<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="620" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/Amith-Singh-1-820x620.jpg" alt="" class="wp-image-465039" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/Amith-Singh-1-820x620.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/Amith-Singh-1-300x227.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/Amith-Singh-1-119x90.jpg 119w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/Amith-Singh-1-768x581.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/Amith-Singh-1-1536x1162.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/Amith-Singh-1.jpg 1572w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Amith Singh, Head of Energy Finance at Nedbank</figcaption></figure>



&#8216;South Africa’s energy landscape is undergoing a significant transformation as independent power producers (IPPs) and offtakers seek new ways to access reliable and affordable electricity. As this quest intensifies, a pivotal player has emerged: the energy aggregator,&#8217; writes Amith Singh, Head of Energy Finance at Nedbank.



Mining, a cornerstone of South Africa’s economy, is undergoing an energy revolution driven by the need for energy security, tariff certainty and decarbonisation. Energy aggregators are the key players behind this evolution.



Aggregators are entities that bridge the gap between electricity generators and consumers. They buy electricity from multiple IPPs and sell it to various offtakers, including mining companies, industrial users, municipalities, and even Eskom. Their modus operandi involves using the existing transmission and distribution grid to &#8216;wheel&#8217; power from generation points to consumption sites, all while paying a wheeling fee to the grid operator. By combining the demand of multiple consumers into a single large volume, aggregators can negotiate better tariffs and terms with the renewable energy generators.



Since aggregators typically work with commercial and industrial consumers, their model also makes sense for mining and industrial companies with a multitude of sites. Negotiating bilateral deals for each mine with IPPs is time-consuming, and aggregators can help them to scale much faster. This model may also provide some flexibility in tenor of the power purchase agreement (PPA).



The percentage of renewable electricity that mines can achieve will be much higher if they use an aggregator to mix and match different projects to supply their energy. It’s hard to imagine the energy sector progressing without aggregators optimising distribution and enhancing market efficiency and accessibility.



The Electricity Regulation Amendment Bill, currently before the National Assembly, aims to create a competitive electricity market and points the way to a distributed model with multiple buyers and methods of generation.



However, in South Africa, our energy mix still has the highest carbon intensity in the world since Eskom electricity is produced primarily through coal-fired generation. Expert calculations suggest the least-cost development plan for a reliable and affordable electricity supply in South Africa involves a massive overbuild of solar, lots of wind and storage capacity, and natural gas as a form of peaking or mid-merit power.



It is in this landscape that aggregators will be a fundamental part of a liberalised energy market, not only for large consumers such as mines and industrial users, but for everyone. The change is already well underway. South African’s energy crisis coincided with the global climate crisis, forcing major industrial and mining complexes to make net-zero commitments. The result is accelerating procurement of new capacity on a scale that is consistent with the growth of renewable energy projects around the world.



Most of the utility-scale projects with an aggregator model are at various stages of implementation with an expected capacity of more than 10 GW. The Energy Council of South Africa estimates that the connection of new utility wind and solar projects will continue to scale up.



The stakes are high as mining accounts for about 8% of GDP and 40% of foreign currency inflows. And while decarbonisation is necessary for the planet, it is also existential because customers in the mining industry expect mines to do it.



Beyond mining, decarbonised electricity is vital for anyone in the exporting business, and part of a big global corporation or raising finance internationally. Most of the mining companies are aiming to become carbon-neutral by 2030, and some by 2050.



For now, and probably for quite a while, a renewable energy supply will also deliver savings. But it might be a challenge for some companies to sign 15-year or 20-year power PPAs because of the unwanted effects on their financial results and balance sheets. One of the benefits introcuced by the aggregator model is the flexibility in respect of the PPA/offtake agreement tenor as the aggregators will have portfolios of offtakers among which they can reallocate the power in case some of the short PPAs/offtake agreements are not renewed.



In this market, IPPs will focus on providing long-term sustainable generation opportunities to aggregators or traders as alternatives to Eskom or bilateral deals with large offtakers. For now, this is a fledgling market that is growing substantially, and we will see more projects closing in the near future.



As the market matures, aggregators will become more efficient in offering flexibility to offtakers in mining and elsewhere. They will be able to financially derisk projects, physically derisk them through demand and supply diversification, and provide system stability to utilities and customers.



With multiple sites, technologies and geographies, full ecosystem optimisation becomes possible. The excess energy that is often present in a bilateral PPA is reduced and costs fall.



It’s foreseeable that a fully fledged trading and aggregation market will go forward as it will provide offer energy users with affordable power while at the same time assisting them to meet their decorbaisation commitments.



In most of the renewables projects that Nedbank finances, there is some element of grid construction, and the private sector has been able to do it efficiently and use the funding of the total project costs to provide it. We know the Energy Council and the National Energy Crisis Committee (Necom) are in discussions with Eskom about privatisation models for grid construction, and we hope the private sector can play a role in the new National Transmission Company (NTCSA) and also in the implementation of the plans outlined in the Eskom Transmission Development Plan.



It will also be important to understand the NTCSA’s costs because the sustainability of the grid is what makes aggregation work. We have to enable transmission and distribution to ensure we have supply certainty over long periods and more capacity to solve the massive grid issue. We must also remember that a significant portion of &#8216;last mile&#8217; infrastructure belongs to municipalities, where the risk is large.



The wider risks lie around the novelty of this system. Aggregators are new in the market, and it will take a little time before they work efficiently. Investors faced with these intermediary entities will have to make sure they can be trusted and are well managed. And there is an element of risk in the regulatory framework that is covering issues such as the wheeling system, wheeling rules, and access to the grid. If regulations change disruptively, it will be seen as a risk by investors.



The Necom working groups and Eskom are working hard on the new market rules and, while nothing has been finalised as yet, there is clarity on the objectives.



We have the benefit of learning from other countries that have already liberalised their energy markets (i.e. European countries), and we can use their markets as our reference point in our journey to reberalise the South African electricity market.



For now, companies that can offer balance sheet guarantees are driving these projects, but ultimately the benefits that aggregators offer will be felt by every South African.



As Nedbank CIB, the lead financier in the energy space, we fully support the aggregator model and are already leading financing projects on the aggregator model.

Amith-Singh-1

The critical role played by aggregators in mining decarbonisation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/DSC_6437-820x547.jpg" alt="" class="wp-image-461463" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/DSC_6437-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/DSC_6437-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/DSC_6437-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/DSC_6437-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/DSC_6437-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/DSC_6437-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



On the 5th of February 2024, Enaex Africa participated in the 30th annual Mining Indaba, focusing on the theme &#8220;Embracing the power of positive disruption: A bold new future for African mining.&#8221;



This theme underscores the necessary adaptations required in the African mining sector through technological advancements to address current challenges.



Industry leaders highlighted the imperative need to enhance efficiency and reduce costs amid the challenging market characterized by high inflation, reduced demand, and low commodity prices.



<h2 class="wp-block-heading" id="h-embracing-the-power-of-positive-disruption-a-bold-new-future-for-african-mining">&#8220;Embracing the power of positive disruption: A bold new future for African mining.&#8221;</h2>



As the third largest explosives company, Enaex strategically positions itself as a leader in the industry that is able to adapt to technological advancements within the mining industry.



Over a year ago, Enaex Africa inaugurated the DaveyTronic® plant in Secunda, introducing crucial technological capabilities to the African continent. This not only allowed for the training of local professionals but also marked a shift towards local manufacturing, reducing dependency on imported electronic initiation systems and improving cost efficiency.



<h2 class="wp-block-heading" id="h-the-daveytronic-plant-allows-for-local-technological-training-advancements">“The DaveyTronic® plant allows for local technological training advancements.”</h2>



Enaex Africa is making significant investments in Artificial Intelligence (AI), automation, and new technologies to enhance business processes and support clients in increasing efficiency and reducing costs.



The establishment of a partnership with Stellenbosch University aims to fast-track the development of AI-enabled technologies, robotics, and automation in South Africa. This collaboration is expected to contribute to the growth of core engineering capabilities and skills among locals.



Sustainability remains at the forefront of Enaex Africa&#8217;s initiatives. The company continues to extend successful Corporate Social Responsibility (CSR) programs, with a focus on education and PDI development since its inception in 2020.



Enaex Africa is committed to investing in the production of Green Ammonia, a product that counteracts regular ammonia by reducing CO2 emissions, showcasing their dedication to environmental conservation.



<h2 class="wp-block-heading" id="h-the-introduction-of-green-ammonia-to-enaex-africa-will-combat-co2-emissions">“The introduction of Green Ammonia to Enaex Africa will combat CO2 emissions”</h2>



The future deployment of teleoperations and robotics is a central focus for Enaex Africa, where its fundamental value &#8220;Our Priority: Life&#8221; is ingrained.



This advanced technology not only eliminates the risk of human fatality from challenges such as underground instabilities but also positions Enaex as the first company to offer remote blasting solutions, revolutionizing the blasting process.



<h2 class="wp-block-heading" id="h-taking-people-out-of-the-ground-to-ensure-a-safe-working-environment">“taking people out of the ground to ensure a safe working environment.”</h2>



Enaex Africa undergoes an annual evaluation for The Dow Jones Sustainability Index (DJSI), consistently scoring in the 91st percentile, placing the company in the top 10% of performing companies in the sustainability field.



<h2 class="wp-block-heading" id="h-enaex-africa-in-the-top-10-of-performing-companies-for-dow-jones-sustainability-index">“Enaex Africa in the top 10% of performing companies for Dow Jones Sustainability Index”</h2>



In addition to environmental efforts, Enaex Africa takes strong steps towards caring for its employees and surrounding communities, emphasizing upskilling initiatives and the introduction of autonomous and robotics systems to create job opportunities, including those for individuals with physical disabilities.



