<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/12/45958587865_00ce052358_o-820x547.jpg" alt="" class="wp-image-413886" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/12/45958587865_00ce052358_o-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/45958587865_00ce052358_o-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/45958587865_00ce052358_o-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/45958587865_00ce052358_o-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/45958587865_00ce052358_o-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/45958587865_00ce052358_o-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Concept of healthy food- fresh vegetables</figcaption></figure>



Informal markets are one of the primary sources of food and nutrition for poor people throughout the developing world. Yet, for too long, these markets have been overlooked, underappreciated, and side-lined.&nbsp;



Lacking official support and resources and often wrongly perceived as unclean or unreliable, particularly by international observers, informal markets are instead being held back from fulfilling their high potential as a source of safe, affordable, and nutritious foods.



Ignoring the critical role informal markets can play, and indeed already are playing, could create an otherwise avoidable nutritional disaster for the hundreds of millions who rely on these markets in the global food system.&nbsp;



These informal markets, which range from street-side food vendors to small-scale retailers, offer a range of benefits to both buyers and sellers across the developing world in terms of health, nutrition, and livelihoods.&nbsp;



Yet major gaps in both recognition and investment mean governments are failing to capitalize upon these benefits, hurting those communities who rely upon informal markets in turn.&nbsp;



With more investment and research, informal markets can become a greater force for good for the most vulnerable in low- and middle-income countries and assume a more significant positive role in the food systems of the future.&nbsp;



In building these future food systems that are accessible and equitable for all, the critical role that informal markets can play cannot, and should not, be overlooked.&nbsp;



To begin with, governments should acknowledge the important role of informal markets and adopt a collaborative, less confrontational approach towards them. These informal markets play a key role in providing food security and jobs for the poor, yet governments often overlook these contributions.&nbsp;



For instance, some <a href="http://ebrary.ifpri.org/utils/getfile/collection/p15738coll2/id/131091/filename/131302.pdf" target="_blank" rel="noreferrer noopener">70 per cent</a> of urban households in low-income neighbourhoods of African cities regularly buy food from informal street vendors, with these vendors capable of providing more competitive prices than those of larger, chain retailers, which may often be out of reach for many.&nbsp;



Likewise, with the informal economy accounting for up to <a href="http://ebrary.ifpri.org/utils/getfile/collection/p15738coll2/id/131091/filename/131302.pdf" target="_blank" rel="noreferrer noopener">72 per cent</a> of non-agricultural employment in Africa and being a key employer of women in particular, governments have enormous opportunities to “formalize” the informal economy. This would then allow governments to collect tax that is currently slipping through the nets, removing the burden of bribes and the multiple, overlapping taxes that informal markets are often overly and wrongly burdened with.&nbsp;



Secondly, governments should aim to provide the technology and finance these markets need to become safer and more successful. Not all informal sellers sell unsafe food – and for those that might, this is more due to a lack of technological or financial capability, not a lack of care.&nbsp;



Informal food markets would not only benefit from access to more obvious technologies like clean water or refrigeration but also from digitalization.&nbsp;



For instance, <a href="https://www.solidaridadnetwork.org/news/farmer2market-puts-technology-in-hands-of-south-african-farmers/" target="_blank" rel="noreferrer noopener">Farmer2Market</a> and <a href="https://farmbizafrica.com/market/2850-mkulima-bora-app-connects-more-than-5-000-farmers-to-consumers-directly-eliminating-brokers" target="_blank" rel="noreferrer noopener">Mkulima Bora</a> are but two key examples of digital applications developed over the past few years that can be of service to informal markets, making food value chains more efficient, reducing food losses, and increasing revenues for farmers, distributors, and food businesses.&nbsp;



Finally, governments should also build the capacity of informal markets through engaging and sharing information. To maximize their potential benefits, governments need to work with informal sellers to ensure that they learn about, and adopt, the best hygiene practices and benefit from the business opportunities that selling safe and quality food brings.&nbsp;



For instance, after a short period of training informal dairy sellers in Nairobi, Kenya, on dairy business and milk safety as part of the “<a href="https://www.ilri.org/research/projects/moremilk-making-most-milk" target="_blank" rel="noreferrer noopener">MoreMilk</a>” project, small retailers in the city started using simple on-the-spot milk tests to check the quality of the milk their suppliers delivered to them.&nbsp;



These new methods forced suppliers to improve the quality of the milk they were supplying to sellers, ultimately empowering vendors to sell higher quality products to happier and more loyal customers.



With Africa’s population potentially <a href="https://www.economist.com/special-report/2020/03/26/africas-population-will-double-by-2050" target="_blank" rel="noreferrer noopener">doubling by 2050</a> and its urban population set to <a href="https://www.weforum.org/agenda/2020/01/the-children-s-continent/" target="_blank" rel="noreferrer noopener">triple</a> in the same timeframe, the need to tackle the triple challenge of poor diets, ill health, and unemployment will be more pronounced than ever.



It’s crucial that governments help, not hurt, informal markets and also recognize their status as dynamic, efficient, and scalable solutions to these pressing challenges.



With the right set of policies, we can help these informal markets to achieve the best possible role in the world’s future food system.



Silvia Alonso, Senior Scientist Epidemiologist, International Livestock Research Institute (ILRI)

Concept of healthy food- fresh vegetables

Why informal markets deserve more credit in a nutritious global food system

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="570" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/The-prevailing-cloud-image_-Kabelo-Makwane-Managing-Executive-for-Cloud-Hosting-and-Security-at Vodacom Business.-820x570.png" alt="" class="wp-image-413648" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/The-prevailing-cloud-image_-Kabelo-Makwane-Managing-Executive-for-Cloud-Hosting-and-Security-at Vodacom Business.-820x570.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/The-prevailing-cloud-image_-Kabelo-Makwane-Managing-Executive-for-Cloud-Hosting-and-Security-at Vodacom Business.-300x209.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/The-prevailing-cloud-image_-Kabelo-Makwane-Managing-Executive-for-Cloud-Hosting-and-Security-at Vodacom Business.-129x90.png 129w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/The-prevailing-cloud-image_-Kabelo-Makwane-Managing-Executive-for-Cloud-Hosting-and-Security-at Vodacom Business.-768x534.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/The-prevailing-cloud-image_-Kabelo-Makwane-Managing-Executive-for-Cloud-Hosting-and-Security-at Vodacom Business..png 1050w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Kabelo Makwane, Managing Executive for Cloud, Hosting and Security at Vodacom Business.</figcaption></figure>



It was nearly a decade ago when cloud adoption started gaining momentum. Today, it’s mainstream, which makes the 30% year on year Vodacom Business’ cloud services growth unsurprising. During a discussion on the cloud adoption at CNBC Africa’s Future of Work summit in October, fellow panellist Robin Fisher of Salesforce hit the nail on the head. In describing today’s business environment, he said we’ve entered the era of a “cloud-first, work-from-anywhere, digital headquarters (HQ)”, in which the office is now essentially in your pocket, thanks to cloud-based tech.



This notion of the digital HQ is underpinned by the work-from-home (WFH) trend brought about by the pandemic. Pre-pandemic, only 26% of South African employees surveyed by Michael Page worked from home. Once lockdowns hit, the WFH figure skyrocketed to 79%.



Clearly, the pandemic has forever changed the way we work, with businesses having to migrate to the cloud to enable collaborative remote- or hybrid-work environments. In a recent webinar on the pandemic’s impact on cloud computing in the Middle East, and North Africa (MENA) region, the IDC shone a spotlight on this fundamental shift in IT sourcing models, confirming that chief information officers across companies are looking towards digitally automating processes and operations as a cost-saving measure. Cloud, notes the IDC, supports this automation.



<h2 class="wp-block-heading" id="h-building-agile-business-environments">Building agile business environments</h2>



The trend we’re seeing, as reiterated by Microsoft, is that most businesses are leaning towards a fast and affordable “lift-and-shift migration” to the cloud in an Infrastructure-as-a-Service (IaaS) deployment. In this simple lift and shift from on-premises infrastructure to data centres, local businesses are reaping the benefits with a streamlining of operations supported by a reliable, robust, always-on cloud network. Added to this boost in productivity is the fact that the cloud, by design, is more secure, not forgetting that it creates a force multiplier to access new, borderless markets, securely.



These local businesses are what Vodacom calls “future-ready” – agile organisations that have invested in their digital transformation to meet the demands of 2021 and beyond. Our research shows that nearly 10% more businesses deemed “future-ready” (within a larger group of all surveyed businesses) are prioritising a cloud-connected working environment. In fact, a defining feature of such businesses is that they’ve taken significant steps in new technology investments in cloud computing and cyber security amongst other enabling technologies.



While South Africa’s future-ready business owners have embraced the cloud, there’s one last piece of the puzzle where telcos, like Vodacom, can really bolster Africa’s economy off the back of cloud adoption to further boost local business success. Recently, Vodacom has started to bolster its Africa Datacentre foot-print and the deployment of African data centres. This, as noted in a Business Day article, is a promising move that will help build Africa’s capacity to store, process, secure and control its own cloud data. More partnerships like Vodacom’s Thus must happen, the article continues, if the continent is to realise “data sovereignty” – currently, the bulk of Africa’s data centres are foreign-owned. To this end, Vodacom will continue to heed the call by expanding its footprint of data centres on local soil. After all, our mission statement is to take Africa’s society Further Together. By developing African-owned data centres, and offering high-quality cloud-based business solutions in collaboration with global cloud hyper-scalers, Vodacom will continue to meet its purpose of connecting the next digital billion to the global digital economy.

The-prevailing-cloud-image_-Kabelo-Makwane-Managing-Executive-for-Cloud-Hosting-and-Security-at Vodacom Business.

The Prevailing Cloud-Adoption Trend for Future-Ready Businesses

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="565" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/driving-5G-Image_-Pavesh-Govender-Managing-Executive-for-Internet-of-Things-IoT-at-Vodacom-Business-1-820x565.jpg" alt="" class="wp-image-413684" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/driving-5G-Image_-Pavesh-Govender-Managing-Executive-for-Internet-of-Things-IoT-at-Vodacom-Business-1-820x565.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/driving-5G-Image_-Pavesh-Govender-Managing-Executive-for-Internet-of-Things-IoT-at-Vodacom-Business-1-300x207.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/driving-5G-Image_-Pavesh-Govender-Managing-Executive-for-Internet-of-Things-IoT-at-Vodacom-Business-1-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/driving-5G-Image_-Pavesh-Govender-Managing-Executive-for-Internet-of-Things-IoT-at-Vodacom-Business-1-768x529.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/driving-5G-Image_-Pavesh-Govender-Managing-Executive-for-Internet-of-Things-IoT-at-Vodacom-Business-1.jpg 1467w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Pavesh Govender, Managing Executive for Internet of Things (IoT) at Vodacom Business</figcaption></figure>



An interesting question was posed to me during a panel discussion on 5G technology at CNBC Africa’s Future of Work summit in October. Panel moderator Dan Atkins mentioned Amara’s Law, a theory put forward by American futurist Roy Amara: “We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.” Atkins was curious to know if I felt this law applied to 5G, the fifth-generation tech standard for broadband networks.



5G has been on Africa’s radar since its roll out in South Africa last year, but we are still quite far from widespread adoption. In fact, Quartz Africa, citing a recent Ericsson Mobility Report, notes the slow pace of adoption, with 5G coverage accounting for less than 1% of Sub-Saharan Africa’s mobile phone connections. The tech is still seen as emerging on the continent, so while I don’t think we’ve overestimated the impact that 5G can have, society may have overestimated the timing of this impact. We need a little more patience. In the long-term, 5G’s importance for spearheading activities that drive Industry 4.0 have certainly been underestimated. One only needs to look at the opportunities that smartphones opened locally, which wouldn’t have been possible without 3G – the same principle applies for 5G, but at a much larger scale.&nbsp;



There are boundless opportunities waiting to be unlocked, especially for businesses and the economy. However, Quartz Africa points out how deploying 5G is a costly endeavour for telecommunications providers while the cost of 5G-enabled handsets is a barrier on the consumer side. As such, the priority for both public- and private-sector players must be removing these barriers to 5G rollout and adoption so that we can unlock its value sooner.



<h2 class="wp-block-heading" id="h-supporting-industry-4-0-businesses">Supporting Industry 4.0 businesses</h2>



In the enterprise and industry context, the value of 5G is clear for those in the process of a digital transformation; a process that necessitates a holistic overview of operations. As such, connected, end-to-end tech solutions that digitise and automate processes, improve production, streamline collaboration, and centralise data will be key. Underpinning the success of such solutions? Robust, secure, reliable, and scalable network connectivity. This is what 5G offers.



I have no doubt that 5G will quickly become the gold standard at enterprise level, thanks to its low latency and high throughput with speeds up to 10 times faster than 4G. It stands to reason that, as businesses rely more heavily on automation and the Internet of Things (IoT) to transform daily operations, they will turn to 5G to enable this. The simple fact is that existing network infrastructures were never designed to support the real-time delivery of large volumes of mission-critical video and data that drive autonomous, digitised systems. Understanding this reality, Vodacom Business took a proactive approach, creating a&nbsp; 4G LTE/5G-enabled Mobile Private Network (MPN) that provides the lower latency and higher quality of service needed for future-thinking companies to leverage next-gen digitisation.



The MPN is an attractive application of 5G technology in that it’s a dedicated, bespoke business network that enables new applications, while supporting companies’ existing business-critical services with secure, scalable, and “always-on” connectivity. This local network overlay serves as an alternative to WIFI however, it differs from a public mobile network by providing private reserved coverage that is subject to agreed performance and local, protected data flow. To summarise, my colleague Chris Allen described it best as a “mini-5G network built to cover a specific location, where it’s able to deliver better service with more control and security.” When combined with edge computing, MPN can support immediate responses and decision-making in ground-breaking ways.



<h2 class="wp-block-heading">5G-Powered Innovation</h2>



There are boundless cross-industry use cases for 5G technologies such as the MPN, from in sensor-data tracking to video surveillance and analytics. Another interesting application that has seen incredible innovation across the globe is real-time control of autonomous guided vehicles, drones, and robots. Announced on 26 October, Chinese start-up QCraft has just deployed the country’s first 5G-enabled autonomous bus in the city of Wuxi, to bolster its ride-hailing fleet of smart, unmanned vehicles. The company explained how fast 5G networks allow the “driverless bus to receive information regarding traffic and road conditions in real time.” Mann, another innovative start-up, based in Ireland, partnered with a telco to put autonomous 5G-driven drones to use in faster, greener food delivery from restaurants to local customers within three minutes of collection. Expert remote assistance during surgery is another area tackled, with 5G-run augmented-reality tech powered by Spanish telco Telefónica used to connect a surgeon in Japan, in real-time, to a doctor performing surgery in Málaga.



