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  • Namibia’s Landscape to Shine at the Africa Hospitality Investment Forum 2024

    Namibia’s Landscape to Shine at the Africa Hospitality Investment Forum 2024

    The Africa Hotel Investment Forum (AHIF), which is the premier tourism and hotel investment conference in Africa, attracting many prominent international hotel owners, investors, financiers, management companies and their advisers, will take place on 25 – 27 June 2024, in Namibia.

    The venue will be the Mövenpick and Mercure hotels in Namibia’s capital city, Windhoek. Both properties are receiving a total makeover after they were acquired in 2021 by a fund managed by Kasada Capital Management, the leading independent real estate private equity platform dedicated to the hospitality industry in Africa. Consequently, AHIF will showcase the relaunch of both properties

    For many delegates attending AHIF next year, the conference will involve a “safari” in more ways than one. The weekend before AHIF will feature various inspection trips to see some of Namibia’s best hospitality investment projects and tourism attractions. They include spectacular desert scenery, awesome adventure sports and sensational safaris, on which it is possible to see endangered black and white rhino, antelope, cheetah, elephants, giraffes, hippos, lions, ostriches and zebras. The trips will not only be educational; they will also provide valuable networking, as participants will also include delegates from AviaDev, Africa’s premier airline route development conference, which will be scheduled at the same venue, at the end of the week before.

    In the seven-year period prior to the COVID-19 pandemic, Namibia’s tourism sector had been growing consistently. According to the country’s Ministry of Environment, Forestry and Tourism, visitor numbers grew by around 5% per annum, from just under 1.2m in 2012 to 1.6m in 2019. However, the pandemic pummelled the country’s tourism industry, with visitor arrivals in 2020 falling below 200,000. Since then, they have recovered – by 40% in 2021; and they jumped by 98.1% to 461,027 in 2022.

    Nangula Uaandja, Chairperson and Chief Executive Officer of the Namibia Investment Promotion and Development Board (NIPDB), said: “Securing the bid to host AHIF 2024 is not just a win for Namibia, but also an affirmation of our national potential. We are delighted to welcome the international hospitality investment community to explore the untapped investment potential of our tourism industry. Namibia is a strikingly beautiful country, with picturesque landscapes that are guaranteed to charm at first sight. More than that, we are a country that is committed to developing our people by attracting foreign investments that catalyse economic activity and employment creation.

    Our government is deliberate about sustaining a conducive investment climate, supported by progressive regulatory and policy frameworks, a strong legal system, seamless repatriation of profits and an independent judiciary that protects the rights of all investors, and that allows disputes, if they arise, to be settled through the courts or international arbitration”.

    Olivier Granet, Managing Partner and CEO, and David Damiba, Managing Partner, and CIO, Kasada Capital Management, said: “We are proud to be partnering with the Bench on AHIF 2024 and look forward to welcoming guests to Kasada’s newly refurbished and relaunched Mövenpick and Mercure hotels. The full refurbishment at Namibia’s leading hotel complexes and conference centre is a testament to our strategy of bringing capital and expertise to enhance the hospitality sector in key cities across Africa.”

    Matthew Weihs, Managing Director of The Bench, which organises AHIF, concluded: “We are very excited that AHIF will, for the first time, go to a SADC country next year. Investing in Africa is all about uncovering and seizing new opportunities. To do that, one needs to expand one’s horizons by going to different places, meeting new people, and exploring alternative scenarios. By scheduling AHIF and AviaDev either side of a weekend in Windhoek and laying on a selection of inspection trips for our delegates, we will be doing just that, as well as offering them unrivalled networking, which is a vital ingredient of any conference.”

  • Inaugural Board Meeting of the African Continental Free Trade Area (AfCFTA) Adjustment Fund Corporation holds in the Republic of Rwanda

    Inaugural Board Meeting of the African Continental Free Trade Area (AfCFTA) Adjustment Fund Corporation holds in the Republic of Rwanda

    KIGALI, Rwanda, October 6, 2023/ — Following the mandate by the African Union (AU) Summit of Heads of State and Government and the AfCFTA Council of Ministers responsible for Trade , Afreximbank (www.Afreximbank.com) and the AfCFTA Secretariat were mandated to establish and operationalise the AfCFTA Adjustment Fund through a General Partnership – the AfCFTA Adjustment Fund Corporation – with operations of the Fund domiciled in Rwanda.

    The Fund will support countries and private entities through financing, technical assistance, grants and compensation funding in their transition to the new trading regime and mitigate any negative impacts that may arise during this process. By providing targeted support, the Fund aims to ensure that no country is left behind and that the benefits of the AfCFTA are shared equitably and in a sustained manner across the continent.

    The inaugural board meeting of the AfCFTA Adjustment Fund Corporation held today in Kigali. The board members deliberated on key issues that will serve as a foundation for the successful operationalisation of the AfCFTA Adjustment Fund. Amongst these include the appointment of the Fund for Export Development in Africa (FEDA), the impact investment platform of African Export-Import Bank, as the Fund Manager for the Adjustment Fund.

