<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="720" height="483" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHOTO-2024-08-28-12-04-29-1-1.jpg" alt="" class="wp-image-532940" style="width:840px;height:auto" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHOTO-2024-08-28-12-04-29-1-1.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHOTO-2024-08-28-12-04-29-1-1-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHOTO-2024-08-28-12-04-29-1-1-134x90.jpg 134w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">Babatunde Majiyagbe, Chief Executive, Stanbic IBTC Nominees</figcaption></figure>



Custodial and securities services in Nigeria have been evolving gradually for some time now. What would you say is the state of the market at this time?



Nigeria&#8217;s capital market is progressing, with custodial organisations transforming from passive players to proactive account administrators and capital enablers. As the market deepens, custodians are becoming vital in capital market development, supporting the increasing volume and activity, and meeting evolving business and client needs.



An essential development is the formation of associations like the Association of Asset Custodians of Nigeria (AACN), which amplifies the value custodians offer. Stanbic IBTC Nominees is a key member of this association, actively participating in conferences and discussions that promote industry growth.



It is interesting how you mention that custodian organisations are now regarded as initiators of capital market development rather than recipients. Can you shed more light on this?



Traditionally, custodians safeguarded financial assets, minimising risks. Today, their role has expanded to include account administration, transaction settlements, and tax support. More importantly, custodians now lead advocacy efforts by engaging regulators and market participants to initiate market changes, leveraging their expertise to enhance local market capabilities.



By working closely with regulators and market participants, custodians have driven initiatives like securities lending to improve market liquidity. This collaborative effort has led to the introduction and regulation of securities lending in Nigeria, contributing significantly to market development.



In 2015, Stanbic IBTC Bank introduced securities lending in Nigeria. How would you describe the process and journey that led to this feat?



SEC issued licenses for Securities Lending Agents in 2012, and by 2015, securities lending was officially launched. Since then, Stanbic IBTC has been the most active participant. We have increased market awareness and engagement, collaborating with key market participants to drive adoption.



Now, we are excited to include fixed income securities like Federal Government Bonds and Treasury Bills in our lending services. This expansion provides more opportunities for our clients and enhances market liquidity.&nbsp;



What exactly does securities lending entail?



Securities lending involves the temporary transfer of securities from a lender to a borrower, with an agreement to return the securities either on demand or at a specified future date. The borrower gains full legal title and can sell the securities, often for short selling.



Transactions are governed by formal agreements detailing the loan terms, fees, and collateral. During the lending period, the borrower is obligated to return the securities upon request at the expiration of the agreement.



How does securities lending contribute to the overall capital markets’ efficiency and liquidity?&nbsp;



Securities lending is crucial for effective market-making, increasing overall market liquidity, and enhancing the efficiency of price discovery mechanisms. It allows market-makers and investors to take and cover short positions, supporting their market-making activities, investment strategies, or hedging purposes. By enabling these activities, securities lending fosters a more dynamic and liquid market, which benefits all participants.



Can you elaborate on this recent development in the securities lending service in Stanbic IBTC Bank?



Previously, our securities lending services were limited to equities. Now, we are excited to extend this service to include fixed income securities such as Federal Government Bonds and treasury bills. This expansion allows us to offer more comprehensive solutions to our local and international institutional clients; providing greater opportunities for income generation and liquidity creation in the market. We have also opened this offering up to international investors. In 2024 alone, we successfully loaned out assets worth 150 million Naira, underscoring the growing demand and trust in our securities lending services.



What are the implications of increased securities lending for market participants and regulators?



Increased securities lending boosts market activity and liquidity, benefiting both buy-side and sell-side participants. It paves the way for new products like derivatives and attracts more investors. For regulators, it means maintaining oversight and adapting to evolving market practices to ensure a stable and efficient market.



Can you highlight the involvement of The Nigerian Exchange Limited (NGX) and The Financial Market Dealers Quotation (FMDQ) in securities lending?



The NGX and FMDQ play crucial roles in facilitating and regulating the securities market. The NGX provides guidelines for securities lending transactions and ensures adherence to best practices. FMDQ, particularly in the fixed income market, supports the inclusion of bonds and treasury bills, enhancing market liquidity.



Are securities lending transactions permitted in asset classes other than equities, such as government bonds and ETFs?



Yes, securities lending is permitted for all listed securities, including equities, government bonds, and treasury bills. As the market develops, we aim to include more diverse and liquid assets in the securities lending pool.



How much of Standard Bank’s expertise was leveraged in establishing securities lending in Nigeria?



Standard Bank, as a leading custodial bank in Africa, provided invaluable technical guidance, training, and platforms for securities lending. Their support was instrumental in launching and operationalising securities lending in Nigeria, enhancing our market&#8217;s functionality and appeal.



Stanbic IBTC Bank recently won awards for its custodial services. Some of these include Best Sub-Custodian Bank in Nigeria at the Global Finance Awards for the 15th consecutive time; Best Sub-Custodian Bank at the 2023 International Finance Awards; Best Custodian Bank in Nigeria at the Digital Banker&#8217;s Global Transaction Banking Innovation Awards 2023 and Custodian Bank of the Year at the 2023 BusinessDay Banks and Other Financial Institutions’ (BAFI) Awards. What would you say is the key driver of these achievements?



Our success is driven by our commitment to excellence, innovation, and client satisfaction. We constantly raise the bar, leveraging cutting-edge technology and focusing on client-centric services. Our dedication to transparency, efficiency, and accuracy has earned us the trust of investors and recognition through these recognitions. As Investor Services at Stanbic IBTC Bank Limited, can you highlight some of its services?



Stanbic IBTC Bank Limited is the leading custodial and investor services company in Nigeria. We offer a wide range of services, including asset safekeeping, transaction processing, foreign exchange trades, derivatives clearing and top-notch securities lending. Our robust systems ensure seamless operations and business continuity.



How can interested persons or firms register as participants in securities lending? Interested parties can contact us at callme@stanbicibtc.com for information on securities lending. We will guide them through the required documentation and onboarding process to become participants in this exciting market opportunity.

PHOTO-2024-08-28-12-04-29 1

NGN150mn worth of securities loaned to local and international clients in 2023

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-820x546.jpg" alt="" class="wp-image-532061" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS.jpg 1280w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



McDonald’s South Africa recognises that a change as little as reading a book can change a lot about a child’s future.



Starting in the month of September, which marks Literacy Month, McDonald’s South Africa will be on a quest to donate over a million books to disadvantaged schools and Early Childhood Development Centres across the country.



According to the Progress in International Reading Literacy Study, which evaluated the reading ability of 400,000 students globally in 2021, South Africa ranked last out of 57 countries assessed, with eight out of 10 South African school children struggling to read by the age of ten. The study showed that 81% of South African children could not read for comprehension in any of the country&#8217;s eleven official languages.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-3-820x546.jpg" alt="" class="wp-image-532062" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-3-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-3-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-3-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-3-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-3.jpg 1280w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Sechaba Motsieloa, Marketing Director at McDonald’s South Africa said: &#8220;Our mission is to ensure all children, no matter their background, can access the joy of reading. This September, together with fantastic charity partners such as the SABC, National Library of South Africa and the Rugby Sevens Team amongst others, we will do our best to ensure as many children have access to books in their schools to spark a lifelong love of reading.&#8221;



As a company that prides itself on diversity and its commitment to fostering community, McDonald’s South Africa, has been offering children’s books as an alternate option to toys, with every purchase of a McDonald’s Happy Meal, since 2019.



McDonald’s South Africa’s donation of over a million books to underprivileged schools is a significant contribution to education. Access to books can greatly enhance literacy and learning opportunities for students. This kind of initiative not only supports academic growth but also fosters a love for reading, which can have long-lasting benefits for children.



“The ongoing literacy crisis in South Africa requires that organisations who care about the future of this country contribute towards encouraging a love and culture of reading,” concludes Motsieloa.

BOOK  DONATIONS

McDonald’s South Africa is donating over a million children’s books to deprived schools and ECD’s across the country

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="518" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/IMG_20240816_113709-820x518.jpg" alt="" class="wp-image-529432" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/IMG_20240816_113709-820x518.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/IMG_20240816_113709-300x189.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/IMG_20240816_113709-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/IMG_20240816_113709-768x485.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/IMG_20240816_113709-1536x969.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/IMG_20240816_113709-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Think of a family business – the image that probably comes to mind is the ‘mom and pop’ corner store with kids carrying stock and doing counter duty. The reality, however, is different. The African multigenerational business of today is likely to employ hundreds of people, and ultimately may find itself moving towards being listed on one of the stock exchanges.



Multigenerational, family-owned businesses are estimated to contribute between 20% and 30% of South Africa’s gross domestic product (GDP). In fact, 60% of JSE-listed entities were either founded by or are still managed by families. Perhaps most notably, family businesses comprise about 70% of all South African companies and employ approximately 60% of the workforce.



These impressive statistics and success stories are not just about entrepreneurs who have identified opportunities but also about their strategic vision, hard work and the transformation of fledgling enterprises into powerhouses. Family-owned businesses, which span all market sectors, including agriculture, agri-processing, manufacturing and logistics, also share other characteristics that contribute to their success.



