In anticipation of COP28 – the United National Climate Change Conference – which takes place later this month, we speak to food and beverage conglomerate, PepsiCo about the significance of the conference, and how the company is tackling its climate change goals.



Multinationals worldwide have begun the process of reviewing their business and operational strategies in order to meet their net zero goals.



With COP28 set to take place in Dubai, United Arab Emirates, from November 30 – December 12, FORBES AFRICA speaks to Eugene Willemsen, CEO for PepsiCo AMESA (Africa, Middle East and South Asia) about the company’s agricultural strategies, its focus on renewable energy and growth prospects on the continent.&nbsp;&nbsp;



Q. In terms of COP28 and PepsiCo, what&#8217;s the premise behind this? What are your plans for the upcoming conference?



A. COP28 is a crucial event for not just PepsiCo, but for the world. I think everyone is seeing the impact that climate change is having on everything from food security to people being displaced, etc. At PepsiCo, we firmly believe that we have a role to play to create a more sustainable world, and I think that is also embedded in our positive vision and strategy that we rolled out a couple of years ago.



There are a few elements within that strategy that are, for us, critical. One is positive agriculture. The second is positive value chain and the third one is positive choices. As we look at COP28, in particular, the focus is going to be primarily on the first two of those pillars. Within positive agriculture, we have committed ourselves to convert the equivalent of the agricultural land that we&#8217;re using to grow our crops. We work with about 100,000 farmers across the world and we want to convert the equivalent of the land that we&#8217;re using with these farms to grow our crops to regenerative agricultural practices.



On positive value chain, this is very much in focus for COP28. A few key focus areas there – as a company, we&#8217;ve committed to become net zero, across our entire ecosystem, by 2040. If you then break that down –agriculture is, for us, one of the important drivers of our emissions. The second area that we need to work on is packaging, which is another contributor to our emissions. And there, we&#8217;ve pledged to significantly reduce the amount of virgin PET, so we will reduce that by 50% by 2030, per serving. That means that we need to establish proper recycling infrastructure, especially, in the markets that I&#8217;m responsible for, but also start including recycled PET within our packaging footprint to ensure that we create this circular economy for packaging. Within the Africa, Middle East and South Asia (AMESA) sector, we now have established the right legislative framework in most of the markets, in the sense that recycled PET is allowed to be used for food grade consumption.


<div class="wp-block-image">
<figure class="aligncenter size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="567" src="https://cms.forbesafrica.com/wp-content/uploads/2023/11/Tshego-Selepe-agribusiness-manager-at-the-Kgodiso-Development-Fund-helping-with-the-first-planting-at-a-model-farm-in-Kakamas-Northern-Cape-South-Africa-1024x567.jpg" alt="" class="wp-image-60163" style="aspect-ratio:1.8059964726631392;width:542px;height:auto" srcset="https://cms.forbesafrica.com/wp-content/uploads/2023/11/Tshego-Selepe-agribusiness-manager-at-the-Kgodiso-Development-Fund-helping-with-the-first-planting-at-a-model-farm-in-Kakamas-Northern-Cape-South-Africa-1024x567.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2023/11/Tshego-Selepe-agribusiness-manager-at-the-Kgodiso-Development-Fund-helping-with-the-first-planting-at-a-model-farm-in-Kakamas-Northern-Cape-South-Africa-300x166.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2023/11/Tshego-Selepe-agribusiness-manager-at-the-Kgodiso-Development-Fund-helping-with-the-first-planting-at-a-model-farm-in-Kakamas-Northern-Cape-South-Africa-768x426.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2023/11/Tshego-Selepe-agribusiness-manager-at-the-Kgodiso-Development-Fund-helping-with-the-first-planting-at-a-model-farm-in-Kakamas-Northern-Cape-South-Africa-1536x851.jpg 1536w, https://cms.forbesafrica.com/wp-content/uploads/2023/11/Tshego-Selepe-agribusiness-manager-at-the-Kgodiso-Development-Fund-helping-with-the-first-planting-at-a-model-farm-in-Kakamas-Northern-Cape-South-Africa-2048x1135.jpg 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Tshego Selepe, agribusiness manager at the Kgodiso Development Fund helping with the first planting at a model farm in Kakamas, Northern Cape, South Africa</figcaption></figure></div>


We have been and are working with other stakeholders to set up and further scale up proper collection and sorting mechanisms. And also we&#8217;re working with suppliers to secure a sufficient supply of recycled PET and we have now launched, in nine markets, recycled PET with our packaging footprint. We&#8217;re now in the process of further scaling that up and adding a few other markets to the roster.



