The June/July 2023 issue of FORBES AFRICA was my favorite reading for the month as it touched on a subject close to my heart – agriculture. In a conversation with Dr Akinwumi Adesina (President, African Development Bank) a few years ago, he talked about the importance of agriculture (one of his ‘High 5’ pillars is ‘Feed Africa’) and the need for the youth in Africa to engage in the sector. His famous words to me at the time were “we need to make agriculture sexy again so that the younger generation is motivated to enter this sector that can transform lives”. 



His words were inspired not only by the historic impor- tance but also by the opportunities being created by innovations in the sector. It was therefore hearten- ing to read stories of young ‘agripreneurs’ from all over Africa who are, through agritech, trying to bring innovation into the agricultural ecosystem and create more efficient supply chains from seed to soil to market.



Agriculture in Africa, as in a number of Asian economies, is the most important sector contributing an average of 20% to 24% of the total Gross Domestic Product of sub-Saharan Africa (SSA). In absolute terms, there are about 33 million smallholder farms of which an estimated 35,000 commercial farm units are in South Africa; 5,000 to 7,000 of these farms produce 80% of the agricultural output in South Africa.



Farmers living in these smallholder farms (who largely use their hands for cultivation) contribute 70% of the food supply on the continent. Corre- spondingly, 65%-70% of Africans rely on subsistence agriculture for their livelihood.



Considering that Africa has most (about 60%) of the world’s remaining uncultivated arable land, the continent imports between $35 billion to $45 billion of food/agricultural products each year, since only about 10% of the available land is being cultivated. This stems from poor infrastructure development and therefore limited access to a large part of the 700 million hectares to 800 million hectares that can be cultivated. Other than land, other areas that need machinery, technology, infrastructure development and distribu- tion. 



The most critical of all factors is easy access to low-cost finance and while financial institutions talk a good talk, very few provide reasonably-priced working capital to farmers. To make the continent self-suffi- cient, there is a need to invest almost $75 billion to $80 billion annually in the agricultural sector in Africa and there needs to be a concerted effort by policymaker to ensure that the banking sector comes to the party failing which, the continent, despite all its natural ad- vantages, will be unable to feed its growing population and alleviate poverty. 



An important factor today, not just in agriculture, but across all industries, is educa- tion and relevant literacy across all demographics.



A few years after the launch of CNBC Africa in 2007, I started a thought leadership discussion on the Future of Education in SSA. Over the years, we have identified areas including redefining the purpose of education to make it more relevant to today’s times. Each year, we have had some brilliant minds from around the world join the deliberations to bring forth different global perspectives. 



At the 2023 virtual sum- mit in July, we decided to unpack some of the current challenges, particularly relating to youth unemployment in Africa that has reached alarming levels. In many countries, more than 40% of fresh graduates do not find stable employment, even a year after finish- ing university. Part of the problem is the historic gap between the jobs being created and the number of students graduating from university. This problem, however, is being compounded by the transformation of existing jobs that require new skillsets, which ap- plicants do not have; nor can these be secured through unstructured staff development programs.



Owing to a very difficult history of colonization, the African education landscape is unique in its evolution reasonably-priced internet. SSA today has only 22% internet access compared to a global average of 63%. Furthermore, broadband access in Africa comes at a very high cost. In terms of afford- able pricing, India has the fifth lowest internet data rates in the world, with the cost of data at about 17 US cents per gigabyte. In comparison, South Africa at $2 per gigabyte is almost 12 times higher in price than India. The other important nuance is the low Gross Enrollment Ratio (GER) of 9.4% in Africa.



We live in a world today where artificial intel- ligence (AI) is responding to queries predicated on existing datasets. The debates are ongoing about the role of AI in all aspects of the future. No one can predict this accurately but it’s safe to say that if you can imagine something, coding, creativity and AI will find a solution. 



It sounds surreal, but it is the best time to be alive, as we have witnessed more possibili- ties in the last few years than we have seen in decades of analog. ChatGPT, the new kid on the block, has challenged the education arena with so many dimensions and has created a fear of redundancies and whether machines will take over most jobs. 



While these are genuine, short-term apprehensions, we do know that job displacements from what computers and machines can do are different from functions performed by human beings relating to creativ- ity, emotional intelligence, critical thinking, and problem-solving. As some jobs are being taken over by automation, more are being created that will continue to replace the older ones in the form of supervision of automated systems, programming, and maintenance. 



As an exam- ple, during the internet era, new jobs relating to web design and development, digital marketing and cyber security, to name a few, were created. Now, with blockchain, AI and virtual reality, the world is opening up to workplace transformation, where coding, computer sciences and creativity will play an important role in creating job replacements in areas that we are yet to discover.



Another important dimension that was discussed during the Future of Education Summit was the impor- tant and underlying role of the economics of transfor- mation. Conservatively, unemployment costs for coun- tries run into billions of dollars of wasted resources each year. Global GDP could go up by trillions of dollars if unemployment is curtailed. On the other hand, the cost of reskilling is estimated to be between $10,000-$20,000 per new graduate joining a company, which is cumu- latively running into billions of dollars for employers. What this points to is that these costs to business can be optimized if there is closer collaboration and conversations between governments, academic institu- tions, and the corporate world.



In practical terms, the most transformative out- comes are going to come from industry where large employers will define their needs to educational in- stitutions. Colleges and universities need to adapt to these requirements by designing bespoke curriculum that will increasingly become industry-certified. The day is not far when human resources (HR) departments in organizations will be driven by professors who will articulate the needs of the establishment and act as an interface with academia.



The role of humanities will continue to increase critical thinking and creativity into sciences making up for the inherent deficiencies in machines. This blend of the two worlds of Arts and Sciences, which have always been historically segmented into silos, will provide the solutions in the future world of AI. In this context, one of the most interesting discussions was on the concept of “a factory within a university” or “a university within a factory”. 



The possibilities are endless, and the deliberations were animated and intense, but the trend line was clear that for a progressive continent, investment in capacity building is in education so that the future generations of youth have equal opportunities as their peers in other parts of the world.



An important event for us at the ABN Group is the annual All Africa Business Lead- ers Awards (AABLA) ceremony that recognizes business leadership on the continent in vari- ous categories. Being an entrepreneur, I know from three decades of experience that building a business at the best of times is a challenge.



However, when you establish businesses in emerging markets like SSA, where you cannot take anything for granted, the skills, adaptability, perseverance and commitment needed requires leadership to be a lot more versatile and humane. To recognize these heroes from amongst us, we hosted the event for the sec- ond time at the Convention Centre in Sun City, South Africa, before a gathering of 450 business leaders from across Africa.



The event this year was attended by a large contingent of international business leaders from Nigeria, Kenya, Botswana, Namibia, Rwanda, the US and the UAE. We were also privileged to have in our midst, and perform- ing for our guests, two-time Grammy award- winner, Wouter Kellerman. An issue that limits greater participation is the restriction on business visas by South Africa. 



Many guests from Nigeria and Rwanda were unable to trav- el for the AABLA. As we talk about increasing strategic relationships, inter-Africa trade and other collaborations, we are still unable to develop a basic agreement on cross-border travel for Africans. These barriers need to be lifted at the earliest to have meaningful people-to-people engagements for better understanding and social engagements that are essential for building a strong foundation for collaborations.

Rakesh Wahi

The Important Conversations Around Agriculture And Education In Africa

<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



The National Institutes of Health is launching a second phase of clinical trials for treatments of long Covid, the&nbsp;<a href="https://www.nih.gov/news-events/news-releases/nih-launches-long-covid-clinical-trials-through-recover-initiative-opening-enrollment" target="_blank" rel="noreferrer noopener">agency announced</a>&nbsp;Monday—the latest step in addressing the poorly understood long-term impacts of Covid-19.



