<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="605" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Bijan-Alizadeh-pic-supplied-2-820x605.jpg" alt="" class="wp-image-416100" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Bijan-Alizadeh-pic-supplied-2-820x605.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Bijan-Alizadeh-pic-supplied-2-300x221.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Bijan-Alizadeh-pic-supplied-2-122x90.jpg 122w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Bijan-Alizadeh-pic-supplied-2-768x567.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Bijan-Alizadeh-pic-supplied-2.jpg 1065w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Bijan Alizadeh, Founder of Cypher Capital</figcaption></figure>



It’s difficult to write what you call a complete story on any entrepreneur in the blockchain ecosystem. Theirs is an evolving tale that needs updating every day, just like the space they are in.



“You need to be up-to-date, as the blockchain space is growing at lightning speed,” affirms Bijan Alizadeh, the founder of Dubai-based venture capital (VC) firm Cypher Capital, which has just announced that it’s launching a $100 million seed fund aimed at investing in digital assets including crypto currencies.



Cypher Capital, which is four months old and currently a team of 25 with seven analysts looking into more than 120 projects, has $10 million in assets under management, and in the next three years, aiming for over $1 billion before raising money from institutions. &nbsp;



“We want to build a solid track-record,” says Alizadeh.



A Dubai resident for over 20 years, he “self-funded” Cypher Capital, which will invest in blockchain projects, and as he reiterates in a Zoom interview with CNBC Africa, “also invest in talent within the Middle East and North Africa (MENA) region”.&nbsp; &nbsp;&nbsp;&nbsp;



Alizadeh has an interesting story to tell you about what stoked his interest in the blockchain space in 2014. After studying electrical engineering at the American University in Dubai, along with his business partner, Munaf Ali, he was working on real estate projects at the time, and was in the hotel sector, one day, trying to sell a unit to a customer who said he will pay in bitcoin.



“And I said ‘what coin’?” says Alizadeh.



That was the moment their life and vision changed, and they never looked back.



“At the time of this incident in 2014, bitcoin was around $270. We decided to receive that transaction in bitcoin, and after one year, bitcoin started moving up and we looked at the technology and we said this is the future. It still is. We consider 95% of our portfolio is blockchain-focused.”



In 2015, they went on to found Phoenix, in the bitcoin mining space and which is still active.



Alizadeh calls Cypher Capital “his baby”, and a most exciting space to be in.



“In a traditional VC firm, you are running a sort of high-risk, high-reward business, but once you add the element of blockchain to it, it becomes 10 times more risky and more rewarding.



“In a traditional VC, you look at 20-30 projects a year, here, you have new ideas coming in every day, and amazing talent and everything in real life that they can bring to blockchain.



“It’s a lot more work, and we need to be more focused and it’s time-consuming, but at the end of the day, we are all helping to bring the ecosystem to the next level.”



Cypher Capital’s main focus is also mentorship. So to hand-hold young startups, the company is now building a 10,000sqft digital and crypto hub at JBR in Dubai that’s set to come online shortly this year.



“A lot of startups raising money need help, and a back office. We come in, and help projects to come together, share ideas, and synergise. It will be free of charge for startups; the idea is not to make money but to give back to the community,” says Alizadeh.



After all, Dubai has made so much happen in this space.



“In my mind, the United Arab Emirates (UAE) is one of the three biggest hubs when it comes to blockchain, the others being Miami and Singapore. The rules and regulations that are coming to effect by the UAE government and its leadership will essentially make the UAE the center of blockchain. There are more than 350 blockchain companies operating here and that number is growing day by day.”



He is also planning to take the hub to Singapore, Miami and hopefully Africa in the future, a continent he is watching closely.



“In Africa, a lot of countries have problems with payment solutions, especially in the remote areas, so blockchain can help be a solution for a lot of challenges. Africa is an emerging market and once the opportunity arises, we will jump in. We are constantly monitoring which jurisdiction to set up in.”



The company is also actively looking at projects in the GameFi, DeFi and Metaverse space.



“We have made over 12 investments in the last three months, but the most notable that will change the game will be Cross The Ages – I really believe that this is the game that you really want to play plus you make money on it. I am really trying to bring users to play this game because once you do, your whole view of GameFi will change,” Alizadeh promises.



For now, to make all this happen, the 35-year-old works long hours in five different jurisdictions and time zones.



“I call myself an old soul,” he laughs. “When you work 18-19 hours a day, 35 is an actual 50.”



Any advice for young people who have to work multiple time zones in a distributed, remote working world?



“My advice is that nothing is easy. You need to hustle. You have to dedicate your time and energy, but at the same time, take care of yourself. You may have the talent and the brains but work really hard to achieve!”



Ends

Bijan-Alizadeh-pic-supplied-2

Dubai-Based VC Firm Wanting To Take Blockchain To the Next Level

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="800" height="800" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/271600100_227444999559589_6631611609925370466_n-800x800.jpg" alt="" class="wp-image-416054" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/271600100_227444999559589_6631611609925370466_n-800x800.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/271600100_227444999559589_6631611609925370466_n-300x300.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/271600100_227444999559589_6631611609925370466_n-90x90.jpg 90w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/271600100_227444999559589_6631611609925370466_n-768x768.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/271600100_227444999559589_6631611609925370466_n.jpg 806w" sizes="auto, (max-width: 800px) 100vw, 800px" /></figure>



‘Now isn’t the time for pessimism’



Despite the geo-political tension in Eastern Europe, the global economy appears to be on a firm path to recovery after a period of turmoil caused by the Covid-19 pandemic. While some of the hardest hit economies including ours remain vulnerable, emerging green shoots in our economy give us comfort to assert that the worst of the pandemic is certainly behind us.



As President Ramaphosa alluded to in his recent State of the Nation address, South Africa is alive with opportunities and it’s time for contrarians to embrace the opportunities coming our way. Post-Covid and as our industries are rebounding, we envisage a vastly transformed economic order in which sustainable and equitable economic growth will become a dominant theme.



Most encouraging is the gradual but steady realignment of supply chains across the globe which were disrupted at the height of the pandemic. This is cause for optimism. And make no mistake, our economy will re-discover its lustre. A unique but key character trait of our country and its people is our ability to persevere and rise above our challenges even in the face of adversity.



As<a> the Economic Reconstruction and Recovery Plan </a>– government’s economic blueprint unveiled by President Cyril Ramaphosa in 2020 begins to take root, we are optimistic that the various infrastructure development projects such as construction of bulk water infrastructure, construction of new road networks, energy capacity expansion plans, improvement of our port infrastructure among others, present great opportunities for sustainable as well as inclusive growth.



This provides a great opportunity for our country to create a new crop of Black Industrialists, women including youth entrepreneurs who for long were consigned to the periphery of productive sectors of the economy. In addition, the planned auction of spectrum which is now closer to reality will usher in a new technology and competitive pricing regime in SA’s telecoms landscape.



Other than increased access to broadband we expect communication costs to come down enabling for a competitive positioning of our economy. Needless to remind, our country is endowed with abundant natural resources and renewable energy sources. This ably positions us to adapt to the green revolution.



In addition, our natural resources, solar, wind, biomass for power generation &#8211; skills and technological capacities put us in a prime position to take the lead in the hydrogen economy and the green hydrogen value chain for the benefit of our people. Our ultimate objective is to position our country as a leading supplier to the global green market.



Most important, the development of the hydrogen industry will be a key enabler in South Africa’s just transition to a decarbonised future. It’s been proven that Hydrogen has the potential to decarbonise various industrial sectors and we as government intend on getting involved in the development of those catalytic projects needed to develop this new industry.



In this regard, government has officially launched a road map to identify high-level outcomes for a South African hydrogen economy. The Hydrogen Society Roadmap will serve as a national coordinating framework to facilitate the integration of hydrogen related technologies in various sectors of the local economy thereby stimulating economic recovery in line with objectives of the Economic Reconstruction and Recovery Plan.



There is scope in this strategy because in developed economies, hydrogen is already powering commercial buses. It is our hope that in the not-too-distant future, locally manufactured cars will be powered by green hydrogen. And the fact that it can be used in many commercial applications including welding metal to dying fabrics to making electronics, plastics, and fertilizers makes for a compelling case for early adoption.



That said, the pronouncement last month by the South African Reserve Bank at its monthly policy meeting to the effect that the local economy would register a 1.7% growth this year is cause for optimism. To achieve this growth, we are cognisant of the need to inject massive capital into the economy which effectively ties in with objectives of the South African Investment Conference (SAIC). In his foresight, President Ramaphosa in 2018 committed to raising over R1.2 trillion worth of investments over a five-year period.



Since its launch, SAIC has raised R774 billion in investment pledges to date. Off key significance, this annual gathering of business titans and government leaders has always served to provide a reality check as to whether the private and public sectors are living up to their commitments in helping the country address the triple challenges of unemployment, poverty, and inequality. We are therefore hopeful that the 4th edition of this event scheduled for the 23-24th March in Johannesburg will serve its purpose.



We are also hopeful that the conference will nudge us closer to achieving the investment target set by the presidency in 2018. As the President summed it up in his SONA address, Now isn’t the time for pessimism. it’s time for business especially the private sector to come to the party and show us what they are made off so together we can forge a sustained partnership and rebuild our economy.



*The author is a SAIC Presidential Envoy

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SA is on a cusp of an economic rebound

The world’s plastic packaging waste problem can be solved. That is the good news. This, however, will require multi-industry humility and collaboration and not competition, as well as intentional and resolute government intervention to level the playing field and create an enabling circular economy environment. There are many areas where it makes sense for industry to compete, but environmental protection and waste management in particular is not one of these areas.



In fact, around the globe, leading consumer goods companies, such as Coca-Cola, Nestle, Unilever, Pepsi, Adidas and H&amp;M, have set ambitious targets for recycling and the use of recycled content, while governments the world over are putting in place measures that ensure industry responds with the requisite sense of urgency. In the PET sector (polyethylene terephthalate), this has seen the demand for plastic bottle feedstock for recycling beginning to outstrip the supply.



Coca-Cola and its bottling partners have committed to a 100% recycling rate and 50% recycled content  by 2030, as part of their World Without Waste strategy, and the other companies listed here have similar ambitions.



A McKinsey report (How plastics waste recycling could transform the chemical industry, December 20181), estimates that given the targets that have been set by industry worldwide, almost 60% of global plastics production could be from recycling and re-use by 2050, while the use of virgin plastic would decline to 40% of total PET consumption. This is good news because it means reduced consumption of virgin material, therefore, reduced extraction and use of natural resources enabling a sustainable future.



Based on the estimated pre-Covid global PET consumption of 25 million tonnes, this would mean a need to develop and set up close to 11.8 million tonnes per annum of recycled PET globally, and the scale of the challenge, relative to the size of the market, is similar in Africa.



For example, based on the estimated pre-Covid PET consumption of 215&nbsp;000 tonnes, South Africa alone would need to recycle 82&nbsp;000 tonnes a year to meet the country’s demand for food-grade recycled PET at 50%, indicating an estimated shortfall of 50&nbsp;000 tonnes. Currently with an installed recycled PET capacity of 33 000 tonnes, SA recyclers only managed to supply around 18 000 tonnes of recycled PET, which falls short of the SA recycled PET demand. This shortage in recycled PET supply in 2021 was a result of the shortage in PET bottle feedstock.&nbsp;



Solving this supply and demand challenge requires greater levels of co-operation at all levels between governments, packaging producers, brand owners, retailers and consumers.



Globally, there has to be a single standard for food-grade recycled PET so that recyclers can invest efficiently in equipment and the development of new technology, rather than having to cater to different standards for different businesses and customers.



In Africa and other developing markets, there is an additional layer of complexity, in that the market for recycled plastic in many countries is too small to support investment in recycling plants, yet the rules governing the movement of plastic waste across borders inhibit the economies of scale needed to achieve optimal rates of recycling, limit waste going to landfill, and create employment in the circular economy.



At a minimum investment of about R250 million, a recycling plant needs to produce &nbsp;at least 12&nbsp;000 tonnes of recycled PET a year to be viable, and the global gold standard is up to 50&nbsp;000 tonnes. This requires access to at least 20&nbsp;000 tonnes of used beverage bottles a year, while in a country like Namibia for example, the total beverage PET market is only 5&nbsp;300 tonnes. With better regional co-operation, it would be possible to convert plastic bottles into washed flakes in Namibia, return it to South Africa for recycling into recycled PET, and supply both the local SA market and surrounding markets with recycled material. This means some cross border Extended Producer Responsibility may be required, as well as multi-government engagement and collaboration. This cross-border feedstock supply would also enable sustained operations of recycling plants and supply of recycled PET in South Africa.&nbsp;



The SADC region is working towards this goal, and the same model could be replicated in the rest of the continent, with mega regional recycling plants established in Kenya or Uganda for East Africa, and Ghana and Nigeria for West Africa as well as in Ethiopia. This would create the scale required to attract the investment we need in recycling capacity to meet our joint industry targets.



The model is based on the principle of Extended Producer Responsibility, in which producers declare the volumes of plastic placed in the market, and pay a commensurate fee to a Producer Responsibility Organisation (PRO), such as PETCO in South Africa. The PRO then funds the activities related to the recovery and recycling of the packaging substrate, making the used packaging material valuable enough to inspire collection and stimulating packaging circular end use demand to enhance packaging circularity<s>.</s>



The model has been so successful since PETCO was established in South Africa, growing from collection and recycling of 9&nbsp;000 tonnes of PET in 2005 to more than 82&nbsp;000 tonnes in 2020, that it is now being rolled out to three other markets in our territories.



The big remaining hurdle is to stimulate much higher rates of collection throughout the continent, and this is where more co-operation will make a decisive difference.



Today in South Africa, the challenge with local feedstock supply remains, leading to under-utilisation of existing recycling plant capacity and undersupply of recycled PET to meet the local demand. In an effort to unlock local PET bottle feedstock and recapacitate local waste pickers, Coca-Cola SA and Coca-Cola Beverages Africa (CCBA) funded collectors in South Africa with close to R9m last year in partnership with PETCO and ARO (Africa Recycling Organisation). The funds were used to subsidise collector transport costs, working capital and infrastructure. Knowing that many other similar organisations are also investing in similar initiatives, imagine how much further we could go as an industry if we were to co-ordinate our efforts in this space for enhanced circular economy and social impact.



Too few consumers are aware of the need to recycle or the benefits of doing so, and the infrastructure needed to facilitate higher rates of recycling is woefully inadequate.



The first part of this problem can be addressed through a mass awareness campaign, drawing in stakeholders across government and industry, to drive a culture change at a national and continental level. Such a campaign should transcend individual packaging waste streams, material promotion campaigns, or value chains, and focus on changing the mindset of consumers when it comes to waste of any kind and mobilising consumers to act. The example of the LoveLife HIV/Aids awareness campaign in South Africa comes to mind.&nbsp;



Consumers and their handling of packaging, post consumption is a critical missing link. After all, no packaging throws itself in the river or on the ground.&nbsp; Responsible handling of packaging post consumption is very much a consumer mindset problem, and this is a real problem that requires a deliberate, well-orchestrated, multi packaging substrate, multi stakeholder agenda. This includes using media assets such as national broadcasters, to send the message home and drive a massive consumer mindset change.&nbsp;



This would eliminate the current unnecessary duplication and confusion of messages on waste recycling and promote anti-litter culture while ensuring maximum impact.



Secondly, we need to make it far easier to recycle, both at home and in public places. Collection points should become part of the design process in the construction of new shopping centres and living space for example, and municipalities need to step up their support for recycling by providing recycling bins wherever they are needed and collecting recyclable materials more regularly and separated from other non-recyclable waste.



At the moment, none of this is happening at remotely the level required.



Finally, far more of our packaging needs to be recyclable and reusable. This ensures that we reduce consumption of natural resources by recycling what we extract and reusing the packaging we put out there more often.



At CCBA, over 20% of our revenues are already coming from returnable or refillable packs. We are strategically looking to increase the use of homogenous returnable packs. We have also already made over 95% of our packaging recyclable, and are tracking well with our efforts to meet the 100% recycling rate by, or before, 2030.



While most large producers have moved in this direction, retail chains – where consumers buy most of their packaged goods – have a critical gatekeeping role to encourage suppliers to do more. They have the power to make producers supply them with products packaged in predominantly recyclable and reusable packaging and make recycling both easier and more rewarding for consumers.



The opportunity in the circular economy is huge. It could help to solve Africa’s waste and unemployment challenges, stimulate entrepreneurship and innovation, and ensure a better future for all. There is a lot of work to be done, but a World Without Waste is within reach. We have to see beyond our own business, substrate and industry interest and put the environment first.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/WhatsApp-Image-2022-03-15-at-7.01.22-PM-820x546.jpeg" alt="" class="wp-image-415954" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/WhatsApp-Image-2022-03-15-at-7.01.22-PM-820x546.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/WhatsApp-Image-2022-03-15-at-7.01.22-PM-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/WhatsApp-Image-2022-03-15-at-7.01.22-PM-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/WhatsApp-Image-2022-03-15-at-7.01.22-PM-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/WhatsApp-Image-2022-03-15-at-7.01.22-PM.jpeg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Tshidi Ramogase is the CCBA Group Public Affairs, Communications and Sustainability Director and Chairperson of PETCO</figcaption></figure>



1. <a href="https://www.mckinsey.com/industries/chemicals/our-insights/how-plastics-waste-recycling-could-transform-the-chemical-industry">https://www.mckinsey.com/industries/chemicals/our-insights/how-plastics-waste-recycling-could-transform-the-chemical-industry</a>

WhatsApp-Image-2022-03-15-at-7.01.22-PM

Africa can conquer the waste problem with partnerships and co-operation

On a coastal stretch of land near Lagos, as far as the eye can see, a sprawling oil refinery is under construction. It belongs to Aliko Dangote – the wealthiest African in the world and a visionary entrepreneur who wants to transform Nigeria into an economic powerhouse. To realise that vision he has taken a bold gamble &#8211; one that could end his country’s dependence on fuel imports for good. The West African state sits on 37 billion barrels of crude oil<a href="#_ftn1" id="_ftnref1">[1]</a> but extracts barely 2 million barrels per day.&nbsp; Worse yet, it refines almost nothing. The four<a href="#_ftn2" id="_ftnref2">[2]</a> state-run refineries are in a sorry state, and it costs more to import petrol and diesel than the revenue it gets from crude oil exports. This is turning out to be unsustainable. Petroleum imports exceeded oil exports by US$43.56bn last year (2021).<a href="#_ftn3" id="_ftnref3">[3]</a> This has put pressure on the naira and pushed the state into a spiral of debt. To keep a lid on the problem the government caps the price on gasoline and pays importers the difference between the landing cost of oil and pump prices. Fuel subsidy costs 250bn naira<a href="#_ftn4" id="_ftnref4">[4]</a> (US$600m) a month. It is a burden the government has been trying get rid of for years but with little success. A cosy nexus of politicians, traders, union leaders, and petrol smugglers have benefitted enormously from this knotty problem, and they have tried to keep things the way they are. Fearing protests President Muhammadu Buhari decided to delay scrapping fuel subsidies in January.<a href="#_ftn5" id="_ftnref5">[5]</a> More recently, Abuja and Lagos plunged into chaos after reports of adulterated fuel sparked a scramble for petrol.



All this could become history once the US$19bn<a id="_ednref1" href="#_edn1">[i]</a> Dangote integrated oil refinery becomes operational. It is spans over 2300 football fields<a id="_ftnref6" href="#_ftn6">[6]</a> and will have the capacity to process 650,000 barrels of crude per day. It employs more than 40,000 people and is considered so vital that the state-owned Nigerian National Petroleum Corporation (NNPC) has decided to take a 20% stake in the project for US$2.7bn. The president of the African Development Bank (AfDB), Akinwumi Adesina called it a ‘game-changer’. It is, without doubt, an impressive project – the likes of which Africa has not seen. But will it prove to be as transformative as its backers like to portray? Aliko Dangote appears to have styled himself on the Indian billionaire-industrialist Mukesh Ambani of Reliance. They certainly have a lot in common. Both men have made their fortunes in heavily regulated markets. Both have benefitted from protectionist industrial policies. They have been accused of political patronage and they both have a reputation of making bold investments. It is also a remarkable coincidence that they have both thrived in similar unequal societies. I suspect the Dangote oil refinery may even have been inspired by Ambani’s 3035-hectare petrochemical industrial complex in Jamnagar is the world’s largest refining hub.<a id="_ednref2" href="#_edn2">[ii]</a> It covers an area half the size of Manhattan and has the capacity of processing of 1.4 million barrels of crude oil a day. This facility has helped turn crude scarce India into one of the world’s largest exporters of refined fuel. Dangote



may be trying to replicate in Nigeria what Ambani has achieved in India. He has sent dozens of Nigerian engineers to India for training. He believes his refinery will not only end Nigeria’s dependence on foreign oil but make it an exporter of refined fuel. It may also have a knock-on effect on the rest of the economy. Agriculture contributes more than 24% to the national GDP.<a href="#_ftn1" id="_ftnref1">[1]</a> The massive fertiliser plant at the site is expected cut US$3bn worth of urea imports.<a href="#_ftn2" id="_ftnref2">[2]</a> The hard currency all of this will save could stabilise the Naira and help the Nigerian government balance its budget and unlock capital for social good.



Construction on the refinery project has been delayed due disruptions caused by the Covid-19 pandemic. It is expected to become operational next year (2023). But its opening will come at a time when the world is turning its back on oil-related business. Financial institutions are backing away from lending to energy intensive carbon emitting projects. Even Ambani has tried to divest part of his refining and chemical business (although his Jamnagar facility has ramped up crude processing following the recent surge in oil prices). He is building building factories that make more environmentally friendly products like solar panels and batteries. But Aliko Dangote shows no signs of following suit. Under a joint venture with Peugeot he has started to roll out gasoline-run cars from an assembly plant in the state of Kaduna. Dangote is betting on something that is going out of favour &#8211; an irony for a man who once avoided getting his hands dirty in oil. Africa is a young, growing and a hungry marketplace. He is betting that fossil fuel may yet have a long way to go here. He may be right. Oil has so far been mostly a wasted resource for Nigeria. It has promoted corruption and left a terrible legacy of loot, pilferage, conflict, and ecological disaster. Let us hope he can turn this curse into a blessing.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="674" height="800" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Amit-Jain-674x800.jpg" alt="" class="wp-image-415864" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Amit-Jain-674x800.jpg 674w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Amit-Jain-253x300.jpg 253w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Amit-Jain-76x90.jpg 76w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Amit-Jain-768x912.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Amit-Jain.jpg 1031w" sizes="auto, (max-width: 674px) 100vw, 674px" /><figcaption>Amit Jain is the Director of NTU-SBF Centre for African Studies at the Nanyang Business School in Singapore</figcaption></figure>

Amit-Jain

Is Aliko Dangote emulating Ambani in trying to turn Nigeria’s oil curse into a blessing?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/article-image-1-820x429.png" alt="" class="wp-image-415816" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/article-image-1-820x429.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/article-image-1-300x157.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/article-image-1-160x84.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/article-image-1-768x402.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/article-image-1.png 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



With banks providing loans as far back as in Babylon in 1800 BC, and ‘modern’ banking coming about in the 1470s, banks have not been the fastest innovators.



However, the past 10 years has seen more advanced products and more adoption of disruptive technology than in the previous 100 years, where traditional bricks and mortar, large branch network, limited product financial institutions have given way to mobile, agile, multi-currency, e-banking, global, internet driven service providers.



And it is not only the service delivery method that has changed so dramatically, but the pace of change, sparked by the inclusive nature and tech-savvy social media generation demanding faster, more diverse, secure services.



The demand for data, information and financial services, and the technology to support vast data consumption now, has only been made possible by the advent of high-speed networks, smart phones and technology companies, translating those needs, enabling anyone, anywhere to trade international equities, bonds and derivatives, arrange a mortgage, make deposits, trade crypto currency, electronically sign and send vital documents, at the click of a button.



Whilst the past 20 years may be the era of Internet Banking, 2020 onwards has launched the decade of crypto.



As of January 2022, there were approximately 10,000 cryptocurrencies&nbsp;in existence, many created for specific purposes with solid use cases, and others as speculative investment tools with spectacular volatility, few investors and even less volume.



