By Adedapo Adesanya
African Export-Import Bank (Afreximbank) and the African Continental Free Trade Area (AfCFTA) Secretariat have announced the commencement of the Pan-African Payment and Settlement System (PAPSS) to facilitate trade across the continent.
A brainchild of the African Union (AU), the PAPSS is a financial market infrastructure to enable instant, cross-border payments in local currencies among African markets launched two years ago which was conceived as a necessary option for accelerating regional trade as envisaged by AfCFTA.
According to the Cairo-based Afrieximbank in a statement, by simplifying cross-border transactions and reducing the dependency on hard currencies for these transactions, PAPSS is set to boost intra-African trade significantly and underpin the implementation of AfCFTA.
PAPSS will serve as a continent-wide platform for the processing, clearing and settling of intra-African trade and commerce. It is expected to leverage a multilateral net settlement system.
The statement said its full implementation will save the continent more than $5 billion in payment transaction costs each year.
The platform was developed by Afreximbank, who also acts as the main settlement agent in collaboration with central banks of participating countries.
The unveiling of the system came after a successful pilot of the countries of the West African Monetary Zone (WAMZ). The unveiling was described as an important milestone for the continent’s efforts to boost trade among African countries.
The statement disclosed that PAPSS was in advanced discussions with other national and regional institutions to rapidly expand wider connectivity.
To accelerate scalability, Afreximbank said it has approved $500 million to support the clearing and settlement in WAMZ countries, adding that an estimated $3 billion would be made available to support its continent-wide implementation.
The President of Afreximbank and Chairperson of PAPSS Management Board, Mr Benedict Oramah, said PAPSS implementation would enable Africa to leverage AfCFTA for mutual gains.
“Afreximbank is proud to have contributed to the realisation of the multi-decade dream that seemed unachievable just a few years ago. PAPSS is not positioned to replace existing regional and national payment systems but to collaborate and work with them in better integrating African economies for the benefit of all,” he said.
On his part, the Secretary-General of the AfCFTA, Mr Wamkele Mene, said: “The implementation of the agreement establishing the AfCFTA will improve intra-Africa trade, necessitating in this regard, the establishment of a payment system to facilitate affordable and efficient cross border trade transactions.
“It is on this basis that the AfCFTA Secretariat strongly supports the development of PAPSS that will usher in a new phase in the African economic trajectory.
“The introduction of PAPSS provides Africa with greater capacity to conduct cross-border transactions and expand the scale of both active and latent opportunities for enhanced intra-African trade,” Mr Mene stated.
Adding his input, the Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, said: “PAPSS has been brought about by our collective desire to facilitate and accelerate the growth of intra-African trade.
“With central banks working actively together alongside the Afreximbank, we are ushering in a new phase in Africa’s economic trajectory, in keeping with the ideals of the African Continental Free Trade Area.
“The introduction of PAPSS provides central banks with greater transparency and control as we now have a single window into all cross-border transactions emanating from our various jurisdictions and across the continent.”
PAPSS was launched on July 7, 2019, in Niamey, Niger, at the 12th Extraordinary Summit of the Assembly of the AU who adopted it as a key instrument for the implementation of AfCFTA.
SA Startup Nile Raises $5.1m for Direct Agric Purchases
By Adedapo Adesanya
South African agriculture technology startup, Nile, which enables buyers to purchase directly from Africa’s leading food producers through its marketplace, has raised a $5.1 million equity funding round led by Naspers Foundry.
The startup’s end-to-end process connects farmers to commercial retailers of fresh produce both in South Africa and across the continent.
The business-to-business (B2B) platform facilitates transactions and safeguards payments on behalf of farmers, resulting in increased transparency and improved cash flow.
Nile’s new equity round was led by Naspers Foundry, which contributed $2.5 million, alongside Platform Investment Partners, Raba Capital and Base Capital.
This transaction makes it Naspers Foundry’s 10th transaction, with its portfolio also including SweepSouth, Aerobotics, Food Supply Network, The Student Hub, WhereIsMyTransport, Ctrl, Naked Insurance and Floatpays.
Speaking on this, Mr Louis de Kock, co-founder and CEO of Nile, “We are delighted to have Naspers Foundry support our mission to make fresh produce more accessible to people across the African continent.
“While we were able to bootstrap Nile through our initial growth phase, we look forward to having the backing of an internationally respected investor and experienced operator like Naspers as we scale our cross-border operations to the rest of Africa.”
Adding his input, Mr Fabian Whate, head of Naspers Foundry said, “Nile provides a fully integrated ecosystem that creates trust between buyers and sellers on the platform and is a great example of tech entrepreneurs building innovative solutions that address people’s everyday needs.
“We are excited about the growth potential of this business and its contribution to transforming the trade of fresh produce.”
