Category: AFRICA

  • President Ramkalawan addresses the 5th United Nations Conference on the Least Developed Countries (LDC5) Plenary Session

    President Ramkalawan addresses the 5th United Nations Conference on the Least Developed Countries (LDC5) Plenary Session

    Sunday 5th March Doha, Qatar: The President of the Republic of Seychelles, Mr. Wavel Ramkalawan earlier this afternoon delivered his general debate statement before the 5th United Nations Conference on the Least Developed Countries (LDC5 presently being held in Doha, Qatar.

    With the participation of over 40 Heads of State and Government and several high-level officials, the LDC5 which is set to identify actions and partnerships at the highest possible level, including Heads of State and Government, to deliver on the LDC5 proposed agenda.

    During his statement, the President laid emphasis on the importance of collective approach required to attain set goals and targets. He stated that although Seychelles does not form part of the least developing countries, being present at the Conference shows that Seychelles stands united with other fellow SIDS and African countries in advocating and understanding their needs.

    “Our world has changed drastically since the 4th United Nations Conference on the Least Developed Countries and the adoption of the Istanbul Political Declaration and Programme of Action for the Least Developed Countries for the Decade 2011-2020. Since then, only three countries have graduated from LDC status. In an age where our economies, priorities and challenges are interlinked, no country should be left behind. All Governments and partners must respond decisively to address the challenges that we collectively face. Twenty per cent of LDCs are Small Island Developing States. And two-thirds of LDCs are African,” said President Ramkalawan.

    He continued, “Seychelles is not an LDC. We have graduated to the High-Income Status.  However, our presence here is a sign of solidarity, regional and global support for our fellow SIDS and Africans and a strong expression of seeking greater understanding and cooperation. No state should be punished for progress. Let not the so called “graduation” be another hurdle in meeting the needs of people and its communities”

    The President underlined the fact that LCDs and the Small Island Developing States do face similar challenges and are vulnerable to similar factors. He noted that they do have potential for rapid growth and development which can only be realised through, “equal access to resources and opportunities that lead to economic growth and stability and improve the lives of citizens”. Furthermore, President Ramkalawan explained the impact of climate change and the difficulties for the LDCs to achieve its Sustainable Development Goals.

    “Such inequality has resulted in a development imbalance, worsened by the unprecedented levels of greenhouse gas emissions, leaving our climate and ecosystems in peril. Developing countries stand to be disproportionately affected by the effects of climate change and must now face the challenges of global warming for which we share minimal responsibility. The goal of graduating from the LDC category and achieving the Sustainable Development Goals has never been more difficult in the face of such existential crises. A different set of challenges manifests itself in trying to maintain the status of “graduation” and in pursuing an upwards trajectory. Support needs to be extended in order for such countries to sustain their progress and thus ensure that traditional donor-recipient relationships are transformed into mutual partnerships,” said the Head of State.

    In advancing the support for finance, President Ramkalawan called for the support of the adoption of a Multidimensional Vulnerability Index to benefit vulnerable countries. Furthermore, he placed emphasis on the South-South cooperation to strengthen and sustain long term partnerships.

    “That is why, at every opportunity, I advocate for the global adoption of a Multidimensional Vulnerability Index. This offers a targeted approach that will not only complement but improve the efficacy of development cooperation, permitting countries in vulnerable situations to access concessional financing and address our needs. I also wish to emphasise the importance of South-South cooperation. Solidarity and unity between countries of the South will provide for stronger and enduring partnerships. And collective advocacy of our shared interests will contribute to mobilising resources, and ensure they are distributed equitably to serve our developmental needs,” he said.

    To conclude, President Ramkalawan, from the SIDS and LDC’s perspectives, expressed his hope that the Doha Programme of Action is used to its full advantage and that every country embraces progress and sustainable development so that they could all gather in the future stronger and more resilient.

    “SIDS and LDCs share similar concerns but from different perspectives. And it is imperative that we work together to mobilise maximum, effective, equitable, long-term support to lock in growth and prosperity. It is also imperative that we take ownership and primary responsibility for our respective countries and people through good governance, inclusiveness, transparency, respect for human rights, the eradication of corruption and in standing as strong advocates in defending climate change, what I call the Seychelles way, that we will embrace progress and sustainable development”

    “It is my hope that, in the not too distant future, we shall have a gathering of strong and resilient states, with poverty and under-development no longer an affliction of the many,” he concluded.

    During the LDC5 Conference in Doha, world leaders are gathered with the private sector, civil society, parliamentarians, and young people to advance new ideas, raise new pledges of support, and spur delivery on agreed commitments, through the Doha Programme of Action (DPoA).

    Whilst at the Conference the President will also engage in various high-level thematic roundtables, and a series of parallel and side events on various thematic priorities of the DPoA which are directly relevant to Seychelles.

    Source:(State House News,Seychelles)

  • Glencore ordered to pay $700 million by US judge in bribery case

    Glencore ordered to pay $700 million by US judge in bribery case

    Reports Bob Van Voris in The case, US v. Glencore, 22-cr-00297, US District Court, Southern District of New York (Manhattan).

    Glencore Plc was ordered by a federal judge in New York to pay $700 million as a criminal punishment for a global bribery scheme orchestrated by the Swiss-based commodities trading and mining giant.