Always a case of buyer beware, some earlier coin offerings experienced bad press through hacking, loss of consumer confidence, no activity, price collapse and where the mere mention of blockchain sent the investment community into a frenzy.



And how times have changed, with much more consumer demand, as, like bond and equity offerings, new coins are coming to market via initial exchange and security token offerings following extended due diligence by the trading platform.



Much has been written about crypto coin volatility, with a prime example being Bitcoin with value over USD 67,000 in November 2021 and currently trading around USD 36,000. &nbsp;However, in the past, the equities markets have also produced spectacular returns and losses, albeit across different timelines and remain considered a safer haven than crypto markets



Whilst the 1929 wall street crash witnessed significant falls such as RCA common stock from $505 to $26 and DuPont from $217 to $80), black swan events have also elevated stock markets. For example, Alcoa experienced 12 month returns of 217%, and risk averse long term portfolio holders have borne fruit with Monster, with shares at 2$ in 2005, hitting $140 in 2015, and the darling of the equities market Amazon, with canny investors buying at USD 2 in the 1990s, where today they trade at USD3,500. Whilst equities still represent a more stable investment platform, crypto has captured a new imagination with a new demographic.



With an almost baffling choice of cryptocurrencies, the key issue will be the ability to seamlessly cash out of low volatility, low value stock and move in and out of fiat currency in deciding which type of coin best suits a long-term strategy.



So, with a requirement for a more stable, digital crypto instrument, the latest area of investor interest and some may say hype, is asset tokenisation. Blockchain technology remains the vital component, the mechanism and enabler to underpin crypto transactions.



Asset tokenization is where digital tokens are used to fractionalize ownership of assets. Physical items are reflected on the blockchain which manages ownership rights – and anything from property to university degrees and from gold to stocks can be tokenised, with over 500M USD already tokenized in real estate.



These tokens are created during a so-called STO (Security Token Offering), in which the real estate is essentially split up into digital, tradable assets stored on a blockchain.



The idea of fractional real estate ownership is nothing new. Since 1960, REITs (Real Estate Investment Trusts) were introduced in the United States and by pooling investors’ capital, the real estate market suddenly became much more accessible and makes it possible to invest in the underlying asset without having to buy or manage the entire property.



Fast forward to 2022 and a the advent of tokenisation, where real estate is fractionized into small pieces, namely called tokens. &nbsp;



What are the benefits? Global increases in property prices, expensive bank rates, less monetization opportunities, languishing assets earning low interest, high costs of ownership with less people able to afford current and future prices all of these can be managed, by fractionising and tokenization.



And as digital tokens on a blockchain can be securely and efficiently transferred without a middleman, trading&nbsp;of these asset-backed tokens suddenly becomes much easier and cheaper, leading to increased liquidity.



It’s easy to see why investors of all sizes are enthusiastic about this development. With a much lower market entry point with less initial investment, the global real estate market is valued at around $280 trillion, making it one of the largest, most illiquid, and non-transparent markets on earth. And post pandemic, in an era of rising costs, there are many distressed assets where such an investment approach may provide an economic lifeline to owners, and competitive opportunities for smaller investors.



One can almost imagine the scenario where an investor might be able to purchase two tokens in a block or apartments in Chennai, ten tokens of a factory in Malaysia, and three tokens of a flat in Hong Kong- all payable in coins, through a single platform.



Recognising this opportunity, Euro Exim Bank are investigating the tokenization of such assets and looking at offering several unique coins, asset backed by investment grade instruments in an easy to trade blockchain-based token.



Whilst the industry is always on the lookout for the next best thing, we believe the tokenisation projects will position the bank as a crypto provider of choice, with provenance, security, assurance, and value.



In addition to our strategy on coins and tokens, our journey towards full digitisation of documents and digitalisation of processes across the extensive trade ecosystem continues apace.



Our lofty ambitions and aspirations are to be the premier provider of trade and crypto currency services through coins and tokens, contributing to better customer experience with fast cross border payments, low transaction fees, efficient settlement, and management of platforms, will facilitate access to distributed financial services for the unbanked, ultimately enabling digital financial inclusion.



By Dr. Graham Bright, Head – Compliance and Operations, Euro Exim Bank

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What next for crypto and Asset tokenization?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/MicrosoftTeams-image-8-820x547.jpg" alt="" class="wp-image-415808" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/MicrosoftTeams-image-8-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/MicrosoftTeams-image-8-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/MicrosoftTeams-image-8-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/MicrosoftTeams-image-8-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/MicrosoftTeams-image-8-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/MicrosoftTeams-image-8-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Black woman in an African market receiving payment via contactless transfer from a customer using their mobile phones. Photo: via Shutterstock</figcaption></figure>



An Africa-wide regulatory platform is needed to harness the continent&#8217;s potential for innovation in financial technology, according to members of the AFIS Advisory Board, a network of leading financial industry decision-makers in Africa.



Financial innovation is an extraordinary growth engine for Africa. The continent&#8217;s fintechs raised approximately $1.3 billion in investment in 2021 alone with players like OPay and Interswitch in Nigeria and Wave in Senegal reaching unicorn status (valuations of over $1 billion). Their success is based on a promise that previously seemed out of reach: to give hundreds of millions of Africans access to financial services.



Yet the rapid growth of fintechs has also raised concerns among the public and regulators alike. In Kenya, <a>one in five borrowers </a><a href="#_msocom_1">[ON1]</a>&nbsp;using fintech platforms have difficulty repaying their loans, a rate twice as high as in the conventional banking sector. In Nigeria, the National Information Technology Development Agency (NITDA) is concerned about the protection of user data and the sometimes-questionable collection practices of fintechs.



Appropriate regulation providing checks and balances while supporting these new financial players to develop is thus of paramount importance to extend financial services to the 57% of unbanked Africans. Consumer protection will be essential both to create confidence among new users of financial services and to ensure a level playing field with traditional banking players.



This is why we are convinced that it is necessary to develop a pan-African regulatory platform to keep pace with rapid technological progress. This platform, which would bring together central banks, fintechs, traditional banks and insurers, would help harmonise licensing rules in Africa, develop financial inclusion and better protect consumers.



To achieve this, we have identified several levers to activate.



<h2 class="wp-block-heading" id="h-pan-african-regulatory-platform">Pan-African regulatory platform</h2>



National central banks are the overseers of financial regulation but face ample challenges keeping pace with innovation. This is a bottleneck for fintechs, banks and insurers looking to expand financial inclusion across Africa through blockchain, P2P-lending or other emerging technologies.



The Central Bank of Morocco (Bank Al Maghrib) for instance introduced a regulatory framework for payment institutions in 2014 but has since acknowledged the rules had been unclear for fintechs hoping to break into the Moroccan market. The bank has now opened an innovation office to have an open dialogue with fintechs, helping it to explain and if needed adapt current regulation accordingly.



We see scope for a pan-African platform allowing regular discourse between financial innovators and central banks. A pan-African platform would allow central banks to abreast of financial innovation and help harmonise national regulatory frameworks. This could allow financial innovations to operate seamlessly in multiple African markets and more rapidly reach Africa’s underserved population.



Existing innovation hubs, incubators and fintech networks across the continent could be leveraged for input from startups, while associations such as the Association of African Central Banks (AACB) can help the regulators unite. The platform could also be a win for consumer protection by bringing novel technologies currently outside of central bank licensing regulations &#8211; such as mobile money lending – within its scope without harming innovation.



<h2 class="wp-block-heading">Converging sandbox regulatory frameworks</h2>



We also encourage regulatory sandboxes &#8211; permitting fintechs to test financial product innovations without regulatory constraints – to converge regionally.Regulatory sandboxes first emerged in the UK in 2015. The idea has since expanded globally and is gaining pace in Africa. Sierra Leone, Kenya, Rwanda and Mozambique were early African adopters, while Ghana this year launched a sandbox pilot and Nigeria introduced a regulatory framework. Sandboxes can be a vehicle to introduce and scale financial innovation, while offering SMEs working capital and creating an ecosystem for other players to innovate with similar products.



Yet the sandboxes emerging in a small handful of African countries have been at national level and have been slow and expensive to setup. Africa’s sandboxes also vary widely in eligibility criteria, length, and priority financial innovations. This can deter credible innovators from applying and creates a barrier for a tried and tested financial innovation coming out of a sandbox in one country to expand to another.



A regional or pan-African sandbox framework could open the possibility of cross border sandboxes arrangements, allowing an innovation to be trialled in multiple countries at once. Two years ago, the Central Bank of West African States launched a FinTech Task Force, which has among its objectives a West African sandbox spanning multiple countries. We encourage further arrangements across the continent.



<h2 class="wp-block-heading">Mobilising industry associations</h2>



The AFIS Board finally urges regulators to leverage international and pan-African industry associations to support Africa’s financial innovation infrastructure. Sandboxes, innovation hubs and incubators are cost and resource intensive for regulators and have taken significant time to roll-out in some African nations.



Cash-constrained regulatory authorities can do more to call upon African and international industry associations resources for capital and operational support. The&nbsp;Global Financial Innovation Network&nbsp;(GFIN), the Africa Fintech Network, the African Crowdfunding Association and West Africa Bankers Association are among the associations that could be mobilised.



We conclude that a pan-African regulatory platform and harmonised sandboxes, both reinforced by industry associations, will create a robust and dynamic regulatory infrastructure that can catalyse financial inclusion across the continent. Financial innovation cannot work in the long term without the confidence of both consumers and governments. The sustainable financial inclusion of hundreds of millions of Africans depends on it.



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Fintech: Pan-Africa regulatory platform needed to boost financial inclusion

On March 8th, the world is celebrating International Women&#8217;s Day. This year, the world focuses on the march to tear down gender bias.



However, as we enter this day, there are signs that celebrations should remain subdued because many women recently have faced traumatic shocks to their economic status, primarily due to COVID-19. Sadly, industries that saw the largest downturns also have higher female participation rates, meaning that COVID-19 has disproportionately affected women.



This means, over the past two years, women have not only had to deal with systemic biases but have also had to adapt to pandemic-related challenges. Unfortunately, for some women entrepreneurs, these obstacles were a breaking point.



<h2 class="wp-block-heading" id="h-an-uphill-battle-for-women-in-africa">An uphill battle for women in Africa</h2>



Female entreprenures are not the minority, they <a href="https://ideas4development.org/en/ffemale-entrepreneurship-key-ingredient-africa-growth/">account for 58% of the continent&#8217;s self-employed population</a>. Yet, ingrained biases on their business skills, technical capabilieis and even leadership hold back business growth. We might think these biases don’t exist, but they do.



The World Bank estimates that that 70% of women-owned SMEs in developing countries are excluded from accessing funds from traditional financial institutions, which means that women-owned or led SMEs face a credit deficit of up to US$300 billion per year. Compounding this deficit is that women entrepreneurs in developing nations typically face a crisis of confidence, leadership deficiencies and a lack of technical knowledge.



We now have a better idea of what this costs, with the <a href="https://openknowledge.worldbank.org/handle/10986/31421">World Bank</a> suggesting that women-owned or led SMEs are a third less profitable than male-owned businesses in comparative sectors. Biases are a prohibiting growth and potential.



There is a need for a different approach to removing prejudices to drive sustainable benefits to women in a significant, measurable, and scalable way.



<h2 class="wp-block-heading">A simple equation: consider women to break the bias</h2>



To advance gender equality and break biases, we need to tailor investments to account for women&#8217;s distinctive circumstances.



So what can investors do differently to break the bias? Here is a tried and tested five-point plan.



One, decrease investment sizes to accommodate the smaller-size of women-led businesses. Smaller ticket sizes have the dual benefit of lowering funds at risk for the investor while increasing accessibility for women entrepreneurs.



While lowering ticket sizes will improve accessibility, women still face confidence gaps when applying for financing. We have seen 80% of women entrepreneurs self-select out of funding primarily due to a crisis of confidence. Yet, applicants do not face the same confidence hurdles when the investment window is ring-fenced for women. This leads to our second recommendation: support more women-only funds, programmes or investment windows.



Three, there needs to be more investment into supporting women entreprenuers to build attractive business plans, robust financial models, and business leadership skills. Across Africa, there remains a capability gap in running businesses, typically driven by lower educational attainment levels and fewer business opportunities. African women have no deficit of good ideas; however, some cannot conceptualize these into robust and executable plans.



