Latest news with #AfricanContinental
IOL News
6 days ago
- Business
- IOL News
South Africa's Tshabalala is running in line up for Africa's next 'super banker'
Bajabulile Tshabalala Image: Social Media Five candidates are in the running to succeed Nigeria's Akinwumi Adesina as president of the African Development Bank (AfDB). They are: Bajabulile Swazi Tshabalala (South Africa) The AfDB has only ever been headed by men but Tshabalala aims to change that. The 58-year-old South African was until the end of last year a vice president at the bank and could emerge as a continuity candidate. "Africa is at an inflection point. It's time for bold leadership that turns vision into action. I'm ready to lead the AfDB towards a more integrated, resilient, and prosperous continent," she said last month. Tshabalala wants to accelerate infrastructure development, boost private sector growth and make the AfDB more efficient. She argues that the bank must look beyond public funding to "smart finance". South Africa backs her candidacy but southern African unity could be split, as it had previously rallied behind Zambia's Maimbo. Amadou Hott (Senegal) Hott was Senegal's economy minister from 2019 to 2022 under the presidency of Macky Sall and until September last year was Adesina's special envoy for green infrastructure in Africa. But he is not necessarily a natural successor, as the position usually goes to a candidate from another region and the candidacy of Mauritania's Sidi Ould Tah will split the west African vote. In his pitch for the leadership, Hott, 52, has called for "a more inclusive, integrated and resilient Africa", positioning himself in particular as a supporter of AfCFTA, the African Continental Free Trade Area. He is also in favour of deepening relations with the private sector. Hott also wants to quicken the pace of investment in sustainable energy infrastructure using Africa's vast renewable resources. Samuel Munzele Maimbo (Zambia) Maimbo, 52, was most recently vice president for budget, performance review and strategic planning at the World Bank. He has also been chief of staff to World Bank presidents David Malpass and Ajay Banga. He will also have to contend with a split regional vote during the election, as South Africa -- one of the biggest AfDB's contributors -- is also fielding a candidate. But his experience at the World Bank could help him secure US support, which carries weight in the vote. Maimbo, who highlights 30 years of experience in development and finance, wants the AfDB to play "a leadership role" in supporting the many countries strangled by debt. Having grown up on a farm on the outskirts of Lusaka, he emphasises the importance of agricultural mechanisation and the development of the agro-industry. "Africa needs significantly higher rates of growth to successfully navigate today's development challenges and capture tomorrow's opportunities," he said in his mission statement. Sidi Ould Tah (Mauritania) Tah, who has headed the Arab Bank for Economic Development (BADEA) for 10 years, was the last candidate to declare. Several north African Arab states are members of the AfDB and if elected, his experience at BADEA could be a bridge with sub-Saharan Africa. He said in his mission statement that he had transformed BADEA into "one of the best capitalised and most highly-rated DFIs" (development finance institutions). He has vowed to strengthen regional financial institutions, assert Africa's financial independence on global markets, use population growth as a development lever and build climate change-resistent infrastructure. Tah, 60, is a former economy minister in Mauritania. Abbas Mahamat Tolli (Chad) Central Africa has never had a president of the AfDB but Tolli, a 53-year-old Chadian, could be its first. The former governor of the Bank of Central African States has served as a finance and infrastructure minister and is also proposing a transformative vision. He wants to achieve food sovereignty through sustainable agricultural investments, speed up financing for essential infrastructure, improve governance, promote renewable energies, and develop domestic financial markets.
The South African
26-05-2025
- Business
- The South African
B20 South Africa champions growth at Africa CEO Forum
The Africa CEO Forum this week became a powerhouse of bold ideas as Business 20 South Africa (B20 SA), the official G20 business engagement group, explored how the African Continental Free Trade Area (AfCFTA) can serve as a catalyst for industrialisation, investment and economic integration across the continent. QUIZ | Test your B20 knowledge with this 2-minute survey – AND WIN R2 000! Dr Anthony Costa, Head of the B20 South Africa Secretariat, together with fellow experts, delivered a powerful call to action during the 'Invest in South Africa' panel, urging a paradigm shift in how the world engages with Africa's development. In his remarks, Costa emphasised the importance of clear, actionable policy frameworks that enable sustained collaboration between governments and the private sector. He noted that B20 South Africa is currently driving a year-long process that convenes more than 1 500 global private sector leaders across eight Task Forces. The aim is to develop practical recommendations that align business efforts with government priorities to unlock inclusive growth, in a cooperating world. The panel also explored mechanisms to improve investor confidence in Africa's industrialisation agenda. Three core areas for action were outlined: establishing clear and trackable public-private partnership models, enhancing governance and transparency systems and addressing critical skills shortages through targeted development programmes. Deputy Minister of Trade, Industry and Competition Zuko Godlimpi added: 'President Cyril Ramaphosa has been adamant about cutting red tape to streamline company registrations and merger approvals in South Africa. 'We have strongly advocated to the Competition Commission for faster review and approval timelines. 'This is critical to facilitating smoother partnerships between South African and foreign businesses and ensuring investments in the country can flourish.' Costa stressed that improving policy certainty and governance standards is essential to creating an enabling environment for investment. On the question of Africa's role in mobilising global capital, Costa urged stakeholders to reframe the continent's investment narrative. 'Africa must move from being viewed through a risk lens to being recognised for its strategic opportunities,' he said. He also pointed to South Africa's G20 Presidency in 2025 as a strategic moment for the continent. Through B20 South Africa, the private sector has a direct channel to shape global economic priorities while ensuring African perspectives are embedded in that process. 'B20 South Africa is building a strong, credible platform to advance the continent's growth agenda,' he concluded. 'We are focused on delivering outcomes that are not only ambitious but practical and implementable by both business and government.' Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Zawya
25-04-2025
- Business
- Zawya
How global volatility and international family businesses are shaping private and investment banking in Africa?