<h2 class="wp-block-heading" id="h-new-autonomous-and-robotic-systems-can-create-more-job-opportunities-in-the-african-mining-industry">“New autonomous and robotic systems can create more job opportunities in the African mining industry”</h2>



Educational upliftment is also a priority for Enaex Africa, demonstrated through CSR projects such as the renovation of Bohlale Day Care in Ga-Phasha village. This project involved renovating classrooms, building new ablutions, starting a feeding scheme, and providing training initiatives.



Women&#8217;s empowerment and gender equality are strong focuses of Enaex, aiming to increase the representation of women in the mining industry, considering the lack of significant change in the field&#8217;s representation.



<h2 class="wp-block-heading" id="h-enaex-africa-focus-on-women-empowerment">“Enaex Africa focus on women empowerment.”</h2>



Established as a subsidiary of Enaex and forming a joint venture with Sasol in July 2020, Enaex Africa is a world-class blasting services company currently ranked among the top explosive companies globally.



Looking ahead, the company envisions growth and prominence in the African mining industry through embracing technological innovation, the maintenance of community relations, and a commitment to sustainability and cost efficiency.



<h2 class="wp-block-heading" id="h-enaex-africa-aims-for-success-in-the-african-mining-industry-through-its-innovation-and-sustainability">&#8220;Enaex Africa aims for success in the African mining industry through its innovation and sustainability.&#8221;</h2>

DSC_6437

Embracing the Power of Positive Disruption: Enaex Africa’s Focus on Future Sustainability and Key Business Achievements at Mining Indaba 2024.

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="608" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/Nivaash-Singh-820x608.png" alt="" class="wp-image-461460" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/Nivaash-Singh-820x608.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/Nivaash-Singh-300x222.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/Nivaash-Singh-121x90.png 121w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/Nivaash-Singh-768x570.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/Nivaash-Singh.png 1072w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Nivaash Singh, Co-Head: Mining and Resources Finance at Nedbank CIB.</figcaption></figure>



The mining sector stands at the forefront of the fight against climate change and is supported by innovative financing mechanisms such as &#8216;green loans&#8217;. However, a delicate equilibrium must be struck because, while mining fuels the transition to renewable energy, it simultaneously relies on minerals that are crucial for clean technologies. As the industry navigates this intricate landscape, enabling responsible mineral extraction becomes paramount, writes Nivaash Singh, Co-Head: Mining and Resources Finance at Nedbank CIB.



Mining has always been more than just extracting minerals from the ground. In South Africa it remains a significant part of the economy, as well as a major employer, exporter, and a driver of infrastructure development. However, today’s mining companies grapple with the dual challenge of adapting to global warming while ensuring the resilience and sustainability of their operations.



These efforts extend beyond merely reducing carbon emissions. Mining companies now address water management, biodiversity conservation, supply chain resilience, community engagement, and regulatory compliance. In the formal sector mining companies have taken substantial steps toward cleaner, greener, and more accountable operations. They adhere to local and international laws and onerous listing requirements. For instance, the Canadian Securities Administrators mandate that mining companies must report relevant information on environmental, permitting, and social factors related to mineral exploration, development, and production activities. The Toronto Stock Exchange also emphasises this in its listing standards for mineral exploration and development-stage mining companies.



<h2 class="wp-block-heading" id="h-sustainability-linked-loans-a-new-paradigm">Sustainability-linked loans: a new paradigm</h2>



Mining companies that raise sustainability-linked loans undergo periodic evaluations by lenders. These evaluations focus on carefully constructed key performance indicators (KPIs) that are directly linked to the climate impact of mining operations and improved governance. By aligning funding with sustainability goals, financiers encourage mining companies to invest in environmentally beneficial projects.



<h2 class="wp-block-heading" id="h-favourable-terms-and-conditions">Favourable terms and conditions</h2>



Sustainability-linked loans and green loans come with more favourable terms and conditions than traditional financing options, provided targets are met. These benefits include lower interest rates, extended repayment periods, and potentially reduced fees. The intention is clear: to facilitate the transition towards more sustainable practices in the mining sector.



<h2 class="wp-block-heading" id="h-consequences-for-high-carbon-emitters">Consequences for high-carbon emitters</h2>



For mining companies emitting high concentrations of carbon and neglecting their environmental, social and governance (ESG) responsibilities, the future is challenging. Accessing capital in debt and equity markets will become increasingly difficult. Buyers worldwide are prioritising climate-conscious supply chains, making it imperative for mining companies to address their carbon footprint.



<h2 class="wp-block-heading" id="h-transparency-and-accountability">Transparency and accountability</h2>



Stakeholders often express scepticism about the accuracy of ESG reporting. To address these concerns, mining companies must enhance transparency and accountability. But there’s a more valuable currency beyond reports: the social license to operate. Communities affected by mining operations should be compensated and actively engaged in decision-making processes. Earning this social license is paramount.



<h2 class="wp-block-heading" id="h-the-social-license-to-operate-a-precious-commodity">The social license to operate: a precious commodity</h2>



The social license to operate allows a mining company not only to establish operations in a specific area but also to operate alongside local communities while extracting minerals for profit. A robust social licence hinges on trust between the company and these communities. Trust is built through actions that are rooted in integrity, sincerity, fairness, and the ability to make and deliver on commitments.



When a mining company holds a firm social licence, its ESG reporting is readily accepted by stakeholders without scepticism. Conversely, without this trust, even the most transparent ESG reports may fall short. Therefore, the single most critical approval rating or operating credential for any mining company lies in its social licence to operate.



<h2 class="wp-block-heading" id="h-kenmare-resources-a-model-for-success">Kenmare Resources: A model for success</h2>



London-listed Kenmare Resources exemplifies this principle. As the sole owner of the Moma Mine in the north-eastern parts of Mozambique, Kenmare produces 7% of the world’s titanium feedstocks (ilmenite and rutile) and zircon. With an estimated lifespan of over a century at current production levels, the company has gone to great lengths to ensure that the local community walks its journey alongside it.



<h2 class="wp-block-heading" id="h-community-centric-initiatives">Community-centric initiatives</h2>



When Kenmare Resources began constructing the mine in 2004, it took a proactive step by establishing the non-profit organisation Kenmare Moma Development Association. This association drives development programmes within the host communities, focusing on livelihoods, economic development, education, and healthcare, as well as water and sanitation. In 2022, Kenmare invested $3&nbsp;million in community initiatives while reporting a record profit of $206&nbsp;million after tax. By prioritising transparency, accountability and social responsibility, Kenmare has maintained stakeholder trust, minimised social risks and achieved sustainable outcomes.



<h2 class="wp-block-heading" id="h-mining-and-clean-energy-an-interdependent-relationship">Mining and clean energy: An interdependent relationship</h2>



While mining companies strive for decarbonisation, they face a delicate balance. On the 1&nbsp;hand, they are essential suppliers of critical minerals and crucial raw materials like manganese, nickel, cobalt, copper, vanadium, graphite, and lithium that are all needed for renewable energy technologies and are integral to wind turbines and batteries. On the other hand, mining operations themselves contribute to carbon emissions.



To navigate this challenge, mining companies can take several steps to decarbonise their operations, eg:



<ol class="wp-block-list">
<li>Energy efficiency: Introduce energy-efficient technologies and practices.</li>



<li>Transport optimisation: Optimise transport and logistics.</li>



<li>Carbon capture and storage: Implement carbon capture and storage solutions.</li>



<li>Environmental stewardship: Invest in reforestation, land rehabilitation and water conservation.</li>



<li>Waste recovery: Extract valuable metals from waste streams.</li>
</ol>



Moreover, collaboration across the value chain is essential. Mining companies can partner with renewable energy firms, equipment manufacturers and engineering companies to accelerate the development and adoption of cleaner energy solutions.



<h2 class="wp-block-heading" id="h-setting-an-example-for-industries-worldwide">Setting an example for industries worldwide</h2>



By harnessing renewable energy, embracing technology, engaging with communities, and forging partnerships, the mining sector reshapes its own operations while setting an example for industries globally. As we harmonise the contribution of the mining industry to renewable energy and climate action, we recognise that the social licence to operate remains more valuable than any ESG report. Through this lens, mining companies can genuinely lead the change towards a sustainable future.

Nivaash-Singh

Harmonising the mining sector’s contribution to renewable energy and climate change

As we anticipate Minister of Finance Enoch Godongwana&#8217;s upcoming national budget speech, it&#8217;s crucial to analyse key factors that will shape South Africa&#8217;s economic trajectory. The budget isn&#8217;t just about numbers on a spreadsheet; it&#8217;s a reflection of our nation&#8217;s priorities and commitments. Here, Associate Professor David Warneke, Partner at BDO South Africa, shares his insights into what we might expect and the resulting implications for our country’s economic future.



First, and as intimated by the President in his SONA address, it is almost a certainty that the Minister will announce a continuation of the Social Relief of Distress Grant. Having already factored in an extension of the grant in the medium term budget until March 2025, it is unlikely the minister will go back on this. The reason for this is simple. This grant, vital for around nine million South Africans, underscores the government’s commitment to supporting vulnerable segments of society, especially in an election year. That said, with a cost of approximately R44 billion a year, the grant’s long-term sustainability and impact on the national budget merits careful consideration.



Perhaps a more contentious issue will be the question of public service wages. Last year&#8217;s budget projected a 0% increase, with subsequent negotiations resulting in a 7.5% raise. As we approach another election cycle, the government may seek to avoid negotiations and go directly ahead with proposing a modest increase of around 5-6% to appease public servants.



Any sort of increase, however, does raise concerns around the sustainability of our public wage bill, particularly when compared to international standards. South Africa has one of the highest paid public sectors in the world, with a total wage bill 3.5% higher than the average of OECD countries. This makes up around a third of total government expenditure, and is not performance-based, meaning increases are applied across the board.



As for education, the need for an increase in funding for NSFAS is crucial, given recent medium term budget cuts that threatened around 87 000 students&#8217; access to higher education. Investing in education is investing in the future of our nation, but it must be done responsibly to ensure long-term economic benefits.