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



The NIH is&nbsp;<a href="http://www.trials.recovercovid.org/" target="_blank" rel="noreferrer noopener">seeking people</a>&nbsp;who are experiencing long Covid symptoms to participate in one of four trials as part of its Researching Covid to Enhance Recovery, or RECOVER, initiative.



The first trial—dubbed “RECOVER-VITAL”—will seek to study how Covid-19’s long-term effect on patients’ immune system can be treated.



The second—RECOVER-NEURO—will attempt to find interventions to the neurological impacts of long Covid like brain fog, memory issues and difficulty paying attention, problem solving or critical thinking.



The third—RECOVER-SLEEP—will try to find treatments for sleep-related issues, and the final trial—RECOVER-AUTONOMIC—will study treatments for Covid-19-induced problems in the autonomic nervous system, which controls a range of bodily functions including heart rate, breathing and digestive system activity.



Additionally, the NIH is working on a fifth trial that it hopes can find a treatment for the long-term impacts Covid-19 has had on some people’s ability to exercise, but that trial is still in the works.



These trials will involve a number of medicines and therapies including Pfizer’s drug Paxlovid, which was initially developed to treat Covid-19 immediately after a positive test, and a web-based brain training program called BrainHQ the NIH hopes will help people regain neurological function.



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<h2 class="wp-block-heading" id="h-what-to-watch-for">WHAT TO WATCH FOR</h2>



More trials in the future. In addition to the in-development exercise trial, the NIH said it expects to launch at least six more trials in the coming months. These trials will enroll participants on a rolling basis, the NIH said.



<h2 class="wp-block-heading" id="h-big-number">BIG NUMBER</h2>



$1.15 billion. That’s how much the NIH is spending on its RECOVER initiative, making it the largest program in the world aimed at understanding, treating and preventing long Covid.



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



Long Covid occurs when patients continue experiencing symptoms and after-effects of Covid-19 months after the virus has left their body. Those include brain fog, difficulty exercising and other issues.&nbsp;<a href="http://www.kff.org/policy-watch/long-covid-what-do-latest-data-show/" target="_blank" rel="noreferrer noopener">A study</a>&nbsp;from the Kaiser Family Foundation found that 15% of all U.S. adults have at some point experienced long Covid symptoms and in January, when the study was being conducted, 6% were currently experiencing symptoms. It was&nbsp;<a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7539940/" target="_blank" rel="noreferrer noopener">first identified</a>&nbsp;around spring 2020 by online groups of patients who were initially ignored by the larger medical community, but later gained acceptance. Doctors still know very little about long Covid, but these clinical trials mark the most significant attempt to treat these symptoms.



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<a href="https://www.forbes.com/sites/ariannajohnson/2023/02/23/long-covid-linked-to-heart-problems-here-are-the-symptoms--and-whos-at-risk/?sh=538b0a246890">Long Covid Linked To Heart Problems: Here Are The Symptoms – And Who’s At Risk</a>&nbsp;(Forbes)



<a href="https://www.forbes.com/sites/alexknapp/2023/06/14/innovationrx-scientists-may-have-figured-out-whats-behind-long-covid/?sh=919c89c602b2">InnovationRx: Scientists May Have Figured Out What’s Behind Long Covid</a> (Forbes)

Researcher working in a biochemist laboratory

NIH Opens Clinical Trials For Long Covid Treatment

Greta Gerwig’s Barbie and Christopher Nolan’s Oppenheimer are bringing audiences back to the cinemas.



&nbsp;‘Barbenheimer’ fever is gripping South Africa too.



The word, coined by social media users days ahead of the simultaneous release dates of Greta Gerwig’s Barbie and Christopher Nolan’s Oppenheimer, has turned the spotlight on the thumping return of the big screen, post-pandemic.



“The results for the opening weekend of Barbie and Oppenheimer were way beyond our forecasts and our expectations,” says Lynne Wylie, Chief Marketing Officer at Ster-Kinekor (network of movie theaters in South Africa), to FORBES AFRICA. “It was Ster-Kinekor’s biggest opening weekend by far in the post-Covid environment, and we are thrilled that more and more people are once again experiencing the joy of watching a film in a cinema.”



In the United States (US), ‘Barbenheimer’ generated more than $235.5 million in ticket sales, according to CNBC, on its opening weekend. Barbie smashed expectations by earning $155 million, becoming the biggest movie launch of the year and the biggest box office debut by a female director. Oppenheimer collected a reported $80.5 million, making it one of Nolan’s most-acclaimed and commercially successful films.



A full-fledged international box office phenomenon, according to Google Trends, interest in the two films also continues to soar in South Africa.



Despite being starkly different, with one being a sweetly subversive comedy starring Margot Robbie as the popular doll and the other with Cillian Murphy portraying the father of the atomic bomb, the two movies have managed to pull audiences in for an unlikely double feature.



“There’s something really fun about coming back [to the cinema], and I know our show is sold out,” Daniela Lamparelli, a member of the theater audience last weekend in Johannesburg watching Barbie first, followed by Oppenheimer, tells FORBES AFRICA. “It’s going be really fun to watch it and hear everyone’s reactions. It’s quite a nice experience to watch it in a cinema with lots of people. When cinemas are quite empty, you feel like watching movies at home.”



Much like the rest of the world, South Africa’s cinemas have struggled to get audiences back to theaters after the pandemic. According to a recent report in News24, cinema attendance at Ster-Kinekor was <a href="https://www.news24.com/news24/tech-and-trends/news/has-barbenheimer-fever-hit-south-africa-20230720">below 50%</a> of 2019 pre-pandemic levels until recently. Restoring a sense of normalcy is a mountainous endeavor, given factors such as the rise of streaming giants such as Netflix, Disney+, and Showmax.



The theatrical window of exclusivity, or the time frame between when a movie is shown in cinemas and when it becomes available on streaming platforms, has also shrunk significantly. Reportedly, toward the end of the 1990s, movies would have six-month runs at theaters before they were found on other platforms. Today, a movie can be released in cinemas and streaming services on the same day.



“The pandemic and lingering economic impact are still hard felt on South Africans’ pockets, and with cheaper streaming offerings, going to the movies has become more of a luxury than ever before,” Gabi Zietsman, a film critic, tells FORBES AFRICA. “They are only willing to shell out money for the big blockbusters or films that demand to be seen on a big screen. Otherwise, they’ll just wait for it to go on streaming and save their money.”



Wylie says one of the major benefits of cinema is that you get to see the big blockbusters first as they were meant to be seen, on the big screen, which is “something no streaming platform can offer”.



“Great movie experiences, like great moments in life, live large in our hearts and minds. Watching a film in a cinema is also an interruption-free experience – you are able to be completely absorbed in what is playing out on the screen for the duration of the film.”



Power outages, or what is known as load-shedding in South Africa, are also why cinema audiences are being affected. South Africa is experiencing daily power cuts reaching up to 10 hours. Audiences aren’t willing to travel to a theater if there’s a chance that their movie-going experience will be interrupted. With mobile data, they can binge-watch multiple shows and movies on streaming platforms to their hearts’ content.



“While load-shedding has impacted our cinemas and affected some of the screening timings, the fact that we have already installed generators at 34 out of our total 44 cinema complexes around the country ensures that people can always come and watch a movie,” counters Ster-Kinekor’s Wylie. “Twenty one of these sites also have uninterrupted power supply systems installed to enable a completely uninterrupted movie experience.”