Africa presents a compelling – albeit complex – investment landscape. While challenges such as political instability, currency volatility and limited liquidity persist, they are counterbalanced by significant opportunities. These growth options are driven by powerful demographic shifts, digital transformation and burgeoning intra-continental trade, catalysed by initiatives like the African Continental Free Trade Area (AfCFTA). As the Boston Consulting Group (BCG) highlights, growth in private capital deals on the continent has significantly outpaced global averages, yet assets under management remain underpenetrated compared to global benchmarks, signalling substantial room for growth. Africa's dynamic investment landscape requires strategic insight and sophisticated support. Despite varied historical private equity returns, targeted strategies have yielded substantial rewards, with nearly a quarter of Africa-focused funds achieving net internal rates of return exceeding 15% over the past decade. This illustrates the significant opportunities for private and investment banking on the continent, driven by three key trends: renewed global appetite for African investment, evolving needs of multi-generational family businesses, and the increasingly global nature of these families and their enterprises. A growing appetite for African investment amid global volatility The investment banking sector has seen a resurgence of interest in Africa from global investors. As Amol Prabhu, Country chief executive officer: South Africa & Market Head for Barclays, observes, this shift is partly driven by a re-evaluation of risk in markets previously considered safe. Some investors, he suggests, now perceive traditionally 'safer' regions as presenting new challenges due to US trade protectionism and its impact on markets. These factors drive investors to look elsewhere for diversification because 'taking on a bit more risk makes sense if the potential for higher returns is strong,' Prabhu adds. This appetite manifests in two ways: Navigating nuance and risk: Investors know that opportunities and risks vary significantly across Africa's 54 nations. Those willing to embrace calculated risks for potentially higher returns require partners who understand the specific market nuances. As Prabhu emphasises, focusing on specific regions, like South Africa, Kenya, Nigeria, and Ghana, allows for deeper market insights and, thus, greater ability to mitigate risk. Identifying emerging opportunities: Beyond risk mitigation, investors want to know where the opportunities for growth lie. Prabhu says, 'Investors want greater insights into what is happening on the ground. They're asking which sectors hold the greatest opportunities, and they want a partner who gets the local landscape.' The continent's young demographics underpin substantial consumer market potential in areas like financial and digital services. Additionally, Africa holds vast reserves crucial for global decarbonisation, which will future-proof its commodity markets. Prabhu adds, 'You must remain informed and agile enough to capitalise on these opportunities – a process that is much easier when you have the right partner to guide your exposure to different markets.' Supporting the evolution of multi-generational family businesses Multi-generational family businesses remain a cornerstone of wealth creation across Africa, and private banking is adapting to better serve their needs. Prabhu highlights the common dynamic where 'founders or original wealth creators tend to be very entrepreneurial in their mindset, having built a successful enterprise from an idea decades ago. Their families are now highly educated, completing globally competitive degrees anywhere from Lagos and Accra to Johannesburg or London, and they are now taking over the family business.' The key trend now involves the transition within these families. As Prabhu explains, subsequent generations have expanded skill sets and are professionalising the businesses, moving them from family-run operations to formally managed enterprises. This wealth transfer requires tailored private banking support that understands both the family legacy and the business's future direction. The globalisation of families and the need for integrated banking Linked to the evolution of family businesses is their increasingly global footprint. Parents may be based in Nairobi, with one child running operations locally and another child working in Dubai or studying in the UK. This geographical dispersion creates significant complexity, encompassing collective and individual wealth, as well as globalised business interests. The family business now has to navigate intricate tax, regulatory, and compliance requirements across multiple jurisdictions. This challenge requires a shift towards integrated, multi-service banking where clients need a spectrum of services beyond private wealth management, potentially including corporate and investment banking, retail accounts, and credit facilities across different jurisdictions. For customers, the value lies in simplifying this complexity. Prabhu highlights the importance of being equipped to serve clients' varied needs across products and locations. 