Baker Hughes, a GE Company Awarded Second Major Contract for Eni East Africa’s Coral South FLNG
August 31, 2017 | 0 Comments
|The second contract – which was awarded through the former GE Oil & Gas business – will allow BHGE to provide rotating equipment for the power and gas refrigeration process of the new FLNG facility|
|LONDON, United Kingdom, August 30, 2017/ —
Baker Hughes, a GE company (www.BHGE.com) has announced a second major contract for Eni East Africa’s (EEA) Coral South FLNG development, offshore Mozambique, underlining the company’s position as the world’s first and only integrated fullstream provider of products, services and digital solutions that maximize productivity, efficiency and cost reduction.
The contract was awarded in 2Q this year by a joint venture formed by TechnipFMC and JGC Corporation, the lead partner in a consortium that will provide engineering, procurement, construction, installation, commissioning and start-up (EPCIC) of Coral South’s FLNG facility.
The second contract – which was awarded through the former GE Oil & Gas business- will allow BHGE to provide rotating equipment for the power and gas refrigeration process of the new FLNG facility. The order consists of four Turbo-compression trains for mix refrigeration services, using the company’s aeroderivative gas turbine (model PGT25+G4) technology and driving its centrifugal compressors. In addition, the company will provide four Turbo-generation units, also driven by aeroderivative gas turbines (model PGT25+G4).
The components of the turbo compressor trains and turbo-generation units will be manufactured at BHGE Nuovo Pignone facility in Florence, Italy where the train will be assembled, and tested in the Massa facility, Italy.
Demonstrating the benefits for customers of BHGE’s access to the GE Store – where the company can draw technologies (such as the gas turbines derived from the Aviation business) and expertize from multiple industries – the Turbo-generation units will be equipped with electric generators provided by the GE Power Conversion business.
A third contract was also awarded to BHGE after the closing of the integration between GE Oil & Gas and Baker Hughes last July and it includes the supply of Boil-Off Gas (BOG) and booster compressors capable of operating at -180° C to re-liquefy excessive BOG evaporating out of the LNG storage tanks. In particular, BHGE boil-off gas compressor draws on extensive in-field experience and has been validated through a dedicated experimental campaign of detailed analysis and testing.
“Coral South LNG is an enormously important development for Mozambique and the region – the first new-built FLNG facility to be installed in Africa and one of only a small number in the world today,” said Rod Christie, President and CEO, Turbomachinery & Process Solutions, BHGE, “These awards further underline BHGE’s position as a fullstream provider of smart, cost-effective advanced technology and solutions to drive reliability, flexibility, efficiency and productivity for major energy developments, while building on our relationships with oil and gas operators and our technical expertise that has been a true differentiator in this project.”
The contracts won by BHGE follow an earlier award in June this year for the supply of seven xmas trees, three 2-slot manifolds with integrated distribution units, MB rigid jumpers, seven subsea wellheads with spare components, a complete topside control system to be installed on the Coral South FLNG facility, and associated Services equipment and support including IWOCS and Landing Strings, tools, spares and technical assistance for installation, commissioning and start-up.
BHGE announced on July 3rd the completion of the transaction combining GE’s oil and gas business with Baker Hughes. The new company is the first and only to bring together industry-leading equipment, services and digital solutions across the entire spectrum of oil and gas development.
The Coral South FLNG project, the first phase of EEA’s wider plan of development for the world-class gas discoveries made in the Rovuma Basin Area 4, will see the installation of an FLNG facility with a capacity of around 3.4 MTPA, fed by six subsea wells and expected to produce around 5 TCF of gas during its 25 years of production, with an anticipated start-up in mid-2022. The first ever offshore project to start producing gas in Mozambique, it will provide significant local economic benefits through job creation and support the region’s future energy needs.
EEA is the operator of Area 4, and holds 70% participation interest in the Area 4 Concession. Eni (71.43%) and CNPC (28.57%) are shareholders of EEA.
Baker Hughes, a GE company (NYSE: BHGE) is the world’s first and only fullstream provider of integrated oilfield products, services and digital solutions. We deploy minds and machines to enhance customer productivity, safety and environmental stewardship, while minimizing costs and risks at every step of the energy value chain. With operations in over 120 countries, we infuse over a century of experience with the spirit of a startup – inventing smarter ways to bring energy to the world
Insight Into Atlas Africa: It is about Aligning Business Opportunities With Interested Parties, says CEO Lindi Gillespie.
August 31, 2017 | 0 Comments
By Ajong Mbapndah L
For Lindi Gillespie, connecting the right people to opportunities in the market place and creating viable and strategic partnerships is her passion. Leveraging her vast networks and experience garnered over a twenty year period in diverse marketing and business roles, Lindi Gillespie founded Atlas Africa, an investment and brokerage company with operational base from South Africa. The firm offers clients the opportunity to expand business prospects on a broad range of sectors across Africa and on the global stage.
As CEO of Atlas Africa, Lindi, a Graduate of the University of Cape Town has surrounded herself with a solid team of talented associates who pride themselves in providing tailor made investment brokerage services and the delivery of first class returns to their clients.
“We do our best to understand our client’s business needs and long term plans when putting together a marketing strategy for bringing their services and products into the African markets,” says Lindi, who was recently ranked amongst Africa’s top 25 Women in Leadership by Amazon Watch Magazine.
With the goal of building long term professional relationships based on honesty, integrity, and sustainable revenue generation, Atlas Africa has steadily grown its business portfolio across Africa and beyond. In addition to South Africa and the SADC sub region, Atlas has excelled in West and East Africa, and Lindi says there are a growing number of hotel deals going through in the Maldives and Europe.
