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 Adedapo Adesanya
Pathway Advisors Limited has announced its role as Lead Issuing House to a N300 billion Commercial Paper Programme for Pivot Integrated Energy Services Limited, reinforcing its leadership in capital market advisory and energy sector finance.
The transaction was formally concluded with the execution of programme documentation at Capital Club, Victoria Island, Lagos, following the completion of all regulatory and programme clearances. The signing ceremony marked a defining milestone in mobilising large-scale short-term capital for Nigeria’s downstream petroleum sector.
Speaking at the event, the chief executive of Pathway Advisors Limited, Mr Adekunle Alade, emphasised the strategic significance of the Commercial Paper issuance in financing working capital, thereby enabling high-growth energy businesses to scale efficiently and sustainably.
“Nigeria’s downstream energy sector is undergoing a profound transformation, accelerated by the removal of fuel subsidies, the emergence of domestic refining capacity, and rising demand for reliable product supply across the country and the broader West African region.
“Companies like Pivot Integrated Energy Services Limited with a vertically integrated model, a strong track record, and a clear growth mandate are exactly the kind of issuers that the capital markets should be financing,” Mr Alade stated.
“Commercial paper, when structured appropriately, gives operationally strong businesses access to a deep and diverse pool of institutional investors, at tenors and costs that support the working capital intensity of petroleum trading and distribution. This transaction is a testament to what is achievable when credible issuers partner with experienced advisers to access the markets,” he added.
“The successful execution of this programme further affirms Pathway Advisors’ position as a trusted financial advisory and investment banking firm in complex, large-scale capital market transactions,” he stated.
In his comments, the chief executive of Pivot Integrated Energy Services Limited, Mr Babajide Babatope, described the commercial paper programme as a pivotal step in the company’s strategy to expand its supply capacity and strengthen its position as a leading integrated energy provider in Nigeria and West Africa.
“Nigeria’s downstream energy market demands scale, speed, and the right capital structure to compete effectively. This commercial paper programme gives us the financial firepower to support our growing volumes, reinforce our supply chain, and serve our customers with greater reliability across the regions we operate in,” Mr Babatope disclosed.
He noted that Pivot is one of the 20 approved off-takers in the Dangote Refinery PMS Consortium, with a target volume of 300 million litres per quarter, a position that underscores the company’s standing in Nigeria’s post-subsidy energy supply architecture. He added that the CP Programme would also support the company’s accelerating regional push, including active operations in Ghana, where Pivot has delivered over 100,000 MT since April 2025, and a planned entry into Tanzania with deliveries targeted in Q3 of 2026.
Mr Babatope further expressed appreciation to Pathway Advisors and other transaction parties for their professionalism, rigour, and commitment throughout the programme’s execution, and signalled his intention to continue deepening these partnerships as Pivot advances to subsequent phases of growth and financing.
By Adedapo Adesanya
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has secured a $12 billion commitment from South Korea to establish a Skills Acquisition Centre in Abuja, as part of efforts to strengthen entrepreneurship and boost small businesses across Nigeria.
The chief executive of SMEDAN, Mr Charles Odii, disclosed this over the weekend during a road walk and sensitisation campaign at Utako Market in Abuja to commemorate the 2026 World MSME Day.
According to Mr Odii, the proposed facility will provide vocational and entrepreneurial training to young Nigerians and enhance the capacity of Micro, Small and Medium Enterprises (MSMEs).
He said the agency is awaiting the allocation of land by the Federal Capital Territory (FCT) Administration for the project.
“We need land in the FCT to build the Skills Acquisition Centre. If the FCT Administration is unable to provide one, we will use our office premises in Idu, Abuja, because we do not want Nigeria to miss this opportunity offered by the Korean Government to support skills and vocational training,” he said.
As part of activities marking the World MSME Day, Mr Odii also announced the launch of SMEDAN’s N500 million GROW Fund, a zero-interest financing intervention designed to support small businesses across the country.
He explained that the fund would be disbursed to members of registered cooperative societies and business associations to strengthen their enterprises.
According to him, beneficiaries are expected to utilise the funds strictly for business purposes, including expanding working capital, acquiring workspaces and purchasing equipment.
“The funding is meant to support and improve their businesses. It should be used for working capital, workspaces, tools and other productive business needs. Any use outside these objectives will not be encouraged,” he said.
Mr Odii further disclosed that entrepreneurs trained by SMEDAN in Abuja would receive vocational equipment, including washing machines, barbing kits, shoemaking tools and sewing machines, to enable them to become self-reliant.
“We have identified these tools as essential to the businesses of our trainees based on the skills programmes they have undergone,” he added.
The SMEDAN boss stressed that the agency’s interventions are driven by the critical role MSMEs play in Nigeria’s economy.
“Small businesses are the heartbeat of Nigeria’s economy. By providing infrastructure, skills and financing, we are creating an enabling environment for them to grow, thrive and contribute meaningfully to national development,” he said.
Odii also revealed that the National MSME Policy would be reviewed and relaunched in November 2026 to strengthen the sector and improve its contribution to economic growth.
He called on state governments to collaborate with SMEDAN in expanding skills acquisition programmes, creating jobs, reducing poverty and supporting the economic development agenda of President Bola Tinubu’s administration.
By Adedapo Adesanya
The Dangote Petroleum Refinery has purchased two cargoes of crude oil from the United Arab Emirates (UAE), marking its first-ever procurement of Middle Eastern crude as it diversifies its feedstock sources ahead of continuous expansion.
According to a report by S&P Global Commodity Insights, the two cargoes will be the first sourced by the 700,000-barrels-per-day refinery from any Middle Eastern supplier, signalling a shift from its traditional reliance on Nigerian, African, and United States crude grades.
The report said the purchases followed the resumption of oil exports from the Middle East after the United States and Iran reached an interim peace agreement that restored confidence in shipping through the Strait of Hormuz.
The refinery, designed primarily to process Nigeria’s light sweet crude, has increasingly diversified its crude slate as operations ramp up. The company sources crude from Brazil, Equatorial Guinea, Angola, Algeria, and the US, among others.
The refinery and the Nigerian National Petroleum Company (NNPC) Plc had agreed on the supply of between 13 and 15 cargoes of Nigerian crude monthly in Naira, but the volumes often fluctuate. In May, the state oil company allocated seven cargoes to the plant, up from five in previous months.
The chief executive of the Dangote Refinery, Mr David Bird, had previously disclosed that these constraints had compelled the company to seek additional crude sources outside Nigeria.
According to S&P Global, the refinery has been broadening the range of crude grades it processes as part of its ambition to operate as a fully merchant refinery. The report noted that in 2025, about 70 per cent of the refinery’s crude imports came from Nigeria, while 24 per cent originated from the United States.
The report added that the refinery’s expansion plans would further increase its crude requirements. Dangote plans to double the refinery’s processing capacity to 1.4 million barrels per day by the end of 2028, a level that would enable it to process about 80 per cent of Nigeria’s recent crude oil production in a single day.
Business Post understands that since NNPC cargoes are cheaper for the refinery because of lower shipping costs, importation of crude could translate to higher fuel prices, with Nigerians possibly buying as high as N1,300 – N1,400 at the pump.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn