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Women demand a slice OF THE INFRASTRUCTURE PIE

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Women are itching to get involved in Africa’s multibillion-dollar infrastructure industry.

It is no easy task. The sector is historically dominated by men, financial institutions turn up their noses at women attempting to access money and established companies are favored for big deals.

But Leading Women of Africa (LWA) is determined to help women not only get their foot in the door, but become the ones formulating the plans and signing deals. LWA is a network of 18,000 contacts, mostly in Africa, which links women in different countries. “If you are not on the table, you are on the menu,” says LWA president Madelein Mkunu.

LWA launched Women in Infrastructure Development in Africa (Wida) at the third Corporate G20-Africa Investment Conference in London in July. The initiative is starting to create a space for women to engage with infrastructure stakeholders in the public and private sector. “We want to support a mechanism that will increase the number of women-owned companies that are in the infrastructure sector. Also at a policy level and at a legal framework level… because that is where everything needs to start; where women need to be recognized.”

Wida aims to ensure that women’s agendas are taken seriously by institutions and by the Program for Infrastructure Development in Africa (Pida).

Pida was set up to accelerate the delivery of Africa’s current and future regional and continental infrastructure projects in transport, energy, information and telecommunications technologies, as well as trans-boundary waterways. It promotes regional economic integration by bridging Africa’s infrastructure gap. The con-tinent is the least integrated physically and economically, with intra-regional trade and global trade at 10% and 3%, respectively.

Pida, which will run until 2040, is supported by the African Union (AU) Commission, the New Partnership for Africa’s Development (Nepad), the African Development Bank (AfDB), the United Nations Economic Commission for Africa and the Regional Economic Communities.

African governments are increasingly focusing on infrastructure development to grow their economies. It is estimated that poor infrastructure alone saps the continent of 2% economic growth every year.

Earlier this year, the AfDB launched a $500 million development fund to sponsor feasibility studies of large infrastructure projects across sub-

Saharan Africa. Mkunu says the LWA is in talks with the AU, Nepad and AfDB, and that Wida has been well

received all round.

“At the G20 summit… there was a strong push by the LWA, Pida department and Nepad Business Council for more women representation in infrastructure development.

“We did not expect for them to be so receptive, because we know that the issue of women and infrastructure is a new issue we are bringing up. You know, nobody really ever thought that women would be interested in this sector. We were kind of amazed about how they were willing to listen to us.”

For the LWA, it makes business sense to focus on infrastructure. The industry is growing at a rapid pace, and if Africa is serious about development, much still needs to be done.

According to Pida, only 30% of people on the continent have access to electricity, while 34% have access to roads. Internet penetration in Africa stands at just 6% and only 4% of available water resources are developed. The total cost of implementing all the projects that Pida has identified to address projected infrastructure needs by 2040 will amount to $360 billion.

“For us at LWA, yes, we do agree that the economic empowerment of women needs to start at the bottom. Women have to put food on the table and send their children to school. However, when we look at the sustainability of women’s economic empowerment, it actually involves women getting access to real projects.

“Let’s just look at the next 30 years and Pida’s goals for 2040: we don’t want to be left behind. We want to get in there while they are planning. We don’t want, by the year 2040, that they realize, ‘oh women again have been left behind’,” says Mkunu.

One woman who is grabbing the bull by the horns is South African property developer Belinda Moleko. Moleko has gone where no African has gone before. She is spearheading a $500 million project to design and build a small town near Mount Kilimanjaro in Tanzania.

Last year Moleko approached the Tanzanian government for a piece of land to develop. The government agreed and gave her land near Kilimanjaro, to take advantage of the high number of tourists who flock to Africa’s highest mountain, and therefore attract international investors.

“Through LWA, I presented myself to say: ‘I can do this type of thing. You offer me the land, you offer me payment guarantees, I will offer you performance guarantees’,” she says confidently.

“I was very lucky with Tanzania. They said: ‘Belinda, I will give you the MOU (memorandum of understanding) to develop 20,000 houses. We want you to create a whole new (town), like they do in South Africa.’”