These examples show how 5G can scale innovation from pockets of deployment to company-wide operations. There is world of opportunity that 5G brings if we leverage partnerships to speed up network rollout to drive business success in exciting, new ways.

driving 5G Image_ Pavesh Govender, Managing Executive for Internet of Things (IoT) at Vodacom Business 1

Driving 5G Adoption to Open the Door to Business Innovation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="365" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/internet-g208381f09_1920-820x365.jpg" alt="" class="wp-image-413546" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/internet-g208381f09_1920-820x365.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/internet-g208381f09_1920-300x134.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/internet-g208381f09_1920-160x71.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/internet-g208381f09_1920-768x342.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/internet-g208381f09_1920-1536x684.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/internet-g208381f09_1920.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Photo: via Pixabay</figcaption></figure>



In a recent report, the International Criminal Police Organisation, otherwise known as INTERPOL,&nbsp;<a href="https://www.interpol.int/en/News-and-Events/News/2021/INTERPOL-report-identifies-top-cyberthreats-in-Africa" target="_blank" rel="noreferrer noopener">provided insight into cyber-crime in Africa</a>. Remarkably INTERPOL found that South Africa has the third-highest number of cyber-crime victims in the world, at a cost of R2.2 billion a year.



For too long, online scams, extortion and business emails being compromised have plagued the country. Everyone knows the stories &#8211; criminals tricking individuals in to revealing personal or financial information, corporate systems being hacked, and the blocking of vital computer systems at public institutions and infrastructure such as hospitals, with a demand for money to restore working order.



The data shows that the scale of cyber-crime across Africa is such that it has become one of the most prominent challenges to the ease of doing business, and ultimately economic development. In South Africa, there has been a phenomenal&nbsp;<a href="https://businesstech.co.za/news/it-services/531990/south-africa-under-cyber-attack-interpol-reveals-top-threats-in-south-africa/" target="_blank" rel="noreferrer noopener">increase in mobile banking application fraud</a>&nbsp;and as a country, we are estimated to suffer 577 malware attacks an hour.



It is time to get smart and use legal means and enforcement to protect citizens against cyber-crime. Given that the problem transcends national borders, the solution must be multinational, requiring greater international co-operation. Having served as the South African Permanent Representative at the United Nations in Geneva and later as Permanent Representative of South Africa at the United Nations in New York, I have great faith in the power of governments to unite and work together to solve collective challenges.



Throughout&nbsp; my tenure at the United Nations, New York, and in particular during South Africa’s two year term on Security Council (2019-2020) as well as when one was the President of the United Nations Security Council&nbsp; in October 2019 and December 2020, one realised the importance of new ideas ,breaking down geo-political divides and ensuring that every nation had a powerful voice, was evident. Problems could be solved with collective willpower. The threat posed by cyber-crime is no different, and the international community must strengthen the tools at the disposal of national governments.&nbsp;



The enactment of&nbsp;<a href="https://issafrica.org/iss-today/south-africa-lays-down-the-law-on-cybercrime#:~:text=In%20summary%2C%20cybercrime%20is%20now,forgery%2C%20fraud%20and%20extortion%20online." target="_blank" rel="noreferrer noopener">new legislation in South Africa</a>&nbsp;earlier this year has been a good first step that&nbsp; signalled the government’s intention to get tough on this crime. It saw the introduction of a clear definition for what constitutes cyber-crime – the lack of which has previously hampered investigations and prosecutions of internet-based crimes. However much more is needed in terms of international co-operation and collective action.



The next move should be increased knowledge sharing between nations with far greater expertise and experience in handling cybercrime. INTERPOL has taken some measures in this regard, launching in May 2021&nbsp;<a href="https://www.interpol.int/en/News-and-Events/News/2021/INTERPOL-launches-initiative-to-fight-cybercrime-in-Africa" target="_blank" rel="noreferrer noopener">a new cybercrime operations desk</a>&nbsp;with funding from the UK, helping 49 African countries. However much more is needed in order to facilitate international co-operation.



This should start with INTERPOL, working to support its constituent members to combat cybercrime, and, as one candidate for the upcoming&nbsp;<a href="https://www.thenationalnews.com/opinion/comment/2021/09/02/why-i-am-running-to-be-interpols-next-president/" target="_blank" rel="noreferrer noopener">Presidency of the organisation has said</a>, criminals are outpacing law-enforcement agencies with the adoption of the latest technologies.



Dr Ahmed Naser Al-Raisi, the UAE’s candidate for the Presidency, has signalled his intent to integrate cutting-edge technologies into INTEPROL’s operations, and enhance the exchange of information through databases. This can only be a good thing in the global fight against cybercrime. Should he be elected, he has also suggested that he will put ‘Africa at the heart of his agenda’, a clear reason why African nations should look to support him at the upcoming General Assembly in Istanbul.



The second step must be increased diplomatic and multilateral efforts. Given the impact on South Africa of cyber-crime, we should be leading the conversation. The world has recently come together to work towards reaching solutions to the challenges posed by climate change at COP 26 in Glasgow, and we should in a similar way be creating a global forum to address cyber-crime.



Such efforts must include those states such as Russia that have an important role to play and a recent move to exclude the country from a&nbsp;<a href="https://www.reuters.com/world/russia-excluded-30-country-meeting-fight-ransomware-cyber-crime-2021-10-13/" target="_blank" rel="noreferrer noopener">30-country meeting to discuss ransomware</a>&nbsp;and other cyber crime was a mistake.



If the world is serious about getting tough on cyber-crime, the only route forward is through greater international co-operation, that includes a strong African voice.



By Jerry Matthews Matjila, former Permanent Representative of South Africa to the United Nations

internet-g208381f09_1920

International co-operation should be at the heart of the fight against cyber-crime

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/7337652668_52d4478835_o-820x545.jpg" alt="" class="wp-image-413488" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/7337652668_52d4478835_o-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/7337652668_52d4478835_o-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/7337652668_52d4478835_o-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/7337652668_52d4478835_o-768x510.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/7337652668_52d4478835_o-1536x1020.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/7337652668_52d4478835_o-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Maize under conservation agriculture in Malawi. Photo: via Flickr</figcaption></figure>



With more than a million people facing hunger, the&nbsp;<a href="https://news.un.org/en/story/2021/06/1094632" target="_blank" rel="noreferrer noopener">famine in southern Madagascar</a>&nbsp;this year was driven largely by climate change.



And yet research shows that this will only be one of many around the world to be directly linked to higher temperatures, with up to&nbsp;<a href="https://cgspace.cgiar.org/bitstream/handle/10568/110918/OneCGIAR-Strategy.pdf?sequence=6&amp;isAllowed=y" target="_blank" rel="noreferrer noopener">600 million people</a>&nbsp;to become undernourished by 2050 if warming exceeds 2°C.



Many of the world’s more than 500 million smallholder farmers, especially across developing regions, are already struggling to adapt to these dramatic changes that will&nbsp;<a href="https://www.ipcc.ch/assessment-report/ar6/" target="_blank" rel="noreferrer noopener">only worsen</a>&nbsp;as warming continues.



Millions of&nbsp;smallholder farmers lack access to improved crops that have been increasingly bred to tolerate conditions like heat, droughts, floods, and less predictable rainfall.



If more widely adopted, these higher-quality and more resilient varieties would increase food security for millions of families, particularly those in more climate-vulnerable regions.



Yet, breeding climate-resilient crop varieties alone is only part of the solution. Development partners must also help to build or support networks that ensure improved seeds reach farmers who need them by making them available, affordable, and accessible.



Estimates suggest that an investment of USD$20 million per year in these ‘<a href="https://www.cgiar.org/initiative/06-seedqual-delivering-genetic-gains-in-farmers-fields/" target="_blank" rel="noreferrer noopener">seed systems</a>’, would not only increase the supply of much-needed high-quality seeds by 50 percent in six targeted climate-vulnerable countries, but would also create tens of thousands of jobs in seed and related businesses, including for women and young people.



And to most effectively prepare for the impact of climate change, this investment must be directed towards those varieties and crops we know can withstand the increasingly unpredictable changes we are seeing around the world.



Cassava, for instance, is a hardy staple root crop across Africa that is vital to both food and economic security for the poorest smallholders, and yet yield in countries like Nigeria has remained low, at less than 10 tons per hectare, for a lack of quality seed material.



Traditional agro-dealers rarely sell planting material and free distributions by government agencies or partners can be unreliable, leaving some of the most resource-poor farmers without the means of producing food.



But by investing in and establishing seed enterprises that sell high-yielding cassava stems, it is possible to create a pipeline of quality and resilient planting material that is accessible to farmers who most need it.



Such an&nbsp;<a href="https://www.iita.org/news-item/project-to-build-sustainable-cassava-seed-system-in-africa-gets-new-phase/" target="_blank" rel="noreferrer noopener">approach</a>, led by the CGIAR’s International Institute of Tropical Agriculture (IITA), has shown success in Nigeria, where 150 such enterprises were launched to produce cassava seeds certified by government agencies.



A similar approach is being used in Tanzania, where more than 600 cassava seed entrepreneurs have established successful small-scale businesses selling certified seed of high-yielding disease-resistant varieties. This is helping to tackle the devastating cassava brown streak virus disease whose effects have been exacerbated by climate change impacts.



Meanwhile, investing in seed development can also make a positive difference for the incomes of many of the world’s most vulnerable farmers. For example, in the aftermath of a maize harvest failure in&nbsp;<a href="https://blog.ciat.cgiar.org/scaling-success-leading-change-with-the-syngenta-foundation/" target="_blank" rel="noreferrer noopener">western Kenya in 2012</a>, a US$1 million investment in seed production of an improved bean variety led to more than US$3 million in revenues within just three years, and allowed nearly 170,000 farmers in the region access to higher-performing and more resilient seeds.



However, to ensure investments in climate-smart varieties are successful, scientists developing those varieties need to understand exactly which traits and characteristics farmers and consumers need, so that seeds can match farmers food needs as well as market demand.



Furthermore, farmers currently upgrade the crop varieties they grow on average once every 14 years. But if we are to meet the pressing demands of climate change and hunger, new business models are needed to cut this timeframe to at least once every decade, helping farmers to produce more efficient and resilient crops, sooner.



Finally, many farmers are wary of adopting new crop varieties given each planting season may be their only opportunity in a year to earn enough to feed their families and send their children to school. Research shows that better seeds can bring a return on investment, but we urgently need to help farmers minimize the risks and support them in making these upgrades for the better.



Ultimately, investment from the public and private sectors will help farmers secure new, more productive, and more resilient planting materials in a lower risk environment. This investment will be crucial if we are to address the world’s dual hunger and climate crisis.



With the demands of climate change and a growing population here to stay, investment in better seeds for farmers is a fast-track path we can take to climate-proofing our future food systems.



Ian Barker, PhD, Program Director, CGIAR International Potato Center



James Legg, PhD, plant virologist, CGIAR International Institute of Tropical Agriculture

Maize under conservation agriculture in Malawi

Climate change is triggering a hunger pandemic. Better crop varieties for farmers are key to the solution.

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/06/5467804950_7daf685c3e_b-820x615.jpg" alt="" class="wp-image-405681" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/06/5467804950_7daf685c3e_b-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/5467804950_7daf685c3e_b-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/5467804950_7daf685c3e_b-107x80.jpg 107w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/5467804950_7daf685c3e_b-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/5467804950_7daf685c3e_b.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Revenue is vanity, profit is sanity… but cash is king.



Until you have run your own business or been tasked with managing the financial affairs of a high-growth entity, it will be hard to get a true appreciation of this oft-repeated business mantra. The events of 2020 have highlighted the reasons why vanity metrics in your business count for nothing and why you need the right tools in place to ensure you are measuring the right elements.



With COVID-19 disrupting many of the traditional banking channels &#8211; including in-branch networks – having access to technology and the right banking partner has often proven to be the difference between success and failure for businesses on the continent.&nbsp;



As a bank, we are constantly being challenged by our clients to develop and rollout integrated digital solutions that can help them do more business, more efficiently and across multiple technology channels including mobile phones and tablets.



The rapid adoption of our Absa Access solutions appears to be a sign that we are on the right track – we are not just building technology for the sake of technology but rather developing tools that solve real-world problems to address the rapidly evolving business environment.&nbsp;



Cash management is a perfect example: The lifeblood of every organisation is its ability to understand its financial position at any point in time and this includes understanding and efficiently managing its own cash conversion cycle (CCC). All the invoicing in the world counts for nothing if you are unable to convert it to cash in a cost-effective manner.&nbsp;&nbsp;



Absa Access offers key solutions in optimising our customers’ Cash Conversion Cycles starting with simplifying the bill receivables process for corporates. A corporate can now offer their clients the ability to pay their bills on our platform which decreases bill reconciliation challenges and improves liquidity management.



Cross-border trade on the African continent is expected to boom in the coming years as new trade zones are introduced and it becomes easier to move money and goods between African countries. As a forward-thinking bank, we have focused on developing solutions to assist companies which import products from suppliers in other countries and need simple solutions to make the required payments. Absa Access enables clients to initiate trade-related transactions, such as Letters of Credit to international suppliers, to apply for Foreign Exchange and to make international payments all on the same platform.



This integrated offering enables Absa corporate clients to have greater visibility and control of their financial obligations at any time and from anywhere, a proposition that is superior to the brick-and-mortar option that has dominated banking for decades.



Corporate customers have taken this adoption of technology one step further, asking their bank to integrate into their systems to harness efficiencies and enhance their control environment.&nbsp;



Digital platforms provide banks with a far more efficient way to scale.&nbsp; Banks are investing in the architecture needed to host more services in order to reduce their own operating costs, while ensuring they cater for clients that expect more services to be provided online.&nbsp; Failure to do so by banks with longstanding heritage and legacy, could mean losing customers to FinTech companies or new digital-first banks.



At Absa, we have embraced this innovative path and have focused a lot of effort over the last couple of years on finding solutions that put customer experience at the heart of our transformation plans.&nbsp;The approach we have followed includes some key partnerships, as well as investment in strong technology skills for in-house developed technology.



One of the key items that many in digital banking circles are debating is whether the shift to digital channels is a pandemic inspired or motivated trend or whether it will become a more permanent part of banking interaction with corporate clients.



