By: Amadou Hott, Vice-President of Power, Energy, Climate Change &amp; Green Growth at the African Development Bank
Accessible, reliable and affordable energy is the cornerstone of transformational socio-economic development. For Africa, delivering sustainable development is dependent on meeting the continent’s energy needs in order to lift populations out of poverty, catalyze industrialization, and stimulate economic growth.
Despite the continent’s abundant energy resources, energy poverty is still rife in the continent with close to 600 million people lacking access to electricity. This sets nations back on meeting energy access goals, retards industry progress, and diminishes the continent’s economic growth by 2 to 4 percent every year.
On a positive note, energy access has improved in recent years with the number of people without access in sub-Saharan Africa falling for the first time in absolute terms, and with countries such as Ethiopia, Kenya and Rwanda leading the pace. Africa is at the forefront of distributed energy systems that can increase energy access in rural areas faster, more cheaply, and more widely than conventional grid extension, driven by innovative business models and rapidly decreasing technology costs. At the same time, renewables are on the rise across the continent with significant renewable generation capacities added in countries such as Egypt, Morocco and South Africa.
Renewable energy investments are also on the rise across the continent from Senegal, to Kenya, and Zambia. While this progress is encouraging, the pace of energy access falls far short of meeting the universal energy access target by 2030.
Closing the gap on Africa’s energy challenges presents major opportunities for investors keen on engaging with the continent, especially on helping Africa meet the shortfall in the estimated $90 billion required to achieve universal energy access by 2030.
Clearly, these financing needs are of such magnitude that no single institution is capable of meeting them in isolation. This is why development finance institutions need a pragmatic shift in how they do business and leverage scarce public resources in order to mobilize private sector financing at scale, “from billions to trillions”.
The African Development Bank is leading by example. For instance, the Bank launched the Facility for Energy Inclusion to close funding gaps in the small-scale energy infrastructure sector, and catalyze last-mile energy access. Through a mix of commercial and concessional instruments, the facility provides low cost of capital, and mitigates key credit and currency risks. Additionally, the recently approved the Room2Run transaction allows the Bank to effectively transfer the credit risks of selected loan portfolios to investors, which lowers the total risk consumption of the Bank.
This initiative will enable the Bank to recycle capital efficiently in order to boost lending capacity and enhance private sector investments. The transaction has already attracted major support from partners like the European Commission who will provide a $100 million guarantee to be channeled into renewable energy projects in Africa. Ultimately, this will free up around $700 million, which can be re-allocated to new projects.
Multiple barriers hinder investments and private sector participation which could potentially fast-track energy access. These include lack of an enabling policy environment for investors, and other systemic bottlenecks that slow down transactions and escalate project costs. Transforming the energy landscape calls for a multi-faceted approach to unlock private sector capital by resolving these barriers in order to create the ideal conditions for investments in the continent.
The African Development Bank in close collaboration with other development partners is perched on the apex of creating a vibrant marketplace that will deliver the energy transformation necessary to move Africa forward. The Bank is dedicated to eliminating and minimizing barriers for investors, primarily through financial instruments to de-risk transactions, disseminating knowledge and market data, and facilitating peer-to peer learning and networking. Private sector engagement is on the rise, buoyed by various partnerships such as the New Deal on Energy for Africa and the US-led Power Africa Initiative.
To sustain this momentum, the bank convened the inaugural Africa Energy Market Place (AEMP) in Abidjan in July 2018. The AEMP is a platform for public private dialogue, and is set up to address barriers to mobilizing and scaling-up private investment into the energy sector. Effectively, AEMP reviews and prioritizes transformative energy transactions, and accelerates reforms in order to attract private investments and create a pipeline of bankable projects. Five countries participated in the inaugural edition: Côte d&#8217;Ivoire, Egypt, Ethiopia, Nigeria, and Zambia.
The conversations that began at the AEMP are set to continue in November’s Africa Investment Forum (AIF) in South Africa. The forum convenes project sponsors, borrowers, lenders and investors with a shared interest in closing Africa’s infrastructure gap which is estimated to be anywhere between $130–$170 billion per year.
By convening,and facilitating mutually beneficial dialogue amongst stakeholders who can dramatically impact Africa’s energy landscape, the Bank is creating the requisite foundation for accelerated private sector investments in Africa’s energy sector to achieve universal energy access.
Indisputably, this will put the continent steadily on the path to socio-economic growth, and sustainable development.

OpEd: Why financing Africa’s energy infrastructure is a major opportunity for investors

INFOGRAPHIC: Reasons to invest in South Africa

JOHANNESBURG (Reuters) &#8211; South African media and e-commerce giant Naspers said on Friday it would invest 4.6 billion rand ($315 million) over the next three years in its technology businesses and to fund technology start-ups.
Naspers said in a statement ahead of an investment summit called by President Cyril Ramaphosa it would allocate 3.2 billion rand to developing its existing technology businesses including the OLX Group, Takealot, and Mr D Food. Naspers said 1.4 billion rand would be used to fund technology start-ups.
($1 = 14.5850 rand)
Reporting by Tanisha Heiberg; Editing by James Macharia

This South African media giant plans to invest $315 million in technology expansion