“Our clients stick with us because we work hard for them and always do our very best to find the best solutions to their needs by using our International network,” says Lindi as she expresses the ambition to further grow and sustain the strong reputation of Atlas Africa when it comes to investing in the continent.
Ms Gillespie, thanks so much for accepting to grant this interview , you are CEO of Atlas Africa Group, could you start by introducing the Group for us, what does it do, and when was it created?
Atlas Africa Group was formed in December 2015 when I attended the Global African Investment Summit in London. The Atlas Africa Group finds financing for renewable energy projects internationally; but predominantly in Africa. I raise these funds from individual investors; pensions fund; renewable energy funds and private equity funds. We also focus on Projects that are property related. We are very involved in development of hotels and also the buying and selling of hotels in Africa and its surrounding islands. Other sectors of the economies in Africa are covered as well.
What motivated you to create the Group, what skill set did you have, may we also have an idea of the staff strength and profile of those who make up the Group?
The motivation to start the Group was the dire need for infrastructure development; electricity; urbanisation development and especially agriculture to feed the people of Africa. Sustainability in Africa was my core motivation – to assist with this process. My skills are mainly in marketing and in introducing people where synchronicity exists to make things happen around the continent. For example I work closely with the Swiss who have foundations to help the poor and also various funds that have budgets to help the underprivileged people in our communities. The kind of people I choose to work with are professionals who are experts in all the fields that I can’t fill! Such as accounting and office administration. I prefer face to face contact with clients; travelling for work related projects and marketing our pipeline of projects.
Let’s talk about the success stories, are there concrete examples of successful projects that have been carried out by the Atlas Group? Potential clients may be interested in knowing something about the track record of Atlas
Our success stories are mainly in renewable energy and infrastructure development. At the moment deals are being processed in the Ivory Coast and Mali. These deals are private and public projects. We also have a number of hotel deals going through in the Maldives and Europe. These deals involve International hotel brands and private equity firms. We are processing low cost housing projects in two areas of Namibia where building of houses will begin within the next few weeks.
For people interested in using the services of Atlas, what do they need to do and what additional guarantees does the Group have to assure clients of positive results?
For positive result with new clients, it is a question of what stage the project is based. For instance we have investors of Greenfield renewable energy projects but projects with all licences and a PPA is where most of the clients invest. When it comes to PPPs, countries that offer sovereign guarantees or some form of guarantees make the project more attractive to investors. For projects needing funds Atlas Africa is always open to consider these projects.
What other parts of Africa is the Group operating in besides South Africa where it is based?
Atlas Africa focuses mainly on countries of good governance. We focus on areas where is safe for workforce to complete projects. Our presence is mainly in the SADC region and various countries in East and West Africa.
How will you describe the business climate first in South Africa and on other parts of the continent where you do business?
With the downgrading of South Africa’s economic sector; there are challenges in all parts of the economy including private and public business. I focus most of Atlas Africa Group’s growth outside of South Africa. I have a number of property interests however in South Africa. Our press in South Africa is bullish which helps with addressing the corruption in the country. The corruption has affected growth in all areas of the economy and many people are taking their money out of the country; emigrating or disinvesting.
Lindi Gillespie was recently profiled as one of Africa’s Top 25 Women in Leadership by Amazon Watch Magazine, what did this mean for you?
Being chosen as one of the 25 most influential women in Africa was a huge achievement for me. It showed that the work I do in Africa counts and that I have a voice on the continent. I would like to become more involved with positive movements and change.
To young Africans especially the women who see in you a role model, and will want to emulate your example, what are some secrets of success that you have for them?
The secret of success for young women is to have a specific focus. The best choice is to align yourself with positive people who will support your ideas and your business growth. If you are an entrepreneur like myself ,you need to expect difficulties and challenges. This will keep you up at night but you need faith to keep going. So many deals fall through but it’s all part of being in the game of business. Try and secure finance so that you can get through the hard times when deals are taking years to come through!!
We end with a last word on the future of the Atlas Group, what next after growing it to where it is, any big plans in the years ahead to grow and improve the client base?
Our big plans and ambitions are to grow and sustain our strong reputation when it comes to investing in Africa. Our clients stick with us because we work hard for them and always do our very best to find the best solutions to their needs by using our International network.
Power Africa Releases Annual Report
August 22, 2017 | 0 Comments
Power Africa, a U.S. Government-led initiative to double access to electricity in sub-Saharan Africa, has released its annual report. The initiative consists of more than 150 public and private sector partners, which have collectively committed more than $54 billion towards achieving Power Africa’s goals. It is among the world’s largest public-private partnerships in development history.
The 2017 report highlights how Power Africa continues to lay the foundation for sustainable economic growth in Africa while creating opportunities for American businesses as it makes progress towards its goals of increasing installed generation capacity by 30,000 megawatts (MW) and adding 60 million new electricity connections by 2030.
Since its inception, Power Africa has facilitated the financial close of power transactions expected to generate more than 7,200 MW of power in sub-Saharan Africa. The 80 Power Africa transactions that have concluded financing agreements are valued at more than $14.5 billion, and Power Africa projects have generated more than $500 million in U.S. exports. In addition, Power Africa has facilitated more than 10 million electrical connections, which have brought electricity to more than 50 million people for the first time.
The report also highlights the role of women in Africa’s power sector, by chronicling the contributions of select members of Power Africa’s Women in African Power (WiAP) network. It includes an executive letter from the Honorable Irene Muloni, Minister for Energy and Minerals in Uganda, as well as profiles of women whose drive is strengthening Africa’s power sector.
