General
Nigeria Ranks 34 in Digital Readiness of Emerging Markets
By Adedapo Adesanya
Nigeria has ranked 34 in the index of emerging markets in digital readiness, according to the 2022 Agility Emerging Markets Logistics Index, a ranking of the world’s 50 leading emerging markets.
The digital readiness of emerging markets index showed that leading African economies that have struggled to improve their infrastructure, business conditions and overall competitiveness are generally performing better against other emerging markets in areas that measure their digital skills and sustainability.
The index, now in its 13th year, surveys 756 supply chain industry professionals and ranks countries for overall competitiveness based on their logistics strengths, business climates and, for the first time, their digital readiness – all factors that make them attractive to logistics providers, freight forwarders, air and ocean carriers, distributors and investors.
Digital readiness assesses digital skills, training, Internet access, e-commerce growth, investment climate, and ability to nurture startups, as well as sustainability factors such as renewable energy mix, lower emissions intensity and green initiatives.
Kenya ranks 17th in digital readiness, South Africa, 21st in and Ghana is 23rd in digital readiness.
The importance of digital readiness was apparent in the survey. Logistics executives identified the adoption of technology as the leading driver of economic and business growth for emerging markets. The top focus areas for their companies: are technology and sustainability.
In addition to performing relatively well in digital readiness, Ghana improved its year-to-year rankings in international logistics infrastructure (to 37th from 45th); domestic logistics infrastructure (to 36th from 38th); and business fundamentals (to 28th from 32nd).
In the report, most logistics industry executives see moderate-to-strong economic growth and little or no chance of a recession in 2022, even without immediate relief from the snarled supply chains and sky-high ocean and air freight rates triggered by the COVID-19 pandemic.
Roughly two-thirds of the 756 industry professionals surveyed for the Index believe shippers will see cargo rates come down by the end of the year. Eighty per cent see port bottlenecks, air capacity shortages and trucking issues easing by year-end.
China and India, the world’s two largest countries, held their spots at No. 1 and 2 in the overall rankings. UAE, Malaysia, Indonesia, Saudi Arabia, Qatar, Thailand, Mexico and Turkey rounded out the top 10.
Powerhouse exporters China, India and Mexico topped the rankings for international logistics. China, India and Indonesia ranked highest for domestic logistics.
Overall Index rankings for Latin America: Mexico (9), Chile (12), Brazil (16), Uruguay (23), Colombia (25), Peru (26), Argentina, (31), Ecuador (38), Paraguay (41), Bolivia (44), Venezuela (48).
In the Middle East and North Africa, rankings were: UAE (3), Saudi Arabia (6), Qatar (7), Turkey (10), Oman (14), Bahrain (15), Kuwait (17), Jordan (19), Morocco (20), Egypt (21), Iran (30), Lebanon (35), Tunisia (36), Algeria (37), Libya (50).
Rankings in Asia: China (1), India (2), Malaysia (4), Indonesia (5), Thailand (8), Vietnam (11), Philippines (18), Kazakhstan (22), Pakistan (27), Sri Lanka (33), Bangladesh (39), Cambodia (40), Myanmar (49).
Speaking on this, Mr Tarek Sultan, the chief executive officer, Agility said, “The connection between a country’s digital capabilities and growth prospects is undeniable.
“The competitiveness of emerging markets countries will be determined by their ability to develop digitally skilled businesses and talent pools and find the resolve to lower their emissions in ways that spur growth rather than sacrificing it.
“The industry’s optimism reflects the fact that emerging economies are getting more resilient and figuring out ways to weather supply chain disruption.
“If emerging markets can get better access to vaccines and give small business a boost, they can help power a broad, dynamic global recovery.”
On his part, Mr John Manners-Bell, Chief Executive of Ti – which compiled the index said: “How quickly emerging markets recover from the crisis of the last two years is heavily reliant on the speed of the vaccine rollout, not least from the perspective of social, economic and political cohesion.
“At the same time, the links connecting these economies with western markets need to be reinstated if shippers are to be integrated back into the global trading system.
“COVID has meant that shipping has become even more costly, complicated and slower, especially for small and medium-sized businesses. Digitization will play an important role in facilitating frictionless cross-border movements, but in the long run, the benefits of globalization will only be shared with emerging markets if supply chains and logistics can be made more resilient in the face of future crises.”
General
Swedfund Puts Down €40m for Green Projects in Africa, Others
By Modupe Gbadeyanka
About €40 million has been committed by Sweden’s development finance institution, Swedfund, to address infrastructure gaps in Africa, the Levant and South and Southeast Asia.
The money will be disbursed through the Emerging Africa & Asia Infrastructure Fund (EAAIF), a company of the Private Infrastructure Development Group (PIDG), managed by Ninety One, a statement from Swedfund said.
Swedfund’s investment will focus on climate-resilient infrastructure projects that support adaptation, facilitates net-zero transitions, and enhances digital connectivity.
Where appropriate, these projects will receive PIDG’s technical assistance, which focuses on building resilience in underserved communities to enhance positive gender, inclusion, climate and nature outcomes.