In February 2021, consulting house Accenture released a report following 47000 interviews with consumers globally and there was a telling quote from Jigyasa Singh, Technology Managing Director for Accenture Africa where he notes:



&#8220;The pandemic-inspired increase in digital engagement is a double-edged sword for banks. While it has allowed them to serve customers efficiently throughout the pandemic – and advanced their digital strategies by up to five years in some cases – it has pushed them to launch solutions that are functionally adequate but devoid of emotion. To forge strong customer connections, banks must reimagine the digital services they provide and make those connections more personal and relevant.&#8221;



This is where we believe that Absa and our suite of digital products intersect perfectly with our skilled banking and sectoral specialists. We have been able to couple innovative technology solutions while using big data analytics to provide insight to our corporate clients around their business and customer behaviour.  We can take a business challenge and then provide an integrated technology and finance solution that fits the business requirements.  The boom in mobile telecommunications has resulted in the digital banking revolution in Africa being more pronounced, and we at Absa believe that we have developed solutions that don’t pander to vanity metrics but rather allow you to make better informed decisions about your business.

Zimbabwe Dollar

Africa driving the banking revolution

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="582" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/For-You-App-Shot-820x582.jpg" alt="" class="wp-image-413364" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/For-You-App-Shot-820x582.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/For-You-App-Shot-300x213.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/For-You-App-Shot-127x90.jpg 127w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/For-You-App-Shot-768x545.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/For-You-App-Shot-1536x1090.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/For-You-App-Shot-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



We recently made headlines by powering a solution that delivered the first personalized mobile banking experience to customers in the MEA region. This is significant because it was initiated at the height of the COVID-19 pandemic, out of a recognition that the time was now to advance digital transformation plans to meet consumers’ digital banking needs. It is also a testament to how consumers are the ultimate winners when banks and fintech companies work together in a partnership ecosystem.



So, what does the MEA region’s first personalized mobile banking experience mean to customers? First and foremost, it means that their data is finally being used to serve them in banking much like it is already leveraged for better experiences by big tech companies like Google and Netflix. With AI and machine learning, we are able to contextualize a customer’s data (while preserving their privacy) so that it delivers banking and retail recommendations they can actually use. By anticipating the individual needs of a customer, the mobile banking app is transformed into a destination for relevant information, service and advice, on a daily basis or several times a day.



Customers have access to a personalized dashboard via the mobile app that also allows them to opt-in to share their location and receive tailored, relevant offers and experiences in real-time from nearby merchants. Customers can also set personal saving goals as well as monitor and track their progress through gamified experiences. The platform engages customers with timely nudges and visual reminders to assist them in achieving their savings goals, thus encouraging and enabling their financial well-being.



Working within a fintech partnership ecosystem, banks are able to deliver end-to-end personalized banking, giving them the ability to know their customers and orchestrate a set of tailored experiences that deliver value and build trust and loyalty. Personalization in banking is a win-win for banks and their customers and represents the future of banking.



Amir Yazdanpanah &#8211; Managing Director MEA, Flybits

For-You-App-Shot

Personalization is a Win-Win in Digital Banking

<div class="wp-block-image"><figure class="alignleft size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/Deshni-Harricharan-756x800.jpeg" alt="" class="wp-image-413358" width="336" height="354"/><figcaption>Deshni Harricharan, National Sales Manager</figcaption></figure></div>



The pandemic has forced business leaders to rethink almost every part of their operations. Various challenges and disruptions to business continuity arose almost overnight, and many have are now relying more heavily on technology to develop new offerings, operate remotely, and deliver goods and services through digital channels.



Digital transformation, which already topped the agenda for most CIOs before 2020, became a key enabler of resilience. Those already on their digital journeys had their resilience tested to its core during the early stages of the pandemic. Those who weren’t, found themselves under tremendous pressure to accelerate their journeys, or risk becoming obsolete.



In some cases, businesses found that their technology infrastructure was inadequate, and they struggled to respond with the required flexibility, while others were able to pivot their business models to unlock broader opportunities in a constrained business environment. Technology can help organisations overcome both present and future challenges, enabling innovation and operational continuity, especially during a global crisis. So, what has the pandemic changed, and how can technology help businesses achieve resilience in the face of new challenges?



<h2 class="wp-block-heading" id="h-adjusting-to-the-new-normal">Adjusting to the new normal</h2>



When the shift from business-as-usual to crisis management happened, businesses had no way of knowing that they would suddenly have to scale their digital infrastructure to be able to reach customers, enable employees to work remotely, and overcome various other challenges. Supply chain disruptions, a global shortage of resources, cashflow constraints, the unavailability of frontline staff, and gaps in continuity planning all presented significant risks to business continuity.



As organisations hastily tried to accelerate their digital transformation efforts to meet these new challenges with innovative digital solutions, they were also subject to greater cybersecurity risks. &nbsp;



Working remotely meant that distributed workforces were suddenly using their private networks, personal laptops, home Internet, and preferred applications to access their workplace’s corporate network, and with it, sensitive business data. However, this “bring-your-own-everything” trend meant a far wider attack surface, and malicious actors began to capitalise on this, targeting underprepared and unprotected businesses and employees, and making disaster recovery even more difficult.



This, coupled with an increased dependence on public cloud services, unsecured apps, and vulnerable virtual private networks (VPNs), saw entities of every size&nbsp;becoming more vulnerable to network intrusion, business email compromise, phishing, <a href="https://seacom.co.za/business-insights/your-it-network-under-ddos-attack-seacom-can-help-you-now/">DDos</a>, and social engineering attacks.



<h2 class="wp-block-heading">Resilience through technology</h2>



The technologies used during the move to working from home helped businesses remain operational. Most people with a laptop and an Internet connection made the transition seamlessly, and a slew of technologies such as VPNs,&nbsp; voice over Internet protocols (VoIPs), virtual meetings, cloud technologies, and collaboration tools enabled us to carry on as “normal”.



This taught us that technology can build resilience through innovation and flexibility, giving businesses the ability to operate during times of change with minimal impact on critical operations, and allowing them to be better prepared for future challenges. But achieving resilience is about more than just having the right tools and technologies; it is also about being able to recognise new challenges as they arise, and identify the technologies that can help solve them. This means that business leaders must have a good understanding of their existing technological infrastructure, its shortcomings, and how they can fix it.



With limited resources at their disposal, businesses need to ensure that they can rationalise which technology project they need to prioritise. Naturally, critical business operations need to come first, and employees need to be equipped with the right tools and guidance to support this shift in priorities. While cashflow constraints may mean that some projects may have to be put on hold, it is also important to know when to fight for additional technology investments that would accelerate recovery, improve business performance, or create new revenue streams.



<h2 class="wp-block-heading">Start with the foundation</h2>



The migration towards hybrid work models has resulted in increased network traffic and new usage patterns, which is why businesses need to equip their connectivity, security, and network infrastructure with modern capabilities. This will ensure that they have the technological foundation to support these new ways of working. Connectivity infrastructure has become the gateway to almost every business interaction today. Teams or Zoom, for example, are now essential communication and collaboration platforms. Several business processes and applications have moved to the cloud, and if businesses don’t have a plan in place, a sudden increase in network traffic can easily result in costly downtimes, poor application performance, or frustrating service delivery for online customers.



Businesses cannot undergo digital transformation without implementing strong security measures along every step of the way. With more employees working from more vulnerable home networks, security mechanisms, such as VPNs and access control, need to be present in every layer of a network.



<h2 class="wp-block-heading">A cloud-first approach</h2>



The pandemic has undoubtedly accelerated the migration towards the cloud, providing businesses with the convenience of accessing services and resources from anywhere, enabling remote collaboration between teams, and powering more innovative business functions. Organisations can push out workflows to improve employee productivity, make remote configuration changes, and offer customers self-service capabilities. <a href="https://seacom.co.za/media-centre/four-steps-successful-cloud-migration/">The cloud gives businesses the flexibility to scale their infrastructure up or down</a> – such as their bandwidth, storage, or computing capacity – to meet fluctuating demands, which often occur during a crisis.



A cloud-first approach has become the new normal, and has proven to be a valuable lifeline for many companies over the last 18 months. Because of the cloud’s flexible nature, this technology gives business leaders the confidence to meet both present and future challenges with the capacity to scale and operate remotely.



<h2 class="wp-block-heading">Preparing for the digital future</h2>



The pandemic forced many of us to rethink the way we do business, and it has challenged the established paradigm of the physical workspace and the way companies operate as a whole. Digital resilience is not only a cluster of technologies, strategies, policies, and practices that protect our ability to maintain, change, and recover in the event of a crisis. It has become a mindset that has taught us that businesses should not only invest in their remote work capabilities, but also look at their wider technological ecosystem to make wiser investment decisions that support resilience. The business world is on a steady track towards rapid digitalisation, and those who delay digital transformation will only be left behind.



Navigating the growing complexities of ever-changing technologies may seem daunting at times, and that is when businesses need to ensure that they are partnered with the right technology leaders to guide and support them. A good technology partner, <a href="https://seacom.co.za/">like SEACOM</a>, will have the industry expertise to understand a business’ unique requirements, and help achieve organisational resilience by building adaptable, future-ready technological infrastructure.

Deshni-Harricharan

Achieving business resilience through technology

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/NKOOYGKDSBP7NCA6VPA6PUGV64-820x547.jpg" alt="" class="wp-image-413155" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/NKOOYGKDSBP7NCA6VPA6PUGV64-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/NKOOYGKDSBP7NCA6VPA6PUGV64-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/NKOOYGKDSBP7NCA6VPA6PUGV64-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/NKOOYGKDSBP7NCA6VPA6PUGV64-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/NKOOYGKDSBP7NCA6VPA6PUGV64.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A local casts his vote during the local government elections, at a farm in Alewynspoort, outside Johannesburg, South Africa November 1, 2021. REUTERS/Siphiwe Sibeko</figcaption></figure>



Following the local government election, the focus now is on the potential coalitions. In numerous municipalities, including five of the metropolitan municipalities, no party was able to achieve more than 50%, thus triggering an intense and potentially heated negotiation with regard to possible coalition governments at a local level.&nbsp; With the DA already having said that it will not go into a coalition with the ANC or EFF, it is possible that some municipalities will be unable to conclude coalition agreements necessary to ensure proper governance.



Yet coalitions are entirely unnecessary.



The Local Government: Municipal Structures Act provides for two types of government at a municipal level.&nbsp; The ultimate decision as to which type of government is utilised is made by the provincial minister responsible for local government.&nbsp; The first system of government is the one which has been employed by almost all municipalities across the country over the past couple of decades. This is the executive mayoral system.&nbsp; It is a system in terms of which the executive mayor is extremely powerful. In many ways, the executive mayor has more power at a local level than a premier has at provincial level, or the President has at national level.&nbsp; It is thus a winner-take-all system. Accordingly, when it comes to the negotiations with regard to coalitions, a huge amount of debate will need to take place as to who will serve as the executive mayor and how the executive mayor&#8217;s powers will be constrained to take into consideration the other parties in the coalition.&nbsp;



The executive mayoral system has proved to be highly politicised with numerous municipalities focusing more on issues of political debate and conflict than on their obligation to engage in service delivery, particularly with regard to electricity, water, waste and, to a certain extent, housing.&nbsp;



The Municipal Structures Act offers an alternative system of government which is far more geared towards co-operation between political parties and service delivery. This is the collective executive system.&nbsp; In terms of this system, the mayor is not an executive mayor and largely plays a ceremonial role. Power does not lie in the hands of the mayor, but in the hands of the executive committee.



The Municipal Structures Act provides that the executive committee must be composed in such a way that parties and interests represented in the council are represented in the executive committee in substantially the same portion they are represented in the council. A council can decide on an alternative mechanism, but that mechanism must still comply with the requirements in section 160(8) of the Constitution which stipulates that the different parties must be &#8220;fairly represented&#8221; on the executive committee.&nbsp;



The collective executive system will inevitably trigger a more co-operative approach when it comes to issues of service delivery. All the major parties in a council will be represented on the executive committee. They will meet regularly and be forced to work together. That assists in depoliticising the council and allowing the collective leadership to focus on service delivery, which should be an uncontentious agenda for all political parties. In hung councils there will no longer be a governing party and opposition benches because the main parties will all be represented in the leadership structure.



If the collective executive system is adopted, it will then be unnecessary for political parties to enter into complex and contested coalition agreements.&nbsp; Thus, for example, if one party got 40% of the vote, another 30%, another 20%, and another 10%, a ten-person executive committee would be represented on a 4, 3 ,2, 1 basis by those leading parties (assuming they adopt a strict proportional model). It will also lessen the influence of those small parties which got limited support in the election, but which can become kingmakers in coalition negotiations.



Municipalities and provincial governments should give careful consideration to shifting from an executive mayoral to a collective executive system.  No change in law is required. It simply requires a determination by the provincial ministers responsible for local government.

NKOOYGKDSBP7NCA6VPA6PUGV64

Coalitions at local government level can be avoided – there is an alternative

*This article was produced by the team at Signal Risk



On 04 November, talks between the government and the International Monetary Fund (IMF) began over Zambia’s sought after Extended Credit Facility (ECF). Engagements on the facility follow earlier &#8220;technical&#8221; discussions on Zambia’s fiscal policy which concluded on 01 October.



Great expectations



The talks come amid renewed confidence by both parties that a deal can be reached in the near future. In a webinar on 02 November, a bullish finance minister Situmbeko Musokotwane disclosed Zambia’s envisaged timeline with respect to the IMF deal and debt restructuring under the G20’s Common Framework. As per Musokotwane and other officials from his ministry, Zambia hopes to reach a staff-level or preliminary agreement with the IMF on a financing programme by the end of November, followed by a final approval of the programme by the IMF’s board by the second quarter of 2022. Thereafter, the government will proceed with debt restructuring, with a view to finalising an agreement with creditors by the third quarter of 2022.



Equally noteworthy, finance permanent secretary Mukuli Chikuba reassured investors on the same day that no creditors will be given preferential treatment – including domestic and Chinese lenders – easing long-standing concerns among bondholders and other multilateral and bilateral stakeholders.



Zambia’s bullishness was echoed by the IMF’s chief, Kristina Georgieva. Speaking on the sidelines of the COP26 summit in Glasgow, Scotland, on 03 November, Georgieva stated that she was “very optimistic” about reaching an agreement with Zambia. Underlying her optimism was Zambia’s “fantastic work in terms of debt transparency and engaging with creditors”. Nevertheless, the IMF official did stress that “we are not quite there yet” and that “more work was needed on financial assurances”.



Betting on the budget



Perceptions that Zambia has gone from kicking the proverbial can to picking it up are rooted in a directional shift by the administration of President Hakainde Hichilema. This was recently exemplified by the 2022 budget that was presented to parliament on 29 October by Musokotwane.



Central to the acceleration in growth and fiscal stabilisation forecasted by Musokotwane’s are cyclical factors and policy adjustments that the government has pledged to undertake. Key sectors such as tourism, retail, construction, agriculture and mining are set to rebound in the coming year following a coronavirus-induced slump and the reduction of constraints on internal and external economic activity.