Data from IMDbPro reveals that the number of Hollywood films being released has also decreased since the pandemic. For countries like India, with a booming and thriving Bollywood industry, less overseas content to show in cinemas isn’t a major concern. But for South Africa, a small number of films are being produced locally, making the nation dependent on the US for pulling audiences back in to theaters.



For now, the ‘Barbenheimer’ effect reigns.



“This phenomenon wasn’t created by studios – it was birthed by audiences and fans organically,” Zietsman says. “That doesn’t mean we won’t ever have such a cultural event at the movies again. Audiences just want something new and different that they can participate in, like dressing up, and if it’s also critically good, then you’ve got a winner. Oppenheimer had the prestige, Barbie had the brand recognition, and everyone involved in both was just passionate about their work, and that passion is infectious.”

People attend showings of the Barbie movie in Somerdale

Return Of The Big Screen: ‘Barbenheimer’ Spells Box-Office Glory In South Africa

<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



Several large technology stocks soared Friday to their highest level this year as blockbuster earnings and uplifting economic data kept the blistering stock market’s momentum going.



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



Shares of Alphabet (up 3%), Meta (up 4%) and Intel (up 6%) each set 2023 highs as investors digested the Silicon Valley firms’ earnings reports earlier this week with a smile.



Airbnb, DoorDash, DraftKings, Intuit and Roku also rallied to their highest share price of the year Friday, gaining 3% or more.



In addition to earnings, Friday’s release of the personal consumption expenditures inflation metric helped boost stocks, as it revealed price increases&nbsp;<a href="https://www.cnbc.com/2023/07/28/pce-inflation-june-2023-.html" target="_blank" rel="noreferrer noopener">moderated</a>&nbsp;to their lowest level in about two years last month.



The tech-heavy Nasdaq notched a 2% gain by late afternoon, while the Dow Jones Industrial Average and S&amp;P 500 rose roughly 1% apiece.



<h2 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h2>



<a href="https://www.forbes.com/sites/dereksaul/2023/07/27/us-economic-grew-better-than-expected-24-during-second-quarter-again-defying-recession-fears/">Strong</a>&nbsp;economic output growth, a “better-than-expected” earnings season and moderating inflation “could be the catalyst to send the market to new highs,” Bolvin Wealth Management president Gina Bolvin wrote in emailed comments Friday.



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



The stock market’s strong week came even as the Federal Reserve&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2023/07/26/fed-hikes-interest-rates-by-25-basis-points-to-highest-level-since-2001/?sh=335986b93892">bumped</a>&nbsp;interest rates to a 22-year high Wednesday. Equity prices historically fall in periods of higher rates as it makes corporate borrowing more expensive and thus cuts into profits, but investors have supported the notion that artificial intelligence-driven growth and a renewed commitment to cost-cutting will prop up long-term growth.



<h2 class="wp-block-heading" id="h-surprising-fact">SURPRISING FACT</h2>



The Dow’s 13-day winning streak came to an end Thursday, capping the longest positive stretch in 36 years. The Dow is up 7% over the last two months, its best two-month since last October and November.



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<h2 class="wp-block-heading" id="h-contra">CONTRA</h2>



Energy giants Chevron and Exxon did not join in on the fun Friday, as their stocks slid roughly 1% apiece after both companies&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2023/07/28/exxon-and-chevron-profits-plunge-to-pre-ukraine-war-levels-as-oil-price-decline-continues/?sh=483fb0fd516a">reported</a>&nbsp;a roughly 50% year-over-year decline in profits. Energy is one of three S&amp;P sectors down year to date and is the&nbsp;<a href="https://digital.fidelity.com/prgw/digital/research/sector" target="_blank" rel="noreferrer noopener">worst returner</a>&nbsp;of the index’s 13 sectors over the last five years.



<h2 class="wp-block-heading" id="h-what-to-watch-for">WHAT TO WATCH FOR</h2>



Apple, the world’s most valuable company, reports quarterly numbers Thursday. Other notable earnings next week include Pfizer, one of the&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2023/07/03/worst-stocks-of-2023s-first-half-battered-banks-and-vaccine-makers/">worst-performing stocks</a>&nbsp;of the year as Covid-19 vaccine demand dwindles, and Anheuser-Busch, whose shares are&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2023/05/31/anheuser-busch-stock-enters-bear-territory-amid-anti-trans-bud-light-backlash/">down about 10%</a>&nbsp;over the last three months as Bud Light sales dwindled amid controversy.



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<a href="https://www.forbes.com/sites/dereksaul/2023/07/26/alphabet-stock-rides-earnings-to-15-month-high-heres-why-some-analysts-expect-it-to-surge-nearly-30-more/?sh=775951e6a87c">Alphabet Stock Rides Earnings To 15-Month High—Here&#8217;s Why Some Analysts Expect It To Surge Nearly 30% More</a>&nbsp;(Forbes)



<a href="https://www.forbes.com/sites/dereksaul/2023/07/26/meta-earnings-stock-rallies-as-facebook-parent-notches-most-profitable-quarter-since-2021/?sh=62656f6550fd">Meta Earnings: Stock Rallies As Facebook Parent Notches Most Profitable Quarter Since 2021</a>&nbsp;(Forbes)



<a href="https://www.forbes.com/sites/dereksaul/2023/07/25/microsoft-earnings-ai-lifts-redmond-to-highest-quarterly-sales-ever/?sh=2a958ed04cb8">Microsoft Earnings: AI Lifts Redmond To Highest Quarterly Sales Ever</a> (Forbes)

Markets Open After Falling More 800 Points On Tuesday

These Stocks Hit 2023 Highs As Dow Heads For Best 2-Month Stretch Since November

The unfortunate developments relating to the Black Sea grain shipments are not good news for India and the African continent. Food prices and security are threatened and big power rivalry is ensnaring us developing countries once again.



India believes the G20 agenda should be protected from this rivalry and it has done its best, during its presidency this year, to keep the development agenda and the Sustainable Development Goals (SDGs) in focus.



The country has also challenged the G20 membership to accept the African Union (AU) as a peer. Given the Indian emphasis on heralding the voice of the Global South during the presidency, it is befitting that the largest regional organization of the Global South, the AU, should be a G20 member rather than an invitee.



This initiative is unprecedented. Since the G20 was formed, no new members have been admitted.



In January 2023, India sought a collective articulation of the Voice of Global South (VoGS) through a virtual summit.



Having Africa speak for itself is important. The continent suffered deeply from the impact of Covid-19 and the Ukraine crisis.



African countries enthusiastically participated in the VoGS summit manifesting their expectations and priorities.



President Macky Sall of Senegal, the AU chair in 2022, formally sought AU inclusion into the G20 and several AU partners like the United States (US), European Union (EU) and China enunciated support.



While it remains uncertain if Africa’s partners intend to use this as a step to include other candidates by opening the membership issue, for India, it is a leap of faith to champion the AU alone and not be held back by claims of ASEAN, Latin American institutions, and permanent invitees like Spain.



Prime Minister Narendra Modi wrote to all G20 members seeking the inclusion of the AU as a member of the G20 and would like this announced at the G20 Summit in New Delhi in September 2023. Through this direct approach, India placed the proposal on the agenda of the G20. Each G20 member now must state a clear response to this.



Some who vocally articulated support for the AU bilaterally have to abide by their commitment. Others who were quiet would need to break their silence. It’s also worth noting that this issue was also discussed in the Modi-Biden summit, and Modi included it in his address to the US Congress in June.



