Latest news with #CrystalOrderson
Eyewitness News
a day ago
- Business
- Eyewitness News
Why innovative financing is critical to closing Africa's infrastructure gap now
Kopano Mohlala 5 June 2025 | 9:53 Acclaimed journalist Crystal Orderson, who specialises in economic and political affairs concerning the African continent, joins 702's Bongani Bingwa to discuss Africa's infrastructure challenges and opportunities. Listen Below: "The infrastructure deficit is massive." Crystal Orderson, Journalist The African Development Bank estimates that the continent needs between $130 billion and $170 billion annually to close this gap. However, Orderson notes that there are pockets of investment in various sectors, including minerals and metals, transport, logistics, water and sanitation, and digital infrastructure, but this is country-specific. 'This is, of course, driven by specific population growth, urbanisation, and energy needs, but those are in specific countries.' - Crystal Orderson, Journalist One promising yet underutilised source of funding is African pension funds. Financing fund managers indicate that these funds hold tremendous potential. In 2020, African pension funds managed approximately $500 billion in assets, with projections suggesting this could grow to R7.5 trillion by 2025. Yet, less than 3% of these assets are allocated to infrastructure. 'There needs to be a confidence vault that these pension funds should invest in infrastructure, because that's where the growth could lie for countries.' - Crystal Orderson, Journalist Much of this capital remains tied up in low-risk government bonds or foreign markets, primarily because of a lack of domestic investment confidence. Nonetheless, there are positive examples. In South Africa, the Government Employees Pension Fund has allocated funds for infrastructure, and in Kenya, the Retirement Benefits Authority has committed nearly 10% of its portfolio to infrastructure development. There are two key investors in major projects across the continent: The African Infrastructure Managers Fund invests in northern, eastern, western, and southern Africa, having garnered assets worth approximately $3.2 billion, with a focus on specific infrastructure projects across the continent. The African Development Bank, which has been investing in Africa's agricultural sector, announced that $ 500 million has been invested in small-scale farmers and agribusiness. Another success story is Ethiopia's thriving coffee sector, which reached $2 billion in exports in just 10 months. 'Over a third of women are actually part of the coffee industry and make up 75% of the labour sector.' - Crystal Orderson, Journalist With support, Ethiopia's government has been able to successfully invest in the country's small-scale farming activities. One of the most compelling examples of successful infrastructure financing is the 480-kilometre railway line connecting Nairobi to Mombasa in Kenya. The Mombasa-Nairobi Standard Gauge Railway was completed in 2017, and the project was financed through a combination of public-private partnerships and international funding sources. Orderson recalls how, in the past, a trip between these two major cities entailed a 12-hour journey along potholed roads and through traffic jams. Today, the railway not only transports over 30,000 passengers daily but also efficiently manages large volumes of cargo through Kenya's ports. 'It's quite interesting because you had funding coming together, and it has been a game-changer. Now you can take a ride in the morning and arrive in Mombasa at the beach during lunchtime.' - Crystal Orderson, Journalist She says Africa has the capital - but what it needs is confidence. "It takes political will - with the private sector and multilateral institutions to come together to make a difference." - Crystal Orderson, Journalist With the right partnerships, creativity, a suitable environment, and innovative thinking, pension funds can be effectively utilised to finance large-scale infrastructure projects. That includes attracting private capital through blended financing structures and public-private, which are crucial to bridging the gap. Catch up on episodes of the RMB Africa Focus that you may have missed here.