Over the next year, Power Africa will work with more than 100 U.S. companies, African partners, other donors, and the private sector to harness the technology, ingenuity, and political will necessary to bring the benefits of modern energy to even remote parts of Africa while promoting economic growth. The initiative will also expand beyond its initial focus on solar lanterns and renewable energy to support more on-grid power projects in natural gas and other sources.
Integrating Financial Services In Africa
August 18, 2017 | 0 Comments
A defining objective of the African Union is to promote sustainable development at the economic, social and cultural levels as well as the integration of African economies. This noble mandate, enshrined in Article 3, of the Constitutive Acts of the AU, actually predates the AU, and was a principal goal of the Organization of African Unity, OAU, the predecessor body of the AU.
Economic integration also provided a fundamental impetus in the formation of the various Regional Economic Communities, RECs, and monetary zones in Africa – viz. ECOWAS, UMOA, CEMAC, CEEAC, EAC, AMU, CEN-SAD, SADC, COMESA, IGAD, etc. Together, these RECs have striven to promote and co-ordinate social, political and economic integration in the continent.Interestingly, some countries are even members of up two or three RECs. This is a testament to the overarching criticality of economic integration in the vision, plans and activities of African states.
In this treatise, I will focus on the integration of financial services in Africa, an unheralded field, but where remarkable results are being recorded. A Payment System is a facilitator of monetary transactions, and a veritable integrative node. In the UEMOA zone, in West Africa, the Groupement Interbancaire Monétique de I’UnionEconomique et MonétaireOuestAfricaine, more widely known by its French acronym, GIM-UEMOA, set up by BCEAO, the Central Bank of West African States in 2003, in striving to create a cashless region, has grown to become a regional platform for cards, electronic payments, and clearing of interbank transactions. With over 100 banks, financial and postal institutions as members; cardholders in the GIM network,pay relatively low transaction fees.
Also, the Central African equivalent, GIMAC,created in 2013, under the guidance of the Central Bank of Central African States, BEAC, is working with Banks to integrate the electronic payments system in the region, and ensure inter-operability and acceptance of GIMAC cards, for ATMs, POS, etc, by banks and for international payments,and reduce transaction and cash handling costs, while facilitating e-commerce.
The East African Payment System, EAPS, provides a platform for the real time settlement of cross border payments in the region. Driven by the Central Banks in the region, and piloted in 2013, the payment system took off immediately in Kenya, Uganda, Tanzania, and subsequently, Rwanda. More remarkable is that EAPS is based on direct convertibility, and the use of the currencies of participating countries for transactions and settlement, without the intermediary facilitation of any OECD currency. For instance, transactions initiated in Tanzania shillings can be directly settled in Uganda shillings or Kenya shillings.
In Southern Africa, the SADC Integrated Regional Electronic Settlement System (SIRESS),and the Regional Payment and Settlement System, REPSS, launched separately in 2014, are two integrative payments systems worth referencing. Through SIRESS, funds can be wired, real time, to beneficiaries with accounts in SIRESS commercial banks. REPSS, with a clearing house in Zimbabwe, and the Central Bank of Mauritius as its Settlement Bank, utilizes an electronic platform for cross-border payments and settlement.
Quite positively, these initiatives, operationalized under the auspices of Central Banks, and with the active participation of commercial Banks are technologically advanced, rapid, and secure. While leveraging on the real-time gross settlement systems of the countries, they seek to enhance efficiency, reduce settlement time, lower transaction costs and generally facilitate intra-African trade, and economic integration in the continent.
In tandem, the banking sector, in Africa, has expanded exponentially in the last decade, in asset size and profitability; geography -distribution channels and network; product sophistication- digital banking, cards, mobile payments; and, financial inclusion. Access to financial services continues to improve across the continent. Furthermore, leveraging on enhanced capacity, pan-African banks are increasingly able to collaboratively finance large ticket and transformational infrastructural projects through syndications and risk sharing. Currently, the top 20 pan-African Banks have assets over $800b, with over 11,000 branches. Beyond banking, we are also witnesses to the birth and growth of pan-African insurance, micro finance, and other financial service companies across the continent that offer greater diversity and depth of products and solutions. All these have led to the increase in the range, frequency, and diversity in the classes of risks that Banks, and other financial institutions, face. Concomitantly, risk management, regulatory compliance and corporate governance have become more stringent, and with onerous application, as they remain important variables for assessing the health of Banks, in the drive towards overall sector viability and sustainability.
Imperceptibly, but surely, the regulatory environment of the financial services sector, is also being integrated. The Association of African Central Banks, headquartered in Dakar, brings together 39 regional and country Central Banks in Africa. In line with its statutes, and practices, its Assembly of Governors, usually meets yearly, to deliberate on financial system stability, monetary and payment system integration, the African Central Bank initiative, etc.Another critical arm is the Community of African Banking Supervisors (CABS) which works to strengthen banking regulatory and supervisory frameworks.In the last decade, I have observed, first hand, this increased collaboration between African Central Banks,with MOUs being signed, to facilitate cross border supervision, exchange of ideas and information sharing between host and home regulators. Also, the College of Supervisors set up by the Central Bank of Nigeria, as a forum that brings together host regulators of Banks, with headquarters in Nigeria, but with operations in other jurisdictions,to strengthen governance practices, and ensure soundness in the banking sector, is also a positive development.