Media Press Release
Sanlam has and always will call Africa home. For the last 100 years, the Group has been 100% committed to investing in Africa’s potential, which is evident in its expansion across 33 African countries and counting. This shows its mission to create a continent of WealthsmithsTM and an Africa full of potential for emerging generations to inherit.
From small beginnings with just seven founding members to being the financial services group with the biggest insurance footprint on the continent, the Group is constantly evolving, but its core belief remains the same: with hard work and dedication, anything is possible. This attitude, combined with a trailblazing partnership approach, has secured the success of Sanlam’s expansion strategy.
CEO Ian Kirk says that while others have come and gone, Sanlam has chosen to stay. “While some things may change, certain things will always be prioritised in our decision-making: our people, our continent and creating a legacy we’re proud of.”
All the decisions the centenarian has made – from demutualising and listing on the JSE 20 years ago to acquiring African Life in 2005 and the SAHAM acquisition that’s currently underway – have demonstrated its unwavering commitment to the continent.
It’s a strategy that’s paid off. And one few other companies have been able to get right. Kirk says the secret is in Sanlam’s approach to entering new markets, which is largely partnership-based, with a focus on upskilling and investing in local talent and enterprises. This is primarily driven by the group’s Emerging Markets division.
Junior Ngulube, CEO of Sanlam Emerging Markets, says that being African means creating strategic partnerships across the continent. “We have a win-win business model. We grow and so do our in-country partners. Our philosophy is not to come into a country and take over. It’s to work with relevant and trusted partners on the ground. To let local managers and boards run their businesses with our support. This way we create jobs, upskill individuals and invest in the countries we enter in – and Africa as a whole.”
This approach has helped fuel Sanlam’s consistently strong results. From January to April 2018, Sanlam Emerging Markets’ (SEM) net result from financial services increased by 34%, with the net value of new business improving by 14%, excluding structural activity. Overall, SEM recorded new business growth of 19%.
Much of the SAHAM acquisition has already been approved and enforced across the continent with game-changing results for Sanlam’s pan-African expansion vision. Currently subject to final regulatory approvals, the pending balance of the acquisition should be concluded soon. Ngulube said the acquisition makes perfect business sense, “SEM is strong in life insurance, while SAHAM is more focused on short-term insurance. The two businesses complement each other and so are a natural fit. We’ve always been partnership-focused and this is a way to bring our two organisations together to extract all possible synergies and facilitate the cementing of our unique footprint across Africa.”
Ngulube says the tri-partnership between Sanlam, SAHAM and Santam has positioned Sanlam as the go-to partner for multinationals in Africa and abroad. He says the group is increasingly finding opportunities to support other international insurers who are not based in Africa but have African clients. Potential he sees growing as Africa naturally takes its place as a global superpower.
Next up, Ngulube and Kirk have set their sights on the strong emerging markets of Egypt and Ethiopia. Kirk concludes, “It’s impossible to stress how deeply our vision is interwoven with our roots in Africa. As WealthsmithsTM, we’re focused on ongoing opportunity creation for all Africans. There’s unrivalled ingenuity and potential here, which we have the privilege of investing in.”
In its 100 years in Africa, Sanlam has: 
&#8211; Demutualised and listed on the JSE (20 years ago) – the largest initial public offering in the country’s history at the time, more than trebling the number of JSE shareholders overnight 
&#8211; Shown sustained share price growth. In 1998, a share of SLM was worth R5.85. Today it’s more than ten times higher at R79.21 (April 2018) 
&#8211; Increased its market cap by R161bn, since 1998 
&#8211; Championed SA’s first major black empowerment deal 
&#8211; Expanded into 33 African countries through the USD1050-billion acquisition of SAHAM Finances, which is subject to final regulatory approvals
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This article was paid for by Sanlam

This is what Sanlam has achieved in its 100 years of investing in Africa

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In February 2017, Nigeria&#8217;s Federal Executive Council approved the revised national tax policy to promote investment and improve the government&#8217;s revenue collection. In June this year, two executive orders and five amendment bills were also been approved to improve Nigeria&#8217;s taxation system. Chinedu Ezomike, Partner and Head of Commercial Practise at Andersen Tax joins CNBC Africa to review the progress of Nigeria&#8217;s tax reforms.

Reviewing Nigeria’s tax reforms

NAIROBI (Reuters) &#8211; Marriott International plans to increase its hotels in Africa by 50 percent in the next five years, opening new facilities in markets where it already operates and venturing into new ones like Mozambique, the company said on Monday.
Global hotel chains have been increasing their investments in Africa in recent years to take advantage of fast expanding economies and improving transport links.
Marriott said it had signed deals with partners which will see it increase its hotels in Ghana, Kenya, Morocco, South Africa, and mark its entry into Mozambique.
“The signings put Marriott International on track to increase its portfolio by 50 percent with over 200 hotels and 38,000 rooms by 2023 estimated to generate 12,000 new job opportunities,” the company said in a statement.
Other chains which have recently announced African expansion plans include AccorHotels, which has more than 100 hotels in Africa and has earmarked $1 billion for expansion on the continent.
The Bethesda, Maryland-based company has a portfolio of 6,700 properties in 130 countries, including 21 countries in Africa.
Reporting by Duncan Miriri; editing by Jason Neely

Marriott International plans to expand in Africa by 50 percent in the next five years