However, dreams of a basic income grant may remain deferred, given current economic constraints. In the past, Minister Godongwana rightly emphasised the need for sustainable economic growth to finance such initiatives. Implementing a basic income grant requires a stable economic foundation, which we must prioritise building before introducing such a measure into the budget.



The National Health Insurance (NHI) Bill looms large, yet substantial budget allocations may be deferred amid constitutional challenges. Similarly, the fate of state-owned enterprises (SOEs) remains uncertain, with discussions on mergers and closures ongoing. Any decisions must balance fiscal responsibility with the need to streamline operations and improve efficiency. Once again, given elections, it is doubtful that anything will be announced here as it might imply job cuts.



An SOE issue however that demands urgent attention is Transnet’s operational and financial woes. For some time now private sector involvement has been touted as a potential solution, with the previous announcement of a R47 billion guarantee given to Transnet to enable it to raise funding.



Another contentious proposal has been the potential use of some of the country&#8217;s gold and foreign currency contingency reserves — amounting in total to around R500 billion — to help alleviate public debt. While tempting, it is important to remain cautious of this option as it is a short-term fix for deeper structural issues, which are of our own making. South Africa must create an investor-friendly climate to stimulate growth and rather reduce reliance on reserve funds — in this case, there is no such thing as an easy out.



Tax hikes also present a looming spectre, with the Minister announcing the need to extract an additional R15 billion of taxes in the medium term budget. But doing so would risk further burdening an already strained populace, which the Minister may not want to do ahead of the polls. Additional tax may also be extracted through less than full inflationary relief from bracket creep.



Overall, the national budget, as always, will be a balancing act between short-term needs and long-term sustainability. The current trajectory of our public debt, especially given the high cost of interest, is a point of concern. It is important then that whatever measures the Minister proposes to fund current expenditure does not come at too great a risk to long term sustainability — or the scales will be further tipped against us.

GettyImages-1503371245_1A

Predicting the Tides of South Africa’s National Budget

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EDTECH-2023-DAY-1-545-820x547.jpg" alt="" class="wp-image-457724" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EDTECH-2023-DAY-1-545-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EDTECH-2023-DAY-1-545-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EDTECH-2023-DAY-1-545-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EDTECH-2023-DAY-1-545-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EDTECH-2023-DAY-1-545-1536x1026.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EDTECH-2023-DAY-1-545-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Over the next 30 years, most of the world’s workforce will come from Africa. This presents an opportunity for more attention and investment in the continent, specifically within Africa’s education system. Investing in education is an opportunity to not only support the development of the continent, but also to empower and lift a generation from poverty, inequality, and social disparities.



According to the <a href="https://au.int/en/AU_ECHO_2024_CALL_FOR_PAPERS#:~:text=Education%20is%20also%20associated%20with,of%20CESA%20and%20SDG4%20targets.">African Union</a>, progress in education has a far-reaching impact on all the other aspects of human capital development.



Building a new social contract for Africa through education and skills development is not just an aspiration; it is a commitment that the continent must make. These investments can take many forms, such as developing capacity for educators, building and operating infrastructure that will broaden access, investing in educational technology, providing scholarships, championing evidence-based policies and strategies and many more.



There is a need therefore, for a shift in the approach to education and skills development required to move beyond traditional models and embrace innovative methods that harness technology, creativity, and experiential learning.



The February edition of the Mastercard Foundation EdTech Mondays sought to explore what investments are needed to transform Africa’s education systems and what role EdTech plays in achieving transformative learning outcomes across the continent. What areas should be prioritized where investments in education are concerned and how countries can build resilient education systems were discussed at length.



Krista Davidson, the Executive Director of Injini, a South African EdTech accelerator and think tank, emphasized that more investment is required to address two critical issues: connectivity, and empowering teachers to comprehensively implement learner-centered models of education.



Panelists agreed that one area to prioritize where investments in education are concerned is teacher training. Teachers require adequate training and support. It was noted that the lack of thorough training for educators was an obstacle preventing the continent from achieving improved learning outcomes.



“South Africa, for instance, requires 25,000 new teachers annually, against the 6,000 available. There is a shortage of sufficiently qualified teachers,” Krista went on to state.



Nissi Madu, Managing Partner at Co-creation Hub (CcHUB), Africa’s foremost technology innovation centre in Nigeria, echoed Krista’s opinions. Nissi highlighted a need to monitor and evaluate the continent’s learning systems to ensure that learners get the right kind of education for today’s fast-changing digitally driven economies.



Nissi went on to note that addressing the teacher challenge is an issue that requires continuous support as this, in turn, strengthens the continent’s education systems.



The African Union declared 2024 as the year of education in Africa, with a reinforced focus on advocacy for increased investment and commitment to education.



John Kimotho, an education consultant and expert at EdTech Hub in Kenya, went on to note that “Africa needs to invest and focus on education systems that are learner-centered and that prepare the learner to be a global product capable of settling in and working anywhere in the world.”



While teacher training remains imperative, countries need to design curriculums that can be quickly adopted and that are flexible enough for the future.



“Each learner has their own unique potential. We just need the right content and teachers who can capably deliver this content. Digital skills are important in this regard as well. So, Africa just must be able to systematically tailor its educational content to deliver value to its learners,” John added. “While, at the moment, our investment in education is good, the question should be, are we organizing this investment in the right way?”



To achieve transformative change within our education systems, the panelists emphasized and further highlighted the importance of policy and partnerships, asserting that the onus is on the different industry players to inform the right policies by collaborating with policymakers in implementing policies geared towards building resilient educational systems.



“Learning is not learning until there are learning outcomes,” John Kimotho said, “If practice is ahead of policy, we the practitioners need to help the policy makers and guide the framework that is going to compliment the innovations that are coming to ensure that no learner is left behind.”



“Innovation and technology, can do a lot in enhancing the education systems continentally,” Krista added. “Policymakers need to be well informed so that the policies they develop, and implement are appropriate, and in line with the continent’s educational requirements now and in future.”



Nissi shared these views stating that “there must be collaborations between both the public and private sectors, and concerted efforts among all stakeholders to drive the adoption of EdTech, this will improve learning outcomes. Leveraging innovation and technology, offers an opportunity for even more improvements, more so, within the EdTech ecosystem.”



The panel of experts expressed their optimism, acknowledging that there have already seen positive investments and collaboration in the continent particularly in EdTech. Platforms such as EdTech Mondays by Mastercard Foundation facilitate critical conversations on the use of technology for teaching and learning by bringing together key stakeholders that include policy makers, EdTech entrepreneurs, teachers, and parents.



To get the right outcomes and achieve a paradigm shift in transformative education, investment in teacher training needs to be prioritized across the continent. Collaborations between policy makers, investors and players in the EdTech sector should be encouraged. There is a need to be intentional about learning outcomes and ensuring relevance of education to create learners for the future.



Watch February&#8217;s edition of Ed-Tech Monday: Investment in Education for Transformative Learning 



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Investment In Education for Transformative Learning

As the race for valuable commodities intensifies, it is increasingly evident that geopolitical competition will catalyse a wave of Mergers and Acquisitions (M&amp;A), reshaping the landscape of Africa’s resource-rich industries. India, the United States (US), Saudi Arabia and the United Arab Emirates (UAE) are all poised to commit further investment to the continent and Africa will need to find ways to maximise its investment attractiveness amidst global upheaval.



The rise of the “metals of the future” has seen&nbsp;global demand for cobalt, copper, lithium and manganese, rare earths among other minerals, soar to levels where demand exceeds current production levels.&nbsp; China&nbsp;dominates critical mineral supply in many of these levels. &nbsp;It accounts for over 70% of rare earths extraction and 90% of processing including 90% of the world’s neodymium and praseodymium, the key metals for EV magnets ,and could potentially control up to a third of the lithium mining capacity by as early as 2025. &nbsp;



To feed this, China has taken an increasingly active role in Africa as it seeks to secure access to these key resources.



With shifting geo-politics across the globe, we have seen a number of parties respond with their own moves into Africa.



The current Biden Administration has declared that the United States is “all in on Africa, and all in with Africa,” meaning that the US is keen to assist African countries to use their critical mineral resources for economic development while helping to strengthen supply chains that are diverse, open and predictable. Historically, the USA has had limited commercial engagement with Africa so this change in strategic outlook is fundamental and will drive investment in the region.



This will be assisted by the US and its 2022 efforts in driving the Minerals Security Partnership (MSP) which is made up of Australia, Canada, Finland, France, Germany, India, Italy, Japan, Norway, the Republic of Korea, Sweden, the United Kingdom, the United States, and the European Union.



Its goal of catalysing public and private investments into sustainable, responsible critical supply chains (from mining and extraction, to processing and refining, to recycling) will have to have a real impact on Africa.



Saudi Arabia is a powerful ally for the United States. I Its proximity to Africa will enable it to play an increasingly important role in terms of M&amp;A in the mining sector – particularly as the sector has been identified as a critical element of Saudi Arabia’s Vision 2030, a government-led programme aimed at economic diversification away from oil.



It is clear that Saudi Arabia intends to operate across the globe and appears keener to hold equity in mining companies over actually operating them. Its recent invite to participate in the BRICS cluster may also accelerate its entrance into Africa.



As examples, Saudi Arabian Mining Co (Ma&#8217;aden)&nbsp;and the Saudi Public Investment Fund (PIF) acquired 10% of Brazilian Vale&#8217;s base metal unit and have formed a joint venture called Manara Minerals as vehicle for further acquisitions. Ma’aden also acquired a 9.9% percent&nbsp;stake in Ivanhoe Electric, a U.S. mineral exploration group and is part of an equal<a href="https://www.barrick.com/English/operations/jabal-sayid/default.aspx"> joint venture agreement</a>&nbsp;with Barrick Gold for the Jabal Sayid copper mine.