    The AfCFTA Adjustment Fund consists of three sub-Funds namely, the Base Fund, the General Fund, and the Credit Fund. The Base Fund will utilise contributions from AfCFTA State Parties as well as grants and technical assistance to address tariff revenue losses that would result from the implementation of the AfCFTA Agreement. The General Fund will finance the development of trade enabling infrastructure while the Credit Fund will be used to mobilise commercial funding to support both the public and private sectors enabling them to adjust and take advantage of the opportunities created by the AfCFTA.

    Mr. Jean-Louis Ekra, Chairman of the Board of the AfCFTA Adjustment Fund Corporation, said: “It is important to note that the Adjustment Fund is not intended to perpetuate dependency, rather, it is designed to foster self-reliance. Its resources are aimed at assisting countries in overcoming temporary hurdles and building the foundations for long-term economic resilience. Through careful investment and strategic planning, Member States can utilise the Fund’s support to enhance their productive capacities, diversify their economies, and accelerate progress towards sustainable development goals. It gladdens my heart to be an active participant in this noble demonstration of history in the making. I enjoin all of us to seize this historic opportunity to unlock Africa’s vast potential, strengthen regional integration, and forge a brighter future for all, together.”

    H.E. Wamkele Mene, Secretary-General of the AfCFTA Secretariat, said: “This inaugural meeting of the Board of the AfCFTA Adjustment Fund heralds a commendable milestone in the successful implementation of the Agreement. In collaboration with our strategic partner Afreximbank, we are commited to provide the necessary support to State Parties and private entities through the Adjustment Fund. The Board, composed of experts and driven leaders of the continent, will carry out the necessary actions to ensure compliance with all rules and regulations.”

    Dr. George Elombi, Executive Vice president, Governance, Corporate and legal Services of Afreximbank, said: “Afreximbank welcomes the convening of the first Board meeting of the AfCFTA Adjustment Fund, which marks a significant milestone in advancing implementation of the African Continental Free Trade Agreement (AfCFTA). Given the enormous potential the AfCFTA holds for the continent, the Bank is exceptionally pleased to be a strategic partner to the AfCFTA Secretariat in establishing the Adjustment Fund. We are also pleased that our subsidiary, the Fund for Export Development in Africa (FEDA) has been appointed as the fund manager.”

    Marlene Ngoyi, Chief Executive Officer of the Fund for Export Development in Africa, said: “FEDA is honored to have the opportunity to play a role in unlocking the vast potential of the African Continental Free Trade Area (AfCFTA) agreement. This transformative agreement has the power to create a more prosperous, equitable, and sustainable future for millions of people across the continent. The appointment of FEDA as the investment manager of the AfCFTA Adjustment Fund General Fund and Credit Fund demonstrates the AfCFTA Secretariat’s, Afreximbank’s, and FEDA’s commitment to the urgent realization of this grand vision.”
    Distributed by APO Group on behalf of Afreximbank.

    For further information, please contact:
    Ms. Grace Khoza
    Principal Communications Advisor
    African Continental Free Trade Area (AfCFTA) Secretariat
    E-mail: Grace.Khoza@au-afcfta.org
    Accra, Ghana

    Ms. Elydora Matubanzila
    Communications Officer
    African Continental Free Trade Area (AfCFTA) Secretariat
    E-mail: Elydora.Matubanzila@au-afcfta.org
    Accra, Ghana

    Communication | Marketing | Advocacy Division, African Continental Free Trade Area |
    E-mail: afcftacommunications@au-afcfta.org

    To find out more, please visit our website: https://AU-AfCFTA.org

  • Unlocking the full Potential of the African Baobab

    Unlocking the full Potential of the African Baobab

    By: Mohammed A. Abu

    Professor Kenneth Fafa Egbadzor,the Lead Researcher of the Domestication of the African Baobab Project at the Ho Technical University(HTU) in Ghana’s Volta Region,who is also, a plant breeding expert, has noted that even though, research has established that there are over 300 different uses of Baobab but yet, the plant is undomesticated and underutilized.

    The African baobab he said, also referred to as, “the wooden elephant” is also included among those crops referred to as orphan, meaning that they do not receive research attention.

    Ghana, Africa cannot derive optimum benefit from plants in the wild and thus,the need for domestication of the tree crop is very important.That is what he said, underpins this “crazy ambition” of intensive research work of reducing the maturity period of the wild growing plant from fourteen (14 years) to two (2 years).

    Professor Egbadzor in an interview with your favourite, the Eco-Enviro News Africa magazine intimated that he and his team is not only passionate about domesticating the African baobab, but also, bent on advocating for its integration into mainstream agriculture (farming) and encouraging its utilization.

    All the improved crops (soy, maize, rice, cocoa etc.) varieties we have today Professor Egbadzor noted, were once wild. However, through research and farming, they have been improved and significantly, they are different from their wild parents.