This “organic” recovery will be supported by two crucial tax reforms: a reduction in the corporate income tax from 35 to 30 percent, and the reintroduction of the deductibility of mineral royalties from corporate income tax. The latter change has been long sought after by stakeholders in Zambia’s mainstay mining sector, which have complained of effective double taxation under previous regulations.



Finally, Musokotwane has pledged to restructure government subsidies – particularly in relation to fuel – however, a clear plan has yet to be presented. Nevertheless, the finance minister did note that factored into the budget and Zambia’s borrowing requirements is an impending USD 750 million Eurobond principal payment due in September.



The reactions



Unsurprisingly, reactions to the budget have been positive. In the financial markets, Zambia’s 2024 Eurobonds increased by 0.3 percent in price by the close of the day’s trade on 29 October. Shares for First Quantum Minerals – which is responsible for the bulk of Zambia’s copper output – also rose by 5.3 percent on the Toronto Stock Exchange according to the Bloomberg publication. In a media statement on 02 November, First Quantum expounded its bullishness on Zambia’s prospects. As per the company’s chief of government relations, Godwin Beene:



“this budget puts Zambia back on the global stage as a respected and competitive player in the mining sector. New and existing business will now need to be reassured of the security of long-term investments through further reform of the sliding scale of mineral royalties, VAT refund discipline and assurances of stability, that will result in increased investment, more jobs and more taxes through increased production.”



There was, however, some detraction of the budget by Zambia’s former ruling party, the Patriotic Front (PF). In a briefing on 03 November, PF vice president Given Lubinda dismissed the fiscal policy as a hoax, claiming that it is retrogressive, a breach of campaign promises, anti-poor and pro-capital.



Assessment



The 2022 budget is the latest affirmation of the incumbent administration’s commitment to economic and broader governance reform. It builds on several signals of intent made by President Hakainde Hichilema in his first two months in power, which have significantly bolstered confidence in his government and its ability to rescue Zambia from crisis, bridge the credibility gap with economic and political stakeholders, and ultimately steer the country towards a more stable and prosperous economic path. On the governance front, Hichilema has placed highly competent and respected figures in key economic portfolios, in the form of finance minister Situmbeko Musokotwane and central bank governor Denny Kalyalya. Hichilema has also facilitated the return of former finance minister Felix Mutati to the executive fold, who will oversee the increasingly important science and technology portfolio, and in effect, Zambia’s modernisation and digital transition. Policy wise, Hichilema has largely delivered on his pledge of transparency regarding the country’s debt profile by way of upward revisions to the debt stockpile, while the stipulated debt target – although ambitious – demonstrates his understanding of the need for consolidation. Particularly noteworthy in this regard is the apparent commitment to market-led growth (and consolidation). This is evident in a reduction in corporate taxes and the reintroduction of the deductibility of mining royalties. At face value, these measures may appear to shift the burden of consolidation away from companies and contribute to the widening of the deficit in the immediate term; however, investment and growth gains in the longer term may offset the direct revenue losses.



Despite the clear directional shift by the Hichilema administration, there is a greater chance that Zambia will only acquire its envisaged programme from the International Monetary Fund (IMF) in the first quarter of 2022. As stipulated by Zambian officials, the country is seeking a staff-level agreement. This will outline policy reforms and a medium-term economic framework in the ensuing discussions. Zambia’s commitment to the tenets of the accord will then precipitate a full agreement by the IMF board, which will then allow the country to pursue restructuring under the G20’s Common Framework. Sentiment that Zambia will only acquire a programme in early 2022 is further reinforced by remarks made by the IMF chief, who noted that “there still is work to be done”. Key shortcomings include a clear plan and commitment by Zambia to moderating subsidies and reducing its debt stockpile which – according to the fund – stood at nearly 120 percent of GDP in 2021. Zambia may also be pressured to undertake further tax reform, including a repeal of the sliding scale royalty regime – where rates fluctuate in accordance with market prices – and VAT. Contentions have also been raised over the size of Zambia’s deficit target, with some commentators noting that it is disproportionately low given spending and revenue projections. Nevertheless, current indications are that Zambia is willing and able to undertake the necessary changes that would ultimately result in the extension of an IMF programme. To assist in making the requisite policy adjustments, the IMF may grant Zambia a Staff Monitored Programme, a technical assistance scheme aimed at remedying policy shortcomings and realigning objectives with actual economic realities.



In the broader economy, Zambia is expected to continue to pursue reforms that stimulate inclusive growth. A focal point for this will remain the mining sector, where the government is expected to broaden reforms with the goal of unlocking a mooted USD 2 billion in investment, and repositioning Zambia as a choice investment destination; a mantle that it lost due to the policy mishaps of the former administration. Besides the above-mentioned tax changes, the Hichilema government may seek an amicable agreement in ongoing disputes, such as the long-standing tussle with Vedanta Resources, in the hopes of sending a positive signal to investors. Outside of mining, the new government is expected to promote investment and growth in sectors with a high employment yield, such as agriculture, construction, manufacturing, energy and tourism through various incentives. Such changes and generally pro-market orientation should maintain positive sentiment among portfolio and direct investors. This, in turn, is likely to lend to a generally stable Kwacha, modest performance in government securities, and modest capital inflows.



Despite objections by the Patriotic Front (PF), there are no tangible risks to the administration’s economic trajectory; nor is there any credible reason to suggest that Hichilema will shift from his reformist stance. The fact that the United Party for National Development (UNDP) does not have an absolute majority is a tail risk to Hichilema’s policy trajectory due to the fact that it its policy promulgation is vulnerable to being countered by the PF. However, the PF is itself divided, with several members calling for reform of the party to better compete with the UPND and to prevent it from becoming redundant. The UPND can also count on the endorsement of independent candidates, many of whom are ideologically aligned with the ruling cohort. Finally, the likelihood that Hichilema abandons his reform agenda appears slim at present. For one, the new president has maintained the same policy positions for the past decade, and simply refined them (and their framing) after losing to former president Edgar Lungu on two occasions. His persecution under Lungu may also dissuade the new president from pursuing a similar heavy-handed approach to governance. But most importantly, he appears cognisant of the small margin for error due to Zambia’s plight, and limited patience among expectant Zambians, foreign investors, and multilateral partners that have all backed his promise of fundamental change. If anything, Hichilema may opt for a consolidation path that limits the burden on consumers in order to avoid popular backlash. However, he appears unlikely to revert to the economic populism and authoritarianism that characterised former regimes in Zambia.

Zambia – Picking up the can

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/Burst-3-Earth-Justice_Article-Image-1-820x461.jpg" alt="" class="wp-image-413266" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/Burst-3-Earth-Justice_Article-Image-1-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/Burst-3-Earth-Justice_Article-Image-1-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/Burst-3-Earth-Justice_Article-Image-1-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/Burst-3-Earth-Justice_Article-Image-1-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/Burst-3-Earth-Justice_Article-Image-1.jpg 1022w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



More than ever, it is now or never. Climate justice is the defining imperative of our time. In southern Africa, climate change-induced vulnerability to drought is already a human rights crisis. Adapting to a new climate reality and reducing South Africa’s carbon footprint requires a whole-of-society response, says <a href="https://www.wits.ac.za/staff/academic-a-z-listing/f/tracy-lynnfieldwitsacza/">Professor Tracy-Lynn Field</a> from <a href="http://www.wits.ac.za/">Wits University</a> where she serves as the Claude Leon Foundation Chair in Earth Justice and Stewardship.



Extreme weather events &#8211; wild fires, hurricanes, flash floods and specifically in southern Africa, dire drought – have already taken hold, bringing a train of suffering in their wake.



The call for climate justice is a call for humanity to respond with respect, responsibility and reverence for the Earth that sustains all life &#8211; but are we listening? “We have to take care of our water resources as every drop is sacred,” says Field. “Everyone needs to get behind preparing for the climate crisis and putting solutions on a sustainable track, with a particular focus on water.”



<a href="http://www.wits.ac.za/">Wits University</a>&nbsp;is at the forefront of water research and development and is working with the&nbsp;<a href="http://www.uwc.ac.za/">University of the Western Cape</a>&nbsp;and the&nbsp;<a href="https://www.ed.ac.uk/">University of Edinburgh</a>&nbsp;in the UK in the form of the <a href="https://wits100.wits.ac.za/our-campaign/clf-water-stewardship-programme/">Claude Leon Foundation Water Stewardship programme</a>. The Water Stewardship programme of research, postgraduate supervision and advocacy is an inter- and transdisciplinary programme that tackles current and future water challenges, with the aim of finding solutions that will benefit communities in South Africa, and the continent.



The Foundation has generously funded a R15.7 million Water Stewardship programme. “Our aim is simple – to expand human freedoms while easing planetary pressures. The complex interplay between environmental problems and socio-economic hardships requires collaboration across traditionally separate disciplines such as Science and Law, between institutions in different countries, and it requires academe to interact more with society,” she explains.



<a href="https://www.wits.ac.za/staff/academic-a-z-listing/s/craigsheridanwitsacza/">Professor Craig Sheridan</a>, the Claude Leon Foundation Chair in Water Research, adds: “Life flows from water and water holds all life. Water is precious, an ever-flowing interface between terrestrial and aquatic ecosystems and the systems undergirding human well-being: food production, shelter, transport, energy, play, industry, and health. And yet water is not with all of us. Globally, among regions, between localities, water is a profoundly unevenly distributed resource and its scarcity prompts hardship, a loss of dignity, conflict, even death. These are some of the reasons why this research is so important in South Africa.”



Field speaks more of the imperative behind the Water Stewardship programme as she highlights what struck her in the IPCC 6th Assessment Report on the physical science basis of climate change, published in August 2021. “Most of the world will get wetter and warmer with one of the exceptions being our region, which will unfortunately be getting drier and hotter. This trend is already observable from the narrow avoidance of “Day Zero” in Cape Town, to there now being a national drought declaration in the Northern, Eastern and Western Cape – the worst drought in this region for 100 years.”



We should be holding every drop of water sacred, but a lot of our rivers are dying of filth. While this is a strong claim to make, it is true, she says. “Sewage is a major water pollution problem as the management of our water treatment structure is abysmal. There are 19 million people who depend on the Vaal, yet we are not managing this central life or death resource with the care it deserves. We have to face the real possibility of a Day Zero in Gauteng if this is not urgently addressed.”



She notes that South Africa has substantial water infrastructure that is not serving people. “There are two dams in Limpopo which, together, hold 750 million litres of water. Despite that, there are people living in the Sekhukhune District with no access to the water, as this water serves the mines.” This is a time, she says, to be clear that everyone in this country has a right to access sufficient water. We need leaders of integrity that can put this right at the top of the agenda.



With the social turbulence that a rapidly changing climate can induce, it will be critical to protect an open society and the integrity of democratic governance structures. A rights-based order must be protected, as authoritarian rule can easily get a foothold in crisis conditions. Some countries have already had a taste of that in their COVID19 response. “In South Africa, we need to armourplate our institutions to survive drought democracy,” she emphasises.



There are many exciting technical solutions in the field of renewable energy and water adaptation, Field enthuses. Scaling these up will require collective willpower and an aligned vision with immediate goals, together with action on the ground. The fear that time is running out is real, but fear has a paralysing effect. “We must nurture intersubjective hope that humanity can rise to this existential threat and believe that commitment, compassion and love – for each other and for the intricate and awe-inspiring web of life that sustains us – can carry us through.”



She cites the dynamic work around the Climate Justice Charter by <a href="https://www.wits.ac.za/staff/academic-a-z-listing/s/vishwassatgarwitsacza/">Dr&nbsp; Vishwas Satgar</a>. “This work, explains Field, “is an all-encompassing vision for a provisioned future for humanity that includes addressing food sovereignty as per Section 234 of the Constitution. We need this kind of vision as we not only explore but demonstrably put alternatives in place, and these actions need to be massively scaled up.”



She also mentions the work of Professor Craig Sheridan and <a href="https://www.wits.ac.za/staff/academic-a-z-listing/t/andrewthatcherwitsacza/">Professor Andrew Thatcher</a> in S’swetla. In this neighbourhood in the Alexandra township, three years of dedicated inter-disciplinary research on constructed wetlands for treating greywater (washing water) in unplanned settlements, is laying the foundation for an improved sense of well-being in these communities.



Other projects in the Water Stewardship programme include app-based potable water test-strips to promote access to the right to safe water in vulnerable communities; and supporting evidence-based legislative, political, and judicial decision making to protect South Africa’s strategic water source areas. A further project is focused on galvanising accountability mechanisms for system-level failures in South African water treatment plants.



Additional notable work is being conducted by Wits, for example on the issue of Domestic Sanitation by its School of Governance, through which a multi-disciplinary group is working&nbsp; for the next 18 months to align policy briefs on the matter. There are two beacons of hope in the sphere of localised Earth Justice and Stewardship, one being “positive sounds from Eskom around greening operations” and further opening of the renewables market. The sun has hardly been tapped into and if harnessed, can unlock new energy democracy. That said, we need to ensure that vested interests do not stop these renewable energy projects from taking off, she cautions. 



The second beacon of hope is the sense of democratic regeneration and solidarity that emerged in the wake of the civil unrest and looting that rocked South Africa in July 2021. This event showed that the vast majority of South Africans want peace, not anarchy, and sparked the rebuilding instinct of the nation.



COP26 is underway with high expectations circling around active outcomes from the forum. Yet as citizens we have a contribution to make to right the imbalance and right the future away from climate injustice. “Every degree to which we listen and act For Good counts towards how we will – or will not – claw back a state of environmental rebalance.&nbsp; The time for denial is over around all dimensions of climate change and we need to mobilise every resource in society,” concludes Field.



<ul class="wp-block-list"><li>Wits is an academic thought leader driving the global change agenda. In 2022, we celebrate 100 years of making change happen and look towards transforming the future. Find out more: <a href="https://wits100.wits.ac.za/">https://wits100.wits.ac.za/</a> </li><li>Find out more about Postgraduate Programmes in Law at Wits <a href="https://www.wits.ac.za/law/postgraduate-programmes/">https://www.wits.ac.za/law/postgraduate-programmes/</a>  </li></ul>

Burst-3-Earth-Justice_Article-Image-1

Wits for climate justice

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/50782991392_ee9fffe279_o-820x547.jpg" alt="" class="wp-image-413212" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/50782991392_ee9fffe279_o-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/50782991392_ee9fffe279_o-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/50782991392_ee9fffe279_o-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/50782991392_ee9fffe279_o-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/50782991392_ee9fffe279_o-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/50782991392_ee9fffe279_o-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A health worker preparing to extract a dose of vaccine from a vial. Photo via Flicker.</figcaption></figure>



New report warns of economic impact and increased risk of regional and global instability and calls for urgent action



A new report from the Tony Blair Institute warns that Africa’s lack of Covid-19 vaccines and the inequity between Africa and richer continents and countries the emergence of a ‘Great Divide’ in 2022, with serious implications for health outcomes, economic progress and political stability, both in Africa and globally. The report, ‘Africa Without Vaccines: Inequity Sets the World On Course for a Great Divide’, warns of divergent paths for Africa and for high- and middle-income countries with ample access to vaccine supplies in 2022.