Manara Minerals has indicated it has over $15bn to invest in mining assets globally over the next few years. &nbsp;



The support by Africa for Saudi is shown in that over&nbsp;<a href="https://www.futuremineralsforum.com/ministerial-roundtables/">25 African governments</a>&nbsp;were present at the Future Minerals Forum, held by the Saudi Arabian government, in Riyadh in January 2024.&nbsp;



The UAE is another Gulf player with its eye on Africa. The United Arab Emirates&#8217; International Resources Holdings is the new strategic equity partner in Mopani Copper Mines in Zambia and has also recently teamed up with London Stock Exchange (LSE) listed Jubilee Metals to process significant copper tailing deposits, again in Zambia.



Last but not least, India itself is a force to be reckoned with as China grapples with some of its internal economic challenges which has seen it focus inwardly on its own domestic market. India and Africa have been long-standing trade partners across multiple industries and mining and resources are no different. The total trade in the mining and mineral sector between India and Africa since 2001 stands at $43.13 billion, with Indian net imports around 77%.



Africa is attractively positioned as global powers seek to identify key investment assets on the continent. However, it is important that the continent focuses on two elements.



The first is that Africa has often struggled with a fractious relationship with international investors who have viewed their activities on the continent as extractive by nature. This has limited the economic benefit being realised by the countries and communities who are home to these valuable resources. It is key that this mining is done in a sustainable manner with a focus on long-term benefits.



The second is the importance of developing an environment which is attractive to the best long-term investors, rather than short-term partners. To obtain this financial and investment support, Africa will need to strengthen its governance practices, be more open and consistent in its regulatory frameworks and allow a broader distribution of benefits to its own people.



If Africa can get this right, it will reap the economic benefits for years to come.

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Shifting geopolitics brings multiple suitors to African mining M&A

African-based mining and resource companies which have invested in renewable energy infrastructure over the last few years are not only reaping the benefits through access to cheaper power but also achieving sustainability goals identified by stakeholders including lenders looking to fund expansion. &nbsp;



Sustainable financing is becoming an increasingly topical issue for both bank and non-bank financing institutions and mining companies will feel the pinch at the balance sheet level if they are not embracing a shift towards clean energy projects. This could be encapsulated in possibly lower funding costs for clean energy projects. Due to ‘Traceability’ considerations by certain markets – for example pending European Union (EU) legislation, or possible London Metal Exchange (LME) requirements &#8211; the price paid for certain commodities including green copper and green steel &#8211; could be higher. At the same time, the demand for commodities that do not meet this threshold could wane as the price becomes more expensive due to additional carbon and other taxes or restrictions imposed by such legislation or guidelines.



Some of South Africa’s largest mining and resource business have recognised this and have proactively invested in energy infrastructure which is not only supporting their operational needs through energy access but is also aligning with sustainability goals and growth strategies.



A key development in 2023 was the recognition that generation was only part of the equation when it comes to energy infrastructure and storage; transmission and distribution will be the focus areas in the foreseeable future.



The November announcement of the first four bidders for phase 1 of the&nbsp;Battery Energy Storage Independent Power Procurement (BESIPPP) Programme is an important milestone which will provide a catalyst for further energy storage projects on the continent. Traditionally, electricity is a commodity that could not affordably be stored &#8211; with very limited storage capacity existing mainly in the form of pumped storage.



BESS (Battery Energy Storage Systems) would allow for electricity storage and dispatchability on an ‘as-needed’ basis and will assist to unlock grid capacity in congested areas where surplus generation &#8211; for example from the Northern Cape &#8211; can be stored during the day and released during peak demand periods.&nbsp; The investment into transmission grid capacity would help unlock the bottlenecks that currently exist and allow for more generation capacity, including decentralised generation capacity, to be built.



While South African businesses have made significant progress in the rollout of renewable energy projects to support the mining sector and drive sustainability, most of the rest of Africa has not kept pace with SA. Notwithstanding this, there have been some very notable activity on the continent:



As an example:



1) Zambia has been an interesting country to watch as it is undergoing a significant shift in its energy infrastructure. The country has a relatively low generation base – roughly 2800MW – of which 85% is via hydro-electric power. Climate change has severely impacted rainfall patterns in the country and the State Owned Power utility (ZESCO) has been forced to implement load-shedding as a result of lower than expected hydro-generation capacity.&nbsp; This has curtailed investment in key sectors including agriculture and mining.



Considering that Zambia is one of the top 10 copper producers in the world, home to one of the largest nickel mines in Africa, a leader in gemstones and is considered a key supplier in the electric vehicle battery supply chain for battery minerals, these crippling power issues will &nbsp;impact the ability of the country to unlock its economic potential.



The country will experience increased investment in its clean energy sector to help diversify its generation base and provide stability to the mining sector, noting that mining companies are also turning to captive power initiatives to augment its grid power supply.



2) Egypt is another country which is worth watching closely – particularly with its ties to the Middle-East – and its proximity to Europe. &nbsp;



As a country which is rich in resources including oil, gas, gold, phosphate, tantalum and other minerals, developments in its energy sector are of paramount importance to support these energy intensive industries. The country enjoys a combination of flat terrain, glorious levels of sunlight and wind which makes it a destination of choice for renewable energy projects and capital-intensive green hydrogen projects.



Despite this, less than 10% of its nearly 60GW of installed capacity is delivered via non-fossil fuel sources. The country has set itself a goal of securing $1bn in new mining project investment by 2030 and through its abundance of clean energy sources – wind, solar and hydro – it has the potential to be a destination of choice for mining houses.&nbsp;



Investment in power is the precursor to any energy-intensive business. Mining and resource companies which have recognised that investments in distributed, affordable clean energy infrastructure will be a comparative advantage are likely to find themselves better positioned relative to peers who have under-invested in this area. As an active financier in the mining and renewable energy space, we look forward to continue working with our clients on transformative projects in 2024 and beyond.

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Energy infrastructure becomes a competitive advantage to Resources companies

Enterprise and Supplier Development (ESD) investments coupled with a focus on Environmental, Social and Governance (ESG) frameworks, could provide a powerful combination for developing local manufacturing capacity to support the African mining and resources sector.



Environmental factors within ESG are possibly the best-understood element of the framework while people are less familiar with the ‘Social’ and ‘Governance’ pillars.



The social pillar has been particularly difficult to define &#8211; and even more so to measure. Nonetheless, it remains critically important and can be a key contributor to growing the trust placed in organisations by their customers, employees and the broader society in which it operates.



Broadly defined, the ‘Social’ pillar refers to the organisation’s values including policies and practices related to business ethics, diversity and inclusion, supply chain management and the social impact of its operations.



From an ESD viewpoint our focus on the ‘S’ looks at driving localisation and financial inclusion which we believe ultimately assist in job creation.



In the past, the emphasis on local participation has been propelled by diverse local content frameworks, such as Broad-Based Black Economic Empowerment (B-BBEE) in South Africa and Citizen Economic Empowerment in Botswana. These frameworks, encompassing various components, facilitate the sourcing of goods and services from local Small and Medium-sized Enterprises (SMEs), contributing to the development of the industrial base in crucial production sectors and manufacturing.



The mining industry has effectively embraced these frameworks, demonstrating robust ESD programs throughout the continent. These initiatives not only emphasise granting SMEs and local businesses access to procurement opportunities but also ensure they receive the necessary funding and business development support to execute these opportunities sustainably. Consequently, procurement targets within ESD programs are nearing fulfilment.



However, a key shift is currently taking place with many ESD practitioners recognising that much of the local procurement is taking place through middlemen and agents rather than developing local capacity, resulting in organisations being unable to truly diversify their supply chains.



A recent visit to a client operating in the mining sector highlighted how they are starting to unpack their value chain to identify goods that can be manufactured and sourced locally. Items such as chemicals and lubricants, Personal Protection Equipment (PPE), and rollers used in conveyor belts have been identified as potential products for local manufacturing.&nbsp;



A focus on developing local manufacturing capacity will de-risk supply chains, create sustainable local businesses and most importantly, drive job creation. Mining businesses need to remember that a key part of their license to operate will be the sustainability of communities surrounding their operations. As such, ESD investments should be considered a key component of their stakeholder engagement.



Mining executives facing operational headwinds will, however, be walking a tightrope as they balance community obligations with investor pressure to deliver profits.



We need to be cognisant of the fact that certain resource sectors are facing operational headwinds including a pullback in commodity prices and higher debt-servicing costs. Spending for ESD programmes is typically linked to profitability. As such, the sustainability of initiatives may be impacted in the short-term.



This cyclical nature of commodity cycles further highlights the need for ESD investments to assist in creating sustainable businesses and industries through sponsoring projects that drive local manufacturing.



Development Finance Institutions (DFIs) including the African Development Bank and Development Bank of South Africa (DBSA) are focused on developing local manufacturing capacity. Governments and policymakers have also recognised that manufacturing is a capital-intensive sector that requires a combination of seed funding and Research and Development (R&amp;D) grants and incentives. We expect further funding to be made available here to de-risk ESD contributions from mining houses. &nbsp;



The mining sector across the continent is a large marketplace for manufactured goods and the future of ESD must promote local manufacturing which will drive the creation of jobs which all tie back to the ‘Social’ pillar in ESG. Mining executives have recognised the importance of working with skilled partners who have on-the-ground knowledge on the African continent to realise this opportunity. As a bank, we are looking forward to engaging in transformative projects that will unlock greater local manufacturing capacity in 2024.

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Mining sector ESD and ESG can be catalysts for African manufacturing

31 January 2024 &#8211; Davos, Switzerland.&nbsp; Africa Collective, with the AfCFTA Secretariat as patronage partner, scaled up its Davos presence during the time of the World Economic Forum Annual Meeting between 15-19 January 2024, with the objective of providing a complementary platform to amplify and exchange on African topics at the gathering of world leaders. A key focus of the Africa Collective week was to discuss the investment climate on the African continent as well as how to leverage opportunities and resolve existing challenges in doing business, all in the context of accelerating the implementation of the AfCFTA.



