Latest news with #continental
Coin Geek
a day ago
- Business
- Coin Geek
African telco regulator launches metaverse adoption framework
Getting your Trinity Audio player ready... The African Telecommunications Union (ATU) has signed a new Memorandum of Understanding (MoU) to promote the adoption and regulation of metaverse technologies across the continent. ATU signed the MoU with the Metaverse Institute, a London-based organization that supports the development of the metaverse for positive global impact. The MoU commits the two partners to a continental framework for the adoption and governance of the metaverse. The agreement is 'a historic step in our digital journey that positions Africa to lead in the next generation of internet platforms,' noted John Omo, the ATU Secretary-General. Africa's youth is marching toward a new world of digital opportunities, and 'we must act now to build safe, inclusive virtual economies and communities,' he added. The metaverse was the hottest buzzword in the tech world a few years ago, with billions of dollars invested in the technology as tech giants and startups raced to be the trailblazers. Mark Zuckerberg even changed Facebook's name to Meta (NASDAQ: META) to match the company's bold ambitions in the space. However, the technology's time at the top was short-lived, with artificial intelligence (AI) dislodging it a few years later. Today, many companies that were initially focused on the metaverse are shifting their course, and with each passing year, fewer billions are being invested in the virtual world. But despite the reduced spotlight, metaverse technologies still hold great promise. The Metaverse Institute notes that over $5 trillion will flow toward training humanoid robots in safe metaverse-based virtual environments alone. Beyond training, the metaverse offers a risk-free environment to explore solutions that would be too expensive in the physical world, such as the iterative development of smart cities. They also allow users to experiment with solutions requiring excessive trials before being released into the real world, such as medical simulations and risk-free surgical training. The MoU will also cater to metaverse regulation, which has been neglected for years. Most governments are racing to police stablecoins, decentralized finance (DeFi) platforms, and AI, with the metaverse receiving little attention, which limits its growth. 'We are honoured to comprehensively evaluate the impact of emerging technologies and the virtual worlds ecosystem on the continent, delivering pragmatic recommendations to maximize Africa's global competitiveness. Together, we envision a digitally empowered Africa by 2063, a global leader in the digital revolution, where innovation serves humanity to forge a prosperous, inclusive and sustainable future for all,' commented Christina Yan Zhang, the Metaverse Institute CEO. While the metaverse may not have the allure it had five years ago, several global giants have deployed pilots on these virtual environments to better interact with their consumers and optimize manufacturing, ranging from Nike (NASDAQ: NKE) and Christie's to Walmart (NASDAQ: WMT) and H&M. However, a new report from the University of Stirling has warned that integrating the metaverse doesn't always translate to a sales bump. The university's research found that having a digital twin of a physical product dilutes the digital product. And yet, as the consumer metaverse dips, the technology's biggest market could be in manufacturing. Major global brands like German auto giant BMW and American retail company Lowe's (NASDAQ: LOW) are using industrial metaverse to run simulations with digital 3D models to spot imperfections and improve their products, saving billions in manhours and resources. Malawi sets 2026 deadline for digital IDs In Malawi, the government has set a 2026 deadline for the issuance of digital IDs, leveraging emerging technologies like blockchain and AI. Speaking at the ID4Africa 2025 AGM in Ethiopia, Malawi's National Registration Bureau (NRB) principal secretary, Mphatso Sambo, revealed that the country has conducted a successful pilot program for the digital ID. It intends to fully roll out the service next year to enhance access to government services. The new digital ID is anchored on a strong national ID uptake in the southeastern African nation, where almost 100% of all citizens aged 16 and above now possess an ID. The digital version will be directly linked to 33 private and public institutions, 'unlocking access to finance, social protection, and essential services.' 'Through innovation and emerging technologies like AI and blockchain, Malawi has planned for a digital ID wallet,' Sambo stated. In neighboring Tanzania, the government has set aside 11 billion Tanzanian Shillings ($4.5 million) to issue digital IDs to 300,000 minors. Watch: Tech redefines how things are done—Africa is here for it title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Bloomberg
a day ago
- Business
- Bloomberg
African Ratings Agency Prepares to Take On ‘Big Three' This Year
The African Credit Rating Agency, a continental initiative to provide alternative assessments of repayment risks, plans to start operations by the end of September. The agency will publish its first sovereign rating report by the end of the year or early 2026, said Misheck Mutize, lead expert on credit-rating companies at the African Peer Review Mechanism, an African Union structure. It will appoint a chief executive officer in the third quarter, and candidates have already been shortlisted, he said last week.