High- and middle-income countries will be able to protect large swathes of people from illness in 2022. Bolstered by substantial fiscal support, these countries are on course to safely re-engage in economic and social activity in 2022, returning to a pre-pandemic normalcy in which Covid-19 might be managed like the seasonal flu.



While African countries will also be opening up to economic and social activity in 2022, the lack of access to vaccines means Covid-19 will continue to circulate more widely, requiring new lockdowns and stricter public health measures to contain outbreaks and safeguard health systems from collapse. These measures, and restrictions on travel from countries with low vaccination coverage, will hamper Africa’s recovery, impacting the short- and long-term economic and social outlook.



This divergent recovery will impact both Africa and the global community, with increased risk of:



<ul class="wp-block-list"><li>more potent new variants developing and spreading globally;</li><li>greater instability in Africa and increased migration from Africa;</li><li>greater inequality and reduced global resilience to existential threats, such as climate change and another pandemic; and</li><li>sluggish growth in Africa dampening the long-term global economic outlook.&nbsp;</li></ul>



<h2 class="wp-block-heading" id="h-obstacles-to-accessing-vaccines-setting-course-for-a-great-divide">Obstacles to Accessing Vaccines: Setting Course for a Great Divide</h2>



The report sets out the obstacles to vaccine access – widening gaps between Africa’s vaccine requirements and the number of vaccines supplied; challenging production forecasts; and the development of ‘Vaccine Apartheid’ – which have led to the African continent having the lowest Covid-19 vaccination coverage rates in the world, and global vaccine inequity:



<ul class="wp-block-list"><li>55% of Europe is fully vaccinated and the region with the second lowest coverage has eight times as many fully vaccinated people as Africa.</li><li>Despite accounting for nearly one fifth of the global population, Africa has administered just 2.7% of total doses.</li><li>Of the approximately 1 bn doses pledged by the G7 in June to low- and middle-income countries over the next year, only around 150 million had been fulfilled by early October. Africa had received about 40m of those donations. The Airfinity model suggests that G7 countries could in fact have redistributed 500m doses to date.</li></ul>



<h2 class="wp-block-heading">The impact of vaccine inequity on Africa in 2022</h2>



The report outlines the likely impact of vaccine inequity on Africa in 2022:



<ul class="wp-block-list"><li>Undoing health progress – In 2022 and beyond we are likely to see a resurgence of diseases the world has worked hard to eradicate. Just 12 months of Covid-19 response has already eliminated 12 years of progress in the global fight against tuberculosis, according to a study by the StopTB Partnership, with critical outreach and services set aside, resulting in a 20% drop in diagnosis and treatment worldwide. But the biggest long-running risk posed by Covid-19 is on routine immunisation drives. According to the WHO, more than one-third of countries are still reporting disruptions to immunisation services.</li></ul>



<ul class="wp-block-list"><li>Escalating Poverty and Food Insecurity – The World Bank estimates the pandemic-related economic crisis may push as many as 11m Nigerians into poverty by 2022, signalling a poverty rate of more than 50% for its 200m people. Food insecurity is a growing concern across the continent as prices rise as a result of global shortages, oil price rises due to growing demand from the reopening of advanced economies and currency depreciations which import costs. Global food prices in August were up 33% year-on-year, with emerging markets worst affected. African governments and the global community should prepare for a surge in humanitarian crises across the continent due to a depressed economic recovery.&nbsp;</li></ul>



<ul class="wp-block-list"><li>Weak Growth – Modelling by the Economist Intelligence Unit predicts that developing economies will bear the brunt of output shortfalls because of global vaccine inequity. Countries that are unable to achieve at least 60 per cent vaccination coverage by mid-2022 will suffer $2.3 trillion in GDP losses by 2025. With around $230 billion in cumulative projected shortfalls, Sub-Saharan Africa will experience the highest losses in terms of GDP share, totalling 3% of the region’s 2022 to 2025 output forecast.</li></ul>



<ul class="wp-block-list"><li>Increasing Debt, Declining Investment – Weak growth rates will compound negative shocks to fiscal balances and debt positions. Before the pandemic, debt taken on by many African countries was already reaching unsustainable levels. Policy measures required to respond to the pandemic have pushed even more nations into debt distress, with governments having difficulties servicing debt. Many countries in Africa will have to cut back on development-critical spending in order to continue responding to the pandemic while avoiding a loan defaults, making them even more reliant on foreign assistance.</li></ul>



<ul class="wp-block-list"><li>Restricted Travel and Tourism – The fiscal outlook will be depressed by the continuing reduction in tourism revenues. The services sector, which had been growing rapidly and accounted for approximately 55% of Africa’s GDP in 2016, will see a slower recovery than others, largely because of continuing restrictions and hesitancy around cross-border travel.</li></ul>



<ul class="wp-block-list"><li>A Learning Deficit – &nbsp;In 2022, as the continent continues to move to control new waves of transmission through lockdowns, instead of mass vaccinations, domestic and global educational disparities will widen between the wealthy and poor. The education of millions of young Africans is at stake, as well as the future of the region.</li></ul>



<h2 class="wp-block-heading">The impact of vaccine inequity on Africa in 2022</h2>



The report warns that the consequences of such a divergent recovery will not only impact Africa, but the global community too: &nbsp;



<ul class="wp-block-list"><li>Risk of new variants &#8211; With Covid-19 continuing to spread among unvaccinated populations, there will be a constant risk of potentially more potent variants developing. As we have seen with the global impact of the Delta variant, new variants are a risk to vaccination efforts everywhere, threatening to undo the scientific and public-health progress of the past 18 months. It is in the interest of high-income countries to ensure the world is vaccinated as soon as possible to prevent the development of dangerous mutations.</li></ul>



<ul class="wp-block-list"><li>Risk of instability in Africa and increased migration &#8211; Sustained health and economic insecurity in Africa could heighten domestic unrest and increase opportunities for extremism. As some states lag behind in addressing economic challenges and social frustrations arise from the pandemic, governance-related challenges from terrorist groups may increase. Several terrorist groups are already exploiting the pandemic. Instability could even drive new waves of migration.</li></ul>



<ul class="wp-block-list"><li>Risk of greater inequality and reduced global resilience to existential threats – A Great Divide is likely to deepen gaps between wealthy and poor countries, increasing global instability, generating economic uncertainty and sowing geopolitical tensions. With this outcome, the world will be even more ill-equipped to address other pressing existential issues, such as the climate crisis or another pandemic.</li></ul>



<ul class="wp-block-list"><li>Risk to the global economy – All these factors &#8211; from variants to growing extremism &#8211; could drive up instability in Africa, with negative consequences for the global economy, as uncertainty diminishes consumer confidence and holds back investment. The economic impact of the Great Divide will be most acutely felt in Africa, but its sluggish recovery and growing instability will dampen the long-term global economic outlook. &nbsp;</li></ul>



The report says that there is still time to change course and avoid this ‘Great Divide’, but action must be taken immediately and both high-income countries and African governments have roles to play. It makes a number of recommendations for urgent action, including:



<ol class="wp-block-list" type="I"><li>Countries must urgently fulfil their commitment to sharing excess doses and step aside in the supply queue so COVAX can be prioritised.</li><li>Countries need to remove export restrictions and other trade barriers on Covid-19 vaccines and inputs involved in their production.</li><li>Travel restrictions not founded on scientific evidence need to be lifted.</li><li>The G7 and G20 should endorse a comprehensive financial-assistance package for Africa and allow governments on the continent to decide how this money is best deployed.</li><li>Governments of high-income countries need to scale up support for vaccine manufacturing in Africa and strengthen vertical and horizontal linkages.</li><li>Countries must build up institutional strength for vaccine rollout and crisis response, including agile government systems, structures and skills.</li></ol>

General Photo: Vaccine

Tony Blair Institute: Vaccine inequity threatens global ‘Great Divide’ in 2022 – with Africa left behind

Article can be read <a href="https://www.cnbcafrica.com/2021/a-just-transition-for-africa-championing-a-fair-and-prosperous-pathway-to-net-zero/">here</a>.



Tony Blair’s words are misleading – gas is an economic disaster that will push Mozambique deeper into debt



The opinion piece by the Tony Blair Institute about fossil fuels in Africa, including the gas industry in Cabo Delgado, northern Mozambique is misleading, factually incorrect and perpetuates neo-colonialism. We write as Justiça Ambiental/Friends of the Earth Mozambique (an organisation which works with communities on the ground in Cabo Delgado) and Friends of the Earth England, Wales and Northern Ireland, to respond on an issue from which Mr Blair is clearly very far removed.



<h2 class="wp-block-heading" id="h-impacts-to-date">Impacts to date</h2>



Mr Blair uses the word ‘development’ 61 times.&nbsp; This is his indicator of success, and he claims it will only transpire if Mozambique’s gas reserves are exploited.&nbsp; He says Mozambique will be condemned to poverty without gas. Yet, even though not a drop of gas has been extracted, the industry has caused irreversible devastation to already poor communities, with thousands of people displaced and pushed deeper into poverty.



<a href="https://www.bankingonclimatechaos.org/">Five hundred and fifty families</a> from rural fishing and farming communities living around Total’s Afungi Liquid Natural Gas (LNG) Park were displaced to a replacement village far from their land and 10km from the sea, leaving them without livelihoods. Total offered replacement farming plots but these were so small that many people opted for inadequate compensation, following an unsatisfactory consultation process. The only jobs created have been menial, unskilled and temporary. Communities’ compensation complaints were waved away, leaving people to rely on food parcels.



This has helped create strong anti-government sentiment which has fuelled the <a href="https://www.amnesty.org/en/documents/afr41/3545/2021/en/">violent conflict</a> involving insurgents, the Mozambican and Rwandan military and mercenaries – a conflict that has created <a href="https://www.theguardian.com/global-development/2021/aug/18/i-ran-my-heart-was-broken-inside-mozambiques-evolving-cabo-delgado-conflict">800,000 refugees</a>. The connection between the LNG project and the insurgency was <a href="https://hansard.parliament.uk/Lords/2021-03-17/debates/5FEFED2D-65ED-41A2-8075-8E2D5F4D3630/MozambiqueMilitantViolence#contribution-DEB3D15E-37FD-449A-AC42-D1D7FDBF20D3">acknowledged</a> earlier this year in the UK Parliament by government minister Lord Goldsmith.



Total’s $24 billion Mozambique LNG project is currently on indefinite hold. After it claimed<a href="https://www.reuters.com/world/africa/frances-total-declares-force-majeure-mozambique-lng-project-2021-04-26/"> ‘force majeure’</a> in April 2021 as a result of the insurgency, it stopped all compensation payments and all payments to Mozambican contractors, including small businesses.



<h2 class="wp-block-heading">Will gas benefit Mozambique?</h2>



There is no guarantee that the gas will bring electricity to the <a href="https://data.worldbank.org/indicator/EG.ELC.ACCS.UR.ZS?locations=MZ">70% of Mozambicans </a>who do not have it. The vast majority of the gas will be exported to India, France, the UK, China and Indonesia among other countries. And it makes far more sense for a majority rural population to produce energy from decentralised, small-scale and community-owned renewable resources, of which Mozambique has plenty.



Mozambique’s record gives little assurance that the LNG will bring any benefit to people. <a href="https://mg.co.za/article/2017-10-25-00-poor-mozambicans-accuse-sasol-of-bleeding-them/">Sasol’s Pande and Temane</a> gas projects in Inhambane have been mired in controversy over a 15-year old agreement, which has recently been renewed, in which the Mozambican government earns little in tax revenues while Sasol benefits by selling gas, in essence, to itself.



And gas will be a major <a href="https://zitamar.com/the-great-gas-illusion-mozambiques-lng-revenues-may-fall-short-to-transform-the-country/">economic disaster</a> for Mozambique. The consortiums which own the projects have subsidiaries in Dubai, and Mozambique’s double tax agreement with Dubai means the consortiums will not pay the 20% withholding taxes on interest and dividends as they would have done under Mozambique’s tax laws. A report by <a href="https://drive.google.com/file/d/1FjHZRvdH7AwyTtGUJA6Ig5reISAnt0XR/view">OpenOil</a> shows that this means Mozambique will lose $5.3 billion in tax revenue over the life spans of Coral LNG and Mozambique LNG. Furthermore, the project owners have also received an 8% corporate income tax reduction for the first 8 years of production.



<h2 class="wp-block-heading">Climate impacts</h2>



Mr Blair talks of the need to meet globally-agreed climate targets. But he does not mention that the Mozambique LNG project is not aligned with the Paris Agreement. The construction phase alone would increase Mozambique’s greenhouse gas emissions by up to 14%. And <a href="https://friendsoftheearth.uk/system-change/climate-litigation-briefing-friends-earth-vs-uk-export-finance">burning the gas</a> that the project would produce would generate annual climate emissions equivalent to the entire European Union aviation sector.



But despite this, the United States Export Import Bank has agreed to finance Mozambique LNG with<a href="https://www.exim.gov/news/exim-board-unanimously-approves-amended-financing-exports-mozambique-lng-project-and-support"> $4.7 billion</a>, its largest loan for many years. And the project was also supported by the UK government, host of the critical COP 26 climate talks, which claims to be a <a href="https://hansard.parliament.uk/commons/2020-02-05/debates/9EAB35C6-1EF6-4A18-B345-56F34D5D4504/Engagements#contribution-A18127A6-97F4-44F2-8CCE-A52ED3601B90">world leader</a> on climate change. However the UK government’s funding decision is being <a href="https://friendsoftheearth.uk/climate/mozambique-gas-project-friends-earth-asks-oral-court-hearing-over-government-support">judicially reviewed</a> by Friends of the Earth on the grounds that it did not adequately consider whether the project was in line with the Paris Agreement.



And he almost completely skirts over methane. He refers to the <a href="https://www.ipcc.ch/report/ar6/wg1/">latest report</a> from the UN’s Intergovernmental Panel on Climate Change (IPCC) but does not mention that that report states that methane levels need to be reduced immediately, that over 20 years methane has a warming impact of 84 times that of CO2, and that methane leakage from gas projects is endemic.