The weeklong program included several high-level sessions, each bringing together between 50-80 key decision makers from the public and private sectors. The week commenced with a welcome luncheon entitled “Paving the Way: Commodity-led Industrialization on the African Continent” including panel insights from Denys Denya, Executive Vice President, Afreximbank; Sanjeev Gupta, Executive Director Financial Services, Africa Finance Corporation; and Eugene Mayne, CEO, Tristar Group. This was followed by a breakfast roundtable in partnership with Novartis, focused on the topic “Moving the needle: From health ‘spend’ to healthcare as an investment” with interventions by H.E. Wamkele Mene, Secretary General, AfCFTA Secretariat; H.E. Helene Budliger Artieda, State Secretary of the Swiss State Secretariat of Economic Affairs (SECO); Lutz Hegemann, President Global Health &amp; Sustainability, Novartis; Angela Gichaga, Founder &amp; President, Financing Alliance for Health; H.E. Christian Frutiger, Vice-director, Head of the Thematic Cooperation Division, Swiss Agency for Development and Cooperation. A digital &amp; art showcase networking cocktail then brought together global &amp; African leaders with talented African artists and high potential startups.



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In partnership with Standard Bank, the final breakfast roundtable examined the topic “&#8217;Unleashing potential: Africa&#8217;s place in attracting future allocation of capital pools”, featuring contributions by Sim Tshabalala, CEO, Standard Bank Group; Leila Fourie, Group CEO, Johannesburg Stock Exchange; Jürgen Rigterink, First Vice President, European Bank for Reconstruction &amp; Development (EBRD); and Dr. Armstrong Takang, CEO, Ministry of Finance Incorporated (Nigeria).



The week concluded with the customary Africa Collective closing &amp; outlook luncheon. Under the theme “Navigating Business Realities for Scalable African Solutions”, four panelists &#8211; H.E. Bosun Tijani, Minister of Communications, Innovation &amp; Digital Economy of the Federal Republic of Nigeria; H.E. Wamkele Mene, Secretary General, AfCFTA Secretariat; Nonkululeko Nyembezi, Chairman, Standard Bank Group; and Lutz Hegemann, President of Global Health &amp; Sustainability, Novartis &#8211; discussed how the public and private sectors can concretely unlock opportunities on the continent. Interventions from invited private sector leaders provided concrete examples of corporate initiatives and investments throughout the continent.



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Key learnings from the week center on how the private sector plays a key role in accelerating the implementation of the AfCFTA in a sustainable way. Across the diverse industries represented in the program, the following outcomes stood out from the conversations held throughout the week:



<ul class="wp-block-list">
<li>Collaboration and alignment between the public and private sectors are crucial for creating initiatives that positively impact the trajectory of the African continent.</li>



<li>Strong institutions and regulatory harmonization on the African continent ensure predictability and create an enabling environment for doing business. This nurtures trust with the business and investor communities.</li>



<li>While the AfCFTA provides an enabling environment for doing business, the private sector needs to leverage opportunities the free trade agreement has created and actively contribute to its implementation and development.</li>



<li>Physical and Digital Infrastructure are critical to driving industrialization on the continent and to leapfrog toward new forms of industrialization, services and business.</li>



<li>Strengthening value chains across different sectors requires a mix of efforts including but not limited to: investment in infrastructure; early stage investment in projects that support the strengthening of value chains; increasing sustainable power generation, transmission and distribution to build industrial capacity; skills development and training; and capacity building.</li>



<li>The private sector plays a role in the empowerment and wellbeing of communities through initiatives, job creation and providing access to healthcare and basic services.</li>
</ul>



These discussions were shaped by the following Africa Collective corporate partners: Lead Partners Novartis and Standard Bank Group; Corporate Partners Old Mutual Limited, Ringier AG and Tristar Group; Supporting Partners OmniBiz and Fin.



Lead Media Partner Business Insider Africa, CNBC Africa and African Business provided coverage throughout the week with CNBC Africa and African Business moderating three separate sessions of the agenda.



In the 12-month leadup to Africa Collective Davos 2025, the Africa Collective will be present at key events on the African continent, as it continues to grow its network of actionable exchange and collaboration on African opportunities.

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Africa Collective scales up 2024 Davos presence to convene international and pan-African private and public sector leaders.

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Global tech giant TECNO, with a presence in over 70 countries across five continents, has embarked on a transformative journey with the Confederation of African Football (CAF). This alliance transcends traditional sports sponsorship, aiming to revolutionize African football through a fusion of innovative technology and athletic passion.



Jack Guo, TECNO&#8217;s General Manager, is enthusiastic about this partnership, viewing it as a perfect embodiment of TECNO&#8217;s commitment to enriching the football experience. &#8220;Our collaboration goes beyond support; it&#8217;s about revolutionizing African football with cutting-edge technology,&#8221; Guo asserts, aligning this move with TECNO&#8217;s mission to democratize premium technology.



Hassan El Karmi, CAF&#8217;s Commercial Director, highlights the strategic depth of this partnership. &#8220;Our alliance with TECNO breaks new ground, fostering substantial growth in the sport&#8217;s audience and economic reach,&#8221; El Karmi notes, emphasizing its role in broadening football&#8217;s accessibility across Africa.



The scope of the TECNO-CAF partnership extends into community engagement, CSR initiatives, and innovative marketing strategies. TECNO Dream Fields Renovation Campaign, an initiative launched by TECNO and supported by CAF, aims to refurbish and upgrade 100 local football fields across Africa, demonstrating TECNO&#8217;s profound commitment to developing the sport at the grassroots level. By improving these foundational facilities, TECNO is not only enhancing the quality of play but also enriching the communities that surround these fields.



Arif Chowdhury, Co-founder of Transsion Holdings, the parent company of TECNO, underscores the partnership&#8217;s significance. &#8220;This is more than a business collaboration; it&#8217;s an investment in Africa&#8217;s youth and their future, blending football with cultural and educational initiatives,&#8221; he remarks.



This groundbreaking collaboration between TECNO and CAF is redefining the landscape of sports sponsorships. By integrating advanced technology into the heart of African football, this partnership promises to enhance fan engagement and set new standards in the sporting world. &#8220;We are charting a course for a technologically advanced and interconnected future in African football, benefiting players and fans alike,&#8221; Guo concludes, heralding a new, dynamic era in the world of sports sponsorships.



About TECNO



TECNO is an innovative technology brand with operations in over 70 countries and regions across five continents. Since its launch, TECNO has been revolutionizing the digital experience in emerging global markets, relentlessly pushing for the perfect integration of contemporary, aesthetic design with the latest technologies. Today, TECNO has developed into a recognized leader in its target markets, delivering state-of-the-art innovation through a wide range of smartphones, smart wearables, laptops, HiOS operating systems and smart home products. Guided by its brand essence of “Stop At Nothing”, TECNO is committed to unlocking the best and newest technologies for forward-thinking individuals. By creating stylish, intelligent products, TECNO inspires consumers worldwide to never stop pursuing their best selves and their best futures. For more information, please visit TECNO’s official site: <a href="http://www.tecno-mobile.com">www.tecno-mobile.com</a> &nbsp;&nbsp;

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A Technological Revolution in African Football

8 January 2024 &#8211; Davos, Switzerland. Africa Collective, in partnership with the AfCFTA Secretariat, will kick off a series of activities during the time of the World Economic Forum, taking place from 15-19 January in Davos. The objective of the Africa Collective Davos agenda is to provide a complementary platform  that creates even more space for discussion of African topics and themes, exploring the opportunities for driving economic growth on the African continent.



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The series of&nbsp; activities will include thematic engagement sessions &#8211; on commodities, health and capital investments: Beginning on Monday, 15 January, with a welcome luncheon &amp; roundtable dedicated to the topic ‘Paving the Way: Commodity-led Industrialization on the African Continent; followed by a breakfast roundtable in partnership with Novartis entitled ‘Moving the needle: From health ‘spend’ to healthcare as an investment’ on Tuesday, 16 January; and finally, a breakfast roundtable themed ‘Unleashing potential: Africa’s place in attracting future allocation of capital pools’ in partnership with Standard Bank Group on Wednesday, 17 January.



Further possibilities to network and exchange during the Africa Collective program will include the Digital &amp; Art Showcase Networking Cocktail on the evening of Tuesday, 16 January and the initiative’s week-long, dedicated Networking Area in the lobby of the Hard Rock Hotel,which will allow partners and guests to engage on key African topics during the week. At both the Networking Cocktail and dedicated Networking Area, the artwork of four talented African artists, Eno Bassey (Nigeria), Elie Hatungimana (Rwanda), Sanjo Lawal (Nigeria) and Kwaku Opoku (Ghana), will be displayed and featured in partnership with leading African art media platform, Art News Africa.



The yearly High-Level Closing Luncheon on Thursday, 18 January will wrap-up the Africa Collective Davos 2024 agenda, examining the theme ‘Navigating Business Realities for Scalable African Solutions’. High-level panelists during the session will include: H.E. Wamkele Mene, Secretary General, AfCFTA Secretariat; Nonkululeko Nyembezi, Chairman, Standard Bank Group; and Lutz Hegemann, President &#8211; Global Health &amp; Sustainability, Novartis. The Luncheon will bring together 80 key African and global decision makers to discuss the outcomes of sessions held during the Davos week as well as outlook for 2024.



Throughout the week, African and global leaders in business, government as well as further thought leaders will be contributing to the on-invitation Africa Collective sessions and conversations. Partners of the initiative will also play an important part in shaping the discussion during the Davos week including: Lead Partners Novartis and Standard Bank; Corporate Partners Old Mutual, Ringier AG and Tristar; Supporting Partners OmniBiz and Fin. To inform the broader African and global business community, Media Partners Business Insider Africa, CNBC Africa and African Business will be reporting on topics relevant to the African continent in Davos and covered during the Africa Collective events.&nbsp;&nbsp;



More information:



<a href="http://www.africacollective.xyz">www.africacollective.xyz</a>



<a href="http://www.au-afcfta.org">www.au-afcfta.org</a> &nbsp;



About Africa Collective



Africa Collective was launched in 2023, as a business-driven initiative, to discover, exchange about and collaborate on African opportunities globally. Co-initiators of the initiative include H.E. Wamkele Mene (AfCFTA Secretariat), Larry Madowo (CNN), Biola Alabi (Acasia Group), Michael Rheinegger (Africa Unlimited) and Leonard Stiegeler (Africa Unlimited).