    US District Judge Lorna G. Schofield on Tuesday imposed the sentence, following the terms of a plea deal with prosecutors entered when Glencore pleaded guilty in May to a single count of conspiring to violate the Foreign Corrupt Practices Act. The company must pay a fine of $428.5 million and $272.2 million in criminal forfeiture.

    The penalty, one of the largest in a foreign corruption case, is part of the $1.5 billion Glencore agreed to pay to resolve bribery and market-manipulation probes in the US, UK and Brazil. Glencore units agreed to plead guilty to a list of charges ranging from bribery and corruption in South America and Africa, to price manipulation in US fuel-oil markets.

    Glencore was guilty of “a very serious offense,” Schofield said, though he noted the company’s efforts to cooperate with the government and to beef up compliance procedures after receiving a federal grand jury subpoena in 2018.

    Prosecutors claimed Glencore paid more than $100 million in bribes to government officials in Brazil, Nigeria, the Democratic Republic of the Congo and Venezuela. They said Glencore made $315 million from the scheme.

    In addition to the fine and forfeiture, Glencore will spend five years on probation, continue with improvements to its ethics and compliance programs and employ an outside monitor for three years.

    Glencore conducted an internal investigation, eventually disciplining more than 20 people, a lawyer for the company said during the hearing Tuesday in Manhattan federal court. Glencore produced more than 1 million documents, many from outside the US, and hired a forensic accounting firm to look into suspect trading activity.

    On Monday, Schofield ruled Glencore must pay $29.6 million to the founders of a company that provided healthcare services in 11 African countries, but was forced to shut down. Crusader Health claimed it was driven out of business after Glencore bribed a public official in the Democratic Republic of the Congo to throw out a lawsuit brought by Crusader against a Glencore subsidiary.

    In September, the commodity firm was sentenced in Connecticut to pay $486 million in fines and forfeitures in a case in which Glencore admitted conspiring to manipulate oil-price benchmarks. In November, a London judge imposed a £276 million ($333 million) penalty for Glencore’s effort to bribe government officials for access to oil cargoes across Africa.

    Source: (Bloomberg News)

     

     

     

     

     

     

     

  • Equatorial Guinea’s New Minister of Mines & Hydrocarbons Is a Competent Leader Taking the Reins in a Challenging Era — Here’s What Needs to Happen Next

    Equatorial Guinea’s New Minister of Mines & Hydrocarbons Is a Competent Leader Taking the Reins in a Challenging Era — Here’s What Needs to Happen Next

    Antonio Oburu Ondo, former Managing Director of national oil company, GEPetrol, has been named Minister of Mines and Hydrocarbons. He is succeeding well-respected leader Gabriel Mbaga Obiang Lima, who assumed the role of Ministry of Economy and Planning.

    By NJ Ayuk, Executive Chairman, African Energy Chamber

    Equatorial Guinea’s cabinet has seen a changing of the guard.

    Antonio Oburu Ondo, former Managing Director of national oil company, GEPetrol, has been named Minister of Mines and Hydrocarbons. He is succeeding well-respected leader Gabriel Mbaga Obiang Lima, who assumed the role of Ministry of Economy and Planning.

    We at the African Energy Chamber are confident that Minister Ondo will do an excellent job. He brings years of industry experience to the table and has worked extremely hard to strengthen Equatorial Guinea’s national oil company. We do not doubt that Minister Ondo will be successful in fostering growth in the energy sector and the national economy as a whole provided that energy industry stakeholders — from international oil companies (IOCs) to the government to other African energy ministers —  join us in supporting him.

    We Need a Strategic Response to Natural Decline of Maturing Oil Fields

    It’s no secret that Equatorial Guinea’s energy industry faces some challenges. For one, production in existing oil and gas fields has been in decline. It is not because of the action, or the inaction of anybody: This is a natural decline and to be expected in any production site.

    What is needed right now is reinvestment in energy growth. And to achieve that, Equatorial Guinea will need to create an enabling environment for new oil and natural gas exploration projects. Equatorial Guinea must remember that it is competing for capital and investment with Gabon, Guyana, and other countries that offer attractive fiscal terms to entice IOCs. If Equatorial Guinea can’t match that alluring environment, it will be difficult to sustain oil and gas production.

    Consider this: There have been no major discoveries in Equatorial Guinea since the introduction of the 2006 hydrocarbon law. In late 2021, Obiang Lima said Equatorial Guinea was revising that law. He recognized that fact that the country needed to give greater consideration to the needs of, and current challenges, facing energy companies if it was going to convince them to make significant investments there.

    “Our hope is that it will enable us to attract more regional and international energy participants and incentivize investment across the entire value chain,” Obiang Lima said at the time. “That will allow us to realize the potential of our offshore natural gas industry and become increasingly competitive in the gas sector.”

    The decision to revise the law was the right choice. I encourage Equatorial Guinea to complete those efforts promptly. Meanwhile, the Ministry of Hydrocarbons and Mines should be taking practical steps to demonstrate that Equatorial Guinea is investor friendly. Oil majors will notice, for example, how the ministry handles the upcoming departure of ExxonMobil, which has announced plans to leave the country, and West Africa, after its license expires in 2026.