They tend to grow market share by investing locally at first and have consistently grown above inflation and the national average GDP growth rate. Their focus most often is on building sustainable businesses that are the mainstay of a family legacy. These entities demonstrated impressive resilience during COVID and have managed sustained growth over a long period of relative weakness in the overall SA economy. Because we at Standard Bank Commercial and Business Banking (BCB) must meet the needs of hundreds of these businesses, we are conscious that multigenerational businesses, despite their success, also face various challenges. For example:



<ul class="wp-block-list">
<li>They hold different views regarding capital allocation. Some family members may want capital preserved, while others may favour investment and fast growth.</li>



<li>They often must meet growth demands by adapting and ‘corporatising’ business structures to respond to market conditions and stay current.</li>



<li>They must recognise a need for adapting employment practices and acquiring specialised skills. Regarding the latter, if the business is to remain sustainable, the skills required may need to be reviewed in the light of changed operational circumstances.</li>



<li>Succession planning is a critical issue that needs to be addressed as a business grows and matures. </li>



<li>There may be issues around how to allocate equity within the business and how ‘external’ parties are integrated into the family arrangement.</li>



<li>With the advent of new trading conditions and treaties across Africa, creating partnerships that can maximise local growth and facilitate cross-border trade and operations in neighbouring countries or even further abroad is a key competitive differentiator.</li>
</ul>



The common denominator for all multigenerational businesses is that success and growth means increased complexity. As complexity increases, meticulous planning, access to finance and strategic support tend to play pivotal roles.



Take for instance one of our longstanding clients, the Radley family, who have owned and managed Radley Landgoed, a solar farm located near the farming town of Malelane, Mpumalanga, for nearly 80 years. Over the decades, this multigenerational business has not only maintained its agricultural heritage but has also embraced innovation to secure its future. Recently, they took a significant leap forward by pioneering renewable energy solutions with our support, leading to the development of Mpumalanga’s first water-borne solar plant. This groundbreaking project underscores our role as a trusted partner for growth, dedicated to fostering sustainable solutions that empower businesses, enhance financial inclusivity, and address critical challenges like energy supply. By supporting such initiatives, we help ensure the longevity and success of family-owned enterprises, enabling them to thrive across generations while contributing positively to the broader economy.



We also advise multigenerational companies about various issues in this vital economic sector that have the potential to impact their success. These include:



<ul class="wp-block-list">
<li>Helping businesses respond to requests about how to successfully expand across borders and diversify operations to meet new markets. Demand for assistance with international introductions and seamless integration of banking services has risen by about 30% over the past year.</li>



<li>Recognising that although an ‘owner-managed’ culture is influential, owners often need assistance when it comes to adapting to changed environments and changing business direction.</li>



<li>Changing business focus from being niche bound to expanding across value chains, identifying opportunities, and knowing when and how to take advantage of them.</li>



<li>Conducting wealth and estate planning to ensure unified leadership and the transfer of ownership and assets across generations.</li>



<li>Making good equity and leverage decisions, which often becomes important as businesses grow. For instance, such decisions may revolve around the need of a family-owned business to enter an empowerment deal or undertake an acquisition.</li>
</ul>



At the heart of most discussions in this regard is the issue of professionalising the family business so that the structure assists with the innovation required to allow the company to grow. Issues involved may range from appointing non-family members to the board to implementing governance structures and using technology to improve productivity and control costs.



Given BCB’s extensive business footprint within South Africa and its access to 15 markets on the continent, as well as offshore operations in New Jersey and the Isle of Man, Standard Bank has the networks, insights and experience to enable business owners to identify suitable partners and other trade markets.



Africa is open for business, and many of South Africa’s leading multigenerational companies are positioning themselves for the local and international opportunities that will arise.



Navigating the complexities required for growth is critical for ensuring the sustainability and success of family-owned enterprises. Through its collaborative approach, Standard Bank’s BCB division is poised to help preserve the legacies and values of multigenerational businesses while helping to position them to adapt and thrive in a constantly changing marketplace.

IMG_20240816_113709

Fostering the growth of multigenerational family businesses is helping build the stock market leaders of tomorrow

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="647" height="486" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GIDZ.png" alt="" class="wp-image-529029" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GIDZ.png 647w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GIDZ-300x225.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/GIDZ-120x90.png 120w" sizes="auto, (max-width: 647px) 100vw, 647px" /></figure>



Competitively located next to sub-Saharan Africa’s largest international airport, the OR Tambo SEZ is playing a key role in advancing South Africa&#8217;s green economy growth – by facilitating the production and export of components that support the generation of green energy.&nbsp; &nbsp;



In addition to its linkages to OR Tambo International, the SEZ is well-positioned near a major platinum refinery, making it ideal for accessing and processing Platinum Group Metals (PGMs), which are essential for producing fuel cells—one of the most important components in the green hydrogen industry. This focus on PGMs aligns with South Africa&#8217;s position as a global leader in PGM production and the Hydrogen Society Roadmap of South Africa. &nbsp;



In support of its goal to stimulate fuel cell and hydrogen localization, the SEZ is excited about the onboarding and imminent operationalization of one of its investors who is focused on the production and export of key fuel cell components.&nbsp;



<h2 class="wp-block-heading" id="h-about-isondo-precious-metals">About Isondo Precious Metals</h2>



Established in 2012, Isondo Precious Metals (IPM) has set up a state-of-the-art facility in the SEZ that will produce key components like PGM catalysts and Membrane Electrode Assemblies (MEA) used in electrolysers and fuel cells.



The Isondo facility is set to be fully operational by late 2024, providing a basis for the OR Tambo SEZ to contribute to South Africa’s objectives to manufacture and export key components with an input into the green hydrogen landscape.



Without a doubt, the realization of Isondo’s imminent plant operationalisation is a major step in positioning South Africa as a leader in the global green hydrogen value chain. It also has significant economic benefits, including creating up to 300 skilled jobs.



<figure class="wp-block-gallery has-nested-images columns-2 is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex">
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="584" height="438" data-id="529033" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/gidz2-1.png" alt="" class="wp-image-529033" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/gidz2-1.png 584w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/gidz2-1-300x225.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/gidz2-1-120x90.png 120w" sizes="auto, (max-width: 584px) 100vw, 584px" /></figure>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="582" height="436" data-id="529034" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/gidsz3-2.png" alt="" class="wp-image-529034" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/gidsz3-2.png 582w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/gidsz3-2-300x225.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/gidsz3-2-120x90.png 120w" sizes="auto, (max-width: 582px) 100vw, 582px" /></figure>
<figcaption class="blocks-gallery-caption wp-element-caption">Figure 1:Inside and Outside view of IPM (Building 07) at the OR Tambo SEZ Precinct 1</figcaption></figure>



<h2 class="wp-block-heading" id="h-why-or-tambo-sez-is-supporting-the-fuel-cell-and-green-hydrogen-market">Why OR Tambo SEZ is supporting the Fuel Cell and Green Hydrogen Market</h2>



The green hydrogen and fuel cell industry, driven by the growing demand for cleaner energy solutions, is still in its early stages of development. One key challenge the sector faces is the high price of hydrogen, which, while currently elevated, is expected to decline as demand increases over time.



Additionally, complexities surrounding the transportation of hydrogen, particularly for export, pose significant logistical hurdles. This is where Special Economic Zones (SEZs) such as the OR Tambo SEZ come in: by playing a critical role that assists in reducing production costs—through infrastructure, operational incentives, and localized ecosystems that lower all work together to reduce operational expenses. The SEZ also provides a regulatory framework through which huge investments required for this new industries can be effectively planned and located – with the support of government incentives that provide a basis for VAT and tax rebates; this is crucial in this still cost intensive industry.&nbsp;



The IPM &nbsp;facility located at the SEZ’s first operational precinct exemplifies this and how the SEZ is working on unlocking this new industry: in a way that fosters local manufacturing of components that form part of the fuel-cells value chain.&nbsp;



In addition to the first precinct where IPM is located, the SEZ is also in the advanced stages of planning a full scale PGM-focused SEZ where PGM related products, including mining and capital equipment as well as integrated energy solutions that utilize both gas and fuel cell systems will be located.&nbsp;



With the strong foundation realized with its operational precinct, the OR Tambo SEZ is ready and geared up to promote this new age industry, contributing not just to job creation but the imbedding of new skills and opportunities in South Africa.&nbsp;



For more information on the at OR Tambo SEZ, visit: <a href="http://www.ortambosez.co.za">www.ortambosez.co.za</a>

GIDZ

OR Tambo SEZ: contributing to the stimulation of fuel cell and hydrogen localization

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/1.png" alt="" class="wp-image-527190" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/1.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/1-300x200.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/1-135x90.png 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/1-768x512.png 768w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



The potential for mobile money and digital payments to drive financial inclusion is immense. We can see this potential being unlocked on the African continent as it accounts for <a href="https://african.business/2023/05/technology-information/west-africa-worlds-largest-growing-mobile-money-market-in-2022-says-gsma-report#:~:text=Despite%20this%20growth%2C%20East%20Africa,registered%20accounts%20in%20West%20Africa.">70%</a> of the world’s $1 trillion mobile money value and registered a <a href="https://www.gsma.com/sotir/wp-content/uploads/2024/03/GSMA-SOTIR-2024_Report.pdf">12%</a> growth in mobile money accounts to 1.75 billion in 2023.



This is opening a number of new opportunities for economic growth and development as more robust and connected payment networks are breaking down geographical barriers, opening up access to new markets and enabling anyone to send and receive payments quickly and easily from and to anywhere in the world.



However, these significant benefits are largely being realized and felt in Africa’s larger, and key, markets such as Nigeria, South Africa, and of course Kenya- where mobile money was first launched and popularized on the continent. While these markets have reached greater levels of digital payments maturity, smaller and more underdeveloped markets are often passed over, leaving many still excluded from economic participation and financial freedom.