'There should be a single primary advisor who is a gateway to the bank's broader global offering. In some cases, this can extend to relationship-driven support, which goes beyond traditional banking, a reality that is increasingly essential for managing the intricate affairs of global families and their businesses.' A pivotal moment to spotlight Africa's potential While Africa presents exciting investment opportunities, it takes expertise and diligence to unlock its potential. The right banking partner will play a key role in guiding investors, supporting family businesses, and providing integrated solutions, making them essential partners in navigating Africa's financial landscape. The G20 and B20 platforms, especially with South Africa's presidency, provide a unique opportunity to showcase Africa and encourage dialogue around investment opportunities. Collaboration between government and the private sector is essential to present Africa as an attractive investment destination. For investors and families charting their course, partnering with financial institutions that offer deep regional insight within a global framework will be key to unlocking the continent's considerable promise. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
IOL News
23-04-2025
- Business
- IOL News
Leveraging data and AI to bridge Africa's $90 billion infrastructure gap
The African Development Bank estimates this shortfall shaves nearly 2% off GDP growth each year, choking economic potential and social progress. By Nomvula Mabuza Africa's infrastructure deficit, a $90 billion annual gap, casts a long shadow over the continent's future. The African Development Bank estimates this shortfall shaves nearly 2% off GDP growth each year, choking economic potential and social progress. From unreliable power grids to crumbling roads, these gaps inflate costs, isolate communities and stifle opportunity. Yet, within this challenge lies a chance to reimagine infrastructure through data and artificial intelligence (AI), transforming obstacles into pathways for growth. The infrastructure gap ripples across Africa's economy and society. Poor logistics, with transport costs 30-40% higher than in other regions, undermine the African Continental Free Trade Area's (AfCFTA) promise of a 52% boost in intra-African trade. These inefficiencies translate into pricier goods and fewer jobs, locking nations in a cycle of lost potential. Limited access to electricity and reliable roads further restricts digital economies and isolates rural areas, with logistics bottlenecks costing the continent $130 billion annually in economic inefficiencies. Closing this gap is not just a necessity but an economic opportunity, poised to unlock billions in growth and attract investment from across the globe. Systemic barriers sustain this crisis. African governments collect less tax revenue than other developing regions, leaving them with limited funds for major projects. Compounding this, fewer than 10% of proposed infrastructure projects reach financial close, as 80% falter at the feasibility stage due to inadequate planning. Private investment, which hit only $40 billion in 2021, remains a fraction of what's needed. At the heart of these issues lies a critical flaw: incomplete, outdated and fragmented data. Without real-time insights into road conditions, energy access, or logistical efficiency, planning becomes guesswork and investors shy away from high-risk ventures. Leveraging Data and AI to Bridge Africa's $90 Billion Infrastructure Gap A bold, AI-enabled strategy can turn disparate data into actionable insights, revolutionizing infrastructure planning. A continent-wide, open-source repository could aggregate real-time metrics from all 54 African nations—project costs, completion rates, demographic needs. Kenya's Open Data Portal shows how such platforms can break down silos and guide decisions. AI can pinpoint high-return projects, like solar grids in underserved rural areas, ensuring efficient, impactful investments. Satellite imagery and geographic information systems, as used by Digital Earth Africa, offer real-time oversight to prevent delays and mitigate environmental risks, supporting projects like Ethiopia's Grand Renaissance Dam. Mobile apps, inspired by Ushahidi, can empower citizens to report issues like potholes or outages, fostering accountability and highlighting urgent needs. Rwanda's partnership with Zipline demonstrates the transformative potential of data-driven solutions. Since 2016, Zipline has leveraged real-time data to deliver blood and vaccines by drone, slashing delivery times from hours to minutes and serving over 2,500 health facilities. This innovation not only bolsters healthcare but also shows how technology can address logistical gaps, drawing investment and offering a scalable model for infrastructure challenges across Africa. Technology alone cannot bridge the infrastructure gap—robust governance is the bedrock of success. Across Africa, distrust in data systems and a shortage of skilled professionals pose significant barriers. Citizens hesitate to share data without assurances of privacy and governments struggle to implement AI tools without local expertise. South Africa's Protection of Personal Information Act (POPIA), enacted in 2020, offers a model for addressing these concerns. By enforcing strict data privacy standards, POPIA has bolstered public confidence, enabling projects like digital health platforms that rely on secure data-sharing. Similarly, capacitybuilding initiatives are critical. Carnegie Mellon University Africa, based in Rwanda, trains hundreds of data scientists annually, equipping them to develop and manage AI-driven infrastructure solutions. For example, graduates have contributed to optimizing Rwanda's energy grid, ensuring data tools translate into real-world impact. Beyond privacy and skills, governance must foster transparency to attract investment. Clear regulatory frameworks, like those piloted in Kenya for