    While it may be hard to watch the departure of this excellent partner for the country, it is equally important that Minister Ondo recognize the value of a clean break and an orderly transition to their successor. A diplomatic response will enhance Equatorial Guinea’s reputation as a good country for energy companies.

    What’s more, while there’s no question of sunsetting wells, let’s not overlook the successful producers in the country who are working to ensure the longevity of aging fields and investigating new finds. Trident Energy and Kosmos Energy, for instance, continue to have successful output in the Ceiba conventional oil field: Although production peaked in 2002 at 51.7 thousand barrels per day (bpd) of crude oil and condensate, the field continues to account for some 4% of the country’s daily output. Meanwhile, U.S.-based VAALCO Energy and Atlas Petroleum are successfully proceeding with the development of the Venus discovery in Block P and there is no longer an exclusive operation. All signs point to a promising yield: The results of its initial discovery well and reservoir modeling anticipate 15,000 bpd from the two development wells and injector well.

    Minister Ondo must continue to establish and promote fiscal incentives for investors like these to drive up further production in Block P and other promising hydrocarbon-rich zones. Creating and maintaining ongoing positive relations with these and other companies can go a long way toward developing a reputation as a country serious about its hydrocarbon industry.

    Gas Is the Way Forward

    I believe Equatorial Guinea’s 1.5 trillion cubic feet of natural gas will become the driving force in the country’s energy industry. To enable natural gas production and monetization to lead to economic development and industrialization, Minister Ondo needs to embrace a pragmatic approach to welcoming credible investors, eliminating red tape, and making good deals.

    With this in mind, Minister Ondo will likely find that closing the deal with Chevron regarding a joint development of the YoYo and Yolonda natural gas fields in Equatorial Guinea and Cameroon is going to be critical. Developing this cross-border gas mega-hub could truly transform the economy of both the nation and the region. The LNG market continues to be important and Equatorial Guinea is well positioned to be an active player.

    Let’s also consider Golar LNG and the Fortuna floating liquefied natural gas (FLNG) vessel owned by New Fortress Energy. The partners are negotiating about EG-27 (formerly Block R) to develop an easier, fast-tracked system for moving LNG into the market. This a difficult project and requires really highly skilled companies and deep financial pockets to make this work.  The discussions center around bringing LNG from Nigeria or Cameroon to be processed in Equatorial Guinea. Such developments are critical now more than ever, and the ministry would be wise to do everything in its power to make them happen.

    Keep it Local… But Balanced

    Another challenge Minister Ondo faces is to prioritize keeping markets stable, taking a very market-driven approach both at home and abroad. It’s a delicate balancing act: creating an atmosphere where companies will want to invest in Equatorial Guinea while, at the same time, advocating for the needs of local people and businesses.

    This is not the time to leave local content behind. Minister Ondo will want to make certain that his country establishes a platform that develops its homegrown businesses and businesspeople. This is more than just enabling the local residents and businesses to take commissions from service companies – it is about ensuring that they become an integral part of the industry. Indeed, local content should be seen more as enterprise building and management.

    At the same time, Minister Ondo will be wise to follow in his predecessor’s footsteps in denouncing the currency control rules that the Bank of Central African States (BEAC) adopted in June 2019. While the BEAC’s intention was to promote financial transparency and ensure that oil revenues stay within local economies and local banks, these stringent restrictions create a very unwelcoming environment for foreign investors by causing transaction delays and preventing the repatriation of proceeds. These are job killing regulations and it is bad for jobs, bad for local companies and bad for investments.

    “The FX regulations adopted in June 2019 make it very difficult for our companies to compete and create employment, and render our business environment very unattractive for foreign investors,” Obiang Lima said shortly after their enactment, while calling on the industry to take immediate action to encourage a reversal of the regulations.

    Perhaps a collaboration of the Ministry of Mines and Hydrocarbons and the Ministry of Economy and Planning is in order – a collaboration of outgoing and incoming ministers who can use their expertise and political savvy to overcome these kinds of job-killing and industry-damaging regulations.

    I am confident that Minister Ondo has what it takes to make it work. Companies can rest assured: He may be new to the office, but he’s not new to the game. We have all grown accustomed to his predecessor, and now we all need to welcome new ideas from the new minister. Let’s offer him our full support as he works to help Equatorial Guinea’s energy industry get its groove back.

     

  • Niger Trade Minister Urges Diaspora Nigerien Common Front

    Niger Trade Minister Urges Diaspora Nigerien Common Front

     

    Trade Minister Alkache Alhada and Guests

    Report: Mohammed Abu, Niamey 

    Niger’s Trade Minister, Mr. Alkache Alhada, has urged Nigeriens in the West African region and beyond, to foster a united front, leverage their collective strength and be able to play a more impactful role in the country’s development agenda.

    Hon Alhada was speaking during a special reception for local West African participants on the sidelines of the recently ended UE-Niger Business Forum.

    It was intended to formally welcome and briefly engage CEOs and senior executives who had represented their various companies back home in Ghana, Nigeria, Ivory Coast among others.

    The Minister specially appreciated the presence of Ghanaian participants at the UE-Niger Business Forum. He recounted the historical lead role of the first Republican government of Ghana in fostering of African solidarity and unity while underscoring its relevance in today’s development context.

