Connect with us

World

Africa’s Debt Still Under Control—AfDB

Published

on

AfDB Nigeria Country office

Treasurer of the African Development Bank (AfDB), Hassatou Diop N’sele, has said Africa remains strong with growing operating revenues and allocable income generated since 2010 reaching $2.5 billion.

In 2018, the bank earned $214 million in allocable income, 48 percent of which has been reinvested in the institution to reinforce reserves and its business growth capacity. The bullish numbers were revealed during the lender’s financial presentation last Thursday, a highlight of the 2019 Annual Meetings of AfDB in Malabo, Equatorial Guinea.

The panel was led by N’sele and Simon Mizrahi, Director of Service Delivery, Performance Management and Results at the Bank.

During the presentation attended by delegates, Governors, Executive Directors and Bank staff, N’Sele noted that the Bank could chart a new path on account of its ability to raise funds on the capital markets. “The amount of infrastructure financing covered by private sector could double if African countries harness the full potential of their capital markets.”

According to N’sele, a number of African countries could save as much $1 billion on a 20-year loan, if they borrow from the African Development Bank, instead of from the Eurobond market, due to preferable lending rates.

Delegates were informed of the Bank’s successful issuance of the first-ever NOK social bond sold in Norway and sealed in 2018.

On debt sustainability, Africa’s debt has increased in recent years “but not to unsustainable levels,” Mizrahi indicated but he pleaded for caution. “We need to continue to generate financing and spur growth without increasing debt.”

Sharing insights on Africa’s path forward, Mizrahi underscored the need to harness the continent’s incredible potential in renewable energy.

Africa is the most vulnerable continent and suffers the most from climate change but “with the right vision, investments and political commitments, Africa can lead a global energy revolution and leapfrog to renewable technologies.  This is why the Bank is putting its money where its mouth is and investing more than any other development Bank in helping the continent transition towards more resilient and sustainable economies,” he concluded.

According to Mizrahi, AfCTA paves the way to the world’s largest free trade area with an integrated market of 1.3 billion consumers.

“This is important because Africa will struggle to be competitive at the global scale, if it continues to operate as 54 fragmented economies. The continent needs to be more integrated, it needs larger economic spaces so that Africa can attract more investors, create more and better jobs, boost internal trade and create continent-wide value chains that are globally competitive.”

The panel moderated by the Victor Oladokun, the Bank’s Director of Communication, noted that AfCFTA is expected to boost cross-border infrastructure, drive competitiveness and make the continent a smaller place by integrating markets.

In her concluding remarks, N’sele expressed the Bank’s appreciation for Canada’s unwavering support to the institution with the recently announced $1.1 billion callable capital. “This will allow to continue to meet our financial ratio” before a decision is made on the 7th General Capital Increase,” she said.

“We are, the continent’s only triple-A rated institution. Our rating means that our bonds are the absolute safest in the world. It gives confidence to investors across the globe that their investment in African Development Bank bonds is secured.”

The discussions included gender issues, especially the Bank’s flagship Affirmative Finance Action for Women in Africa (AFAWA) program, which seeks to mobilize $3 billion to close the financing gender gap for women entrepreneurs.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

World

Mali, Burkina Faso, Niger Slam 0.5% Import Levy on Nigeria, ECOWAS Nations

Published

on

ECOWAS Court

By Adedapo Adesanya

Mali, Burkina Faso and Niger – all under military rule- have announced a new 0.5 per cent levy on imported goods from Nigeria and other Economic Community of West African States (ECOWAS) member-nations.

The development comes as they seek to fund a new three-state union after leaving the larger regional economic bloc, they said in a statement.

Recall that the West African regional bloc, in January, in the spirit of regional solidarity, said they will recognise the national passports of the three countries bearing the ECOWAS logo until further notice and will allow for free trade with the three states under military rule and free movement will happen without visas.

However, the three nations, according to an official statement, said the levy was agreed on Friday and will take effect immediately, noting that it will affect all goods imported from outside the three countries but will not include humanitarian aid.

Funds from the levy would be used to “finance the activities” of the bloc, the group said, without giving details.

The move ends free trade across West Africa, whose states have for decades fallen under the umbrella of the ECOWAS, and highlights the rift between the three states that border the Sahara Desert and influential democracies like Nigeria and Ghana to the south.

The three countries, each ruled by military juntas that came to power through recent coups in 2023, had established the Alliance of Sahel States as a security agreement following their exit from ECOWAS bloc.