The first phase of the project will see the local municipality moving its employees on site. Currently they have to travel daily from Arusha, which is about 100 kilometers away. A total of 1,400 houses with sanitation, electri-city and running water are due to be built by March next year. The town will eventually have all the amenities of a modern urban space, including schools, a library, hotels and parks.

“I’m going to leave a legacy that a woman came in and changed the face of Africa forever,” Moleko says intently.

But her dream has not been without obstacles.

“I could see there is a problem of housing, there is a problem with sanitation and that somebody needs to go in there and change it. But with this huge project on this table… I’m still finding it difficult, I cannot do it alone. I find that all the people I’m interviewing,

99 percent of them are men, and cannot believe that a black woman from South Africa has landed this project. They look at you as if to say: ‘you must have done something to deserve this’.”

One of Moleko’s major headaches has been access to finance, a common problem for women in the construction industry as well as in other sectors.

Commercial banks and even development finance institutions believe that women are more of a risk than their male counterparts. And that is even though Moleko has 20 years’ experience in the industry and her company, Bella Casa, built the first housing cluster in a South African township, Tembisa, near Pretoria.

“Take this project in Tanzania now. I have contacted banks here, and the first thing is: ‘what sureties do you have?’ I don’t have sureties, but I have a project that can give me sureties. I’m yet to see a bank that supports women without those conditions.

“I have seen ladies getting a small tender of about R100,000 ($10,000)… She gets that tender, knocks at the bank (door) to say government has given me a tender to supply them A, B, C, D. That tender even expires. That is why you see a tendency of people selling tenders to sell that project because it’s either you settle for a R1,000 ($100) or you lose.

There is no bank that wants to listen to you. They just aren’t friendly from the reception up.”

Moleko says another concern is that many women do not know how to put together a business plan, but banks and development finance institutions refuse to help them.

Although the AfDB has launched its development fund for infrastructure, Mkunu says the LWA will eventually set up its own fund to help women in infrastructure.

Moleko credits South Africa’s Trade and Industry Department for enabling her to move on the Tanzanian project. She approached the department’s gender desk to fund a $1.7 million feasibility study. After nearly five months of thorough checking, the department agreed.

But as Moleko says, governments cannot support infrastructure development on their own. Public-private partnerships, a buzzword gaining traction on the continent, are essential.

Although they look good on paper, in practice these partnerships leave much to be desired. Often projects are not completed because of logistics, non-payment by government, or even because companies run off with the cash. There are also very few systems in place to monitor what is being done, and unfinished projects are common across the continent.

Although Moleko is facing her biggest challenge so far, she believes her town will not be another half-baked project, and that once she has proved her mettle, the world is her oyster.

“We hope that from this project, all the other projects I have identified in Rwanda and Kenya, they will open themselves up.”

As a woman, Moleko’s journey has not been easy.

“In our industry, you have to be strong. It forces you to change yourself, your culture, your mannerisms, your ‘womaness’, and beat the man at his own game.”

She offers unequivocal advice for women wanting to enter the industry or those wanting to further their careers. “I always tell ladies wherever I speak: ‘Take off that apron! Don’t knock, kick (down) the door!’ Gone are the days of wanting to play housewife, cleaning. Create jobs by getting a helper to do it. Get out of your cocoon and go out there.”

Current Affairs

Facebook Reports Slower Q2 Advertising Growth While Google Reveals A Rare Revenue Decline

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The headwinds of Covid-19’s economic impact in the second quarter were strong enough to slow down even the ad-funded tech giants.

In its second-quarter results released on July 30, Facebook reported $18.7 billion in revenue, an increase of 11% despite the slowdown of advertising spend as marketers navigate the ongoing crisis. The results included $18.3 billion in ad revenue, a 10% year-over-year increase. Revenue from other operations totaled $366 million, up 40% from second-quarter 2019.

While Facebook maintained growth during the second quarter, its advertising rival Google did not. Around the same time that Facebook released its results, Google’s parent company Alphabet reported a rare decline in revenue, falling 2% year-over-year to $38.3 billion. Revenue from Google Search and other areas totaled $21.3 billion, down from $23.6 billion in second-quarter 2019. However, ad revenue on YouTube increased 6% to $3.8 billion, which the company said was driven by direct-response advertising.

