and improve nutrition and income for rural communities. It is expected to create some 20,000 new jobs along the agricultural value chain and contribute to sustainable agricultural development.

Sri Lanka: A US$50 million loan will co-finance the Second Resilience, Stability, and Economic Turnaround Development Policy Operation to restore macroeconomic stability, improve fiscal governance and protect vulnerable populations.

Türkiye: A €50 million loan to the Climate Finance Facility Project will support investments in renewable energy, energy efficiency and climate adaptation. The project will be implemented by the Turkish Industrial and Development Bank (TSKB) and aligns with Türkiye’s net-zero target for 2053.

Uzbekistan: A €70 million loan will support the Second Inclusive and Resilient Market Economy Development Program. This initiative focuses on improving fiscal risk management, enhancing social inclusion and fostering private financing for climate action.

Private Sector Operations:

Côte d’Ivoire: A €35 million loan to a local bank will support on-lending to small and medium-sized enterprises (SMEs), addressing a financing gap for local companies. The loan will improve SMEs’ access to finance, fostering economic growth and job creation. Small enterprises represent nearly all businesses in Côte d’Ivoire.

Côte d’Ivoire: A €50 million participation in a trade finance facility will support the procurement and export of traceable cocoa, benefiting one million producers and five million people reliant on the cocoa sector.

Dominican Republic: A US$10 million loan to a local bank will support on-lending to micro, small, and medium enterprises (MSMEs) and women-led businesses, fostering economic growth and financial inclusion.

Egypt: A US$40 million loan will support the construction of two wind farms with a total capacity of 1.1 GW in the Gulf of Suez. This renewable energy project will provide clean energy to over 1.3 million households and contribute to Egypt’s goal of sourcing over 40 percent of electricity from renewables by 2035.

Ghana: A US$20 million participation in a secured trade finance facility will support the purchase, storage, and processing of cocoa beans. The facility will help expand access to premium cocoa in global markets.

Paraguay: A US$40 million syndicated loan to a local bank will support the growth of the bank’s SME loan portfolio and financing for agricultural projects, including women-led SMEs and green energy initiatives.

Uzbekistan: A US$30 million loan to Joint Stock Innovation Commercial Bank “Ipak Yuli” will expand lending to MSMEs, including women-owned businesses, fostering economic growth and job creation.

Technical Assistance Grant:

Regional (Asia and the Pacific): A US$1.5 million technical assistance grant will support the implementation of the Nature Solutions Finance Hub in partnership with the Asian Development Bank (ADB). The initiative aims to scale up investments in nature-based solutions to address biodiversity loss and climate change, targeting US$5 billion in financing flows by 2030.

December 10, 2024
SAYeTECH Wins the Meltwater Entrepreneurial School of Technology (MEST) Africa Challenge 2024, Securing $50,000 in Funding

…The MAC 2024 grand finale marked the culmination of the competition, which celebrated innovative AgriTech solutions driving change in West Africa

The Meltwater Entrepreneurial School of Technology (MEST Africa) has announced SAYeTECH as the winner of the MEST Africa Challenge (MAC) 2024. The MAC 2024 grand finale marked the culmination of the competition, which celebrated innovative AgriTech solutions driving change in West Africa. Hosted in partnership with the Norwegian Embassy in Accra, this year’s theme, ‘Find Your Soil,’ focused on AgriTech innovation in the region.

MAC 2024 attracted applicants from key markets in the West African Region including Benin, Cape Verde, Côte D’Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mauritania, Nigeria, Senegal, Sierra Leone, Mali, and Togo. Six standout finalists were selected to pitch their groundbreaking agricultural technology solutions, all aimed at enhancing regional productivity and sustainability.

SAYeTECH, a Ghanaian startup led by Theodore Ohene-Botchway, won the grand prize for its innovative agricultural machinery tailored to African conditions. It secured $50,000 in equity funding to scale its operations.

“The funding will enable us to scale production and reduce delivery lead times, providing smallholder farmers with the equipment they need to increase productivity,” said Ohene-Botchway.

As MEST continues to deepen its influence on Africa’s tech startup landscape, the MEST Africa Challenge remains the continent’s premier pitch competition for emerging tech entrepreneurs. The competition is designed to provide the ideal environment for tech innovators and startups to grow and succeed.

“AgriTech innovation thrives when it’s rooted in the right environment. ‘Find Your Soil’ is about helping innovators find the ecosystem where they can grow. Through the MEST Africa Challenge, we provide the visibility, partnerships, and support to help them succeed,” said Ashwin Ravichandran, Portfolio Advisor, MEST Africa.

MEST Africa is committed to creating wealth and jobs in Africa by fostering digital skills, supporting startups, and providing access to global networks.

December 4, 2024
Starlink halts new Nigerian sign-ups

…SpaceX’s satellite Internet service, Starlink, has temporarily stopped accepting new orders for its residential kits in Nigeria.

SpaceX’s satellite Internet service, Starlink, has temporarily stopped accepting new orders for residential kits in Nigeria, pending a price increase approval from the Nigerian Communications Commission (NCC).

Last month, Nigerian subscribers received an email about a price increase, stating that Starlink’s standard residential plan with a 1TB fair usage policy would now cost 75,000 Nigerian Naira (US$45.60) per month, up from N38,000 ($23.10), though the price for Starlink kits would remain unchanged.

