<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-521728496-820x547.jpeg" alt="" class="wp-image-398957" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-521728496-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-521728496-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-521728496-768x513.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-521728496-1536x1025.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-521728496-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Shopping malls, like the Bethlehem Placa, and bank buildings develop fast in Addis Ababa, the capital city of Ethiopia. It is the largest city in Ethiopia with a population of 3.4 million.</figcaption></figure>



When Tseganesh from Ethiopia was 14 years old, she became friendly with a man who was known to the family. Life already held challenges but with school closures due to the COVID-19 pandemic, circumstances changed significantly for her. The man offered her money to buy whatever she needed and shortly afterwards, he proposed to her. She soon realized that if she agreed, her hopes of continuing with her secondary education and studying at university one day were in jeopardy. Tseganesh returned the man’s money but he was insistent on marrying her. Thankfully, with the intervention of her father and the church elders, she did not have to agree to his wishes. She is now awaiting her eighth grade final exam results.



While her story ended happily, many girls in East and Southern Africa face a much harsher reality. They are vulnerable on many fronts—from child marriage to early and unintended pregnancies, violence, and HIV exposure. Lockdown measures instituted to control the COVID-19 pandemic, particularly the closure of schools, have exacerbated these existing vulnerabilities. The lives of children and families have been adversely affected around the globe, with many programmes to end child marriage severely impacted. Even before the pandemic, the cost of child marriage imposed a heavy burden on Africa. A 2018 World Bank study on the economic impacts of child marriage showed that child marriage is costing 12 African countries US$63 billion in income and human capital.



Projections by the United Nations Population Fund (UNFPA) in April 2020 showed that COVID-19 will disrupt efforts to end child marriage, potentially resulting in an additional 13 million child marriages taking place globally between 2020 and 2030 that could otherwise have been averted. This reality has been evident in countries such as Malawi, which recorded an 11 per cent increase in teenage pregnancies, and an additional 13,000 cases of child marriage from January to August 2020 compared to the same period in 2019. While many schools have been allowed to re-open this year, the risk of being exposed to gender-based violence (GBV), female genital mutilation and adolescent pregnancy remains for those who are unable to return. In addition, mega-trends of increasing conflict, climatic disasters and deepening poverty pose new challenges and underscore the importance of the Leave No One Behind principle.



With less than a decade remaining to meet the Sustainable Development Goal (SDG) 5 of Gender Equality by 2030, for UNFPA and the United Nations Children&#8217;s Fund (UNICEF), the co-conveners of the Global Programme to Accelerate Action to End Child Marriage (GPECM), these circumstances have made our work to end child marriage even more urgent. The GPECM empowered 7.9 million adolescent girls across 12 of the most high-prevalence or high-burden countries in Africa and beyond in its first four years (2016‒2019). The work continues in the challenging circumstances of the ongoing COVID-19 pandemic, and clear, decisive and immediate actions are required to ensure that we can meet this SDG target.



The GPECM was already designed around a well-defined package of proven interventions to reduce child marriage—through empowering girls, keeping them in school, and providing them with comprehensive sexuality education and access to adolescent-friendly sexual and reproductive health services. The programme also tackles cultural norms that drive child marriage and engages men and boys in an effort to end this harmful practice. The evolving COVID-19 pandemic has led UNFPA and UNICEF to explore new, innovative approaches and partnerships to ensure that the work of the programme continues, and that no girl is left behind.



A<a href="https://esaro.unfpa.org/en/publications/child-marriage-covid-19-contexts-disruptions-alternative-approaches-and-building"> </a><a href="https://esaro.unfpa.org/en/publications/child-marriage-covid-19-contexts-disruptions-alternative-approaches-and-building">Regional Brief on Child Marriage in COVID-19</a>, produced by UNFPA and UNICEF, highlighted the disruptions and alternative approaches that the two agencies have adopted to respond to child marriage in lockdown contexts in the GPECM countries. For instance, in Mozambique, a mini-drama of six episodes addressing COVID-19-related issues was broadcasted to young people with messaging on COVID-19, child marriage and GBV. In Uganda, para-social workers have been using mobile phones to continue their one-on-one interactions with vulnerable adolescent girls. This includes identification, assessment, and referral for response services and the Child Helpline, as well as following up on at-risk girls and families.