Swedfund said it aims to challenge risk perceptions around African infrastructure investments, build confidence and help mobilise private capital. This is essential to close the financing gap and build capital markets to achieve better environmental and social impact.
Africa is the most energy-deficient continent, home to 75 per cent of the global population lacking access to electricity.
In Asia and the Pacific, over 350 million people have limited electricity access, while 150 million lack it entirely, according to the Asian Development Bank.
This deficit extends beyond energy, hindering digital connectivity and limiting access to essential products and services in South Asia and sub-Saharan Africa, the least connected regions in the world.
EAAIF supports improving access to low-carbon infrastructure and taking action on both mitigation and adaptation to accelerate African and Asian industrialisation and close the energy access gap, whilst supporting the global transition to net zero.
“The impact from Swedfund’s commitment will be felt for decades, allowing us to deliver climate-resilient, inclusive infrastructure projects that transform economies and improve lives in Africa and Asia.
“Moreover, the affect is felt by people and businesses far beyond the original project location. Quality infrastructure enables people and businesses to plan for the future with confidence,” the Co-Head of Emerging Market Alternative Credit for Ninety One, Martijn Proos stated.
Since 2001, the EAAIF has provided patient debt capital for a geographically and sectorally diversified portfolio of high impact infrastructure projects in Africa and Asia worth more than $2.5 billion.
General
FG Targets $15bn Power Sector Investment, Cheaper Energy Units
By Adedapo Adesanya
The federal government is taking bold steps to revive its faltering power sector, aiming to attract $15 billion in private investments to bridge a $23 billion funding gap, according to Bloomberg.
The initiative revealed at the ongoing World Bank Energy Summit in Tanzania, aims to tackle the country’s electricity crisis and provide power to 86 million Nigerians currently living without access to electricity.
As part of the plan, households will receive a subsidized 50 kilowatt hours (kWh) of electricity monthly, either through direct consumption or vouchers.
The Bola Tinubu led government outlined a plan that combines higher electricity tariffs with fresh subsidies to ease the burden on households.
Under the proposal, the 50 kilowatt hours of subsidized electricity monthly, is part of strategy to make electricity more accessible and affordable for millions of Nigerians
Despite being Africa’s top natural gas producer with abundant hydro and solar resources, Nigeria generates around 13,000 megawatts of electricity for over 200 million people.
The plan also seeks to double the number of households connected to the grid annually and boost renewable energy from 22 per cent to 50 per cent of the generation mix within five years.
With the removal of electricity subsidies for about 15 per cent of urban households last year, this tripled tariffs as Nigeria paid around N2.2 trillion on subsidies last year alone.
The new plan aims to implement full-cost tariffs by 2027 while providing a buffer for vulnerable households.
However, a buffer mechanism will be introduced to protect vulnerable households from the full impact of higher tariffs.
General
NEITI, EFCC to Recover $6bn, N66bn from Oil Stakeholders
By Adedapo Adesanya
Plans are underway to recover $6 billion and an additional N66 billion owed to the federal government by oil stakeholders.
This was disclosed by the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), Mr Ogbonnaya Orji, in Abuja at the 2025 budget defence session organised by the House of Representatives Committee on Petroleum Resources (Upstream).
According to the group, over $3.7 billion was recovered into the government’s coffers as outstanding liabilities from companies operating in the oil sector.
NEITI is also collaborating with the Economic and Financial Crimes Commission (EFCC) to recover the funds into government coffers, according to Mr Orji.
He explained that NEITI was established to promote transparency and accountability in the Nigerian oil and gas, as well as the mining sector.
Mr Orji also said the agency had been allocated a budget of N6.5 billion for the 2025 financial year, comprising N2.220 billion for personnel, N1.722 billion for overhead, and N2.575 billion for capital projects.
He outlined some of the critical activities to be undertaken in the year, including conducting industry reports on the oil, gas, and mining sectors, as well as fiscal allocation and statutory disbursement audits.
He added that research studies would be conducted on the actual volume of PMS consumed in Nigeria.
According to him, it will also indicate the economic impact of energy transition and a national perception survey of EITI implementation in Nigeria.
During the budget defence session, Mrs Kafilat Ogbara emphasised the need for government agencies to ensure that their budget proposals comply with the specified line items.
She expressed concern over the N32 million allocated for meals in the 2025 budget, stating that it was excessive, especially during a time of economic hardship.
“Most of our agencies should ensure that what they are bringing as budget proposal must tally with the line item and the purpose why you want to use such funds.
“Let us not just see budget defence as ‘the money is there and we should share it. So, let us see how to get our own share’,” she said.
On his part, Mr Ademorin Kuye also stressed the importance of considering the economic situation in the country when preparing the annual budget.
He noted that the public perceives the National Assembly as a rubber stamp that approves anything presented by government agencies.
The Chairman of the Committee, Mr Alhassan Doguwa, faulted the language used in the budget preparation.
He also faulted the inclusion of the National Assembly as a beneficiary of the agency’s welfare package, assuring the committee’s readiness to support the agency in actualising its mandate.
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