However, that announcement was not well received, prompting the company to put the price increase on hold while it addressed regulatory concerns. The price increase was meant to have taken effect at the end of October 2024.

The regulatory pitfalls and the country’s high inflation rate seem to have led to Elon Musk’s company to stop accepting new orders for its residential kits.

According to the Starlink website, it is working closely with the country’s regulators to make adjustments.

Starlink has temporarily stopped accepting new orders for its residential kits in Nigeria. (Source: Starlink website)

“We’re committed to providing high-speed internet in Nigeria and are working closely with regulators to make adjustments that will improve the customer experience,” a Starlink spokesperson said.

“Until these changes are approved, we are placing new Residential orders on hold,” the company stated.

Starlink African operations

Even though Nigeria was the first country to have Starlink services, the company has had better fortunes in other countries.

Starlink recently had to halt new sign-ups in some Kenyan counties due to high demand.

The growth in Kenya led to Elon Musk’s company launching a rental option in August 2024, allowing Kenyans to rent its kits for 1,950 Kenyan Shillings (US$15) per month.

Kenya is not the only African country where Starlink is thriving: Since its launch in September 2024 in Zimbabwe, Starlink’s equipment has also sold out in the country’s capital of Harare, as well as other surrounding areas.

Since entering Zimbabwe, the company has made a significant impact on pricing of Internet services in the Southern African nation.

Moreover, the company has been expanding its reach and earlier this month, Niger’s ruling military Junta struck a deal with Starlink to expand coverage in the poorly connected country.

As much as Starlink is doing well in some countries, it is still experiencing problems in other nations, such as Cameroon, where authorities in April 2024 banned the import of Starlink satellite Internet kits and seized equipment at the border.

Starlink has only recently made some progress in South Africa, after battling regulatory challenges for some time.

In October 2024, South African Minister of Communications and Digital Technologies, Solly Malatsi announced plans to amend a law mandating that global communications companies like Starlink must have 30% ownership by historically disadvantaged groups to obtain an operating license in the country.

It will be interesting to see whether or not the NCC will fold and grant Starlink its price increase in Nigeria.

Starlink is also active in Burundi, Botswana, Ghana, Benin, Rwanda, Malawi, Mozambique, Zambia, Madagascar, Sierra Leone, South Sudan and Eswatini.

November 22, 2024
Over $370 million secured in Engineering, Procurement, and Construction deals at Afreximbank’s Lagos workshop

…More than 180 participants, representing EPC companies, financial institutions, law firms and government agencies from West Africa as well as Egypt, Angola and Uganda, were in attendance

During the recently held African Export-Import Bank (Afreximbank) Intra-African Engineering, Procurement and Construction (EPC) workshop in Lagos participants formalised business deals totalling over US$370 million, a significant step towards empowering African contractors.

The deals, signed during the workshop held in Lagos on 28 October, included a US$300-million Global facility agreement to Hassan Allam of Egypt, a US$45-million term sheet to Pavifort Construction of Sierra Leone and a US$25-million term sheet to Afric Cement of Burkina Faso.

Organised to help address the significant gap in Africa’s infrastructure spending, currently standing at over $100 billion annually, which is traditionally awarded to non-African contractors, the workshop brought together key stakeholders to explore transformative solutions to empower African contractors to compete for and secure large-scale projects within the continent.

Addressing the participants, Ayman El-Zoghby, Director, Trade and Corporate Finance Unit in Afreximbank’s Intra-African Trade Bank, said that the Bank was actively working to address the infrastructure gap by empowering local contractors to take more prominent roles in large-scale projects. He said Afreximbank, had launched the Afreximbank-EPC Tenders Platform to connect contractors with project opportunities while offering them critical financial support throughout project lifecycles.

According to Mr. El-Zogby, Afreximbank is dedicated to enhancing local content through skills development, technology transfer and fostering of partnerships between African and international firms as an essential step for strengthening Africa’s contractor base and achieving long-term, self-sustained infrastructure growth.

In addition, recognizing the role of sub-sovereign governments in enabling trade and investment, Afreximbank was engaging with government entities to better understand their specific needs, educate them on providing stable environments and supporting debt strategies in order to provide African contractors with stronger negotiation power and credibility on the global stage, he added.

“This workshop underscores our commitment to transforming Africa’s infrastructure landscape by empowering local contractors to lead in major projects. By equipping African firms with the financial, technical and risk management tools necessary to compete effectively, we are not only closing the infrastructure gap but also fostering sustainable economic growth, job creation and regional integration which will strengthen Africa’s position in the global EPC market,” Mr. El-Zogby explained.

Mr. Moctar Mando, Chairman, COGEB Group International noted: “I am grateful to Afreximbank for their trust and support. This signing marks a significant milestone for COGEB Group International in its diversification strategy, centred on complementary activities. This financing is dedicated entirely to the construction of the AFRIC CEMENTS cement plant which will help strengthen my Group’s leadership within its ecosystem.”