And we shouldn’t forget that Mozambique is one of the most <a href="https://germanwatch.org/sites/germanwatch.org/files/Global%20Climate%20Risk%20Index%202021_1.pdf">climate vulnerable nations</a> &#8211; and the most impacted country in the world in 2019 following the devastating tropical Cyclone Idai.



<h2 class="wp-block-heading">The real way forward</h2>



Mr Blair is caustic about developed countries phasing out funding for gas projects, claiming it is driven mainly by sending the right signals to domestic electorates. He’s right that people in richer countries like the UK don’t want to see their money used to fund climate change around the world. And it’s in line with the Paris Agreement which requires richer countries to provide financial help to developing countries to help them meet their targets to cut emissions – not to increase them. He should be encouraging such moves.



Mr Blair refers to Mozambique’s gas projects as providing intra- and inter-generational justice, and as a development imperative that serves people, prosperity and the planet. We couldn’t disagree more.



Investment in gas will just lock Mozambique into fossil fuels, increase climate emissions and the threat of greater impacts on an already badly-affected country.



Developing countries like Mozambique need to move past fossil fuels and develop their abundant renewable resources, supported by the climate finance that developed countries have already committed to provide.



That is the true development imperative and would be true climate justice.



By: Justiça Ambiental/Friends of the Earth Mozambique and Friends of the Earth England, Wales and Northern Ireland

Response to article: A Just Transition for Africa: Championing a Fair and Prosperous Pathway to Net Zero

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/50782991392_4feddee788_k-820x547.jpg" alt="" class="wp-image-410497" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/50782991392_4feddee788_k-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/50782991392_4feddee788_k-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/50782991392_4feddee788_k-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/50782991392_4feddee788_k-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/50782991392_4feddee788_k-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/50782991392_4feddee788_k.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A health worker preparing to extract a dose of vaccine from a vial.
Photo: via Flickr</figcaption></figure>



By Dr. Penninah Iutung Amor, Africa Bureau Chief, AIDS Healthcare Foundation | Kampala, Uganda



The novel coronavirus has shown glaring flaws in the world’s collective ability to respond to infectious disease outbreaks, with none more evident than wealthy countries’ self-destructive unwillingness to cooperate on vaccine equity for the benefit of the entire global population.



Since the world’s wealthiest countries have been the primary contributors to the great global disparity between the vaccine haves and have-nots – it’s time that African leaders push G20 heads of state to address and rectify the life-threatening vaccine imbalance at the upcoming summit in Rome, Italy at the end of October.



As of early October 2021, <a href="https://www.nytimes.com/interactive/2021/world/covid-vaccinations-tracker.html">3.6 billion COVID-19 vaccine doses</a> had been administered globally, with 78% of those going to people in high- and upper-middle-income countries. Less than 7% of the 1.3 billion people on the African continent have received even one dose. The discrepancy is worse for people in low-income countries where less than 1% have gotten a shot.



It’s no surprise that there are not enough doses to vaccinate our world when wealthy countries have secured enough vaccines to inoculate their populations as much as five times over, according to <a href="https://globalhealth.duke.edu/news/will-low-income-countries-be-left-behind-when-covid-19-vaccines-arrive">Duke University</a>. Even though the world will have created 11 billion total doses by the end of this year, almost 9.9 billion of those have already been promised to wealthy nations.



The Covax initiative, while promising, was supposed to supply lower-income countries with sufficient vaccine doses. However, that mechanism clearly has fallen short of its initial goal to vaccinate 20% of recipient countries, which is still far too little when the World Health Organization (W.H.O.) states that a vaccination rate of <a href="https://www.bbc.com/news/world-55795297">70% is required</a> to protect the world.



A debate in the U.S. and other high-income countries now centers around booster shots, while Africa and other hard-hit regions struggle. W.H.O. Director-General Tedros Adhanom Ghebreyesus recently said it was “unconscionable” that some countries are now offering booster shots “while so many people remain unprotected.”



The time has come for African leaders to amplify their voices in a combined effort to demand that G20 leaders prioritize global vaccine access for the majority of nations that desperately want to vaccinate their populations.



That must start with pushing pharmaceutical companies to share their know-how and technology to increase production in Africa and globally. Africa can no longer wait for vaccine charity, it is time to get rid of patent monopolies for successful vaccines against the coronavirus, whose development was supported by $100 billion in public funding from taxpayers in the US, Germany, and other countries. 



Taxpayers were the primary funders of COVID-19 vaccine research, development, and production – the world owns that intellectual property, not the drug companies that continue to profit from the pandemic.



According to <a href="https://actionaid.org/news/2021/pharmaceutical-companies-reaping-immoral-profits-covid-vaccines-yet-paying-low-tax-rates">Action Aid</a>,&nbsp; Moderna, BioNTech, and Pfizer are reaping astronomical and unconscionable profits due to their monopolies of mRNA COVID vaccines, with the three corporations having earned more than $26 billion in revenue in the first half of the year.



Further steps that leaders of the wealthiest economies must take are raising at least $100 billion, enough to vaccinate our world, committing to international cooperation as the most fundamental way to address pandemics, and drafting a new Global Public Health Convention to serve as the worldwide health governance system to rapidly respond to future outbreaks.



The global COVID-19 response has been abysmal since the start, but African leaders have the opportunity to rally together and speak as a united force for the good of all Africans and the world. If one nation is under threat from COVID-19 with no access to vaccines, all nations are in danger. The G20 leaders must acknowledge that reality and act accordingly. The fate of the world is in their hands at the upcoming Summit— by ensuring vaccine equity, we will be protecting the entire world. &nbsp;



###



AIDS Healthcare Foundation (AHF), the largest global AIDS organization, currently provides medical care and/or services to over 1.5 million clients in 45 countries worldwide in the US, Africa, Latin America/Caribbean, the Asia/Pacific Region and Europe. To learn more about AHF, please visit our website: <a href="http://www.aidshealth.org">www.aidshealth.org</a>, find us on Facebook: <a href="http://www.facebook.com/aidshealth">www.facebook.com/aidshealth</a> and follow us on Twitter: <a href="https://twitter.com/aidshealthcare">@aidshealthcare</a> and Instagram: <a href="http://instagram.com/aidshealthcare">@aidshealthcare</a>

50782991392_4feddee788_k

African Leaders Must Urge G20 to Stop Covid-19 Vaccines Apartheid to Save Our World

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/8779634081_c64793f31f_o-820x546.jpg" alt="" class="wp-image-413015" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/8779634081_c64793f31f_o-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/8779634081_c64793f31f_o-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/8779634081_c64793f31f_o-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/8779634081_c64793f31f_o-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/8779634081_c64793f31f_o-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/8779634081_c64793f31f_o.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>CCAFS East African regional program selects six sites to test interventions that address risks related to climate change and variability. Featured here is the Lower Nyando Photo: via Flickr</figcaption></figure>



Sub-Saharan Africa is a fast-growing region of 1.2 billion people whose pathway to a more promising future requires navigating a complex array of food-related challenges, which have been greatly intensified by the COVID-19 pandemic. But over the long-term, pressures on food production caused by climate change loom as the biggest obstacle. And actions taken at the upcoming United Nations <a href="https://urldefense.com/v3/__https:/nam10.safelinks.protection.outlook.com/?url=https*3A*2F*2Fukcop26.org*2F&amp;data=04*7C01*7Cpercy.makombe*40gatesfoundation.org*7C9235f7a9982546e4676f08d98db382fa*7C296b38384bd5496cbd4bf456ea743b74*7C0*7C0*7C637696624393754864*7CUnknown*7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0*3D*7C1000&amp;sdata=PVm9mbbvYS49ARVlMkyetq0iKL9Urw4Nnl1ZGjKM4P4*3D&amp;reserved=0__;JSUlJSUlJSUlJSUlJSUlJSU!!HhhKMSGjjQV-!pSIcY7GhmAKRVDP-QkiU9bH9g_b9EY8hHBASbQWcfhbKLO_IK_kS8jgoM-Zumzmmtie79JTACyRV6cQ$">climate change conference</a> in Glasgow, Scotland will be decisive in determining Africa’s capacity to adapt.&nbsp;&nbsp;&nbsp;&nbsp;



Specifically, world leaders must embrace a global climate finance plan that provides significant investments to help smallholder farmers and livestock keepers in Africa adapt to the stresses caused by climate change.&nbsp;



Africa’s food systems are anchored by small-scale food producers who also generate employment and income for the majority of Africans. Yet a growing number of challenges linked to climate change—like the drought and locust attacks <a href="https://urldefense.com/v3/__https:/nam10.safelinks.protection.outlook.com/?url=http*3A*2F*2Fwww.fao.org*2F3*2Fcb4474en*2Fonline*2Fcb4474en.html*23chapter-2_1&amp;data=04*7C01*7Cpercy.makombe*40gatesfoundation.org*7C9235f7a9982546e4676f08d98db382fa*7C296b38384bd5496cbd4bf456ea743b74*7C0*7C0*7C637696624393764817*7CUnknown*7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0*3D*7C1000&amp;sdata=Lhh*2Bmg1mSllM*2FNz62WF*2F*2FHUCtd6neRjlHYl8IL*2BJqvA*3D&amp;reserved=0__;JSUlJSUlJSUlJSUlJSUlJSUlJSUlJSUlJSU!!HhhKMSGjjQV-!pSIcY7GhmAKRVDP-QkiU9bH9g_b9EY8hHBASbQWcfhbKLO_IK_kS8jgoM-Zumzmmtie79JTAEykSqho$">currently threatening 2.1 million</a> Kenyans with starvation—have hit Africa’s smallholder farmers and livestock keepers especially hard.&nbsp;



A <a href="https://urldefense.com/v3/__https:/nam10.safelinks.protection.outlook.com/?url=https*3A*2F*2Fnews.cornell.edu*2Fstories*2F2021*2F04*2Fclimate-change-has-cost-7-years-ag-productivity-growth&amp;data=04*7C01*7Cpercy.makombe*40gatesfoundation.org*7C9235f7a9982546e4676f08d98db382fa*7C296b38384bd5496cbd4bf456ea743b74*7C0*7C0*7C637696624393764817*7CUnknown*7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0*3D*7C1000&amp;sdata=DAg*2BCr2mqtrxO7cxiY*2BuqDM1sGKULG4RHJ6bCIYxQN0*3D&amp;reserved=0__;JSUlJSUlJSUlJSUlJSUlJSUlJSUlJQ!!HhhKMSGjjQV-!pSIcY7GhmAKRVDP-QkiU9bH9g_b9EY8hHBASbQWcfhbKLO_IK_kS8jgoM-Zumzmmtie79JTAK6FSsTU$">recent study</a> found that over the last 60 years, climate change has cut farm output globally by 21 percent. But in large areas of Africa, estimated losses exceed 40 percent.&nbsp; The Food and Agriculture Organization of the United Nations (FAO) has warned that COVID-19 has intensified this already deteriorating situation.&nbsp;



But even as they continue to grapple with the pandemic, African leaders are looking to a future where the continent’s fortunes will depend heavily on adapting to climate change. Earlier this year, they endorsed a pandemic recovery strategy focused on mobilizing $25 billion over the next five years to support an <a href="https://urldefense.com/v3/__https:/nam10.safelinks.protection.outlook.com/?url=https*3A*2F*2Fgca.org*2Fnews*2Fa-global-call-from-african-leaders-on-the-covid-19-climate-emergency-and-the-africa-adaptation-acceleration-program*2F&amp;data=04*7C01*7Cpercy.makombe*40gatesfoundation.org*7C9235f7a9982546e4676f08d98db382fa*7C296b38384bd5496cbd4bf456ea743b74*7C0*7C0*7C637696624393774777*7CUnknown*7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0*3D*7C1000&amp;sdata=ppH7tYaXjxa2XviwP3tCqJlHsVrZgmD0WAWJ76dAet0*3D&amp;reserved=0__;JSUlJSUlJSUlJSUlJSUlJSUlJQ!!HhhKMSGjjQV-!pSIcY7GhmAKRVDP-QkiU9bH9g_b9EY8hHBASbQWcfhbKLO_IK_kS8jgoM-Zumzmmtie79JTAf3eIpYg$">African Adaptation Acceleration Program</a>, a <a href="https://urldefense.com/v3/__https:/nam10.safelinks.protection.outlook.com/?url=https*3A*2F*2Freliefweb.int*2Freport*2Fworld*2Fafrican-presidents-and-global-leaders-support-bold-action-climate-change-adaptation&amp;data=04*7C01*7Cpercy.makombe*40gatesfoundation.org*7C9235f7a9982546e4676f08d98db382fa*7C296b38384bd5496cbd4bf456ea743b74*7C0*7C0*7C637696624393774777*7CUnknown*7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0*3D*7C1000&amp;sdata=v*2FKU9TspxGGcJMTy95NSxFcosjYeWbRk*2FZfOZccU2Mk*3D&amp;reserved=0__;JSUlJSUlJSUlJSUlJSUlJSUlJSUl!!HhhKMSGjjQV-!pSIcY7GhmAKRVDP-QkiU9bH9g_b9EY8hHBASbQWcfhbKLO_IK_kS8jgoM-Zumzmmtie79JTA_UxkUoM$">goal backed</a> by United Nations’ Secretary-General Antonio Guterres and U.S. Treasury Secretary Janet Yellen. It includes a strong focus on improving the resilience of small-scale crop and livestock producers.