And the third one, of course, is in our manufacturing and logistics setup. There, the focus is to drive towards renewable energy. That&#8217;s going to be a big focus area for us, again, as we look at COP28, for discussions with governments and other stakeholders.



Then the last focus area for us is on water, where we’ve pledged to become net water positive, and again, making good progress on that by reducing water usage consumption as much as possible, but also leveraging our technologies to help others save on water.



Q. With the countries and the markets you&#8217;re involved in, what kind of practices are you implementing to improve the livelihoods of farmers in those areas?



A. As I said, globally, we work with about 100,000 farmers – that&#8217;s from very large scale commercial farmers, like you would have in the Midwest, to smallholder farmers in, whether it be India, whether it be the African continent. Especially in the sector that I&#8217;m responsible for, we have tremendous experience working with small-scale farmers. We have a lot of know-how in terms of how you can reduce water usage, how you optimize the use of fertilizers, the best type of fertilizers, but also how we can work with those farmers to improve their yields. We&#8217;ve deployed that across many markets in AMESA, definitely also in Egypt and South Africa, as well as in Ethiopia.



In South Africa, one of the other things that we&#8217;re doing, as part of the financials acquisition, is we have made available a development fund, which is R600 million (approx. $32.7 million) in total. [Half of that] is specifically earmarked for agriculture, and with a focus of including emerging farmers into our value chain, and helping them with tools, with skills building, and with that, hopefully, also create better livelihoods for them, for their families and for their communities. That is one of the areas that we&#8217;re very much focused on in South Africa.



Q. With your renewable energy practices, what are some of these you&#8217;ve implemented or are implementing?



A. Net zero has many different components, because we have emissions across that entire value chain, but if you specifically look at what the focus is, and when it comes to our manufacturing and logistics setup, within manufacturing, the aim there is to move to renewable energy sources. That will be through investments in solar energy, using wind energy as well, where possible.



The big unlock that we need to still see happen in many of our markets is the establishment of power purchase agreements, so that will help us generate energy through renewable sources. And when we&#8217;re not in a position to use that energy, we can put it back on the grid. When we need energy from the grid, we can take from it. That is the ‘wheeling arrangements’, as they&#8217;re called, that is not yet in full force in most of the markets in AMESA. That is a big focus area for us in the discussions with local governments.



Second – when it comes to our fleet – you&#8217;ll see us investing in electric vehicles, in order to ensure that our fleet, over time, also becomes a fleet that is not using fossil fuels anymore, but is using renewable energy as the main source, to transport our products and raw materials.



Q. Let&#8217;s talk about opportunities in Africa, and then in the AMESA region in general. What are you seeing in terms of growth and expansion?



A. It spans about 45% of the world population. It&#8217;s a very young population. There is also an opportunity for us, as we look at that growth, to create very positive impact in the communities where we operate. And that is, again, linked to some of the work that we&#8217;re doing with farming communities, because, specifically for our foods business, we need to source crops, and we largely want to source those crops locally. The region as such, I think, offers a lot of opportunity for growth.

Eugene Willemsen

How This Global Company Is Pushing for Regenerative Agriculture And Renewable Energy In Africa

Championing financial independence for immigrants in the United States (US) is fundamental for digital banking startup, Waya. With a team also based in Kenya, fintech co-founders Aenoi Chanthavong, Hempstone Maroria, David Wachira and Renzo Sotomayor started by fixing the remittance problem.



A Zoom call that connected Washington DC in the United States (US), Kenya’s capital city Nairobi and Johannesburg in South Africa at the same time made this interview possible; just one minor example of what is now a norm in a hyperconnected world.



And yet, a concept as basic as financial independence and access to financial services for all is still a challenge on the African continent. Waya, a fintech based in the US that especially caters to immigrants, minorities and underserved communities, aspires to change this. “For us it’s that broad recognition that financial independence is not a solitary endeavor. It’s a collective pursuit.



The goal here is for us to unlock financial opportunities and provide the tools and services and resources that will enable people achieve their dreams,” says Waya co-founder Dr David Wachira.



“We find that if someone is not financially connected, or they are not integrated into the system, they are largely overlooked. As a result of that overlook, it has a huge impact on other facets of life. So we think of ourselves as coming in to actually solve that social impact problem.” 



A Waya account allows you to fund your account and hold money, make instant and secure Waya-to-Waya transfers, international money transfers, and go cashless or pay online with your Waya card.



Wachira, who previously served as a finance and economics specialist at the World Bank Group, started the company in 2019 with co-founders Hempstone Maroria, Aenoi Chanthavong and Renzo Sotomayor. Coming from diverse backgrounds, they each experienced first-hand the challenges with financial inclusion.