Mr. Alimu Sanu Barrie, Chief Executive Officer, Pavifort Al Associates noted: “The EPC Workshop empowered us to appreciate the challenges indigenous African companies face and Afreximbank’s interventions in solving these challenges through financing, capacity building and networking. We are extremely grateful to the Bank for the signed Term-Sheet of $45 million. The funds will boost the infrastructural and economic development of Sierra Leone and greatly enhance the capacity of our company.”

Eng. Mahmoud El Essawy, Managing Director, Hassan Allam Construction (Egypt) noted: “I would like to express my sincere gratitude to Afreximbank for its unwavering support in addressing the infrastructure financing needs of Africa. The $200 million facility extended to Hassan Allam Holding, recently increased by an additional $100 million, has been instrumental in supporting our efforts to undertake key projects that promote economic growth and resilience. As we navigate the challenges in the Engineering, Procurement, and Construction (EPC) sector across the continent—such as regulatory complexities, financing gaps, and the need for sustainable practices, Afreximbank’s commitment to facilitating essential funding stands as a testament to their vision for a prosperous Africa. Their support not only empowers us as a group but also strengthens the entire ecosystem needed to meet Africa’s infrastructure demands.”

Panellists speaking at the event explored financing solutions, strategies for enhancing local content and opportunities to reshape Africa’s infrastructure landscape among other key themes.

More than 180 participants, representing EPC companies, financial institutions, law firms and government agencies from West Africa as well as Egypt, Angola and Uganda, were in attendance.

The event was also graced by representatives of the Lagos State Government, members of the diplomatic corps, officials of the Nigeria Customs Service and several business leaders. Key outcomes included the audience’s familiarization of the EPC Platform, designed to connect African contractors with project opportunities, and the signing of EPC-related deals worth over $370 million, underscoring the workshop’s role in fostering partnerships and financial engagement across the continent, which was followed by a lively post-event business networking session. The event highlighted Afreximbank’s ongoing commitment to enhancing local content and capacity building, setting a strong foundation for future workshops and strategic initiatives aimed at advancing the African construction sector.

November 14, 2024
Accelerated Partnership for Renewables in Africa Kicks off Investment Forum in Nairobi

…APRA Ministers and Partners Gather to Align International Cooperation and Scale Up Investments to Match Africa’s Renewable Energy Goals and Potential

The Accelerated Partnership for Renewables in Africa (APRA) Investment Forum officially kicks off today in Nairobi, convening ministers, investors, developers, and financial institutions to foster open dialogue, further the development of a robust project pipeline and mobilise large-scale investments to accelerate the energy transition and support the development of green industries within APRA countries.

Under Kenya’s leadership, the forum marks a significant milestone in implementing the Nairobi Declaration, and the Call for Action to boost the continent’s renewable capacity to 300 GW by 2030, contributing to the COP28 goal to triple global renewable power by the end of the decade. The partnership with APRA countries including Ethiopia, Ghana, Kenya, Namibia, Rwanda, Sierra Leone, and Zimbabwe, offers unique opportunities to fulfil obligations, deliver on pledges made before, and support global and local ambitions for climate action.

In addition to high-level panels and technical discussions, the three-day forum will host matchmaking sessions between project developers and financial institutions, along with a project exhibition, to bring global exposure to renewable energy projects from across the continent. It will also showcase real-world case studies, focusing on both the energy transition and the creation of economic opportunities through industries centred around renewables.

“The success of global climate objectives is intrinsically linked to Africa realising its vast renewable energy potential,” said IRENA Director-General, Mr. Francesco La Camera. “APRA sets a new benchmark for international cooperation, ensuring that support from the Global North for Africa’s energy transition fully complements the continent’s own priorities. The partnership’s inaugural investment forum in Nairobi marks a milestone in this alignment, uniting key stakeholders to mobilise finance and turn priorities into tangible outcomes.”

For his part Hon. J. Opiyo Wandayi, Kenya’s Cabinet Secretary for Petroleum and Energy, stated: “Under President Ruto’s leadership, which championed both the Nairobi Declaration and APRA, Africa’s energy transition is gaining unprecedented momentum. The APRA Investment Forum is a significant milestone, mobilising critical investments to support Africa’s sustainable development at home while accelerating progress on global climate and energy transition goals.”

Mr. Joseph Nganga, Vice President for Africa at the Global Energy Alliance for People and Planet said: “APRA’s inaugural forum builds on the momentum of the 2023 Africa Climate Summit and the Africa

Leaders Nairobi Declaration, accelerating progress toward Net Zero and unlocking crucial climate finance. By aligning with the efforts of the World Bank, African Development Bank, and partners like GEAPP, the Rockefeller Foundation, and SEforAll, we are committed to connecting 300 million unelectrified Africans to clean, affordable power by 2030—fuelling economic growth, job creation, and climate resilience. APRA serves as a vital platform, uniting investors, governments, and project developers to create an ecosystem that fast-tracks low-carbon electrification across the continent.”

APRA’s membership will expand to engage more countries with high ambitions for renewable energy and green industrialisation in Africa and beyond.

Backed by IRENA, which serves as the APRA secretariat, the partnership is supported by Denmark, Germany, the United Arab Emirates and the United States, in addition to technical, advocacy and philanthropic actors including GEAPP and the Rockefeller Brothers Fund.