This is a significant recognition of Africa, by one of its oldest and steadfast partners, India, which has shown its commitment to ensure that African voices are audible in all international fora. Clear examples include the Bandung Conference in 1955 and NAM from 1961 which were Indian-supported efforts for Africa to be heard after decolonization. The ‘AU-in-G20’ initiative is a 21st century ‘Bandung moment’ for resurgent Africa.



Added to the fact that Africa and India lack a permanent presence in the United Nations (UN) Security Council and that the UN reform process is crawling slowly, stymied by China, among others, India has decisively grasped the opportunity afforded by its presidency of the G20 to enable Africa its largest opportunity for representation at an intergovernmental forum on a permanent basis.



The AU <a href="https://au.int/sites/default/files/decisions/42725-Assembly_AU_Dec_839_-_865_XXXVI_E.pdf">adopted a decision at its summit in February</a> 2023 to obtain its place at the G20. Presently, the African Union Commission and the African Union New Partnership for Africa’s Development (AU-NEPAD) are invitees and South Africa is the only African member. The AU-NEPAD invitation was specially created when NEPAD was a separate entity.



One thing is certain, since 2008 when the G20 transitioned to a summit, Africa has changed remarkably and it needs the platform to be able to speak for itself.



– The writer is a former Ambassador of India to Germany, Indonesia, Ethiopia, ASEAN and the African Union

Redeveloped And Illuminated ITPO complex

‘African Union Must Be In The G20′

New MoU signed between Central Bank of Nigeria and Central Bank of Egypt to boost fintech innovations.



The Central Bank of Nigeria (CBN) and Central Bank of Egypt (CBE) are enhancing fintech innovation and collaboration between their African powerhouse economies, Nigeria and Egypt.



At the Seamless North Africa 2023 conference this month in Egypt’s capital Cairo, the apex banks signed a Memorandum of Understanding to establish a Nigeria-Egypt fintech bridge.



Aishah Ahmad, Deputy Governor of the CBN, said at the signing that months of engagement on payments, fintech, and financial inclusion paved the way for the collaboration.



“We look forward to cultivating an innovative space for fintech startups and entrepreneurs in Egypt and Nigeria to accelerate financial inclusion, deepen our payment systems and drive economic growth across the African continent,&#8221; she said.



The growth of fintech in both Nigeria and Egypt is part of a larger trend of its development in Africa.



According to a 2022 McKinsey report, each of the two countries is expected to show a growth rate of 12% per annum, until 2025, forming part of the 11 key markets.



A research paper, An Overview of Fintech Evolution in Nigeria, highlights that Nigeria&#8217;s fintech landscape has over 200 startups, with key stakeholders such as banks, telecom companies, and the government.



According to the CBE, the number of technology companies that offered fintech services in Egypt grew five-fold to 177 in 2022 from 32 in 2017.



Industry experts view the collaboration as a game-changer for the global remittance space and cross-border trade in Africa, encompassing a wide array of initiatives, including joint regulatory innovation projects, coordinated licensing and supervisory frameworks, information sharing, fintech cross referrals, and talent development.



Tomisin Salam, the CEO of FiatMatch Inc, tells FORBES AFRICA: &#8220;The partnership will unlock new opportunities for businesses, attract fresh investment, and streamline the efficiency of fintech companies in Africa.



&#8220;With China and Saudi Arabia already transacting in their local currencies, this move sets a commendable precedent for other African states to follow suit, and potentially increase the demand for local currencies in the continent,&#8221; says Salam.

Image supplied by Central Bank of Nigeria

Fintech Bridge To Unlock New Opportunities Between Two Powerhouse African Economies

Attendees at the just-concluded Women Deliver 2023 Conference in Kigali exchanged ideas and experiences through thought-provoking discussions that set the stage for the unveiling of new and transformative policy frameworks supporting women’s rights and issues.



In the heart of Kigali, Rwanda, the BK Arena and Kigali Convention Centre buzzed with excitement as women from all corners of the world gathered for the Women Deliver 2023 Conference (WD2023), from July 17-20, held for the first time in Africa.



Held under the theme, Spaces, Solidarity, and Solutions, the sixth Women Deliver Conference aimed to ignite collective action, empower the feminist movement, and foster a world where gender equality and women&#8217;s rights thrive.



A wide range of topics, including abortion access, LGBTIQQ rights, gender-based violence and impact of the climate crisis on women and girls, were discussed, along with focus on fostering youth engagement and elevating the perspectives of young women in the global gender equality movement.



The event saw an impressive turnout with thousands in attendance. Notable speakers included renowned personalities such as activist Malala Yousafzai. Also in attendance were four heads of state including Rwanda’s President Paul Kagame – with his wife and first lady Jeannette Kagame – Ethiopia’s President Sahle-Work Zewde, Senegal’s President Macky Sall, and the President of Hungary, Katalin Novák.



One of the most significant announcements came from the collaboration between Women Deliver and Open Society Foundations, a grant-making network founded and chaired by Hungarian-American business behemoth and philanthropist George Soros.


<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/2023/07/53061404639_04db8de2ad_k-1024x683.jpg" alt="" class="wp-image-58967" width="582" height="388" srcset="https://cms.forbesafrica.com/wp-content/uploads/2023/07/53061404639_04db8de2ad_k-1024x683.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2023/07/53061404639_04db8de2ad_k-300x200.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2023/07/53061404639_04db8de2ad_k-768x512.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2023/07/53061404639_04db8de2ad_k-1536x1024.jpg 1536w, https://cms.forbesafrica.com/wp-content/uploads/2023/07/53061404639_04db8de2ad_k.jpg 2048w" sizes="auto, (max-width: 582px) 100vw, 582px" /><figcaption class="wp-element-caption">Photo credit: Women Deliver</figcaption></figure></div>


Together, they unveiled a new funding facility to address, among other things, neglected areas of female sexual health and reproductive rights. The room erupted in applause as the audience recognized the potential of this facility in empowering marginalized women and girls who have long been denied access to basic healthcare.



As the conference progressed, it became evident that the commitment to drive change extended beyond the arena’s walls. More than 40 organizations came together to launch a powerful campaign addressing the gender nutrition gap. Their collective call urged governments to take transformative action, shining a spotlight on the stark inequalities that persist globally in women&#8217;s and girls&#8217; nutrition.



Another momentous step forward was the unveiling of the RESPECT Women website. Developed by the World Health Organization (WHO), UN Women, and United Nations Population Fund (UNFPA), this policy framework and online platform has been designed to combat and respond to violence against women and girls. The website&#8217;s potential to create a safer environment and promote gender equality and women&#8217;s empowerment was met with resounding support and recognition.



Perhaps the most moving moment at the conference was when UNFPA introduced Kigali Call to Action: United for Women and Girls&#8217; Bodily Autonomy. This powerful call placed bodily autonomy, reproductive rights, and gender equality at the core of the agenda. With a clear focus on women-led organizations and the feminist movement, the call aimed to drive coordinated and collective action towards gender equality by 2030.



The conference&#8217;s commitment to empowering future generations was expressed with the launch of the Women Deliver Emerging Leaders Program to provide young people with trust-based funding, knowledge, resources, and leadership opportunities in the pursuit of gender equality and reproductive



health advocacy. As the torch was passed on to the next generation, the attendees celebrated the potential of these emerging leaders to create a lasting impact on the global stage.



Throughout the conference, attendees engaged in thought-provoking discussions, exchanging ideas and experiences, leaving no stone unturned in their quest for progress. Challenges were acknowledged, and the urgency to address them collectively was clear.



The importance of funding for gender equality advocacies resonated strongly among the attendees. Julia Fan, Senior Manager for Youth Engagement at Women Deliver, emphasized that funding remains a critical aspect in driving forward the agenda for gender equality and women&#8217;s empowerment.