“We were connected in the industry by circumstance, and then that circumstance led us to be friends. I met Aenoi when I was refinancing my home. He was working at the World Bank credit union that catered mostly to immigrants, so it was just a natural connection. And this was almost four years before Waya was [even] a conversation,” says Wachira. “And then meeting Hempstone – it was a chance meeting. We happened to be meeting or knew a common friend,” he adds, “and long story short, in that particular friendship, the conversation of sending money on PayPal –because he was doing a lot of website and software development – came up.”



Wachira lived in the US and was paid in dollars but had a vested interest in Kenya and encountered challenges with large- value transactions, especially when he needed to travel there, while Maroria lived in Kenya but worked for a US company and was paid in dollars but found it challenging to move his money to Kenya. “We were both experiencing this problem and we thought ‘What can we do to solve it’? That’s how we started off trying to solve the issue of payments on the remittance side,” says Wachira. “The more we spoke to other immigrants, the aspect of remittance, of course, was important because we were experiencing it. But beyond that, was the issue of larger financial access.” He adds that they determined that those remittance issues were simply a &#8216;symptom’ of the lack of financial access.



“&#8230;people are sending money to their family and everything else. But if you start speaking to them ‘Tell me about how you receive your income, where do you get paid?’, they are like, ‘It’s very difficult to open bank accounts as an immigrant in the US; I have to transact with a lot of cash’&#8230; Then the more we started looking at it, if you try to fix the remittance problem, which is okay, it’s more symptomatic – the root cause is financial access. So we pivoted towards that and that’s how Waya was born.” 



They approached Chanthavong with the idea and he had seen the effects of these obstacles in his line of work. “In terms of the background, working for the United Nations Federal Credit Union, and the World Bank, I got to see that essentially, the guidelines or rules that was given, in terms of loans or lending, was not really catered to low-income or moderate-income immigrants like us,” he says. “I’ve worked with foreign nationals, who came from all over the world with visas, and they make great salaries, but because they don’t have the right documents – social security number – they couldn’t open up a bank account. It became just a perfect fit when David brought that up.”



According to the World Bank’s Migration and Development Brief, released in June, officially-recorded remittance flows to low- and middle-income countries (LMICs) are estimated to grow by 1.4% to $656 billion in 2023. However, as economic activity in remittance-source countries is set to soften, it may limit employment and wage gains for migrants. “For me, I can also relate, coming from an immigrant family, from Laos, during 



the Vietnam War. And when you’re settled here as a refugee in the United States, there’s a lot of other things that was not given to you, because you know you have to rely on public assistance, low income and all these other stuff,” Chanthavong recalls.



“This problem that we’re trying to solve is to make sure that we incorporate or include all those minorities [that] were denied because traditional banks didn’t understand them. They didn’t understand where they came from, didn’t truly understand their needs,” he adds. “Most traditional banks typically would focus on clients that are less risky or risk-averse, right? And that was the reason. This was a perfect match. Since then, I got introduced to Hempstone and the rest was history.”



Maroria, a professional in fintech, mobile payments, e-commerce and disruptive technologies, says as an innovator, his personal experience with remittances is what triggered him to start thinking about building solutions around payments for immigrants. “Our goal really is to continuously build products and solutions within our banking offering, to make sure that we are able to give immigrants and minorities, the tools and the power they need to be able to stay ahead, especially in these countries where they live and work,” he says.



“For us, that means being able to continuously add on more services, like lending and credit, and [the] ability for these people to be able to actually access products. And then majorly one of our biggest things in the pipeline is being able to help all without social security numbers. So these, I would say, would be students, and other people that move into the United States but are not really in the system.”



“One of the key items we’ve done in trying to build innovation is us going into the different communities, understanding their user case, and then developing a product to be able to meet those needs,” Chanthavong says. The startup today has over 5,000 active users and has closed pre-seed investment from strategic investors and partners. 



“We’re discovering different AIs you can embed in building better processes, for example, customer service, engagement. Rather than doing the coding manually, you have AI that’s able to read this code and something that would take you, I’m just going to exaggerate, years, takes you 10 minutes. These are the things we’ve been able to incorporate and innovate to provide better services to our customers.”



When asked about the challenges they have faced, Maroria says capital investment was the biggest, along with navigating the regulatory landscape – especially in a country like the US that is one of the most highly-regulated markets in the world – and being able to build a team, 70% of which is based in Kenya, that understands a product in the US market. 