October 15, 2024
African Development Bank, African Union Launch Landmark Initiative to Eradicate Malnutrition Across Africa

…The inaugural two-day consultation for the West Africa region, held in Dakar, Senegal, marks the beginning of an ambitious journey to develop Africa’s first-ever Multisectoral Nutrition Policy Framework (MNPF)

The African Union Commission (AUC) and the African Development Bank Group’s African Leaders for Nutrition (ALN) initiative, in collaboration with the government of Senegal, have launched a series of regional consultations that aim to transform nutrition policy and financing and end malnutrition across Africa.

The inaugural two-day consultation for the West Africa region, held in Dakar, Senegal, marks the beginning of an ambitious journey to develop Africa’s first-ever Multisectoral Nutrition Policy Framework (MNPF) and an investment target for combating malnutrition.

The consultation concluded having successfully gathered the data needed to develop MNPF and investment targets, while also building consensus on interventions to reduce stunting, wasting, anaemia, and overweight among women, children, and adolescents. Additionally, the event generated actionable sector-specific insights and recommendations to inform the MNPF’s development and ensure effective implementation across all sectors.

The event, which held from 19 to 20 August 2024, brought together experts in healthcare, nutrition, education, agriculture, and finance from nine West African countries, as well as representatives of the governments of Senegal, Togo, Ghana, Nigeria, Gambia, Guinea-Bissau Liberia, Sierra Leone, and Côte d’Ivoire among others. Civil society organisations, UNICEF and the World Food Programme of the United Nations, and development partners Scaling Up Nutrition Movement, the Canadian International Development Agency, and other key nutrition stakeholders were also present.

The initiative is an outcome of a resolution passed during the African Union’s 41^st Executive Council meeting held in Lusaka, Zambia in 2022, and which called for the development of a multisectoral policy framework, and a nutrition investment target to ensure adequate funding for nutrition initiatives.

Ibrahima Gueye, Director of Cabinet for the Prime Minister of Senegal, Ousmane Sonko, and President of the country’s National Council for Nutrition Development attended the event’s opening ceremony. He said, “Increased funding for nutrition starts with greater awareness of its importance by our leaders. It is imperative that heads of state and government understand that every dollar invested in nutrition is a dollar invested in the future of our nations. However, this understanding must be followed by…stronger ownership of nutrition goals and a firm commitment to mobilising sustainable resources for nutrition and using funds in a timely and effective manner. This regional concertation marks a crucial step in this process.”

Gertrude Kara, the African Union Commission’s Technical Advisor for Nutrition Policy, said, “This first regional consultation is a critical step towards developing a unified, continent-wide approach to nutrition policy and financing. The insights gathered here will inform similar consultations across Africa, ultimately leading to a comprehensive framework to improve nutrition outcomes for millions across the continent.”

George Ouma, the African Development Bank’s ALN Coordinator, said, “By bringing together experts from various sectors, we’re fostering a holistic approach to nutrition. This consultation will not only shape policies in West Africa but will also inform our continent-wide strategy for improving nutrition outcomes.”

The consultations will also serve to drum up support for African countries to participate in the Nutrition for Growth Summit, scheduled to take place in France next year. The Summit is a global event held every four years in the Olympic host country to mobilise commitments and accelerate progress toward ending malnutrition by 2030.

Participants at the consultation pledged to work collaboratively to prioritise high-impact interventions across the health, social protection, water and sanitation, education, and agriculture sectors, and create a model for other regions to follow.

This regional consultation for West Africa is the first in a series that will cover all five regions of Africa, culminating in the development of the multisectoral nutrition policy framework and investment target for the entire continent.

The African Leaders for Nutrition (ALN) Initiative, spearheaded by the African Development Bank and championed by African leaders, works to galvanise political will and significant investments to end nutrition. Since it was officially endorsed on January 31, 2018 by the AU Assembly of Heads of State and Governments, ALN has secured critical commitments from governments across Africa, leading to impactful policy changes and cross-sector collaborations.

August 25, 2024
British International Investment announces 2023 Annual Review with £725 million of new sustainable development commitments in Africa
…Increase in African investments represent 61 per of BII’s total commitments for the year

British International Investment (BII), the UK’s development finance institution and impact investor, announced today that it had increased its commitment to African partners with £725 million of new sustainable development investments, from a global total for the year of £1.31 billion.

BII has a mission to help countries escape poverty by providing impact investments to support the development of thriving private sectors. It invests in the people and places most in need of capital that typically receive the least from private investors.

The scope of BII’s activity last year was published today in its Annual Review, entitled Creating Impact Together.

Of the total, £724.9 million went to support African businesses, compared with £692 million or 55 per cent of total investments in 2022. BII’s capital now supports – directly and indirectly – 1,580 companies that directly employ nearly a million people in 65 countries.

BII’s Africa portfolio now totals $5.6 billion across 812 businesses, which directly provide 499,232 jobs and pay $1.46 bn in taxes.

Climate change continues to be one of the biggest threats to global development, with people living in some of the world’s poorest countries among the most vulnerable to its impact.

Out of BII’s total commitments in 2023, £449 million (37 per cent) was classified as climate finance – taking the total over the last two years to over £1 billion. BII’s climate finance target over the course of its current five-year strategy period is 30 per cent.