Nile was founded in 2020 to provide farmers with digital solutions that can address various pain points inherent to food trading – including price transparency, quality verification, speed of payments, the traceability of the produce and food waste.
Since Nile’s inception, approximately 30 million kilogrammes of fruits and vegetables have been traded on the platform, with buyers originating from five countries and 35 towns and cities across Southern Africa.
Nile’s services are used by farmers of all sizes, from small-scale farmers to large commercial farmers, with buyers ranging from large South Africa-listed companies to small family-owned retailers and wholesalers.
Nile also operates in Botswana, Namibia, Eswatini and Mozambique.
Migrating to Canada from Nigeria – Provincial Nominee Programs
There continues to be a high demand for high-skilled immigrants in many developed countries worldwide, and Canada isn’t an exception. The country’s skilled immigration system recognizes that immigrants can be instrumental in addressing labour market needs and economic growth, especially when they have in-demand skills, experience, and education. Hence, the Provincial Nominee Program (PNP) is an important component of Canada’s economic immigration system.
This provincial program creates a platform for the federal and provincial governments to work together to create industrial growth in Canada. The initiative makes it easier for qualified, skilled foreigners to become permanent residents. Provinces can nominate skilled immigrants who have been invited to apply for PR through Express Entry or the paper-based process.
Who Can Apply for PNP?
Although the nominee program is exclusive to workers, not all applicants in the job market are eligible. Some workers may be eligible, depending on their occupation. If an applicant holds a high human capital that is in demand in the province, the individual can apply for nomination in any of the available PNP immigration programs best suited.
Applicants must apply in the provinces they intend to live in. For example, a foreign senior developer who receives a “notification of interest” from Alberta is not qualified to apply under British Columbia’s PNP, especially when the individual has no interest in becoming a long-term resident there. Using the same scenario, the software engineer may not be considered for this program if there’s no intention to become a permanent resident in Canada.
Breaking Down the PNP Framework
As previously highlighted, there are two approaches to the PNP application process. The procedure entails undergoing some background checks, like police clearance and medical examinations for the province of application. The applicant must clear them successfully, as they make up part of the overall assessment. For those who consider the standard process, the requirements share some similarities with its counterpart.
To begin with, the applicants must meet the eligibility requirements for the province; likewise the Express Entry stream. Their skills must match one of the listed programs. That way, the province can invite such persons to apply. If nominated, they can submit the application to the IRCC. This approach has a longer wait time, compared to the second option.
Generally, the Express Entry stream is faster and more straightforward than the standard process. The skilled immigrant visits the province’s website to apply for nomination. Whereby the province finds the applicant an ideal fit for its labour market needs, it proceeds to nominate the professional, earning the individual 600 CRS extra. The next step would be to create an Express Entry account and proceed to apply for permanent residence.
Another option would be to flip the process around. This time, the Express Entry account creation comes first, which the professional notifies the province of. This is where the “notification of interest” comes into play. With this approach, there is direct communication between the candidate and the province officials in charge of the application. The former can then apply to the latter’s Express Entry stream and proceed to send the PR application to the IRCC.
Is Permanent Residence Available to Families of PNP-Nominated Immigrants?
The Provincial Nominee Program is one of the selected initiatives that encourage families to be united. Under this program, a spouse or child can accompany the foreign-born applicant when they make Canada their permanent residence. Those who move to Canada are eligible to become permanent residents as well. Plus, it extends to the children of the dependent children.
What Are Comprehensive Ranking System (CRS) Points?
When seeking permanent residence, various prerequisites must be met. Still, the Comprehensive Ranking System majorly determines whether a candidate is eligible for PR status. Points are allocated depending on the following:
- Language proficiency
- Academic background
- Work experience
- Province ties
Some are given points for obtaining professional degrees, like the Master of Business Administration (MBA) or other specializations that require significant academic efforts. The same is true for a foreign skilled worker, such as a financial advisor, who is fluent in the required language (often English or French). When a province nominates this skilled professional, additional CRS points are added to the person’s profile.
These points combined with those from other considerable aspects of the program, help the IRCC officials determine if the financial advisor qualifies for permanent residence.
How Can Applicants Improve Their Chances of Being Nominated?
Given a large number of skilled foreigners in the Express Entry pool, the possibility of being nominated quickly may be dicey. As such, applicants are advised to build a strong profile. Those who end up securing a job or enrolling in an academic program in Canada increase their CRS points and thus, their chances of getting a provincial nomination for PR application.
For example, an IT project manager seeking a PNP nomination from New Brunswick can boost his or her profile by acquiring a Master’s degree from a Canadian university. This tech professional can boost the chances of being nominated for PR by securing an IT-related role, such as computer programming at a New Brunswick-based tech firm.