    He also proposed that, they could pull financial resources together and possibly, establish a bank in Niger as their input towards the achievement of Niger’s development goals.

    The participating Ghanaian companies were namely, Afro-Arab Co.Ltd,Ghana,CEO,Alhaj Awwal,Sando Man Transport Ltd,Ghana,CEO,Mr.Fuseini Musah,Al Firdaws Goup of Companies,CEO,Alhaj Abdul Razak,NMW Ltd,Ghana,CEO,Mr.Desmond,Tanko Forex Bureau Ltd,Ghana,CEO,Alhaj Pro-Umar Tanko/Paramount Chief of the Greater Accra Zerma Community, among others.

    Alhaj,Chief  Pro-Umar Tanko,in his submission,appreciated the hard work and great support the Niger Ambassador to Ghana, Her Excellency,Hajia Salamatou Goga,gave to participating companies from Ghana.

    He  also appreciated the selflessness  and high sense of responsibility of Alhaj Illolo Abubakar,Chairman,PNDs  Tarayya Party, West Africa who also doubles as the Special Advisor to the President  of the Republic of Niger.Alhaj Illolo, Chief Tanko said, played an important role towards  the participation of chiefs and other Nigeriens in the sub region during the Business Forum.

    Thursday Lunch Meeting

    A lunch meeting was also hosted by the Trade Ministry in Niamey on Thursday for various participants from Nigeria, Ghana and Ivory Coast who had as yet not departed for their respective countries. This afforded them an opportunity to better acquaint themselves with each other and also post Forum networking.

    Hon Alhada in an address, expressed his gratitude and  appreciated his quests for attending the Forum from the beginning to the end. He also  disclosed that, His Excellency, President Mohamed Bazzoum was also very exited to learn about their participation while also urging them to have trust in government’s development agenda. He assured them of government’s protection and commitment to support them establish their businesses in Niger without hurdles.

    Interactions between the Minister and his guests and networking among them ,brought out the importance for diaspora Nigeriens in West Africa and other parts of the world, including non-Nigeriens West Africans with business interest in Niger, to collaborate and contribute their quota meaningfully towards Niger’s development.

    Chief Pro-Umar Tanko in a submission , touched on the need for consideration of  Sovereign Sukuk(Zero interest Islamic bonds) issuance to address public sector funding gap.

    Then also, the vital importance of  government support for first entrant companies into Niger while  adding that, being in Niamey has afforded them the opportunity to appreciate the situation better and that  they would  engage the authorities on any matters arising after an appraisal of their trip. .

    The Minister’s passion for a common front and how to concretize it, prompted  Chief Tanko  to propose the creation of a WhatsApp group platform. This he said should be the initial step that would also serve as a rallying point and conduit for post forum interactions and networking among them.

    The e-group proposal was officially endorsed resulting into the creation of the Business Forum UE-Niger WhatsApp group platform with an initial 28 membership numerical  strength.

    The indefatigable Mm Goukoye Rekkia,2nd Counselor, Embassy of the Republic of Niger to Ghana, who led the Ghana Delegation to the Forum, worked around the clock to ensure everything was was well with all.

  • Niger’s Value Proposition Unveiled

    Niger’s Value Proposition Unveiled

    …..As UE-Niger Business Forum ends in Niamey

    Report: Mohammed Abu, Niamey

    The first two-day EU-Niger 2023 Business Forum ended on Wednesday in Niamey with the announcement of the creation of a European Union-Niger Chamber of Commerce including expression of interest by some potential investors to do business in Niger, as the major outputs.

    The EU-Niger chamber of commerce will not only serve as a mouth piece for European companies wishing to establish themselves in Niger, but also, as a secretariat-point of contact for business, as well as a medium for continuity of dialogue with the authorities relating to important business issues.

    Series of expertly moderated panel discussions by eminent panelists from Niger, Europe and the West African sub region covering a number of topical issues, was held alongside multi-industry sessions involving key Niger government institutions.

    Multiple industry sessions presentations by Director Generals of various Niger Ministries involving, Agriculture, Energy, Hydrology and Sanitation among others, unveiled on-going government programmes and projects, potential investors could buy into.

    In order to maximize the utilization of Niger’s huge agricultural potential, government launched the creation of agro-industrial Poles programme that is to involve commercialization of primary production via irrigation fed farming alongside commercialization of processing for exports thereby positioning Niger as an agro products driven economy.

    Aside that, exploring Niger’s rich renewable energy potential to beef up the country’s energy mix so as to support industrialization, maximizing of the benefits from her rich base metals and industrial minerals potential among others, are initiatives government is pursuing towards unleashing a new dawn in Niger.

    The event which drew over 900 participants from Niger, the West African sub-region, Europe and beyond, also recorded the participation of three Secretaries of State, two officials from European countries, about 400 companies worldwide 70 out of which were reported to be European.

    Organized jointly by the European Union in collaboration with the Niger Ministry of Commerce, the event was aimed at deepening business engagement between the EU and Niger, West African sub-region.

    Bringing the event to a close, Mr. Alkache Alhada, the Niger Minister of Trade, noted, “These exchanges, have enabled all the investor partners to realize the enormous potential that Niger abounds in, as well as, the facilities that could be offered to them on the administrative, tax and financial levels, for those who wish to settle in Niger.

