General
The Impact of COVID-19 on Finance and Investment in Africa
By Morne van der Merwe and Wildu du Plessis
The Coronavirus (COVID-19) has resulted in mass production shutdowns and supply chain disruptions due to port closures in China, causing global ripple effects across all economic sectors in a rare “twin supply-demand shock”.
With South Africa having just reported its first cases of COVID-19, Africa is beginning to feel its full impact and plans to control and manage the humanitarian challenges of the virus are underway across the continent.
Economically, the effects have already been felt – demand for Africa’s raw materials and commodities in China has declined and Africa’s access to industrial components and manufactured goods from the region has been hampered. This is causing further uncertainty in a continent already grappling with widespread geopolitical and economic instability.
The number of cases is reportedly slowing down in China, increasing expectations that it will eventually reach a plateau and be brought under control. However, in early March the Organisation for Economic Co-operation and Development noted that “annual global GDP growth is projected to drop to 2.4% in 2020 as a whole, from an already weak 2.9% in 2019, with growth possibly even being negative in the first quarter of 2020”, with global markets plunging in the days thereafter.
Although Chinese growth will fall in the short term, it is expected to rebound quickly, some suggesting this could even happen in the second quarter of 2020 when the virus will hopefully be contained. In the meantime, central banks are implementing measures to mitigate the effects of the virus on the economy, cutting interest rates and injecting liquidity into the banking systems in some countries.
In early March, the World Bank announced it would commit $12 billion in aid to developing countries to help them to deal with the impact of the virus and limit its spread.
The bank said it would prioritise the most at-risk countries. The World Bank also introduced a pandemic bond in 2017, which, as part of the Pandemic Emergency Finance Facility intended to provide money to help developing countries in the event of a pandemic reaching certain thresholds and conditions. So far, these criteria have not been met and the bond has not paid out.
Uncertainty regarding the spread of COVID-19 is high and its impact on Africa is expected to be serious, given the continent’s exposure to China. So far, cases have been reported in Algeria, Cameroon, Egypt, Morocco, Nigeria, Senegal, South Africa, Togo and Tunisia. If there is a widespread outbreak of COVID-19 in Africa it could overwhelm already weak healthcare systems in the region.
According to ratings agency, Fitch, the Coronavirus outbreak will have a downside risk for short term growth for sub-Saharan African growth, particularly in Ghana, Angola, Congo, Equatorial Guinea, Zambia, South Africa, Gabon and Nigeria – all countries that export large amounts of commodities to China.
Impact on Merger & Acquisition activity
Africa has come through a period of prolonged political and economic uncertainty, but signs of future economic improvement, were pointing to a modest increase in M&A activity in Africa over the next few years. COVID-19 is likely to hamper this predicted upturn and result in increased short-term uncertainty in terms of how it will affect investment opportunities in Africa, the continent’s productivity and consumer demand.
There are other transactional risks. If the virus spreads rapidly in Africa, countries might have to introduce similar measures to those taken in China where areas were locked down, factories were shut, quarantines enforced and travel bans imposed.
As such, these events could potentially be significant enough to trigger a change to the terms of an M&A transaction currently in progress, and deals could be delayed as a result. COVID-19 conditions could also cause delays to M&A due diligence, necessary for a transaction to progress to finalisation. Further, the virus could qualify as a force majeure event causing more delays or terminations.
We are hopeful the rebound from COVID-19 will coincide with the implementation of the African Continental Free Trade Area (AfCFTA) in July 2020, which should provide an additional boost to deal activity in Africa the coming years. The AfCFTA is the first continent-wide African trade agreement, with the potential to facilitate and harmonise trade and infrastructure development in Africa. This boost to the investment environment will be welcome after the additional uncertainty of dealing with COVID-19 impacts.
Impact on Capital raising and IPOs
African issuers have been waiting several years for an improvement to political and economic instability in Africa before going ahead with any planned capital raising. As a case in point, Baker McKenzie’s Global Transactions Forecast showed that there were no IPOs in South Africa in 2019.
Also eroding investor confidence were the numerous global trade tensions, with capital raisers watching for signs of resolution before launching IPOs. With Africa looking to benefit from new global and regional trade agreements, the forecasts had been pointing to a potential recovery in capital markets in the next few years, but this might be delayed as the uncertainty around the impact of COVID-19 in Africa reaches its peak.
IPOs in the region are therefore expected to decline, not directly because of the virus as is the case with equities, but because COVID-19 will have an effect on the underlying business case for IPO companies, which will impact on their ability to raise capital
Impact on financial institutions
Global financial institutions are currently assessing the impact of COVID-19 and reacting to its economic impact, ensuring they are able to adjust to new and unprecedented circumstances brought about by the virus. It remains to be seen whether the huge global economic downturn caused by decreased output in China will impact on African lenders and compel financial institutions on the continent to be more lenient towards borrowers and cut them some slack.