Only with the right direction can women entrepreneurs unlock their businesses&#8217; potential by investing in women&#8217;s core entrepreneurial capabilities and skills.



In fact, we have seen explosive growth in women-led businesses after they receive technical assistance. For example, Virginia Sibanda, the CEO of VIRL financial services, a micro financier based in Zimbabwe. She received tailored support from finance and leadership advisors. As a result, Virginia and VIRL better managed the business&#8217;s financial position. In addition, combining financial advice with leadership advice accelerated Virginia&#8217;s ability to engage potential investors from a place of confidence. Virginia continues to attest that &#8220;obtaining the right advice changed how I run my business, how I lead and has placed me on the path to success&#8221;.



Four, contractual terms should be flexible to the realities of women entrepreneurs and their lower propensity to raise matching funds or follow-on investment within stipulated timeframes.



Five, focusing investments on entrepreneurs and businesses that positively impact women&#8217;s economic empowerment can result in a multiplier effect on reducing female bias and increasing empowerment.



<h2 class="wp-block-heading">Investing in women is a slow road but pays dividends</h2>



We should not underestimate the energy needed to break these biases.



Over the last few years, there has been an increase in women-led funders and funds earmarked for women-led businesses. These are all designed to ensure that women-led SMEs can secure and utilize the available funding.



However, the amounts of allocated funds remain scarce. With women-owned or led businesses generally outperforming the market, this lack of funding will constrain Africa.



Only through the collective will of all stakeholders to break down biases, women entrepreneurs will finally be able to operate in a favourable business environment, access affordable funding, and have the right skills, information, and networks to ensure they take their rightful place in Africa&#8217;s economic development journey.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Victoria-Mugshot-080322-820x547.jpg" alt="" class="wp-image-415761" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Victoria-Mugshot-080322-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Victoria-Mugshot-080322-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Victoria-Mugshot-080322-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Victoria-Mugshot-080322-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Victoria-Mugshot-080322-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Victoria-Mugshot-080322-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Victoria Sabula is the Chief Executive Officer, AECF.</figcaption></figure>

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Banking on Women’s Enterprises to Break the Gender Bias

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/25392653883_c566caf364_o-820x547.jpg" alt="" class="wp-image-412680" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/25392653883_c566caf364_o-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/25392653883_c566caf364_o-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/25392653883_c566caf364_o-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/25392653883_c566caf364_o-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/25392653883_c566caf364_o-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/25392653883_c566caf364_o-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Women of Color in Tech stock images, Women in Tech stock images
Photo: via Flickr</figcaption></figure>



(New York, 8 March)&nbsp;–&nbsp;Advancing gender equality in the context of the climate crisis and disaster risk reduction is one of the greatest global challenges of the 21st century. This year’s theme for International Women’s Day (8 March), “<a href="https://unwomen.us6.list-manage.com/track/click?u=4a4c7b832288dbbd2a91f5cfa&amp;id=d786bc2337&amp;e=7f34601071" target="_blank" rel="noreferrer noopener">Gender equality today for a sustainable tomorrow</a>”, explores the ways in which women and girls are leading the charge on climate change adaptation, mitigation, and response around the world, contributing powerful leaders and change-makers to a more sustainable future for all.&nbsp;



During the International Women’s Day official UN Observance, Secretary-General&nbsp;António Guterres&nbsp;emphasizes the important&nbsp;role of women and girls in fighting climate change. “We need more women environment ministers, business leaders and presidents and prime ministers. They can push countries to address the climate crisis, develop green jobs and build a more just and sustainable world. We cannot emerge from the pandemic with the clock spinning backwards on gender equality.”&nbsp;&nbsp;



Women are increasingly being recognized as more vulnerable to climate change impacts than men, as they constitute the majority of the world’s poor and are more dependent on the natural resources, which climate change threatens the most. However, despite increasing evidence, there is still hesitancy in making the vital connections between gender, social equity and climate change.&nbsp;&nbsp;At the same time,&nbsp;progress made towards a more gender-equal world is being obstructed&nbsp;by multiple, interlocking and compounding crises, most recently, the ongoing aggression against Ukraine.&nbsp;&nbsp;Whatever the crisis, from conflict to climate, women and girls are affected first and worst.&nbsp;Without gender equality today, a sustainable future, and an equal future, remains beyond our reach.



“We have seen the impact of COVID-19 in increasing inequalities, driving poverty and violence against women and girls; and rolling back their progress in employment, health and education.&nbsp; The accelerating crises of climate change and environmental degradation are disproportionately undermining the rights and wellbeing of women and girls”, said UN Women Executive Director Sima Bahous. “We have today the opportunity to put women and girls at the centre of our planning and action and to integrate gender perspectives into global and national laws and policies. &nbsp;We have the opportunity to re-think, re-frame and re-allocate resources. We have the opportunity to benefit from the leadership of women and girls environmental defenders and climate activists to guide our planet’s conservation. Climate change is a threat multiplier.&nbsp;But women, and especially young women, are solution multipliers”. As exposed by the COVID-19 pandemic, the economic and social fallout impacted women and girls disproportionately, further challenging their ability to withstand the impacts of the climate and environment crises. The pressures of juggling work and family, coupled with school closures and job losses in female-dominated sectors meant even fewer women were participating in the workforce, with about 113 million women aged 25–54, with partners and small children, out of the workforce in 2020.&nbsp;



Climate change also drives increased vulnerability to gender-based violence. Across the world, women bear a disproportionate responsibility for securing food, water and fuel, tasks that climate change makes more time-consuming and difficult. Scarcity of resources and the necessity of traveling further to obtain them may open women up to more violence including increased risk factors linked to human trafficking, child marriage or access to resources to protect them from gender-based violence.&nbsp;



Women and girls are taking climate and environment action at all levels, but their voice, agency, and participation are under-supported, under-resourced, under-valued and under-recognized.



Continuing to examine the opportunities, as well as the constraints, to empower women and girls to have a voice and be equal players in decision-making related to climate change and sustainability is essential for sustainable development and greater gender equality.&nbsp;Solutions must integrate a gender perspective into climate, environmental and disaster risk reduction policies and programmes; promote and protect women environmental human rights defenders; build resilience of women and girls and their organizations; strengthen prevention, response and recovery from sexual and gender-based violence and improve; and invest in gender specific statistics and data to amplify the relationship between gender and climate.



<h2 class="wp-block-heading" id="h-commemoration-events-around-the-world">Commemoration events around the world:</h2>



International Women&#8217;s Day commemoration events globally will include ministerial meetings, rallies, marches, media workshops, storytelling and content production, photo exhibits, celebrities&#8217; engagements, and social media activations.



UN Women offices will join the commemorations through a variety of events including inter-generational cross-thematic dialogs in Thailand, a&nbsp;<a href="https://unwomen.us6.list-manage.com/track/click?u=4a4c7b832288dbbd2a91f5cfa&amp;id=f436c7dfdc&amp;e=7f34601071" target="_blank" rel="noreferrer noopener">virtual gallery</a>&nbsp;telling the stories of climate champions from Bangladesh, Cambodia, and Viet Nam, a regional&nbsp;<a href="https://unwomen.us6.list-manage.com/track/click?u=4a4c7b832288dbbd2a91f5cfa&amp;id=126e50a7ac&amp;e=7f34601071" target="_blank" rel="noreferrer noopener">Youth Climate Smart Entrepreneurs Video challenge</a>&nbsp;in East and Southern Africa, field visits in Senegal and Jamaica, a panel to result in an official policy recommendation in Mali, an interactive photo exhibit in Lebanon, a collaboration with well-known illustrators form Europe and Central Asia, a rowing competition in Egypt, an award ceremony for local women eco-friendly businesses in Albania, a 5K Run in Mexico, and a media workshop on promoting gender equality and sustainable development in Liberia and a High-level commemorative event during&nbsp;<a href="https://unwomen.us6.list-manage.com/track/click?u=4a4c7b832288dbbd2a91f5cfa&amp;id=f8c1d0071a&amp;e=7f34601071" target="_blank" rel="noreferrer noopener">#LACForum</a>, among many more.&nbsp;



&#8211; Around the World,&nbsp;<a href="https://unwomen.us6.list-manage.com/track/click?u=4a4c7b832288dbbd2a91f5cfa&amp;id=981ece831d&amp;e=7f34601071" target="_blank" rel="noreferrer noopener">over 110 Stock Exchanges</a>&nbsp;are hosting for the eighth consecutive year bell-ringing ceremonies to demonstrate their support for women’s rights and gender equality. In Abu Dhabi ADX Trading Hall, the ceremony was joined by UN Women Deputy Executive Director Anita Bhatia during her official visit to UAE.



&#8211;&nbsp;<a href="https://unwomen.us6.list-manage.com/track/click?u=4a4c7b832288dbbd2a91f5cfa&amp;id=493a923376&amp;e=7f34601071" target="_blank" rel="noreferrer noopener">In Photoville</a>&nbsp;in New York and at the World Expo in Dubai, the United Nations Department of Peace Operations, in collaboration with the United Nations Department of Political and Peacebuilding Affairs, and UN Women will present the photo exhibition “In Their Hands: Women Taking Ownership of Peace”. The exhibition profiles 14 women from around the world who have mediated with armed groups, participated in peace talks, advanced political solutions and advocated for women’s rights and participation. Their stories come from the Central African Republic, the Democratic Republic of the Congo, Mali, South Sudan, Sudan, Lebanon, Yemen and Colombia. The exhibit also profiles the local women photographers who took the photos, telling the story through their lenses.

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International Women’s Day celebrates the contribution of women and girls as climate solution multipliers

If you hear the backstory of nearly every successful woman entrepreneur in Africa, you will be amazed by the kind of odds they had to overcome to get to where they are. Ibukunoluwa Abiodun Awosikam, the chair of Nigeria’s First Bank Limited, for example, started her Chair Centre Limited with almost no capital and zero experience, but through a strategic approach, discipline, and patience, has over 27 years grown it to generate annual revenues of over $12 million.



It is the same story for Julian Adyeri Omala, who built Uganda&#8217;s largest juice processing factory, Delight Ltd, which now has over five million customers. Others are Zimbabwe’s techpreneur Melissa Mwale, Kenya’s media magnate Gina Din-Kariuki, and Malian agricultural seeds producer Maimouna Coulibaly.&nbsp;&nbsp;



Yet these are not isolated stories; there are many others across Africa, where women have started and grown small businesses to build large enterprises that employ many Africans. This is in a continent where women make up 60 percent of the self-employed workforce.



And while one would think that women entrepreneurs, as the biggest job creators on the continent, would receive utmost support, it becomes worrisome to realize that they face the biggest hurdles in business growth, starting with limited financing options. Indeed, the African Development Bank notes that women entrepreneurs suffer an estimated $42 billion financing gap, partly brought about by the misconception that women are riskier clients, and a limited capacity by financial institutions to understand and respond appropriately to the needs of women entrepreneurs.



Equally, the policy and regulatory environment in the region fails to recognize that women require extra business support because they typically invest 90% of their income in the education, health, and nutrition of their family and community &#8211; compared to 40% for men.&nbsp; These skewed demands have been especially evident during the ongoing Covid pandemic, where women are suffering the greatest economic and social difficulties arising from increased caregiving, business loss, furloughs, and increased domestic abuse. Structural problems from the gendered expectations, explain why women have taken on more of the extra caregiving during this unprecedented period.



But we are now at a change-point, where we realize that, as a continent, the next step of our economic transformation requires the deliberate participation of women, particularly those in entrepreneurship. On this path, it is critical to develop financing mechanisms that help women-owned and women-led businesses fast track their growth in markets. This may include the relaxation of collateral requirements by banks to take into account the societal limitations that block women from accessing the often-requested land title deeds, car logbooks, and bank statements. Emerging technology can be used to circumvent such challenges, because, already, mobile money defines the everyday transactions of small women entrepreneurs and the data generated therefrom should suffice to inform the ability of loan repayment. I propose this as a strategy having already seen it work exceptionally at Payhippo, where we leverage data analysis to offer SME loans to women-owned businesses in Nigeria within 3-4 hours, with a repayment rate of 97 percent.&nbsp; We do this through KYC checks to verify the business&#8217;s cash flow data, business owner data, and industry data &#8211; all within a few minutes.&nbsp;



Meanwhile, it is also critical that women entrepreneurs are educated on the need to keep financial records, which they can now easily generate with popular mobile ledger applications, as well as through transactions on popular mobile wallets. Such training could be achieved as part of the programmatic activities by the numerous women-focused charitable organizations, and as part of companies’ corporate social responsibility activities. Even more, progress can be made by emphasizing financial literacy training to girls in school, an impressionable demographic that can grow to entirely transform their communities.



