Ellen Johnson Sirleaf has an iconic status in Africa and the world. As the first elected female head of state in Africa, she served as the leader of Liberia for two elected terms.
Those terms saw Liberia’s slow and steady march from what was considered a pariah state to a country with what the Mo Ibrahim Foundation calls a “trajectory of progress” that has helped transform its economy, survive the shock of Ebola, and restructure public institutions to respond to the needs of the people.
It is only fitting that FORBES WOMAN AFRICA gets to meet the Nobel Peace Prize winner in Rwanda, a country known for its high representation of women in Parliament, and where Sirleaf is awarded the Ibrahim Prize for Achievement in African Leadership at a special ceremony.
Q. Please share your thoughts on the African Union (AU) self-funding reform goal, the Kaberuka Proposal.
The dependency of the AU on external sources has been the subject of debate for many years, and the thinking of our leaders is that it is better to finance our operations by ourselves and alleviate pressure and dictation from these external sources. On the other hand, we know that to have financial autonomy, every country must be able to contribute consistently. So, the crux of the reform is to change the payment formula and make sure everyone knows they have to pay their part.
When it comes to the Kaberuka suggestion, it meets our objective of financing our organization ourselves. However, it does place a burden on the poorer states… So, our position with the Kaberuka plan is to study it some more so when we commit, we do not fall into arrears. We want to see the reform implemented, and for it to include cost-reduction in structural aspects such as travel and positions etc., thus reducing the burden on poorer countries.
Q: Will Africa really be able to tackle illicit financial flows? And with women being conspicuously absent from financial decision-making, yet being the greatest losers on such issues, how do we tackle these discrepancies?
We have to become more accountable and pass stringent mandates in institutions, as well as instill practical capacity to understand the complexities of these financial transactions. Also, we must implement a legal system that will enforce against such flow violations.
Access for women is difficult even in the case of legitimate flows. Even with a growing manufacturing sector and agri-industrial activities usually manned by women, access is still limited, for rural women particularly.
There is a big effort being put in by different regional institutions; in Liberia’s case, GIABA, the Intergovernmental Action Group Against Money Laundering in West Africa, has been analyzing the flows and determining what is illicit.
But it is up to women to stand up and put other women in leadership roles, because the record is clear: women are more credit-worthy when it comes to financial transactions, and this suggests the more women there are heading these institutions, the more we can be assured that regulatory laws will be more effective.
Q: What are your plans? How would you encourage young women to follow in your footsteps, or even create their own path?
We are establishing the Ellen Johnson Sirleaf Presidential Center for Women and Development. The activities will center around five themes that will promote women in business; women in leadership; women in fragile states; women in migration; and education for women and girls. We will use the life experiences of women who have excelled in these areas. For the young women, I say to all, be self-confident and pursue your goals…Let us be bold as women.
– Interviewed by Laura Rwiliriza
Coca Cola South Africa Improves SME Role In Value Chain
Coca Cola Beverages South Africa (CCBSA) launches an R20 million fund for small supplier development and procurement, annually, for the next five years.
This was announced by the Financial Director, Walter Leonhardt at Gallagher Convention Centre at the third annual Supplier Development Conference.
CCBS is the South African-based subsidiary of Coca-Cola Beverages Africa (CCBA).
Leonhardt said the purpose of this fund is to assist young upcoming black entrepreneurs in the Coca-Cola value chain.
“We are, today, launching the CCBSA supplier fund of access to funding. To address the issue of access to funding which most SMEs experience,” said Leonhardt.
This will enable the entrepreneurs’ procurement process to be easier.
“It is to help them buy equipment, fund working capital and to help them overcome something we have identified as a challenge for upcoming businesses, which is access to capital on quit lenient terms,” said Leonhardt.
Budding entrepreneurs can visit their website to find out how they can access the funds.
There were over 120 suppliers of CCBSA in attendance.
Managing director of CCBSA Velaphi Ratshefola said they spent R2.35 billion last year, supporting 567 black-owned suppliers, of whom, 265 were black female owned suppliers.
“So for me, it is clear that this is working. We have helped create a very inclusive economy. We need to play our part and we need to ensure that only through an inclusive growing economy we can create a stable environment where businesses can flourish.
“If we do not have a stable environment, a stable economy, we will have a lot of disturbances which are never good for business,” said Ratshefola.