In a statement, Ruth Porat, chief financial officer of Alphabet and Google, said revenues were “driven by gradual improvement in our ads business and strong growth in Google Cloud and Other Revenues.”

“We continue to navigate through a difficult global economic environment,” she said.

Both Facebook and Google have been known for their steady and massive quarterly growth despite concerns from advertisers, consumers and regulators around issues such as data privacy and content moderation. In 2019, Facebook reported revenue growth of 28% in the second quarter, 28% in the third quarter, and 25% in the fourth quarter. Revenue then grew just 17% in the first quarter of 2020 during the final three months before the pandemic prompted many advertisers to either pause or slow spending on various digital and traditional platforms.

Google’s growth story has been somewhat similar. Year-over-year revenue grew 17% in the first quarter of 2019, 19% in the second quarter, 20% in the third quarter, 17% in the fourth quarter before slowing to 13% in the first quarter of 2020.

On an earnings call today with analysts, Porat said advertising revenue “gradually improved” through the quarter with a “modest” improvement already in July.

“We do believe it’s premature to say we’re out of the woods, given the fragile nature of the economic environment,” she said.

The results come at a time of turmoil for the ad industry during the pandemic. In late June, marketing research firm eMarketer said it expected U.S. digital ad investment to increase just 1.7% this year—or $2.2 billion—compared to the previous growth estimate of 17%, or $22 billion. However, the slowed spending should be no surprise. In fact, during the early weeks of the crisis back in March, a survey of 400 media buyers found that 74% thought the pandemic would have a larger impact on ad spend than the 2008 financial crisis.

Facebook and Alphabet—along with other tech giants like Amazon and Apple—also have been under increased scrutiny by lawmakers. On Wednesday, Facebook CEO Mark Zuckerberg and Alphabet CEO Sundar Pichai along with the CEOs of Apple and Amazon spent the entire afternoon testifying to members of Congress. While the hearing was meant to focus on issues of antitrust, the four executives also touched on other issues ranging including data privacy, content moderation, and political influence.

While ad revenues were slower over the past three months, engagement was not. According to Facebook, engage on Facebook’s properties in terms of daily active users (DAUs) and monthly active users (MAUs) also increased in the second quarter, with DAUs increasing 12% year-over-year to 1.79 billion and MAUs increasing 12% to 2.7 billion. Across its “family” of apps—which includes Facebook, Instagram, Messenger, and WhatsApp—DAUs totaled an average of 2.47 billion for June 2020, an increase of 15% over the same period last year. The family monthly average was 3.14 billion in June—up 14% year-over-year.

According to a Facebook statement about its results, the growth in usage reflects “increased engagement as people around the world sheltered in place and used our products to connect with the people and organizations they care about.” However, the company said it’s recently seen “signs of normalization” as lockdown measures around the world have eased. Meanwhile, total ad impressions in the second quarter increased 40% although the average ad price decreased.

“Our business has been impacted by the COVID-19 pandemic and, like all companies, we are facing a period of unprecedented uncertainty in our business outlook,” Facebook said in a statement about its quarterly results. “We expect our business performance will be impacted by issues beyond our control, including the duration and efficacy of shelter-in-place orders, the effectiveness of economic stimuli around the world, and the fluctuations of currencies relative to the U.S. dollar.”

In July, Facebook has also dealt with a boycott over its practices and policies around moderating hate speech on the platform. The boycott—organized by civil rights groups including the NAACP and Anti-Defamation League—has been joined by hundreds of larger and smaller advertisers. Addressing the boycott on an earnings call with analysts, Zuckerberg said the company has agreed to an audit by the Media Ratings Council, and added that he’s “often troubled by the calls to go after internet advertising, especially during a time of such economic turmoil like we face today with Covid.”

“Some still seem to wrongly assume that our business is dependent on a few large advertisers, and while we value every single one of the businesses that use our platforms, the biggest part of our business is serving small businesses,” he said. “Our advertising is one of the most effective tools that businesses have to find customers to growth their businesses and create jobs.”

When an analyst on the call later asked how the boycott might be resolved, Facebook Chief Operating Officer Sheryl Sandberg said the company is still talking with civil rights groups and advertising trade organizations such as the Global Alliance for Responsible Media. She added that Facebook is “going to keep working hard at this, not because of advertiser pressure but because it’s the right thing to do.”