But perhaps the greatest impact would be achieved through policy interventions, where national regulatory and supervisory agencies directly support financial inclusion through a raft of measures aimed at strengthening the access to finance by women-SMEs. This, as proposed in the 2015 Addis Ababa Action Agenda, could include the use of development banks and innovative instruments that acknowledge the importance of a robust risk-based regulatory framework for all financial intermediations.



It is a tough journey to financial inclusion, but it is one that we must make because its outcomes will define our future.



-ENDS-



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="553" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Chioma-Ruky-Okotcha-2-820x553.jpg" alt="" class="wp-image-415714" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Chioma-Ruky-Okotcha-2-820x553.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Chioma-Ruky-Okotcha-2-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Chioma-Ruky-Okotcha-2-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Chioma-Ruky-Okotcha-2-768x518.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Chioma-Ruky-Okotcha-2-1536x1036.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Chioma-Ruky-Okotcha-2.jpg 1628w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



The writer is the Co-founder and Chief Operating Officer at Payhippo, an SME lending company based in Nigeria&nbsp;

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Africa’s next stage of growth will be achieved through women’s financial inclusion

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="504" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/ODS5-820x504.jpg" alt="" class="wp-image-415701" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/ODS5-820x504.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/ODS5-300x184.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/ODS5-146x90.jpg 146w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/ODS5-768x472.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/ODS5.jpg 900w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Image provided by Mary-Jean Nleya</figcaption></figure>



International Women’s Day (IWD) is just around the corner, a day in which to pause and recognize the accomplishments of women all around the world and gain inspiration from such trailblazing women. IWD is of course not the only day, out of 365 days in a year, in which to celebrate women’s achievements – this should be done every day. IWD is, however, a symbolic day to draw attention to the importance of women’s rights and women’s empowerment as well as to observe all of women’s great feats throughout history.



IWD was <a href="https://www.internationalwomensday.com/Activity/15586/The-history-of-IWD">first</a> celebrated in 1911. And in 2022, over a century after its first celebration, there have been great strides made in the quest for gender equality, yet a lot still needs to be done.



According to a 2021 <a href="https://www3.weforum.org/docs/WEF_GGGR_2021.pdf">report</a>, it will take the world <a href="https://www.cnbc.com/2021/04/01/wef-covid-worsened-the-gender-gap-it-will-take-135-years-to-close.html">135.6 years</a> to attain global gender equality in all spheres. Particularly at a time when progress towards gender equality was <a href="https://www.weforum.org/agenda/2020/07/gender-equality-women-employment-covid19/">regressed</a> by the pandemic.



Women’s representation and gender diversity in leadership positions in various sectors is one of the levers to drive gender equality. Yet women are significantly underrepresented in leadership positions in the political, social, corporate and academic spheres.



<h2 class="wp-block-heading" id="h-women-s-underrepresentation-in-leadership">Women’s underrepresentation in leadership</h2>



Managerial and leadership positions continue to be male dominated with women holding approximately <a href="https://www3.weforum.org/docs/WEF_GGGR_2021.pdf">27%</a> of managerial roles. Oftentimes women speak of obstinate ‘glass ceilings’ that hinder women’s upward mobility to senior roles in the workplace. From politics to sports, media to leadership roles in business – one thing is clear women remain underrepresented.



For example, in the business world, on <a href="https://www2.deloitte.com/global/en/pages/about-deloitte/press-releases/women-in-the-boardroom-report.html">average</a>, women hold 19.7% of corporate board seats, of that number 6.7% chair the boards and 5% are CEOs.&nbsp;



Women in leadership positions open up more opportunities for other women. In a recently released research <a href="https://www2.deloitte.com/global/en/pages/about-deloitte/press-releases/women-in-the-boardroom-report.html">study</a>, it found that there is a relationship between having a female CEO and the gender diversity of their boards.



<h2 class="wp-block-heading">Breaking the bias</h2>



In addition to working hard, talented women in the workplace also have to shake off <a href="https://www.ilo.org/wcmsp5/groups/public/---ed_dialogue/---act_emp/documents/publication/wcms_601276.pdf">biases</a>. Some of the additional challenges women face in the workplace are not explicit discriminatory acts, but subtle <a href="https://www.ilo.org/wcmsp5/groups/public/---ed_dialogue/---act_emp/documents/publication/wcms_601276.pdf">unconscious bias</a>.



As with the theme of the IWD campaign for 2022, #<a href="https://www.internationalwomensday.com/theme">BreakTheBias</a>, it is time to break the bias that hold adept women back from advancing in their careers – and doing away with biases for example that say “leadership” always has a <a href="https://www.aauw.org/resources/research/barrier-bias/">male</a> face. These kinds of stereotypes do not serve society. Leadership roles are supposed to represent the diversity of the humanity they are designed to serve. To succeed in breaking the bias requires a concerted effort from both women and men in the workplace – in recognizing the subtlety of unconscious bias and creating an enabling work environment for talented women to thrive in their careers.



It is important for ambitious, hardworking and well deserving women in the workplace to be rewarded for their efforts in equitable ways without biases hindering their career moves. The antidote to unconscious bias and stereotyping against women in the workplace is normalizing highly skilled women occupying leadership and decision-making positions simultaneously and equitably with their male counterparts.



<h2 class="wp-block-heading">Leading women</h2>



While women’s underrepresentation in leadership roles is a reality, there are trailblazing women climbing up the career ladder and, in the process, shattering glass ceilings and breaking the bias.



Women such as <a href="https://www.wto.org/english/thewto_e/dg_e/dg_e.htm">Dr. Ngozi Okonjo-Iweala</a>, the World Trade Organization (WTO) Director-General, who became the first female and first African to serve in the top-most role of the WTO in March 2021.



Another leading woman is Deloitte Africa’s first female CEO, <a href="https://www2.deloitte.com/za/en/profiles/rredfearn.html">Ruwayda Redfearn</a> – who will occupy the position of CEO effective 1 June 2022. In an interview with her on 25 February 2022, she <a href="https://www.theglobalcommunique.com/in-depth-conversations/">said</a>: “The business environment is still predominantly male … the more female leaders you have, gives us the opportunity to make those big shifts.”



In addition to Ruwayda Redfearn’s recent appointment, Deloitte East Africa also announced its first female CEO, <a href="https://www2.deloitte.com/za/en/kenya/pages/about-deloitte/press-releases/deloitte-east-africa-appoints-ceo-elect-anne-muraya.html">Anne Muraya</a>, who will assume her position as CEO also effective on 1 June 2022.



In sports, Salima Mukansanga became the Africa Cup of Nations’ <a href="https://www.dw.com/en/no-dream-is-too-big-for-salima-mukansanga-afcons-first-woman-referee/a-60390019">first female officiating referee</a> in the group stages of the soccer competition in 2022.



In Egypt, <a href="https://www.france24.com/en/live-news/20220305-woman-sits-on-key-court-in-egypt-first">Radwa Helmi</a> on 5 March 2022 became the first woman judge to chair over a hearing in the country’s State Council.



Women all over the African continent, and beyond, are normalizing female leadership by advancing in their respective careers and in so doing paving the way for other women.



While women in recent times are making inspiring moves; <a href="https://www.history.com/news/african-female-warriors">history</a> also speaks to the notable feats of female warriors and leaders. One such example, of a leading woman from history, is <a href="https://www.bbc.com/news/av/world-africa-44772345">Yaa Asantewaa</a> of the Ashanti Empire, which is today modern-day Ghana. She was a queen warrior who in 1886 led an army to protect her kingdom’s golden stool.



<h2 class="wp-block-heading">Gender-equal countries</h2>



There are countries that have made visible steps in support of women’s representation and leadership as part of their commitments towards gender equality.&nbsp;&nbsp;



According to the 2021 Global Gender Gap <a href="https://www3.weforum.org/docs/WEF_GGGR_2021.pdf">Index</a>, the country with the most gender parity is <a href="https://www3.weforum.org/docs/WEF_GGGR_2021.pdf">Iceland</a> with 89.2% of the gender divide closed. The <a href="https://www3.weforum.org/docs/WEF_GGGR_2021.pdf">two</a> African countries in the top 10 list of countries with the most gender gaps closed are: Namibia at 80.9% – ranking 6 – and just behind it, ranked at 7, is Rwanda sitting at 80.5% of the gender gap closed as of 2021.



<a href="https://rwanda.un.org/sites/default/files/2021-08/Gender%20Compliance%20Report_Final%20%28003%29.pdf">Rwanda</a> also has a female majority <a href="https://www.parliament.gov.rw/women-representation">parliament</a> at 61.3% – which bucks the global trend when it comes to gender diversity in parliament.



<h2 class="wp-block-heading">International Women’s Day 2022</h2>



It is important to uplift the status of women’s leadership on the African continent and indeed globally. Hence the significance of days such as <a href="https://www.internationalwomensday.com/theme">IWD</a> that draws the world’s attention to the important topic, women’s empowerment.



Women’s empowerment is not only for the benefit of one gender over the other, it is about ultimately elevating society as a whole. It means making society make adequate and equal use of the skillset and expertise of a previously unrealized half of the population.



While this article focuses mainly on women’s empowerment from the angle of women’s career advancement and particularly women in leadership; however, one thing is sure, women’s empowerment is not only to celebrate or advocate for career women. Women’s empowerment celebrates the fullness of ‘womanity’. That is, the opportunity for a woman, no matter where she is in the world, to be at liberty to choose who she wants to be and thrive: as a homemaker, a career woman or both – free from bias and stereotypes.



Happy International Women’s Day. Celebrating the fullness of womanity every day. &nbsp;



*Mary-Jean Nleya is a writer for <a href="https://www.theglobalcommunique.com/">The Global Communiqué</a>. She is an Emerging Leader alumnus of the Policy Center for the New South and a One Young World ambassador. &nbsp;



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Celebrating Leading Women Who Break the Bias

African women have growing reason to be hopeful about their futures as we mark International Women’s Day. It is true there is still a very long way to go towards gender equality, but change is gathering momentum and the days when only lip service was paid to women’s rights are coming to an end.



For example, the World Bank reports that Africa has implemented the most reforms promoting gender equality of any region globally, with&nbsp;71 reforms in the last 10 years.&nbsp;



There is also a greater focus on going beyond the mere legal recognition of equality, and greater intent to promote real economic empowerment which will reduce women’s reliance on men and increase their ability to make choices for themselves.



This is critical because, without the means to provide for themselves, women are often unable to exercise the freedoms which are recognised in law.



According to a report by the Brookings Institution, 75 to 90 percent of non-agricultural employment in Africa is&nbsp;informal and low-paid&nbsp;work in which women are three times more likely to be employed as contributing family workers than their male counterparts. This means they are often unpaid and therefore vulnerable to exploitation.



Recognising that the economic empowerment of women will be central to the continent’s ability to achieve the sustainable development goals of Agenda 2063, the African Union has declared the period from 2020 to 2030 as the Decade on Financial and Economic Inclusion for African Women.



In line with this agenda, Coca-Cola Beverages Africa (CCBA) is taking a rigorous, research-based approach to ensure maximum impact of its own economic inclusion programmes for women.



The company commissioned research to assess the effectiveness of its existing initiatives so that it could take informed decisions on which to accelerate or scale up and replicate across the continent. The research, conducted by the consultancy SSK Investments, also looked at examples of successful women empowerment programmes outside the Coca-Cola system, as well as opportunities to partner with others for greater impact.



This follows the success of the Coca-Cola system’s 5by20 women empowerment initiative, which aimed to empower 5 million women globally by 2020.



Audited results of the programme showed that 2 million women in Africa have been equipped to succeed as entrepreneurs, while also helping to create sustainable communities.



CCBA has now adopted the three pillars of education, employability and entrepreneurship as a framework for its economic inclusion strategy.



We define economic inclusion as the opening of gainful economic opportunities by providing access to markets and other economic activities leveraging the business and the entire industry.