And yet, the truly transformative power of mobile money and digital payments can be most realized in these overlooked economies where the reliance on cash, a lack of traditional bank accounts due to limited infrastructure and access, and the substantial penetration of smartphones and increasing internet connectivity have created the ideal confluence of circumstances that will pave the way for a more inclusive and resilient financial future.



<h2 class="wp-block-heading" id="h-realizing-the-enabling-power-of-digital-payments">Realizing the enabling power of digital payments</h2>



The biggest drivers of mobile money adoption in Africa are its accessibility and ease of use. Unlike traditional financial services, there’s no need for extensive paperwork, a credit and financial history, or a physical presence within a brick-and-mortar branch to gain access to these services.



This low barrier to entry, along with mobile money’s ability to enable economies beyond just transactions and empower both individuals and enterprises, makes it particularly impactful for underserved markets. Within these regions, mobile money and the digital payments ecosystem have the power to serve as catalysts for economic growth, poverty reduction, and enable marginalized communities with the financial freedom to manage their day-to-day lives, start or expand their businesses, and invest in their futures.



<h2 class="wp-block-heading" id="h-a-concerted-effort-towards-a-single-goal">A concerted effort towards a single goal</h2>



It’s important that all levels of an economy work towards achieving the crucial objective of financial inclusion. Collaboration is a key component in creating and maintaining an environment that creates more opportunities for inclusive growth and ensures economic resilience.



Not only do governments play a pivotal role in developing and implementing the policies and regulations that foster a supportive framework for financial services, but investment from both the public and private sectors is essential to building the necessary digital payments infrastructure that will underpin financial inclusion on the continent. Meanwhile, fintech firms can continue to drive innovation in this space that will achieve the desired convenience, speed and accessibility within the payments space.



We can see this value already starting to be realized across smaller markets like Eswatini where the <a href="https://www.afi-global.org/wp-content/uploads/2023/07/Eswatini-Fintech-Landscape-Report.pdf">Central Bank established a FinTech unit</a> to spearhead the development of digital payments in the country in 2018; in South Sudan where the <a href="https://www.gsma.com/solutions-and-impact/connectivity-for-good/mobile-for-development/blog/south-sudan-mobile-moneys-role-in-the-road-to-recovery/">introduction of mobile money in 2017</a> has enabled development organizations to distribute cash assistance securely; and Somalia which <a href="https://qz.com/africa/2152271/somalia-changed-the-face-of-money-transfers-worldwide#:~:text=Somalia's%20central%20bank%20awarded%20Hormuud,for%20people%20across%20the%20country">recently enabled digital payments</a> to be made between the country’s banks, making payments easier.



<a></a>In Ethiopia, non-banks were enabled to provide mobile money services in 2020 as mobile money services could lift 700 000 people out of poverty, add $5.3 billion to the country’s economy, increase tax revenue by $300 million, and essentially position the country to adapt to economic downturns according to the <a href="https://www.gsma.com/solutions-and-impact/connectivity-for-good/mobile-for-development/wp-content/uploads/2023/06/GSMA_Mobile-money-in-Ethiopia-Advancing-financial-inclusion-and-driving-growth-report.pdf">GSMA’s 2023 Mobile Money in Ethiopia report</a>. Recognising this period as a key moment in the country’s transformation into a financially inclusive economic powerhouse, Onafriq, Africa’s largest payments gateway, also strengthened its presence in Ethiopia through a number of partnerships with financial institutions, mobile network operators, and other key decision makers. This includes partnerships with Ethio telecom and M-PESA Safaricom to enhance and streamline remittance flows and address the shortage of forex while providing customers with much-needed funds.



It’s clear then that when all these elements work in harmony, they can break down barriers to financial access, enabling people and businesses to participate more fully in the economy, thus driving sustainable development and economic growth in these underserved regions. Investing in these smaller, underserved markets &#8211; which represent a significant portion of the continent’s population &#8211; is simply integral to realizing true financial inclusion across Africa.



When everyone can access financial services, we can foster inclusive growth, stimulate local economies, and open up access to new markets and opportunities, connecting the continent through sustainable economic development.

True financial inclusion calls for smaller markets to receive equal attention to larger ones

By Mpho Sadiki, Network International Group MD – Africa Acquiring, and Richard Kadiaka, Network International Regional MD &#8211; Southern Africa and Palops.



Across the world, the business community watched the SA elections with great concern as to how the outcome will affect sentiments and the ability to do business in South Africa. The known structural, economic, policy certainty and governance challenges created a challenging operating environment for business and therefore the seventh elections of our democracy provided a good opportunity to reset. The lack of an outright majority winner has itself presented some unknowns for all observers and the entire nation.



The dawn of the Government of National Unity (GNU) in South Africa has ignited a renewed sense of optimism among businesses, particularly global investors. This shift presents a unique opportunity for a more collaborative approach to economic development. One critical area ripe for innovation and growth is the field of digital payments, which holds the potential to revolutionise the informal sector and empower young entrepreneurs, thereby boosting economic growth and creating new jobs.



<h2 class="wp-block-heading" id="h-a-call-for-inclusive-financial-services">A call for inclusive financial services</h2>



The GNU&#8217;s openness to new collaborations marks a significant change from the previous single-party administrations. This new approach aligns with the shared objectives of the country, including the development of an inclusive payments ecosystem. The South African Reserve Bank&#8217;s Digital Payment Roadmap, part of Vision 2025, and the proposed activity-based licensing under the COFI Bill are pivotal steps toward creating a conducive regulatory environment.



This for us, creates the platform for true innovation and true scale in endeavours to be financially inclusive. It opens the door for non-banks and fintechs to accelerate their initiatives into digital payments and actual services finally reaching the informal and cash-heavy segments of our market.



Our challenges with cash-handling operations and risk associated with this is a major concern for South Africa as a country and could not be a greater motivator for accelerating digital payments with aggressive acceleration.



<h2 class="wp-block-heading" id="h-industry-landscape-the-role-of-digital-payments">Industry landscape: The role of digital payments</h2>



In many cash-dependent societies, the lack of digitisation leads to missed opportunities for data insights. Digital payments not only promote financial inclusion but also provide valuable data that can inform government policy, inform product innovation and drive economic growth. The expansion of payment options can significantly accelerate the adoption of digital payments.



Network International as a leading payments enabler across Middle East and Africa has seen the positive impact of in successful implementations of Alternative Payment Methods (APMs) like mobile money acceptance at Point-of-Sale, or of late, the acceptance of UPI and AANI wallets in the UAE market enabled through Network International. We have seen the staggering uptake from Indian visitors to the UAE.



Multi-tender acceptance plans are critical in ensuring that merchants can accept payments at the point of interaction with the customer without preference. There is great industry excitement in the next launch of Request-to-Pay (RTP) for PayShap which also introduces new customer payment methods for example Person-to-Merchant (P2M).



<h2 class="wp-block-heading" id="h-readiness-for-hyper-scale-payment-platforms-simplifying-entry-to-payments">Readiness for hyper-scale payment platforms simplifying entry to payments</h2>



Network International made a staggering R560mn investment in the SA market in 2023, a decision driven by the market appetite for leading payment products, high card adoption compared to other market in the MEA region, regulatory readiness and requirements for an on-soil relationship (a great hub for support institutions across the SADC region).



We have witnessed the transformative power of digital payments and best of breed technology offering based on the response from the market, new partnerships established and the enhanced desire from industry players to collaborate.



Our experience in facilitating seamless digital payments enablement across the Middle East and Africa has showcased potential and competence to deliver for similar initiatives in South Africa. If we are to accelerate adoption of digital payments, collaborative efforts are crucial for achieving the common objective for true financial inclusion.



Even more exciting, we have seen a growing intent from non-financial service providers like mobile network operators (MNOs), retailers and fintechs looking to take advantage of our role as a leading enabler of payments and commerce to launch their key payments capabilities in the market. By partnering with these new players in creating an interoperable payment environment, we aim to equip small entrepreneurs and informal segments with the tools they need for accelerated growth.



<h2 class="wp-block-heading" id="h-skin-in-the-game-for-a-socially-responsible-payments-industry">Skin in the game for a socially responsible payments industry</h2>



We see our role as a catalyst for growth, supporting innovation, testing new concepts, and enabling fintech collaborations. Payment platforms lower the barriers to innovation, even for those constrained by legacy infrastructure, and serve as conduits for successful business collaborations.



While there is restored optimism through the newly formed GNU, the industry cannot afford to be passive. There must be collective efforts to create capacity, accelerate collaboration and a desire to accelerate policy implementation. As we look to the future, we are confident in the direction set by the South African Reserve Bank and the increasing interest from both fintechs and large enterprises. This positive trajectory not only reinforces our commitment to our local operations but also encourages us to invest in meaningful social initiatives, skills development programs, youth employment and other initiatives such as staff ownership programmes.



Socially responsible corporate citizens are critical to a conducive and ever-growing payments landscape. It is our responsibility to invest in the industry as much as we benefit from it. Our achievement of level 1 B-BBEE accreditation is our way of showing full and ongoing commitment to the social and economic objectives of the country.



<h2 class="wp-block-heading" id="h-in-conclusion">In conclusion</h2>



The key to sustained growth and innovation lies in the trust and collaboration between the public and private sectors. When businesses are confident in a country&#8217;s future, they are more likely to engage in significant social investments and industry collaborations, creating a fertile ground for innovative solutions and further investment.

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Digital payments: A catalyst for South Africa’s growth

With more than 328 million terabytes of data <a href="https://whatsthebigdata.com/data-generated-every-day/">generated</a> daily, making sense of it all has become a key challenge for business, especially those seeking to thrive in a dynamic marketplace. The Hive Group, a leading Pan-African data and consumer insights performance agency, has been at the forefront of transforming this data into actionable insights, allowing brands to unlock efficiencies and opportunities.