    HTU in 2019 he recounted, started the baobab domestication project and the effort is already yielding appreciable results. “We have a big vision of seeing baobab being cultivated throughout Africa. Wild fruit gathering should be a thing of the past soon”. Professor Egbadzor declared.

    Yield Potential: Domesticated Versus Wild Growing Baobab

    On how the domesticated baobab would fare in terms of fruit yield per tree potential compared with the wild growing baobab he had this to say.

    “We believe that it is possible to get higher yield from the domesticated baobab than from the wild. The size and number of fruits would directly contribute to the yield.

    “We must also know that different varieties to be developed and the environment as well would also contribute to yield. So, at the moment we cannot be sure on exactly what level of yield to expect from a given variety of baobab. Time will tell”.Professor Egbadzor intimated.

    On Fruit Quality of Domesticated Baobab

    On whether the drastic reduction of the maturity period of the domesticated baobab would have any adverse effect on fruit phytochemicals and phytonutrients and with particular reference to its much touted relatively higher Vitamin C content he also had this to say.

    “Fruit quality of the domesticated baobab is not expected to be different from the wild types. However, with time, the cultivated varieties would be the best selections from the wild. So, the researchers would be targeting the best from the wild. In crop improvement, we always aim at higher quality.”

    Commercialized Farming of the Domesticated Baobab

    On commercial scale cultivation of domesticated baobab, he disclosed that some farmers in the Ho Municipality and Adaklu District have already planted the HTU baobab.
    More seedlings Prof said, would made available to farmers next year. HTU is also planting at the university. We have farmers from the Upper West region expressing interest but we are at the moment limited by fund.

    Other Wild Trees Targeted for Domestication

    Aside domesticating of the wild baobab other wild growing trees of remarkable socio-economic importance he and his team had their eyes on are Allanblackia, Locust bean and Bush mango adding that, their only limitation is funding

    International Market Potential.

    Baobab is a multi-purpose tree; its fruit pulp, seeds, leaves, flowers, roots and bark are used locally for human consumption. In 2008, the dried pulp harvested from baobab fruit was first approved for sale in the European Union (EU); it has seen high growth since then. Baobab fruit powder is made by grinding baobab dried fruit pulp, the only authorised baobab ingredient in food/health products on the European market.

    The fruit powder contains Several health benefits have been associated with baobab powder. In Europe, it is commonly marketed as a food supplement that increases energy levels, supports immune health and improves digestive and general health.

    It is mostly sold as a fruit powder, while some companies sell baobab powder in capsules, such as the company Bao-Med (the Netherlands). Most baobab powder on the market is organic-certified, as Europe has a limited market for non-certified baobab.

    Baobab powder is used in food supplements because of its nutritional qualities. The company Aduna (United Kingdom) markets baobab powder with the claims ‘rich in vitamin C’, ‘high in fibre’ and ‘baobab is one of the most nutrient-dense foods in the world’.

    The company markets baobab as ‘the feel-good fruit’. Golden Greens also highlights the vitamin C content of baobab, as well as labelling it ‘high in fibre and antioxidants’. Many companies market their baobab powder as ‘suitable for vegans/vegetarians’, as consumers are looking for products without animal-based ingredients.

  • About Proportionality as Principles Expands in Banking

    About Proportionality as Principles Expands in Banking

    About Proportionality as Principles Expands in Banking
    CIBAFI Offers Basel Committee some Insights
    By: Mohammed A. Abu
    The Manama, Kingdom of Bahrain based General Council for Islamic Financial Institutions(CIBAFI) has formally Submitted Comments to the Switzerland based Basel Committee on Banking Supervision (BCB regarding its Consultative Document on “Revisions to the Core principles for effective banking supervision (“Core Principles”) an official statement disclosed in Manama, Thursday.

    CIBAFI noted according to the Press Release, that even though the updated “Introduction to Core Principles” improves comprehension of proportionality, banks still however, express concerns about the way proportionality is applied, particularly as the principles expand.

    Proportionality, CIBAFI also noted, needs to evolve alongside emerging trends and new banking models like Neo Banks and Fully Digital Banks. It is advisable to conduct additional research to uncover specific considerations for applying these principles in the context of these innovative banking models.
    The CIBAFI release signed by its Secretary General Abdellah Belatik said, “We remain at your disposal should you need any further clarifications”, adding, “The General Council for Islamic Banks and Financial Institutions takes this opportunity to renew to the Basel Committee on Banking Supervision (BCBS) the assurances of its highest respect and consideration”.

    CIBAFI is an international body representing Islamic financial institutions globally, who offer financial services and products complying with Islamic rules and principles (Shariah).