public-private partnerships, reduce risks for investors, making projects like the Nairobi-Mombasa Expressway more bankable. Without these governance pillars—privacy, Leveraging Data and AI to Bridge Africa's $90 Billion Infrastructure Gap capacity and transparency—the promise of data and AI risks remaining out of reach. Significant hurdles remain. With internet penetration in rural Africa at just 25%, community-driven data collection faces limitations. Privacy concerns, even with laws like POPIA, could erode trust in data platforms. Yet, these challenges are not insurmountable. Targeted investments in digital infrastructure, such as expanding mobile networks and public education campaigns to clarify data privacy protections can pave the way for success. The path to closing Africa's infrastructure gap demands collective action, rooted in collaboration and innovation. African governments must lead by launching pilot data platforms in high-need regions, where real-time insights can guide energy and transport projects with precision. Multilateral institutions, such as the African Development Bank and United Nations, should channel resources into AI-driven project pipelines, demonstrating the viability of data-driven approaches through measurable outcomes. Technology companies, both global and local, must unite to develop scalable tools—from geospatial analytics to citizen-reporting apps—that empower planners and communities to address infrastructure challenges effectively. Investors hold a critical role in this transformation. By backing data-driven projects through dedicated infrastructure funds, they can mitigate risks, unlock substantial economic returns and drive sustainable growth across the continent. The opportunity is clear: coordinated action today can turn Africa's infrastructure vision into reality, fueling prosperity for generations. Africa's $90 billion infrastructure gap is a challenge that demands bold innovation. Data and AI, from centralized platforms to predictive analytics, hold the key to unlocking AfCFTA's potential for a 52% surge in intra-African trade and reversing the 2% annual GDP losses that hobble progress. Inaction carries a steep price—billions in economic potential slip away each year, leaving communities disconnected and opportunities unrealized. By embracing data-driven solutions, Africa can build a future where reliable roads link markets, electricity powers digital economies and infrastructure fuels job creation and prosperity. The tools exist and the stakes are clear: act now to transform the continent's infrastructure and secure a thriving, connected tomorrow. Nomvula Mabuza is a Risk Governance and Compliance Specialist with extensive experience in strategic risk and industrial operations. She is an MBA candidate at Henley Business School, South Africa. BUSINESS REPORT
Zawya
07-04-2025
- Business
- Zawya
African Development Bank and Bank of Africa Tanzania sign $7.5 million facility to boost trade finance
The African Development Bank ( and the Bank of Africa Tanzania (BOAT) have signed a $7.5 million trade finance transaction guarantee facility to boost trade finance activities of the Bank of Africa in Tanzania. Under this facility, the African Development Bank will provide a guarantee of up to 100% to confirming banks against non-payment risks arising from letters of credit and similar trade finance instruments issued by the Bank of Africa Tanzania. The facility will support small and medium-sized enterprises (SMEs) and local corporates engaged in the import sector. The facility aligns with efforts to bolster intra-Africa trade, contributing directly to the objectives of the African Continental Free Trade Area (AfCFTA) ( Speaking at the signing event on March 10, 2025, in Dar es Salaam, the Bank's Country Manager for Tanzania, Patricia Laverley, stressed the importance of the facility in addressing Tanzania's trade finance needs, saying that given the country's import requirements, it will aid priority sectors such as trade, agriculture, manufacturing, and energy. 'This facility will support trade by enabling BOAT to play a more strategic role in the regional and international market.' Representing BOAT's management, Deputy Managing Director Hamza Cherkaoui lauded the strong partnership with the African Development Bank, emphasizing its role in expanding trade finance capabilities across the continent. 'This partnership strengthens our ability to support businesses across various sectors by providing seamless trade finance solutions, expanding our confirmation network, and enabling access to top-tier confirming banks,' he said. The new Trade Guarantee facility aligns with Bank of Africa Tanzania's strategic priorities and the African Development Bank's broader objectives, including promoting regional integration, increasing food security, and industrializing Africa. It also supports Tanzania's Country Strategy paper 2021-2025, which focuses on enhancing the private sector business environment for job creation. It also aligns with the country's development vision (Vision 2025), which aims to build a strong and resilient economy capable of competing globally. The signing of the agreement marks a significant milestone in the African Development Bank Group's direct engagement with Tanzania's private sector, reinforcing its commitment to strengthening the country's financial sector and economic development. Distributed by APO Group on behalf of African Development Bank Group (AfDB). Contacts: Joyce Mulama Communication and External Relations Department media@ Bernard Muhati Principal Trade Finance Officer