On 19 January 2023, the Africa Collective held its inaugural luncheon at the time of the World Economic Forum’s Annual Meeting where it brought together African Ministerial Delegations, CEOs and senior executives representing leading international as well as pan-African companies. Early backers of the initiative include Ian Williamson, CEO, Old Mutual and Marc Walder, CEO, Ringier AG.



To read more about the 2023 Africa Collective presence in Davos visit the following <a href="https://africacollective.xyz/event/africacollectiveluncheon/">LINK</a>.



About the African Continental Free Trade Area (AfCFTA)



The AfCFTA is the world’s largest free trade area bringing together the 55 countries of the African Union (AU) and eight (8) Regional Economic Communities (RECs). The overall mandate of the AfCFTA is to create a single continental market with a population of about 1.3 billion people and a combined GDP of approximately US$ 3.4 trillion. The AfCFTA is one of the flagship projects of Agenda 2063: The Africa We Want, the African Union’s long-term development strategy for transforming the continent into a global powerhouse.



The&nbsp;AfCFTA Secretariat&nbsp;coordinates and facilitates the implementation of the AfCFTA agreement among African states. &nbsp;It also engages stakeholders to promote the AfCFTA and undertakes trade and investment promotion activities to enhance intra-African trade, among other duties.&nbsp;

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Africa Collective to kick off week-long agenda in partnership with the African Continental Free Trade Area (AfCFTA) Secretariat

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="790" height="527" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/Pic-Statement-2.webp" alt="" class="wp-image-442432" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/Pic-Statement-2.webp 790w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/Pic-Statement-2-300x200.webp 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/Pic-Statement-2-135x90.webp 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/Pic-Statement-2-768x512.webp 768w" sizes="auto, (max-width: 790px) 100vw, 790px" /></figure>



22 December 2023, Davos, Switzerland &#8211;&nbsp; Following a successful inaugural Luncheon in 2023, organized under the patronage of the African Continental Free Trade Area (AfCFTA) Secretariat and in the presence of its Secretary General, H.E. Wamkele Mene, as well as 80 African &amp; global decision makers, the Africa Collective in partnership with the AfCFTA Secretariat will once again be organizing its annual Closing &amp; Outlook Luncheon in Davos on 18 January 2024 from 12:30 noon to 2:30 pm, during the time of the World Economic Forum.



This year, the Closing &amp; Outlook Luncheon will conclude and reflect on a full week of programming by Africa Collective and its partners in Davos, including an opening luncheon, breakfast roundtables and a networking reception. The Outlook Luncheon will focus on the theme ‘Navigating Business Realities for Scalable African Solutions’ and highlight how the African private sector plays an essential role in the development of the African continent. It will explore how, in collaboration with the global business community, scalable, localized solutions are built, which drive economic development, in the context of key pan-African initiatives such as the AfCFTA.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/pic-networking-2-820x547.webp" alt="" class="wp-image-442430" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/pic-networking-2-820x547.webp 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/pic-networking-2-300x200.webp 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/pic-networking-2-135x90.webp 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/pic-networking-2-768x512.webp 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/pic-networking-2-1536x1024.webp 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/pic-networking-2-scaled.webp 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Africa Collective partners, representing African and global private sector interests, will be shaping the content and discussion during the Luncheon alongside patronage partner AfCFTA Secretariat, including: Lead partners &#8211; Standard Bank and Novartis; Corporate partners &#8211; Old Mutual, Ringier AG and Tristar;&nbsp; as well as Supporting partners &#8211; Omnibiz and Fin. Media partners Business Insider Africa, CNBC Africa and African Business will be informing the broader African and global business community on key takeaways from the session.



With 80 key African and global decision makers representing pan-African industry champions, Fortune 500 companies, African Governments and leading global companies in attendance, the Outlook Luncheon will provide an opportunity to discuss outlook and priority topics for the private sector in the current context of African economic development. 



About Africa Collective



Africa Collective was launched in 2023, as a business-driven initiative, to showcase African opportunities globally. Co-initiators of the initiative include H.E. Wamkele Mene (AfCFTA Secretariat), Larry Madowo (CNN), Biola Alabi (Acasia Group), Michael Rheinegger (Africa Unlimited) and Leonard Stiegeler (Africa Unlimited).



On 19 January 2023, the Africa Collective held its inaugural luncheon at the time of the World Economic Forum’s Annual Meeting where it brought together African Ministerial Delegations, CEOs and senior executives representing leading international as well as pan-African companies. Early backers of the initiative include Ian Williamson, CEO, Old Mutual and Marc Walder, CEO, Ringier AG.



To read more about the 2023 Africa Collective presence in Davos visit the following <a href="https://africacollective.xyz/event/africacollectiveluncheon/">LINK</a>.



About the African Continental Free Trade Area (AfCFTA)



The AfCFTA is the world’s largest free trade area bringing together the 55 countries of the African Union (AU) and eight (8) Regional Economic Communities (RECs). The overall mandate of the AfCFTA is to create a single continental market with a population of about 1.3 billion people and a combined GDP of approximately US$ 3.4 trillion. The AfCFTA is one of the flagship projects of Agenda 2063: The Africa We Want, the African Union’s long-term development strategy for transforming the continent into a global powerhouse.



The&nbsp;AfCFTA Secretariat&nbsp;coordinates and facilitates the implementation of the AfCFTA agreement among African states. &nbsp;It also engages stakeholders to promote the AfCFTA and undertakes trade and investment promotion activities to enhance intra-African trade, among other duties.&nbsp;

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Africa Collective in partnership with the AfCFTA Secretariat to convene key African & global decision makers in Davos during annual Luncheon

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="760" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Nadja-Haakansson_MD-Africa_Siemens-Energy-1-820x760.jpg" alt="" class="wp-image-431532" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Nadja-Haakansson_MD-Africa_Siemens-Energy-1-820x760.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Nadja-Haakansson_MD-Africa_Siemens-Energy-1-300x278.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Nadja-Haakansson_MD-Africa_Siemens-Energy-1-97x90.jpg 97w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Nadja-Haakansson_MD-Africa_Siemens-Energy-1-768x712.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Nadja-Haakansson_MD-Africa_Siemens-Energy-1-1536x1424.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Nadja-Haakansson_MD-Africa_Siemens-Energy-1.jpg 1672w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Nadja Haakansson, Managing Director of Africa at Siemens Energy </figcaption></figure>



In 2022, global emissions reached a record high of 36.8 billion tons of CO2. During 2023 several months broke global warming records and scientists at the European Union’s climate change service are now forecasting that it could be the warmest year ever logged. With global energy demand expected to surge by approximately 25% by 2030 and emissions expected to continue to grow, we face energy poverty in combination with climate impact, for the most vulnerable population in the world. That 775 million people still lack access to the most basic means of electricity, of which 600 million in Africa, the population growth rate in combination with these challenges will have devastating outcomes. Unless we unite to resolve the most significant hurdles.



The continent, which accounts for just 3% of total emissions globally, loses USD 7–15 billion annually from climate change impacts and this is projected to climb to USD 50 billion by 2030.&nbsp;Africa also faces a climate finance gap of USD 213 billion between now and 2030, according to the African Development Bank Group (AfDB). Adding more urgency to the situation, Africa has the fastest-growing population in the world, which is expected to reach 2.5 billion by 2050, according to the United Nations.&nbsp;



We need to implement the solutions that deliver energy in the most sustainable, reliable, and affordable way.



In a couple of days, COP28 will convene the people that can make this a reality. What is required is that COP28 delivers, despite challenging global and geopolitical circumstances, the will and collective action that turns information sharing, marketing, and vague recommendations into tangible action plans. What matters is implementation towards the desired change. <a></a>



Regional and global development finance institutions, global energy decision-makers, governments, and companies all need to commit to supporting Africa in building the energy future it needs.&nbsp;



<h2 class="wp-block-heading" id="h-recognising-today-s-challenges-nbsp">Recognising today’s challenges&nbsp;</h2>



Although Africa accounts for a fifth of the global population, the region has attracted only 2-3% of global energy investment, according to the AfDB and the International Energy Agency (IEA) in their recent <a href="https://www.iea.org/reports/financing-clean-energy-in-africa">Financing Clean Energy in Africa </a>report.&nbsp;



A major reason for this has been that, historically, the overall risk profile for projects in Africa made it significantly more expensive to finance than those in advanced economies. This was exacerbated by higher borrowing costs due to the Covid-19 pandemic and Russia’s war in Ukraine. Despite Africa’s immense green energy potential, developers often abandoned projects because they could not see their viability.



The AfDB and IEA propose the easing of financing costs to unlock a wave of clean energy spend in Africa.&nbsp;Currently, the cost of capital for energy projects in African countries is at least 2-3x higher than in advanced economies and China.



To deliver modern energy to all Africans by 2030, we will need to double the current energy investment in Africa. That means over USD 200 billion in spending per year, of which two-thirds will need to be directed to clean energy, according to the report. &nbsp;



<h2 class="wp-block-heading" id="h-commercial-case-for-an-african-just-transition">Commercial case for an African just transition</h2>



Two important recent announcements may go a long way to help mitigate climate financing challenges, by drawing attention to the opportunities and stimulating the commercial prospects that sustainable energy projects in Africa can offer.&nbsp;



The first is the <a href="https://www.afdb.org/en/news-and-events/speeches/statement-dr-akinwumi-adesina-president-african-development-bank-group-united-nations-climate-ambition-summit-session-delivering-climate-justice-accelerating-ambition-and-implementation-adaptation-and-early-warning-systems-all">African Development Bank’s announcement</a> in late September that it would provide USD 25 billion in climate finance by 2025. As part of this, USD 20 billion will go to the Desert to Power program to develop 10,000 MW of solar across eleven countries of the Sahel zone of Africa and provide electricity for 250 million people.