Impact on Local Markets
Since global economic growth is a key driver of commodity prices, local prices have been driven down by the virus’s global impact. The uncertainty of the impact of COVID-19 on local markets is expected to lead to increased risk aversion from investors who are waiting to see its potential impact in Africa. On the plus side, a temporary fall in share prices provides opportunities for prudent investors.
Impact of the Insurance sector
Both businesses and individuals in Africa might find they are uninsured for any COVID-19 impacts as losses related to an epidemic or pandemic would usually not be covered in insurance policies, irrespective of whether the insurance covers business interruption, property damage, product losses or personal life and non-life insurance or even travel insurance.
As COVID-19 is a new disease, it would not have been specifically listed in existing insurance contracts. Many business interruption policies will include clauses for extended damage, but it is unlikely that these extensions will provide coverage under the current circumstances. As such, the wording of policies should be carefully checked.
Some insurance companies who provide cancelled event coverage that specifically includes references to epidemics or pandemics could be impacted. Reuters reported that financial services firm Jefferies estimated the insured cost of the Tokyo Olympics to be around USD 2 billion – including television rights, hospitality and sponsorship.
Morne van der Merwe, Managing Partner, and Wildu du Plessis, Head of Africa, Baker McKenzie Johannesburg
If you work in media and have been watching the industry shift around you, faster news cycles, shrinking revenues, AI in the newsroom, the MTN Media Innovation Programme may be exactly the kind of intervention your career needs right now.
Now in its fifth edition and bigger than it has ever been, MIP 2026 is calling for applications. The webinar on April 16 is your best first step.
What Is the MTN Media Innovation Programme?
The MTN Media Innovation Programme (MIP) is a certificate course run by the School of Media and Communication, Pan-Atlantic University, with a focus on the convergence between ICT and the media. It is a fellowship for journalists and media practitioners across the entire spectrum, including social media, designed to help them build capacity at both professional and business levels, delivered over a six-month period.
The programme gives participants skills to create better content, run media businesses, and earn money in a tough industry. It mixes classroom time, international trips, and real-world visits.
This year, the programme crosses a significant milestone. The cohort has been expanded to 25 fellows, up from 20 in previous editions, as a deliberate reflection of MTN Nigeria’s 25-year anniversary.
Tobe Okigbo, Chief Corporate Services and Sustainability Officer at MTN Nigeria, explained the thinking behind it: “The expansion to 25 fellows this year is a deliberate reflection of our 25-year milestone, and a reminder that as the media industry continues to evolve, there is a continued need to invest in the people and ideas that will shape its future.”
MTN is hosting a webinar on April 16 to walk prospective applicants through everything they need to know. Here is why you should be on that call.
- You will understand exactly what MIP is built to do. MIP is designed to increase participants’ knowledge and skill base and help them understand the changing media landscape and how to effectively use technology to create impactful media content. The webinar is your clearest path to grasping that mission before you apply.
- You will learn how to apply correctly, before it is too late. With less than a week between the webinar and the closing date, attendance gives you just enough time to fix mistakes and strengthen your submission before the April 22 deadline.
- You will know for certain whether you qualify. MIP is open to media practitioners and digital content creators across the entire spectrum, including social media. But eligibility has specific requirements. The webinar helps you confirm your fit before you invest time in the application.
- You will understand what the selectors are actually looking for. Shortlisted candidates are reviewed independently based on professional merit, potential impact, and their commitment to the evolution of African media. Knowing this helps you position your application more effectively.
- You will grasp the full scope of the curriculum. Fellows build skills in three main areas: the telecom industry, media innovation, and writing and reporting. Modules cover media entrepreneurship, ethics, fintech, 5G, financial reporting, and more. The webinar will walk you through what that looks like in practice.
- You will learn about the international component. Accepted participants get a seven-day, all-expenses-paid trip to South Africa for special training in Johannesburg, including a day at MTN Nigeria Headquarters and another at MTN Group Headquarters, plus industry visits and tours at an Innovation Hub.
- You will hear what past fellows actually experienced. The alumni speak for themselves. Oloye Ayodele Samuel, CEO of Rock FM Jalingo and a past MIP fellow, described it this way: “This fellowship is a transformative experience that has completely shifted my perspective. From Nigeria to South Africa, the training and conversations have ignited a burning desire to push beyond the status quo. It’s a new future reimagined, and it’s coming soon.”
- You will see the career value of the alumni network. The programme has built a strong alumni network, with participants occupying key roles across media organisations and contributing to public discourse through impactful storytelling. The webinar will show you what that network looks like and what it can open up for growth.