BII has backed a wide range of companies that are vital to economic development and improving peoples’ lives. Its investments have covered sectors such as food and agriculture, financial services, and green and digital infrastructure. New investments have included:
- AFEX: BII invested £21.8 million in AFEX, a leading commodities platform that currently operates over 200 warehouses in Nigeria, Kenya and Uganda and serves over 450,000 farmers. The investment will help build 20 modern warehouses to enable up to 200,000 more farmers to access low-cost storage and maximise sales from crop harvests.
- Planet Solar: BII invested £8.5 million in Planet Solar to provide clean, affordable solar power in Sierra Leone, where only 23 percent of people have access to electricity. It will be Sierra Leone’s first large-scale solar project to be connected to the grid. It will enable more power to flow to industries and communities in the capital city, Freetown, the Western region, and four other areas throughout the country.
BII’s total net assets increased to £8.5 billion (£8.1 billion in 2022) while the portfolio grew to £7.3 billion (£6.9 billion in 2022). The main reason for this portfolio growth in 2023 was a higher pace of drawdowns compared with realisations and foreign currency valuation gains. BII’s overall financial result was a loss after tax of £44.0 million (£167.7 million profit in 2022), a loss of 0.5 per cent on net assets over the year (2.2 per cent gain in 2022). The portfolio generated a £71.5 million return (£285.6 million return in 2022), a portfolio gain of 1.1 per cent (4.8 percent gain in 2022).

BII seeks returns of 2 percent across its portfolio, measured on a rolling seven-year basis. This measure is consistent with its mandate to invest to support the economic stability that will improve the lives of millions of people. The company remains ahead of this financial return hurdle with a seven-year weighted average annual portfolio return of 5.2 per cent.

Diana Layfield, Chair at British International Investment, said: “In a world facing an ever-growing climate challenge, and where inequality and access to basic water, power and economic development remains a profound human challenge, our role is as important as it has ever been.

“We are pleased to have committed £1.3 billion during a challenging year when levels of foreign direct investment are falling in many of the countries and regions that need it the most. In Africa, FDI amounts to just $40 per person, compared with $651 in North America.”

Chris Chijiutomi, Managing Director and Head of Africa for BII, said: “We continue to make a real difference to the lives of millions of people living in Africa on behalf of the British tax payer. Our 2023 investment performance underlines our dedication to supporting our partners across the continent as they play a key role in creating vital jobs and services and building economies that are more adaptable and resilient to the impacts of the climate emergency.”
July 17, 2024
On Africa Day, Access Holdings Celebrates Africa’s Greatness, Innovations and Achievements
In line with the theme for the 2024 celebration of Africa Day, “Educate an African Fit for the 21st Century: Building Resilient Education Systems for Increased Access to Inclusive, Lifelong, Quality, and Relevant Learning in Africa”, Access Holdings is celebrating the positives across the continent. This year’s theme is a poignant reminder of Africa’s diversity and the need to address the educational challenges faced across the continent.

Africa is a vast and complex continent of over 1.2 billion people speaking more than 3,000 languages across 54 countries. Despite shared challenges, each nation contributes uniquely to the continent’s rich cultural and historical mosaic. Unfortunately, education remains a significant hurdle. According to UNESCO and the African Union, over a quarter of school-age children in Africa were out of school in 2023, and 90% of children were unable to read or write by age ten. This stark reality underscores the need for urgent educational reforms to equip future generations.

In alignment with this educational drive, Access Holdings will once again host the Access Bank/UNICEF Charity Shield Polo Tournament starting from the Children’s Day Anniversary on May 27, 2024, in Kaduna. This event, which will culminate at the Fifth Chukker Polo & Country Club on June 9, will bring together over 150 school pupils and their teachers for a day filled with sports, art activities, and messages promoting child welfare, such as “Stop Child Abuse” and “Childhood Isn’t Meant to Be a Nightmare.” As the largest charity polo tournament in Africa, this event highlights Access Bank’s commitment to supporting underprivileged children, having donated over N700 million towards building schools and providing social amenities for surrounding communities in the past seven years.

Beyond education, there are numerous aspects of African heritage and achievements that deserve celebration:
- Angola: Known for its vast oil reserves, Angola is also home to the ancient Tchitundo-Huluvilo Caves, a significant cultural landmark showcasing, prehistoric art.
- Botswana: Celebrated for its stable democracy established by Sir Seretse Khama, Botswana is also renowned for producing world-class athletes like Amantle Montsho, a former world champion sprinter.
- Cameroon: Home to the towering Mount Cameroon and the legendary musician, Manu Dibango, Cameroon has made significant contributions to global music and boasts rich natural beauty.
- Democratic Republic of Congo (DRC): Known for its rich copper reserves and the majestic Congo River, the DRC is also the birthplace of Patrice Lumumba, a pivotal figure in Africa’s fight for independence.
- Gambia: Famous for its beautiful beaches and vibrant culture, Gambia is also making strides in education and tourism, becoming a notable destination in West Africa.
- Ghana: A beacon of democracy and economic growth in West Africa, Ghana is also celebrated for its rich history, including the Ashanti Kingdom and significant cultural festivals.
- Guinea: With its rich mineral resources, particularly bauxite, Guinea is also known for its vibrant music and dance traditions that play a crucial role in cultural identity.
- Kenya: Renowned for its breathtaking landscapes and wildlife, Kenya is a leader in environmental conservation and home to world-renowned long-distance runners.
- Mozambique: Known for its stunning coastline and rich cultural heritage, Mozambique is also recognised for its vibrant arts scene, including music and dance.
- Nigeria: Africa’s most populous nation, Nigeria is celebrated for its diverse cultures, Nollywood film industry, and significant contributions to literature and music, including figures like Chinua Achebe and Fela Anikulapo-Kuti. Nigeria is also home to Dangote Petroleum Refinery, the continent’s largest petroleum refinery.
- Rwanda: A symbol of resilience and progress, Rwanda has made remarkable strides in economic development and technological innovation, becoming a model for other African nations.
- Sierra Leone: Known for its rich history and natural beauty, Sierra Leone is also making progress in education and healthcare, contributing to a brighter future for its citizens.
- South Africa: Famous for its stunning landscapes and diverse cultures, South Africa is a global leader in mining and a symbol of freedom and reconciliation, epitomised by Nelson Mandela.
- Zambia: Renowned for its spectacular Victoria Falls, Zambia is also making significant strides in economic development and conservation efforts.
Access Holdings is proud to operate in these African nations and contribute uniquely to the continent’s narrative, from historical landmarks to modern achievements in various fields.