The second significant recent funding announcement for Africa is the<a href="https://www.linkedin.com/feed/hashtag/?keywords=cop28&amp;highlightedUpdateUrns=urn%3Ali%3Aactivity%3A7104789930274357250"> #COP28</a> finance initiative between the United Arab Emirates (UAE) and Africa. In strategic partnership with <a href="https://www.africa50.com/">Africa 50</a>, an infrastructure investment platform with African governments as shareholders, the initiative brings together public, private, and development capital from various sources in the UAE.



Its intention is to support African energy transition strategies, including enhanced regulatory frameworks and a master plan for developing grid infrastructure, integrating both supply and demand. The plan is to kickstart a pipeline of bankable clean energy projects in Africa, starting with 15 GW of clean power by 2030, by deploying USD 4.5 billion to catalyse an additional USD 12.5 billion from multilateral, public and private sources.&nbsp;



In making the announcement, COP28 President-Designate Dr Sultan Al Jaber said climate change now contributed to a fifth of Africa’s people being hungry, and the displacement of African citizens tripling in the last three years &#8211; dragging Africa’s GDP growth down by at least 5% every year. Urgent intervention is therefore not just for the sake of the climate &#8211; it is a socioeconomic imperative too. He announced that support to address these issues would be available to any African government with “clear transition plans, robust regulatory frameworks and a real commitment to putting the necessary grid infrastructure in place”.



<h2 class="wp-block-heading" id="h-next-steps-to-build-the-energy-future-africa-needs">Next steps to build the energy future Africa needs</h2>



Africa’s need to achieve energy security and a just transition are clearly established. The funding side of the equation is gaining attention though not yet solved. Another piece that needs to fall into place is governance.&nbsp;



In a bid to mitigate high capital costs, amplify socioeconomic development, and ensure a just energy transition, African governments need to take more efforts to improve climate governance and policy frameworks, to address corruption, curb emissions, and enable investment in clean energy solutions and infrastructure.&nbsp;



To facilitate progress, regional governments must reassess how they operate and recognize that energy is not a commodity but the foundation for social development, economic growth, and prosperity. The absence of a resilient electricity supply hinders economic growth and slows down social development. The energy transition must be embraced as the most significant socio-economic and environmental transformation since the Industrial Revolution.



African countries have never stepped into a COP28 with more solid opportunities to accelerate energy transition. Our African governments now need to take the necessary concrete action to unlock the monumental support they finally have access to, while addressing the decarbonisation opportunity as a pivotal moment to establish a new market and an accelerated industrialization. This is the tipping point and time for action.

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How we achieve the energy future Africa needs

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="633" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Os13-820x633.jpg" alt="" class="wp-image-430884" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Os13-820x633.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Os13-300x232.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Os13-117x90.jpg 117w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Os13-768x593.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Os13-1536x1185.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Os13-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Oscar Siziba, Head of Client Coverage for Business Banking at Standard Bank</figcaption></figure>



There is no doubt that technology has transformed all aspects of our personal and business lives. The financial sector is one such area that has drastically changed, as clients access financial solutions in new ways. For individuals as well as businesses, digital services have made financial services more convenient, affordable and efficient.



Despite these enhanced benefits, there are very few business owners who believe that technology can replace the role of a human being. In fact, many believe that having a skilled and trusted relationship banker who is knowledgeable about their business and understands its history, its financial position, and the sector in which it operates can make the difference between success and failure.



Businesses that are entering a growth phase or generally have complex needs around corporate finance, cashflow management, risk management, trade arrangements, forex and other issues simply cannot solely rely on digital banking. Instead, they require advice from a banker who understands the company’s purpose, people and strategy, so they can leverage technology and suitable banking solutions.&nbsp;



This becomes even more important in the current trading environment, which is characterised by sluggish Gross Domestic Product (GDP) growth – currently at 0.3% – and an unemployment figure edging towards 42%. All of the above, along with a cycle of high interest rates and the ongoing energy crisis, are some of the factors that are putting significant pressure on consumers and businesses.



It is during such times that a business must ensure it has a banking partner that understands it and that is able to support the business’s efforts to turn possibilities into opportunities. A relationship manager with an intimate understanding of a business’s financial health and performance is equipped to provide the requisite support to the business.



Equipped with digital tools, relationship managers can meet their clients’ expectations quicker and more efficiently. This way, banking becomes people-centric first and digitally enabled second. Being proactive means adopting digital tools that enhance communication, streamline processes and offer clients online access to information while maintaining a personalised service through relationship managers.



Having a trusted banking partner also simplifies the mechanics of expanding across borders and <a href="https://www.standardbank.co.za/southafrica/business/products-and-services/business-solutions/trade-point">doing business in Africa</a>.



The Standard Bank Group operates across 20 countries on the continent. It is here that relationship managers can leverage their extensive networks, both within the bank and externally. They can connect businesses with potential partners, clients and investors, helping them expand their reach and grow their operations. We are a human led and digitally enabled business which places clients at the centre of everything we do.



Having a single point of contact within the bank means a relationship manager can also create access to banking specialists who understand specific sector or industry nuances that can enhance a particular business’s challenges and opportunities. &nbsp;



Whatever the future holds, it is almost certain that digital efficiency and innovation will require continued, strong partnerships between business clients and relationship managers.&nbsp; Relationship banking will remain valid because it offers personalised services, expert advice, and customised solutions that go beyond the capabilities of automated systems.



To explore Standard Bank’s different types of business banking accounts visit; <a href="https://www.standardbank.co.za/southafrica/business/products-and-services/bank-with-us/business-bank-accounts/our-accounts">https://www.standardbank.co.za/southafrica/business/products-and-services/bank-with-us/business-bank-accounts/our-accounts</a>

Os13

Relationship Banking Crucial In The Digital Age

As South Africans continue to face the burden of power challenges, the adoption of solar photovoltaic (PV) solutions has reached unprecedented levels. While the PV energy solution has emerged as a robust leading technology for commerce, industry, and manufacturing, the financial burdens imposed are significant, especially for SME business owners. This has led to various innovative options emerging, promising access to clean energy.



Commercial and industrial businesses across the spectrum from small to medium enterprises to large corporates find it easier to justify funding these solutions, as they have become a necessity to trade, versus measures taken to contribute to climate matters or just convenience. The immediate arbitrage benefits that solar provides, battery costs dropping gradually, and its application to load shifting the overall backup solution presents greater viability. Any business can benefit from these solutions, however for businesses spending copious amounts on fuel for generators because of load shedding, the adoption of these systems is an essential consideration. These solutions aid in solving for supply interruptions while also providing partial insulation from tariff hikes.



One of the main incentives for business is that the payback period on capital investments has reduced steadily as energy tariffs have risen. Research shows that between 2007 and 2022, the Eskom tariff increased by 653%, effectively quadrupling the cost of power in 14 years. In April 2023, Eskom applied to NERSA for a 32% increase, indicating that this trend is not likely to change. This payback benefit has further been amplified by the recently passed amendment to the 12BA tax incentive, which allows businesses an accelerated wear and tear allowance on Solar PV investments of 125% in the first year.&nbsp;&nbsp;



Naturally, the need for financial solutions is a given requirement in this environment and the PV market has evolved rapidly. The current operating environment has seen financial institutions and solution providers offering various financing options. Standard Bank has been solutioning for this with cutting edge Solar PV and battery finance solutions to the market through its <a href="https://www.standardbank.co.za/southafrica/business/products-and-services/borrow-for-your-needs/vehicle-and-asset-finance">Commercial Asset Finance</a> division, for several years now. Opportunities to fund projects present themselves in numerous formats from clients who wish to own their own systems to independent power producers (IPP’s) who sell power.



Standard Bank has also recently provided digital platforms, <a href="https://powerpulse.standardbank.co.za/">PowerPulse</a> for commercial and industrial clients, and LookSee for residential and SME clients. &nbsp;Using these tools clients can source tailored and credible Solar PV and battery solutions. The journey entails a guided path to support clients in not falling into one of the many pitfalls that exist in the Solar PV market currently. It has proven to be a useful resource in shortening the client’s decision-making process through simplification. &nbsp;&nbsp;&nbsp;



Against this outlook, the options for acquiring clean energy have increased. Each has its advantages and disadvantages but allows opportunities for the most suitable to be selected. In the list below, the solutions offered by outright purchase, solar loans or solar subscriptions would be the most obvious choice. Options now open include:



1. Outright Purchase: Purchasing a solar installation outright allows complete ownership and control over the system. The benefits are long-term energy savings and even an opportunity to sell excess electricity back to the grid in areas where this is implemented. For smaller enterprises, however, the capital outlay can be problematic and solutions for clients in this category are now available through collaboration with the government in the <a href="https://www.standardbank.co.za/southafrica/business/products-and-services/borrow-for-your-needs/business-loans/business-solar-loan">Bounce Back Energy Loan</a> programme which has been launched.&nbsp;



2. Power Purchase Agreements (PPAs): A popular choice among South Africans, PPAs involve energy companies installing and retaining ownership of the solar system. The purchaser then buys the generated electricity at a predetermined rate, often lower than prevailing utility rates. PPAs require minimal upfront costs, making solar energy more accessible to a wider range of users. Solution providers in this environment are focussed mainly on C&amp;I clients.



3. &nbsp;Solar Leasing: Involving an agreement with a solar company, solar leasing offers reduced electricity costs during the lease term without owning the system outright. Options for buying the solar assets at the end of the lease may be available.



With the ever-increasing gap between supply costs and earnings at Eskom, the need for alternative energy sources becomes even more critical. Solar installations offer a promising avenue for reducing the strain on the national utility, and widespread adoption of PV systems will play a pivotal role in driving this energy revolution.