An evolving trend in the African banking space, is the initiative to connect Africa, andenablecustomers of a bank to conveniently access their accounts, deposit cash and make cheque withdrawals in any branch, in different countries across Africa, where the bank operates, outside the primary country holding the account. This has the distinct capability to alter the face and operation of banking in the continent as it will open up and facilitate easy movement of goods, services capital, and people. I also look forward to the day, soon enough, for instance, when a Moroccan manufacturer of fertilizer visiting Zambia to negotiate a contract; agrees payment terms, issues a paymentinstrument right away to a Zambian exporter of high quality packaging materials and gets value immediately, using simple electronic payment instruments.
On the whole, these emerging trends contribute significantly to the on-going African-led processes of creating a powerful, vibrant pan-African financial infrastructure, to further undergird and deepen Pan African economic, commercial, business and social interactions through access to personal and business finance across Africa. Together with the various similar initiatives in different spheres by African economic communities identified above, these initiatives will serve as a powerful signal of the march of African economic advancement through financial facilitation to build a fully integrated financial system that enhances financial inclusion, and serves the people.
Work remains. To accelerate financial integration, existing regional mechanisms and frameworks, including those highlighted above, must now begin to coalesce and fuse into larger pan-African systems, Central Banking, common currency, payments and collections; intra-African trade facilitation; etc. In spite of existing differences, but given the importance and fluidity of finance to agriculture, infrastructure, industry and economic development, the largest economies in each region showered as regional anchors, within a defined framework of the Assembly of the African Union.
*Emeka is Executive Director; CEO Africa- Francophone at UBA Group.Piece culled from linkedin page.
The Africa Travel Association to host the 41st Annual World Tourism Conference in Rwanda this month
August 17, 2017 | 0 Comments
Africa: A.P. Moller Holding launches new infrastructure fund with a focus on Africa
August 12, 2017 | 0 Comments
|The new fund will focus on investments in infrastructure in Africa to support sustainable economic growth in the region while delivering an attractive return to its investors|
|COPENHAGEN, Denmark, August 10, 2017/ — A.P. Moller Holding (www.APMoller.com) has together with PKA, PensionDanmark and Lægernes Pension launched a new infrastructure fund with a focus on Africa. The fund has received commitments of USD 550 million from anchor investors.
The new fund will focus on investments in infrastructure in Africa to support sustainable economic growth in the region while delivering an attractive return to its investors.
The fund will be managed by A.P. Moller Capital, which is an affiliate of A.P. Moller Holding, and consists of a team lead by four partners, Kim Fejfer, Lars Reno Jakobsen, Jens Thomassen and Joe Nicklaus Nielsen. The partners all have extensive industrial and investment experience combined with a substantial network in Africa.
“We are very pleased with the significant support from the Danish pension funds and A.P. Moller Holding. Together, we will build and operate infrastructure business in Africa to support sustainable development and improvements in living standards across the continent. We will combine the best from industry in terms of project management and operational capabilities with the best from private equity in terms of agility and focus,” says Kim Fejfer, Managing Partner and CEO of A.P. Moller Capital.
“A.P. Moller Holding was established to build value creating businesses that have a positive impact on society. Africa, with a working-age population likely to reach more than one billion people in the next decades, has a pressing requirement for more investments in infrastructure. In this respect, we are delighted to have established a new promising company in our portfolio with a strong team, who hold the right capabilities and experience to manage infrastructure investments in emerging markets,” says Robert Mærsk Uggla, CEO of A.P. Moller Holding.
The fund has a duration of 10 years and has an initial target of 10 to 15 investments in total.
Peter Damgaard Jensen, CEO at PKA: “PKA has for many years invested in infrastructure both in Denmark and abroad. We have positive experiences investing in Africa and we have for a long time wanted to invest more on the continent. With this new fund we will be making infrastructure investments in Africa and get the opportunity to provide a good return to the pension savers and at the same time make a positive difference in line with the UN Sustainable Development Goals”.
Torben Möger Pedersen, CEO PensionDanmark: “We are delighted to be among the seed investors in Africa Infrastructure Fund I. We see this as a unique opportunity to invest in a region with high economic growth and attractive investment opportunities alongside a partner, A. P. Moller Capital, that has extensive investment experience combined with a strong network and a promising pipeline of potential investment projects. The fund is a good example of how private capital can be mobilized on large scale to implement the UN’s Sustainable Development Goals”.
Chresten Dengsøe, CEO at Lægernes Pension: “Lægernes Pension are delighted to invest in the development of sustainable infrastructure in Africa together with similar-minded Danish pension funds. The team has many years of experience and a proven track record in the region and we expect them to provide attractive investment opportunities going forward”.
Following first commitments, the fund will be open for additional institutional investors for the next 12 months. The ambition is to raise USD 1bn in commitments.
AFRICA’S SKYROCKETING UNEMPLOYMENT: WHO IS TO BLAME, THE UNIVERSITIES OR THE STATES?
August 12, 2017 | 0 Comments
By Moses Hategeka
A few years back, I wrote an article titled, “Universities/Varsity Curricula Must be Practical” that was published in, The Herald, Zimbabwe’s most popular and biggest Newspaper, and was as well republished in various other Newspapers and Magazines in other African countries.
In that article, I argued that, theory based and powered curricula as administered in most African universities, cannot spur a critical mass of skilled graduates needed to transform African economies and called, for its total overhaul.
In the same article, I called upon, African governments to step up funding to their universities and compel them to overhaul cramming based learning and adopt research powered learning.
Research powered learning especially in the experimental sciences curricula, makes students, to gain knowledge of producing inventions, innovations, and ground breaking technologies, which if backed by supportive conducive governments’ policies, can be a catalyst, in spurring industrial and entrepreneurial development in African countries. It also enables the students from social sciences and humanities field, to gain interdisciplinary knowledge, that in turn makes them, critical thinkers, capable of objectively analyzing public policies and other issues at hand, and provide remedies where inadequacies exists.