By Karen Mwendera and Methil Renuka from Forbes Africa
From November 7-9, Africa Inc. will convene in South Africa’s Gauteng Province, the continent’s seventh largest economy, for the inaugural Africa Investment Forum (AIF).
An initiative of the African Development Bank (AfDB), it was announced in May in Johannesburg by AfDB President Akinwumi Adesina with Gauteng premier David Makhura.
“It will be the continent’s first-ever investment market place,” said Adesina, formerly Nigeria’s minister of agriculture.
“South Africa is open for business again, and as Gauteng, we are ready to host the forum on behalf of not only South Africa, but for Africa,” said Makhura, calling the forum “the Davos of Africa”.
A platform to close the investment gap, Adesina called it a game-changing initiative.
READ MORE: The Investment Hotspot
“It cannot be business as usual, it must be business unusual,” he said.
With Africa’s population set to be two billion by 2050, its development needs will require an estimated $600-$700 billion per annum. So accelerated development will be the forum’s focus.
“The forum will be 100% transactional. There will be no political speeches. The only thing allowed will be transactions, transactions and transactions,” said Adesina. In attendance in November will also be African heads of state who will be present as the CEOs of their countries.
In a sit-down interview with FORBES AFRICA, the AfDB president shared more about new investments, and the bread baskets and Silicon Valleys of Africa:
How will AIF take Afro-optimism and the African growth story further? 
African economies have been growing relatively well in a very difficult global environment. Despite the global economic downturn, in 2016, they grew at roughly 2.2%; in 2017, they grew at 3.6%. In 2018, they are projected to grow at 4.1%. And that’s still above the global average.
So Africa’s head is above the water. But it’s more than about keeping your head above the water that matters, it is about how fast you can swim. I think Africa needs to swim fast and needs a lot of oxygen to do that. And that means a lot of firepower in terms of capital to close the infrastructure gap. To be able to drive millions of people out of poverty, Africa should be growing at double digits.
To be able to do that we have to deal with the problem of lack of electricity, make sure there is a lot more investment to allow trade to happen. Africa could contribute a lot more be it is rail, ports, national highways or aviation. It has to change lives on the ground and quiet honestly when people ask if I am an Afro-optimist, I am a very proud African. Africa is a beautiful place and has tremendous potential so we shouldn’t always just talk about the potential because nobody eats potential. We have to unlock that potential. So that is what the Africa Investment Forum is all about. Be it oil, gas, minerals or agricultural commodities, Africa is awash with rich resources.
The question is how to turn them into real dividends with significant amounts of revenue that allows a better quality of life for the people. For that, you need to deal with the infrastructure deficit. We used to say it is about $15 billion. But that has changed. The AfDB recently released the African Economic Outlook report and the deficit is anywhere between $67 billion to $107 billion every year, so which means we must do a faster job pulling capital together because the rest of the world is not waiting.
How long will it take to close that gap? 
I think within the next decade. But it’s going to take a lot of work…
What about the youth dividend; what are the future industries? 
Africa is at the very top in fintech and mobile money… but as we look at new types of industries, we have to look at them in the context of the fourth industrial revolution… I get excited when I see the youth in Africa well-educated, they are all on social media, know how to use apps, which means they already have a leg up. So the key is how to re-tool them to operate in that kind of a new economy. The AfDB is doing that in three ways already. First is we signed up a joint program with Google and Microsoft to help develop young talented Africans in computer technology. We as a bank are already investing in technology parks in Cape Verde, Angola, Kenya, Senegal, Rwanda. These are technology parks where you can have the ICT industries emerge; almost like trying to create the Silicon Valleys of Africa.
When it comes to the new economy, you have to start early. We have a program trying to create 250 coding centers in Africa where you get people with computational knowledge to do coding services that can help in this new world we are moving towards. We are also investing in universities for science and technology across Africa to create this new scientific human capital…We need to give African youth the skills they need for the jobs of the future, not for the jobs of yesterday.
What then are the new wealth generators? 
If you look at where the money is going in Africa, it’s not actually going into oil, gas and natural resources. Most of the foreign direct investment (FDI) is going into the service industry, at least 64%, and also the financial services sector; maybe about 27% goes into the manufacturing sector. So these are the big sectors where you see a lot of FDI. But there are two sectors very important for me. 
One is ICT, because this is going to be the driver of the economy. It’s very important for countries to invest heavily in the ICT industry to give their countries the platforms they need in the knowledge economy.
The second is the food and agriculture industry. Africa has a lot of oil and gas, but nobody drinks oil, nobody smokes the gas. Food is the future. The size of the food and agriculture industry in Africa is going to be $1 trillion by 2030 in Africa. This is where the wealth is supposed to come from. Unfortunately, in Africa, we always walk past gold. Just imagine you are seeing gold, and you see it as dirt and don’t recognize it. That’s the power agriculture has… The food business is the biggest business. Agriculture is not a development sector, it’s not a social sector, it’s a wealth-creating sector. Agriculture is a business and Africa needs to fully unlock that potential. If you look at the amount of arable land left to feed nine billion people in the world by 2050, it is not in Europe, Latin America, Asia, or the US, it’s in Africa – 65% is right here. What Africa does with agriculture will determine the future of food for the world.
How will Africa’s billionaires and capitalists help achieve these goals? 
If you look at the high-networth-individuals in Africa, the majority of them make their money on this continent, and that’s already a strong signal. Aliko Dangote makes his money in Africa. 
So we are going to get them involved on the Africa Investment Forum because it is trying to send a message to the world that we have African businesses that are viable businesses making money and doing well on the continent; so putting capital to help them expand can help them become global multi-national companies…
And investing in African entrepreneurs? 
The issue for entrepreneurs is finding them, nurturing them and then putting the financial backing behind them to thrive. Africa has a lot of young people. Every day, I wake up I read about a young person doing so well. So the best investment that Africa can make is to put its capital at risk on behalf of its young people. Because when you see a young person walk into a financial institution, all you see is risk, risk, risk. We have to change that and try and see creativity, innovation and entrepreneurship. So that way we can put your money at risk to make them more creative, more innovative and unleash their entrepreneurship capacity. That is why at AfDB, we have a program helping to invest in the early-stage businesses of young people. Mark Zuckerberg and Bill Gates didn’t just get there, somebody had to believe in them.
We have a program set up with the European Union called Boost Africa to invest in young people. The other thing we are doing is helping unleash entrepreneurship in the food and agriculture industry. The bank has a program targeted at getting young graduates, medical doctors, engineers… who are all going to agriculture as a business. Last year, AfDB invested over $860 million in that program for about eight countries. Going forward, we expect to invest $1.5 billion dollars every year in that program for the next 10 years. 
I really think unless we change the mindset, the labor composition of the agricultural sector and create a new dynamic group of entrepreneurs in the food industry, we only will have old people left. Every university in Africa has to make entrepreneurship compulsory.