As the solar industry matures, more flexible and imaginative financing options are emerging, making solar energy accessible to a broader spectrum of users. The future of renewable energy in South Africa is undoubtedly bright, and with continued innovative approaches, solar power will pave the way to a greener and more financially sustainable future for all.



<a href="https://www.standardbank.co.za/southafrica/business/products-and-services/borrow-for-your-needs/business-loans/business-solar-loan">Click here</a> to learn more about Standard Bank’s Energy Bounce-Back Loan Scheme for businesses.

GoSolar

Solar pricing alternatives for business are now adding impetus to South Africa’s energy revolution.

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/RS5030_IMG_1535-lpr-1-820x547.jpg" alt="" class="wp-image-429723" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/RS5030_IMG_1535-lpr-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/RS5030_IMG_1535-lpr-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/RS5030_IMG_1535-lpr-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/RS5030_IMG_1535-lpr-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/RS5030_IMG_1535-lpr-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/RS5030_IMG_1535-lpr-1.jpg 2000w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Blended learning models have continued to gain traction in Africa, more so after the COVID-19 pandemic. However, while the adoption of these models shows promising prospects, continuously reviewing the progress in implementation is a crucial part of the roll out process.



The November edition of the Mastercard Foundation’s EdTech Mondays sought to explore the monitoring and evaluation of blended learning models. The questions on how to measure the success of these models, who should own the process, and if Africa’s educational landscape is well-equipped for the fast-changing ICT and digital trends were discussed at length.



To begin with, the continent still faces challenges in internet coverage. Those living in rural and remote areas often have to contend with difficulties in accessing technology-enabled learning. According to Shem Bodo, Senior Programs Officer at the Association for the Development of Education in Africa (ADEA), more must be done in preparedness and driving resilience of technology-enabled learning models.



“There are definitely challenges especially with learners who are either in vulnerable situations, hard-to-reach areas or from families with low socioeconomic status. While on one hand there has been some success in accessing blended learning models, on the other hand, there are still learners without inclusive access to tech-enabled learning,” said Bodo, who featured in the November edition of the EdTech Mondays.



A <a href="https://www.adeanet.org/sites/default/files/publications/synthesis_report_on_the_use_of_ict_in_education_web.pdf">recent study</a> commissioned by the Islamic Development Bank (IsDB) and the African Development Bank (AfDB), and supported by the Mastercard Foundation, showed that many African countries are at different levels in using ICT in education. This includes their policy and legal environment, curriculum reforms, teacher training, continuing professional development, as well as ICT expenditure levels.



“While there are areas in which there is some progress mostly initiated by learners themselves, in other regions the infrastructure is outdated, the cost of accessing devices is prohibitive, teacher preparation is lacking, and there are hardly any policies specific to ICT integration in learning,” added Bodo.



The findings from this study revealed that for ICT in education to be inclusive and accessible beyond the privileged few, there is an urgent need to address electrification and infrastructure issues in countries such as South Sudan, Chad, and Niger. Apart from Tunisia and Mauritius, all other countries in the study needed to pursue electrification efforts to reach the 100 percent target.



But there is some development, said Prof. Charles Ong’ondo, Chief Executive Officer of the Kenya Institute of Curriculum Development (KICD). He shared that in Kenya, for instance, the country is at 40 percent in the integration of technology in teaching and learning within basic education. The country has largely improved its infrastructure, trained more personnel, and continued to digitize educational content.



“In two or three years, blended learning could grow to 100 percent in Kenya. Whilst there may be other challenges to address, improving internet and electricity connectivity in the country is imperative. There should also be sustained efforts in training more teaching personnel,” Prof. Ong’ondo added.



Dr. Zelalem Assefa, CEO for ICT and Digital Education at the Ministry of Education in Ethiopia, shared Prof. Ong’ondo’s sentiments, and added that Ethiopia is equally doing more to invest in the development of blended learning models.



He further said that the Ethiopian government is continually investing in universities and boarding schools that provide more access to blended learning and empower teachers through continuous professional development programs. Dr. Assefa however believes that there is still more to be improved.



Bella Rwigamba, Chief Digital Officer for the Ministry of Education in Rwanda, shared these views, adding that educators are crucial for the introduction and implementation of tech-enabled pedagogical models, whether EdTech or blended learning.



“Training teachers is important in enhancing their competency and digital skills. This helps them to fully integrate technology in their teaching routines,” she said. “We have been doing this in different ways. We train them when they are already teaching, and when they are still in colleges; where they have courses on digital skills and how to deploy tech in teaching.”



The panelists also emphasized the importance of data-based monitoring and evaluation of blended learning model to ensure accurate analysis of the progress made. Such data would inform future decisions on its further development.



“Data is important in any such initiatives,” Dr. Assefa said. “Timely and accurate data is key in monitoring and evaluating progress that has been made in adopting blended learning models across Africa.”



In Ethiopia, the Higher Education Management Information System (HEMIS), and Kenya’s National Education Management Information System (NEMIS), have been instrumental in providing the relevant data and information on the progress of the learning model.



“We have to agree that we are in the 4th Industrial Revolution, and tech competency is a requirement. In Kenya, we are in the process of reforming our curriculum towards a more competency-based system,” Prof. Ongondo added. “KICD, therefore, monitors and evaluates the uptake of blended learning models to inform future decisions in developing the curriculum.”



Ethiopia is also doing as much to actualize tech-enabled learning in its schools’ curriculums, according to Dr. Assefa.



For Rwanda, Rwigamba shared that the country is putting in the efforts to boost the uptake of blended learning models by addressing key challenges particularly connectivity and electricity provision in schools, through different governmental departments and private sector partnerships. By 2024, the country intends to have all schools covered with either grid electricity supply or solar energy.



“For internet connectivity, in urban areas there is either fiber or 4G. In rural areas where these may not be available, we intend to use satellite,” she said. “There’s an ongoing partnership with Starlink which has about 50 schools connected through its services. But devices remain a big challenge. They are expensive and yet to be bought on a recurrent basis.”



Nonetheless, to ensure the success of blended learning models now, and in the coming years, the panelists in the November Edition of EdTech Mondays offered a raft of measures.



It was noted that participation and commitment of the leadership in African countries is important. Political goodwill was identified as vital in supporting the development of policies on technology-enabled learning. Such policies help to create favorable environments for investors in ICT resources, empower more educators, and implement development of the relevant infrastructures.



African countries also need to develop curricula that are adaptable for the future, and have the capability to adopt these curricula fast enough. Also, technology needs to be fully embedded in these curricula, while teacher training remains imperative.



A case in point, Rwigamba discussed Rwanda’s efforts in developing a new EdTech policy that plans to be launched in 2024 through the input of the relevant stakeholders. “For Kenya’s case, relevant departments and ministries in ICT, Education, and even Interior, need to work together to actualize EdTech,” Prof. Ongondo implied.



The same can be said of Ethiopia, where collaborations between the government and investors in the EdTech sector need to be encouraged to streamline tech-enabled learning models, alongside traditional pedagogies. To get the right outcomes, according to the panelists, it is necessary to ensure that no child is left behind in accessing technology-enabled education.



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Watch November&#8217;s episode of EdTech Mondays: Monitoring and Evaluation of Blended Learning Models



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Monitoring and Evaluation of Blended Learning Models

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/slack-imgs-820x547.jpg" alt="" class="wp-image-429453" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/slack-imgs-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/slack-imgs-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/slack-imgs-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/slack-imgs-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/slack-imgs-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/slack-imgs.jpg 1620w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Yellow Card, Africa&#8217;s leading licensed Stablecoin on/off ramp, has been awarded the prestigious &#8220;AFIS Disrupter of the Year Award&#8221; at the 2023 Africa Financial Industry Summit. </figcaption></figure>



Yellow Card, Africa&#8217;s leading licensed Stablecoin on/off ramp, has been awarded the prestigious &#8220;AFIS Disrupter of the Year Award&#8221; at the 2023 Africa Financial Industry Summit. The award ceremony, held on the 15th of November in Lome, Togo, recognised Yellow Card&#8217;s outstanding contributions to innovation and resilience in the African financial sector.



The Disrupter of the Year Award acknowledges companies that have demonstrated resilience in challenging times and whose innovation represents a market disruption. Yellow Card emerged victorious in a field of strong contenders, including Moniepoint, Sparkle, Ejara, and Bamboo. The award was received by Chris Maurice, co-founder, and CEO of Yellow Card, who expressed his deepest gratitude for the recognition.



“This award is further validation that our team is solving important, practical problems across the continent for businesses,” he said. “We have come a long way for a Stablecoin company to win a traditional finance award voted by judges who are all bankers.”



In addition to receiving the award, Chris was a featured speaker at the event that brought together over 1,000 financial industry leaders, regulators, bankers, and fintech entrepreneurs.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="586" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Chris-Maurice-AFIS-820x586.jpg" alt="" class="wp-image-429452" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Chris-Maurice-AFIS-820x586.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Chris-Maurice-AFIS-300x214.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Chris-Maurice-AFIS-126x90.jpg 126w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Chris-Maurice-AFIS-768x549.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Chris-Maurice-AFIS-1536x1097.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Chris-Maurice-AFIS.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Chris Maurice, co-founder, and CEO of Yellow Card</figcaption></figure>



Chris participated in an insightful interview with Mamadou Toure, Founder and CEO of Ubuntu Group, discussing the future of cryptocurrency in Africa. The interview delved into Yellow Card&#8217;s mission to challenge traditional finance by offering faster and more affordable international remittances and serving as a hub for trading Stablecoins, Bitcoin and other cryptocurrencies.



Yellow Card, founded in 2016 by Chris Maurice and Justin Poiroux, has expanded its operations to 20 countries since its 2019 launch in Nigeria. With over 1.7 million registered customers and more than 200 employees working across 18 different countries, the company remains at the forefront of revolutionising the African financial landscape, providing secure, liquid, and cost-effective access to Stablecoins and cryptocurrencies.

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