Alongside the vibrant discussions and inspiring stories of progress, Soraya Hakuziyaremye, the Deputy Governor of the National Bank of Rwanda, too offered valuable insights. She acknowledged the strides Rwanda has made in promoting women to leadership positions, highlighting that this progress did not happen overnight but has been the result of extraordinary leadership that recognized gender equity as a vital indicator of the nation&#8217;s progress, almost three decades ago.



While there were successes to celebrate, Phumzile Mlambo-Ngcuka, the Board Chair of Women Deliver, also addressed a pressing concern shared by many attendees.



She remarked: &#8220;What concerns most women today here is that progress in gender equality has been slow and uneven, and a major space where all countries have failed is violence against women. It is sad to sit and talk about this here again; I was talking about this 10 years ago.&#8221;



While gender issues still persist, efforts to combat them also have a history, starting with the Beijing Declaration in 1995 that opened the door for women’s issues to find mainstream recognition globally, leading to the Platform for Action adopted unanimously by 189 countries. In the words of Mlambo-Ngcuka, “it was a defining moment when women’s rights received the status of human rights”.



The development and acceptance of the Maputo Protocol on Women’s Rights in 2005 has also come a long way. The protocol has one of the highest number of ratifications for an instrument in the African Union (AU) and has objectively established a uniform basis for protecting the rights of women and girls in Africa. Forty nine of the 55 AU member states have signed the Maputo Protocol thus far.



Reflecting on the week&#8217;s transformative experience. Rania Dagesh, the Deputy Regional Director for eastern and southern Africa at UNICEF, expressed her sentiments: &#8220;The past week at Women Deliver has been phenomenal; there have been moments of reflection, profound exchanges, and valuable learning. I am truly grateful for participating.&#8221;



As the final moments of the conference unfolded, the atmosphere was one of hope, determination, and camaraderie.

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From Rwanda To Beyond: New Collaborations And Collective Action At Women’s Conclave

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has voted to raise the benchmark interest rate by 25 basis points. It also called for the exploration of policies that enhance investor confidence in the Nigerian economy and create opportunities for both foreign and domestic investments.



In response to the increased influx of cash to offset the effects of the fuel subsidy removal, the MPC of the Central Bank of Nigeria has voted to raise the benchmark interest rate, bringing it to 18.75% from its previous rate of 18.5%.



The CBN started its monetary policy tightening cycle in May 2022, with the benchmark interest rate rising from 11.5% then to 18.5% in May this year.



During the fourth meeting of the year held in July, the acting CBN governor, Folashodun Shonubi, revealed that “members of the MPC took the decision because of expected liquidity injections into the economy from the recent policy developments and the likely impact on inflation.”



“Members noted the need to continue to support investment, which will ultimately lead to the recovery of output growth,” Shonubi added.



The MPC saw it fit to adjust the asymmetric corridor at +100 and -300 basis points around the MPR from the previous corridor of +100/-700 basis points around the MPR; retain the Cash Reserve Ratio (CRR) at 32.5%; and retain the Liquidity Ratio at 30%.



Advising the federal government, the MPC called for them to look into policies that boost investor confidence in the economy in Nigeria and to create opportunities for foreign and domestic investments alike.



The MPC members recognized the significance of attracting investments, especially in key sectors like auto manufacturing, aviation, and rail industries. The goal is to diversify revenue sources and reduce dependence on oil-related earnings.



Additionally, the committee urged the government to swiftly implement essential policy mechanisms to safeguard the Nigerian economy from persistent global shocks and emerging domestic challenges.

Central Bank of Nigeria headquarters in Abuja.

CBN Raises Benchmark Interest Rate To 18.75% Following Fuel Subsidy Removal

In the wake of a military coup in Niger and condemnation from international bodies, the uncertainty raises concerns about regional stability.



As dawn broke over Niamey, the capital city of Niger, a startling announcement was made yesterday on national television – soldiers had detained President Mohamed Bazoum and declared an end to the current regime. A cascade of reactions from regional and international bodies followed, denouncing the move as an attempted coup. This situation not only exacerbates an already turbulent political landscape in Niger but also portends significant economic implications set to reverberate across the region.



Moussa Faki, Chairperson of the African Union Commission, condemned the military &#8220;acting in total betrayal of their republican duty,&#8221; urging the &#8220;felon soldiers&#8221; to return to their barracks in a statement late yesterday. Despite the plea and international condemnation, the president remains in custody, leaving the country teetering on the precipice of uncertainty. The regional bloc, ECOWAS, also decried the situation, imploring the soldiers to release the president immediately.



The coup is reportedly led by the presidential guard, who have taken Bazoum and several ministers captive. According to AFP sources, the president and the ministers are safe and unharmed. The situation remains fluid, and information is limited.



Beyond the immediate political upheaval, the long-term economic implications could be damning. If the situation further deteriorates, Niger, which ranks near the bottom of the United Nation’s (UN) Human Development Index and grapples with two jihadist campaigns, could face even more significant challenges. Already struggling with widespread poverty and insecurity, an unstable government could further discourage foreign investment and aid, potentially stifling the nation&#8217;s growth prospects.



Moreover, the country&#8217;s crucial mining sector, which includes uranium and gold, could face dire consequences. A destabilized government often leads to supply disruptions, which could send shockwaves through global commodity markets and impact Niger&#8217;s revenue streams, considering mining accounts for a significant chunk of the nation&#8217;s GDP.



US Secretary of State Antony Blinken, in a media briefing on the situation yesterday, observed: “Whether this constitutes a coup technically or not, I can&#8217;t say… but what it clearly constitutes is an effort to seize power by force and to disrupt the constitution.&#8221; This disruption could signify a regression from the democratic principles the nation has been striving to uphold since its last coup in 2010.



In a regional context, the fallout from this coup attempt can further destabilize the Sahel region. Neighboring countries of Mali and Burkina Faso, which have both experienced military coups in recent years due to escalating jihadist insurgencies, contribute to the region&#8217;s instability.



UN Secretary-General António Guterres emphasized the need for democratic governance, peace, and stability, denouncing any efforts to seize power by force. In a statement yesterday, the UN pledged unwavering support to the government and people of Niger: &#8220;The Secretary-General calls on all actors involved to exercise restraint and to ensure the protection of constitutional order,&#8221; Guterres said.



As Niger teeters on the brink, the region and the world watch closely, hopeful for a swift and peaceful resolution.

Niger presidency confirms coup attempt, says President Bazoum and his family safe

Coup In Niger: Leaders Condemn Seizing Power By Force

After a long and stressful but successful debut at Paris Fashion Week and becoming one of the few designers from Africa to do so, Aryea Kolubah is holidaying in Jamaica when she sits down for this Zoom interview with FORBES AFRICA.



Her eccentric and bold designs wowed the fashion stage in March, and you can tell that her “vibe” is inspired by her West African roots, which translates to bright ethnic prints and vibrant colors to create sartorial statements for the fearless and confident woman.



This is all done with very some specific messaging.



“I’m such a connoisseur of art but also I am such a connoisseur of the continent, and I take that show with me everywhere,” Kolubah says. “…Being from Africa, [there’s so much art that’s being stolen]… but yet still, we are fighting to find our place in the art and entertainment space. And I’m just so fortunate that I am at a pivotal time in my life where I can contribute to society’s demands.”



Although this was her debut on the Paris stage, this is not her first time taking the fashion industry by storm. Kolubah’s designs have already graced international platforms, including New York Fashion Week, Miami Swim week, San Francisco Fashion Week, Louisville Fashion Nite-Out, and Runway Liberia International.