Our aim is to boost income, provide decent earning potential and improve skills and business knowledge for women, resulting in them accessing other opportunities.



For example, in Ethiopia CCBA partnered with the Jobs Creation Commission to build 150 retail kiosks for 600 women returning from Middle Eastern countries.



Along with the kiosks established in 11 cities across the country, the women were trained in customer service and financial management to develop their business skills and ensure their success as entrepreneurs.



CCBA also helped 263 women who had earned a living by collecting firewood to create new sources of revenue after the opening of Entoto Park, where they could no longer earn their living from firewood.



The women now collect plastic for recycling instead and also sell refreshments, including Coca-Cola products, at five shops established in the park.



Meanwhile, CCBA in South Africa (CCBSA) has established a bursary fund at the University of Pretoria to support female students from previously disadvantaged backgrounds in their final year of engineering studies.



The students had their outstanding fees fully paid, which enabled them to graduate.



The beneficiaries were studying towards Electrical, Mechanical and Industrial Engineering degrees.



Last year, CCBSA Managing Director Velaphi Ratshefola was again the winner in the Top Gender Empowered: Male Driving Gender Empowerment category at the Standard Bank Top Women Awards.



These awards honour outstanding leadership, inspiration, vision, and innovation in organisations that play a role in ensuring that women are equal and active participants in building the economy.



In Ghana, CCBA subsidiary Voltic GH Limited joined the non-profit organisation Girls in Science and Technology (GIST) to launch the GIST- University of Mines and Technology, Tarkwa chapter.



The programme introduces GIST to woman students at the university and promotes their participation in the fields of science, technology, engineering and mathematics (STEM), while sparking their interest in the career opportunities available to them.



The programme also provides mentorship and guidance to girls from elementary school through to various universities. The managing director of Voltic GH Limited, Flora Jika, is the first female managing director at CCBA.



The benefits for Africa of promoting meaningful participation in the economy by women will be felt by all.



It is estimated that existing gender gaps cost the economy about 15% of GDP, whereas women’s economic empowerment boosts productivity, increases economic diversification and reduces income inequality, in addition to other positive development outcomes, according to UN Women.



Companies can also benefit from having more women in the leadership ranks, which has been shown to increase organisational effectiveness and growth. It is estimated that companies with three or more women in senior management functions score higher in all dimensions of organisational performance.



CCBA is reaping the benefits of growing the number of women leaders in the business, with women leadership now standing at 38%, which is an increase of 9 percentage points from the previous year.



It is clear that for Africa to realise its full potential, it must create opportunities for women to do so too.



This will require deliberate partnerships to ensure that woman entrepreneurs have access to capital. While there has been some improvement in this area, 84% of funding raised by startups in Africa last year went to male single founders or all-male founding teams.



Funding remains the biggest challenge and we need more partnerships with funders to unlock the full potential of African businesswomen.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="779" height="800" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Tshidi-pic-2-779x800.jpg" alt="" class="wp-image-415663" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Tshidi-pic-2-779x800.jpg 779w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Tshidi-pic-2-292x300.jpg 292w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Tshidi-pic-2-88x90.jpg 88w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Tshidi-pic-2-768x789.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Tshidi-pic-2-1496x1536.jpg 1496w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Tshidi-pic-2-scaled.jpg 1995w" sizes="auto, (max-width: 779px) 100vw, 779px" /><figcaption>Tshidi Ramogase is the CCBA Group Public Affairs, Communications and Sustainability Director</figcaption></figure>

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Africa’s focus shifts from rights on paper to economic inclusion for women

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="513" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/image001-1-820x513.jpg" alt="" class="wp-image-415602" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/image001-1-820x513.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/image001-1-300x188.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/image001-1-144x90.jpg 144w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/image001-1-768x480.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/image001-1.jpg 900w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Technology is changing money as we know it. Financial technology or fintech as a form of financial innovation has reshaped the financial services industry, particularly in Sub-Saharan Africa. More recently, the advent of central bank digital currencies (hereafter CBDC), presents a transformative opportunity for the global financial sector. New analysis shows over 90 percent of global economy exploring a CBDC. According to The Atlantic Council’s CBDC Tracker, nine countries&nbsp;have now fully launched a digital currency. Nigeria is the latest country to launch a CBDC, the e-Naira, the first outside the Caribbean. The e-Naira is expected to boost cross-border trade and financial inclusion, make transactions more efficient as well as improve monetary policy, according to the Central Bank of Nigeria.



So, what exactly is a CBDC? Simply put, a CBDC is the digital form of a country’s fiat currency that is also a claim on the central bank. Instead of printing money, the central bank issues electronic coins or accounts backed by the full faith and credit of the government.



The idea of digital money is not new, many of us use debit and credit cards or payment apps for transactions. Africa’s reputation for innovation as the global leader in mobile money is a key driver behind the continent’s burgeoning fintech investment scene. The continent is already the largest adopter of mobile money transfer systems, comprising nearly half of the globe’s registered mobile money customers, approximately 70 percent of global mobile money transactions, and two-thirds of the transaction volume by value.



But what would make a CBDC different? One of the big financial developments over the last few years has been the rise in popularity of cryptocurrencies – with one in particular, Bitcoin, standing out. Unlike traditional money, cryptocurrencies are not issued by a central bank, but rather via a decentralized network of computers, typically using blockchain technology. Even juggernauts like Facebook, now known as Meta, are trying to get in on the act with the 2019 announcement that it would develop its own digital currency, known at the time as Libra and now rebranded as Diem. Central banks are experimenting with their own form of digital currencies, to counter the tsunami of cryptocurrencies we are currently witnessing. As a general matter, central banks dislike private, decentralized money (like Bitcoin), since they cannot control the supply of it, and it also threatens the sovereignty of the national currency. Hence, numerous central banks around the world from China to Sweden to South Africa are working on their own state issued CBDC. According to the International Monetary Fund, some 100 countries are at varying stages of CBDC exploration.



While still in its infancy, there are compelling reasons for central banks to issue CBDC’s, including the need to support the digital economy and e-commerce which has been accelerated by the covid-19 pandemic. CBDC’s can also provide a solution to overcome the risks associated with unregulated payment solutions, which are exploding both on the African continent and globally. Unlike public blockchains like Bitcoin and Ethereum, where information recorded is available to all, CBDC’s are private or permission blockchains, accessed only by the central bank and the parties it chooses. There are two kinds of CBDC’s. Wholesale CBDC’s are used to facilitate payments between central banks and commercial banks or the entities that hold their accounts with central banks. The other one is retail CBDC’s which can be used by businesses and individuals. It’s like currency in your mobile wallet issued directly by a central bank. This could be a game changer and have huge implications around the word. Retail CBDC’s could make a strong case for financial inclusion because a central bank could directly transfer funds to the unbanked as long as they have a mobile phone. This is especially promising in Sub-Saharan Africa where the World Bank estimates that up to 65 percent of adults are unbanked. Imagine funds being transferred for covid-19 pandemic relief, assistance from natural disasters, etc. The central bank could also use CBDC’s as a tool to influence monetary policy and spur spending in order to kick-start the economy during recessionary periods. The opportunities are plenty, but there are risks involved as well.



If individuals could all hold their money at the central bank, why hold money at the local branch of a commercial bank? This could lead to a run on commercial banks and could have consequences for the entire banking industry. It’s highly unlikely that central banks want to risk that because a strong banking sector is crucial for the financial health of an economy and central banks just aren’t designed to deal with millions of retail customers. So, the approach by the central banks is most likely to be two-tiered. Issue the CBDC to the banks who then issue it to the retail customers. This would allow the authorities the room to experiment with this new financial tool without disrupting the entire banking model.



Furthermore, there are a number of legal and regulatory gaps towards CBDC implementation in Africa that must be considered. One major impediment is that identified accounts will likely need to be required in order to ensure Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) compliance. Currently, the World Bank estimates that an estimated 1 billion people around the world and 45 percent of women in low-income countries do not have an official ID. Regionally, Sub-Saharan Africa shows the largest coverage gap, where close to one in three people in surveyed countries lack a foundational ID. Additionally, data privacy and protection laws have the potential to impact the roll out of CBDC’s regionally. Over the last decade, African countries have steadily passed laws and adopted regulations on cybersecurity and data protection. To date, 33 countries have data protection laws and/or regulations. Combatting AML/CFT and ensuring data privacy and protection are not core to central bank objectives which is usually price and financial stability. Ultimately, central banks will need to strike a fine balance between public privacy and reducing illegal activity.



As countries begin to experiment with CBDC’s, the design and implementation of these initiatives will likely vary all around the world, across both advanced and emerging markets. Kenya’s central bank has recently requested public feedback on the applicability of a potential digital Kenyan shilling, shortly after it emerged that Zambia is testing its viability too. With the launch of Nigeria’s e-Naira in October 2021 and the fact that Ghana is said to be at an advanced stage of launching its e-cedi, this can serve as a blueprint for central banks across Africa and globally preparing to launch their own CBDC &#8211; having a first mover advantage may not be a huge advantage in this instance.



The consideration of digital currencies by central banks has the potential to support financial inclusion and stability as well as to increase efficiency in operations and to secure financial integrity, particularly in cross-border payments. Several significant challenges and considerations, however, remain on the horizon. The growth in cryptocurrencies coupled with the covid-19 pandemic accelerated CBDC discussions globally with enormous upside potential for the financial sector, particularly in Sub-Saharan Africa. What comes next is hard to predict, but an awful lot will depend on how this is managed.



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Iftin Fatah is a Director, Financial Institutions at the U.S. International Development Finance Corporation. The views expressed herein are her own.

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Are Central Bank Digital Currencies the Key to Unlocking Financial Inclusion in Africa?

Today, with global attention increasingly focused on political conflicts and <a href="https://www.nytimes.com/2022/02/03/business/economy/food-prices-inflation-world.html">rising food prices</a>, it can be challenging to equally focus on the <a href="https://foreignpolicy.com/2022/02/18/drought-africa-climate-humanitarian-crisis/" target="_blank" rel="noreferrer noopener">hunger and humanitarian crisis</a> unfolding across East Africa. It involves a prolonged drought decimating crop and livestock production—Africa&#8217;s primary source of income.&nbsp;&nbsp;



I admit that a food crisis in the Horn of Africa may seem like a depressingly familiar situation. But if you talk to people on the ground, for them, the situation today feels very different. And they’re right: climate experts say you have to go <a href="https://www.rescue.org/press-release/continued-drought-will-cause-catastrophic-humanitarian-need-horn-africa-coming-months">back decades</a> to find anything comparable.



There is ample reason to fear that in the coming decades, climate impacts to agriculture will present an existential threat to hundreds of millions of people across large areas of Africa and Asia who depend on small-scale or “smallholder” farming and livestock keeping to support their families. These climate stresses also imperil the two billion people who depend on these smallholder farmers for food. &nbsp;



Thankfully, there is evidence that the world is stirring to action. Last November’s global climate summit, known as COP26, in Glasgow consolidated <a href="https://www.cgiar.org/news-events/news/cop26-climate-threats-to-smallholder-farmers-drive-new-investments-in-cgiar-research/">almost a billion dollars</a> in new support for developing climate-smart farming innovations through the CGIAR global agricultural research partnership.