    The Minister also disclosed that according to the echoes that have reached them, several investors have commented on expressing their interest either in settling in Niger to develop their business and/or, forging partnerships with Nigerien companies.

    In this regard, Mr. Alkache added, ”I would like to be delighted with this progress which will allow us in the years to come to really launch the industrialization of Niger”.

    Noting with great satisfaction the major outputs of the event, Mr. Alkache thanked the European Union delegation for its full involvement and the various panelists who had shed light on the potentials and enabling business environments thus, leading to the success of the event.

    The Ambassador of the European Union in Niger, Mr. Salvador, on his part also noted with satisfaction the success of the two-day event. He thanked the Trade Minister and all members of his team for the organization and for the tireless work during six months’ project.

    “I also think that Niger’s potential comes out in value after this Business Forum and we are very proud of it,” noted, Mr. Salvador while adding, ”Niger is emerging from this event, which is particularly visible on the radar of investors in a regional context which remains cloudy”.

    Earlier in his opening speech, the President of Niger, His Excellency, Mohamed Bazoum, appreciated both participants and organizers of the meeting which was organized in the wake of the round table of the PDES 2022 – 2026 held recently in Paris, for ”the interest you take in investments in Niger, as evidenced by the extent of your participation and the intensity of your mobilization”.

    Posting a rhetoric question, ‘What is not said about the handicaps of my country Niger? ‘President Mohamed Bazoum submitted that, the crucial issue wasn’t the denial of the handicaps or challenges, “but to change perspectives to move us towards our development goals by overcoming obstacles”.

    According to President Bazoum, “change of era takes place following catalytic crises”.

    “This time we are witnessing the conjunction of crises, climatic, environmental, geopolitical, economic, financial, security, migration, values ​​and meaning.

    “If these large-scale systemic crises spare no part of the world, they seem to have met in Niger, thus confirming that our country is a multidimensional geostrategic node critical for the stability of Africa, and even from Europe.

    ”If Niger has handicaps it also has considerable assets. Its geographical position, its wealth of natural resources including water, its arable land and considerable livestock, many sources of energy, minerals, its human and civilizational heritage, and its young population, make it a hinge between the North and the South of the African continent and between Europe and Africa, and a pivot of stabilization and commercial exchanges.

    Companies and investors from the European Union, in addition to financial capital, President Bazoum noted, have technological and industrial capital which the Nigerien economy so badly needs.

    Today, we can say that the European Union and Niger are each in the strategic neighborhood of the other, ‘noted President Bazoum while also insisting on the urgent need for Europe and Niger, Africa, to develop a win-win partnership in a constantly changing world”

    He also intimated, “the painful global transition we are going through is accompanied by opportunities to be seized, together, Europeans and Nigeriens, Europeans and Africans, to give us the best possible chances in the new era that is coming-digitalization of economies across the globe.

    Ms. Chrysoula Zacharopulou, Secretary of State to the Minister for Europe and Foreign Affairs, in charge of development, the Francophonie and France’s international partnerships on her part, that they were fully aware of the challenges faced by Niger, like many countries on the African continent but that notwithstanding she noted, “beyond the challenges, Niger and Africa are all lands of opportunities”, adding, “We want to publicize these opportunities. We want to talk about Jobs, Investments, Innovations and New Partnerships”.

    ”Dear Nigerien friends, we are strongly and permanently committed to your side. We are determined to support your country in the face of the many challenges it is bravely facing”, declared Ms. Chrysoula while affirming, ’’ We want to support inclusive growth, which develops a private sector that provides jobs, and above all, which improves the well-being of the Nigerien population.

    Ms. Chrysoula intimated that her presence here, with her European colleagues, is a strong message while also taking note of the words of a colleague, a French civil servant, who had said that she was enthusiastic at the idea of ​​ “further strengthening our partnership with your youth and your civil society, whose energy and dynamism amaze us every day”.

    Ms. Chrysoula also acknowledged the remarkable presence of high personalities from other European countries and even beyond, at the opening ceremony of the Business Forum.

    They included, among others, the Director General of Sustainable Development Policies at the Ministry of Foreign Affairs, European Union and Cooperation of Spain, Mrs. Eva Del Hoyo Barbolla, the Secretary of State for Foreign Affairs of Portugal, Mr. Francisco André, of Mr. Konstantinos Frangkogiannis, Secretary of State for Foreign Affairs of Greece, who moreover all intervened during this opening ceremony as well as the Nigerien Minister of Trade, Mr. Alkache Alhada, Mr. Moussa Sidi Mohamed President of the Chamber of Commerce and Industry of Niger and The Ambassador, Head of the Delegation of the European Union in Niger, Mr. Salvador ¨Pinta Da Franca.

     

     

     

  • Climate change: Africa has a major new carbon market initiative – what you need to know

    Author: Jonathan Colmer

     Assistant Professor of Economics, University of Virginia

    Published: January 23, 2023 4.55pm SAST

    Climate finance for the African continent got a boost at the 2022 United Nations Climate Conference (COP27), with the launch of the African Carbon Markets Initiative. This aims to make climate finance available for African countries, expand access to clean energy, and drive sustainable economic development.