Mail & Guardian
29-05-2025
- Business
- Mail & Guardian
African Development Bank at 60: Time to reclaim the zeal of its visionary reformers
The African Development Bank's shareholders must decide whether the mandate will expand to crowd in private finance, derisk green investment and underwriter regional public goods, or retreat to classical project lending. At its 60th anniversary, the African Development Bank (AfDB) stands on foundations laid by every one of its past presidents. But history shows that three stewards in particular guided the institution through decisive turningpoints: Babacar Ndiaye, Omar Kabbaj and Donald Kaberuka. Their combined reforms offer a blueprint for the next generation. With today's crisis mounting, from shrinking aid to rising debt, that spirit of decisive reinvention must return. The leadership contest we are witnessing now happens as the continent once again faces tightening liquidity, dwindling concessional resources and escalating debt service costs. These pressures mirror earlier shocks: the post Cold War aid squeeze of the early 1990s, the commodity price slump of 1998-2002 and the global financial crisis of 2008-09. Each episode forced Africa's premier development institution to redefine its mandate, strengthen its balance sheet and, crucially, protect its credit standing. Those lessons remain highly relevant as the bank prepares for its next resource mobilisation and as African policymakers debate how the institution can best serve a $3 trillion continental economy that still falls short on infrastructure, climate resilience and industrial diversification. The late Babacar Ndiaye (president, 1985-95) led the bank through one of its most consequential transformations. A consummate Senegalese technocrat and diplomat, Ndiaye secured the 1987 General Capital Increase that tripled ordinary resources to $23.3 billion and brought newly admitted nonregional shareholders behind a common agenda. He went on to champion panAfrican institutions that outlived his mandate, Afreximbank, Shelter Afrique and Africa Re, enlarging the bank's footprint in trade finance, housing and risk transfer. His ability to persuade Eritrea and Ethiopia, Namibia and South Africa to subscribe simultaneously attested to his diplomatic reach. Taking office amid that loss of investor confidence, Moroccan economist Omar Kabbaj embarked on a comprehensive modernisation. He restored the bank's AAA rating, reestablished the stalled African Development Fund (ADF) replenishment cycle and rebuilt capital adequacy. Internally, he introduced rigorous financial controls, procurement guidelines and a competitive remuneration policy that attracted and retained talent. Kabbaj also created the Administrative Tribunal, giving staff formal recourse for employment disputes. Those governance upgrades were not an implicit criticism of Ndiaye; rather, they extended his commitment to durable institutions. By the end of Kabbaj's decade, the bank's balance sheet was stronger, its internal processes codified and its borrowing costs once again the envy of peer multilaterals. Donald Kaberuka, who had already overseen Rwanda's postgenocide recovery, confronted the global financial crisis with equal determination. In 2009 he launched a $1.5 billion Emergency Liquidity Facility, led the temporary relocation to Tunis and orchestrated the bank's orderly return to Abidjan in 2014, while preserving the AAA status earned under Kabbaj. Kaberuka's hallmark, however, was institutional robustness. He strengthened the Independent Evaluation Department, introduced a formal sanctions regime and, for the first time, created an Investigation & Anti-corruption Office. Recognising the infrastructure gap that curbed Africa's growth, he also catalysed Africa 50, a project development and financing platform that today mobilises nonsovereign capital alongside the bank's own resources. The achievements of Ndiaye, Kabbaj and Kaberuka illustrate an evolving but consistent mandate: to finance transformative, continentwide development while safeguarding the bank's financial integrity. Yet Africa's needs have outpaced traditional concessional windows. The climate transition alone could require $250 billion annually by 2030; the digitalisation agenda and the AfCFTA will demand billions more in risk capital and knowledge services. The bank's shareholders, African and non-African alike, must therefore decide whether the mandate will expand to crowd in private finance, derisk green investment and underwriter regional public goods, or whether it will retreat to classical project lending. Reasoning with them on the basis of facts, Africa can argue that without a financially solid, policy innovative AfDB, neither ambition is attainable. A strong capital base, disciplined governance and AAA status are preconditions for leveraging external markets at scale. But the adversity ahead is more intense than any the bank has faced. A planet that is warming faster than anticipated is fuelling droughts in the Sahel, cyclones on the Mozambican coast and devastating floods from Libya to KwaZulu‑Natal; harvest failures and disrupted supply chains are driving a surge in