Digital platforms have been used more effectively to convey messages on child marriage and to continue online education for young people; life skills education has been adapted for community radios; sexual and reproductive health, HIV and GBV services have continued remotely or face to face, while observing COVID-19 health protocols; and partnerships with young people have enabled quick and effective outreach. These alternative approaches offer valuable lessons on how the GPECM can and should adapt to other rapidly evolving contexts.



On this International Women’s Day, we call on governments in East and Southern Africa to continue with investments that empower young girls and women, and to prioritize interventions to end child marriage in COVID-19 response and recovery processes. UNFPA and UNICEF, together with our partners in government, development, civil society and communities, will continue to find innovative ways to protect girls’ rights through delivering the support, resources, advocacy, education and information needed to ensure that no girl&#8217;s future is lost to early marriage.



Girls need to be able to hope and aspire to a bright future — a future where they are leaders who can challenge gender bias and lead the change for a more gender-equal world. Join us in our fight to say that enough is enough!



Let’s work together to end child marriage, once and for all.

Addis Ababa cityscape

Urgent Action Needed to Meet SDG to End Child Marriage by 2030

A global fake Covid-19 distribution network has just been dismantled in South Africa, highlighting the growing threat of illegal trade and counterfeit goods across the African continent. If left unchecked, there is no doubt the illegal industry will grow at a time when we face an unprecedented health and economic crisis.



Interpol, which represents 194 international police forces, said that 400 ampoules, equivalent to around 2,400 doses containing the fake vaccine, were found at a warehouse in Germiston, Gauteng in South Africa. Officers also recovered a large quantity of fake 3M masks and arrested three Chinese nationals and a Zambian national.



The COVID-19 pandemic has taken at least 104,000 lives across the African continent, pushing healthcare systems and providers to breaking point. Supply chains are disjointed, law enforcement and border forcer agencies stretched, allowing criminal networks to strengthen their hold on the black market.



The illicit trade in counterfeit goods and medicine is very much a global issue that has been building since the start of the COVID pandemic. In the spring of 2020, organized crime networks were already targeting US unemployment benefits systems and professed to sell vaccines when no vaccine yet existed. Now, with the development of several promising vaccines, criminals see expanded opportunities to deceive and defraud. As US Surgeon General Jerome Adams noted, “whenever there is a demand for something there will be nefarious people who produce counterfeit products”.&nbsp;



Mounting evidence indicates that such scams are already on the rise globally. China recently arrested the leader of a multi-million dollar vaccine scam, who made a profit of 18m yuan ($2.78m) by putting saline solution or mineral water in syringes and hawking them as COVID vaccines.



The U.S. FBI, Interpol and the World Health Organization, among others, warn of emerging pandemic-related fraud schemes. The risk of receiving a bogus vaccine is especially high when medicines are purchased online. With the approval of multiple vaccines, researchers have found that online advertisements for illicit vaccines have exploded and the asking prices have doubled or tripled, in some cases reaching more than $1500. As of late November 2020, U.S. Immigration and Customs Enforcement had seized more than $26 million in illicit proceeds and analyzed more than 69,000 COVID-19 domain names.&nbsp;



More recently, a bogus website, purported to belong to the drug maker Moderna, was shut down. According to Oded Vanunu, a cybersecurity researcher based in Israel, more than 1,700 new vaccine-related websites have cropped up since November.&nbsp; On the dark web, counterfeit COVID-19 vaccines are offered next to cocaine, opioid medications, handguns, and fake passports.&nbsp;



For consumers, the dangers extend beyond receiving a vaccine that does not protect against the virus.&nbsp; Counterfeit products may not do what they claim, and the ingredients could cause adverse effects or interfere with essential medicines. Substandard and falsified medicines can also create a false sense of security, leaving the individual vulnerable to infection and increasing the risk of transmission of the illness to others.&nbsp;



In addition, toxic reactions and dangerous side-effects will also serve to undermine the faith the public has in those vaccines that are genuine and effective. Finally, coronavirus vaccine scammers also put one’s financial security at risk. An analysis by Interpol’s cybercrimes unit found that of approximately 3,000 online pharmaceutical websites suspected of selling counterfeit products, more than half – 1,700 – contained phishing or spamming malware.&nbsp;



In a world of convergence, the illicit trade in pharmaceuticals is following a well-trodden path that was once the preserve of narcotics, arms, people trafficking, illegally harvested timber, endangered wildlife, gold and other natural resources, alcohol and illicit cigarettes.