<h2 class="wp-block-heading" id="h-a-fresh-focus">A fresh focus</h2>



Building on its legacy, The Hive Group has undergone an extensive restructuring, leading to the launch of its Tech Hive division. This division is designed to further strengthen The Hive Group’s capabilities by integrating advanced technology and data-driven methodologies into its service offerings. Through this, the Group is identifying more innovative ways to help brands navigate the complexities of the modern marketing landscape.



“We deliver creative solutions inspired by data and use insights from numerous sources. Tech Hive excites us because we now have our own data shop accessible 24/7, allowing us to deliver creative solutions quicker, map out consumer journeys, and ultimately produce high-quality products faster,” says Fiso Tshivhandekano, Managing Director of Idea Hive.



This repositioning reflects the Hive Group&#8217;s understanding of the dynamic landscape of marketing, where agencies must continually evolve and embrace innovation. The launch of Tech Hive underscores The Hive Group’s commitment to delivering precise, impactful solutions that drive organisational success.



<h2 class="wp-block-heading" id="h-a-refined-approach">A refined approach</h2>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1200" height="628" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/Martech.jpg" alt="" class="wp-image-523508" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/Martech.jpg 1200w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/Martech-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/Martech-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/Martech-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/Martech-768x402.jpg 768w" sizes="auto, (max-width: 1200px) 100vw, 1200px" /></figure>



Central to this approach is The Hive Group’s strategic partnerships. Collaborating with mParticle, which combines real-time data quality and governance protections with AI-powered insights, the Group can now unlock even more powerful data-driven insights for its clients. Similarly, its partnership with StoryTeq allows the Group to produce high volumes of personalized content at scale through creative automation, ensuring that every marketing campaign is targeted and relevant.



The Hive Group’s powerful customer data platform, driven by mParticle technology, empowers brands to create detailed customer profiles by integrating data from various sources. This gives a holistic view of customer behaviours and preferences to ensure that marketing campaigns are targeted and relevant. The goal is to provide brands with the insights needed to drive better engagement and higher conversion rates.



“Our use of mParticle shows the practical benefits of creating precise customer segments. Being able to identify frequent buyers and seasonal shoppers helps organisations tailor marketing messages to each group,” says Yaw Dwomoh, CEO of The Hive Group.



Moreover, Tech Hive’s Martech stack allows The Hive Group to group individuals with similar thoughts and develop personalised solutions. This insights-driven approach enables businesses to transform data into actionable strategies that foster deeper customer connections and drive success.



“Our precision marketing has now reached the next level,” says Tshivhandekano. “We are fully tech-enabled, using our AI tool to figure out real business challenges for creative solutions. This insights-driven approach removes the guesswork and focuses on finding the real challenges to solve for greater business success.”



<h2 class="wp-block-heading" id="h-data-driven-insights-help-break-down-stereotypes">Data-driven insights help break down stereotypes</h2>



One of the key areas where Tech Hive is making a difference is in its approach to debunking cultural stereotypes. Traditional marketing often relies on broad assumptions about consumer behaviour, which can lead to ineffective campaigns. However, Tech Hive’s data-driven insights reveal a different reality—one where consumers are more likely to engage with brands that resonate with their thoughts and values.



“Our Martech stack allows us to group individuals with similar thoughts and develop personalised solutions. Businesses set up loyalty programs and collect consumer data but often do not know how to use it to grow their business and derive income through loyalty. Tech Hive helps businesses overcome this challenge by transforming data into actionable insights, enabling closer customer connections and tailored services,” explains Tshivhandekano.



<h2 class="wp-block-heading" id="h-precise-marketing">Precise marketing</h2>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/Storyteq-820x429.jpg" alt="" class="wp-image-523509" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/Storyteq-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/Storyteq-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/Storyteq-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/Storyteq-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/Storyteq.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



By leveraging in-house AI tools, Tech Hive can now identify real business challenges and devise creative solutions based on data-driven insights rather than gut feelings. This approach ensures that strategies are not only relevant but also aligned with business goals, leading to greater impact and success.



This precision in marketing has been significantly enhanced by leveraging in-house AI tools. Tech Hive can now identify real business challenges and devise creative solutions based on data-driven insights, ensuring strategies are not only relevant but also aligned with business goals.



<h2 class="wp-block-heading" id="h-data-solutions-across-africa">Data solutions across Africa</h2>



As Tech Hive continues to drive innovation, its data solutions resonate beyond just marketing. Globally, companies across industry sectors are turning to data-driven advertising solutions, with digital advertising spending <a href="https://www.statista.com/outlook/dmo/digital-advertising/worldwide">projected</a> to top $740 billion by the end of this year. The rapid growth of artificial intelligence (AI), machine learning, and real-time data analytics has transformed the marketing landscape, enabling brands to engage with customers in more personalised ways.



“Both Idea Hive and Tech Hive will continue to adapt and innovate to reflect market trends. Our focus will remain on delivering powerful solutions that unlock new opportunities for our clients to achieve their goals,” says Dwomoh.



<h2 class="wp-block-heading" id="h-evolving-to-meet-market-demands">Evolving to meet market demands</h2>



The Hive Group’s repositioning and the launch of Tech Hive mark a significant step forward in the company’s evolution. By merging creativity with cutting-edge technology and leveraging data-driven insights, The Hive Group is well-positioned to help brands navigate the complexities of the modern marketing landscape.



As the company continues to innovate and expand its capabilities, it remains committed to driving business success for its clients across Africa and beyond.



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Welcoming a new era of data-driven marketing

Africa is the world’s second most populated continent, accounting for just under 18% of the global population.&nbsp; Despite this, the continent is accountable for at least 25% of the world’s disease burden.



With more than its fair share of diseases, the World Economic Forum estimates that the total demand for packaged medicines in Africa is around $18 billion per year.&nbsp; Interestingly, 61% of that is serviced through imported products, with only 36% being locally produced. Of the 36%, 40% of the production capabilities are confined to packaging and labelling with the remaining 40% limited to filling and finishing (Who Owns Whom, 2023).



For Africa to effectively service the medical requirements of its 1.4 billion people, countries on the continent must acknowledge the need to enhance their pharmaceutical and medical production capabilities.&nbsp;



In recognition of this, the OR Tambo International Airport Special Economic Zone (SEZ) has designed, and is in the process of developing, a globally competitive medical manufacturing cluster that will enhance the production and export of medical products from South Africa.&nbsp;



<h2 class="wp-block-heading" id="h-or-tambo-sez-s-bold-ambitions">OR Tambo SEZ’s Bold Ambitions</h2>



Comprised of 265,000m² of developable space, the OR Tambo SEZ Precinct 2 development is well positioned to support the production and export of time-sensitive products such as medicines.



Located on the doorstep of OR Tambo International, the SEZ is an ideal location for the production and export of high-value, light weight products that utilize air freight as a mode of transport.



In support of its competitive value proposition, the OR Tambo SEZ completed industry-specific research that identified different elements essential for the establishment of a globally competitive medical manufacturing cluster.&nbsp; The result of this research is a bold plan that aims to secure continental as well as international buy-in, thereby ensuring that the cluster is well positioned to support the manufacturing of different elements that form part of the broader pharmaceutical and medical product value chain in Africa.



<h2 class="wp-block-heading" id="h-the-competitization-of-the-or-tambo-sez-pharma-and-medical-cluster">The Competitization of the OR Tambo SEZ Pharma and Medical Cluster</h2>



The cluster-based approach is globally acknowledged as an effective approach to enhance economic growth and development.



For it to be competitive, any cluster must pursue and ensure the existence of linkages between different elements that form part of the production process; these include basic inputs, manufacturers, role players that approve the products for consumption and those that move the goods to market. Equally important are the research, development and innovation institutions.



The OR Tambo SEZ’s planned pharma and medical manufacturing precinct will have all the above inclusive of a variety of medical production processes such as pharmaceutical mixing, medical device component manufacturing, sub-assembling, labelling and packaging, warehousing and storage, training, standard testing, patent compliance and regulatory approval institutions.&nbsp;



Through this approach, the SEZ, which already boasts of a competitive location, is destined to become a world class pharma and medical products manufacturing destination.&nbsp;



<h2 class="wp-block-heading" id="h-available-incentives">Available Incentives</h2>



As a designated Special Economic Zone, the OR Tambo SEZ will also provide manufacturers that are looking to set up operations with the opportunity to access incentives that reduce the cost of production; this is particularly key, given that manufacturing costs remain a major impediment in the enhancement of manufacturing in Africa.



Available incentives include duty-free importation of production-related materials and assets as well as VAT exemption on exports.&nbsp;



<h2 class="wp-block-heading" id="h-or-tambo-sez-the-competitive-choice">OR Tambo SEZ: The Competitive Choice</h2>



Underpinned by factors such as a skilled labor force, South Africa has long been a location of choice for multinationals looking at Africa. The country also has an established supply chain to foster the medical manufacturing expansion.



All the above, coupled with Gauteng City-Region’s competitive positioning serving as a gateway to sub-Saharan Africa, make the OR Tambo SEZ an ideal location for the production, export and trade of pharmaceutical and medical products within Africa.