“I think maybe a crux of the problem is we think we just have one solution, and we will be the only people that can actually solve this particular aspect. We can’t be it all to everyone but what we can do is try to address a particular problem and even innovate and actually have more competition that helps solve that particular problem,” says Wachira. “If we can actually lead the way, be that tip of the spear that enables others to come and say, ‘You know what, let me build on what Waya has done’ and kind of light up the darkness so to speak.”

Waya co-founders Aenoi Chanthavong,Hempstone Maroria and David Wachira; Image supplied

From Africa To The US: Championing Financial Independence For Immigrants

Earning the support and trust of the community surrounding the Malaika school in the Democratic Republic of the Congo (DRC) was vital in its early days, and still is today, says the non-profit’s founder and philanthropist, Noëlla Coursaris Musunka.



In the heart of Kalebuka – a village in Lubumbashi in the Democratic Republic of the Congo (DRC) – the Malaika school, which opened its doors in 2011, has just celebrated its first graduation.



Empowering girls through education has been a key focus of the grassroots non-profit organization and founder, model and philanthropist, Noëlla Coursaris Musunka tells FORBES AFRICA that having the support structure that she has, has been vital.



“It has been challenging to help the community recognize the value of girls’ education when it has been a part of their culture to prioritize boys’ education and expect girls to do domestic duties only.



“When we gather the community to play sports we teach them about equality, social cohesion and the value of education. This has helped them to recognize why girls should be educated and to be supportive of this,” she says.



The United Nations Educational, Scientific and Cultural Organization (UNESCO) estimated that the out-of-school population in sub-Saharan Africa reached 98 million in 2021.



However, the organization noted that “important data gaps have been filled in countries that have large out of school numbers but where no administrative data of good quality has been available for over a decade”. This included the DRC (5.9 million).


<div class="wp-block-image">
<figure class="aligncenter size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.forbesafrica.com/wp-content/uploads/2023/08/ROB3606-1024x681.jpg" alt="" class="wp-image-59153" style="width:662px;height:440px" width="662" height="440" srcset="https://cms.forbesafrica.com/wp-content/uploads/2023/08/ROB3606-1024x681.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2023/08/ROB3606-300x200.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2023/08/ROB3606-768x511.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2023/08/ROB3606.jpg 1500w" sizes="(max-width: 662px) 100vw, 662px" /><figcaption class="wp-element-caption"> Noëlla and a student. Image Supplied. </figcaption></figure></div>


Since its establishment, Malaika has developed into a primary and secondary school, and a community center and organic farm has been added, along with the refurbishment of 30 wells in the area.



“It has been extremely important to earn the trust and support of the community. Our mission is to empower girls and their communities and if community members were not interested in taking part then our work would have had minimal impact,” Musunka says.



“Our school, and our community center that provides vocational education and training to youth and adults, have been better because of the community’s help and support.&nbsp;Having their buy-in with our community center where they come to play sport and learning together has been wonderful to see and when whole families come and benefit from education, the girls at our school benefit even more.”



She also emphasizes that the support of the community was vital in getting the girls to school in the early days, and that many have been volunteers and helped to maintain the premises and land over the years.&nbsp;



Students at the school receive Science, Technology, Engineering, and Mathematics (STEM) education and can learn concepts like VPL, Blockly and Scratch languages as well as other basic and advanced computer skills.



Along with this, the school teaches sustainable farming practices and ensures that the community has access to basic needs, like clean drinking water, all of which can give the community what it needs to uplift itself in the long-term.



“I would like to see more investment in education and community development. Malaika is a sustainable ecosystem that can be duplicated in any context and we have created a toolkit in order to support others to create a similar provision in their communities.



“I would also love to see more focus on sustainable development. There also needs to be a holistic emphasis, including focus on infrastructure and health needs. There needs to be provision that can empower a community with lasting change,” says Musunka, who lives in the United Kingdom with her husband and children, and was named one of the BBC’s 100 Most Influential &amp; Inspirational Women in 2017.



As a mom, a feminist, and a believer in the right to access to education, health, and opportunity, her advice to young girls and women on the continent is to bet on yourself and aim high.



“Keep working hard and don’t give up even if things don’t seem to be going your way, just keep following your passion.”

_ROB7761

Pushing For Change In The DRC: School-Founder On The Challenges And Rewards Of Prioritizing Girls’ Education

An in-depth look at investment in some of the continent’s most promising entertainment industries reveals areas of growth, challenges and what the future might hold.



Africa’s heartbeat is in rhythm with the passion, culture and creativity of its people. On a continent of 1.4 billion people according to estimates by the United Nations (UN), there are effectively 1.4 billion stories to tell, each one unique and brimming with potential.