The World Bank estimates the trade in illicit cigarettes was worth $40-50 billion each year before the pandemic struck, while the trade in illicit pharmaceutical is said to be worth around $4 billion. Clearly, without effective public policy and more stringent law enforcement, it is reasonable to suggest that the illicit trade in pharmaceuticals will probably go the same way as illicit tobacco.



With the International Chamber of Commerce predicting that global counterfeit trade will reach $4 trillion by 2022, there is a clear need for industry and governments to work together on this issue.



At a time of increasing demand, we must not let the counterfeiters capitalize on our fear and impatience. Consumers must be vigilant, and policymakers must be proactive. The promising vaccines becoming available provide hope that the end of the pandemic is in sight, but only if the public is treated with safe and efficacious drugs, the legitimate vaccines.&nbsp;



Dr. Kristina M. L. Acri, née Lybecker is an associate professor of economics at Colorado College and a senior fellow at the Fraser Institute

3D rendering Microscopic illustration of the spreading 2019 corona virus or Covid-19 on alpha layer black Background

Counterfeit COVID-19 vaccines rise, eroding trust and endangering us all

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1215267366-820x547.jpeg" alt="" class="wp-image-398627" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1215267366-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1215267366-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1215267366-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1215267366-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1215267366-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>3D rendering illustration of global futuristic abstract background</figcaption></figure>



Cynthia, a spaza shop owner in Johannesburg opens a fintech lender’s app and authorizes them to fetch her transactions from her mobile money account, which she uses to pay her bills, her bank account into which she deposits her weekly earnings and her money transfer account, which she uses to remit money to relatives.&nbsp;With a full view of her cashflow, she now gets approved for credit instantly and directly receives it into her preferred card. She also uses the app to find an affordable health insurance policy for her family, then sets a saving goal to meet the monthly premium and instructs her bank to save a certain amount every month to reach her&nbsp;goal, which once met, automatically enrols her and helps her prepare for difficult times&#8230;



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">Many of those who are financially unbanked or underserved have an existing relationship with a telco, fintech or micro finance company and so there is an opportunity for banks to benefit from “open data” or “open telco”.</blockquote>



Some innovations have the potential to transform an entire landscape. Apple revolutionized the mobile phone and changed how we connect and communicate with each other. Tesla has reimagined car manufacturing in a software-centred world. One technology that is promising to change how we experience money, and is set to reshape financial services is ‘open banking’.



Open banking&nbsp;can be the game changer for financial services in Africa, assisting individuals and small businesses who traditionally have been underserved by the financial sector.



And while open banking is likely to be a game changer for Africa, could Africa also create a paradigm shift for open banking?&nbsp;Many of those who are financially unbanked or underserved have an existing relationship with a telco, fintech or micro finance company and so there is an opportunity for banks to benefit from “open data” or “open telco”. A move towards such openness – from both the banks and the other parties &#8211; will be needed if we are to unleash the true potential of financial services and give both consumers and businesses greater choice and control.



<h2 class="wp-block-heading" id="h-what-is-open-banking">What Is Open Banking?&nbsp;</h2>



Open banking is a collaborative ecosystem in which customer-consented data is shared among financial institutions, merchants and fintechs. This data is exchanged through secure Application Programming Interfaces (APIs) and gives customers control of their data and provides them with better products and services. While the open banking experience varies across the globe based on regulatory specifications, there are three common themes:



<ul class="wp-block-list"><li>Data Access:&nbsp;Banks share customer-consented data—including payment, account, product, and financial information &#8211; with participants in the banking system to make customer experiences more seamless.</li><li>Customer Authentication:&nbsp;Banks enhance their customer authentication rules and consent management, often across multiple industries, to be more strict and more unified.</li><li>Transaction Initiation:&nbsp;Third Party Providers (TPPs) initiate payments—including card, mortgage, and loan payments, as well as investment decisions and stock purchases on behalf of customers.</li></ul>



<h2 class="wp-block-heading" id="h-how-will-it-unfold">How will it unfold?&nbsp;</h2>



Regulation has led the way in UK, EU, and Australia, while the US and India have been led by market forces where the sharing of account data is an accelerant of fast and smarter innovation.&nbsp;



On the African continent, Nigeria has recently announced their own regulatory framework establishing principles for data sharing between banks and the fintech ecosystem, that amongst other things stipulates access, technical and information security standards. The South African Reserve Bank has started industry consultations with a view to safeguard consumer data and manage cyber security risks specific to open banking payment solutions, particularly in the e-commerce environment.