As we continue to consolidate the discourse around the 2024 Africa Day theme, the Group calls on Africans to unite and invest in our incredible human resources even as we work to take our rightful place on the table of deliberations of global significance.
May 27, 2024
Gavi and lower income countries launch drive to reach more than 100M children in 2024; largest ever push in Africa
- Gavi is supporting over 20 countries aiming to reach more than 100 M children with Measles and Rubella Vaccines in 2024 through catch-up and follow-up campaigns.
- The drive comprises the largest number of African countries targeted in one calendar year to date.
- From December 2022 to November 2023, 51 countries experienced large or disruptive measles outbreaks, compared with 33 countries in 2022
Amid an increase in global measles outbreaks and mortalities, Gavi, the Vaccine Alliance is working with governments, communities and partners to reach up to 100M children with Measles and Rubella Vaccines in 2024 through catch-up and follow-up campaigns. This represents 22 country applications approved to-date that are aiming for campaigns in 2024.

Countries expected to roll out in 2024 include Benin, Burkina Faso, Cambodia, Côte d’Ivoire, Eritrea, Ghana, Guinea, Guinea Bissau, Kyrgyzstan, Lao PDR, Liberia, Madagascar, Mali, Mauritania, Mozambique, Nepal, Rwanda, Senegal, Sierra Leone, Sudan, Tanzania and Zambia

Timely, high coverage campaigns reaching un- and under-immunised children are key to closing growing immunity gaps, particularly in fragile and conflict settings. The ambitious target comes at a time when there has been an alarming rise in cases, outbreaks and mortalities following pandemic-related drops in vaccine coverage. Globally, routine immunisation coverage for the first dose of Measles Containing Vaccine (MCV1) is still 2pp below pre-pandemic levels and recent data published by WHO-CDC shows that from December 2022 to November 2023, 51 countries experienced large or disruptive measles outbreaks, compared with 33 countries in 2022. Of the countries that experienced recent outbreaks, 26 were on the African continent.

Countries that have already launched preventive measles and rubella campaigns in 2024 include Eritrea, Nepal, Tanzania, Burkina Faso and Mali, as well as Sudan which is rolling out an MR introduction campaign amid an ongoing conflict.

Gavi’s history of supporting measles vaccinations

In the current strategic period (2021-2025), Gavi Alliance’s total investment in Measles and Rubella for the 5.1 period (2021-2025) is US$753m. The funds are allocated to providing countries with support for their routine immunization (including the introduction of a second dose of measles or MR and the introduction of rubella containing vaccine) as well as for the implementation of preventive campaigns, and outbreak response through the Measles & Rubella Partnership’s Outbreak Response Fund.

In December 2023, Gavi’s Board in recognition of the need for exceptional support to countries to close immunity gaps created during the COVID-19 pandemic, approved an initial amount of US$ 290 million to provide fully funded doses for the “Big catch-up” to help countries catch-up children who missed routine vaccinations including measles and rubella. In addition, Gavi has been working with partners to support countries with decision-making on switches to 5-dose vials, which can reduce healthcare workers’ hesitation to open a vial and both increase coverage and reduce wastage in certain contexts.
May 15, 2024
Nigeria Accedes to the Establishment Agreement for Afreximbank’s Fund for Export Development in Africa (FEDA)

…The signing of the FEDA Establishment Agreement is expected to pave the way for the ratification of the Agreement in due course

The Federal Republic of Nigeria has acceded to the Establishment Agreement for the Fund for Export Development in Africa (FEDA), the development impact investment platform of the African Export-Import Bank (Afreximbank). Nigeria is the 16th nation to do so, and this underscores the increasing backing the Fund enjoys among African nations.

This announcement comes three decades following Afreximbank’s establishment in Nigeria, a key milestone that boldly demonstrates Nigeria’s continued commitment to supporting Afreximbank and FEDA’s missions. FEDA sees new memberships as critical to broadening its scope of interventions and its mission of delivering long-term capital to African economies, with a focus on industrialization, intra-African trade and value-added exports. The signing of the FEDA Establishment Agreement is expected to pave the way for the ratification of the Agreement in due course. This will in turn bolster FEDA’s interventions in Nigeria.