food insecurity across more than 20 African countries. Global financial volatility, higher interest rates and fractured trade corridors are squeezing the very sovereign borrowers the AfDB exists to serve and, by extension, testing the bank's own funding model. Honouring the transformational legacy of past reformers, therefore, is not mere nostalgia; it is the essential starting point for equipping the institution to withstand the next wave of systemic shocks. It requires political acumen, financial discipline and the courage to act at moments of uncertainty. It requires belief in African institutions as engines of transformation, not just conduits for aid. The road ahead for Africa is not easy, but it is not uncharted. An AfDB with that agility is the bank we want to see going forward, and we are confident it is the type of institution our shareholders and development partners will be proud to champion. Obi Ezekwesili is a former minister and former vice-president for Africa at the World Bank. Kalidou Gadio, of DLA Piper, is a former legal counsel of the AfDB. Agnes Kalibata is the former president of AGRA.
Zawya
22-05-2025
- Business
- Zawya
Who will drive AfDB's African transformation agenda post-Adesina?
Akinwumi Adesina, who steps down in September after a decade at the helm of the African Development Bank (AfDB), built his presidency on a vision to lift the continent's poorest, support job creation, and 'feed Africa' - a mantra that has become almost synonymous with his name. His vision is hinged heavily on increasing the lender's capital and boosting its financing to the private sector. Now, five candidates are vying to succeed him, each anchoring their campaign on priorities that deeply resonate with African governments and citizens - debt sustainability, funding entrepreneurship and private sector, and fiscal discipline key among them. Finance, economy and treasury ministers from all 81 AfDB shareholder countries will gather in Abidjan next week to elect the next president of the continental lender, as Dr Adesina completes his second five-year term. Over his tenure, Adesina built on Donald Kaberuka's foundation of strengthening the Bank's role across the continent, transforming it into a financier of tangible dreams and livelihoods, beyond treasuries and nations. Notably, non-sovereign financing for agriculture and climate-related projects rose sharply, with a commitment to triple private sector lending to $7.5 billion annually – almost 70 percent of the AfDB's current loan book. But, delivering this ambition, Adesina said while reflecting on the Bank's 60-year journey, would require 'serious consideration of the bank's business model, allowing it to take on more risks.'He championed a raft of reforms to boost private-sector lending - faster loan approvals, lower borrowing costs, and even the idea of creating an independent arm akin to the World Bank's International Finance Corporation. Yet, as he exits, many of these reforms remain incomplete. The question now is: Who is best placed to steer the Bank through its next transformative phase? What skills and leadership qualities are needed? The five candidates offer varied answers - and visions - for what it will take to carry on Adesina's legacy at the AfDB. Sidi Ould Tah, 60, MauritanianAmong the five contenders vying to succeed Akinwumi Adesina, Dr Sidi Ould Tah is the oldest and one of only two to have led another multilateral development bank. Until April this year, he served as president of the Arab Bank for Economic Development in Africa (Badea), a role he held for a decade. Dr Tah was Mauritania's Minister of Economy and Finance from 2008 to 2015, having earlier served as an adviser to the country's President and Prime Minister. His career in development finance spans nearly four decades, with stints at institutions such as the Mauritanian Bank for Development and Commerce, the country's Food Security Commission, the Municipality of Nouakchott, the Arab Authority for Agricultural Investment and Development (AAAID), and the Islamic Development Bank. Yet it is his decade at the helm of Badea that is most often cited as a mark of his leadership. During his tenure, the bank's credit rating improved and its assets nearly doubled - from $4 billion to $7 billion. Dr Tah is an economist. He holds a PhD in economics from the University of Nice Sophia Antipolis in France, a master's from Paris Diderot University, and a bachelor's from the University of Nouakchott. He argues that, while all the candidates are qualified and capable, his edge lies in having already run a multilateral lender.'My 360-view of development in Africa – from both the demand and supply side - gives me the ability to start running the bank from day one, I don't need a learning process, because I've been running a bank similar to the AfDB for ten years,' he told The EastAfrican. He said vision for the AfDB is anchored on four pillars: Mobilising over $400 billion annually for Africa; reducing risk and borrowing costs for governments; formalising the informal sector through SME financing and entrepreneurship programmes; and investing in climate-resilient infrastructure. Read: Will Africa's financial stability fund rise to the debt challenge?In addition, he sees a role for the AfDB in frontier technologies. After launching a special venture capital fund at Badea, he promises to do the same at AfDB to support African start-ups. He is one of the few traditional bankers openly endorsing the use of blockchain technology – on which cryptocurrencies are built – in mainstream finance.'I don't see any reason for these technologies to work in other continents and not in Africa. We need to embrace technology. We need to be ambitious and risk-taking because we need this continent to prosper,' he said, referring to blockchain technology. On Africa's debt woes, Dr Tah favours more public-private partnerships to finance infrastructure, rather than additional borrowing. He also believes African countries are penalised unfairly in international bond markets due to skewed credit ratings - a challenge he says the AfDB can help address by reframing the global narrative on Africa. Read: Unequal access to credit hurting AfricaWith growing criticism of the International Monetary Fund's role in Africa's economies, Dr Tah believes the AfDB should take a more assertive stance in advising governments and asserting Africa's macroeconomic interests globally.'I believe that the AfDB has the responsibility to be the voice of Africa in the international arena as far as macroeconomics and economic development are concerned. The Bank has the legitimacy, the convening power and the ability to do so,' he told The EastAfrican. So far, only the Republic of Congo and Benin have publicly endorsed his candidacy. Together, they hold just 0.6 percent of AfDB's voting power. His own country, Mauritania, controls a mere 0.057 percent - among the lowest on the continent. Despite his credentials, Dr Tah has drawn criticism for staying on at Badea even after expressing interest in the AfDB presidency, raising concerns of conflict of interest.'I couldn't just walk away and leave things pending, not solved for my successor,' he said in defence, noting he stayed to oversee a proper transition. Bajabulile Swazi Tshabalala, 58, South AfricanSouth Africa has never held the presidency of the AfDB, but if any of its nationals have come close, it is Ms Bajabulile Swazi Tshabalala, who only resigned as the bank's senior vice-president and chief financial officer (CFO) last September after declaring her interest in the only position above hers. She joined the Bank in 2018, initially as vice-president and CFO, before being promoted to senior vice-president in October 2021, making her the second most-powerful executive at the institution after Adesina. One of her most notable achievements at the AfDB was overseeing the largest capital increase in the Bank's history - an accomplishment that, she argues, speaks to her leadership during a critical phase for the institution. Before joining the AfDB, Ms Tshabalala built a career in investment banking and capital markets, mostly in the private sector. She was managing director of Barbican Advisory Group, a London-based risk and compliance firm, and earlier served as CEO of International Development Group (IDG) South Africa. She also spent a decade in the treasury department of the State-owned Transnet SOC, and has held board positions in major corporations, including MTN Group, Standard Bank, Liberty Group, Tiger Brands, and South African Airways. Ms Tshabalala is an economist, with a bachelor's degree in economics from Lawrence University and an MBA in corporate finance from Wake Forest University, both in the United States. She argues that her seven years in senior management at the Bank make her the readiest candidate to take over from Adesina, with no need for a learning curve.'Given where we are, I think it is very important that whoever comes in can hit the ground running, because they understand the capacities of the organisation and they also understand the very talented people in the organisation,' she said in an interview with The EastAfrican. Her four-point strategy, dubbed 'Lift Africa', is built around largescale infrastructure - energy, digital and transport networks; integrated infrastructure - making projects serve multiple purposes; financial innovation and private sector growth; and a transformed AfDB, that can move quickly and delivers results fast. She also promises to place women at the centre of the Bank's operations.'This is something which is not going to be at the back of my mind, it will be at the forefront of my mind because I happen to belong to that half of the continent,' she said. On Africa's debt burden, she insists the root problem lies in low productivity.'I think it's important that even as we help countries address some of the short-term debt challenges and the fiscal constraints, we also need to think about what causes the problem,' she said.'We need to address, once and for all, the underlying causes of Africa's low productivity, which is why it doesn't have enough companies that are growing, it doesn't have enough young people that are employed, and it doesn't have the capacity to expand its tax base.'Read: Africa throws money at youth firms