The question is: what is the narrative, and who is telling the story? 



Africa’s prospects in creative industries like art, fashion, film and television, crafts and architecture, among others, are well-documented. An oft-quoted fact comes from the United Nations Educational, Scientific and Cultural Organization’s (UNESCO) 2021 report African Film: A Booming Industry. It illustrates the potential in the film and audio-visual industries, which could result in generated revenue of $20 billion per year.



Speaking on the outlook for entertainment and media in Africa over the next few years, Charles Stuart, PricewaterhouseCoopers (PwC) South Africa’s Entertainment and Media Partner, says to FORBES AFRICA:



“We look at consumer spend in terms of what’s covered from a cinema perspective. [It] is growing; it’s just taking longer to recover to where it initially was. Is cinema dead? No, we are not seeing that.”



But where is investment for this forecasted to come from? With the growth of video-on-demand (VOD) and over-the-top (OTT) services, and a burgeoning appetite for authentically African media and content, venture capital (VC) is poised to be at the forefront of development on the continent, for film and television in particular.



<h4 class="wp-block-heading has-text-align-center" id="h-show-me-the-money-jerry-maguire-1996">“Show Me The Money” (Jerry Maguire, 1996)</h4>



The African Private Capital Association (AVCA) indicates that 58 private capital investments, with a total reported value of $346 million, were recorded in Africa’s creative industries over the last decade (2012-2022).



“Starting from a low base of only four investments in 2012, private capital investments in Africa’s creative industries more than tripled, reaching a total of 13 in 2022,” says AVCA.



Notably, VC investments attracted the largest share of these. They accounted for about 67% of the total number over the 2012-2022 period, followed by private equity investments at 33%.



<div class="wp-block-media-text alignwide is-stacked-on-mobile" style="grid-template-columns:36% auto"><figure class="wp-block-media-text__media"><img loading="lazy" decoding="async" width="429" height="522" src="https://cms.forbesafrica.com/wp-content/uploads/2023/08/venture-capital-1.png" alt="" class="wp-image-59059 size-full" srcset="https://cms.forbesafrica.com/wp-content/uploads/2023/08/venture-capital-1.png 429w, https://cms.forbesafrica.com/wp-content/uploads/2023/08/venture-capital-1-247x300.png 247w" sizes="(max-width: 429px) 100vw, 429px" /></figure><div class="wp-block-media-text__content">
<blockquote class="wp-block-quote">
“WE LOOK AT CONSUMER SPEND IN TERMS OF WHAT’S COVERED FROM A CINEMA PERSPECTIVE. [IT] IS GROWING…
<cite>Charles Stuart, Entertainment and Media Partner, PwC South Africa</cite></blockquote>
</div></div>



“These investments spanned various sectors, including the development of online gaming platforms, music and video streaming developers, operators of music websites, live broadcasting, film streaming platforms, providers of advertising and marketing services, and clothing designers, among others,” says AVCA.



Jeff Schlapinski, Managing Director, Research, at non-profit, independent membership organization, Global Private Capital Association (GPCA), echoes these sentiments. 



“Africa’s VC investments in media and entertainment companies reached $31.2 million across six rounds in 2022, a new record in terms of deal value.”



However, Schlapinski notes that investments into this sector have, historically, represented a very small percentage of investment activity in Africa’s venture ecosystem (~1% of the $2.75 billion invested in VC in Africa in 2022, according to GPCA).



“The significant growth of the venture capital asset class in recent years, along with the increased allocation of capital towards technology or technology-enabled businesses, has contributed to the growth of investments in this sector as well,” says AVCA.



<h4 class="wp-block-heading has-text-align-center">Economies In The Spotlight</h4>



According to AVCA, the increase in the number of investments in Africa’s creative industries strongly indicates investors’ increasing interest and recognition of the sector’s potential. A handful of countries attracted the biggest chunk of that investment over the 10-year period (2012-2022).



“In terms of their geographic distribution, South Africa has attracted the largest share of private capital investments in Africa’s creative industries at 24%.” Following South Africa is Egypt, accounting for 14% of these investments. The country has also emerged as a significant technology hub on the continent in recent years.



“Nigeria and Kenya, two of Africa’s largest private capital markets, have each accounted for 10% of these investments,” says AVCA. Speaking on 2022, in particular, Schlapinski notes that the markets that led VC investments in media and entertainment – in terms of deal value – were South Africa with $22.5 million, Nigeria with $5.7 million and Egypt at $2 million.



They represent three of the four most active countries for overall VC investment with Kenya rounding off the top four.