But African countries cannot overcome climate challenges alone, nor should they. As Secretary Yellen noted, “Africa contributed the least to climate change, but it is suffering the worst effects.” Case in point: Africa accounts for only <a href="https://urldefense.com/v3/__https:/nam10.safelinks.protection.outlook.com/?url=https*3A*2F*2Fwww.brookings.edu*2Fwp-content*2Fuploads*2F2016*2F08*2Fglobal_20160818_cop21_africa.pdf&amp;data=04*7C01*7Cpercy.makombe*40gatesfoundation.org*7C9235f7a9982546e4676f08d98db382fa*7C296b38384bd5496cbd4bf456ea743b74*7C0*7C0*7C637696624393784746*7CUnknown*7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0*3D*7C1000&amp;sdata=KSkCafkoaPmovtL*2FvL*2B3VsK4RDSVcc9j8uM9JBWgKbE*3D&amp;reserved=0__;JSUlJSUlJSUlJSUlJSUlJSUlJSUlJSU!!HhhKMSGjjQV-!pSIcY7GhmAKRVDP-QkiU9bH9g_b9EY8hHBASbQWcfhbKLO_IK_kS8jgoM-Zumzmmtie79JTASzHXyCo$">about four percent</a> of the world’s greenhouse gas emissions. &nbsp;



Today, about three-quarters or more of <a href="https://urldefense.com/v3/__https:/nam10.safelinks.protection.outlook.com/?url=https*3A*2F*2Funfccc.int*2Ffiles*2Fcooperation_and_support*2Ffinancial_mechanism*2Fstanding_committee*2Fapplication*2Fpdf*2F2016_ba_technical_report.pdf&amp;data=04*7C01*7Cpercy.makombe*40gatesfoundation.org*7C9235f7a9982546e4676f08d98db382fa*7C296b38384bd5496cbd4bf456ea743b74*7C0*7C0*7C637696624393784746*7CUnknown*7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0*3D*7C1000&amp;sdata=9dQpt09Hw5oWRYriS6*2FiR5R*2FDBaakcehO18LQ*2FoJrco*3D&amp;reserved=0__;JSUlJSUlJSUlJSUlJSUlJSUlJSUlJSUlJSU!!HhhKMSGjjQV-!pSIcY7GhmAKRVDP-QkiU9bH9g_b9EY8hHBASbQWcfhbKLO_IK_kS8jgoM-Zumzmmtie79JTAv9gB9So$">climate financing</a> goes toward reducing emissions. But we need to be just as ambitious and innovative with adaptation. Because even radical reductions right now won’t <a href="https://urldefense.com/v3/__https:/nam10.safelinks.protection.outlook.com/?url=https*3A*2F*2Ftheconversation.com*2Fif-we-stopped-emitting-greenhouse-gases-right-now-would-we-stop-climate-change-78882&amp;data=04*7C01*7Cpercy.makombe*40gatesfoundation.org*7C9235f7a9982546e4676f08d98db382fa*7C296b38384bd5496cbd4bf456ea743b74*7C0*7C0*7C637696624393794693*7CUnknown*7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0*3D*7C1000&amp;sdata=5MYbeGg8JDlYdUvfVUeG*2By6CxrVTmaeqowGbQbKXTCM*3D&amp;reserved=0__;JSUlJSUlJSUlJSUlJSUlJSUl!!HhhKMSGjjQV-!pSIcY7GhmAKRVDP-QkiU9bH9g_b9EY8hHBASbQWcfhbKLO_IK_kS8jgoM-Zumzmmtie79JTABw-eTC4$">stop many of the changes</a> already affecting African farmers and that are likely to intensify over the next few decades.&nbsp;



Secretary-General Guterres has <a href="https://urldefense.com/v3/__https:/nam10.safelinks.protection.outlook.com/?url=https*3A*2F*2Freliefweb.int*2Freport*2Fworld*2Fsecretary-general-calls-massive-scale-climate-adaptation-africa-urging-leaders-dialogue&amp;data=04*7C01*7Cpercy.makombe*40gatesfoundation.org*7C9235f7a9982546e4676f08d98db382fa*7C296b38384bd5496cbd4bf456ea743b74*7C0*7C0*7C637696624393794693*7CUnknown*7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0*3D*7C1000&amp;sdata=M2a7Ofx23JDwiHcrwfKy6Soi4Q7ho2eZi*2BuIvEw2vow*3D&amp;reserved=0__;JSUlJSUlJSUlJSUlJSUlJSUlJSU!!HhhKMSGjjQV-!pSIcY7GhmAKRVDP-QkiU9bH9g_b9EY8hHBASbQWcfhbKLO_IK_kS8jgoM-Zumzmmtie79JTAjvwfN_U$">called for G7 countries</a>, along with institutions like the World Bank, to increase support for adaptation and resilience from 20 percent to 50 percent of their total climate finance.&nbsp;&nbsp;



Investments in adaptation should include a strong focus on agricultural innovations that target the needs of smallholder farming communities in Africa. Agriculture experts are already working in Africa to harness advances in data science and digital technologies. Such advances can be used to&nbsp; provide farmers with seasonal climate forecasts, technical advice and to track crop diseases likely to be made worse by climate change—like those threatening <a href="https://urldefense.com/v3/__https:/nam10.safelinks.protection.outlook.com/?url=https*3A*2F*2Fwave-center.org*2F&amp;data=04*7C01*7Cpercy.makombe*40gatesfoundation.org*7C9235f7a9982546e4676f08d98db382fa*7C296b38384bd5496cbd4bf456ea743b74*7C0*7C0*7C637696624393804645*7CUnknown*7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0*3D*7C1000&amp;sdata=yBS6kbHP3Rr*2BzZ7TDGuPFIy6dwVosSqCQ4zPn8BXgQg*3D&amp;reserved=0__;JSUlJSUlJSUlJSUlJSUlJSUl!!HhhKMSGjjQV-!pSIcY7GhmAKRVDP-QkiU9bH9g_b9EY8hHBASbQWcfhbKLO_IK_kS8jgoM-Zumzmmtie79JTApEcINiU$">cassava in West Africa</a> and <a href="https://urldefense.com/v3/__https:/nam10.safelinks.protection.outlook.com/?url=https*3A*2F*2Fwww.cimmyt.org*2Fnews*2Fscientists-develop-an-early-warning-system-that-delivers-wheat-rust-predictions-directly-to-farmers-phones*2F&amp;data=04*7C01*7Cpercy.makombe*40gatesfoundation.org*7C9235f7a9982546e4676f08d98db382fa*7C296b38384bd5496cbd4bf456ea743b74*7C0*7C0*7C637696624393804645*7CUnknown*7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0*3D*7C1000&amp;sdata=YwTTQvc5xzVrYjIbi5IDTW5*2B0yoOzRl*2BvX6IuQ*2FTgzs*3D&amp;reserved=0__;JSUlJSUlJSUlJSUlJSUlJSUlJSUlJQ!!HhhKMSGjjQV-!pSIcY7GhmAKRVDP-QkiU9bH9g_b9EY8hHBASbQWcfhbKLO_IK_kS8jgoM-Zumzmmtie79JTAt5O749o$">wheat production</a> in Ethiopia. There is <a href="https://urldefense.com/v3/__https:/nam10.safelinks.protection.outlook.com/?url=https*3A*2F*2Fwww.wri.org*2Fresearch*2Fdigital-climate-informed-advisory-services&amp;data=04*7C01*7Cpercy.makombe*40gatesfoundation.org*7C9235f7a9982546e4676f08d98db382fa*7C296b38384bd5496cbd4bf456ea743b74*7C0*7C0*7C637696624393814608*7CUnknown*7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0*3D*7C1000&amp;sdata=bvb3wi*2BdZCjLE4lqleAKSNLtQ398fwy4DuJhHsWUvFs*3D&amp;reserved=0__;JSUlJSUlJSUlJSUlJSUlJSUlJQ!!HhhKMSGjjQV-!pSIcY7GhmAKRVDP-QkiU9bH9g_b9EY8hHBASbQWcfhbKLO_IK_kS8jgoM-Zumzmmtie79JTAC145vK0$">evidence that such services</a> can help farmers sustainably boost productivity by 30% and household income by 25%.&nbsp;



The CGIAR international system of agricultural research centers is a critical player for bringing these and other innovations to African farmers. In its decades of work, CGIAR has developed strong partnerships with farmers and national agricultural research centers across Africa. It’s practical advances—like the development of <a href="https://urldefense.com/v3/__https:/nam10.safelinks.protection.outlook.com/?url=https*3A*2F*2Fwww.cgiar.org*2Finnovations*2Fbetter-beans-for-africa*2F&amp;data=04*7C01*7Cpercy.makombe*40gatesfoundation.org*7C9235f7a9982546e4676f08d98db382fa*7C296b38384bd5496cbd4bf456ea743b74*7C0*7C0*7C637696624393814608*7CUnknown*7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0*3D*7C1000&amp;sdata=btBH6pkYq3iR96E8hGCLCcDAMvKr8hGgTFSpTX4gd9Y*3D&amp;reserved=0__;JSUlJSUlJSUlJSUlJSUlJSUlJQ!!HhhKMSGjjQV-!pSIcY7GhmAKRVDP-QkiU9bH9g_b9EY8hHBASbQWcfhbKLO_IK_kS8jgoM-Zumzmmtie79JTAlwn2j7E$">hundreds of improved varieties</a> of beans for African farmers and its support of <a href="https://urldefense.com/v3/__https:/nam10.safelinks.protection.outlook.com/?url=https*3A*2F*2Fciat.cgiar.org*2Fwp-content*2Fuploads*2FA4-CIAT_FACT-SHEET_AFRICA_-AUGUST-2019.pdf&amp;data=04*7C01*7Cpercy.makombe*40gatesfoundation.org*7C9235f7a9982546e4676f08d98db382fa*7C296b38384bd5496cbd4bf456ea743b74*7C0*7C0*7C637696624393824556*7CUnknown*7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0*3D*7C1000&amp;sdata=zH3cnlK*2BFiJHsa6Wl4OV60xbMw6LIOFgyiJ7km5dCjQ*3D&amp;reserved=0__;JSUlJSUlJSUlJSUlJSUlJSUlJSU!!HhhKMSGjjQV-!pSIcY7GhmAKRVDP-QkiU9bH9g_b9EY8hHBASbQWcfhbKLO_IK_kS8jgoM-Zumzmmtie79JTAOuGlcZw$">environmentally sustainable</a> food production in Africa—is one reason every dollar invested in CGIAR has produced&nbsp; $10 in benefits for low-income countries.&nbsp;



CGIAR will be an especially valuable partner for implementing the African Union’s comprehensive <a href="https://urldefense.com/v3/__https:/nam10.safelinks.protection.outlook.com/?url=https*3A*2F*2Fafricaadaptationinitiative.org*2F&amp;data=04*7C01*7Cpercy.makombe*40gatesfoundation.org*7C9235f7a9982546e4676f08d98db382fa*7C296b38384bd5496cbd4bf456ea743b74*7C0*7C0*7C637696624393824556*7CUnknown*7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0*3D*7C1000&amp;sdata=NzTOW2*2BbO3q31*2BhiH3Bw60UsI3W*2B*2FhExvcMiSk*2B*2BdJc*3D&amp;reserved=0__;JSUlJSUlJSUlJSUlJSUlJSUlJSUlJSU!!HhhKMSGjjQV-!pSIcY7GhmAKRVDP-QkiU9bH9g_b9EY8hHBASbQWcfhbKLO_IK_kS8jgoM-Zumzmmtie79JTAqFhZcJA$">African Adaption Initiative.</a> That’s why the <a href="https://urldefense.com/v3/__https:/nam10.safelinks.protection.outlook.com/?url=https*3A*2F*2Fgca.org*2Fabout-us*2Fthe-global-commission-on-adaptation*2F&amp;data=04*7C01*7Cpercy.makombe*40gatesfoundation.org*7C9235f7a9982546e4676f08d98db382fa*7C296b38384bd5496cbd4bf456ea743b74*7C0*7C0*7C637696624393834513*7CUnknown*7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0*3D*7C1000&amp;sdata=x3Qqy24WT0bomKa*2Bg*2FZiEOnZNT5gESwLInNhvYxOJkY*3D&amp;reserved=0__;JSUlJSUlJSUlJSUlJSUlJSUlJSUl!!HhhKMSGjjQV-!pSIcY7GhmAKRVDP-QkiU9bH9g_b9EY8hHBASbQWcfhbKLO_IK_kS8jgoM-Zumzmmtie79JTAfjyrBHk$">Global Commission on Adaptation</a> called for doubling CGIAR’s budget&nbsp; as part of a broader blueprint for supporting adaptation in vulnerable communities around the world.&nbsp;&nbsp;



The Commission also emphasized that funding directly benefits communities in Africa and elsewhere that are on the frontlines of climate change. They should have a powerful voice in shaping adaptation initiatives. Local leaders—from pastoralist herders who have been living in the harsh drylands of the Horn of Africa for thousands of years to farmers in the African Sahel collaborating with researchers to create their own climate smart villages—have the experience and knowledge to develop effective strategies.&nbsp;



Climate change is putting African farmers under enormous pressure. Yet there are many ways to help them adapt and ensure they remain a strong partner for implementing the Food Systems Summit agenda in Africa. That’s why decisions made at the upcoming climate summit are of historical importance.&nbsp; A decisive move to rebalance global finance priorities will determine whether African farmers can adapt before it’s too late.&nbsp;



<a href="https://urldefense.com/v3/__https:/nam10.safelinks.protection.outlook.com/?url=https*3A*2F*2Fwww.gatesfoundation.org*2Fabout*2Fleadership*2Frodger-voorhies&amp;data=04*7C01*7Cpercy.makombe*40gatesfoundation.org*7C9235f7a9982546e4676f08d98db382fa*7C296b38384bd5496cbd4bf456ea743b74*7C0*7C0*7C637696624393834513*7CUnknown*7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0*3D*7C1000&amp;sdata=idZeQA30qTJVbummZw7wE2LjYDh8iGIbUTFBpNm46Vs*3D&amp;reserved=0__;JSUlJSUlJSUlJSUlJSUlJSUlJQ!!HhhKMSGjjQV-!pSIcY7GhmAKRVDP-QkiU9bH9g_b9EY8hHBASbQWcfhbKLO_IK_kS8jgoM-Zumzmmtie79JTAdaR85aQ$">Rodger Voorhies</a> is President of Global Growth &amp; Opportunity at the Bill &amp; Melinda Gates Foundation; and <a href="https://urldefense.com/v3/__https:/nam10.safelinks.protection.outlook.com/?url=https*3A*2F*2Fwww.wri.org*2Fprofile*2Fwanjira-mathai&amp;data=04*7C01*7Cpercy.makombe*40gatesfoundation.org*7C9235f7a9982546e4676f08d98db382fa*7C296b38384bd5496cbd4bf456ea743b74*7C0*7C0*7C637696624393844467*7CUnknown*7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0*3D*7C1000&amp;sdata=dkv*2BsWZgBITgW1gMiK7Z16MYBKM*2BXoPMTAYLoynCIS8*3D&amp;reserved=0__;JSUlJSUlJSUlJSUlJSUlJSUlJSU!!HhhKMSGjjQV-!pSIcY7GhmAKRVDP-QkiU9bH9g_b9EY8hHBASbQWcfhbKLO_IK_kS8jgoM-Zumzmmtie79JTA69UE6T4$">Wanjira Mathai </a>is Vice President and Regional Director for Africa at World Resources Institute.

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Africa’s Food Challenges Will Intensify Absent Major Investments in Climate-Resilient Farms

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/pxfuel.com-3-820x547.jpg" alt="" class="wp-image-413011" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/pxfuel.com-3-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/pxfuel.com-3-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/pxfuel.com-3-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/pxfuel.com-3-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/pxfuel.com-3-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/pxfuel.com-3-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Photo: via PxFuel</figcaption></figure>



Sharan Burrow is General Secretary of the International Trade Union Confederation and Co-Chair of the Global Commission on the Economy &amp; Climate



The global jobs crisis casts a long shadow over the promises of economic recovery. But if we let jobs and sustainable infrastructure&nbsp;go&nbsp;together hand in hand, along a path we call&nbsp;just&nbsp;transition, those promises can be realised.