in efforts to rein in unemploymentShe also argues that African countries are often unfairly rated by international agencies and calls for more constructive engagement with them and greater transparency in public finance to improve investor confidence. So far, Ms Tshabalala has only received official backing from South Africa, which holds 5 percent of AfDB's voting power - the fourth-largest among African shareholders behind Nigeria, Algeria, and Egypt, which have not publicly endorsed any candidate. But her candidacy suffered a setback when the Southern African Development Community (SADC) endorsed Zambia's Samwel Munzele Maimbo, effectively splitting the region's support. Amadou Hott, 52, SenegaleseAs Senegal's Economy minister during President Macky Sall's tenure as African Union chair, Amadou Hott became a central figure in Africa's economic diplomacy, leading high-stakes debt restructuring talks and investment negotiations with global powers including the G20 and G7. It was, he says, a role that reflected his core strength - mobilising resources for Africa's development. Since November 2022, Mr Hott has served as the AfDB President's Special Envoy for the Alliance for Green Infrastructure in Africa, a position that has kept him close to the Bank's operations. But he's no stranger at AfDB. He once served as vice-president for Power, Energy, Climate and Green Growth for over two years. Read: AfDB kicks off creation of four green banks in AfricaAcross his public and private sector career, Hott has basically been a dealmaker. Whether as CEO of Senegal's Sovereign Wealth Fund, senior adviser to the President, or as chief executive at Afribridge Capital, Dangote Capital, and UBA Capital, he says he has helped mobilise billions in development finance for Africa. It is this experience that is driving him toward the AfDB presidency. He argues that the next leader of the Bank must have a proven history of successfully raising resources to support the continent's development.'I want to bring all those experiences to really implement our vision for Africa that is more self-reliant and more resilient to climate change and that will also create opportunities for its people, its youth, its women,' Mr Hott said. Mr Hott holds a degree in Applied Mathematics from Louis Pasteur University in France, a Master's in Financial Mathematics from New York University, and another Master's in Economy and Finance from Paris-Sorbonne University. Despite his academic background and investment track record, Hott believes Africa needs leadership that goes beyond technical expertise.'Under the current circumstances, where Africa needs to be more self-reliant more than ever before, the bank needs to rise to the occasion. We need a leader at the bank that is not only technically capable, but that is also politically astute,' he said at a recent debate hosted by the Brookings Institution in Washington, DC. If elected, Hott's priorities include modernising the bank through use of technology and streamlining process to boost efficiency, and expanding its financial capacity using new instruments. He also plans to increase engagement with private sector by creating a dedicated vice presidency for that role and improve the bank's role as an adviser and champion of international economic reform in favour of Africa. On Africa's growing debt burden, Hott proposes a threefold solution: helping countries increase capacity to generate resources locally, mobilising more local institutional capital, and exploring other funding options like hybrid capital and philanthropy, but also funding some projects through PPPs. Like Ms Tshabalala, Hott has so far only received the public backing of his own country, which controls just 0.936 percent of the voting rights at the AfDB. His candidacy has also recently faced a setback following revelations by the International Monetary Fund that Senegal's fiscal deficit was 'significantly' under-reported between 2019 and 2023 – a period during which Mr Hott was Economy minister. Samuel Munzele Maimbo, 52, ZambianSamuel Munzele Maimbo has had only three employers in his lifetime - PricewaterhouseCoopers (PwC), Bank of Zambia, and World Bank Group. It is this last one, where he spent more than two decades, that he believes has best prepared him for the presidency of the African Development Bank. Dr Maimbo joined the World Bank in 2002 as a financial sector specialist and rose steadily through the ranks, eventually becoming one of its vice presidents. For two years, he also served as director of mobilisation at the International Development Association (IDA), the Bank's concessional lending arm, where he sharpened the resource mobilisation skills he believes are now urgently needed to help Africa navigate a growing list of economic headwinds.'I've spent my career transforming how development finance serves Africa…It's time to stop talking about plans and start delivering results at the pace and scale our continent deserves,' he says in his campaign literature. Born in Zambia, Dr Maimbo earned a degree in accounting from the Copperbelt University. He later obtained an MBA in finance from the University of