The CRS points for such an expert would be higher than someone in the same field who has no connection to the province. In other words, the province will be more inclined to nominate the former than the latter. In the end, it is not simply about being skilled, as many highly skilled individuals are in Canada seeking permanent residence; it is about being the best fit for a province’s labour needs.
PNP Application Language Requirements
The language requirements for any of the streams in the PNP can vary. In general, the provinces nominate applicants who can integrate successfully into Canada. To this effect, applicants must be fluent in either English or French, depending on the stream. They’ll need to demonstrate their competence by taking any of the exams below:
- TCF Canada
- TEF Canada
The first two tests are English-based, whereas the last two are used to measure foreigners’ French language skills. They evaluate an applicant’s capability to converse, write, and listen in the language.
Canada’s Provincial Nominee Program is not difficult to understand. With proper research and planning, foreign-born professionals can apply, get selected, and become part of the country’s permanent population. There’s so much more to Canada than the majestic snow-capped mountains and lakes. Those looking for a career upgrade can consider moving to Canada, particularly if they are competent and willing to settle down.
World Bank Gives $300m Budget Support to Mozambique
By Kestér Kenn Klomegâh
By June, the World Bank plans to provide $300 million to support the national budget of the Republic of Mozambique, according to the World Bank country director for Mozambique, Idah Pswarayi-Riddihough.
After a meeting with the Mozambican Minister of Economy and Finance, Max Tonela, the global lender’s country director said that priority sectors would include health, education, energy and agriculture. The budget support proposal will be presented to the World Bank board by June.
“We are talking about the first instalment of 300 million dollars, which we hope to take to our administration for approval by 30 June this year. Then we can consider other windows of financing for 2023 and 2024”, said Pswarayi-Riddihough.
International organizations and financial institutions have returned after the Government of Mozambique started to undertake necessary reforms.
In April, the International Monetary Fund (IMF) also returned with a set of new funded programmes to Mozambique, six years after the lender halted its previous deals in the wake of a financial scandal involving three fraudulent security-linked companies, and two banks – Credit Suisse and VTB of Russia, on the basis of illicit loan guarantees issued by the government under former President Armando Guebuza.
Popularly referred to as the “Hidden Debts” scandal involving $2.7 billion (€2.3 million), the financial scandal happened in 2013, and the case has since left an image of a corrupt country and brought high-level government officials to testify as witnesses in the controversial judicial trial. It prompted 14 foreign donors, including IMF, to cut off aid and simultaneously sparked a currency collapse and debt crisis.
The IMF said in a report that its funds would be used to support sustainable, inclusive economic growth and long-term macroeconomic stability, in the world’s third poorest country measured by gross domestic product (GDP) per capita. The programmes will address transparency in debt management and the natural resource sector.
Unlike many of Mozambique’s other partners, the World Bank did not cut off financial assistance entirely after the scandal of Mozambique’s “Hidden Debts” became public knowledge in April 2016. World Bank aid continued, but in relatively small amounts, project by project.
Now the bank seems prepared to return to the modality of direct budget support. Pswarayi-Riddihough said that the improvement in good governance supposedly recorded in recent years contributed to the resumption of World Bank support. She claimed that this was an important step toward regaining the trust of the country’s partners.
Major work had been undertaken around questions of transparency and good governance, she alleged – but admitted that Mozambican civil society is continuing to demand greater advances in these areas. Mozambique’s new programme with the International Monetary Fund (IMF), she added, could give a strong signal to the market. Indeed, it will send a strong signal to all of Mozambique’s partners.
The agreement between Mozambique and the IMF, approved by the IMF Executive Board, will make $456 million available to the country. An amount of $91 million will become available immediately. At the time, Tonela said the agreement with the IMF marked the start of a new phase, leading to the resumption of sustainable growth of the Mozambican economy.
With an approximate population of 30 million, Mozambique is endowed with rich and extensive natural resources but remains one of the poorest and most underdeveloped countries in the world. It is a member of the Southern Africa Development Community (SADC).
Latest News on Business Post
- FG to Announce New Date for Postponed FAAC Meeting for May 2022 May 20, 2022
- Bulls Return to Unlisted Securities Market on 0.21% Growth May 20, 2022
- MTN Assures Nigerians Affordable Financial Services as MoMo PSB Begins Operations May 20, 2022
- Naira Drops 0.34% at P2P, 0.26% at Investors’ FX Segment May 20, 2022
- Nigerian Market Rebounds by 1.05 as Investors Gain N298bn May 20, 2022
- Weaker Economic Growth Weighs on Crude Oil Market May 20, 2022
- SA Startup Nile Raises $5.1m for Direct Agric Purchases May 19, 2022
- PEBEC Hails CAC for Implementing Reforms to Improve Economy May 19, 2022
- Access Holdings to Buy Foremost PFA First Guarantee Pension May 19, 2022
- Delivery Bikes Not Affected by Lagos Okada Ban—Police Chief May 19, 2022