Equally important, the summit featured the launch of a major new coalition called the <a href="https://aimforclimate.org/">Agriculture Innovation Mission for Climate</a>, or AIM for Climate. It was started by the United States and the United Arab Emirates and now includes 40 government partners and 100 non-government partners. Together, they are marshalling billions of dollars in increased investment in climate-smart agriculture and food systems innovation to develop breakthrough tools and technologies targeting the needs of farmers, ranchers and producers globally, to include smallholders, and building momentum towards COP27 in Egypt. The good news is that we already know the kinds of innovations that can be instrumental in helping farmers adapt. They include:



<ul class="wp-block-list"><li>A new generation of early warning systems that capitalize on advances in satellite imagery, climate modeling and data science to alert farmers about threats to their crops and help them avert disaster. For example, Ethiopia’s <a href="https://www.cimmyt.org/news/scientists-develop-an-early-warning-system-that-delivers-wheat-rust-predictions-directly-to-farmers-phones/">wheat rust early warning system</a> tracks climate conditions that can produce rapid outbreaks of this devastating crop disease. It delivers regular advisories to farmers via text message that have been instrumental in avoiding hundreds of millions of dollars in losses. &nbsp;</li><li>The CGIAR crop breeders already have developed new varieties of stress-tolerant <a href="https://www.irri.org/ar2018-director-generals-message">rice,</a> <a href="https://www.cimmyt.org/news/cimmyt-drought-tolerant-maize-a-key-innovation-for-millions-of-farmers-says-fao/">maize</a> and <a href="https://ciat.cgiar.org/magic-beans-beat-malawis-worst-drought-in-30-years/">beans</a> developed specifically for farmers in Africa and Asia. The challenge is to do the same for a wide range of other crops—and to adopt technologies that allow breeders to work at the rapid pace of climate change.</li><li>Innovations that support livestock health and sustainable productivity are also critical for agriculture adaptation in low-income countries. Many people in wealthy countries focus on livestock contributions to climate change, and they are real. But in sub-Saharan Africa, a region that <a href="https://data.worldbank.org/indicator/EN.ATM.GHGT.KT.CE?end=2018&amp;locations=ZG-1W&amp;start=1970&amp;view=chart">accounts for only about four percent</a> of global carbon emissions, livestock are a family’s most valuable financial asset and livestock losses are among the worst outcomes of the current drought in East Africa. Today, there is promising work underway to develop <a href="https://livestocklab.ifas.ufl.edu/projects/feed-project/#d.en.535949">sustainable strategies</a> to provide farmers with climate-smart feeds and fodder. Also, in Kenya, the government is supporting an innovative effort to provide <a href="https://www.ilri.org/news/livestock-insurance-schemes-pastoralists-there-future-regional-approach-horn-africa">livestock insurance for pastoralist herders</a> that uses data from satellites and other sources to quickly issue payouts when grazing conditions deteriorate.</li></ul>



These are just a few of the many promising innovations that can be deployed to protect agriculture-dependent families in vulnerable regions. I remain hopeful that the world will ultimately mount a vigorous response, even if it can be difficult to summon hope at a time that seems to feature such a convergence of crises—from climate disasters to COVID-19 to conflict.



My faith in smallholder agriculture is rooted in my upbringing on a family farm in Zimbabwe. My parents experienced a lot of adversity, yet the income they earned supported me and my 10 brothers and sisters. Yes, African farmers today face a new set of challenges caused by climate change. But every day I learn about an exciting new tool or technology that could help them adapt. The key is to summon the investments and partnerships that will ensure farmers have the innovations they need to overcome a wide range of climate threats, so they can do for their children what my parents did for me and my siblings.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="618" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Enock-Chikava-Interim-Director-Agricultural-Development-Global-Growth-Opportunity-820x618.jpg" alt="" class="wp-image-415597" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Enock-Chikava-Interim-Director-Agricultural-Development-Global-Growth-Opportunity-820x618.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Enock-Chikava-Interim-Director-Agricultural-Development-Global-Growth-Opportunity-300x226.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Enock-Chikava-Interim-Director-Agricultural-Development-Global-Growth-Opportunity-119x90.jpg 119w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Enock-Chikava-Interim-Director-Agricultural-Development-Global-Growth-Opportunity-768x579.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Enock-Chikava-Interim-Director-Agricultural-Development-Global-Growth-Opportunity-1536x1157.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Enock-Chikava-Interim-Director-Agricultural-Development-Global-Growth-Opportunity-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Enock Chikava is Interim Director, Agricultural Development, Global Growth &amp; Opportunity, at the Bill &amp; Melinda Gates Foundation.</figcaption></figure>

Enock Chikava – Interim Director, Agricultural Development, Global Growth & Opportunity

Investing in Agriculture Innovation to Overcome Africa’s Climate Crisis

Spaza shops are the heart and soul of many communities, and they have the potential to be so much more, thanks to technology. Mobile technology solutions can help these traders not only move more toward a more advanced trading marketplace, but also help them to become increasingly self-sustainable, spreading this into the communities at large. Sustainability, humanitarian growth and giving back to communities are becoming increasingly important topics of conversation. We need to look at ways of leveraging the technology we already have to help these community hearts and centres to become the pivot point for economic growth and development in South Africa.



<h2 class="wp-block-heading" id="h-a-platform-for-growth">A platform for growth</h2>



One of the focuses for current technology solutions is on delivering improved ordering and stock management systems to help spazas have better and more product availability. While this is important in helping them to serve their communities with goods, there is far more power in the technology.



These platforms have the potential to expand from a business to business, to a business to community offering, that offers untold opportunities. They can be used as hubs of education, job creation and self-empowerment. The technology is there, but what we need is a change in mindset, from simply enabling the marketplace to showing the communities the direct positive impact that technology can have on their lives. We need to start engaging on the level of the ‘community place’ instead of just the marketplace.



<h2 class="wp-block-heading">It&#8217;s not about ticking boxes</h2>



Enterprise and supplier development is an essential component of doing business in South Africa, as is Broad-Based Black Economic Empowerment (B-BBEE). The problem is that they have become tick-box exercises, simply a compliance process that holds up business if it is not complete. We need to take a step back and embrace the spirit of these initiatives, change the narrative around them so that we can bring the community back into focus and have an actual positive impact on communities that are lesser served.



There are unique ways that this funding can help empower and nurture merchants, giving them a platform where they can go and study mobile-friendly courseware on entrepreneurship, finance, merchandising, sales, and other tools to help them run a better business. This can be delivered through existing technology platforms, enabling spaza owners to better support their communities, with a positive spin-off effect to the community itself at large.



<h2 class="wp-block-heading">Altruism to the fore in 2022</h2>



Sustainable growth and development need a mind shift. We need to become more altruistic in the way we approach the channel – it is not about pushing product, but about creating community support, which will, in turn, drive sales if it is done in the right way. We need to work toward creating channels to allow funding from mandatory initiatives to start targeting our vulnerable communities. This is the only way to start making a real, meaningful and sustainable difference.



If we can channel the funds to the right communities for the right reason, we can make a significant difference. We need to bring the real spirit of Ubuntu back to Africa – it is not just a catchy buzzword like B-BBEE has become, but a movement that means so much more. Umuntu ngumuntu ngabantu means that people are people because of other people, and the same spirit applies to the channel. From manufacturer, through to distribution, to retailers like spaza owners, the channel only exists because of the other parts. Spazas are at the heart of South Africa’s economy and they have massive power to create sustainable economic growth and development.

Andrew Dawson

Empowering spazas to be the pivot point for economic growth and development

The world is constantly changing, and business models need to adapt to these shifts. As we move further into the fourth industrial revolution (4IR), the old ways of working are becoming increasingly obsolete. The traditional concept of an eight-hour job where you clock in and clock out is no longer necessarily relevant, and the Covid-19 pandemic has both highlighted and accelerated this. With unemployment in South Africa on the rise, and businesses struggling to make ends meet with large permanent workforces, the time has come for a change. Temporary Employment Services (TES) are the ideal solution as the ‘gig economy’ becomes an increasingly attractive prospect in the country.



<h2 class="wp-block-heading" id="h-the-trouble-with-permanence">The trouble with permanence</h2>



One of the major challenges businesses have faced over the last two years is maintaining large complements of permanent staff, in the wake of pandemic lockdowns that left many unable to operate for months at a time. Supply and demand, and business operations themselves, have fluctuated dramatically, and the inflexible nature of permanent staffing has made adapting to these fluctuations a difficult prospect. Businesses were forced to retrench or lay off staff, which then left everyone in a precarious position. It also made ramping up operations difficult when ‘business as usual’ was allowed to resume.



From an employee perspective, permanent jobs have also become less appealing, once again highlighted by Covid. They are inflexible, requiring employees to clock in and out at specific times and be present at work for the duration. With the pandemic and lockdowns and the ongoing instability, this lack of flexibility is a hindrance when things like healthcare and childcare need to be considered. For many people, the ability to have more flexible work with more flexible hours would be hugely beneficial, and would also enable them to potentially work at more than one job, which has become crucial in these times.



<h2 class="wp-block-heading">The growth of the gig economy</h2>



The ‘gig economy’ is described as ‘<a href="https://www.investec.com/en_za/focus/economy/rocking-the-gig-economy.html" target="_blank" rel="noreferrer noopener">a labour market made up of short-term jobs, contracted or freelance work, as opposed to permanent, in-house jobs’</a>. It is by no means a new phenomenon, but the way the world is moving is bringing this concept to the fore, and the pandemic definitely highlighted its benefits.



For businesses, not having large permanent workforces removes a significant amount of overhead, which could save them during these turbulent times. It also allows businesses to scale their workforce up and down, based on demand, so that they are able to meet fluctuations head on. For employees, gigs have become increasingly popular as they can ensure a steady stream of income, even when permanent positions are not available.&nbsp;



<h2 class="wp-block-heading">How can a TES provider help?</h2>



One of the biggest challenges businesses face when it comes to the gig economy is accessing a pool of skills to support short-term employment solutions. Employees themselves may also have challenges finding flexible positions. TES providers are perfectly positioned to assist on both sides, as their entire service model is geared toward this.



For businesses, TES providers have large databases of employees looking for temporary employment, who have already been vetted and have a broad skills base. This means that businesses are able to access these skills on demand, creating an agile workforce that is ideal in these turbulent times. For employees, getting into a TES database gives them access to a wide range of opportunities, helping them to find work that suits their needs and helps them ensure an income.



The Covid-19 pandemic has highlighted the need for greater flexibility when it comes to employment, and the gig economy is growing, powered by technology and 4IR. TES providers are the perfect partner to support businesses and job seekers as we transition away from a world dominated by permanent full-time employment.

Jeandie 2

South African businesses can leverage the growing gig economy for sustainability

<div class="wp-block-media-text is-stacked-on-mobile is-vertically-aligned-center" style="grid-template-columns:30% auto"><figure class="wp-block-media-text__media"><img loading="lazy" decoding="async" width="820" height="531" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/Sanda-Ojiambo-Headshot-AT-1-MB-1-820x531.jpg" alt="" class="wp-image-415461 size-full" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/Sanda-Ojiambo-Headshot-AT-1-MB-1-820x531.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/Sanda-Ojiambo-Headshot-AT-1-MB-1-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/Sanda-Ojiambo-Headshot-AT-1-MB-1-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/Sanda-Ojiambo-Headshot-AT-1-MB-1-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/Sanda-Ojiambo-Headshot-AT-1-MB-1-1536x994.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/Sanda-Ojiambo-Headshot-AT-1-MB-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure><div class="wp-block-media-text__content">
Responsible business practices can help companies big and small attract young talent and also new sources of finance to grow and thrive, writes Sanda Ojiambo
</div></div>



My experience of working in business in Kenya and now with the UN Global Compact, the world’s largest corporate sustainability initiative, is that sustainability works.&nbsp; It helps train the focus on key material issues for longer&nbsp;term success by providing an extended vision of the trajectory of a business. Sustainability is helping to fire up the best new business ideas on the continent. It is fostering innovation and is addressing some of our most pressing needs, such as the fight against climate change.



As the world bounces back from the ravages of the pandemic, Africa is uniquely positioned for far stronger growth. With 1.3 billion people and a combined gross domestic product of $3.5 trillion, Africa is the world’s biggest growth market.



Young people hold the key to unlocking Africa’s economic potential. With the youngest population in the world – almost 60 percent are aged under 25<a href="https://outlook.office.com/mail/inbox/id/AAQkAGFiYzVhNmEzLTE3ZTMtNDA1Mi05ZWRmLTYwY2JmMGU1NjMwNgAQAE9dE4qU6bxNoWj9eVMPEVA%3D#x_m_5939689320779943812__ftn1">[1]</a>&nbsp;– Africa is well placed to grow. And the best way to take advantage of the demographic dividend of a youthful population is to build a healthy, robust and resilient economy. This should start with ensuring access to vaccines and continue with a new focus on the UN’s Sustainable Development Goals (SDGs), which open new opportunities for business.