Africa’s skyrocketing unemployment problem, especially youth unemployment that is affecting millions of youth on the continent, is a manifestation, of the failure of governments and universities, to harmonize their visions, into one complimentary vision of finding solutions to the challenges facing the continent.
Universities are supposed to be the center of knowledge production and dissemination where learners are equipped with relevant knowledge and skills that makes them capable of solving societal problems and meeting societal needs. Are African universities serving this purpose fully?
Globally, research is a chief driver of new knowledge and innovation crucial for spurring sustainable industrial and entrepreneurial development, but how much of the research have African universities done or are doing that have translated or are translating into industrial commercial usable products? Why is it that, African industries are majorly powered by imported technologies despite the fact that we have engineering and technology faculties at our universities?
In the medical field, why is that all the health complications that requires specialized surgeries are mainly done outside Africa with those unable to afford it dying miserably despite us having medical schools/faculties at our universities? Still in medical sector, why is that the few molecular biologists in our countries are unable to use computerized technologies to read and analyze the genomes of viruses and only do so after being subjected to re-training by experts trained from abroad?
African governments are supposed to apportion a good percentage of their national budgets for research development, if research, is to result into implementable policies and industrial usable products. But wait a minute! Looking at countries’ national Budgets, how much money percentage wise does African countries allocate to their institutions for research development?
Governments are also supposed to create robust favorable environment and opportunities for its employable citizens not only at national level, but also at international level, by incorporating in their foreign policies and international relations, the issue of systematically and legally transporting their employable labor to other countries where it is needed through bilateral relations, like what Cuba, Russia, China, and India have done and are doing. What are African countries doing in this regard?
For example, on realizing that, it cannot employ, all its trained Doctors, Cuba, decided to integrate medicine as a fundamental element in its foreign policy and international relations, as thus, eighty percent of Doctors and health professionals in Venezuela, are Cubans, send there by the Cuban government, on bilateral arrangement with Venezuelan government, where by Cuba, supplies medical workers in return for oil and gas supplies from Venezuelan government. Cuba also has hundreds of Doctors working on bilateral arrangement in other Latin American and African countries. Russia, India, and China, who produces, highest number of technology specialists and professionals in life and experimental sciences also does the same.
To the Chinese government, where there is Chinese capital and trade, there should be Chinese labor. Many people keep on wondering, why there is large presence of Chinese engineers, technicians, and traders, especially allover in African countries and other developing nations, forgetting that, transportation of labor to foreign countries, is a cardinal part of Chinese foreign policy and international relations. In fact, all the major infrastructural development projects in Africa, like major road high ways, Dams, buildings and industries construction, have been and are being executed by Chinese supported companies and labor
To overcome, the waves of rural- urban migration tied unemployment, and curb horrible unemployment figures among its science and technology specialists, the Chinese government, developed an economic diversification policy aligned, to urbanization, industrialization, and transformation of rural locations, into production centers, which involved relocating major industries from already congested industrial centers to rural areas, thus expanding industrial base and creating new towns and employment in the process, Wuxi and Nantong for example, owe their transformation from rural to major industrial centers to this policy.
In sum, universities’ curricula must be research derived and interdisciplinary powered, for the graduates to translate the acquired knowledge and skills, into industrial usable products and attaining critical thinking skills, capable of finding solutions to the societal challenges and needs and African governments must ably fund their varsities for this to happen in addition to putting in place, the implementable policies that stimulate entire spectrum
Moses Hategeka is a Ugandan based Independent Governance Researcher, Public Affairs Analyst, and Writer
Fitch affirms African Development Bank’s Triple ‘A’ rating with Stable Outlook
August 12, 2017 | 0 Comments
Leading global rating agency Fitch Ratings has affirmed the African Development Bank’s (AfDB) Long-Term Issuer Default Rating (IDR) at ‘AAA’ with a Stable Outlook and its Short-Term IDR at ‘F1+’ (best quality grade, indicating exceptionally strong capacity to meet its financial commitments).
In a statement released on 4 August, the agency said the ‘AAA’ rating primarily reflects extraordinary support from AfDB’s shareholders which provides a three-notch uplift over the Bank’s intrinsic rating.
“AfDB enjoys strong support from its 80 member states, which include 26 non-African countries with high average ratings. Callable capital subscribed by member states rated ‘AAA’, the largest of which are the US, Germany and Canada, accounts for 21% of the total. This fully covered the Bank’s net debt at end-2016, underpinning the ‘aaa’ assessment of shareholders’ capacity to support,” the statement said.
The report underscores the strong propensity of member states to support the Bank in case of need as illustrated by previous capital increases and the Bank’s important role in the region’s financing.
In the assessment, Fitch maintains that fast growth in AfDB’s lending in the last two years has translated into a rapid increase in its indebtedness, noting that the Bank’s Management has indicated that if there is no clear evidence of a capital increase within the next two years, it will have no choice but to curb lending growth to preserve the Bank’s solvency metrics. The report added that if no capital increase is approved by 2019, debt will not be fully covered by callable capital from ‘AAA’ rated countries, adding that this would place substantial pressure on Fitch’s assessment of extraordinary support and, hence on AfDB’s IDR.
Fitch asserts that the relatively high risk profile of borrowers is mitigated by the preferred creditor status (PCS) that the Bank enjoys on its sovereign exposures.