Born in Liberia, but raised in the United States from 2005, Kolubah was influenced by her father, who instilled in her a thirst for knowledge, creative expression, a strong work ethic, and a determination to pursue her dreams.



“When I told my father that I wanted to be a designer, he was like ‘but you could be a doctor, you could be a lawyer, all of these things’. But when I told him I love art he got me my very first sewing machine.”



Unfortunately, Kolubah’s father was not able to see her first foray in global fashion as not long after she received her sewing machine, her father died in a tragic fire accident she says could have also taken her life. But she survived.



“My father passed away [because of] the fire in my apartment, [where we both were, but] by the grace of God, I’m here today… Fashion has to be in the therapeutic part of my life.



“The craft does come with ups and downs but I’ve always dreamed that this particular gift of mine would take me places,” Kolubah says. “Being African, and just being invited to that type of prestigious event like Paris to showcase my art…And just beyond that, the way in which the audience accepted it and everything else that has followed since… it’s a dream come true.”



She is grateful indeed.



“I represent a million Africans because there’s so much created from the continent and [people] who haven’t had the chance. But now that I do have the chance, if I were to give somebody advice, I would say just ‘go for it’!”

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From Liberia To The World: ‘A Connoisseur Of The Continent’

Chatbots are increasingly being used by companies to interview and screen job applicants, often for blue collar jobs. But like other algorithmic hiring tools before them, experts and job applicants worry these tools could be biased.



In early June, Amanda Claypool was looking for a job at a fast-food restaurant in Asheville, North Carolina. But she faced an unexpected and annoying hurdle: glitchy chatbot recruiters.



A few examples: McDonald’s chatbot recruiter “Olivia” cleared Claypool for an in-person interview, but then failed to schedule it because of technical issues. A Wendy’s bot managed to schedule her for an in-person interview but it was for a job she couldn&#8217;t do. Then a Hardees chatbot sent her to interview with a store manager who was on leave — hardly a seamless recruiting strategy.



“I showed up at Hardees and they were kind of surprised. The crew operating the restaurant had no idea what to do with me or how to help me,” Claypool, who ultimately took a job elsewhere, told&nbsp;Forbes.&nbsp;“It seemed like a more complicated thing than it had to be,” she said. (McDonald’s and Hardees didn’t respond to a comment request. A Wendy’s spokesperson told Forbes the bot creates “hiring efficiencies,” adding “innovation is our DNA.”)



HR chatbots like the ones Claypool encountered are increasingly being used in industries like healthcare, retail and restaurants to filter out unqualified applicants and schedule interviews with the ones who might be right for the job. McDonalds, Wendy’s, CVS Health and Lowes use&nbsp;<a href="https://www.paradox.ai/solutions/restaurant" target="_blank" rel="noreferrer noopener">Olivia</a>, a chatbot developed by Arizona-based $1.5 billion AI startup Paradox. Other companies like L’Oreal rely on&nbsp;<a href="https://www.cnn.com/2019/04/29/tech/ai-recruitment-loreal/index.html" target="_blank" rel="noreferrer noopener">Mya</a>, an AI chatbot developed in San Francisco by a startup of the same name. (Paradox didn’t respond to a comment request about Claypool’s experience.)



Most hiring chatbots are not as advanced or elaborate as contemporary conversational chatbots like ChatGPT. They’ve primarily been used to screen for jobs that have a high-volume of applicants — cashiers, warehouse associates and customer service assistants. They are rudimentary and ask fairly straightforward questions: “Do you know how to use a forklift?” or “Are you able to work weekends?” But as Claypool found, these bots can be buggy — and there isn’t always a human to turn to when something goes wrong. And the clear-cut answers many of the bots require could mean automatic rejection for some qualified candidates who might not answer questions like a large language model wants them to.



That could be a problem for people with disabilities, people who are not proficient in English and older job applicants, experts say. Aaron Konopasky, senior attorney advisor at the U.S. Equal Employment Opportunity Commission (EEOC), fears chatbots like Olivia and Mya may not provide people with disabilities or medical conditions with alternative options for availability or job roles. “If it&#8217;s a human being that you&#8217;re talking to, there&#8217;s a natural opportunity to talk about reasonable accommodations,” he told Forbes. “If the chatbot is too rigid, and the person needs to be able to request some kind of exemption, then the chatbot might not give them the opportunity to do that.”



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
“It&#8217;s sort of like how Netflix recommends movies based on other movies you like.”Jeremy Schiff, CEO and founder of RecruitBot
</blockquote>



Discrimination is another concern. Underlying prejudice in data used to train AI can bake bias and discrimination into the tools in which it&#8217;s deployed. “If the chatbot is looking at things like how long it takes you to respond, or whether you’re using correct grammar and complex sentences, that&#8217;s where you start worrying about bias coming in,” said Pauline Kim, a employment and labor law professor at Washington University, whose research focuses on the use of AI in hiring tools. But such bias can be tough to detect when companies aren&#8217;t transparent about why a potential candidate was rejected.



Recently, government authorities have introduced legislation to monitor and regulate the use of automation in hiring tools. In early July,&nbsp;<a href="https://www.wsj.com/articles/new-york-city-starts-to-regulate-ai-used-in-hiring-tools-79a2260f?mod=djemalertNEWS" target="_blank" rel="noreferrer noopener">New York City</a>&nbsp;enacted a new law requiring employers who use automated tools like resume scanners and chatbot interviews to audit their tools for gender and racial bias. In 2020,&nbsp;<a href="https://www.bakersterchi.com/new-illinois-statute-among-the-first-to-address-aiaided-job-recruiting" target="_blank" rel="noreferrer noopener">Illinois</a>&nbsp;passed a law requiring employers who apply AI to analyze video interviews to notify applicants and obtain consent.



Still, for companies looking to trim recruiting costs, AI screening agents seem an obvious option. HR departments are often one of the first places to see staff reductions, said Matthew Scherer, a senior policy counsel for workers’ rights and technology at the Center for Democracy and Technology. “Human resources has always been a cost center for a company, it&#8217;s never been a revenue generating thing,” he explained. “Chatbots are a very logical first step to try and take some of the load off of recruiters.”



That’s part of the rationale behind Sense HQ, which provides companies like Sears, Dell and Sony with text messaging-based AI chatbots that help their recruiters wade through thousands of applicants. The company claims it’s already been used by some 10 million job applicants, and co-founder Alex Rosen told&nbsp;Forbes&nbsp;such numbers mean a much bigger pool of viable candidates.



“The reason that we built a chatbot in the first place was to help recruiters talk to a wider swath of candidates than they might be able to do on their own,” he said, adding the obligatory caveat: “We don&#8217;t think that the AI should be making the hiring decision on its own. That’s where it gets dangerous. We just don&#8217;t think that it&#8217;s there yet.”



RecruitBot is bringing AI to bear on hiring by using machine learning to sift through a database of 600 million job applicants scraped from LinkedIn and other job marketplaces — all with the goal of helping companies find job candidates similar to their current employees. &#8220;It&#8217;s sort of like how Netflix recommends movies based on other movies you like,” CEO and founder Jeremy Schiff told&nbsp;Forbes.&nbsp;But here too bias is an obvious concern; hiring more of the same has its pitfalls. In 2018,&nbsp;<a href="https://www.reuters.com/article/us-amazon-com-jobs-automation-insight-idUSKCN1MK08G" target="_blank" rel="noreferrer noopener">Amazon</a>&nbsp;removed its machine learning-based resume tracking system that discriminated against women because its training data was mostly composed of resumes of men.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
“Chatbots are a very logical first step to try and take some of the load off of recruiters.”Matthew Scherer, senior policy counsel at the Center for Democracy and Technology
</blockquote>



Urmila Janardan, a policy analyst at Upturn, a nonprofit which researches how technologies impact opportunities for people, noted that some companies have also turned to personality tests to weed out candidates — and the questions to screen candidates may not be related to the job at all. “You might even be potentially rejected from the job because of questions about gratitude and personality,” she said.



