Economy
Absa’s Expanding Role in Africa’s Post-Pandemic Recovery Race
The race to rebuild the global economy after the lockdowns is gathering pace. The spike in inflationary trends, disturbing food insecurity levels, failing channel management systems, the sharp increase in the number of businesses going bust, and alarming infrastructure deficit form the recent consequences of the COVID-19 outbreak.
Hence, development agencies and state economic managers on global and regional scales have sprung into action to revive the hailing economies. Recovery aids, financing instruments are being sourced to balance up the intervention policies developed across markets to stimulate quick recovery from the various shocks of the viral outbreak.
Africa, home to over 1.2 billion people, is striving hard to meet its obligations of catering to the food needs of the burgeoning population as well as closing the massive infrastructure deficit evidenced by the inconsistent supplies of electricity, decaying road transport systems, low internet penetration level, growing unemployment rate and faulty municipalities across its 30.3 million km2 surface areas.
According to the German Institute for Global and Area Studies (GIGA), the lockdown rules that were implemented across the African continent led to drastic short-term income losses for informal workers as very few of the workers had access to social security protection. Foreign direct investment (FDI) also dropped drastically as trade declined dramatically on the continent while the government capacity to keep the economy active ebbed leaving little or no means of support for the state managers.
A swift rebound from the deep deficits on the continent would require strong public-private partnerships on a socioeconomic level. The private sector which provides as much as 90% of the employment in the economies and plays active roles in implementing key growth policies are a strong driver of national and regional economic agenda. It is hard to imagine a faster post lockdown recovery on a large scale without effectively engaging the private sectors.
Absa, a pan Africa financial institution is spearheading the private sector’s interventions to stimulate swifter recovery in trade, investment and infrastructure development. The bank is deploying its wider operating capability, well-tailored offerings and experience on a global scale to support the various post lockdown recovery efforts embarked upon by some state actors.
One of the recent moves made by Absa to shore up efforts to rebuild the African economy is a collaborative agreement with Proparco, a French development finance institute, to help corporate SMEs recover from the lockdown’s shocks.
The collaborative economic support agreement aims to source and disburse $20 million to SMEs operating in sectors such as construction, manufacturing, tourism, retail, which have been badly hit by the Covid-19 crisis especially in South Africa.
By helping the SMEs segment stay afloat through the provision of accessible loan instruments, Absa is addressing a critical issue on the continent.
Of course, the African SMEs segment played a significant role in the continent’s impressive 5% average growth in the past decade. The segment has been a fitting lever pulled to attract investment to the continent over the years. It also topped other segments in generating employment for the population and tax revenue for various governments.
Therefore, by providing a support framework for the segment through collaborative efforts, Absa is leveraging its impressive developmental network to strengthen a key locus of economic recovery in the post-lockdown operating environment.
Speaking about the collaborative agreement between Proparco and Absa, Parin Gokaldas, Group Treasurer at Absa, said, “The agreement further enables Absa to provide financial support to corporate SMEs, a vital component of the local economy, as it recovers from the impact of the Covid-19 pandemic. We are particularly pleased with the agreement as we view the relationship with Proparco, a significant development finance institution in Africa, as strategically important.”
For Emmanuel Haye, deputy head of the Financial Institutions Debt Group, covering Africa and the Middle East, at Proparco: “…We are delighted to start this partnership with Absa Bank, a key player with a strong pan-African presence and to be part of a much-needed counter-cyclical role.”
In the same vein, Absa was recently involved in raising a $400 million syndicated loan for the Africa Finance Corporation (AFC), a leading infrastructure solutions provider, which targets critical infrastructure development on the continent. The pan African bank, through its Corporate and Investment Banking division, along with a few other global banks, acted as a bookrunner and mandated lead arranger to help the AFC secure the development loan.
The involvement in the syndicate loan arrangement to boost infrastructure development in Africa is another significant intervention effort that speaks to the development focus of the bank.
Banji Fehintola, Senior Director & Treasurer at the AFC, explained, “This loan will be instrumental in working towards plugging the infrastructure gap we are facing on this continent, especially following the damaging effects of the Covid-19 pandemic. We remain committed to partnering with experienced, like-minded organizations to provide sustainable finance for infrastructure development in Africa while achieving the lowest borrowing costs of any institution on the continent.”
Precisely, robust investment in infrastructure development enables trade and creates a vibrant environment that powers businesses. It provides millions of jobs each year in building and maintenance for the local population.
According to a statement released by the AFC recently, the syndicated loan will support Africa’s post-pandemic recovery “through critical development of infrastructure”. Africa no doubt is in need of strong infrastructure development support in raising the standards of road and freight networks, broadband penetration levels, and the upgrading of the continent’s electric power facilities.
Sadiq Abu, Chief Executive Officer, AbsaNigeria said, “As a pan-African financial institution committed to deepen growth and create shared value, Absa is consistently deploying its vast knowledge of the operating environment to support both public and private development actors in stimulating faster post-lockdown economic recovery on the continent.”
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited returned to winning ways on Tuesday after it closed higher by 2.30 per cent amid cautious trading.
Yesterday, investor sentiment at the Nigerian stock market was weak after finishing with 37 price gainers and 40 price losers, indicating a negative market breadth index.
It was observed that the industrial goods sector rose by 4.86 per cent, the energy index appreciated by 4.66 per cent, and the consumer goods segment soared by 2.74 per cent. They offset the 1.38 per cent loss recorded by the banking counter and the 0.20 per cent decline printed by the insurance sector.