“So for all of us, we should not do it just for social reasons, we must do it for the success of businesses and imperative,” said Ratshefola.
Zimbabwe Central Bank Borrows $985 Million From African Banks
Zimbabwe’s Reserve Bank has borrowed $985 million from African banks to purchase fuel and other critical imports with current reserves covering imports for just four weeks, underscoring the severity of dollar shortages, governor John Mangudya said.
The southern African nation last month ditched a discredited 1:1 dollar peg for its surrogate bond notes and electronic dollars, merging them into a lower-value transitional currency called the RTGS dollar.
Mangudya said the central bank borrowed $641 million from the African Export and Import Bank, $152 million from Eastern and Southern African Trade and Development Bank, and $25 million from Mozambique’s central bank, among others.
The loans, which would be repaid from future gold earnings, have a tenure of between three and five years and attract an interest of up to 6 percent above the Libor rate, Mangudya said.
Gold is Zimbabwe’s single biggest mineral export earner, accounting for a third of its $4.2 billion earnings last year after a record output, central bank data shows.
“These loans are well structured facilities contracted last year. They will be paid from future (gold) export receivables,” Mangudya told a parliamentary committee.
The central bank takes 45 percent of dollar sales from gold producers and half from other miners to fund imports like fuel and power and repay foreign loans.
But the miners only have 30 days to keep their dollar balances in local foreign currency accounts, after which they must sell them. The companies have asked the central bank to extend the period they may keep their dollars to 90 days, according to mining executives.
Unable to get funding from foreign lenders like the International Monetary Fund and World Bank due to arrears of more than $2.4 billion, Zimbabwe has looked to financiers from the continent and local banks to shore up its budget.
The central bank chief said Zimbabwe had just $500 million in reserves, enough to purchase four weeks’ worth of imports.
Mangudya said government borrowing from the central bank reached $2.99 billion in December, about three times its permissible overdraft limit.
President Emmerson Mnangagwa’s government has promised to curb borrowing in 2019 under reforms to revive the southern African economy, after the budget deficit soared last year following a spike in spending ahead of elections.
Finance Minister Mthuli Ncube said last week that the local RTGS dollar, Zimbabwe’s new de facto currency, will be backed up with fiscal discipline and the government would allow it to fluctuate but would manage excessive volatility.
On the interbank forex market on Monday, one U.S. dollar fetched 2.5 RTGS dollars, the same rate as on Feb. 22 when the central bank sold some dollars to banks. That compares to a rate of 3.5 RTGS dollars per U.S. dollar on the black market. -Reuters
Volvo To Limit Car Speeds In Bid For Zero Deaths
Volvo Cars said on Monday it will introduce a 180 km per hour (112 mph) speed limiter on all new vehicles as the Swedish automaker seeks to burnish its safety credentials and meet a pledge to eliminate passenger fatalities by 2020.
While Volvo, whose XC90 flagship SUV currently has a top speed of 212 km/h, has made progress on its so-called “Vision 2020” target of zero deaths or serious injuries, Chief Executive Hakan Samuelsson said it is unlikely to meet the goal without additional measures to address driver behavior.
“We’ve realized that to close the gap we have to focus more on the human factors,” Samuelsson said. Volvo did not elaborate on the data but said its passenger fatalities were already well below the industry average before the goal was announced in 2007.
In addition to the speed cap, Volvo plans to deploy technology using cameras that monitor the driver’s state and attentiveness to prevent people driving while distracted or intoxicated, two other big factors in accidents, Samuelsson said.
The company is also looking at lower geo-fenced speed limits to slow cars around sensitive pedestrian areas such as schools, while seeking to “start a conversation” among automakers and regulators about how technology can be used to improve safety.
Volvo, which is owned by China’s Geely, announced the new speed limitation policy on the eve of the Geneva auto show, where its new Polestar performance electric-car brand is showcasing its second model, the Polestar 2.
While Volvo buyers often choose the brand for its safety, Samuelsson conceded that the speed cap could be a turn-off for a few in markets such as Germany, where drivers routinely travel at 200 km/h or more on unrestricted autobahns.
“We cannot please everybody, but we think we will attract new customers,” the CEO said, recalling that the roll-out of three-point seat belts pioneered by Volvo in 1959 had initially been criticized by some as intrusive.
“I think Volvo customers in Germany will appreciate that we’re doing something about safety,” he said. -Reuters
– Laurence Frost; additional reporting by Esha Vaish
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