- You will get your questions answered live. A few things sharpen an application like a direct answer to the question you were afraid to ask. A live session removes the guesswork that costs candidates competitive ground.
- You will leave with the momentum to apply actually. Content Strategist and MIP 2 fellow Anu Odubanjo put it plainly: “If you are in the media industry, here is a life-changing opportunity you shouldn’t miss. Being selected as one of the 20 fellows for the second cohort of the fully funded media fellowship out of over 2,500 applications was definitely the highlight of 2023 for me. Truly an unforgettable experience and one I will forever cherish.”
Applications for MIP 2026 are now open.
Application Deadline: April 22, 2026.
Apply here: mtnmip.smc.edu.ng
Have questions? Join the webinar on April 16.
By Adedapo Adesanya
The Nigeria Data Protection Commission (NDPC) has warned that the country faces a significant gap of 480,000 Data Protection Officers (DPOs), in spite of notable progress recorded in the last three years.
The National Commissioner of NDPC, Mr Vincent Olatunji, disclosed the opening of a one-week training for the second cohort of DPOs Training and Certification Programme in Abuja.
Mr Olatunji said there were still shortages even as the number of certified DPOs in Nigeria increased from fewer than 1,000 three years ago to over 10,000, while more than 27,000 professionals now operate within the broader privacy ecosystem.
However, he noted that the gap remained wide due to the increasing number of data controllers and processors in the country.
“We have identified over 500,000 data controllers and processors who require the services of data protection officers.
“At the moment, we have about 10,000 certified DPOs to work in that space.
“The gap of about 480,000 still exists, which underscores the need for sustained capacity building,” he said.
The NDPC boss said the commission was intensifying efforts to bridge the gap through continuous training programmes.
He said the initiative was aimed at positioning Nigeria as a hub for highly skilled and globally competitive data protection professionals in Africa.
“Our goal is to make Nigeria the go-to country when it comes to sourcing qualified data protection officers in Africa.
“The certification we offer meets global standards, enabling practitioners to operate not just locally but in any part of the world,” Mr Olatunji said.
He said the programme would also contribute to job creation within the digital economy, in line with the federal government’s priorities.
On her part, Mrs Tolu Fadipe, the commission’s Head of Research and Development, emphasised the critical role of data protection in the digital economy.
She said that responsible data handling was fundamental to the growth of digital systems and emerging technologies.
“As we move towards a digital economy, data becomes central and protecting that data is essential.
“This training is designed to build competence and ensure organisations comply with the Nigeria Data Protection Act,” she said.
By Modupe Gbadeyanka
The processing of planning permits for property owners in Lagos State is now fully digital, discontinuing manual and semi-digital processes.
The Special Adviser to the Governor on E-GIS and Urban Development, Mr Olajide Abiodun, said the new system is the Electronic Physical Planning Process System (EPPPS).
He described it as a transformative, web-based platform designed to completely modernise the operations of the Ministry of Physical Planning and Urban Development, which is transitioning from legacy, manual systems toward a highly efficient, transparent, and scalable digital framework.
“Lagos State has entered the dawn of a new era in digital processing of Planning Permissions, Authorisations to Commence Construction Works, Stage Certification, amongst other services,” he told newsmen recently.
Mr Abiodun noted that the full automation of the planning permit process commenced on April 1, 2026, stressing that anyone processing planning permits manually from the stated date is engaging in an illegal activity and that all applications must now go through the EPPPS platform exclusively.
The Governor Babajide Sanwo-Olu’s aide added that once one receives planning approvals via EPPPS, the journey is not over. The person should immediately apply for their Authorisation to Commence Construction Works and Stage Certifications through the EPPPS platform, amongst other services, adding that there will be a task force to monitor compliance with this activity.
While updating the citizens on other developments on Urban Development and Land Administration in the State, he said the state government has introduced CAP to further strengthen LASBCA’s capability in ensuring strict building development compliance.
According to him, CAP is a strategic Public-Private Partnership that allows accredited private professionals to work alongside LASBCA in monitoring building projects.
“This helps us ensure strict compliance with the state’s building codes. It will drastically reduce the risk of building collapses while accelerating project delivery. It is a win for safety, a win for the construction industry, and a win for Lagosians,” he said.
The Lagos State Government, in the journey of moving from the built environment to Land Administration, has actively decentralised its services to ease the burden on citizens, announcing that the e-GIS Regional Office in Ikeja has officially commenced operations.
“This is a dedicated, customer-facing hub designed specifically to handle your digitised land administration activities. Citizens will no longer need to travel all the way to Alausa for every land-related inquiry.
“The Ikeja office is fully equipped to serve residents efficiently at the grassroots level, as the Government is assuring that the remaining divisional offices across the state will also commence operations very soon,” he disclosed.
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