    CIBAFI acts as the voice of the Islamic finance industry, and our members comprise more than 130 Islamic banks and non-bank financial institutions, both large and small, from 34 jurisdictions

  • Harnessing the Combined Talents of Africa and the Caribbean for a Brighter Future

    Harnessing the Combined Talents of Africa and the Caribbean for a Brighter Future

    From December 1 & 2, 2023, the leading London-based Business consulting and investment Firm, Wealth Masters Group, is conveying African and Caribbean Private sector to discuss Business and Investment opportunities among themselves during a 2-day virtual event

    Going under the theme “find your purpose, potential, business niche and key strategies needed as African/Caribbean from topnotch entrepreneurs and business owners”,the overall idea behind this virtual summit is to build bridges of understanding and fostering meaningful partnerships, that can harness the immense potential of the combined talents of the two regions, resources, and ideas to create a brighter future for our people and generations to come.

    According to Dr. Benjamin Acheampong, Wealth Masters Group Founder and President, “Africa and the Caribbean have long been vibrant and dynamic regions, rich in culture, heritage, and human potential. Our lands have birthed leaders, visionaries, artists, and entrepreneurs who have made indelible contributions on the global stage.Today, we embrace our shared legacy and embark on a new chapter of collaboration to unlock even greater possibilities”.

    “This unprecedented unique event converges Africa and Caribbean elite business powerhouse, entrepreneurs, start-ups, corporate CEOs, executives of Pan-African Business industries, commercial organizations and financial institutions to discuss Practical Business, industrialisation, partnerships and prospects that can be leveraged to upscale economic dividends among Africans and Caribbean”. Said, Mad. Dorcas James, Summit Executive Director.

    The summit envisions the following key features:
    1. Keynote from successful African and Caribbean business leaders and Heads of States
    2. Daily summit remarks by key partners and sponsors
    3. Master Classes on business creation, growing and financing, and wealth management
    4. Workshops on ACAS focus areas towards generating projects that can be taken forward
    5. Provide a platform for professionals, entrepreneurs, and business leaders from both regions to exchange ideas, explore business opportunities, and promote cultural understanding.

    The event welcomes companies and organisations as partners or sponsors. Our platform has the profile to guarantee your company/organisation the unique exposure and spectrum you dream of Wealth Masters Group appreciates all levels of sponsorship on a first come first served basis: such as discounts packages and others.

    For more information kindly email us at info@wealthmastersgroup.com/www.acachiever.org or call us + 44 1622 809462 or visit our website at www.wealthmastersgroup.com/www.acachiever.org. Socials Media Facebook, LinkedIn and Instagram to discuss summit aspects including sponsorship packages tailored to your business objectives.

  • Africa Business Heroes Spotlight

    Africa Business Heroes Spotlight

    INVESTIV-AFRIQUE PHYTO PLUS  Join Hands

    By: Mohammed A. Abu

    INVESTIV, a pioneer and leader in drone technology in West Africa, recently raised $800,000 (approx. 500 million XOF) from UK impact fund AGDEVCO and RAJ GROUP Holding to set up precision agriculture service centers for rural populations.

    One of the company’s main challenges is to make its technologies available to small and medium-sized farmers for the production of food crops and perennial crops. To meet this challenge, INVESTIV, in partnership with AFRIQUE PHYTO PLUS, West Africa’s leading distributor of agricultural inputs, has developed a concept called Agrohub.

    An Agrohub is a center offering precision farming services and a range of agricultural inputs. It is set up in villages and production zones in partnership with agricultural cooperatives and has a demonstration plot of around 2 hectares.

    Precision agriculture uses information technology (IT) to ensure that crops and soil receive exactly what they need for optimum health and productivity. This also ensures profitability, sustainability and protection of the environment.

    Precision agriculture (PA) is the science of improving crop yields and assisting management decisions using high technology sensor and analysis tools.

    PA is a new concept adopted throughout the world to increase production, reduce labor time, and ensure the effective management of fertilizers and irrigation processes.

    It uses a large amount of data and information to improve the use of agricultural resources, yields, and the quality of crops (Mulla, 2013). PA is an advanced innovation and optimized field level management strategy used in agriculture that aims to improve the productivity of resources on agriculture fields.

    The Africa Business Heroes is a Jack Ma Foundation’s flagship philanthropic programme in Africa to support entrepreneurs. Its mission is showcase and grow local talent who are creating positive impact in their communities and beyond and inspire a movement of African entrepreneurship.

    Over a ten-year period, the programme will recognize 100 African entrepreneurs and provide grant funding, training programmes and broader support for the broad African entrepreneurial system.

     

    Africa Business Heroes Spotlight

    Africa’s Business Heroes (ABH) is the Jack Ma Founda

  • Ethiopian Delegation to AFSIC – Investing in Africa 2023

    Ethiopian Delegation to AFSIC – Investing in Africa 2023

    FSD Ethiopia is coordinating a delegation from Ethiopia to attend AFSIC 2023 and will be sponsoring the Ethiopian Investment Summit scheduled for Monday, 9th October 2023.  FSD Ethiopia is a development agency that aims to support the development of accessible, inclusive, and sustainable financial markets for economic growth with a vision to contribute to a thriving financial system that delivers real value to the broader economy and to the people of Ethiopia.

    The Ethiopian delegation includes the key financial sector actors, including the Ministry of Finance, Ethiopian Capital Market Authority, Ethiopian Investment Holdings, Ethiopian Securities Exchange, and Ethiopian Investment Commission– a truly comprehensive grouping and an exciting agenda item to look forward to.