#AfricaInvestmentForum: A Marketplace Coming To Africa

MOGADISHU, June 16 (Reuters) &#8211; Somalia and Ethiopia announced they were jointly investing in four seaports to attract foreign investment to their two countries, the latest move in a tussle for access to ports along one of the world’s most strategic waterways.
After Somalia’s president Mohamed Abdullahi Farmaajo hosted Ethiopia’s prime minister Abiy Ahmed for a meeting at the presidential palace in Mogadishu, the two leaders issued a joint statement of pledges to cooperate on everything from the development of infrastructure including roads linking the two countries to expanding visa services to promote cultural exchanges.
The statement did not elaborate on which ports the two countries would develop.
The Horn of Africa’s Red Sea coastline extending north of Somalia through Djibouti and Eritrea toward the critical Suez Canal is already dotted with ports owned or run by countries locked in a regional struggle: the United Arab Emirates and its ally Saudi Arabia on one side, and Turkey which backs Qatar on the other.
Landlocked Ethiopia, which has a population of 100 million, has been led since April by 41-year-old former intelligence officer Abiy, who has moved swiftly to assert his nation’s interests on the international stage.
“The leaders further agreed to invest in logistics and service provision specially to leading ports in the continent that can serve both the Indian ocean and the Red Sea,” the statement read.
The day before Abiy’s visit to Somalia, the United Arab Emirates pledged to give $3 billion to Ethiopia in aid and investments, in a major show of support for the new leadership in Ethiopia.
The strengthened partnership between Ethiopia and the oil-rich Gulf monarchy is significant in the context of Addis Ababa’s ties with Mogadishu.
Somalia and the UAE have been at odds for months over the broader dispute in the Gulf region.
That Middle Eastern feud is driving the desire to control the Horn of Africa and its waters, diplomats, businessmen, scholars and Somali officials have told Reuters.
In May, Ethiopian state media reported that Ethiopia had taken an unspecified stake in the port of Djibouti, its main gateway for trade.
Reporting by Abdi Sheikh Writing by Maggie Fick Editing by Stephen Powell

Why Ethiopia and Somalia are jointly investing in four seaports on the Red Sea

IFC, a member of the World Bank Group, today announced a $60 million investment in a regional risk-sharing facility to support Bank of Africa Group’s lending to small and medium enterprises in eight African countries, facilitating growth and job creation in the region.
The investment was made possible with support from the Women Entrepreneurs Opportunity Facility (WEOF), launched by IFC through its Banking on Women Program, and Goldman Sachs 10,000 Women. Further support came from the Global SME Finance Facility, a blended-finance partnership among IFC, the UK Department for International Development, and the Netherlands Ministry of Foreign Affairs.
IFC’s investment will cover as much as 50 percent of the risk on up to $120 million equivalent in loans to local SME’s in Burkina Faso, Ghana, Madagascar, Mali, Niger, Senegal, Tanzania and Togo. Half the facility is earmarked for women-run businesses, and for climate-related improvements, such as energy efficient equipment upgrades, small solar or biomass systems, and climate-smart agricultural supply chains.
Cristina Shapiro, Head of 10,000 Women, said, “Goldman Sachs research shows that closing the credit gap for women-owned SMEs in emerging markets could push income per capita an average of 12 percent higher by 2030. Women entrepreneurs have real potential to impact Africa’s future growth. Through this partnership, we will help to build resilient, women-owned businesses, and enable women entrepreneurs to reach their full potential with the capital and support they need.”
Oumar Seydi, IFC Regional Director for Africa, said, “Expanding SME financing, especially in markets where risks are higher, is an important pillar of IFC’s Africa strategy. This facility will allow BOA to extend over 5000 loans to underserved SME’s in the next five years. It could have a transformational impact in the participating countries, seven of which are low income, and five fragile or conflict-affected.”
SMEs are a prime source of growth, jobs and innovation, but can only succeed when they can access sufficient financing. In sub-Saharan Africa, where roughly 350 million new jobs will be needed in the next 20 years, they account for 30 to 60 percent of GDP, and 67 percent of jobs.
The WEOF is a facility dedicated to expanding access to capital for 100,000 women entrepreneurs globally. IFC’s Banking on Women Program has committed 64 investments globally worth $1.71 billion, and advised on 39 projects since its launch in 2010. Of these, the WEOF has supported about $1 billion in commitments to financial institutions in 26 countries.
IFC plays a significant role helping SMEs access financing. The Global SME Finance Facility is a key part of this strategy, helping financial institutions better meet the financial needs of SMEs. Since its creation in 2012, the Global SME Finance Facility has provided investment and advisory solutions to more than 130 projects in 32 countries, strengthening financial infrastructure in low-income markets. It has committed over $1 billion in investments.
About Bank of Africa Group 
Bank of Africa Group is presently established in 18 countries, 8 of which are in West Africa (Benin, Burkina Faso, Ghana, Ivory Coast, Mali, Niger, Togo and Senegal), 8 in East Africa and the Indian Ocean region (Burundi, Djibouti, Ethiopia, Kenya, Madagascar, Rwanda, Tanzania and Uganda) as well as in the Democratic Republic of Congo and in France. Bank of Africa Group has its majority shareholding held by BMCE Bank the third bank in Morocco. It provides solid strategic and operational support to Bank of Africa Group, as well as direct access to international markets thanks to its presence in Europe, Asia and North America. Established over 35 years ago, BOA Group presently has 6,000 employees and a consolidated balance sheet of €7.7 billion and consolidated net profit of €125.3 million as at December 31st, 2017, with €76 million Group profit.
About IFC 
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org
About Goldman Sachs 10,000 Women 
The Goldman Sachs 10,000 Women initiative is a campaign to foster economic growth by providing women entrepreneurs around the world with a business and management education and access to capital. The initiative has reached women from across 56 countries through a network of 100 academic, nonprofit, and bank partners. In partnership with the International Finance Corporation (IFC), Goldman Sachs 10,000 Women launched the first of its kind global finance facility in 2014 to enable access to capital to more women entrepreneurs.
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&#8211; IFC (International Finance Corporation) press release.
&nbsp;