Over time, this alliance evolved into an aspiring economic union with plans to promote deeper military and financial integration, including introducing biometric passports.

Last year, the three nations left ECOWAS, citing claims that the bloc had not sufficiently supported them in fighting Islamist insurgencies and addressing insecurity in their countries.

The three countries, which are former colonies of France, have lamented the excesses and involvement of the European country on its affairs and resources. It has since built new relationships with Russia, Turkey, and Iran.

The three Sahelian countries have teamed up to form a separate confederation called the Alliance of Sahel States (AES).

Continue Reading

World

Explainer: Bashkortostan’s Modern Agricultural Technologies and Approaches Useful for Africa

Published

on

Ufa-Africa Agricultural Forum Modern Agricultural Technologies

By Kestér Kenn Klomegâh

The importance of introducing new technologies, the need for adopting innovative approaches as key drivers for the development of agriculture, as well as the need to develop an agricultural insurance system, in the context of climate change and global challenges, dominated discussions during the largest agricultural forum held in Ufa, a city in the Republic of Bashkortostan.

The main plenary session under the unique theme: “Agricultural Export: goals, trends and key development guidelines 2030” was opened by its moderator Louis Gouend, an expert of the Russia-Africa Cooperation Council under the State Duma of the Russian Federation and chairman of the commission for work with African diasporas of the Russian-African Club at Moscow State University named after M.V. Lomonosov, as well as president of the African Business Club.

Louis Gouend welcomed the participants and emphasized the importance of the issues discussed for the sustainable growth of the Russian economy. In the context of sanctions and global challenges, such as import substitution, Russia was able to maintain stability and even increase the total volume of exports.

Ilshat Ildusovich Fazrakhmanov, Deputy Prime Minister of the Government of the Republic of Bashkortostan, addressing the forum, expressed warm greetings to participants, and further emphasized the importance of international cooperation in the field of agro-export. Fazrakhmanov introduced Zalina Lerievna Aiba, Deputy Director of the Department of International Cooperation and Development of Agricultural Exports of the Ministry of Agriculture of Russia, for discussion of the federal agency’s strategies.

Zalina Lerievna Aiba singled out export growth as a key driver for the development of Russian agriculture. She noted the importance of Bashkortostan against this background and presented a program for the development of agricultural exports of the Republic of Bashkortostan until 2030, developed jointly with the Federal Center “Agroexport”. The program aims to give a new impetus to the development of the agricultural sector in the region.

Vitaly Yuryevich Nagalin presented promising areas for exporting Bashkortostan products, emphasizing the need for innovative approaches. In response to a question about products with high export potential, he emphasized the unique national products of Bashkiria that could interest the foreign market. Further, during the forum, the importance of introducing new technologies, such as digitalization and precision farming, to increase competitiveness was discussed.

The topic of supporting the agricultural sector was continued by discussing the role of Rosagroleasing. Pavel Nikolaevich Kosov spoke about the importance of material and technical equipment in the context of the Republic’s export potential. He emphasized that Rosagroleasing provides farmers with key tools for modernization, facilitating the renewal of the fleet of machinery and equipment, which is necessary for the effective use of innovations in agriculture.

Korney Datkovich Bizhdov presented a report on the importance of agricultural insurance as a mechanism for financial stability of the agricultural sector. He spoke about the support provided to Bashkortostan farmers last year, when the republic received 145 million rubles in insurance payments due to unfavorable weather conditions. Bizhdov emphasized the need to develop an agricultural insurance system in the context of climate change and global challenges. Promising development areas for the coming years were announced, including programs designed to protect agricultural producers and strengthen the position of the agro-industrial complex in international markets.

In her speech, Darya Vladimirovna Snitko emphasized the main trends in the Russian agro-industrial complex and the foreign economic challenges facing exports. She noted that it is necessary to adapt to rapidly changing global conditions and identified key strategies for strengthening the position of Russian agricultural products in the world market. Snitko also emphasized the importance of technological modernization and the need to invest in innovation to achieve a competitive advantage.

Sergey Vladimirovich Lakhtyukhov discussed the prospects for the export of poultry products, emphasizing the importance of international markets for the domestic sector. He spoke about the significant contribution of Bashkortostan to the production of poultry meat, where the region has increased production volumes by 153% over the past five years. Lakhtyukhov noted efforts in the field of import substitution of breeding material and highlighted areas that contribute to the growth of the export potential of Bashkir poultry farming, such as the production of commercial and breeding eggs.

