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
The United Kingdom via the British High Commission in Abuja has launched two flagship economic reform programmes – the Nigeria Economic Stability & Transformation (NEST) programme and the Nigeria Public Finance Facility (NPFF) -as part of efforts to support Nigeria’s economic reform and growth agenda.
Backed by a £12.4 million UK investment, NEST and NPFF sit at the centre of the UK-Nigeria mutual growth partnership and support Nigeria’s efforts to strengthen macroeconomic stability, improve fiscal resilience, and create a more competitive environment for investment and private-sector growth.
Speaking at the launch, Cynthia Rowe, Head of Development Cooperation at the British High Commission in Abuja, said, “These two programmes sit at the heart of our economic development cooperation with Nigeria. They reflect a shared commitment to strengthening the fundamentals that matter most for our stability, confidence, and long-term growth.”
The launch followed the inaugural meeting of the Joint UK-Nigeria Steering Committee, which endorsed the approach of both programmes and confirmed strong alignment between the UK and Nigeria on priority areas for delivery.
Representing the Government of Nigeria, Special Adviser to the President of Nigeria on Finance and the Economy, Mrs Sanyade Okoli, welcomed the collaboration, touting it as crucial to current, critical reforms.
“We welcome the United Kingdom’s support through these new programmes as a strong demonstration of our shared commitment to Nigeria’s economic stability and long-term prosperity. At a time when we are implementing critical reforms to strengthen fiscal resilience, improve macroeconomic stability, and unlock inclusive growth, this partnership will provide valuable technical support. Together, we are laying the foundation for a more resilient economy that delivers sustainable development and improved livelihoods for all Nigerians.”
On his part, Mr Jonny Baxter, British Deputy High Commissioner in Lagos, highlighted the significance of the programmes within the wider UK-Nigeria mutual growth partnership.
“NEST and NPFF are central to our shared approach to strengthening the foundations that underpin long-term economic prosperity. They sit firmly within the UK-Nigeria mutual growth partnership.”
By Aduragbemi Omiyale
A strategic partnership aimed at accelerating the growth, digital capacity, and sustainability of Nigeria’s 40 million Micro, Small and Medium Enterprises (MSMEs) has been signed by MTN Nigeria and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
The collaboration will feature joint initiatives focused on digital inclusion, financial access, capacity building, and providing verified information for MSMEs.
With millions of small businesses depending on accurate guidance and easy-to-access support, MTN and SMEDAN say their shared platform will address gaps in communication, misinformation, and access to opportunities.
At the formal signing of the Memorandum of Understanding (MoU) on Thursday, November 27, 2025, in Lagos, the stage was set for the immediate roll-out of tools, content, and resources that will support MSMEs nationwide.
The chief operating officer of MTN Nigeria, Mr Ayham Moussa, reiterated the company’s commitment to supporting Nigeria’s economic development, stating that MSMEs are the lifeline of Nigeria’s economy.
“SMEs are the backbone of the economy and the backbone of employment in Nigeria. We are delighted to power SMEDAN’s platform and provide tools that help MSMEs reach customers, obtain funding, and access wider markets. This collaboration serves both our business and social development objectives,” he stated.
Also, the Chief Enterprise Business Officer of MTN Nigeria, Ms Lynda Saint-Nwafor, described the MoU as a tool to “meet SMEs at the point of their needs,” noting that nano, micro, small, and medium businesses each require different resources to scale.
“Some SMEs need guidance, some need resources; others need opportunities or workforce support. This platform allows them to access whatever they need. We are committed to identifying opportunities across financial inclusion, digital inclusion, and capacity building that help SMEs to scale,” she noted.
Also commenting, the Director General of SMEDAN, Mr Charles Odii, emphasised the significance of the collaboration, noting that the agency cannot meet its mandate without leveraging technology and private-sector expertise.
“We have approximately 40 million MSMEs in Nigeria, and only about 400 SMEDAN staff. We cannot fulfil our mandate without technology, data, and strong partners.
“MTN already has the infrastructure and tools to support MSMEs from payments to identity, hosting, learning, and more. With this partnership, we are confident we can achieve in a short time what would have taken years,” he disclosed.
Mr Odii highlighted that the SMEDAN-MTN collaboration would support businesses across their growth needs, guided by their four-point GROW model – Guidance, Resources, Opportunities, and Workforce Development.
He added that SMEDAN has already created over 100,000 jobs within its two-year administration and expects the partnership to significantly boost job creation, business expansion, and nationwide enterprise modernisation.
By Adedapo Adesanya
The Nigerian Exchange (NGX) Limited is seeking review of the controversial Capital Gains Tax increase, fearing it will chase away foreign investors from the country’s capital market.
Nigeria’s new tax regime, which takes effect from January 1, 2026, represents one of the most significant changes to Nigeria’s tax system in recent years.
Under the new rules, the flat 10 per cent Capital Gains Tax rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will see the top rate reduced to 25 per cent as part of a wider corporate tax reform.
The chief executive of NGX, Mr Jude Chiemeka, said in a Bloomberg interview in Kigali, Rwanda that there should be a “removal of the capital gains tax completely, or perhaps deferring it for five years.”
According to him, Nigeria, having a higher Capital Gains Tax, will make investors redirect asset allocation to frontier markets and “countries that have less tax.”
“From a capital flow perspective, we should be concerned because all these international portfolio managers that invest across frontier markets will certainly go to where the cost of investing is not so burdensome,” the CEO said, as per Bloomberg. “That is really the angle one will look at it from.”
Meanwhile, the policy has been defended by the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, who noted that the new tax will make investing in the capital market more attractive by reducing risks, promoting fairness, and simplifying compliance.
He noted that the framework allows investors to deduct legitimate costs such as brokerage fees, regulatory charges, realised capital losses, margin interest, and foreign exchange losses directly tied to investments, thereby ensuring that they are not taxed when operating at a loss.
Mr Oyedele also said the reforms introduced a more inclusive approach to taxation by exempting several categories of investors and transactions.
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