IFC to invest $60 million in Bank of Africa to support SME lending in eight African countries

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As part of its continued investment in South Africa, Mahindra Motors revealed its manufacturing plant in Durban. CNBC Africa&#8217;s Aviwe Mtila spoke with Arvind Mathew of the International Operations for Mahindra Group for more.

Mahindra Motors unveils assembly plant in SA

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CNBC&#8217;s Brian Sullican caught up with him at the IHS Markit CERA week conference on Tuesday and they discussed the issues that could impact the global oil industry.

Top issues likely to face the global oil industry – Mohammad Barkindo

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Nigeria&#8217;s Minister of Industry, Trade and Investment, Okechukwu Enelamah says the biggest challenge for taxation is the large informal economy. CNBC Africa’s Christycole Popoola caught up with him on the side-lines of the launch of Andersen Tax.

Why taxing the informal economy might be a huge challenge – Enelamah

<img loading="lazy" decoding="async" class="aligncenter wp-image-299369 size-full" src="http://cnbc.africa/wp-content/uploads/2018/02/vlcsnap-2018-02-19-17h08m39s9571.png" alt="" width="720" height="576" />
By Mary-Jean Nleya *
With international meetings such as The World Economic Forum in Davos (held from 23 to 26 January 2018), under the theme &#8220;Improving the State of the World: Creating a Shared Future in a Fractured World&#8221;, one wonders how high the “Africa Agenda” is placed in the programme.
After all, not more than one month earlier, the leader of the free world, President of the United States (POTUS) Donald Trump was reported to have made denigrating comments about the continent, <a href="https://www.nbcnews.com/news/nbcblk/78-ex-us-envoys-africa-write-letter-trump-following-s-n838906">calling</a> African countries “s***hole countries” – something he now <a href="http://edition.cnn.com/2018/01/15/politics/donald-trump-dick-durbin-oval-office-meeting/index.html">denies</a>. Instead, POTUS was reported to prefer immigrants into the US from countries such as Norway, a country recently ranked by the <a href="http://reports.weforum.org/the-inclusive-development-index-2018/results-and-key-findings/">WEF</a> as the best country to live in; while the US is ranked 23rd. No wonder why Norwegians may not have the interest to go and live in the US.
Instead, President Trump (as an anti-status quo crusader) should have called for better ways to engage with African leaders in the global political economy to improve their respective countries’ economies &#8211; rather than making demeaning comments about an entire continent. With such engagement, the long-term economic opportunities on the continent would be such that Africans would find no need or interest to go to the US &#8211;  just like the Norwegians.
On Friday, 26 January 2018 during a meeting with President of Rwanda, Paul Kagame, President Trump “<a href="http://thehill.com/homenews/administration/370845-trump-ignores-questions-about-s-hole-countries-comment-while-meeting">dodged</a>” a question posed regarding his previous “s***hole countries” statement; POTUS did, however, praise the “<a href="https://edition.cnn.com/2018/01/26/politics/trump-hails-rwanda-relationship-davos-intl/index.html">great relationship</a>” between Rwanda and the US.
<h4>The Africa Agenda is about taking the continent seriously</h4>
The “Africa Agenda” is about taking Africa, and its constituent countries, seriously. Seriously enough for investment to flow into the continent, and prevent its young people from fleeing to the point of risking their lives, across the Mediterranean or being sold as slaves in Libya, in an attempt to find better opportunities.
Danish Prime Minister Lars Løkke Rasmussen during an <a href="https://www.cnbc.com/2018/01/25/cnbc-interview-with-denmarks-prime-minister-lars-lokke-rasmussen-from-the-world-economic-forum-2018.html">interview</a> in Davos mentioned the importance of looking at Africa as a place to invest in saying: “We are trying to establish a partnership with certain African countries because we need a &#8216;more for more&#8217; attitude, where we invest more in Africa”. Africa should be viewed as an investment opportunity.
China has recognised this “investment opportunity” in Africa. During a side <a href="https://www.bloomberg.com/news/articles/2018-01-24/gates-says-america-first-endangers-u-s-influence-in-africa">interview</a> in Davos, Bill Gates remarked how China was taking active strides to engage with the continent on various fronts and the US should do the same, as the “America First” rhetoric could prove to be a danger to the US-Africa engagement.
On another note, China’s leader, President Xi Jinping made news headlines last year (2017) with his unprecedented WEF attendance and his speech; however, this year, Xi Jinping opted <a href="https://qz.com/1187666/davos-why-chinas-president-xi-jinping-skipped-the-2018-world-economic-forum/">not to attend</a> the event.
<h4>African leaders should step up and let the continent speak for itself </h4>
It is not all up to the leaders of richer countries to speak on behalf of African countries. African leaders ought to represent the continent as a place of business and not a place to be pitied. The World Economic Forum is the ideal place to advocate for an “African Agenda”.
The new President of Zimbabwe, Emmerson Mnangagwa,  made that message clear when he tweeted: “The new Zimbabwe is open for business”. According to a <a href="http://www.imf.org/en/News/Articles/2018/01/23/pr1815-managing-director-lagarde-meets-south-africa-deputy-president-cyril-ramaphosa">press release</a> issued by the International Monetary Fund (IMF), South African President, Cyril Ramaphosa (then Deputy President) met with IMF Managing Director, Christine Lagarde in Davos and discussed “reforms needed to create an environment conducive (to) job creation and less inequality (in South Africa)”.
Rwanda is often heralded as one of Africa’s successes with respect to gender equality and economic growth prospects. This time in Davos, Rwanda <a href="http://allafrica.com/stories/201801250210.html">reportedly</a> show-cased drone technology after the adoption of drone regulations at the policy-level made possible by the country’s partnership with the World Economic Forum.
<h4>Africa is not only the future, but the present</h4>
Indeed, Africa is not only the future, but the present and global meetings should be places where this fact is buttressed. Africans being sold as slaves during the Atlantic Slave Trade should be confined to history books and should not be the subject of reports in the 21st century&#8217;s news media.
Instead, Africa should make a positive contribution, for example, to the Fourth Industrial Revolution. Africa should now take the necessary steps in the direction of getting Africa to that place of influence, respect, and dignity. And this momentum starts at meetings such as those in Davos.
* Mary-Jean Nleya is the founder and editor of <a href="http://www.theglobalcommunique.com/">The Global Communiqué</a> . She is also a One Young World Ambassador.