Professor Benedict Oramah, President of Afreximbank and Chairman of the Boards of both Afreximbank and FEDA, commented: “We extend our sincere appreciation to the Federal Republic of Nigeria for the signing of the FEDA Establishment Agreement. This significant achievement further strengthens the already robust partnership between Afreximbank and Nigeria, one of the Bank’s foremost supporters. The partnership will enhance investments in sectors critical to the development journey of Nigeria.”

Other countries who have acceded to FEDA’s Establishment Agreement include Rwanda, Mauritania, Guinea, Togo, South Sudan, Zimbabwe, Kenya, Chad, Republic of the Congo, Gabon, Sierra Leone, São Tomé and Príncipe, Equatorial Guinea, Ghana and Egypt.

May 4, 2024
Feature: Artificial intelligence (AI) could create a turning point for financial inclusion in Africa

…AI tools can analyse data from client discussions, producing legal documents in simple language and at a fraction of the cost of what it would typically take to draft a contract

It’s difficult to imagine a time before the widespread adoption of mobile technology in Africa – particularly where financial services are concerned. For millions of unbanked people, transactions were limited to cash, postal services or even the barter system. Now, in much the same way as mobile payments completely disrupted the status quo, AI has the potential to propel the fintech industry into a new era of financial inclusion. And perhaps most exciting of all is that Africa is not simply catching up with AI-powered developments, but surging ahead with innovative solutions that have considerable implications for the underbanked.

Already, homegrown fintech companies have completely changed the way people in Africa transact, helping to reduce reliance on cash transactions.

Innovative payment solutions have revolutionised access to essential services, such that millions of people can now afford everyday necessities like airtime. In fact, research from McKinsey has shown that these items are now available to lower-income households at up to 80 percent less of the cost associated with traditional banking players.

And when one considers that half of Africa’s population is still unbanked or underbanked, we can begin to appreciate just how dramatic an impact the fintech sector has had on the very nature of financial services in Africa.

The net result in Kenya, for example, is that the adoption of digital payment solutions helped increase financial inclusion by as much as 25 percent in just 15 years.

A cloud-powered payment revolution

More recently, cloud technology has created a whole new realm of possibilities for fintech companies looking to accelerate financial inclusion, helping them scale their operations, create operational efficiencies and spin up new innovations overnight.

African payment giant, Flutterwave, is a case in point, having recently shifted its legacy infrastructure to Microsoft Azure with a view to expanding its operations and processing high volume payments at scale. As one of the continent’s safest and most reliable payment companies, Flutterwave has been at the forefront of Africa’s payment revolution. Its multiple payment modes, including local and international cards, mobile wallets and bank transfers, continue to change the game for many African people and businesses on a daily basis.

AI ushers in a new era

Now, building on the progress enabled by the cloud, the world is undergoing a new wave of technological transformation, driven by AI. Suddenly, businesses don’t need vast datasets or powerful computers to benefit from the technology, with most of the necessary compute power now available through cloud providers. And as the barriers to AI adoption have fallen away, so new tools are giving rise to substantive productivity gains and revolutionising industries such as fintech.

While AI is providing champions of financial inclusion like Flutterwave with the tools they need to expand their reach, it’s also helping to fast-track access to financial services in a vast number of different ways.

Traditionally, cost has been a significant barrier for local SMEs when it comes to the adoption of digital financial services. In fact, it’s estimated that around 90 percent of transactions in Africa are still cash-based, and this is often because cash transactions don’t carry any fees. However, the ability for AI to lower the cost of the entire ecosystem of financial services – from fraud detection to risk management optimisation and compliance improvements, can lead to substantial operational efficiencies and cost savings, which can ultimately be passed on to the end-user.

Banks, for example, can make their services more affordable to their customers by rolling out AI-powered chatbots to handle routine queries, at the same time sparing them from having to travel to a bank branch.

Already, fintech companies are helping their customers to improve their financial literacy by using these same chatbots as affordable advisors. Drawing on the power of AI, these bots can produce personalised recommendations such as budgeting strategies so that the user can make a more informed financial decision. Mosabi, a company, in Sierra Leone has even gamified the process to help customers elevate their financial behaviours.

What’s more, AI tools can analyse data from client discussions, producing legal documents in simple language and at a fraction of the cost of what it would typically take to draft a contract, extending access to these services in terms of both understanding and affordability.

Real-time lending at scale

Perhaps most important of all, many fintech companies have access to vast amounts of data, meaning that when AI is introduced to the equation, they have formidable ability to offer real-time digital lending on a major scale.

M-KOPA, for example, leverages Microsoft’s AI services to manage lending risk and provide financial forecasting. The company provides digital financial services to underbanked consumers by combining digital micropayments and IoT technology, drawing on cloud technology to process over 500 payments per minute, and making it possible for 3 million people across Africa to access essential services such as solar power systems, digital loans, health insurance and smartphones.

The use of AI has helped M-KOPA achieve significant increases in customer repayment performance – particularly for the follow-on products and services that M-KOPA offers to customers once they have successfully repaid their initial loan. In fact, more than 440,000 additional credit lines have been made to customers following payment of their first product.