Eyewitness News
25-05-2025
- Politics
- Eyewitness News
Africa Day: Clarion calls ring for changing historical ills against the continent
JOHANNESBURG - There are growing calls for reparative justice for Africans in what has been described as a bid to right historical wrongs from centuries of slavery, colonialism, and exploitation This comes as the continent marks Africa Day on Sunday, commemorating the founding of the Organisation of African Unity in 1963, which was later succeeded by the African Union (AU). This year's theme, "Justice for Africans and people of African descent through reparations," shines a spotlight on a demand many believe is long overdue. ALSO READ: Africa Day: Calls for unity and solidarity across continent grow louder Commentator Crystal Orderson says while the transgressors of these heinous injustices may not be ready to confront the issue, she says the AU can no longer afford to avoid it. "The issue of reparation right now in the current administration is almost like a swear word, but I think the theme is a reminder that Africa would have been so much further if there was the issue of reparations that was put on the table. I do think that the West is really not ready to deal with the issue of reparations."
Eyewitness News
23-05-2025
- Business
- Eyewitness News
How Africa is becoming the world's next economic powerhouse
Kopano Mohlala 16 May 2025 | 13:55 RMB Africa Investments International Monetary Fund (IMF) Acclaimed journalist Crystal Orderson specialises in economic and political affairs on the African continent. She joins Stephen Grootes on The Money Show to provide insights into significant investment trends and growth opportunities in Africa. The International Monetary Fund (IMF) states in their latest report that Africa has experienced a hard-won recovery post-Covid, though recent global events, including external funding constraints, the debt crisis, a downturn in global demand, and massive aid cuts, will impact the growth rate in Africa. However, the continent's economic landscape is vibrant and dynamic. The World Bank projects a growth rate of 3.7%, and the African Development Bank is forecasting an even more optimistic 4.3% growth rate, says Orderson. "Despite all the challenges and geopolitical shifts, there is still a significant opportunity here in Africa." - Crystal Orderson, Journalist Orderson weighs in on the impact of geopolitics and highlights a significant moment when President Cyril Ramaphosa and Rwandan President Paul Kagame shared a platform at the Africa CEO Forum in Abidjan on Tuesday. Both agreed they needed to focus on the continent's resilience. "Because Africa is an engine of growth." - Crystal Orderson, Journalist Where will the growth come from? Orderson says emerging economies are stealing the spotlight, describing these countries as 'rising stars'. Despite being the biggest economies on the continent, the growth is not going to come from South Africa and Egypt. East and West Africa are leading the charge: Rwanda: 7.1% growth Senegal: 8.4% growth Kenya: 4.8% growth Uganda: 6.1% growth Ivory Coast: 6% growth The World Bank's private investment arm, the International Finance Corporation (IFC), is betting on Africa and planning to invest $14.2 billion in critical sectors. "They say they are going to invest heavily across Africa in digital infrastructure, agriculture, manufacturing, business development, and clean energy." - Crystal Orderson, Journalist covering African issues Africa boasts an enormous surface area and is home to minerals and natural resources. "We have about 30% of the globe's critical minerals. So a big issue is roads, ports, and infrastructure - and there is massive money in that. Experts say there are two to three trillion dollars available in different pension funds" - Crystal Orderson, Journalist This is where the private sector banks and governments are forging public-private partnerships to see this investment unfold, she adds. The RMB Where to Invest in Africa Report shows Africa's five top investment destinations. "The Island economies, like Mauritius, and then Egypt, Morocco and South Africa." - Crystal Orderson, Journalist As a journalist, Orderson has visited Ethiopia many times over the years. She says the country stands out as a compelling case study of transformation. Once plagued by infrastructure challenges, it has dramatically improved its internet connectivity, road systems, and economic stability through strategic investments and diaspora engagement. The G20 and B20 summits, with South Africa in leadership, are creating unprecedented platforms for economic dialogue and collaboration. The African Union's membership in these forums signals a new era of global economic participation. "There is a realisation in Africa they cannot do it alone and need help to start unlocking growth." - Crystal Orderson, Journalist "Things are moving," Orderson emphasises. "The realisation around infrastructure, digital economy, and access to technology are game-changers, and we're seeing significant changes across the continent. The continent's narrative is no longer centred on survival but rather on strategic growth, sustainable investment, innovation, and global leadership.