Op-Ed: An Africa Agenda at Global Meetings – WEF in Davos 2018

When it comes to matters of the heart, people often say that “opposites attract.”  If this is indeed the case, it may also hold true that two individuals in a romantic relationship deal with money matters in very different ways.
<img loading="lazy" decoding="async" class="aligncenter wp-image-298798 size-full" src="http://cnbc.africa/wp-content/uploads/2018/02/Couples_Savings_01_Black-Enterprise.jpg" alt="" width="1000" height="667" />
The nature and magnitude of the differences may vary based upon each partner’s relationship with money as well as their respective value systems. While couples might believe they hold similar values around major issues such as lifestyle, religion, and raising kids, values around finances could hold surprises for both.
Financial stress is often singled out as main contributor to a break-up or divorce, surpassing other reasons such as cheating, and annoying habits. Security and stability in our household and relationship are what we all seek, and if our partner’s overall wellbeing is such an important factor, why do we often avoid discussing our finances?
Avoiding the money conversation 
Money is a sensitive topic of conversation, which is often avoided. People frequently take their financial expectations for granted, and don’t always see the need to discuss their money matters as clashes in this area often lead to arguments and resentment.
Various other factors may also play a role: whether we view this person as our potential life partner; and whether they are mature enough to grasp the magnitude and importance of such discussions.
One of the partners must however be bold enough to take the lead when it comes to initiating the money conversation and agreeing on a financial management journey that both parties are comfortable with.
There are a number of questions you need to ask yourself before initiating this very important discussion with your partner:
<ol>
<li>How ready are you to talk about your finances? Many people use money discussions to interrogate the other partner while they are not prepared to share the details of their finances if the tables are turned.  Each party should show a willingness to openly discuss the state of their finances.</li>
<li>Do you save and invest? According to a SunTrust study, people who save or invest are generally trustworthy people. This equally applies to people who have good credit scores, as this is a great indication of how good they are at managing their debt.</li>
<li>Are you planning any significant long-term financial obligation, like buying a house or a car? Are you saving for a deposit for this? Its okay to bluntly ask: “So how are you planning to pay for this?” Your own experience may help to guide your partner in finance options.</li>
<li>How healthy is your credit score? There is a growing school of thought who believe that the healthier the credit score, the more trustworthy a person. So besides the need to understand how good your partner is at managing their debt, you could benefit from further understanding the nature of the person you are committing to.</li>
<li>Are there any non-credit-related but equally long-term commitments? Obligations like garnishee orders, black tax and child support are longer term commitments. As a partner you need to understand these dynamics, especially if you intend to have children of your own one day.</li>
<li>Can you ask the Lobola question? This is possible once the question of marriage has already been raised. How is this going to be paid for? Are you comfortable with credit-led Lobola or would you rather be patient enough for your partner to save to pay his dues?</li>
</ol>
Building a future together 
Ask yourself: can you work with your partner to build a better future, one that is savings, investing and wealth creation-led, where financially prudent decisions will be made jointly?
This will enable you to build a financial legacy for yourselves and your family. I call this the #WealthLegacyProject. This all starts with planting small and manageable financial seeds, which need to be nurtured to avoid financial mistakes being deferred to the next generation.
This Valentine’s month might be the right time to raise this topic with your partner. The money conversation may test the resilience of your relationship, but as long as the result is a concrete plan on how to save to spend, save to invest, and create wealth together, you are on the right path.
These are not meant to be emotional discussions, but rather open-minded conversations between two mature people who are in it for the long haul.