With the digital payments market maturing quickly in Africa and AI rapidly gaining traction among fintechs on the continent, the implications for accelerated financial inclusion are significant.

The question is – how do we ensure fintechs are able to fully realise the AI opportunity?

Much of the answer lies with capacity building, from infrastructure to connectivity, skills and essential digital tools. With improved internet access, fintechs have the potential to access more data, and with larger volumes of data available, they can provide more innovative services.

It’s for that exact reason that Microsoft continues to make significant investments to bolster the continent’s digital capacity – from new connectivity solutions through our Airband Initiative to essential cloud infrastructure through our enterprise-grade datacentres in the region. Through key partnerships, such as our collaboration with Safaricom, we’re upskilling hundreds of thousands of developers to build new entirely new digital ecosystems.

Regulation is another hurdle that must be overcome to accelerate AI-powered payments in Africa. Though more African countries are expected to introduce regulations to guide AI development and deployment, relatively few have strategies and policies in place at a national level. In fact, many FSI organisations in Africa view the risk of new safety and regulatory requirements as one of the biggest stumbling blocks to wider implementation of the technology, hindering greater progress in financial inclusion.

Finding new ways of collaborating across industry and government is critical to the advancement of AI in financial services. To this end, Microsoft continues to engage with the African Union and national governments in priority markets to help strengthen our collective role as responsible stewards of AI.

For some time now, Africa has been at the forefront of the payment technology revolution – empowering millions of people with access to financial services. Imagine what more could be done through the unprecedented power of AI? To turn that opportunity into reality tomorrow, we must begin by ensuring the groundwork for AI transformation is done today.

April 18, 2024
Nigeria Seeks Joint West Africa Regional Protection of Undersea Cables

Following recent undersea cable cuts that challenged connectivities in many countries in the West African region, Nigeria has called for a coordinated and multilateral approach by the region to protect shared telecommunications infrastructure, and diversify connectivity to ensure uninterruptible connections.

Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, made the submission in a statement delivered at the 21st West Africa Telecommunications Regulatory Assembly (WATRA) Annual General Meeting (AGM) which held in Freetown, Sierra Leone, from the 19th to 22nd March 2024.

Dr. Maida, whose message was delivered at the WATRA AGM by the Deputy Director, Public Affairs of the Commission, Nnenna Ukoha, stated that the recent submarine cable cuts that resulted in nationwide outages on multiple networks in 12 African countries has raised the urgent need for the subregion to establish a mechanism to protect itself from damage to submarine infrastructure and its attendant impact on the subregion.

Maida referred to a report by Cloudflare, an IT service management firm, which indicates that about six countries, including four West African countries, were still suffering from the outages caused by the submarine cable cuts, to buttress the call

“Securing telecom infrastructure is paramount for fostering Foreign Direct Investment (FDI) and enhancing investor confidence in the West African sub-region. The reliability and resilience of telecommunications networks are crucial factors that investors consider when evaluating regional opportunities.

“By ensuring the security of these vital assets, we can attract more investment, spur economic growth, and enhance our competitiveness on the global stage. A secure telecoms infrastructure not only facilitates efficient communication and connectivity but also signals a commitment to safeguarding critical assets essential for business operations. This assurance can significantly boost investor confidence and create a conducive environment for sustainable economic development,” he said.

According to him, “the impact of events like cable cuts highlights the need for a coordinated, multilateral approach to protecting shared infrastructure across our member nations.”

Maida therefore, proposed “the urgent need to set up a framework for joint monitoring, risk mitigation, and emergency response procedures for the submarine cables that pass through the sub-region.

“Further to this, we recommend that the WATRA Working Group on Infrastructure expand its mandate to spearhead the development of a comprehensive strategy to safeguard the subregion’s telecommunications networks and associated infrastructure thereby proactively bolstering resilience through improved disaster response protocols to better insulate ourselves from future disruptions.”

He advised that the goals of the Working Group would be to strengthen sub-regional infrastructure resilience, promote the diversification of the sub-region’s connectivity, conduct regular capacity assessments, and facilitate the designation of telecommunications infrastructure as critical national infrastructure in member countries.

The West Africa Telecommunications Regulators Assembly, was established in 2002 as a common platform for national telecommunication regulatory authorities in 16 member states to promote the adoption of regulations that stimulate investment in telecommunication infrastructure to deliver more affordable, accessible, faster and secure communication services to citizens.

At the 21st WATRA Annual General Meeting, issues pertaining to accessible and affordable telecommunication services in the sub-region were discussed, including improved consumer protection, quality of service, roaming and conflict resolution for consumers.

A major highlight of the AGM was the reelection of Nigeria’s Engr. Yusuf Aliyu Aboki, as Executive Secretary, for a second term in a unanimous vote by the member countries.

The EVC of NCC commended Engr. Aboki for his firm, inclusive and visionary leadership, which saw the successful delivery of WATRA’s 2022 — 2025 Strategic Plan, noting that Nigeria and indeed the sub-region was proud of the milestones he has achieved during his first tenure.

He further advised the WATRA Executive Secretary to build on the achievements of his first tenure, through stronger partnerships and deeper collaboration while advancing the interests of the sub-regional body.

March 24, 2024