Nottingham in the UK, and a PhD in public administration from the University of Manchester. His campaign rests on the conviction that Africa's solutions are not far-fetched or out of reach - they are 'hidden in plain sight.''I'm running for president of the African Development Bank because I know first-hand that many of the solutions we've talked about are hidden in plain sight,' he said at the Washington debate last month. If elected, Dr Maimbo has outlined several priority areas: Unlocking greater financial resources for African countries, investing in women and youth, boosting energy access, growing intra-Africa trade, and scaling up investment in agriculture. Read: Tanzania gets $130m AfDB loan for Samia project'Africans must trade with each other. We must improve our infrastructure, targeted infrastructure that connects entire regions. We must invest energy. We cannot simply grow in the dark. We must invest in digitalization because that's the only way we accelerate the pace of our growth,' he said. Reimagining AfDB's role, he argues, must begin with investing in the bank itself - strengthening its governance, improving diversity in its leadership team, and equipping it to act as a more agile engine of economic transformation. On Africa's escalating debt burden, Maimbo proposes leveraging more private capital to fund development, channelling more investment into productive sectors that can grow governments' revenue bases, and using data 'more aggressively' to differentiate between solvency and liquidity challenges.'There is not enough concessional financing to treat all debt as exactly the same,' he argued. In terms of support, Maimbo enjoys backing from his home country Zambia, as well as from two key regional blocs. The Southern African Development Community (SADC), which includes 16 member states and controls 15 percent of AfDB voting power – including 5 percent held by South Africa - has endorsed him. The 21-member Common Market for Eastern and Southern Africa (Comesa) has also thrown its weight behind his bid. The only challenge facing his candidacy, observers say, is that Zambia has previously produced an AfDB president. And while there is no formal rule requiring geographical rotation of the role, some may argue that the leadership baton should be passed to another country. Abbas Mahamat Tolli, 53, ChadAbbas Tolli has been a career civil servant, with decades of experience in high-profile government offices in Chad and key multilateral institutions across Central Africa, making him one of the region's top economic thought leaders. Until last year, Tolli served as Governor of the Yaoundé-based Bank of Central African States (BEAC) for seven years. Before that, he was president of the Development Bank of Central African States (BDEAC) for a year. He previously held senior roles in Chad's government, including Minister of Infrastructure and Equipment, Minister of Finance, and Secretary of State. Tolli's tenure at BEAC was marked by wide-ranging reforms that modernised the institution and strengthened its role as a regional monetary authority. He is credited with improving the transmission of monetary policy and overseeing the merger of two stock exchanges to form the Central African Securities Exchange. He also firmly opposed the adoption of cryptocurrencies, pushing back against the Central African Republic's move to make Bitcoin legal tender - a decision the country later reversed. It is this history of leading institutional reform that Tolli says demonstrates his readiness to lead the AfDB into a new era. Africa is at an inflection point, he argues, and it needs a bold reformist to help the Bank chart a transformative course for the continent.'As head of the African Development Bank, I am committed to continuing and amplifying the efforts undertaken in recent years, guaranteeing the continuity that is essential for our growth. Let's make this transformation a reality,' he states in his campaign. Tolli earned his undergraduate degree in Administration and Business Management from the University of Quebec in Canada and holds a postgraduate degree in Economics from the National School of Administration in France. Like the other candidates, Tolli proposes sweeping reforms at the AfDB aimed at increasing its capital base and making the Bank more agile and responsive to today's development challenges. His strategy prioritises social, environmental, and educational investments; building Africa's capacity to process raw materials; and strengthening economic integration and intra-African trade. On tackling Africa's debt crisis, Tolli argues that the solution lies in stimulating economic growth to widen fiscal space, and in improving governance and accountability.'There is no alternative to good governance if we want to raise more resources and channel them to sectors that drive growth,' he said during the candidates' debate in Washington last month. Tolli's candidacy has received the backing of the six-member Central African Economic and Monetary Community (CEMAC), as well as the 11-member Economic Community of Central African States (ECCAS). © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