    The Ethiopian summit is organized under the theme “Ethiopia – The New Frontier Market, Opening Doors and Creating Opportunities”.  The summit aims to provide a comprehensive overview of Ethiopia’s emerging opportunities and highlight Ethiopia’s recent economic reforms, favorable investment climate, and growing investment opportunities.

    The high-level officials in the panel will discuss significant developments strengthening Ethiopia’s financial architecture. The event will feature a road show to raise capital for the recently established Ethiopian Securities Exchange (ESX). ESX will highlight opportunities for forming strategic partnerships with financial actors in Africa and beyond. Ethiopia investment holding aims to attract investors and inform global finance practitioners of Ethiopia’s capital market and opportunities.

    The Ministry of Finance will promote its far-reaching reforms to mobilize resources for sustainable and inclusive development, key to Ethiopia’s Homegrown Economic Reform agenda. Ethiopian Investment Commission will exhibit the various investment opportunities and a favorable business environment within the country, accomplished through a comprehensive and strategic approach that highlights the unique advantages of investing in Ethiopia.

    The Ethiopian Investment Summit will be held on October 9th from 12:45 p.m. to 2 p.m. The Ethiopian Securities Exchange will launch its roadshow during the Embassy reception at the Ethiopian Embassy in London on the same evening.

    The Ethiopian country delegation to AFSIC  2023 is a unique gathering of key financial sector players. and the Ethiopian Investment Summit promises to be standing room only. Any interested investors who wish to find out more should ensure they register to attend AFSIC event@afsic.net www.afsic.net

    About the Ethiopian Delegation

     Ministry of Finance (MoF)

    The Ministry of Finance is a Ministry within the Government of Ethiopia responsible fiscal policy, public finance, and external economic cooperation. As per Article 16 of the Proclamation No.1097/2018 Definition of Powers and Duties of the Executive Organs of the Federal Democratic Republic of Ethiopia Proclamation, the Ministry of Finance is given the powers and duties (among others) to formulate economic cooperation and fiscal policies that particularly serve as a basis for taxes, and duties, mobilize, negotiate, and sign foreign development assistance and loans, establish a favorable legislative framework to promote and facilitate the implementation of PPP-financed infrastructure projects by enhancing transparency, fairness, and long-term sustainability, and prepare the Federal Government fiscal budget.

    Ethiopian Capital Market Authority (ECMA)

     The Ethiopian Capital Market Authority (ECMA) is a federal government regulatory authority with its own juridical personality, accountable to the Prime Minister of the Federal Democratic Republic of Ethiopia. It was established in 2021 by the Capital Markets Establishment Proclamation, which provides the legal foundation for the development of capital markets in Ethiopia. The ECMA is responsible for regulating the Ethiopian capital markets.

    Ethiopian Investment Holdings (EIH)

    Ethiopian Investment Holdings (EIH) is a young and dynamic holding company with a mission to create long-term value for Ethiopia. It was established in December 2021 to serve as the strategic investment arm of the Government of Ethiopia and to execute the state’s ownership of commercial assets. It upholds a philosophy of long-term value creation and is committed to transforming Ethiopia’s resources into assets that generate wealth for current and future generations.

     Ethiopian Securities Exchange (ESX) Project Office

    The Ethiopian Securities Exchange (“ESX”) is Ethiopia’s first, and only organized securities exchange. ESX is established as a public-private partnership in line with Article 31 of the Capital Market Proclamation (No.1248/2021) and is licensed by the Ethiopian Capital Market Authority (ECMA).

    ESX operates the business of a securities exchange, functions as a Self-Regulatory Organization (“SRO”), and serves as the central market organizer providing an integrated product suite covering the equities, money markets, and fixed income, segments of the capital markets.

    As the pioneer securities exchange, ESX aims to play a critical role in the development and growth of the Ethiopian capital market. ESX’s core objective is to facilitate access to capital and support effective capital allocation in a manner that supports Ethiopia’s economic growth. By developing a well-regulated and efficient capital market ecosystem, ESX will enable the mobilization of financial resources for the Government, and private sector institutions while providing investors a reliable platform to invest in a reliable and efficient environment.

    Ethiopian Investment Commission (EIC)

    The Ethiopian Investment Commission (EIC) is a government institution established in 1992 to promote private investment, primarily foreign direct investment (FDI). The EIC is an autonomous institution accountable to the country’s Investment Board, which is chaired by the Prime Minister.

    The EIC is committed to creating a conducive environment for investment in Ethiopia. It is working to improve the investment climate, streamline the investment process, and provide better services to investors. The EIC is also working to attract new investors and to expand investment into new sectors.

    FSD Ethiopia

    FSD Ethiopia is a development agency that aims to support the development of accessible, inclusive, and sustainable financial markets for economic growth.