    Led by a 13-member steering committee of African leaders, chief executives and industry specialists, the initiative promises to expand the continent’s participation in voluntary carbon markets.

    Carbon markets are trading platforms which allow individuals, firms and governments to fund projects that reduce emissions (instead of reducing their own emissions).

    Kenya, Malawi, Gabon, Nigeria and Togo have already indicated their intention to collaborate with the market.

    Our mission is to share knowledge and inform decisions.

    About us

    Climate projects include reforestation and forest conservation, investments in renewable energy, carbon-storing agricultural practices and direct air capture. In return for funding projects like these, investors receive carbon credits – certificates used to “offset” the emissions that they continue to produce.

    The African initiative’s goal is to produce 300 million new carbon credits annually by 2030, comparable to the number of credits issued globally in voluntary carbon offset markets in 2021.

    However, there is considerable scepticism about whether carbon offset credits do mitigate climate change.

    Two important issues

    In assessing the effectiveness of carbon credits, one important concern is the concept of “additionality”. Emission reductions or removals are “additional” if the project or activity would not have happened without the added incentive provided by the carbon credits. For example, if a landowner is paid to not cut down trees, but had no plans to cut them down in the first place, the project does not deliver additional emissions savings. The landowner is paid for doing nothing and the buyer’s emissions are not offset.

    Providing carbon credits to projects that would have been implemented anyway delivers zero climate mitigation, and can result global emissions that are higher than if the credits hadn’t been issued. This is a serious challenge for carbon offset markets because additionality is not measurable, despite industry claims. While project managers may claim that they are unable to proceed without funding, there is no way of knowing whether these claims are true.

    A second issue is permanence. Carbon offsets have to be permanent because carbon emissions remain in the atmosphere for hundreds of years. It is almost impossible to guarantee that emissions will be offset for this length of time. But it depends on the type of offset project.

    There are two types of carbon offset project:

    • those that reduce the amount of carbon that is emitted
    • those that remove carbon from the atmosphere.

    In the case of carbon reduction projects, overall emissions remain positive. Examples of carbon reduction credits include investments in renewable energy. Even though the supplier of the carbon credit is not generating any emissions, the buyer continues to emit, and so the overall level of emissions is positive. Carbon neutrality – net-zero emissions – cannot be achieved using carbon reduction credits.

    There should be more funding available for carbon reduction activities in Africa, but investors should not receive carbon credits to offset their own emissions when supporting these activities. Such investments would be philanthropic – for the good of the planet, not to balance the carbon accounting books.

    Carbon removal projects do, however, have the potential to deliver a permanent net-zero emissions outcome. Direct air capture projects, which use chemical reactions to extract carbon dioxide from the atmosphere and store them deep underground, can meet this goal. The cost of direct air capture, however, remains very high.

    Forest growth, a less costly type of carbon removal project, is less permanent. Landowners may commit not to cut down trees, but wildfires, disease, and other disruption events can release much of the stored carbon back into the atmosphere. There is still value to forest carbon credits, but they can’t guarantee permanence. Forest projects provide “carbon deferrals”. Additional forest growth projects remove carbon from the atmosphere for a fixed amount of time. There is value to this delay because it can reduce peak warming and gives society more time for the costs of decarbonising technologies to fall. While there is value to these carbon deferral projects they should not be used to generate carbon credits that are used to permanently offset the emissions produced through economic activity.

    Goals of the market

    The African Carbon Markets Initiative has bold ambitions. It will attract investments in Africa by firms, consumers and governments in countries that have historically contributed the most to climate change. Whether these investments result in any meaningful climate benefit, however, is unclear. Time will tell.

    Existing carbon offset projects lack credibility. This doesn’t mean that carbon credits can’t be more useful in future. Being transparent about what projects actually deliver, rather than what we hope they deliver, is paramount. Given the limited resources available to mitigate climate change, we need more than good intentions.

    Source:(The Conversation)

     

  • Transition to Green Energy Must be Sensible, Pragmatic and Rational, Says Afreximbank’s Rene Awambeng

    Transition to Green Energy Must be Sensible, Pragmatic and Rational, Says Afreximbank’s Rene Awambeng

    Speaking during the Invest in African Energy Reception in London, Afreximbank’s Global Head of Client Relations, Rene Awambeng provided insight into what the institution’s recommendations are regarding Africa’s climate agenda
    LONDON, United Kingdom, January 27, 2023/ — The Invest in African Energy Reception (https://AECWeek.com/news/) kicked off in London with opening remarks by African Energy Chamber Executive Chairman, NJ Ayuk, and Rystad Energy Co-Founder and Chief Analyst, Per Magnus Nysveen, followed by an opening address delivered by Rene Awambeng, Global Head of Client Relations at the African Export-Import Bank – a partner of the event. During his address, Awambeng provided insight into what the institution’s recommendations are regarding Africa’s climate agenda.

    Firstly, Awambeng emphasized that Africa only accounts for less than 3% of global emissions, and therefore should be recognized as not the cause of excessive carbon, but rather, the victims of climate change. At the same time, considering the many oil-dependent economies in Africa, with GDP measuring as high as 25% for some, the continent should be able to establish a sensible plan for a just and fair transition.