“It’s an interesting situation we find ourselves in because I think often times when companies are boycotted, it’s because they don’t agree with what the boycotters want,” she said. “And that’s not true at all here. We completely agree that we don’t want hate on our platforms and we stand firmly against it. We don’t benefit from hate speech. We never have. Users don’t want to see it, advertisers don’t want to be associated with it.”

By Marty Swant, Forbes Staff

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With proper investment in youth, Kenya’s potential for progress is unlimited

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By- Ruth Kagia and Siddharth Chatterjee

Africa’s demographic boom has been hailed as its biggest promise for transforming the continent’s economic and social outcomes, but only if the right investments are made to prepare its youthful population for tomorrow’s world.

Consider this. Every 24 hours, nearly 33,000 youth across Africa join the search for employment. About 60% will be joining the army of the unemployed. Africa’s youth population is growing rapidly and is expected to reach over 830 million by 2050. Whether this spells promise or peril depends on how the continent manages its “youth bulge”. 

President Kenyatta once said that “The crisis of mass youth unemployment is a threat to the stability and prosperity of Africa, and it can amount to a fundamental and existential threat”.

Investing in young people especially so that they are prepared for the world of work is the main mission of Generation Unlimited (GenU), a global multi-sector partnership established to meet the urgent need for expanded education, training and employment opportunities for young people aged 10 to 24.

On 05 August 2020, Kenya will launch the Generation Unlimited initiative. This initiative will bring together key actors from the public and private sector as well as development partners to help put into a higher gear this defining agenda of our time to ensure that we have prepared our children for a prosperous future by giving them the education, training and job opportunities that fully harnesses their potential. With a median age of 18, Kenya’s youthful population represents a real potential to reap a demographic dividend and accelerate its economic progress.

Kenya has one of the youngest populations in the world. With the right investment in their talents, skills, and entrepreneurial spirit, young people present an extraordinary opportunity for transformation, growth, and change.

Three quarters Kenya’s population is under the age of 35. Across Africa there are 200 million people between the ages of 15 and 24, a demographic that is expected to double by 2045.

One of the greatest challenges facing governments and policymakers in Africa is how to provide opportunities for the continent’s youth, in order to provide them with decent lives and allow them to contribute to the economic development of their countries. As things stand, around 70% of Africa’s young people live below the poverty line.

In Kenya, the pillars for achieving GenU objectives are in place, with various initiatives for instance to strengthen education system through the recently-launched competency based curriculum and government promotion of programmes to enhance technical and digital skills.

The fruits of such initiatives can be seen through numerous youthful innovations from Kenya that continue to receive international attention.  For instance, inspired by his great urge to communicate with his 6-year-old niece who was born deaf, Roy Allela, a 25-year-old Kenyan invented Sign-10, a pair of smart gloves with flex sensors to aid his cousin’s communication with the other members of the family.

The flex sensors stitched to each finger aid in quantifying the letters formed from the curve of each finger of the glove’s wearer. The gloves are then connected through Bluetooth to a mobile phone application that vocalizes the hand movements.   This innovation won him the Trailblazer Award by the American Society of Mechanical Engineers.

Gen U’s solution is to forge innovative collaborations with young people themselves. Since launching in 2018, the movement has brought onboard leaders from governments, foundations, and the private sector around the world. Its launch in Kenya underscores its government’s commitment to engage young people in pursuit of the Big 4 Development Agenda as well as Vision 2030.

President Uhuru Kenyatta is a global leader for the Generation Unlimited initiative. In Kenya, Gen U’s activities are coordinated by the Office of the President and the United Nations.

President Uhuru Kenyatta with UN Secretary General Antonio Guterres. Kenyatta was on Monday unanimously endorsed by world leaders to champion a new UN intervention on youth education, training and employment.
President Uhuru Kenyatta and the UN Secretary General Antonio Guterres were unanimously endorsed by world leaders to champion a new UN intervention on youth education, training, and employment at the UN General Assembly in 2018. [Photo/PSCU]

Shifts in today’s global economy demand that young people acquire skills aligned with dynamic labour needs, but local education systems have been slow to adapt. In many countries in Africa, school enrolment is up, but learning outcomes for young people remain poor. Most leave school without the skills the contemporary job market needs, and are ill-prepared for a world in which low-skilled jobs are increasingly automated.