    Established in 2021, FSD Ethiopia works on identifying the underlying factors that contribute to financial system failures, enabling market participants to address these constraints and help build a functional and effective financial sector that contributes to economic growth.

    FSD Ethiopia provides technical assistance, grants, and research insights to policymakers, regulators, and market actors to drive large-scale change in financial markets and support sustainable economic development. It works with public, private, and development partners in the financial sector to address critical system constraints to facilitate change that allows the provision of effective, transparent, stable, and inclusive financial systems. It provides tailored services to help diverse stakeholders achieve their goals and design interventions to make Ethiopia’s financial sector function effectively and inclusively.

    About AFSIC – Investing in Africa:

    AFSIC – Investing in Africa has become perhaps Africa’s most important annual investment event. The event is owned by Africa Events Limited. AFSIC is wholly focused on accelerating Africa’s economic emergence by matching investment opportunities in Africa transforming Africa’s business, trade and investment environment, growing Africa’s economy, reducing poverty, and increasing African incomes in all business sectors at a continental scale across all 54 countries in Africa.

    African Investments Limited (www.africaninvestments.co), a sister company to Africa Events Limited, operates two multi award-winning digital platforms, the AFSIC African Investments Dashboard which matches investment opportunities to our global network of institutional investors and the Africa Business Opportunities Dashboard, which matches business, trade and investment opportunities across Africa covering all business products, sectors, countries in Africa and multiple business objectives. The digital platforms won the global 2022 Salesforce Partner Innovation Award for Financial Services.

  • Navigating the Dynamic Landscape of the Global Online Trading Market

    Navigating the Dynamic Landscape of the Global Online Trading Market

    By Boriss Gubaidulin, Africa Director, Admirals

     The global online trading market has witnessed a remarkable upswing, fuelled by technological advancements and the widespread accessibility of the internet. This surge in popularity and increase of the global market size to USD9.32bn in 2022 has been instrumental in democratising investment opportunities, enabling individuals from various corners of the world to partake in online trading.

    Based on a comprehensive analysis conducted by Grand View Research in 2020, the global online trading market showcased a valuation of approximately USD15.47 billion in 2019. Notably, this market has been on an upward trajectory, with a projected compound annual growth rate (CAGR) of 9.7% from 2020 to 2027.

    With the advent of user-friendly platforms and cost-effective trading options offered by numerous online brokerages, retail investors are increasingly recognising the potential of online investing. This realisation has ushered in a new era of financial inclusion, empowering individuals to take charge of their financial futures.

    A closer look at the African Market

     Within the realm of online trading, Africa emerges as a market of untapped potential, poised for remarkable growth, as highlighted by the latest quarterly report from Finance Magnates.

    While developed markets face saturation due to aging populations, Africa’s online CFD trading market is experiencing significant upward momentum, primarily due to a high youth population ratio, high mobile penetration, and technological improvements. Notably, the continent boasts the presence of the world’s five fastest-growing economies, with Nigeria leading the charge, fuelled by its population of over 200 million.

    Even a modest conversion of just 1% of the population into online traders would yield an impressive 200,000 active traders. To put this into perspective, the number of active CFD/forex traders in the United States currently hovers around 200,000, and in Germany, it reaches approximately 100,000.

    Africa’s vast growth potential and evolving regulatory landscape makes it a desirable destination for global expansion, with several reputable players such as Admirals steadily moving into Africa.

    The Impact on Emerging Markets

     Emerging markets are reaping a multitude of benefits from the rise of online trading, which is transforming their financial landscapes in significant ways. One prominent advantage is the enhanced accessibility and financial inclusion it brings. Online trading platforms have opened doors for individuals who were previously excluded from traditional investment opportunities, empowering them to participate in global markets.

    Additionally, online trading enables investors in emerging markets to diversify their investments beyond local markets, reducing dependency on a single economy and thus spreading risk.

    Moreover, lower costs and fees associated with online trading make it more affordable for individuals in these markets to engage in trading activities. Furthermore, the impact of online trading goes beyond personal finance, contributing to economic growth, job creation and the establishment of new businesses.

    This growth, in turn, generates employment opportunities across various sectors such as finance, technology, and customer support services. Overall, the benefits of online trading in emerging markets extend far beyond financial gains, driving inclusive growth, fostering economic stability, and creating avenues for prosperity.

    Embracing Challenges and Opportunities within the African Market

     While the African market showcases immense growth potential, it is not without its fair share of challenges, setting it apart from more developed markets. One significant headwind is the presence of political instability, which can create an uncertain investment environment.

    Additionally, currency fluctuations pose a risk, making it crucial for investors to carefully manage their exposure to mitigate potential losses. Moreover, the higher levels of risk associated with investing in emerging markets can impact investor confidence, requiring a cautious approach and thorough risk assessment.

    Navigating Africa’s often complex and variable regulatory landscape presents another potential hurdle. Whilst regulation across the African regions vary in terms of transparency and sophistication, most countries have been working to refine their regulatory frameworks to promote stability, transparency, and investor confidence.