    “We must use this opportunity to promote an approach to reducing global carbon emissions while sustaining current livelihoods which Africa is championing. The transition to green energy must be sensible, pragmatic and rational. It must recognize the enormity of the continent’s unmet economic development aspirations, the necessity to take urgent actions to address its ever-widening development gap and the continent’s vulnerability to climate change,” Awambeng stated.

    As such, Awambeng detailed a strategy towards a just and inclusive transition. Key aspects include supporting the implementation of the African Continental Free Trade Agreement (AfCFTA) to reduce emissions associated with shipping, moving away from exporting raw minerals that support the green economy and scaling up domestic value chains; enhancing foreign capital to finance the just transition and establishing African-based financing mechanisms to support industry growth.

    “We must give ourselves a breather to use the natural resources at our disposal to urgently deliver our development needs and simultaneously deploy these to promote investments in green energy. We must proactively and collectively intensify our efforts to implement the AfCFTA, as it is a clear path to mitigating carbon emissions while sustaining lives and livelihoods. We must all support the creation of the Africa Energy Transition Bank so that the continent can take control of its own future. We must back the African Energy Chamber (https://EnergyChamber.org/) so that it can intensify its thought leadership on this subject and ensure that Africa’s voice is heard as loudly as possible on issues that matter to us regarding energy.”

    Meanwhile, Awambeng emphasized the need to take urgent action to address the development gap in Africa and the continent’s vulnerability to climate change. In addition to energy investment, focus needs to be placed on climate investment, with the continent requiring up to $277 billion per annum to combat climate change. With Africa currently receiving less than $28 billion of the required funds, Awambeng urged the developed world to honor its commitments to climate financing and incentivized African stakeholders to create their own mechanisms and instruments to honor such commitments.

    “Afreximbank is supporting the promotion of a number of such innovative instruments and programs that can catalyze global finance and help close the funding gap for the necessary climate action while not sacrificing the development priorities of the continent. The Liquidity and Sustainability Facility represents one such innovative instrument…Initially launched by UNECA at COP26 in Glasgow, we expect to conclude the first deal in the course of this conference, to be fully funded by the Afreximbank.”

    In closing, Awambeng reiterated the need for a just transition in Africa, one that prioritizes carbon emission reduction and economic growth, simultaneously.

    “While decarbonization is at the center of the global climate agenda, it is evident that Africa, which has hardly carbonized, cannot contribute much to decarbonization. Africa’s priority is to find the money to fight poverty and fund mitigation and adaptation investments.”

    Distributed by APO Group on behalf of African Energy Chamber.

    SOURCE
    African Energy Chamber

    Distributed by :APO Group

  • Africa Must end Hunger and Food Insecurity!!!

    Africa Must end Hunger and Food Insecurity!!!

    Editor’s Pick

    Indeed, the continuous lack of food production self-sufficiency and the increasing food import dependency in many African countries to supplement domestic production shortfalls amidst big agriculture resources potential, is worrisome.

    Africa as a continent has all it takes to be self-sufficient in crops, aquaculture, mariculture, livestock and poultry production. The continent’s world’s food basket status potential is therefore not in the least dispute.

    With over 60 percent of global total arable land potential, more than enough marine, fresh and ground water resources, Africa has no excuse to feel threatened with food insecurity as a result of geopolitical tensions in other parts of the world.

    The importance and relevance of the recently ended Feed Africa Summit held by the Senegalese government in collaboration with the African Development Bank(AfDB), can therefore be best appreciated against this background.

    In this light, we at the Ecoenvironews Africa magazine do take special note of the AfDB’s pragmatic action of committing USD10 billion to agriculture and rolling out transformative initiatives, including a $1.5 billion emergency food production facility in 2022 to help African countries avert a potential food crisis following Russia’s war in Ukraine.

    The bank’s President Adesina call on more than 34 heads of states,70 government ministers, the private sector, farmers, development partners, and corporate executives to work out compacts that would deliver food and agriculture transformation at scale across Africa was on point.

    For us at the Eco-environews, Africa, we wish to add that, the collective action must be driven by purposely crafted Strategic Action Plans spelling out realistically achievable set goals and targets with time lines and religiously work to achieve them so as to unlock the continent’s potential to become a global food breadbasket.

    We also believe that Africans generally need mindset and attitudinal change in how we deal with this most important issue of agriculture. We ought to re-define and appreciate agriculture as a science and business and not simply as a mere source of livelihood.

    The minds of African youth in some countries, ought to be cleared of the mental and psychological effect of agriculture being presented as an option for school drop-outs.

    Africa must take maximum of her most youthful continent in the world status to unleash a dawn of African agripreneurs. Such youthful entrepreneurs who are in gainful self-employment, would also, as employers, be contributing their quota towards addressing the ballooning youth unemployment scourge.

    Predominantly rain-fed and Small-farmer holder driven agriculture production and productivity in many African countries also ought to change for the better.

    Small holder farming activities must go alongside irrigation-fed modern commercial farming production if Africa is to achieve local food self-sufficiency and to produce more for the international market.  The decades long major challenge of lack of easy access to capital at affordable cost, as well as, high yield quality seeds, high cost of basic inputs including agro-chemicals too need special attention.