Fitch assesses AfDB’s liquidity at ‘aaa’, which reflects excellent coverage of short-term debt by liquid assets (2.9x). However, Fitch notes that the share of the portfolio invested in securities or bank placements rated ‘AA-‘ or above (83% in 2016) is declining, although their quality is still assessed at excellent. Fitch understands that management intends to rebalance the treasury assets portfolio in order to increase the proportion of assets rated ‘AA-‘ or above. This would help underpin Fitch’s assessment of the strength of extraordinary support, given the relevance of liquid assets’ quality to the net debt calculation.
“The -1 notch adjustment to AfDB’s solvency stemming from our assessment of its business environment reflects the high risk operating environment in which the bank operates,” the report says, noting that the majority of African countries are classified as low income by the World Bank. The average income per capita and average rating of member states are the lowest of all regional MDBs, and they are subject to an overall high level of political risk.
Commenting on the rating, AfDB Acting Vice-President for Finance, Hassatou Diop N’Sele, said, “We welcome the confirmation of the AfDB’s AAA rating by Fitch, with a stable outlook. The Bank is dedicated to doing the most to make a marked positive difference in the lives of hundreds of millions of Africans, while at the same time preserving its financial integrity. Our High 5agenda is our response to the need to accelerate and scale up Africa’s development to achieve the Sustainable Development Goals of the continent. The High 5 agenda, reflecting five identified priority areas (namely energy, agriculture, industrialization, integration and human capital development), enjoys strong support from our shareholders. The AfDB will continue to maintain a careful balance between maximizing its development effectiveness and assuring complete preservation of the interests of its stakeholders.”
One Thousand Young African Leaders Convene in Washington to Collaborate on Leadership and Skill Building
August 12, 2017 | 0 Comments
One thousand young African leaders gathered in Washington, D.C., last week for the 2017 Mandela Washington Fellowship Summit. Representing 48 countries in Sub-Saharan Africa, the diverse group of leaders immersed themselves in activities to strengthen their leadership skills and to build connections with each other and U.S. leaders from the public, private, and non-profit sectors.
Held July 31 – August 2 and hosted by the U.S. Department of State’s Bureau of Educational and Cultural Affairs with support from IREX, the Summit marked the culmination of the Fellows’ six-week Academic and Leadership Institutes at colleges and universities across the United States. Fellows now return home to apply the skills they have gained and utilize the networks they have created to enhance peace and security, spur economic growth, and strengthen democratic institutions to the benefit of Africa and the United States.
Mandela Washington Fellow Peo Pinkie Sebotho from Botswanacommented on collaborating with other Fellows. “We were excited to share our experiences and our dreams for Africa. I made friends, I made business partners. We were planning what we would do together in the future.”
Mark Taplin, then Acting Assistant Secretary of State for Educational and Cultural Affairs, said: “I don’t think of this as just a Mandela Washington Fellows Summit. This may be the biggest gathering all year here in D.C. of the up-and-coming, the leading and creating, the dreaming and doing, the sharing and caring. You are the future in business and entrepreneurship, in civil society and governance of the world’s most up-and-coming continent.”
Wade Warren, then Acting Administrator, U.S. Agency for International Development, also addressed the Fellows, calling on them to use the full power of the networks the Fellowship has helped them forge, and to think of challenges as opportunities.
Wednesday highlighted U.S. and African perspectives on leadership with remarks from Tony Elumelu, Chairman of Heirs Holdings and Founder of the Tony Elumelu Foundation; Dr. Helene Gayle, CEO of McKinsey Social Initiative; Norman Moyo, Author and CEO of New Enterprise Business DPA & CUMII at ECONET; and General (Retired) Richard Myers, President of Kansas State University and 15th Chairman of the Joint Chiefs of Staff.
“I’ve studied why leaders are successful and I’ve seen a common thread: legacy. So as young leaders, you must think legacy. You must think long-term. The age you’re creating is the age of empowerment,” Elumelu declared.
In his address, General Myers emphasized courage and risk-taking. “If you’re trying to make a difference, you have to persevere. It takes more than a heroic leader to make a difference, it takes all of us,” urged Myers.
Wednesday also featured a Congressional forum on investing in the next generation of Africa with U.S. Senator from Delaware Chris Coons discussing advocacy, entrepreneurship, civic engagement, human rights, and U.S.-Africa relations.
IREX President and CEO Kristin M. Lord notes: “The Mandela Washington Fellowship creates a network of leaders advancing peace, prosperity, and more effective governance. That benefits not only people on the African continent, but forges people-to-people and government-to-government relationships that benefit both the United States and Africa.”
*Source IREX/PR Newswire.Contact Alex Cole, Director of Strategic Communications, IREX
TURKEY’S MILITARY TO MOVE INTO SOMALIA AFTER BACKING QATAR IN GULF CRISIS
August 8, 2017 | 0 Comments
Turkey is set to open the largest military camp in Somalia, where locals are battling an Islamist militant group in addition to drought and disease.
Somali Defense Minister Abdirashid Abdullahi Mohamed said the camp would open next month, after two years of construction, and would be equipped to host up to 1,500 troops at one time, making it the largest such facility in the East African nation. The site will be Turkey’s second overseas military installation, following the establishment of a base in Qatar in 2015. Turkey has already offered humanitarian support to Somalia, in which up to 6 million people are reportedly suffering from the effects of drought and an outbreak of cholera; and Ankara has further committed up to 200 soldiers to train and assist local security forces in the battle against Islamist militant group Al-Shabab, an affiliate of Al-Qaeda.
“We will begin deploying soldiers at the facility. Our army and other forces will receive training at the camp,” Mohamed said in a statement, according to Turkey’s official Anadolu Agency.