<h2 class="wp-block-heading" id="h-realizing-the-vision-of-a-prosperous-africa">Realizing the vision of a prosperous Africa</h2>



Driving greater sustainability is Africa’s most significant growth opportunity. Meeting the SDG goals by 2030 means, among other things, connecting 570 million Africans who lack access to electricity at present<a href="https://outlook.office.com/mail/inbox/id/AAQkAGFiYzVhNmEzLTE3ZTMtNDA1Mi05ZWRmLTYwY2JmMGU1NjMwNgAQAE9dE4qU6bxNoWj9eVMPEVA%3D#x_m_5939689320779943812__ftn2">[2]</a>. &nbsp;It means making sure that more farm produce reaches markets in good condition.&nbsp; According to the Business and Sustainable Development Commission<a href="https://outlook.office.com/mail/inbox/id/AAQkAGFiYzVhNmEzLTE3ZTMtNDA1Mi05ZWRmLTYwY2JmMGU1NjMwNgAQAE9dE4qU6bxNoWj9eVMPEVA%3D#x_m_5939689320779943812__ftn3">[3]</a>, reducing food losses in the value chain would add $57 billion to farmers’ incomes. Efforts in this direction are already under way. Rwanda has reduced post-harvest losses by 60 percent with the introduction of small silos and crates for transport. In Nigeria, ColdHubs<a href="https://outlook.office.com/mail/inbox/id/AAQkAGFiYzVhNmEzLTE3ZTMtNDA1Mi05ZWRmLTYwY2JmMGU1NjMwNgAQAE9dE4qU6bxNoWj9eVMPEVA%3D#x_m_5939689320779943812__ftn4">[4]</a>&nbsp;provides solar-powered cold storage facilities that can extend the shelf-life of perishable foods from two to 21 days.



When you consider the opportunities for delivering sustainable cities, and for managing Africa’s vast natural resources sustainably, the Commission estimates that achieving the SDGs would unlock an economic prize of at least $1.1 trillion and create 85 million new jobs on the continent by 2030. One sector alone – affordable housing – could create more than 13 million jobs.



Adopting sustainable and responsible business models in line with the SDGs not only drives competitive advantage but also contributes to the creation of equitable and resilient societies, social good and climate resilience.



Employers who embrace sustainable principles and values are not only safeguarding the future of our continent, but they are also more likely to attract and retain a new generation of talented and socially conscious Africans who want to make a positive impact through their work.



If we can provide the right opportunities for our young people, we will be able to tap into their energy and ideas and create more employment and wealth across the continent. You don’t have to look far to find great examples of young entrepreneurs already showing the way.



My Green Home<a href="https://outlook.office.com/mail/inbox/id/AAQkAGFiYzVhNmEzLTE3ZTMtNDA1Mi05ZWRmLTYwY2JmMGU1NjMwNgAQAE9dE4qU6bxNoWj9eVMPEVA%3D#x_m_5939689320779943812__ftn5">[5]</a>, for example, an award-winning Rwandese company that makes building materials out of melted waste plastic and sand, evolved from a school project encouraging recycling. Greencare<a href="https://outlook.office.com/mail/inbox/id/AAQkAGFiYzVhNmEzLTE3ZTMtNDA1Mi05ZWRmLTYwY2JmMGU1NjMwNgAQAE9dE4qU6bxNoWj9eVMPEVA%3D#x_m_5939689320779943812__ftn6">[6]</a>, meanwhile, makes compost from biodegradable waste and was founded by a Rwandese university student. In Nigeria, Chanja Datti collects, sorts and packs recyclable material to be made into new packaging<a href="https://outlook.office.com/mail/inbox/id/AAQkAGFiYzVhNmEzLTE3ZTMtNDA1Mi05ZWRmLTYwY2JmMGU1NjMwNgAQAE9dE4qU6bxNoWj9eVMPEVA%3D#x_m_5939689320779943812__ftn7">[7]</a>. An SDG focus has allowed the Abuja-based recycling business to generate new income for youth and women micro-entrepreneurs, ensure healthy lives and a clean environment and make cities inclusive, safe, resilient and sustainable.



Large companies are also creating value by adopting sound sustainability practices. South African mining company AngloGold Ashanti SA<a href="https://outlook.office.com/mail/inbox/id/AAQkAGFiYzVhNmEzLTE3ZTMtNDA1Mi05ZWRmLTYwY2JmMGU1NjMwNgAQAE9dE4qU6bxNoWj9eVMPEVA%3D#x_m_5939689320779943812__ftn8">[8]</a>&nbsp;and Kenyan telecommunications provider Safaricom<a href="https://outlook.office.com/mail/inbox/id/AAQkAGFiYzVhNmEzLTE3ZTMtNDA1Mi05ZWRmLTYwY2JmMGU1NjMwNgAQAE9dE4qU6bxNoWj9eVMPEVA%3D#x_m_5939689320779943812__ftn9">[9]</a>, for example, both now have responsible procurement policies. These set out&nbsp;standards suppliers must meet as a condition of doing business when it comes to respecting human and labor rights, protecting the environment, and helping the communities in which they operate. In Tunisia, Cogitel, a company that provides flexible packaging solutions for the food and beverage industry, has demonstrated improved financial returns and increased efficiency with efforts such as reduced energy consumption and lower waste generation<a href="https://outlook.office.com/mail/inbox/id/AAQkAGFiYzVhNmEzLTE3ZTMtNDA1Mi05ZWRmLTYwY2JmMGU1NjMwNgAQAE9dE4qU6bxNoWj9eVMPEVA%3D#x_m_5939689320779943812__ftn10">[10]</a>.



<h2 class="wp-block-heading">Support for sustainability</h2>



For small and medium-sized companies, who struggle with day-to-day concerns, building more sustainable practices may seem daunting. But embracing these ideals can reduce their risk and boost their bottom line. As illustrated by My Green Home and Greencare, they can even be the basis of the business itself.



The UN Global Compact is here to work side by side with businesses big and small. Our newly launched Global Compact Africa Strategy aims to engage and build a cohort of businesses in Africa that are strong pillars of sustainability and responsible business practices.&nbsp;We have a strong and growing presence on the African continent with an initial&nbsp;ten Local Networks and a presence in 45 countries.&nbsp; The Local Networks drive a broad range of activities related to global, local and now African strategies to support growth and development.



These Local Networks<a href="https://outlook.office.com/mail/inbox/id/AAQkAGFiYzVhNmEzLTE3ZTMtNDA1Mi05ZWRmLTYwY2JmMGU1NjMwNgAQAE9dE4qU6bxNoWj9eVMPEVA%3D#x_m_5939689320779943812__ftn11">[11]</a>&nbsp;liaise with government and non-government organizations and have already had a significant impact, particularly in shaping national policies and best business practices.



In Kenya, for example, the Local Network coordinated the private sector&#8217;s participation and contribution towards the development of the National Action Plan on Business and Human Rights, the first ever plan to be developed in Africa. In South Africa, the Local Network aligns its priorities with those of the National Development Plan, supporting companies to integrate and deliver on the SDGs. In Tanzania, the Local Network was instrumental in ensuring the private sector was consulted when the government was putting together its latest five-year development plan, identifying key areas requiring intervention to help promote sustainability. Nigeria’s Local Network has brought business leaders, government officials and the UN together via its CEO Roundtable series to agree sector-specific SDG targets, standards and practical guidelines. And in Tunisia, the Local Network shared its experience and knowledge with members of parliament, helping to broaden the country’s Corporate Social Responsibility Law and National Strategy.



But the UN Global Compact’s work in Africa doesn’t just involve using Local Networks to influence government and policy. It works with companies to develop and integrate sustainability into their corporate strategies, which increasingly is the key to unlocking new sources of capital and being part of the global supply and value chain.



We welcome all companies who want to become champions of sustainable growth and invite them to join a Local Network. In my experience, companies with long-term sustainable strategies are rewarded by attracting the best talent and earning the greatest market share. As we look forward to COP27 in Egypt this year, we should also look forward to accelerating just and equitable climate transitions, including the creation of green business opportunities for the continent’s youth and for all members of society.&nbsp;Let us accelerate our actions towards.

Sanda Ojiambo Headshot AT 1 MB

Embracing sustainable business is key to accelerating Africa’s economic growth

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="473" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/AIM-for-Climate-Ministerial-820x473.jpg" alt="" class="wp-image-415452" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/AIM-for-Climate-Ministerial-820x473.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/AIM-for-Climate-Ministerial-300x173.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/AIM-for-Climate-Ministerial-156x90.jpg 156w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/AIM-for-Climate-Ministerial-768x443.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/AIM-for-Climate-Ministerial-1536x887.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/AIM-for-Climate-Ministerial-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Dubai &#8211; UAE, 21 February, 2022 – The Agriculture Innovation Mission for Climate (<a href="http://www.aimforclimate.org">AIM for Climate</a>), a global initiative led by the United Arab Emirates (UAE) and the United States (U.S.) with the support of over 140 government and non-government partners, announced a new target to raise investment commitments from $4 billion, pledged upon its launch in 2021, to $8 billion by the 27th United Nations Climate Change Conference (COP27) in Sharm El-Sheikh, Egypt. The ambitious investment goal was announced at AIM for Climate’s first Ministerial Meeting, held at Expo 2020 Dubai, where government partners discussed the initiative’s priorities and plans for COP27. At the meeting, AIM for Climate welcomed Chile, Costa Rica, Egypt, the European Commission, Guyana, Mozambique, and Turkey to its coalition, announced AIM for Climate Ideations, a new cooperation opportunity for partners, and 2022 focal areas for innovation sprints to be launched at COP27.&nbsp;



Her Excellency Mariam bint Mohammed Almheiri, UAE Minister of Climate Change and Environment, said: “Agriculture and food systems offer immense opportunities for global climate action. By catalyzing innovation in climate-smart agriculture, we can reduce harmful emissions and sequester carbon in the sector, sustainably increase productivity to feed a growing global population, and support farmers on the frontlines in building resilience and adapting to the impacts of climate change.&nbsp; While AIM for Climate has had a notable start at COP26, we are raising the bar to mobilize even greater investments and coordinated support to drive global food systems transformation. By working together and drawing on the diverse knowledge and experience of countries and actors across the value chain, we can enable a quantum leap in agricultural innovation and address our shared climate challenges.”



U.S. Agriculture Secretary Tom Vilsack added: “AIM for Climate government partners today demonstrated their strong commitment to work together to close the investment gap in climate-smart agriculture and food systems innovation, needed to address the twin challenges of global hunger and the climate crisis.&nbsp; We are proud of the wide range of AIM for Climate partners working to deliver impactful solutions for all people. AIM for Climate seeks to expand its network even farther with new participants from across the globe. The United States looks forward to welcoming all AIM for Climate partners to Washington, D.C., in the spring of 2023 for the AIM for Climate Summit to review our progress and chart out the important work ahead.”



At the ministerial meeting, AIM for Climate co-leads, the UAE and the U.S., launched <a href="https://aimforclimate.org/aim-for-climate-ideations/">AIM for Climate Ideations</a> to offer partners opportunities to host events and activities throughout the year in support of advancing the initiative’s objectives. These ideations will revolve around insight sharing, innovation collaboration, institutional capacity building, coordination or demonstration and deployment.&nbsp;



AIM for Climate government partners provide the crucial foundation of the initiative through a wave of new public investment in climate-smart agriculture and food systems innovation. But other sectors, including business, philanthropy and other non-government partners, are invited to build upon that foundation with innovation sprints – investments in specific, impactful, expedited efforts – or by providing critical knowledge for identifying investment gaps, challenges and opportunities for collaboration.



Representing $200 million of increased investments from non-government partners, AIM for Climate features nine <a href="https://www.aimforclimate.org/innovation-sprints/">innovation sprints</a>, with the newest addition of the IBM Sustainability Accelerator. AIM for Climate encourages anyone interested in learning more to get in touch with the innovation sprint points of contact noted on the website.



AIM for Climate is currently accepting innovation sprint proposals for 2022 and has identified four focal areas for innovation sprints to be launched at COP27: smallholder farmers in low- and middle-income countries, methane reduction, emerging technologies and agroecological research. Learn more about the 2022 AIM for Climate Innovation Sprint Focal Areas <a href="https://www.aimforclimate.org/innovation-sprints/">here</a>.



Launched at the 26th United Nations Climate Change Conference (COP26), AIM for Climate galvanizes support and investments for climate-smart agriculture and food systems innovation to enable solutions at the intersection of global hunger and the climate crisis.

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Embracing sustainable business is key to accelerating Africa’s economic growth

AIM for Climate Seeks to Double Investment in Climate-Smart Agriculture and Food Systems Innovation by COP27

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