    President Muhammadu Buhari of Nigeria’s call on African countries to offer more robust support for farmers, dedicate a chunk of the national budget to agriculture, and motivate youth and women to farm was spot on.

    We believe that for the special agro-industrial processing zones being rolled out by the AfDB to be sustainable, beefing up the production value chains in primary agriculture sector would require stepping up irrigation-fed and modernized commercial scale agricultural production and productivity

     

  • Feed Africa Summit: African Development Bank to commit $10 billion to make continent the breadbasket of the world

    Feed Africa Summit: African Development Bank to commit $10 billion to make continent the breadbasket of the world

    Opening the summit, President Sall — who is also the African Union chairperson — said the time had come for the continent to feed itself
    DAKAR, Senegal, January 26, 2023/ — The African Development Bank Group (www.AfDB.org), will commit $10 billion over the next five years to boost Africa’s efforts to end hunger and become a primary food provider for itself and the rest of the world. Bank Group President, Dr Akinwumi Adesina, announced Wednesday at the Dakar 2 Africa Food Summit in Diamniadio, east of the Senegalese capital of Dakar.

    Adesina called on more than 34 heads of state, 70 government ministers, the private sector, farmers, development partners, and corporate executives to work out compacts that would deliver food and agriculture transformation at scale across Africa. He encouraged them to take collective action to unlock the continent’s agricultural potential to become a global breadbasket.

    The Dakar 2 summit — under the theme Feed Africa: food sovereignty and resilience — takes place amid supply chain disruptions caused by the Covid-19 pandemic, climate change, Russia’s invasion of Ukraine. More than a thousand delegates and dignitaries attended, including the President of Ireland Michael D. Higgins.

    The Government of Senegal and the African Development Bank Group are co-hosting the summit, eight years after the inaugural Dakar 1 summit where the newly elected Adesina announced the Bank’s Feed Africa strategy.

    Opening the summit, President Sall — who is also the African Union chairperson — said the time had come for the continent to feed itself by adding value and stepping up the use of technology.

    Sall said: “From the farm to the plate, we need full food sovereignty, and we must increase land under cultivation and market access to enhance cross-border trade.”

    The Chairperson of the African Union Commission Moussa Faki Mahamat said the Dakar summit was timely and would provide innovative solutions to help Africa become less dependent on food imports.

    “Food sovereignty should be our new weapon of freedom,” Mahamat told the gathering. He urged development partners to work together within existing structures, such as Agenda 2063 and the African Continental Free Trade Area, for sustainable transformation.

    Mahamat commended the African Development Bank for rolling out transformative initiatives, including a $1.5 billion emergency food production facility in 2022 to help African countries avert a potential food crisis following Russia’s war in Ukraine.

    The President of Kenya, William Ruto, said, “It is a shame that 60 years after independence, we are gathered to talk about feeding ourselves. We can and we must do better.”The African Development Bank Group chief said: “Today over 283 million Africans go to bed hungry every day. This is not acceptable. No mother should ever have to struggle with rumbling of the stomach of a hungry child.”

    “We must raise the bar. We must raise our ambition. We must arise and say to ourselves: it is time to feed Africa. The timing is right, and the moment is now. Feed Africa; we must,” said Adesina.

    The bank head urged the leaders to turn political will into decisive actions to deliver food security for Africa, “We must strongly support farmers, especially smallholder farmers, majority of whom are women, and get more young people into agriculture. And we must take agriculture as a business, not a development activity, and boost support to the private sector.”

    President Higgins of Ireland said with Africa’s young population accounting for about 20% of the world’s young people, the continent had great potential. He said the rest of the world would look up to it in the future.

    “Let us make this century Africa’s Century, one which will see the continent become free from hunger,” Higgins said.

    In his message to the summit, United Nations Secretary-General Antonio Guterres acknowledged that Africa was currently facing the challenges of climate change and food insecurity, as the Russia-Ukraine war had caused the price of fertilizers to shoot up and made their supply difficult.

    He pledged the UN’s support to help Africa become a global food powerhouse.

    President Muhammadu Buhari of Nigeria said countries must offer more robust support for farmers, dedicate a chunk of the national budget to agriculture, and motivate youth and women to farm.

    Buhari said: “Feeding Africa is imperative. We must ensure we feed ourselves today, tomorrow, and well into the future.”

    The Nigerian president commended Dr. Adesina and the African Development Bank for rolling out special agro-industrial processing zones across the continent, including in Nigeria.

    He said: “Special agro-industrial processing zones are game changers for the structural development of the agriculture sectors. They will help us generate wealth, develop integrated infrastructure around special agro-processing zones, and add value.”

    During the three-day summit, private sector players are expected to commit to national food and agriculture delivery compacts, to drive policies, create structural reforms, and attract private sector investment.

    Central bank governors and finance ministers are expected to develop financing arrangements to implement the food and agriculture delivery compacts, in conjunction with agriculture ministers, private sector players, commercial banks, financial institutions, and multilateral partners and organisations

    Contact:
    Kwasi Kpodo
    media@afdb.org

    For more information: www.AfDB.org

    SOURCE
    African Development Bank Group (AfDB)

    Distributed by:APO Group