Money, love and happiness: The best time to start the money conversation is right now

George Herman | Citadel Investment Services
With December holiday and New Year expenses putting a pinch on your pockets, you may be one of many looking to get your finances back on track in 2018 by investing your hard-earned savings towards your future. And to cut through the overwhelmingly wide array of investment options available, George Herman, Director and Chief Investment Officer at Citadel Investment Services, offers a few practical tips for building a “best of breed” investment portfolio as you set out on your savings journey.
<img loading="lazy" decoding="async" class="aligncenter wp-image-86475 size-full" src="http://cnbc.africa/wp-content/uploads/2017/02/budget_shutterstock_180233393.jpg" alt="Will S.A's 2017 Budget bode well for retirement savings?" width="1536" height="1024" />
“The bad news is that there is no silver bullet for choosing the best investment or best fund, as the top performing funds and fund managers today may not be at the forefront tomorrow,” he notes.
“The key to building an optimised portfolio is therefore to choose funds and fund managers tailored to your individual needs as part of a long-term investment strategy.”
He offers the following simple guidelines for you to follow as you put your money to work:
Step one: Map out your financial goals
Begin developing your investment strategy by simply making a list of your individual financial goals.
“Setting these goals is like setting the destination points on your GPS – you’ll save a lot of time and money by having a clear endpoint in mind instead of coasting around,” says Herman.
“Be as specific as possible, thinking carefully about how much you will need and your time frame.”
This list could include goals from a family holiday to purchasing a new home or car, to providing for a comfortable income in your retirement.
Step two: Choose your basket of assets
Once you have mapped out your financial goals and time horizons, your next step will be to decide your portfolio’s asset allocation, or the mix of your underlying investments.
The four main asset classes are equities or shares, bonds, property, and cash or money market instruments. These asset classes perform differently in various economic environments, and offer varying levels of potential returns according to their perceived levels of investment risk.
Investments in equities, for example, are generally expected to deliver much higher rates of return over the long term than investments in money market funds. However, money market funds are usually less volatile, meaning that your investment in the short term will likely see far fewer ups and downs.
He notes, however, that the best method for reducing your investment risk while still reaching an acceptable level of return is to gradually ensure that you are appropriately diversified. Achieving diversification means balancing out market highs and lows by spreading your investment risk across different asset classes, sectors, regions and with different fund managers with different styles.
“Focussing exclusively on one type of investment would be like a boxer using only one hand. It’s important to use every tool at your disposal to achieve the best possible outcome.”
Step three: Compare your options
There are a range of investment products open for you to invest your money in, each with various benefits and drawbacks. Herman offers a brief checklist for you to ensure that you understand the products or funds that you are investing in, and that they are suited to your individual requirements:
<ul>
<li>Who manages the fund? Who is the fund manager and what is their expertise or experience? Also avoid fraudulent schemes by checking that the fund and fund managers are registered with the Financial Services Board (FSB) by contacting the FSB’s call centre at 0800 110 443.</li>
<li>What are the costs? You can compare costs by using the fund’s Total Expense Ratio (TER), which measures the total cost of the fund’s management and operational expenses, expressed as a percentage of the fund’s assets. Consider what value the fund is offering comparative to its fees, as well as whether you may need to pay any additional fees such as brokerage or account administration fees.</li>
<li>What returns can you expect? While past performance is never a guarantee of future returns, how has the fund performed compared to other similar funds? Also consider how returns are paid, for example in the form of interest or dividends.</li>
<li>How is the investment taxed? Understanding how different products are taxed will enable you to invest more tax-efficiently.</li>
</ul>
Step four: Review your investments regularly
If you are just setting out on your investment journey, it won’t be possible to invest everywhere all at once.
“It is therefore vital you regularly review your investment portfolio, and continue to adjust your investments and strategy over time to meet your changing needs, for instance as your salary increases, you have a family or approach your retirement,” he says.
“This review should ideally take place once a year in consultation with a trusted financial advisor, who can guide you in selecting the right funds for your individual needs. This advisor will also be able to coach you against making emotion-led investment decisions, and answer any questions you may have about your investments.”