For Rick Gned, a part-time painter and writer, a personality quiz was part of a chatbot interview he did for an hourly-wage shelf-stacking job at Australian supermarket, Woolworths. The chatbot, made by AI recruitment firm Sapia AI (formerly known as PredictiveHire), asked him to provide 50- to 150-word answers for five questions and then analyzed his responses, looking for&nbsp;<a href="https://sapia.ai/products/interview/" target="_blank" rel="noreferrer noopener">traits</a>&nbsp;and skills that match the recruiters’ preferences. Concluding that Gned “deals well with change,” and is “more focused on the big picture that causes him to look over details,” it advanced him to the next round interview. While Sapia AI does not require applicants to respond to questions under a time limit, the system measures sentence structure, readability and complexity of words used in the text responses, Sapia AI CEO and cofounder Barb Hyman said in an email.



Gned found the whole thing dehumanizing and worrisome, he told Forbes. “I’m in a demographic where it doesn’t affect me, but I’m worried for people who are minorities, who predominantly make up the lower-income labor market.”



For one job applicant, who requested anonymity to speak freely, chatting with a bot had at least one positive. When filling hundreds of job applications, he often never hears back, but the bot at least assured him that his application was received. “It did feel like a morale boost in so many ways,” he said. “But if I had to do this (text with a chatbot) with every job I applied to, it would be a pain in the ass.”

Teamwork in metaverse with Cyber City skyline

AI Chatbots Are The New Job Interviewers

This is set to elevate the overall credit share of SMEs from the current 9% to 25% over the next few years.



With the goal of reaching CFA3,000 billion ($5 billion) in outstanding loans by 2028, Senegal aims to empower and uplift its small and medium-sized enterprises (SMEs) for accelerated growth and economic prosperity.



At the opening of the third edition of the Senegalese SME forum in Dakar, the country&#8217;s capital, Prime Minister Amadou Ba promised to collaborate with the private sector and elevate the volume of financing available to national SMEs.



&#8220;I salute the patriotic commitment of public and private players, who together determined the integrated monitoring framework bringing together all players around the Central Bank of West African States (BCEAO) SME scheme, and who share the ambition of increasing the volume of SME financing from CFA500 billion ($841 million) in 2023 to CFA3,000 billion in 2028,” Ba said.



This substantial boost is set to elevate the overall credit share of SMEs from the current 9% to 25% over the next few years.



The Agency for the Development and Supervision of Small and Medium-Sized Enterprises (ADEPME) presented its plan to boost financing for this vital category of companies at the forum.



A surge in investor interest greeted the Emerging Senegal Plan in 2014, a public policy framework spanning from 2014 to 2023. To ensure that SMEs actively contribute to the country&#8217;s emergence and progress, the ADEPME launched a dedicated forum in 2017 with the primary objective of mobilizing increased funding.



Senegal envisions considerable expansion in the number of SMEs benefiting from financing provided by microfinance institutions, the Delegation for Rapid Entrepreneurship (DER), and other financial mechanisms. The objective is to elevate the number of benefiting SMEs from 500,000 to 1.2 million, amplifying opportunities for business growth and innovation.

General Economy In Senegal Capital Ahead Of Elections

Senegal Aims For $5 Billion In Outstanding Loans By 2028, Setting Ambitious Targets For SME Financing

The sector experienced a drop in value during the first half of the year. According to pre-shipment inspection agents&#8217; reports, a total of 3.94 million metric tons of products worth $2.54 billion were exported from January to June, compared to $2.593 billion during the same period last year. This reflects a marginal decrease of 0.09% in export returns for the period under review.



The CEO of the Nigerian Export Promotion Council (NEPC), Ezra Yakusak, recently announced that the country&#8217;s non-oil export sector experienced a slight dip in value during the first half of 2023.



Yakusak highlights two significant factors that contributed to this decline.



“The reason for this slight decrease could be attributed to the 2023 general election that was held in February 2023 and subsequent transition to a new government, which might have largely affected economic activities,” he says.



“The second reason is the changes in global economic conditions, such as a slowdown in global demand or decline in productive prices, which may have negatively impacted non-oil export performance.”



In contrast to the recent dip, Nigeria&#8217;s non-oil export earnings in 2022 showed a remarkable performance. The country recorded earnings of $4.82 billion, marking an impressive increase of 39.91% compared to 2021.



The growth last year showcased the potential and resilience of the sector. It was a testament to the efforts made to diversify the economy and reduce its dependence on oil revenue. The country&#8217;s exports of agricultural products, solid minerals, and manufactured goods played a pivotal role in driving this positive trend.



According to the National Bureau of Statistics’ (NBS) report on Nigeria&#8217;s Gross Domestic Product (GDP) for the first quarter of the year, the economy grew by 2.31% in real terms, on a year-on-year basis. However, this growth rate represents a decline compared to the 3.11% recorded in the first quarter of 2022 and 3.52% in the fourth quarter. The slowdown is attributed to the adverse effects of a cash crunch experienced during the quarter.



During the first quarter, the services sector played a pivotal role in driving economic expansion, recording a growth rate of 4.35% and contributing 57.29% to overall GDP. In contrast, the agriculture sector experienced a contraction of -0.90%, which is in contrast to the growth of 3.16% recorded in the first quarter of the previous year. The decline was primarily due to lower livestock production and the lingering impact of severe floods experienced in the third quarter of 2022.



The industry sector&#8217;s performance improved slightly to 0.31% growth compared to the steep decline of -6.81% in the same quarter of last year. Despite the slight improvements in the industry sector, both



agriculture and industry contributed less to the aggregate GDP in the first quarter of the year compared to the corresponding period last year.



Some specific sectors were instrumental to the growth observed in the first quarter. Solid minerals recorded a substantial growth of 37.71%, indicating a significant improvement compared to the previous quarter&#8217;s 22.04% growth rate. Meanwhile, the services sector, while still a significant driver, experienced a lower growth rate of 4.35% compared to the 5.69% recorded in the last quarter of 2022.



The construction sector also contributed to the economic expansion, recording a growth rate of 3.27%, albeit a moderation from the 3.80% growth rate in the previous quarter. Similarly, the manufacturing sector continued its positive trajectory, but the growth rate slowed from 2.83% in the last quarter of the previous year.



Despite the challenges faced by certain sectors, the services sector&#8217;s robust performance contributed significantly to sustaining overall economic growth in the first quarter of the year. However, attention and targeted interventions may be required to address the setbacks experienced in other critical sectors such as agriculture and manufacturing, to ensure a more balanced and resilient economic expansion in the coming quarters.

Jetty with vessels drone vie

Slight Dip In Nigeria’s Non-Oil Exports

<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



Hundreds of Airbus jets are being recalled for an inspection after an issue was discovered in the engines, which are made by Pratt &amp; Whitney, a third party subsidiary of RTX (formerly called Raytheon Technologies), according to&nbsp;<a href="https://www.reuters.com/business/aerospace-defense/rtx-raises-2023-sales-outlook-boosted-by-aviation-recovery-2023-07-25/" target="_blank" rel="noreferrer noopener">multiple</a>&nbsp;<a href="https://www.wsj.com/articles/new-engines-on-hundreds-of-airbus-jets-recalled-for-inspection-ab206106?mod=hp_lead_pos2" target="_blank" rel="noreferrer noopener">reports</a>—the latest in a series of reliability issues with Pratt &amp; Whitney’s flagship engine.