<h4 class="wp-block-heading has-text-align-center">The Redefinition Of Main ‘Stream’</h4>



Regarding three of sub-Saharan Africa’s emerging economies, namely South Africa, Nigeria and Kenya, streaming service, Netflix, released its Socio-Economic Impact Report earlier this year, where it reveals its impact since entering the market.



Over the 2016–2022 period, it invested $175 million in content and in the overall creative environment in these countries specifically.



South Africa received the bulk of this investment, accounting for at least $125 million. In addition to that, over the same period, it invested in upwards of 425 licensed titles in these economies, further opening up the market to a host of proudly African films and television series.



Expanding on PwC’s outlook for Africa, Stuart says that success for OTTs necessitates an understanding of the type of content you put out there.



“You can have a wonderful distribution platform [but] if you’ve got nothing good to show – which is part of cinemas’ challenges over the last while; some of those big titles and also the lack of big titles has worn out in terms of what we’re seeing.”



He emphasizes the fact that content is always going to be king.



“Coming back to Africa, the culture and the richness and the heritage that we have, if you drive around, you’ve got Shaka [iLembe], there’s Rosemary’s Hitlist (both documentary series) advertised on billboards. You’re seeing the importance of local content to the success of your streaming platforms. Initially, when a Netflix entered Africa, it didn’t do really well. All it was doing is, ‘here’s the international content’. People were familiar with it but we like our African stories as well,” says Stuart.



With streaming platforms, the cost base is mostly fixed, so, in reality, he says that it’s the subscriber base that drives the growth.



“How do you really translate things into profit? It’s getting more people to subscribe to your service. What they were lacking a lot in the early days was this local content – that really resonated with it. What many of the streamers have learned is that it is about finding that balance between your international content, supplemented with your local content. When you look at a lot of the communication coming out of Apple, Netflix, Amazon, there’s continued communication around the fact that they are investing in local content.”



Stuart adds, “There’s still opportunity for your local players but it’s not an easy industry. For every bit of content that ends up on Netflix, there’s probably 10 pieces of content that doesn’t end up on Netflix.”



<h4 class="wp-block-heading has-text-align-center">A Continent Up For The Challenge</h4>



The African Export-Import Bank (Afreximbank) recently took an in-depth look at the continent’s Culture and Creative Industries (CCIs) in its African Trade Report 2022: Leveraging the Power of Culture and Creative Industries for Accelerated Structural Transformation in the AfCFTA Era.



It noted that some of the obstacles hindering the growth of CCIs include policy frameworks, finance, infrastructure, intellectual property rights, standards and norms in the area of cross-border trade, accurate data, language barriers, colonial legacy and an extroverted model.



Furthermore, it states that “a positive outcome of the pandemic has been the necessitated shift to digital solutions and online streaming, which has helped boost the performance and resilience of creative industries underpinned by digital models and platforms”.



While Africa does have its fair share of challenges, PwC’s Africa outlook for 2023-2027, which is expected to be released in September, sheds light on infrastructure investments, particularly in the telco space, which has a fundamental impact on streaming platforms, data consumption, and the growth of mobile gaming on the continent.



<div class="wp-block-media-text alignwide is-stacked-on-mobile" style="grid-template-columns:39% auto"><figure class="wp-block-media-text__media"><img loading="lazy" decoding="async" width="333" height="420" src="https://cms.forbesafrica.com/wp-content/uploads/2023/08/venture-capital-2.jpg" alt="" class="wp-image-59060 size-full" srcset="https://cms.forbesafrica.com/wp-content/uploads/2023/08/venture-capital-2.jpg 333w, https://cms.forbesafrica.com/wp-content/uploads/2023/08/venture-capital-2-238x300.jpg 238w" sizes="(max-width: 333px) 100vw, 333px" /></figure><div class="wp-block-media-text__content">
<blockquote class="wp-block-quote">
“AFRICA’S VC INVESTMENTS IN MEDIA AND ENTERTAINMENT COMPANIES REACHED $31.2 MILLION ACROSS SIX ROUNDS IN 2022, A NEW RECORD IN TERMS OF DEAL VALUE.”
<cite>—Jeff Schlapinski, Managing Director, Research, GPCA</cite></blockquote>
</div></div>



“For the first time, in this year’s entertainment and media outlook, there’s a telco outlook that has gone with it. One of the aspects that has been covered as part of that telco outlook this year is telco capex spend – how much are the telcos actually looking to spend from a capex perspective in the various markets,” says Stuart.



A glance at the numbers in the assurance, tax and advisory services provider’s Perspectives from the Global Entertainment &amp; Media Outlook 2023–2027: Resetting expectations, refocusing inward and recharging growth for the three aforementioned sub-Saharan African regions seems to indicate an appetite for investment. This includes the convergence of the creative and technology industries.