Investment tips for kicking your savings into action in 2018

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It’s time for both the diaspora and Africans on the continent to rethink how we work together.
By Nnamdi Oranye
When I travel abroad, I often have meetings with Africans who are now living and working outside of the continent. As fellow Africans, we end up chatting about where we are from and they reminisce about the countries they have left.
When they learn about my work, and usually why I’m travelling, it always leads us to the same point. They are curious about development in Africa and how they can participate in it. Usually, they are unaware of how successful African innovation and technology is, and who the key players are. They would’ve heard about Google and Bill Gates but not about their fellow Africans who are achieving great success. These encounters confirm the relatively dormant role the African diaspora play in Africa’s innovation development.
That’s why I want to present an opportunity for the African diaspora to participate in Africa’s growth, whether or not they return to the continent.
<h4>Noteworthy success stories unknown in the diaspora</h4>
More needs to be done to connect what is happening in Africa with those that have left it. In turn, those that are inactive in the African diaspora need to be connected to their active counterparts. It seems incongruous that noteworthy success stories in Africa are unknown to the African diaspora. Why are many of the diaspora so disengaged from what is already happening in their homeland? If Mark Zuckerberg is investing 24 million US dollars into Andela (a Lagos-based software engineering start-up), then he must think Africa is worth something.
As the spotlight refocuses, and presents African tech in the correct light, it’s my hope – and the hope of many others &#8211; to see both the historical and contemporary African diaspora moving beyond simply sending remittance home. The diaspora has skill sets and learned expertise to contribute significantly. Moreso, the diaspora can also invest financially. All this can bring tremendous momentum to what it is we’re doing here.
<h4>Contributions by African thought-leadership</h4>
I think that we haven’t properly tapped into this, especially in light of today’s technological innovations. You don’t need to be based in Africa to contribute code or strategy or even just thought-leadership. The diaspora can contribute in ways we’re not imagining yet. I speak about this in great detail in my new book, “Taking on Silicon Valley: How Africa’s Innovators Will Shape Its Future.” There is much here we need to rethink and action.
It may surprise you to learn that the problems Africa faces provide an optimal breeding ground for innovative technology, and realistic investment. Nigeria, Kenya, Ghana, South Africa, and even Ethiopia, have sustained tech industries for enough time to prove that African tech is worth investing in. Within its continental boundaries, Africa is not an oversaturated market. The narratives coming out of Africa need to entice and incentivise the role the diaspora have to play.
<h4>Showcase innovators and successes</h4>
What’s imperative to all this is talking about our innovators and showcasing our successes. One such example is Kaakpema “KP” Yelpaala, a Ghanaian entrepreneur who now resides in Silicon Valley. He founded access.mobile in Uganda, which is a digital health company that provides affordable, and practical, tech solutions to the healthcare sector. KP was educated in the United States and graduated from both Brown and Yale universities.
His Ivy League education would’ve been advantageous in any field, but he chose to recognise the unique position he had as part of the African diaspora and invested in Africa. Utilising his network of influential colleagues and having access to funding, KP was able to identify the investment potential of a start-up in Uganda. Although access.mobile runs out of Uganda, he still lives in Silicon Valley.
<h4>access.mobile&#8217;s technology sought-after in Africa</h4>
The success of access.mobile is that it is now developing into other countries besides Uganda, and the technology it has developed is sought after for other emerging markets. This is the role the African diaspora can play in Africa, yet why do we find the media so silent about KP and the role he is playing? Why are we not talking more about this?
KP and access.mobile are not an isolated example. Neither is the methodology here the only approach. Starting a business is not the only way to invest in African tech. If you look at the spectrum of Africans who are involved with development in Africa, it is very impressive. Surely there are many opportunities the African diaspora can tap into?
In an interview with Almaz Negash (founder of the African Diaspora Network) on The Global Start-up Movement Podcast, Andrew Berkowitz asked her: “What is the best way for a country to go about engaging with their diaspora?” Negash (who is from Eritrea but resides in Silicon Valley) explained that for the African context, there is a problem of perception.
<h4>Romanticised view of Africa</h4>
The African diaspora has an over romanticised view of Africa and, therefore, there is no urgency or compulsion to take active steps to join in its development. She suggests that the best way for Africa to engage with its diaspora is to expose them to the realities of what is taking place.
I would extend this thought and say that we need to present the correct perspective of African innovation in Africa. We need to platform who those in the African diaspora are that have joined in Africa’s development. We need to platform those who are doing an amazing job on the ground here in Africa. Exposing the realities of Africa to the diaspora includes emphasising the way in which Africa is succeeding, against all odds. This is not blind optimism but is based on the extensive collective of African innovation that we have.
<h4>Unique influence of Africa&#8217;s diaspora</h4>
If we look at how KP has changed a traditionally stagnant sector in Africa through access.mobile, in a way that policy and infrastructure have not allowed, it demonstrates the unique influence the African diaspora have. In the case of M-PESA, a more overt example, it too superseded a sector that for decades had been unmovable. As it now enters the European market, it is no longer a tool that was just good for Africa, it changes the way innovation is viewed on the continent.
The benefit at this juncture in time is the growing optimism there is in African innovation. The African diaspora have an opportunity to utilise their influence because there is already evidence it is working.

Op-Ed: Rebooting the African Diaspora’s Role in Africa

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It’s the second day of the World Economic Forum in Davos and Nigeria&#8217;s Minister of Industry, Trade and Investment, Okechukwu Enelamah, joins CNBC Africa to discuss his expectations and how Nigeria can attract foreign direct investments.

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investment

OpEd: Why financing Africa’s energy infrastructure is a major opportunity for investors

INFOGRAPHIC: Reasons to invest in South Africa

This South African media giant plans to invest $315 million in technology expansion

This is what Sanlam has achieved in its 100 years of investing in Africa

Reviewing Nigeria’s tax reforms

Marriott International plans to expand in Africa by 50 percent in the next five years

#AfricaInvestmentForum: A Marketplace Coming To Africa

Why Ethiopia and Somalia are jointly investing in four seaports on the Red Sea

IFC to invest $60 million in Bank of Africa to support SME lending in eight African countries

Mahindra Motors unveils assembly plant in SA

Top issues likely to face the global oil industry – Mohammad Barkindo

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