The base spans one and a half square miles and cost about $40 million to build over the last two years, according to the Mogadishu Center for Research and Studies, which reported a visit to the site by former Defense Minister Abdulkadir Sheikh Dini in March. The base’s opening comes as Somalia struggles with an insurgency by Al-Shabab. Somalia was in chaos after the fall of Somali President Siad Barre’s communist government in 1991; Al-Shabab emerged in 2006 out of the multiple factions contending for power in Barre’s absence.
With international support, Somalia has managed to regain control of major cities, and Somali President Mohamed Abdullahi Mohamed Farmajo vowed the new base would help restore the country’s beleaguered armed forces.
“The largest Turkish military base in the world is almost ready, and the Somali army will soon be strong once again,” he said in March, according to Turkey’s Daily Sabah.
Turkish Ambassador to Somalia Olgan Bekar clarified that the site was “not a military base like the one Turkey has in Qatar,” but “a military training camp,” according to a May interview with TRT World. He stressed that Turkey had “no colonialist policy in Somalia” and that Ankara’s intentions were to rebuild the country’s public institutions ruined during its civil war, its armed forces in particular.
The U.S. also stepped up its involvement in Somalia, with President Donald Trump in March giving the military wider clearance to coordinate with Somali forces and conduct operations. Thursday’s announcement of the camp’s opening coincided with reports that Africa Command had killed top Al-Shabab leader Ali Muhammad Hussein, known as Ali Jabal, in a “successful kinetic strike” Sunday in southern Somalia. After the news broke, at least two people were killed Friday in what appeared to be a car bombing in Mogadishu, according to the Associated Press.
Turkey’s decision to devote troops to Somalia comes after it sentadditional forces to its Qatar military base in June. The tiny, oil-rich peninsula has been targeted by its neighbor, fellow Sunni Muslim monarchy Saudi Arabia, in an international boycott over allegations that Qatar has lent support to Sunni Muslim extremist groups and Shiite Muslim organizations with ties to Iran, Saudi Arabia’s regional rival. Despite Saudi Arabia’s efforts to isolate Qatar, Turkey went ahead with planned drills at the Tariq bin Ziyad military base and sent thousands of tons of food aid to the besieged country.
Women Advancing Africa placing women at the centre stage of Africa’s Economic Advancement
July 28, 2017 | 0 Comments
|The Women Advancing Africa Forum is set to bring some of the continent’s best and brightest minds together to shape a common agenda to accelerate the economic advancement of women in Africa|
DAR ES SALAAM, Tanzania, July 28, 2017/ — The inaugural Women Advancing Africa (WAA) Forum is a new Pan-African flagship initiative launched by the Graça Machel Trust to acknowledge and celebrate the central role women play in shaping Africa’s development agenda and by driving social and economic transformation. The Forum will take place from 9-12 August in Dar-es-Salaam, Tanzania at the Hyatt Kilimanjaro.
Africa is in a second liberation era – the economic liberation. Women can no longer be secondary or marginal, and through Women Advancing Africa the Trust wants to enable women to take centre stage in the economic advancement of Africa. The Trust is establishing a platform for women to claim their right to sit at the table where the decisions are made and to shape the policies, plans and strategies for our futures and those of the generations to come.”
The Trust is honoured to have H.E. Samia Suluhu Hassan, Vice-President of the United Republic of Tanzania and member of the UN Secretary-General’s High-Level Panel on Women’s Economic Empowerment join the WAA Forum to share her insights on issues that will be discussed over the four days. The Forum will consist of interactive sessions organised around three core pillars: Financial Inclusion, Market Access and Social Change.
With an estimated attendance of 200 participants from across the continent, the WAA Forum will play host to a diverse mix of women and youth representing thought leaders and influencers from the private sector, philanthropy, academia, civil society, government, development agencies and the media who will bring their voices, experiences and ideas to strategize, set priorities and craft a common agenda to drive Africa’s social and economic transformation.
A Social Progress Agenda
We are honoured to be joined by Gertrude Mongella, former President of the Pan African Parliament who will be joined by some of Africa’s leading women giants who have shaped the women’s movement in the past and will bring legacy and the future face to face in a gathering at the side of the Forum.
The WAA Forum will also celebrate the diversity of African culture and creativity in all its forms, from language, to design and fashion, to movie making and dance. This year’s Forum will celebrate African female writers and storytellers who are challenging the status quo, reshaping narratives and developing a deeper understanding and appreciation of the creative industries and their role in driving social progress.
Research looking at the Narrative and Economic participation of Women in Africa
The Graça Machel Trust’s Women in Media Network will also launch a research report on the coverage and portrayal of women in media entitled: “Women in Media – What is the Narrative?” The session will be broadcast as a Facebook Live event with interactive participation in the post launch In Conversation series to stimulate a broader conversation about the narrative of women in media as well as other storytelling formats and platforms.
Announcements will be made on the WAA website www.WomenAdvancingAfrica and the WAA Facebook page www.Women Advancing Africa – WAA, closer to the time.
A movement of women focused on economic advancement
The Trust would like to thank our generous partners who have helped make our vision a reality. Special thanks to The UPS Foundation, the Intel Foundation, American Tower Corporation, and UN Women. Media partners include: the ABN360 Group, incorporating CNBC Africa and Forbes Africa; the Nation Group and locally based Azam Media Group. The WAA Forum’s convening partner, APCO Worldwide has worked closely with the Graça Machel Trust, providing expertise and insights to develop this one-of-a-kind women’s network. These partners share the Trust’s belief that advancing women economically is crucial to the health and prosperity of African families, communities and nations.