For more information on the pharmaceutical and medical cluster being developed at OR Tambo International Airport SEZ, visit: <a href="http://www.ortambosez.co.za">www.ortambosez.co.za</a>

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Establishing A Globally Competitive Pharma and Medical Manufacturing Cluster

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1363" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VC-profile-Image-scaled.jpg" alt="" class="wp-image-515710" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VC-profile-Image-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VC-profile-Image-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VC-profile-Image-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VC-profile-Image-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VC-profile-Image-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/VC-profile-Image-1536x1022.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /></figure>



UJ also the number 1 university in South Africa and on the African continent



The University of Johannesburg (UJ) has consolidated its position among the leading institutions of higher learning in the world, soaring to its highest-ever position in global rankings. UJ secured a remarkable #36 position in the <a href="https://www.timeshighereducation.com/world-university-rankings/university-johannesburg">Times Higher Education (THE) Impact Rankings</a> released in June this year. This is quite a feat for a university, considering that this year’s rankings included 1,963 institutions, an increase of 372 from the previous year.&nbsp;The University’s standing in these global rankings marks a significant rise of 10 from its previous position of #46 in the 2023 edition.



Consistently leading as the top university in Africa and South Africa, UJ has also maintained its prestigious #1 spot on the continent and in the country. This achievement is for its exceptional contribution to poverty alleviation, securing the top position in Sustainable Development Goal (SDG) 1: No Poverty. Impressively, UJ now ranks #3 globally in this SDG category, highlighting its firm commitment to research and support initiatives aimed at assisting impoverished students and local communities.



This notable achievement highlights UJ&#8217;s dedication to addressing some of the world’s most critical challenges, including environmental sustainability, social inclusion, economic growth, and collaborative partnerships.



UJ’s performance across individual SDGs is commendable, achieving top 100 rankings in six SDGs:



#3 for SDG 1: No Poverty



#6 for SDG 8: Decent Work and Economic Growth



#13 for SDG 5: Gender Equality



#46 for SDG 10: Reduced Inequalities



#53 for SDG 4: Quality Education



#93 for SDG 2: Zero Hunger



Additionally, UJ’s rankings for other SDGs are as follows:



101-200 for SDG 7: Affordable and Clean Energy



101-200 for SDG 12: Responsible Consumption and Production



201-300 for SDG 9: Industry, Innovation and Infrastructure



201-300 for SDG 17: Partnerships for the Goals



301-400 for SDG 6: Clean Water and Sanitation



301-400 for SDG 16: Peace, Justice and Strong Institutions



401-600 for SDG 11: Sustainable Cities and Communities



401-600 for SDG 3: Good Health and Well-being



401-600 for SDG 13: Climate Action



Apart from its impressive showing in THE Impact Ranking, UJ has also continues its strong performance in the QS World University Rankings, maintaining its position among the top 350 globally. UJ is also recognised as the most improved African institution over the past five years. Earlier, THE Young University Rankings named UJ as the leading university in South Africa and Africa among institutions under 50 years old.



This recognition of UJ in the various global rankings&nbsp;highlights the University’s rapid growth and outstanding potential in the global academic arena. Despite its relatively short history of 20 years of existence, UJ has demonstrated exceptional progress, challenging well-established institutions, some of which have more than a century of legacy, says Letlhokwa George Mpedi, UJ Vice-Chancellor and Principal.



“The University remains steadfast in its commitment to addressing societal challenges through research and knowledge production. “Our progress is not just about numbers and figures; it’s all about the positive and lasting impact we have on our students and the broader society.”

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UJ soars to top its highest-ever position in the global university rankings

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2.png" alt="" class="wp-image-527193" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2-300x200.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2-135x90.png 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2-768x512.png 768w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Mobile money has exploded across African economies as an enabler of financial inclusion by bringing in large swaths of the population that remained unbanked into the fold to participate in economies across the continent.



According to <a href="https://www.gsma.com/sotir/wp-content/uploads/2024/03/GSMA-SOTIR-2024_Report.pdf">GSMA&#8217;s 2024 State of the Industry Report on Mobile Money</a>, registered mobile money accounts grew by 12% to 1.75 billion in 2023 while transaction values for international remittances via mobile money grew to almost $29 billion and merchant payments by 14% to around $74 billion.



Today, consumers can do anything with a mobile wallet that they can accomplish with a traditional bank account or card. In Kenya, where the mobile money market reached <a href="https://www.imarcgroup.com/kenya-mobile-money-market">$133.2 billion</a> in 2023 and M-Pesa holds a <a href="https://african.business/2023/10/african-banker/kenyas-higher-mobile-money-ceiling-risks-fanning-inflation">96.5%</a> market share, consumers can buy groceries from a grocer, purchase goods from the market, pay electricity bills or top up airtime with a simple code from M-Pesa. But, they’re not guaranteed to be able to do so outside of the country, region, or with international properties.



While many of the world’s largest digital merchants have started accepting mobile money payments, most international merchants still do not. This has meant that utilizing mobile money in the global commercial space is cumbersome, resulting in a gap between financial inclusion locally within the continent and access to the global financial system. Essentially, this means that individuals using mobile money can’t do things like make payments on an international airline’s website or pay for a Netflix account, small businesses can’t purchase ads on social media platforms like Facebook or search engines like Google, and content creators can’t get paid by the social media platforms they make content on.



Fortunately, card scheme payment rails have the ability to bridge that gap as cards continue to be the preferred payment method for consumers and merchants alike. That’s why it’s imperative to move beyond the idea that African economies will not adopt cards because of mobile money and instead look towards increased interoperability between mobile money wallets and card networks.



<h2 class="wp-block-heading" id="h-connecting-africa-to-itself-and-the-world">Connecting Africa to itself and the world</h2>



Much like the continent itself, the payments environment in Africa is highly dynamic and diverse. Across individuals and countries, payment types can vary significantly, resulting in a splintered and disconnected payment ecosystem. For example, when purchasing from Takealot in South Africa, consumers have the option to pay by credit card, an electronic fund transfer (EFT) from their bank or use domestic-flavored payment solutions such as PayFast, Ozow or Discovery Miles. However, international merchants or companies would have to integrate with each of these different payment service providers individually in every single economy on the continent in order to cater to a wide range of consumers, which is simply not feasible.



According to the <a href="https://www3.weforum.org/docs/WEF_Defining_and%20Measuring_Interoperability_2022.pdf">World Economic Forum</a>, the varied technical standards, laws and regulations that span countries across Africa contribute to the fact that historically many digital payment methods were closed loops and not interoperable with one another. Additionally, established mobile money interoperability in countries was usually limited to cases such as person-to-person transfers while merchant payments weren’t really considered.



But, advancements in payments interoperability technologies as well as strategic partnerships are facilitating the innovation needed to both achieve the desired convenience, speed and accessibility within the payments space while also enabling merchants to accept payments from and people to make payments to anyone .



Although before, people would need to transfer funds from their mobile wallet to a bank account and then use the bank-issued card to make a payment, this interoperability between the two legacy platforms—mobile wallet and card—means that both individuals and businesses are able to make direct payments by simply linking the two together.



Onafriq’s own partnership and subsequent acquisition of GTP, the number one processor for prepaid cards in Africa, in 2022 underscores the importance of card and mobile wallet interoperability by enabling participation in the global digital commerce environment, connecting traditional card scheme ecosystems such as Visa and Mastercard to the mobile money world.



Now, instead of a prefunded card where money can only be loaded on and not withdrawn, users can easily move money between their card and wallet. And, with digital cards, card networks can now be embedded directly onto the wallet app instead of carrying around a physical card. Even global players like Visa and Mastercard are realizing that the only way to be successful in Africa is to play hand in hand with mobile money clients and cater to their needs &#8211; as evidenced by Mastercard’s <a href="https://techpoint.africa/2024/02/06/mastercard-acquires-minority-stake-momo/">$200 million minority stake</a> in MTN’s fintech division.



<h2 class="wp-block-heading" id="h-making-borders-matter-less">Making borders matter less</h2>



As the world, and Africa, becomes more connected and digitalised, consumers are branching out in terms of where they’re purchasing goods from and merchants are catering to a more global customer base.



As such, African businesses and consumers alike should be able to make payments to any destination easily and through whichever payment channel they prefer. Cross-border payments need to become faster, cheaper, more transparent and accessible, while also ensuring their safety and security.



Payments interoperability between mobile money and cards will enable an ecosystem whereby you don’t need to link different payment methods, systems, and currencies to one another to ensure that no matter where you are, where you’re sending money to, or where you’re purchasing from, there is nothing standing in your way. Ultimately, ensuring that these different payment products are able to understand and speak to each other is enabling a more inclusive and accessible financial services landscape, making it as easy as possible for people to perform transactions in a way that is both affordable and reliable.

Interoperability between mobile money and card is enabling Africa’s access to the global financial system

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1670" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/IMG_0422-Edit-1-scaled.jpg" alt="" class="wp-image-513825" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/IMG_0422-Edit-1-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/IMG_0422-Edit-1-300x245.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/IMG_0422-Edit-1-820x669.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/IMG_0422-Edit-1-110x90.jpg 110w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/IMG_0422-Edit-1-768x626.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/IMG_0422-Edit-1-1536x1253.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Hasan Khan, Standard Bank Group Head of Corporate and Investment Banking, Africa</figcaption></figure>



Africa is at a turning point; with a gross domestic product (GDP) nearing $3 trillion, the continent’s economic and development potential is undeniable. Contained in that growth is the burgeoning East Africa region where we see great potential for additional development.