    Unlocking the Power of AI: From Threat to Empowerment

    Artificial Intelligence (AI) has emerged as a formidable tool that empowers individuals in the realm of online trading, dispelling the notion of it being a threat. With the ability to process and analyse vast volumes of data, including market news, social media sentiment, economic indicators, and historical trading patterns, AI enhances decision-making processes for traders. By quickly extracting valuable insights from complex data sets, AI equips traders with a competitive edge, helping them make more informed and strategic investment decisions.

    Furthermore, AI finds utility in customer support services through the deployment of chatbots, streamlining interactions and providing timely assistance to traders. Additionally, AI plays a crucial role in fraud detection, leveraging its analytical capabilities to identify suspicious patterns and safeguard the integrity of trading platforms.

    However, it’s important to note that while AI provides valuable insights and assistance, its effectiveness is dependent on the quality of human input and requires human assessment for accurate decision-making. AI acts as an enabler rather than a replacement for online trading platforms, working in tandem with human expertise to optimise trading experiences and outcomes.

    By embracing AI as a powerful tool, traders can harness its capabilities to navigate the complexities of the market, fostering growth and innovation within the online trading industry.

    The Rise of Neobrokers: Navigating Innovation and Regulatory Oversight

     A notable trend in the online trading industry is the emergence of neobrokers; app-based platforms that have gained traction among investors. Neobrokers represent a disruptive force, offering user-friendly interfaces and streamlined experiences. However, regulators closely monitor this development to ensure investor protection and mitigate potential risks associated with this innovative approach.

    As neobrokers simplify access to markets and foster a more inclusive environment, they have the potential to encourage risk-taking behaviours among traders. This balance between innovation and regulatory oversight becomes crucial as regulators strive to strike a delicate equilibrium, ensuring market integrity and investor safeguards, while fostering innovation and accessibility.

    The evolution of neobrokers is a fascinating development to watch within the online trading industry, and regulators remain vigilant in adapting to this changing landscape to maintain a fair and secure trading environment.

    Additionally, the rise of AI and neobrokers presents new dimensions to online trading, empowering traders with advanced data processing capabilities and innovative platforms.

    However, regulatory oversight remains crucial to ensure investor protection and maintain market integrity. By leveraging the benefits of technology, embracing regulatory developments, and fostering a balanced approach, the online trading industry is poised for continued growth, fostering financial inclusion, and transforming the way individuals participate in global markets.

    In conclusion, the global online trading industry is undergoing a transformative phase, with remarkable growth and opportunities unfolding. Emerging markets, such as Africa, hold immense potential for expansion, driven by factors such as accessibility, diversification, lower costs, economic growth, and job creation.

    Trading involves Risk.

     

     

  • Pan-Africanism remains a dream: four key issues the African Union must tackle

    First published: February 16, 2023 10.26am SAST

    By: The Conversation

    The African Union (AU) – made up of 55 member countries – has made significant progress with integrating the countries of the continent and giving them a voice in global politics.

    Over the past two decades it has developed meaningful policies on peace and security, and trade, like the African Continental Free Trade Area. The African Union Commission helps set the agenda and represent African interests in global forums alongside important partners like the United Nations and the European Union.

    But the AU still has a long way to go to achieve the political, economic and cultural goals set out in Agenda 2063, adopted in 2013.

    I was an adviser to the union for over a decade and I am now the editor of the Yearbook of the African Union. In my view, progress in implementing the pan-African agenda has stalled. This is partially due to the challenging dynamics in how member states, the AU’s governing organs and external partners relate and pursue their interests.

    The annual Assembly of African Heads of State and Government offers an opportunity to consider these issues and decide how to resolve them. In 2023, the summit will be held in Addis Ababa, Ethiopia, from 18 to 19 February.

    Four factors stalling progress

    I believe that four issues have stalled progress in the pan-African agenda. These issues relate to collective decision making, independent financing, division of labour and the adoption of common policies that would nurture strategic partnerships.

    1. Member states have implemented too few collective decisions

    The AU has adopted several important legal documents which member states are supposed to adopt for themselves, too. These documents – signed during heads of state and government meetings – must be ratified and then deposited with the union.

    This usually happens very slowly and only very patchily. The reasons vary. According to one of the few academic inquiries into the subject, these reasons include a lack of political will, administrative lethargy and deficits in technical capacity among member states.

    The AU has no power to force member states to carry out common decisions. It can only monitor compliance on three legal instruments, including the 2007 African Charter on Democracy, Elections and Governance).

    To see progress in policy implementation, member states will have to think seriously about how to arrive at binding, transparent and enforceable mechanisms.

    One way to do this would be through introducing a clear and limited window of time for ratifying legal documents. The union could also make it mandatory to report on the implementation of all decisions.

    2. Independent finances have not been established

    The AU’s ambitious plans depend heavily on external finance. Almost two-thirds of the union’s annual budget comes from donors, dubbed international partners.