The Graça Machel Trust is an organisation that works across the continent to drive positive change across women’s and children’s rights, as well as governance and leadership. Through our support of local initiatives and connecting key stakeholders at a regional, national and sub-national level, we help to catalyse action where it is needed. By using our convening power the Trust seeks to: amplify the voices of women and children in Africa; influence governance; promote women’s contributions and leadership in the economic social and political development of Africa.
The Network of African Business Women (NABW) provides women with opportunities to freely and effectively participate in the economic development of their countries through the establishment of sustainable business ventures. Through training, mentorship and capacity building, the Network supports business women’s associations and existing business women generating a much needed upsurge of growth-oriented, African women entrepreneurs.
The African Women in Agribusiness Network (AWAB) addresses challenges in food security and identifies opportunities for women in the agricultural sector. The network advocates for initiatives that enhance women’s competitiveness in local and global markets. AWAB also seeks to foster market linkages for women, connecting them to projects in the agricultural sector that can improve their access to resources, knowledge and training.
New Faces New Voices (NFNV)
New Faces New Voices (NFNV) advocates for women’s access to finance and financial services. The network aims to bridge the funding gap in financing women-owned businesses in Africa and to lobby for policy and legislative changes. The overall objective of the network is to advance the financial inclusion of women by bringing more women into the formal financial system.
The Women in Media Network (WIMN) is the latest Pan-African network established by the Trust. It comprises a network of African women journalists who individually and collectively use their influence and voice to help shape and disseminate empowering storylines about Africa’s women and children.
Founded in 1984, APCO Worldwide is an independent global communication, stakeholder engagement and business strategy firm with offices in more than 30 major cities throughout the world. We challenge conventional thinking and inspire movements to help our clients succeed in an ever-changing world. Stakeholders are at the core of all we do. We turn the insights that come from our deep stakeholder relationships into forward-looking, creative solutions that always push the boundaries. APCO clients include large multinational companies, trade associations, governments, NGOs and educational institutions. The firm is a majority women-owned business
China focuses on its military footprint in Africa, setting stage for new rivalry with West
July 14, 2017 | 0 Comments
By Fabio Scala*
While the United States is scaling back its international positions amid a significant reduction in State Department’s budget that will affect international aid, another superpower, China, is working to substantially increase its international engagement.
For years China has been spending enormous sums of money buying political influence, including in Africa. But China is now revving up its military engine, looking to step up where opportunities allow it amid an uncertain commitment from the West.
One of China’s top geographical priorities is Africa. This is because Beijing sees an opening, as Africa is being neglected by both Europe and the United States. For the West, the continent is always analyzed through the lenses of illegal migration, terrorism, and the extraction industry. The continent is largely seen first as a source of problems, and rarely an opportunity. China too has been focusing on natural resource acquisition, but it has also committed investments and manpower to build infrastructure and export its technical capabilities to its African partners. As these investments expand, Beijing is now seeking to protect the billions it already committed in the continent by flexing its military muscles.
The Chinese military has been on overdrive these past days. In the Mediterranean, on the northern tip of the African continent, the Chinese navy is conducted live-firing drills this week. It committed a destroyer, a frigate and a support ship in drills that took place on July 10. The group is headed next to Russia, where it will join its Russian counterpart in St. Petersburg and Kaliningrad to perform joint exercises.
This week also, China is inaugurating its military base in the strategically located Djibouti, a country transformed into an open military fortress for many foreign forces, include those of France, Italy, Japan, the Unite States, and soon Turkey and Saudi Arabia. China argues that its Djibouti presence will be for peacekeeping and humanitarian aid in Africa, but rivalry with the US and the protection of Chinese assets and investments in East Africa, and elsewhere in the continent are critical drivers to China’s military focus there. This week, several navy ships left the port city of Zhanjiang in China’s southern Guangdong province, headed to the small port of Obock, in the of the Gulf of Tadjoura, Djibouti. The port is linked to the Gulf of Aden, allowing it easy reach to the troubled Middle East.
China’s presence in Africa is pretty ubiquitous, and that includes the Southern Africa region too. Also this week, the Chinese military made a symbolic gesture to Mozambique when it pledged $18 million to build new Mozambican Armed Forces barracks in Maputo. The gesture is symbolic indeed, but there are major implications on the long run in the aftermath of the high-profile visit of Chang Wanquan, the Chinese Defense Minister to Maputo. During the visit, the two parties highlighted China’s commitment to training Mozambican soldiers, but they are also planning a Chinese involvement in military infrastructure and logistics.
This Chinese charm offensive in Mozambique is taking place as the Southern African country has witnessed a reduction of aid from Western donors amid a major financial scandal that has rocked Mozambique. But it is also happening as Mozambique prepares to produce a significant amount of gas from the northern Rovuma basin, off the coast of Cabo Delgado. Although symbolic for now, the Chinese investment in Mozambique is likely to accelerate in the near future, and that would include a growing military presence to protect such investments.
China’s interest in Africa is no secret. It begun years ago and in 2015, its leadership renewed their commitment to Africa with pledged investment of $60 billion going forward. China’s footprint can be found in many places across the continent, making it the continent’s biggest economic partner, surpassing by far the colonial powers, who have been neglecting the continent. The Chinese presence can be found in sectors like highways and railways, ports and housing. It is also in engineering and energy, in places like Djibouti, Ethiopia, Angola, Nigeria, Tanzania, Zambia and of course North Africa. The Chinese engagement is now expanding into the military world, and that could create the next area of conflict in the world, post-Daesh.
*The North Africa Journal