In his speech, Roman Vyacheslavovich Kostyuk devoted attention to the strategic prospects of animal husbandry with an emphasis on export. He noted the leading positions of Bashkortostan in the production of milk and beef and emphasized that exports create new opportunities for Russian livestock breeders. In addition, Kostyuk focused on the need to increase production volumes, as well as on finding ways to successfully enter international markets, which will increase the income and competitiveness of domestic livestock farming.

At the end of the session, Louis Gouend, the African moderator and expert, invited all participants, entrepreneurs from the regions, to actively participate in the forthcoming Russia-Africa exhibition and forum in October 2025. The event will be held at the Chamber of Commerce of the Russian Federation in Moscow and expected to attract a large number of African entrepreneurs to interact with their Russian colleagues; this event is a unique platform for networking and exchanging experiences between Russian and African entrepreneurs. It is expected that the event will bring together a large number of representatives of business communities from African countries, which will create excellent opportunities for cooperation and the development of new business relations.

By participating in this forum, those present will be able to not only present their projects, but also learn about the latest trends and opportunities that the African market offers. It was strongly recommended that entrepreneurs take an active part in this significant upcoming corporate event.

In the final stage of the plenary session “Agro-Industrial Complex Export: Goals, Trends and Key Development Guidelines 2030” at the Agrocomplex Forum, Louis Gouend assertively noted that the entire discussion was a significant step towards building a sustainable and competitive agricultural export system. The meeting participants emphasized the importance of integrating new technologies and innovations that will help domestic producers take a strong position in the global market.

The future of the agro-industrial complex is mutually beneficial cooperation, sustainable development and confidence in the future, which became the main motive of the meeting. Continuing joint efforts and accumulating experience, were considered as conditions to achieve collective goals and ultimately contribute to global food security and population’s well-being.

The organizers in the Government of the Republic of Bashkortostan sincerely thanked all participants and partners for their active participation and look forward to next meetings to discuss further steps toward the successful development of agricultural exports!

Continue Reading

World

US Coast Guard Lauds Nigeria’s Port Security Efforts

Published

on

us coast guard

By Adedapo Adesanya

The United States Coast Guard has commended Nigeria for considerable progress in implementing the International Ships and Ports Facility Security (ISPS) Code.

The commendation came from Mr Joe Prince Larson of the US Coast Guard who led a team from the International Port Security Programme on a Working Tour of some Terminals and Ports in Nigeria to ascertain the level of implementation of the ISPS Code across Nigerian ports facilities.

The evaluations, which commenced last year as part of a three-year plan, are geared towards providing actionable insights and data-based decisions to lift the Condition of Entry (CoE) placed on vessels departing Nigeria for the US.

According to the Nigerian Maritime Administration and Safety Agency (NIMASA), the team had earlier conducted assessment visits to the Dangote Port and Lekki Free Trade Zones in Lekki, Lagos State, as well as private port facilities operated by Matrix and Julius Berger in Warri, Delta State.

While delivering an interim assessment report to NIMASA Management, Mr Larson noted that Nigeria’s compliance with the ISPS Code ranks amongst the best globally.

He added that his team would report their findings to the leadership of the US Coast Guard accordingly and expressed confidence that NIMASA had the capacity to maintain the high standards attained to date.

“We had the pleasure of visiting Matrix and Julius Berger in Warri, Delta State, before proceeding to the Lekki Deep Seaport and Dangote Port in Lagos, with the overall assessment being very positive.

“We noted that there is a clear and deep understanding on the implementation of the ISPS Code in Nigeria with the level of compliance observed to be at par with some of the best maritime nations globally. We would report our findings back to US Coast Guard headquarters accordingly.”

On his part, the Director General of NIMASA, Mr Dayo Mobereola, reaffirmed the agency’s commitment to maintaining the improved compliance standards at Nigeria’s ports.

He highlighted the positive impact of these efforts on the country’s international reputation, adding that the agency would continue to support efforts under the Minister of Marine and Blue Economy, Mr Adegboyega Oyetola, to improve standards in the Nigerian maritime industry.

According to him, “I must express my happiness at the positive feedback we have received from the USCG delegation as it serves as reward for the Federal Government’s commitment to the develop of the sector, and the work of the Agency, under the supervision of the Federal Ministry of Marine and Blue Economy, to ensure international standards are adhered to in the area of port security.”

Continue Reading

Trending