    Contributions from member states account for the remaining third. However, these tend to come late, or in some cases only in part. About 30 member states default partially or completely each year. In 2007, Algeria, Egypt, Libya, Nigeria and South Africa volunteered to make higher contributions. They account for 45% of the funds raised by African governments. Morocco, which rejoined the AU in 2017 after a 33-year absence, has replaced Libya as a major donor.

    The AU’s financial reform process began in 2015 to make the organisation more self-reliant. Members committed to paying a 0.2% levy on various goods imported from outside the continent.

    This money is expected to support 100% of the union’s operational budget (which includes maintenance and salaries), 75% of the programme budget (which includes implementation of policies) and 25% of the budget for union-led peace operations.

    The union still must decide how the 100/75/25 target will be met by 2025. In the current budget (US$655 million for the 2023 financial year), the financial shortfall stands at US$201 million, a 31% deficit.

    3. The division of labour between the African Union and regional economic communities remains unclear

    Relations between the African Union and the eight officially recognised regional economic communities are based on two principles. These are subsidiarity (where, whenever possible, the regional level takes the lead) and comparative advantage (where the institution that’s better equipped to deal with a situation leads).

    A 2017 report on the operations of the AU noted that the division of labour between the union and regional communities was “unclear”. This caused a duplication of roles and a lack of clear boundaries.

    A new protocol on the relationship between the AU and regional economic blocs was adopted in 2020. But its details are yet to be finalised.

    4. The instruments of a common global policy are either underused or underdeveloped

    The AU is working to increase its bargaining power in global politics by developing common policies and nurturing strategic partnerships.

    But because of member states’ insistence on sovereignty, few common policies have been developed. The most prominent one relates to the reform of the UN Security Council to give Africa more power.

    In terms of strategic partnerships, the AU currently is focusing its activities on three multilateral (Arab League, European Union and United Nations) and five bilateral (China, India, Japan, South Korea and Turkey) partnerships. However, the frequency of meetings, scope of activities and meaning of the word “strategic” vary widely.

    Opportunity for change

    This year’s Assembly of African Heads of State and Government is expected to attend to these urgent items:

    • implementing and domesticating union decisions
    • the division of labour between the AU and regional economic communities
    • how best to use the organisation to shape Africa’s place in the world.

    The financial dependency issue will be tackled by the African Union Executive Council in July.

    In my view, there is likely to be progress on some of these issues and stalling on others. What’s at stake is Africa’s place in the world and averting harm to the continent.

  • Property developer to issue Sh3bn Sukuk bond

    Property developer to issue Sh3bn Sukuk bond

    By CHARLES MWANIKI
    More by this Author

    Kenya is set for its first Sukuk bond after the Capital Markets Authority (CMA) approved a Sh3 billion issuance by a firm looking to use the proceeds to develop institutional houses.

    The CMA said that it has granted Linzi Finco Trust the go-ahead to float the Shariah-compliant bond, but did not give a timeline of when the issuance is expected to hit the market.

    Kenya has over the years considered issuing Islamic bonds, otherwise known as Sukuk, to help finance its budget deficit, with corporates also looking to such bonds as part of their capital-raising mix.

    Sukuk bonds, which are tradeable on a securities exchange, differ from conventional bonds by representing a beneficial ownership in the underlying asset, as opposed to a debt obligation in the case of the other bonds.

    Islamic law prohibits interest, so Sukuk bonds offer investors a share in the returns generated by an underlying

    These Islamic bonds are, therefore, suitable for financing housing, energy, healthcare, transport, water and sanitation projects.

    “Linzi Finco Trust, the Issuer of this pioneering Sukuk named Linzi Sukuk that offers an internal return of return at 11.13 percent, is set to raise Sh3 billion with the primary aim of developing 3,069 institutional housing units,” said the CMA in a statement on Wednesday.

    “This landmark Sukuk will contribute significantly to expanding the availability of affordable housing and positively impact the lives of many Kenyan citizens. This innovative financing mechanism is expected to attract both domestic and international investors seeking ethical and socially responsible investment options.”

    The path to issuance of Sukuk bonds in the Kenyan capital markets was smoothed by amendments to various laws in the Finance Act of 2017, including the Income Tax and VAT Acts to provide clarity on the taxation of Islamic banking products in the country.

    Other Acts that were amended to recognise Islamic financial products included The Stamp Duty Act, The Public Finance Management Act, the Co-operative Societies Act and the Sacco Societies Act.

    While the Treasury is yet to use a Sukuk bond in its budget financing programmes, this type of security has been considered among the options available to the country to refinance the $2 billion Eurobond that matures next June.

    A Sukuk would, for instance, allow the State to tap into the Middle Eastern financial market for funding, providing an alternative to the Eurobond and syndicated loan markets whose cost of funds has gone up for smaller markets.

    A number of African countries have dipped into the Sukuk bond market in recent years, enjoying oversubscriptions that demonstrate a demand for such issuances.

    Morocco and Nigeria issued $105 million (Sh15.4 billion) and $327 million (NA48 billion) of Sukuk securities,

    SOURCE

    BUSINESS DAILY,KENYA