At the close of business, the All-Share Index (ASI) was up by 5,137.90 points to 228,740.19 points from 223,602.29 points, and the market capitalisation went up by N3.308 trillion to N147.278 trillion from N143.970 trillion.
The trio of FTN Cocoa, Industrial and Medical Gases, and Lafarge Africa gained 10.00 per cent each to sell for N5.50, N39.60, and N324.50, respectively, while Austin Laz grew by 9.71 per cent to N3.73, and Aradel Holdings jumped 9.52 per cent to N1,840.00.
On the flip side, UBA lost 10.00 per cent trade at N44.55, Trans-Nationwide Express slipped by 9.99 per cent to N6.40, NASCON crashed by 9.18 per cent to N187.90, Jaiz Bank depreciated by 8.93 per cent to N8.01, and Berger Paints crumbled by 8.66 per cent to N68.00.
Yesterday, market participants traded 908.0 million equities valued at N68.2 billion in 72,886 deals compared with the 678.2 million equities worth N44.1 billion transacted in 82,838 deals on Monday, showing a drop in the number of deals by 12.01 per cent, and a spike in the trading volume and value by 33.88 per cent and 54.65 per cent, respectively.
By Adedapo Adesanya
Nigeria’s oil production recorded a five-year high of 1.71 million barrels per day, marking a significant rebound for the country’s upstream sector amid renewed efforts to restore output and improve operational stability.
The latest figure, released by Nigerian National Petroleum Company (NNPC) Limited, covers the period from April 2025 to April 2026 and underscores a steady recovery in crude production after years of disruptions caused by theft, pipeline vandalism and underinvestment.
According to the chief executive of the national oil company, Mr Bayo Ojulari, the performance reflects measurable progress across the company’s upstream, gas and downstream operations, with production gains supported by improved asset management and stronger field performance.
Within its exploration and production business, NNPC recorded a peak daily output of 365,000 barrels in December 2025, the highest level ever achieved by its upstream subsidiary. The company also advanced key contractual reforms, including revised production-sharing terms for deepwater assets aimed at unlocking additional gas reserves.
Nigeria’s gas ambitions are also gaining traction. Gas supply rose to 7.5 billion standard cubic feet per day in 2025, driven by major infrastructure milestones such as the River Niger crossing on the Ajaokuta-Kaduna-Kano pipeline and the commissioning of the Assa North-Ohaji South gas processing plant.
These investments are beginning to strengthen domestic gas utilisation. New supply agreements with major industrial consumers, including Dangote Refinery, Dangote Fertiliser and Dangote Cement, are expected to deepen gas penetration across manufacturing and power generation.
On the downstream front, NNPC has continued crude supply to Dangote Refinery under the crude-for-naira arrangement, a policy designed to reduce foreign exchange demand, support local refining and improve fuel market stability. The company also reaffirmed its 7.25 per cent equity stake in the refinery as part of its long-term energy security strategy.
Financially, the national oil company said it has resumed full monthly remittances to the Federation Account since July 2025. It has also reinstated regular performance reporting and held its first earnings call, moves widely seen as part of a broader push towards greater transparency and corporate accountability.
Despite the progress, challenges remain. Crude theft, pipeline outages and infrastructure bottlenecks continue to threaten production stability. Sustaining this recovery will depend on stronger security, reliable infrastructure and policy consistency as Nigeria seeks to maximise the benefits of rising domestic refining capacity.
By Adedapo Adesanya
The United Arab Emirates has announced its decision to quit the Organisation of the Petroleum Exporting Countries (OPEC) to focus on national interests.
This dealt a heavy blow to the oil-exporting group at a time when the US-Israel war on Iran had caused a historic energy shock and rattled the global economy.
The move, which will take effect on May 1, 2026, reflects “the UAE’s long-term strategic and economic vision and evolving energy profile”, a statement carried by state media said on Tuesday.
“During our time in the organisation, we made significant contributions and even greater sacrifices for the benefit of all,” it added. “However, the time has come to focus our efforts on what our national interest dictates.”
The loss of the UAE, a longstanding OPEC member, could create disarray and weaken the oil cartel, which has usually sought to show a united front despite internal disagreements over a range of issues from geopolitics to production quotas.
UAE Energy Minister Suhail Mohamed al-Mazrouei said the decision was taken after a careful look at the regional power’s energy strategies.
“This is a policy decision. It has been done after a careful look at current and future policies related to the level of production,” the minister said.
OPEC’s Gulf producers have already been struggling to ship exports through the Strait of Hormuz, a narrow chokepoint between Iran and Oman through which a fifth of the world’s crude oil and liquefied natural gas supplies normally pass, because of threats and attacks against vessels during the war.
The UAE had been a member of OPEC first through its emirate of Abu Dhabi in 1967 and later when it became its own country in 1971.
The oil cartel, based in Vienna, has seen some of its market power wane as the US has increased its production of crude oil in recent years.
Additionally, the UAE and Saudi Arabia have increasingly competed over economic issues and regional politics, particularly in the Red Sea area.
The two countries had joined a coalition to fight against Yemen’s Iran-backed Houthis in 2015. However, that coalition broke down into recriminations in late December when Saudi Arabia bombed what it described as a weapons shipment bound for Yemeni separatists backed by the UAE.
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