The African Development Bank Group (AFDB) notes that East Africa is set to grow at a projected 5.1% in 2024 and 5.7% in 2025. The projected growth acceleration of 1.6% in 2024 from 3.5% in 2023 reflects the anticipated strong economic performance of countries in the region, with seven economies projected to grow 5% or more in 2024. The region has relatedly seen an increase in its contribution to the continent’s broader economic growth. According to the Institute for Security Studies (ISS), the region contributed 14% in 2018 and 17% in 2022. This is expected to grow to a projected 29% by 2040. &nbsp;&nbsp;



The East African economy has demonstrated remarkable resilience, buoyed by its diversification efforts, innovative spirit, and collaborative mindset. This region, a shiny jewel in the African crown, has invested heavily in infrastructure development through Public-Private Partnerships (PPPs). Through the concerted infrastructure investment, we have encouragingly seen a progressive move from traditional debt-led infrastructure projects to a joint approach that is cognisant of all parties. We also believe that this is the best way to ensure development that best serves the communities who benefit and use the infrastructure that is built.  In a recent example of this collaborative approach, Stanbic Bank Kenya, as part of the Standard Bank Group, along with MiDA Advisors, announced a partnership with Acorn Holdings, a renowned real estate developer, to facilitate a USD$700 million Kenya Shilling (KES) equivalent in long-term blended finance commitments for green, affordable student housing in Kenya. Upon approval, the transaction will comprise up to USD$180 million commitment from the United States Development Finance Corporation (DFC) and comprise raising funds from Kenyan Capital markets as well, deepening the positive impact of the transaction of the Kenyan Capital Markets and providing an opportunity for investors to participate in this opportunity. The collaboration will result in the construction of 35 certified green housing projects, creating approximately 48,000 new student beds over the next 10 years, making it the single largest investment into student housing in Africa. The initiative will create an estimated 15,000 direct jobs and 35,000 indirect jobs.



As the world seeks to transition to cleaner energy sources, East African countries have been actively utilising their rich natural endowments to harness renewable energy to&nbsp;meet their growing energy demands sustainably. Kenya, Tanzania, Uganda, and Rwanda have been at the forefront of developing&nbsp;solar and wind power over the last decade. It is estimated that by 2050, clean energy could generate over 26 million jobs in Africa.&nbsp;



Beyond the exciting developments in East Africa, the continent will account for eleven of the world’s twenty fastest-growing economies in 2024 according to the AFDB. Real GDP growth for the continent is expected to average 3.8% and 4.2% in 2024 and 2025, surpassing projected global averages of 2.9% and 3.2% respectively.



This makes Africa the fastest growing region after Asia.



In an increasingly fragmented globe experiencing upheaval across geographies, the continent’s influence is growing as traditional powerhouses turn their eyes to emerging markets. This is most notably marked by the African Union’s (AU) recent entry into the Group of 20 nations – now the G21 – a premier grouping of country and regional bloc members shaping international economic cooperation. Populated by the globe’s youngest demographic, Africa boasts the world’s largest free trade area, recently punctuated by the African Continental Free Trade Area (AfCFTA). This has been ratified in 30 countries across the continent. Africa also has vast mineral deposits and natural resources, positioning it favourably for a dominant role in the ever-increasing global energy transition. This transition, dependent on extractive industries, is marked through the growth of alternative energy solutions for electricity and the growing electronic vehicle market, which stands at $15.8 billion, and which is expected to grow to $21.4 billion by 2027, according to market research by Mordor Intelligence. As the continent has grown, so too has the complexity of the requirements for services. African start-ups reportedly raised approximately$1.5 billion during the COVID-19 pandemic in 2020, over $4 billion in 2021, and an estimated $4.5 billion in 2022.



These are fundamental leading indicators which position Africa as the next growth frontier with untapped potential and opportunities for investors looking for long-term diversified value.



In the past, Africa was often regarded as a <a>hegemonic entity </a>that worked and existed in a unitary way. I am certain you have heard some of the stereotypical phrases that accompanied this view, including the term “African economy”.



These views created misperceptions about the real market opportunities that exist on the continent and distorted the risks of doing business here. Certainly, like any intricate society, there are risks to doing business in many African countries, but this is not dissimilar to the reality of doing business in most emerging markets.



Through our insights, we are forging enduring partnerships with clients and governments to drive positive impact and help create the growth which we are slated to see. This includes expanding agri-processing to substituting imports with local content and subsequently championing the expert of soft commodities. Infrastructure is the key backbone for development, and we actively work with partners to invest in the expansion of ports, roads, and rail infrastructure to remove barriers to trade. At Standard Bank, we are not just in awe of the trajectory of this continent we call home, we are actively and passionately shaping it.

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Unleashing East Africa’s growth and tapping into the continent’s potential

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1353" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-476066998-scaled.jpg" alt="" class="wp-image-512888" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-476066998-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-476066998-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-476066998-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-476066998-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-476066998-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-476066998-1536x1015.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Cranes and trucks get ready near a container ship on May 5, 2015 in the Doraleh harbour in Djibouti. AFP PHOTO / CARL DE SOUZA (Photo credit should read CARL DE SOUZA/AFP via Getty Images)</figcaption></figure>



In 2018, the Government of Djibouti forcibly seized Doraleh Container Terminal, a key gateway for trade in the Horn of Africa, a region of 140 million people.



Tribunals in multiple jurisdictions have all ruled in DP World’s favour.



However, the Government of Djibouti appears unmoved by negotiation or legal rulings.



Dubai, UAE, 26 July 2024: DP World welcomes the decision by a US court to enforce a $200 million award against the Government of Djibouti, giving it yet another win in its ongoing legal battle over the ilegal seizure of its concession to run a container terminal in the Red Sea country.



DP World filed the proceedings in the US courts last year, seeking to enforce a third partial award issued by the London Court of International Arbitration (LCIA) over the concession for the Doraleh Container Terminal (DCT). In a decision on Tuesday, the US District Court for the District of Columbia granted the unopposed petition to confirm the partial award issued in 2022.



DCT was seized arbitrarily by the local authorities in February 2018 after they claimed the agreement they had signed unfairly favoured DP World. Those claims were dismissed by judges and arbitrators both in the High Court in England, and before the LCIA.



Built and operated by DP World, the 1.2 million TEU terminal was when built widely recognised as the most advanced container terminal on the east coast of Africa, enabling safe, smooth and efficient movement of cargo in and out of the country. It remains Djibouti’s largest source of revenue and the country’s single biggest employer, responsible for creating thousands of jobs – both direct and indirect – for the local community. Under DP World, it operated at a profit every year.



A prolonged battle has ensued in courts in multiple jurisdictions, with every one finding in favour of DP World. Damages already awarded for lost dividends, breaches of exclusivity and management fees now amount to nearly $700 million.&nbsp; In the event of a total expropriation, DP World’s claim will exceed a further billion US dollars.



DP World has vowed never to stop its ongoing legal battle, until the return of its port concession in Djibouti or it receives full compensation for its lost investment.



A spokesperson for DP World said: “The authorities in Djibouti have repeatedly shown an utter contempt for the rule of law and the norms of good business, with no respect for legal agreements. Their actions are a warning to investors across the world who should think twice about the safety of their existing business in Djibouti and the future value of any new investments.&nbsp; Put simply, the Djibouti government is bad for business.”



DP World has been in Africa for 20 years – investing in critical infrastructure to enable trade. In Sub-Saharan Africa, it employs more than 27,000 people across 48 countries, with a total container handling capacity of over 2 million TEUs year in Somaliland, Senegal, Angola and Mozambique.

DJIBOUTI-ECONOMY-TRANSPORT

US court enforces $200M award against government of Djibouti over illegal port seizure

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1280" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/thumbnail_IMG_3884-1.jpg" alt="" class="wp-image-508988" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/thumbnail_IMG_3884-1.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/thumbnail_IMG_3884-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/thumbnail_IMG_3884-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/thumbnail_IMG_3884-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/thumbnail_IMG_3884-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/thumbnail_IMG_3884-1-1536x1024.jpg 1536w" sizes="auto, (max-width: 1920px) 100vw, 1920px" /><figcaption class="wp-element-caption">Bill Blackie, CEO of Business &amp; Commercial Banking, Standard Bank Group</figcaption></figure>



More needs to be done to stimulate the growth of small, medium, and micro enterprises (SMEs), as well as boost intra-African trade, for the continent’s huge potential to be unlocked, Bill Blackie, CEO of Business and Commercial Banking at Standard Bank told over 200 delegates at the inaugural Standard Bank Business and Commercial Banking Conference which took place in Cape Town on 11 and 12 July. 



“We see significant opportunities in East Africa in particular,” Blackie said, where growth rates of 5% are predicted for this year. “We believe all the 20 African countries in which the Group has a presence in West, Southern and East Africa have the potential to grow further.”



<h2 class="wp-block-heading" id="h-afro-optimism">Afro-optimism</h2>



One of the reasons underpinning his optimism is the rapid growth rate predicted for Africa’s population, as well as the fact that Africa has the highest percentage of young people that will bring with it robust and inclusive growth. “However, for us to take advantage of this youth dividend, we need to develop the skills of Africa’s young people,” he added.



Sharing a similarly positive view of the future, Adrian Basson, CEO of Hungry Lion, said Africa’s population is set to quadruple from one billion today to four billion in 2100. “If you ran a fast-food business in Japan, would you want to be operating in a country where the population is set to decline from 120 million to 80 million in the next few decades or would you rather see your customer base grow, as in Africa?” Even though Africans may not have as much discretionary spending, the growth trajectory is in the continent’s favour, he said, especially as most of the population’s growth will be among the working class.



<h2 class="wp-block-heading" id="h-greater-regional-integration">Greater regional integration</h2>



On the topic of regional integration, more should be done to spur intra-African trade, which despite the establishment of the African Continental Free Trade Area in 2019, only accounts for 15% of overall trade in Africa, Standard Bank CEO Sim Tshabalala said. “We need to develop a pan-African payment system which will facilitate the movement of goods. It does not make sense to be paying in dollars when businesses can be paying in local currency.”