“When we look at capex spend – and there is some further breakdown in terms of broadband, mobile broadband – in Kenya in 2022, there was $470 million worth of spend in the capex space and that’s going to grow each year at around 2.2%. By 2027, telcos are forecast to be spending around $520 million on their capex infrastructure in Kenya. The vast majority of that – about 85% – is going to be in the mobile space. That probably comes as no surprise given the strong mobile- first characteristics that the market has.”



Stuart adds: “Nigeria is going to be spending more than three times that, so almost $2 billion by 2027. There is a lot of investment in Nigeria. You’ve got your big players – Glo, MTN – they’ve been spending in terms of upgrading the network. They’re already sitting at about



$1.8 billion and it’s going to be a bit above and below that over the forecast period; fairly consistent with that level. Again, the vast majority of that is sitting in the mobile space. South Africa is spending $1.6 billion and that’s actually going to drop a little bit over the forecast period. It makes sense in a way because a lot of the 5G stuff is already in progress. There’s a lot of spend happening at the moment but over time, that does mean it will slow down.”



Data consumption is expected to continue its increase, leaving telcos with solutions to find from an economic and infrastructure perspective. “The challenge that telcos and, particularly, the content providers have is the monetization of that because [it’s] very expensive to upgrade this. There’s obviously downward pressure on data prices but money needed to be spent to upgrade the infrastructure to cater for the increasingly data-heavy world that we live in.



About 80% of data consumption is sitting in the video space, and there are various other categories around communications, music etc. Does it mean that people are watching more than listening to music? Not necessarily. Video [is] just much more heavy from a data usage perspective,” says Stuart.



<h4 class="wp-block-heading has-text-align-center">African, Tech Savvy &amp; Proud</h4>



Another notable point in the report is the impact of the continent’s youth on the growth of the mobile gaming sector.



“The fastest growing segment of video games we’re seeing is in what we call casual and social gaming. That’s your Candy Crush, it’s mobile games that people either play on a free-to-play model or ‘freemium’ where it’s free to start but then you might start paying for things down the line. A lot of that is also funded potentially through advertising that appears in those games so that’s where a lot of that growth is coming from,” says Stuart.



These developments have also opened up an emerging avenue in the cinema space and he adds that this could create opportunities in emerging economies that are primarily tech and mobile-focused.



“Video games are seen as one of the access points to the youth. [They] engage in it and we’re seeing things expanding. During Covid, the Fortnite platform, which people access from a video games’ perspective was used to host music concerts – Travis [Scott], I think, was who appeared on the Fortnite platform and had thousands and thousands of people watching his show, whereas you previously wouldn’t have seen it. There’s a bit of multi- functionality within the video games space.



“What we are seeing in the cinema space is interesting. We’ve always had, traditionally, other sorts of areas like Lego, and then you’ve got Lego: The Movie. We are now starting to see video games that have movie titles and movie franchises attached to them. Why? Because you’ve got this audience that’s already engaged with your content in the video games space and how do you try and stay engaged with them but in a different media format? It could be a series on OTT or it could be an actual big screen film. Maybe that’s some sort of element of opportunity within Kenya and Nigeria – as video games continues to grow, that could help to spur some growth as that content is repackaged into the cinema space,” Stuart concludes.

singer on stage with crowd reaching for him

Where Does Venture Capital Feature In Africa’s Entertainment Sector?

“It’s not just a knowledge-sharing initiative,” Business Unity South Africa (BUSA) CEO, Cas Coovadia, tells FORBES AFRICA of its collaboration with government. This is following a pledge by CEOs from over 115 of the country’s leading corporations to contribute to addressing challenges around energy, logistics, crime and corruption.



With CEOs from over 115 of South Africa’s leading companies signing a pledge recently, stating their firm belief in the potential of the country and their aim to achieve sustainable, inclusive economic growth, there is new hope from Big Business and a message – that it’s keen to work with government and build the country.



The companies span a range of sectors and include the likes of Anglo American, Sasol, SAB, RCL Foods, Coca-Cola, Unilever, Arcelor Mittal, PPC, Mondi, Hollard, Allan Gray, Deloitte, KPMG, Naspers, EOH, Growthpoint, Fidelity, and more.



The reported market cap of the 115+ entities exceed R11 trillion ($598 billion) and they together employ more than 1.2 million people.



“Through strategic partnerships and focused interventions, we have the power to make a significant and positive impact on our nation, creating hope for all South Africans. We are resolutely committed to being a force for good,” the pledge concludes.