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



RTX reportedly said it recently discovered contamination in the metals used to make some engine parts on its geared turbofan engine, or GTF, from 2015 to 2020, requiring the planes to be grounded for inspection.



RTX will be inspecting about 1,200 engines over the next year.



RTX said this isn’t a flight safety issue, and that it won’t impact new shipments of planes as those were built after a change in the production process.



The engines are used in about 40% of Airbus’ A320neo single-aisle jets, which make up a large portion of the global airplane fleet and was the fastest selling airplane in history after its launch in 2014, according to&nbsp;<a href="https://www.bloomberg.com/news/articles/2014-10-15/airbus-wins-accord-from-india-s-indigo-for-250-a320neo-airliners" target="_blank" rel="noreferrer noopener">Bloomberg</a>.



Spirit Airlines, JetBlue Airways, Germany’s Lufthansa and India’s IndiGo all reportedly use Airbus jets with the GTF engine.



<h2 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h2>



“It’s going to be expensive,” RTX CEO Greg Hayes said Tuesday on an earnings call, adding that it’s too early to know the final cost, but said it will likely cost around $500 million in 2023 alone.



<h2 class="wp-block-heading" id="h-tangent">TANGENT</h2>



Raytheon Technologies’ stock price plummeted over 15% after the news, but slightly recovered later in the trading day Tuesday. The share price sat at $85.77 at 2:55 p.m. Eastern Time—still down nearly 12% from Monday’s close.



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



The GTF engine has had reliability issues since it hit the market in 2015, with airlines complaining about the engine’s durability issues virtually from the start. Hawaiian Airlines was recently forced to ground five of its 18 Airbus A321neos due to engine issues,&nbsp;<a href="https://aviationweek.com/mro/aircraft-propulsion/mro-memo-operators-feel-impact-gtf-issues" target="_blank" rel="noreferrer noopener">Aviation Week&nbsp;reported</a>. Spirit Airlines CFO Scott Haralson recently said in an earnings call that the company has been forced to remove many of the engines, and that while it’s hopeful these issues improve, “it will likely remain a drag on utilization for the rest of the year.” Go Airlines India has gone so far as to blame the engines for its bankruptcy in May,&nbsp;<a href="https://www.bloomberg.com/news/articles/2023-05-02/go-airlines-files-for-insolvency-after-25-aircraft-were-grounded" target="_blank" rel="noreferrer noopener">citing</a>&nbsp;that the engines “suffered from a multitude of defects and a high rate of failure effectively from day one.” (Pratt &amp; Whitney deny responsibility for Go Airlines India’s bankruptcy.)&nbsp;<a href="https://www.bloomberg.com/news/articles/2023-06-16/pratt-s-gtf-engines-for-airbus-a320neo-hit-turbulence" target="_blank" rel="noreferrer noopener">Bloomberg reported</a>&nbsp;that in May, about one in eight A320neos and related aircraft with the GTF spent 30 days or more in storage. While that number includes airplanes that were taken out of service for any reason, only 4% of airplanes using the rival Leap engine from CFM were sidelined for 30 days or more.



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<a href="https://www.forbes.com/sites/jeremybogaisky/2018/07/12/pratt-whitney-geared-turbofan-united-technologies/?sh=a4bd7e2b7007">Pratt &amp; Whitney Struggles To Get Its Dream Engine Program Humming</a>&nbsp;(Forbes)



<a href="https://www.wsj.com/articles/new-engines-on-hundreds-of-airbus-jets-recalled-for-inspection-ab206106?mod=hp_lead_pos2" target="_blank" rel="noreferrer noopener">New Engines on Hundreds of Airbus Jets Recalled for Inspection</a>&nbsp;(Wall Street Journal)



<a href="https://www.bloomberg.com/news/articles/2023-06-16/pratt-s-gtf-engines-for-airbus-a320neo-hit-turbulence" target="_blank" rel="noreferrer noopener">Airlines Are Rankled About Pratt &amp; Whitney’s Jet Engine Problems</a> (Bloomberg)

ITA Airways Unveil New Airport Lounge And Aircraft At Fiumicino

Hundreds Of RTX-Made Jet Engines Recalled Over Metal Contamination—Sending Stock Tumbling

The food and non-alcoholic beverages sector account for 11.81% of the overall inflation figures. Stakeholders recommend government interventions in critical sectors like agriculture, power, and energy.



According to a recent report by the National Bureau of Statistics (NBS), Nigeria&#8217;s headline inflation rate for June surged to 22.79%, marking a 0.38% increase from May. This rise underscores the persistent inflationary pressures plaguing the nation&#8217;s economy.



Furthermore, on a year-on-year basis, the inflation rate for June was 4.19% higher compared to the same period last year, indicating a trend of escalating inflation. Notably, the food and non-alcoholic beverages sector played a significant role, accounting for 11.81% of the overall inflation figures. Food inflation surged to 25.25% on a year-on-year basis, surpassing the 20.60% recorded in June 2022. In the month under review, food prices increased by 2.40%, which is 0.21% points higher compared to the rate in May. The year-on-year basis rate also exhibited a significant rise of 4.19% compared to the 18.60% rate registered in June 2022.



This report comes in the wake of President Bola Tinubu&#8217;s recent declaration of a state of emergency on food security. He directs that all matters related to food and water availability and affordability, as essential components of livelihood, be included within the purview of the National Security Council.



Kenneth Odoemenam, an aquaculture consultant and catfish farmer, expresses deep concerns about the escalating food prices in Nigeria and their far-reaching impact on both the economy and the wellbeing of its people. Odoemenam highlights the critical role of fish farming in providing essential protein to Nigerians and contributing significantly to food security. However, like other farmers, fish farmers face numerous obstacles that hinder fish production and increase operational costs.



Odoemenam explains to FORBES AFRICA: &#8220;The alarming inflation rate [for June], coupled with the declaration of a food security emergency, underscores the seriousness of the situation for Nigeria&#8217;s fish farmers. One of the major impacts of inflation is on fish feed, which constitutes over 70% of the operational expenses.&#8221;



He adds: &#8220;As fish feed costs rise due to inflation, it directly affects the profitability of fish farmers and their ability to offer competitive prices for their fish. Additionally, the high inflation rate may lead to reduced consumer demand for the products, ultimately impacting farmers&#8217; income.&#8221;



To address these challenges and promote sustainable growth in fish farming, Odoemenam urges the government to prioritize agriculture and fisheries development. He emphasizes the need for investment in research and technology to find innovative and cost-effective solutions that improve fish farming practices, enhance fish feed production, and minimize environmental impacts.



Furthermore, Odoemenam recommends providing fish farmers with accessible credit facilities and grants to enable them to adopt modern techniques, boost productivity, and adapt to changing market dynamics. Strengthening market connections and value chains will ensure fair prices for fish farmers while making fish more accessible and affordable to consumers.



In a press conference, Michael Olawale-Cole, President of the Lagos Chamber of Commerce and Industry, expressed concerns about the potential rise in inflation due to subsidy removal and the floating of the naira exchange rate.



&#8220;Increasing the monetary policy rate has, thus far, proven to be ineffective and insufficient in taming inflation. Therefore, there is a clear need for the government to strengthen its support to critical sectors like agriculture, power, energy. It should also look at ways to improve supply chains as well as cushion the cost of production,&#8221; he said.



He urges the government to look into improving supply chains and providing concessions for Micro, Small, and Medium Enterprises (MSMEs) to alleviate production costs and tackle unemployment.

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