A firm believer in “action at the speed of thought,” Basson said small- and medium-sized enterprises (SMEs) need to translate their ideas into action more quickly and remove obstacles to innovate. This nimbleness is reflected in the increasing levels of urbanisation among the continent’s population and the shift in demographics in favour of younger people.



As testament to the power of youth, Kenya has recently seen a vibrant youth movement rise and its parliament back-tracking because of the opposition of young voters to a controversial bill which sought to hike taxes, asserted Patrick Mwhierhe, Regional Chief Executive East Africa at the Standard Bank Group. “Young people took to social media to protest, and their voices were heard,” he said. “They were effectively telling government they do not want to be given a job. They just want the government to get out of their way by creating an enabling environment for them to create their own jobs.” This clearly indicates the embodiment of the spirit of a generation poised to redefine the economic future of their nation.



Basson said the next 76 years will be an exciting time to be doing business in Africa. “By 2100, 40% of the world’s population will be African,” he said, “most of whom will be of working age.” This contrasted sharply with other regions like Europe, the US and Asia whose populations by 2100 will be ageing. “There’s no reason why Africa can’t become the economic engine for the rest of the world just as China did,” he said.



<h2 class="wp-block-heading" id="h-energy-and-infrastructure">Energy and infrastructure</h2>



Another reason to be optimistic about Africa’s future is its untapped energy potential, Blackie said, which includes both fossil fuels and renewable energy, such as solar, wind and hydro energy. “We aim to invest R250 billion in renewable energy projects in Africa over the next few years,” he stated. “Without energy, economic growth is not possible, which is why we are focusing on energy and sustainability for growth.”



In addition to removing trade barriers and investing in energy projects, Blackie said Standard Bank was encouraged by the higher levels of infrastructure spending in Africa. “Every country I have visited on the continent recently is spending money on improving infrastructure, be it on improving roads, ports, or airports. This is another fundamental lever for growth.”



<h2 class="wp-block-heading" id="h-local-procurement-and-sme-growth">Local procurement and SME growth</h2>



Africa should focus on getting a greater slice of the global economic pie and conquer its biggest challenge: creating jobs, Basson said. “Rather than figuring out how to move goods across borders, businesses should source local suppliers,” he stated. “In Zambia, 97% of our supplies are locally procured.”



For African economies to grow, SMEs need to flourish, said Simone Cooper, Head of Business and Commercial Banking at Standard Bank. “In the face of significant challenges, SMEs continue to be the backbone of most African economies, accounting for 60% of jobs in sub-Saharan Africa and playing a crucial role in community upliftment.”



Blackie concurred. “As a bank, we act as an intermediator to help finance businesses, but entrepreneurs are what drive economic growth,” he said. “It’s the entrepreneurs who see the gaps, connect the dots and venture where others fear to tread, so that opportunities can be unlocked and converted into tangible possibilities.”

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Focus on small-business growth to unlock Africa’s potential

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/wmp-9109-820x547.jpg" alt="" class="wp-image-508505" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/wmp-9109-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/wmp-9109-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/wmp-9109-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/wmp-9109-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/wmp-9109-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/wmp-9109-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Rassem Zok &#8211; Chief Executive, Middle East, Standard Bank Group</figcaption></figure>



Africa has made significant progress in terms of infrastructure development, committing billions of dollars to improve its transportation, energy, water, and digital networks. This infrastructure boom is crucial for boosting economic growth, creating jobs, and reducing poverty across the continent. With the right investments and reforms, Africa can build the modern infrastructure needed to boost trade, create jobs, and transform the continent&#8217;s economic prospects.



Yet current investment still falls far short of demand. According to the African Development Bank, the continent has a $100 billion annual shortfall in infrastructure financing. This infrastructure gap is not only impacting lives today, but also significantly curtailing the continent’s potential for economic, entrepreneurial, and developmental progress. The African Union estimates that inadequate infrastructure has led to the reduction of national economic growth by 2% annually in most African countries and as much as 40% reduction in industrial productivity.



If we manage to close this gap, we unlock the immense potential of infrastructure – and especially sustainable infrastructure – to drive growth and development on the continent. There is a real desire amongst state-owned companies (SOCs) to do so, and an increasing awareness amongst investors of the alignment of interests that opportunities in African infrastructure represent.



We have noticed, in particular that Gulf Cooperation Council (GCC) countries have stepped up their investments in Africa as they look to diversify their own economies. The GCC&#8217;s strategic policy priorities and economic diversification interests align perfectly with the opportunity to support Africa&#8217;s development agenda, and the GCC is equipped with the technical expertise and financial resources necessary to bridge Africa’s investment gap through innovative public-private partnerships (PPPs).



Over the past decade, the GCC has emerged as a major investor across Africa, with a growing number of trade deals finalised that significantly benefit both regions. Dubai is increasingly establishing itself as the gateway to African investment. Investing in Africa, and developing relationships with SOCs and financial institutions, allows GCC nations to access new markets, expand business operations, and secure access to abundant natural resources. The GCC states generally have superb relationships with many of the 20 countries in which our Group has a universal presence, which is an important foundation for the development of effective PPPs and direct investment projects.



&nbsp;Iconic transactions of late include the acquisition of Imperial Logistics, a South African logistics operator, by DP World, the global infrastructure-led supply chain solutions provider based in Dubai. As a result of this transaction, DP World gained a stronger foothold in Africa and Imperial Logistics benefitted from DP World&#8217;s leading technology, global networks, and key trade-lane volumes. It’s a win for DP World and Imperial Logistics – the two are clients of the bank.



Another success has been our partnership with DP World to offer trade finance solutions to African SMEs, which will help in closing the gap in unmet demand for working capital on the continent. This partnership reflects our strategic vision of driving Africa’s growth, and is a demonstration of our commitment, as Africa’s largest bank, to the transition of financial services to platform-based ecosystems and to the improvement of client experiences.



ESG and the broad-scale sustainable impact of our work is a key focus area for Standard Bank, and this aligns with the appetitive for sustainability that we’ve seen from the UAE. UAE investors are sophisticated supporters of the vision of more circular economies and are making a demonstrable impact in enabling a just transition for the continent.



Spurred by the benefits of economic diversification, GCC countries are actively investing in high-growth sectors such as clean energy, manufacturing, and logistics, while also committing to sustainable development projects including food and water security. Against this backdrop, the opportunities in African infrastructure align seamlessly with the GCC states&#8217; multi-sectoral investment appetite.



We have, for the past four years, facilitated the State-Owned Company Investment Summit, which introduces large sovereign-owned companies to investors from the MENA region. Each year we record tangible, significant successes as a result of the summit.



It was as a result of last year’s Investment Summit that Standard Bank was able to facilitate a unique syndication facility for the Development Bank of Southern Africa in the UAE. The US$255 million facility was the first of its kind to be successfully accessed by a South African state-owned entity in the UAE and broader Middle East/North Africa (MENA) markets, representing a milestone for both DBSA and for South African fundraising initiatives in the UAE.



Standard Bank and UAE-based Mashreq were joint lead mandated arrangers in a deal which was oversubscribed, demonstrating significant market interest from UAE investors and the MENA broader region. The DBSA mandated Standard Bank to act as the mandated lead arranger to anchor and raise US dollar liquidity to diversify its global investor base.



Standard Bank is actively involved in supporting effective PPPs by demonstrating the economic value that derives from these projects, and through the rigorous governance structures that we’ve optimised. Risk is managed through an end-to-end process that takes deep cognisance of the value chains that are required for doing business in Africa, and which gives our partners comfort and security and the confidence to engage in these beneficial transactions.



There is nothing exceptional in terms of the risk projects face in Africa. What is unique is the degree to which local knowledge is able to ameliorate risk. In more mature markets, there isn’t the same degree of guidance required. In Africa, an experienced hand guiding the process is far more valuable.



Doing business in Africa requires an understanding of cultural sensitivities and experience as to what works. Africa is not a country: it is a continent made up of 54 disparate nations with unique operating environments. Our continental expertise is born of on-the-ground experience and a commitment to innovative, world-leading funding and risk-management solutions.



We believe in Africa, and we&#8217;re committed to its success. The vast proportion of our balance sheet is deployed in Africa. We have 50 000 experienced, knowledgeable staff who drive our return on equity. We have a universal presence in 20 African countries. We have offices in Dubai, Beijing, London and New York, and expect our new representative office to be opened in Egypt by year end. This will allow us to capitalise on the significant emergence of the Gulf–sub-Saharan-Africa–Egypt corridors, and further support our clients in those corridors.



The future looks bright for the cross-border opportunities available across Africa. As the largest bank in Africa, our largest stakeholder, in a sense, is the continent itself. That awareness drives our partnerships with multinationals, regional corporates, state structures and sovereign funds to enable cross-border flows – because they are critical catalysts of African growth and significant opportunities for value creation.