A million young people join the workforce every year in Kenya, applying for jobs in a formal sector that can only absorb one in five of them. Some, however, find work at least intermittently in Kenya’s vibrant informal sector, which accounts for more than 80% of the country’s economy according to the World Bank.

Rather than focusing on opportunities in the formal sector, partners in the Gen U movement will look at strategies for supporting the informal sector with better infrastructure and an improved business environment. In doing so, it is hoped that it will be transformed into a recognised and legitimate sector.

Such initiatives have the full support of the recently launched Kenya Youth Development Policy, which seeks to underscore issues affecting young people. Technology will play a central role, and sector-based strategies will be central to the government’s approach.

The Kenya Youth Agribusiness Strategy, for example, will enable Kenya’s youth to access information technology for various value-addition ventures in Africa’s agribusiness sector set to be worth $1 trillion by 2030.

The Coronavirus pandemic has seen countries face changes in entire social and economic systems. Key industries, including manufacturing, healthcare, public services, retail, transportation, food supply, tourism, media and entertainment have been hard hit by the pandemic. The pandemic is an inflection point that is giving the old system a nudge. The post-COVID-19 world will be founded on a tech-savvy workforce that will inevitably comprise young people.

Calling on urgent action for young people, UN Secretary-General António Guterres has called on governments to “do far more to tap their talents as we tackle the pandemic and chart a recovery that leads to a more peaceful, sustainable and equitable future for all”.

In the run-up to the end of the SDGs era, we must ramp up the current level of investment in young people’s economic and social potential. As the vision of Generation Unlimited states, if the largest generation of young people in history is prepared for the transition to work, the potential for global progress is unlimited.

As President Kenyatta has noted, “the current generation of young people has the potential of expanding Africa’s productive workforce, promoting entrepreneurship and becoming genuine instruments of change to reverse the devastation caused by climate change.” 

Ruth Kagia is the Deputy Chief of Staff to President Kenyatta. Siddharth Chatterjee is the United Nations Resident Coordinator to Kenya. Mrs Kagia and Mr Chatterjee co-chair the Generation Unlimited Steering Committee in Kenya.

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OPEC And Its Allies Are Ready To Boost Production, But Here’s Why An Oil Market Recovery Isn’t Guaranteed

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After record production cuts in April intended to prop up the market amid a demand crisis caused by the coronavirus pandemic, the world’s largest oil producers are expected to ease up on the restrictions and begin to increase their output next month.

KEY FACTS

  • Saudi Arabia, Russia, and the other members of OPEC+ will meet Wednesday to discuss the current market situation and debate future production limits, the Wall Street Journal reported over the weekend, adding that most delegates in the organization support loosening restrictions.
  • As lockdown measures ease across the globe, demand for oil is slowly beginning to rise again as shipping and air travel resume. 
  • Oil prices are still down significantly from pre-pandemic levels, however, with the Brent international benchmark priced at about 30% of January levels. 
  • The International Energy Agency said Friday that while global demand for oil had recovered strongly in China and India in May, world demand is still projected to decline during the second half of the year before recovering in 2021. 
  • The recent spike coronavirus cases and new lockdowns are creating “more uncertainty”: additional lockdowns could discourage travel and international trade, which would put more downward pressure on prices.
  • The risk to the oil market is “almost certainly to the downside,” the IAE said. 

KEY BACKGROUND

In April, the members of the Organization of Petroleum Exporting Countries (OPEC) and its allies agreed to record oil production cuts of 9.7 million barrels a day as the coronavirus decimated global demand for crude oil. The agreement put an end to a weeks-long price war between Russia and Saudi Arabia that added even more pressure to an already-struggling market. 

CRUCIAL QUOTE

“If OPEC clings to restraining production to keep up prices, I think it’s suicidal,” a person familiar with Saudi Arabia’s thinking told the Journal. “There’s going to be a scramble for market share, and the trick is how the low cost producers assert themselves without crashing the oil price.”

Sarah Hansen, Forbes Staff, Markets

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