Serious health, social, and economic crises were laid bare by COVID-19, exposing the inequities of the current system. Workers have&nbsp;<a href="https://inequality.org/facts/inequality-and-covid-19/" target="_blank" rel="noreferrer noopener">lost</a>&nbsp;trillions in income and millions of people have been pushed into&nbsp;<a href="https://blogs.worldbank.org/opendata/updated-estimates-impact-covid-19-global-poverty-turning-corner-pandemic-2021" target="_blank" rel="noreferrer noopener">poverty</a>&nbsp;while billionaires have prospered.&nbsp;We now have a jobs crisis, with a global unemployment gap equivalent to&nbsp;<a href="https://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/documents/publication/wcms_795453.pdf" target="_blank" rel="noreferrer noopener">127 million full-time jobs</a>&nbsp;in the second quarter of 2021.&nbsp;



To reach full employment and realise Goal 8 of the SDGs, 575 million new jobs need to be created by 2030.&nbsp;Women&nbsp;<a href="https://www.ilo.org/wcmsp5/groups/public/@dgreports/@dcomm/documents/briefingnote/wcms_767028.pdf" target="_blank" rel="noreferrer noopener">in particular</a>&nbsp;have been affected by job losses,&nbsp;with&nbsp;<a href="https://www.washingtonpost.com/world/interactive/2021/coronavirus-women-work/" target="_blank" rel="noreferrer noopener">90% of those who lost their jobs&nbsp;in&nbsp;2020&nbsp;leaving the labour market</a>, and&nbsp;losing&nbsp;around&nbsp;<a href="https://www.oxfam.org/en/press-releases/covid-19-cost-women-globally-over-800-billion-lost-income-one-year" target="_blank" rel="noreferrer noopener">$800 billion of income</a>&nbsp;globally.&nbsp;And&nbsp;the&nbsp;lack of social protection measures&nbsp;in too many countries&nbsp;leaves people and economies with no resilience.&nbsp;



At the same time, the world is facing a climate emergency. The&nbsp;<a href="https://www.ipcc.ch/report/ar6/wg1/" target="_blank" rel="noreferrer noopener">IPCC’s latest report</a>&nbsp;made clear we need rapid, transformational change to limit global warming to 1.5 degrees Celsius. We are already experiencing the impacts of climate change. Time is running out and we need to act now.&nbsp;



In attempts to address health impacts of the coronavirus pandemic and staunch the hemorrhaging of their economies, many countries embarked on ambitious spending plans. Some prioritized spending on greener policies, including the&nbsp;<a href="https://a1be08a4-d8fb-4c22-9e4a-2b2f4cb7e41d.filesusr.com/ugd/643e85_f712aba98f0b4786b54c455fc9207575.pdf" target="_blank" rel="noreferrer noopener">EU and Canada</a>.



<a></a>Unfortunately, too many governments have channeled too much&nbsp;<a href="https://www.energypolicytracker.org/" target="_blank" rel="noreferrer noopener">money to infrastructure that is unsustainable</a>. This moves us backward in our fight against climate change and backward in our efforts to create good jobs.&nbsp;



Dollar per dollar, investments in climate-friendly infrastructure create more jobs than the same investment in unsustainable infrastructure, according to&nbsp;<a href="https://www.wri.org/research/green-jobs-advantage" target="_blank" rel="noreferrer noopener">new research</a>.&nbsp;Compared to fossil fuels, investing in building efficiency creates 2.8 times as many jobs on average, solar PV 1.5 times as many jobs, and wind energy 1.2 times as many jobs. The fossil fuel industry is highly automated. But building renewable energy and making buildings more efficient are labour intensive.&nbsp;



It’s not just the clean energy sector that has a jobs advantage. Per dollar, investing in mass transit creates 1.4 times as many jobs as road construction, and dedicated pedestrian or cycling infrastructure creates 1.3 to 1.4 times as many jobs as roads&nbsp;—&nbsp;and makes other jobs more accessible to low-income workers. And investing in nature-based solutions like ecosystem restoration creates more jobs than almost any other type of investment.



Sustainable sectors also provide&nbsp;safe&nbsp;opportunities for lower skilled workers.&nbsp;Construction sector jobs&nbsp;—&nbsp;key for renewable energy, mass transit, or&nbsp;electric vehicle (EV)&nbsp;charging projects&nbsp;—&nbsp;offer lower barriers to entry for people with less formal years of education.&nbsp;



Of course, it’s not just the number of jobs created that is important. Workers want and deserve good, quality jobs&nbsp;—&nbsp;open to all&nbsp;—&nbsp;with fair wages, decent benefits, job security, skills development, safety, and opportunities for social dialogue.&nbsp;



Increasing union representation in climate-friendly jobs helps workers earn higher wages with good benefits and tough safety standards. Fossil fuel workers fought for decades for better labour standards and successfully transformed originally poor working conditions into quality jobs. The clean energy industry needs those same opportunities.&nbsp;



In some cases, job transitions will be complicated. Shifting from internal combustion engine vehicles to EVs will create more jobs in the overall economy, but since EVs have fewer parts and less need for maintenance, some manufacturing and repair jobs will be lost.&nbsp;<a href="https://www.facebook.com/TheClimateGroup/videos/routezero-cop26-and-the-race-to-zero-emission-vehicles/224212823019988/" target="_blank" rel="noreferrer noopener">We cannot leave people stranded</a>.&nbsp;



Governments need to work with workers, their unions and employers to enhance job quality within sustainable sectors. That means: Developing&nbsp;<a href="https://www.ituc-csi.org/just-transition-centre-599" target="_blank" rel="noreferrer noopener">just transition</a>&nbsp;strategies that ensure workers and communities are not left behind; providing government support for the&nbsp;<a href="https://sharanburrow.medium.com/why-investing-in-care-puts-us-on-the-path-to-recovery-and-builds-resilient-economies-dbd9d85291c7" target="_blank" rel="noreferrer noopener">care economy</a>,&nbsp;including education and public health; and&nbsp;providing&nbsp;social protections that build a skilled and resilient workforce.&nbsp;



Being a woman or member of other historically excluded groups should not limit access to good quality jobs. Sustainable jobs can be a positive for women in the workforce. Providing affordable childcare options, instituting policies against sexual harassment and discrimination, and establishing mentorship programs help ensure jobs in climate-friendly sectors are obtainable for all.



We also need to formalize the informal economy. There are high numbers of informal workers in lower-income countries, including in sectors where climate-friendly jobs are located like construction and agriculture. They deserve the same wages, work security, and social protections that full-time, permanent staff have. South Africa’s Water for Work Programme, for example,&nbsp;<a href="https://www.sciencedirect.com/science/article/pii/S2211464517300842" target="_blank" rel="noreferrer noopener">improved job security</a>&nbsp;by allowing workers to shift from short-term to longer-term contracts.



Right now, we are far from securing a just and equitable future on a livable planet. We need hope&nbsp;—&nbsp;that workers will be included in energy transition plans, and&nbsp;that&nbsp;there&nbsp;will be&nbsp;just transition plans in place for all sectors. This is how we plan for good jobs, and&nbsp;how&nbsp;we’ll&nbsp;achieve our emissions targets&nbsp;and&nbsp;avoid the worst impacts of climate change. Investing now in infrastructure that provides both jobs and climate dividends can turn hope into reality.



This isn’t a walk in the park,&nbsp;and&nbsp;we’re in a race against time.&nbsp;Jobs—&nbsp;climate-friendly jobs with just transition&nbsp;—&nbsp;are central to&nbsp;establishing&nbsp;a new social contract and building&nbsp;hope for people and communities. Let’s get to work.

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Investing in Sustainable Infrastructure with Just Transition Creates Jobs

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-1232456245-820x547.jpg" alt="" class="wp-image-412952" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-1232456245-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-1232456245-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-1232456245-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-1232456245-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-1232456245-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/10/GettyImages-1232456245-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A vendor counts Ghana cedi banknotes during a mobile money transaction at a kiosk in Accra, Ghana, on Tuesday, April 22, 2021. MTN Group Ltd. values its mobile-money arm at about $5 billion and will consider a listing of the division, joining African wireless carriers trying to monetize a service that is particularly popular on the continent. Photographer: Nipah Dennis/Bloomberg via Getty Images</figcaption></figure>



<a href="https://linkscan.io/scan/ux/aHR0cHM6Ly93d3cuYWRhLW1pY3JvZmluYW5jZS5vcmcvZW4vZXZlbnRzL2FmcmljYW4tbWljcm9maW5hbmNlLXdlZWs=/9064879CDD359A5B471B79EA5BD67F94142BA791DE5B709C6D62F40BD8D043C6?c=1&amp;i=1&amp;docs=1" target="_blank" rel="noreferrer noopener">African Microfinance Week</a> kicked off in Kigali, Rwanda this week, giving us all a chance to address the challenges facing those who lack access to conventional banking and financial services. The event marks an opportunity for African investors, researchers, banks and government institutions across the continent to address an increasingly pressing topic, financial inclusion.



The barriers to inclusivity have been felt none more so than over the past eighteen months; at a time when parts of the world were still in lockdowns, easier access to digitised services, including banking, became all the more urgent. This is why the conference’s theme – resilience – is so particularly relevant this year. It is a word we have heard countless times over the course of 2020/21 and one the conference relentlessly advocates for. As one of the key pillars for ensuring these basic, financial and sociocultural needs are met, it sits alongside growth and sustainability.



Women, young people, and smaller enterprises are just a few examples of the groups disproportionately affected by Covid-19. The pandemic is contributing factor which has hit the most disadvantaged in society. In Togo, where I serve as Minister for financial inclusion, we have made it a priority for our micro loans programme to support women specifically. This has been immensely successful, with over CFA180bn distributed to 1.8m beneficiaries in the country, many of whom turned the initial grant from the state’s dedicated national fund into successful businesses. The retail and hospitality sectors in particular have seen incredible success stories.



The World Bank has argued that improved financial and digital access would be critical to reducing social exclusion during future crises, and maintaining access to basic services, as well as promoting digital entrepreneurship. In a&nbsp;<a href="https://linkscan.io/scan/ux/aHR0cHM6Ly9vcGVua25vd2xlZGdlLndvcmxkYmFuay5vcmcvaGFuZGxlLzEwOTg2LzM1ODcw/66459EFBDA2A87770551D3C1D04E4EAA059BAD46537EA136E4AAF423A7ADA95F?c=1&amp;i=1&amp;docs=1" target="_blank" rel="noreferrer noopener">report from earlier this year</a>, the institution noted efforts by the Togolese government to use mobile banking – the most inclusive form of banking in sub-Saharan Africa – to disburse cash payments quicker.&nbsp;



Prioritising microfinance objectives at localised levels is one way to push this agenda forwards. The African continent is&nbsp;<a href="https://linkscan.io/scan/ux/aHR0cHM6Ly9hcGouaGtzcHVibGljYXRpb25zLm9yZy8=/55B2153F1719CD5F0EC74C660F6EE77A8E9F9F97A277B3A17D94D2DDF18FCB4D?c=1&amp;i=1&amp;docs=1" target="_blank" rel="noreferrer noopener">home</a>&nbsp;to more digital financial services deployments than any other region in the world, yet a large number of marginalised groups do not necessarily reap the benefits. More initiatives need to ensure their services are representative of their populations.



I am proud of the strides forward we’ve made in Togo. We already have&nbsp;<a href="https://linkscan.io/scan/ux/aHR0cHM6Ly93d3cuYmNlYW8uaW50L3NpdGVzL2RlZmF1bHQvZmlsZXMvMjAyMC0xMS9SYXBwb3J0JTIwYW5udWVsJTIwc2l0dWF0aW9uJTIwaW5jbHVzaW9uJTIwZmluYW5jaWUlQ0MlODByZSUyMFVFTU9BJTIwLSUyMDIwMTkucGRm/DE0ACA963641AD046344FB3A09A2A624C453E7EC1D28F17CE0689B4A3C82E8E4?c=1&amp;i=1&amp;docs=1" target="_blank" rel="noreferrer noopener">the highest banking rate</a>&nbsp;in our West African monetary union: over 78% in 2019. In January I announced the Ministry’s plans to create a digital bank, not only for service optimisation, but as a way to consolidate a complete digital banking structure to support our economy, across the entire country. Despite our progress in terms of financial inclusion, I am conscious that digital divides persist, not least due to the lack of broadband access in large parts of Africa. We must bridge these gaps to ensure we deliver our inclusivity agenda in a sustainable way.



Just over ten years after the breakthrough of digital financial services in Sub-Saharan Africa,&nbsp;<a href="https://linkscan.io/scan/ux/aHR0cHM6Ly93d3cuaWZjLm9yZy93cHMvd2NtL2Nvbm5lY3QvOTZhNGY2MTAtNjJiMS00ODMwLTg1MTYtZjExNjQyY2ZlYWZkLzIwMTgwNV9EaWdpdGFsLUFjY2Vzc19UaGUtRnV0dXJlLW9mLUZpbmFuY2lhbC1JbmNsdXNpb24taW4tQWZyaWNhX3YxLnBkZj9NT0Q9QUpQRVJFUyZDVklEPW1kei1RRjA=/0C6BF51FE516F7F6D5C144F2B262BC9E8D447858E049ECB624979E8E97C3F4A6?c=1&amp;i=1&amp;docs=1" target="_blank" rel="noreferrer noopener">studies</a>&nbsp;show that access to mobile money services have played a massive part to help to tackle extreme poverty. As an example, in Togo they have been instrumental for enabling women to move from subsistence farming and unemployment to business occupations and sustainable livelihoods. Two thirds of the cash payments made by the Togolese government to our citizens through mobile banking have gone to women, demonstrating how women’s economic empowerment has been a key driver of economic inclusion programming.



These are critical developments but to withstand crises we must drive financial inclusion on a worldwide scale. We need cross-sector alliances to accelerate digital inclusion and connect critical sectors of the economy. In Togo I have been inspired by our beneficiaries who work in partnership with each other and whose businesses grow faster as a result, showing that this approach can boost innovation and increase long-term profitability.



For the market as a whole to evolve, successful collaboration and communication between market actors and regulatory authorities can make all the difference. For that reason, I believe African Microfinance Week to be a valuable initiative. Microfinancing is not a new concept, but it is truly transformative. Hand in hand with digitization, it has the potential to become accessible and inclusive. While there remains much to be done, homing in on priorities will help lay the foundations for a digital shift that has both a social and economic impact.



I will continue to do everything in my power for Togo to lead the way, because this is how we will, collectively, futureproof a truly inclusive economy and thrive in a post-pandemic world.

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