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Unlocking continental potential: The importance of local knowledge in African infrastructure investment

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240709_HM-At-Mastercard-Foundation-EdTech-Conference-2024-Day-2-4498-scaled.jpg" alt="" class="wp-image-508128" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240709_HM-At-Mastercard-Foundation-EdTech-Conference-2024-Day-2-4498-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240709_HM-At-Mastercard-Foundation-EdTech-Conference-2024-Day-2-4498-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240709_HM-At-Mastercard-Foundation-EdTech-Conference-2024-Day-2-4498-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240709_HM-At-Mastercard-Foundation-EdTech-Conference-2024-Day-2-4498-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240709_HM-At-Mastercard-Foundation-EdTech-Conference-2024-Day-2-4498-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240709_HM-At-Mastercard-Foundation-EdTech-Conference-2024-Day-2-4498-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /></figure>



Abuja, Nigeria, July 15, 2024 – About 600 stakeholders from over 30 countries in Africa and beyond came together from July 8 to 10 at the inaugural Mastercard Foundation EdTech Conference in Abuja, Nigeria, to discuss education technology for resilient and inclusive learning in Africa. Participants reached a consensus that integrating technology into learning systems in Africa is now a necessity, not a luxury.



Hosted in partnership with the Federal Government of Nigeria, the conference concluded with a collective call to action on 10 recommendations for governments and other EdTech stakeholders.



“Investing in education in Africa is not only about Africa; rather, it is about investing in human capital for the world. It is also about building resilience in our learning systems to better prepare us for future shocks such as the recent COVID-19 pandemic. This is why the Mastercard Foundation is committed to working with partners to scale education initiatives and enable innovations that foster the integration of technology into learning systems,” Peter Materu, Chief Program Officer at the Mastercard Foundation, told participants while underscoring education as the key to building an inclusive and resilient society and the urgent need for investments in education to skill Africa’s young people.



Nigeria’s Federal Minister of Education, Prof. Tahir Mamman, stated, &#8220;technology isn’t just a tool; it is a powerful incentive that empowers students and ignites their passion for learning.”



“Inclusion is the cornerstone of EdTech,” added Dr. Bosun Tijani, Nigeria’s Federal Minister of Communications, Innovation and Digital Economy. “If we fail to reach all learners, we fail to fulfill our potential to revolutionize education.”



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1345" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240708_HM-At-Mastercard-Foundation-Edtech-3332-1-scaled.jpg" alt="" class="wp-image-508129" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240708_HM-At-Mastercard-Foundation-Edtech-3332-1-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240708_HM-At-Mastercard-Foundation-Edtech-3332-1-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240708_HM-At-Mastercard-Foundation-Edtech-3332-1-820x539.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240708_HM-At-Mastercard-Foundation-Edtech-3332-1-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240708_HM-At-Mastercard-Foundation-Edtech-3332-1-768x504.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240708_HM-At-Mastercard-Foundation-Edtech-3332-1-1536x1009.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /></figure>



Participants proposed the following recommendations as guidance to national decision-making to advance the building of an impactful EdTech ecosystem in Africa.



<ol class="wp-block-list">
<li>Champion local innovation through supportive EdTech policies, with governments as leaders, proactive enablers, and consumers of quality content and delivery mechanisms.</li>



<li>Harmonize cross-sector policy by coordinating inter-ministerial strategies, plans, and initiatives on technology-enabled access to education for all.</li>



<li>Underwrite foundational infrastructure through creative use of resources such as Universal Service Funds to invest in electricity, the internet, devices, and dedicated infrastructure for education programs.</li>



<li>Drive decisions with data by investing in government systems and capabilities for timely collection, analysis, and informed decision-making.</li>



<li>Enhance delivery capacity along the EdTech value chain by upskilling teachers to deliver learning using EdTech and supporting leaders in education systems to work with tech-enabled processes and data.</li>



<li>Systematize EdTech integration by introducing (where nonexistent) and enforcing clear, context-relevant standards for technology integration into the educational curriculum.</li>



<li>Guide context-relevant innovation with clear and timely guidelines and approval processes for content, tools, and licenses to encourage innovation, investment, and technology mainstreaming.</li>



<li>Diversify learning pathways for out-of-school youth by developing flexible technology-enabled alternatives for learning, accredited certification, and re-entry to the formal education system.</li>



<li>Lower access barriers to EdTech through strategic private-public partnerships that support responsive, evidence-based policy and affordable solutions for all.</li>



<li>Embed responsive inclusivity (gender equity, persons with disabilities and refugees and displaced persons) in policy and innovation processes, centering and engaging diverse young people throughout development and delivery.</li>
</ol>



Referencing the African Union’s 2024 Year of Education, discussions at the conference focused on the state of EdTech in Africa, assessment of technology-enabled solutions to the continent’s education challenges, data evidence, collaborations, funding, and opportunities to tap into emerging technologies to accelerate the skilling of young people, particularly young women.



Dr. Jamila Bio Ibrahim, Nigeria’s Federal Minister of Youth Development, emphasized the need to prioritize inclusiveness in education reform. “All voices, especially voices of young women, need to be included in the formulation of policies for them to be effective,” she noted.



The African Union’s Special Youth Envoy, Chido Mpemba, noted that “accessible innovations can be global in outlook while also being deeply rooted in the needs of Africa’s young population.”



African-led EdTech entrepreneurs exhibited their solutions at the conference to demonstrate how efforts to encourage impactful education innovation can deliver the future of learning.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240709_HM-At-Mastercard-Foundation-EdTech-Conference-2024-Day-2-3991-3-scaled.jpg" alt="" class="wp-image-508134" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240709_HM-At-Mastercard-Foundation-EdTech-Conference-2024-Day-2-3991-3-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240709_HM-At-Mastercard-Foundation-EdTech-Conference-2024-Day-2-3991-3-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240709_HM-At-Mastercard-Foundation-EdTech-Conference-2024-Day-2-3991-3-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240709_HM-At-Mastercard-Foundation-EdTech-Conference-2024-Day-2-3991-3-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240709_HM-At-Mastercard-Foundation-EdTech-Conference-2024-Day-2-3991-3-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/240709_HM-At-Mastercard-Foundation-EdTech-Conference-2024-Day-2-3991-3-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /></figure>



The recommendations from the conference were shared at the 3rd Ministerial Forum on EdTech in Africa, which took place at the conclusion of the conference. Three of the recommendations were prioritized for concrete action between now and the next Forum:



⦁ Developing strategies and policies to integrate EdTech into learning systems. ⦁ The need to enhance quality education data and accompanying analytical skills for evidence-based decision-making. ⦁ Addressing the challenge of out-of-school children and youth in Africa, which currently stands at 108m and is growing.



Through its Centre for Innovative Teaching and Learning, the Mastercard Foundation strategically partners to foster innovation, share best practices, conduct research, and convene events such as the EdTech Conference to advance inclusive education, especially for underserved learners. Speaking about the recently concluded conference in Abuja, Joseph Nsengimana, the Director of the Mastercard Foundation Centre for Innovative Teaching and Learning, said, “The collective commitment to advancing education through the power of technology promises to significantly transform the educational landscape, ensuring that Africa&#8217;s youth are well-equipped for the future.”



The next EdTech Conference is planned for 2026, the year the Mastercard Foundation marks its 20th anniversary.

240709_HM-At-Mastercard-Foundation-EdTech-Conference-2024-Day-2-4498-2

Mastercard Foundation EdTech Conference in Abuja Ends with 10 Recommendations for Delivering the Future of Learning in Africa

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McDonald’s South Africa and its suppliers emphasized their transparency journey, aimed at educating customers about the quality and sustainable sourcing of its food.



The customer of today is increasingly interested in where their food comes from, what is in it and how it is prepared. These questions are easily answered when the food is prepared by them in their homes but this is nearly impossible when it’s not.



Food consciousness continues to influence market maturity amongst customers who have shifted from the narrative of aesthetically-pleasing food to a more responsible consumer outlook.



This trend, which has given rise to heightened individual senses of responsibility when it comes to where food comes from, means that customers now care more about the value chain and what goes into their meals. Factors such as sustainability, sourcing, farming techniques, packaging and the actual nature of the ingredients continue to be heightened and influence where customers buy their meals.



“We are cognisant of our customers&#8217; needs. Increasingly, our customers are very discerning about the food they consume. They want transparency and more information to make informed food choices. Through Know Our Food, we hope to demonstrate our pride in the food we serve to them,” says Daniel Padiachy, Chief Marketing Officer at McDonald’s South Africa.



“Our top priority is serving customers great-tasting, quality food. We believe in serving food in a way that supports quality ingredients, as well as sourcing beef, chicken and fresh produce from farmers who share the same values as we do.”



McDonald’s sources from, invests and collaborates with partners and suppliers who align with these values, while supporting projects and initiatives designed to help build a thriving, resilient food system.



Here are just a few of the supplier partnerships:



<ul class="wp-block-list">
<li>Beef is sourced from beef farmers in South Africa, such as the Fouries, who are committed to ethical and sustainable farming practices.</li>



<li>The Rametses are one of the nurturing chicken farmers who provide great quality chicken for the much-loved McDonald’s chicken meals.</li>



<li>McDonald’s takes its coffee seriously – from it’s sourced to how it’s brewed. That’s why every freshly-ground McCafé® coffee uses 100% responsibly-sourced Arabica beans grown on Rainforest Alliance Certified™ farms.</li>
</ul>



“‘Know Our Food’ represents our on-going commitment to transparency and customer satisfaction; we want our customers to feel confident about the food choices they make at McDonald’s, knowing that we prioritize quality, food safety, transparency, and responsible sourcing,” concludes Padiachy.



To learn more about the McDonald’s ‘Know Our Food’ initiative, please visit <a href="http://www.knowourfood.co.za">www.knowourfood.co.za</a>.

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Brandcom Partner

NGN150mn worth of securities loaned to local and international clients in 2023

McDonald’s South Africa is donating over a million children’s books to deprived schools and ECD’s across the country

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OR Tambo SEZ: contributing to the stimulation of fuel cell and hydrogen localization

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