Business Unity South Africa (BUSA) has said, in a statement on this pledge, that through the Business for South Africa (B4SA) structure, it is collaborating with government to implement key interventions in energy, logistics and transport, and crime and corruption.



BUSA CEO Cas Coovadia says following their dialogue with President Cyril Ramaphosa, which resumed earlier this year, they are collectively working on a structure to tackle these issues.



“We don’t want to reinvent the wheel in trying to determine what the problems are. We’re actually giving three pages on each of these – so these are the interventions you need to make and if you make those interventions, this will be the impact on investment, growth and jobs.



“We briefed a broad range of CEOs on this and what we suggested is that if they can sign a pledge along the lines of the one you’ve seen, which basically backs up this work we are doing.”



He adds that this move reinforces the message that business is keen on working with government.



“We will put in the resources and capacity to make all of this happen, provided we have a structured relationship with government, with clear outcomes, with clear timeframes and their people are sitting with us in a real partnership – that’s what the pledge is all about.”



President Ramaphosa had a follow-up meeting with business leaders on Tuesday, continuing their collaborative efforts.



South Africa’s energy challenges have been well-documented. According to an International Monetary Fund (IMF) country focus, published in June, the economy grew by 0.4% between January and March this year, with power cuts, volatile commodity prices and a challenging external environment the main contributions to the weak growth.



The fund adds that it projects that, by year-end, real GDP growth will fall sharply from last year.



“The country has faced rolling blackouts after years of mismanagement of the state-owned utility, Eskom, prompting the authorities to ease the registration process and licensing requirements for energy production to encourage private sector investment,” cites the report.



“Additional far-reaching reforms are needed to achieve job-rich, inclusive, and greener growth. These include improving the country’s energy and logistical constraints, reducing barriers to private sector investment, addressing structural rigidities in the labor market, and tackling crime and corruption.”



Encouragingly, Coovadia says that energy is actually where government and business have made the most progress.



“[The President] put together a National Energy Crisis Committee (NECOM) in his office. He then realized he doesn’t have the expertise to implement the plan and approached us. We discussed this – we were happy with the plan on the basis that there were some good people at NECOM under very difficult circumstances, trying to actively get the plan implemented,” he says.



This is where the Resource Mobilization Fund (RMF) came in. The Presidency reported in March that the fund had raised R100 million ($5.4 million) from businesses and philanthropies.



“We put together a light touch, not for profit, called the Resource Mobilization Fund to do two things – raise the money and procure the expertise. We raised half the money from our global foundation, the rest from South African business. We put together a procurement team made up of procurement people from five corporates. On the basis of the expertise NECOM needed, we went through an open RFP (request for proposal) process.



“As of three weeks ago, expertise have been donated to NECOM and they started working with NECOM to implement the plan as a matter of urgency. We’ve put engineers into four power stations to increase the energy factor in those power stations so we’re working well with them on energy. There’s good progress.”



While South Africa’s challenges in energy do clearly impact the economy, Coovadia says progress in logistics is equally, if not more, crucial.



“Logistics is probably a bigger problem than energy in the sense that the opportunity costs on our ports degrading, our rail system degrading, as a result of goods being transferred by road – our road system degrading – the cost to business, of that, are severe,” he says.



“We believe if we get that right, we will have a significant impact on instilling confidence in the country, on investors coming in and on actually reducing the cost of doing business, and the cost of production and businesses operating efficiently. To us, that’s a big issue.”



Coovadia reiterates that the massive problem with crime and corruption is that it has a direct impact on business, the confidence of investors and in the lives of the country’s people. But the focus on these three areas does not mean they are the only areas of concern.



“Let’s get to a stage where we can show results on these and then we can look at other stuff.”



He also mentions the importance of impacting more than just the country’s major companies.



“One of the pieces of work we’ve done in addition to this is looking at what are the factors that can lead to employment, looking at the informal sector, the SME sector and so on. As part of this, we would want to see one, from a regulatory point of view, what needs to be done, but secondly, how does bigger business relate to SMEs and the informal sector,” says Coovadia.



“Firstly, in the SME sector, to try and get SMEs in the value chains, to support SMEs, to look at why so many SMEs are failing and what we can do about that. From an informal trading point of view – to see what light touch regulation [and] management that can actually get those informal traders into more impactful situations, and how points and supermarkets in townships can work with informal traders. As soon as we’re ready to release that, we will do so.”



Coovadia concludes that the business sector is going into this collaboration with their eyes open and will assess and review their stance in the next four or five months if there’s no traction or progress being made.

Author: Nicole Pillay

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