There is a vibrant fintech community across both markets, comprising, e-wallets, Payments Service Providers (PSPs) s, TPPs and digital merchants, who can benefit from open banking. Simultaneously banks will be concerned about data protection, dispute management, liabilities, and implications on their services.



<ul class="wp-block-list"><li>This journey will be an evolution, not a revolution. Adoption will take time as we are seeing in Europe and will require stakeholders from across the new ecosystem – including regulators, third parties, and banks – to come together to address challenges in FOUR key areas: Create promising use cases with clear value for consumers and businesses while creating the right incentives (monetization/ Business model) for both banks and fintechs</li><li>Develop a level playing field and standardised mechanisms by which banks and TPPs and PSP’s interact</li><li>Establish ecosystem-appropriate solutions to maximise security and minimise participants’ exposure to fraud</li><li>Ensure rules, standards and infrastructure to manage consumer consent, safeguard consumers financial information, manage enquiries and resolve disputes</li></ul>



&nbsp;Mastercard is playing a leadership role in facilitating and encouraging a safe and successful move to open banking, which will increasingly underpin the workings of new digital economies.&nbsp;We recognise the importance of establishing consumer trust in this new ecosystem which&nbsp;will require cross-industry co-ordination, including regulators, and potentially investment.



We have also acquired a company called Finicity a leading North American provider of real-time access to financial data and insights, that further strengthens our ability to deliver on the open banking opportunity globally and has the potential to help facilitate the anticipated open banking evolution in Africa.



<h2 class="wp-block-heading" id="h-can-banks-monetize-open-banking">Can banks Monetize Open Banking?</h2>



Some open banking regulations, such as those in Mexico, allow banks to charge third parties a fee to access financial data. Others, such as in the EU, currently prohibit such charges. Regardless, any charges are nominal. Where incumbent banks once ran the risk of commoditization as providers of financial infrastructure to third-party providers, open banking is now recognized as a potential source of new revenue and a basis for innovation such as:



Bank as a third-party provider&nbsp;refers to banks sourcing services from third parties to address customer lifestyle needs. Recently,&nbsp;<a href="https://newsroom.mastercard.com/mea/press-releases/new-fintech-brand-launches-sas-first-open-banking-offering/https:/newsroom.mastercard.com/mea/press-releases/new-fintech-brand-launches-sas-first-open-banking-offering/" target="_blank" rel="noreferrer noopener">Mastercard teamed up with Spot Money South Africa</a>&nbsp;to launch Spot&nbsp;&#8211; the first open banking marketplace in South Africa. The app is a great example of how Spot Money’s customers can transact seamlessly and review tailormade financial offers such as loans, insurance, and lifestyle services from fintech partners -.



Banking as a service&nbsp;refers to banks distributing their financial services through third parties. Third parties can offer services on behalf of banks by providing login-by-bank solutions to allow for automated form-filling. Banks generally profit through improved customer acquisition and commissions.



Banking as a platform&nbsp;refers to banks opening their product suite up to third parties. Banks can create white-label offerings and provide a suite of services to fintechs to sell to customers. Banks can profit from revenue sharing but may also charge a fee to third parties in white-labeling cases.



<h2 class="wp-block-heading" id="h-a-game-changer-and-for-africa">A Game Changer? And for Africa?</h2>



In its simplest form, open banking is&nbsp;empowering consumers to access, use, and benefit from their financial data.&nbsp;The consumer may not recognise the term open banking but in time will appreciate, for example, their ability to set up smart budgeting tools that help with savings and auto switch insurance policies to get a better deal etc. from third parties.&nbsp;Imagine topping-up your investment in real-time because your investment provider knows you have money in your bank account? Or comparing interest rates for a small business loan without having a credit history or even applying for a cellphone contract without having to obtain stamped bank statements?



In Africa, where a large part of the population remains unbanked or underbanked, open banking has the potential to facilitate financial inclusion as it addresses access and affordability.&nbsp;While it is early days, the top five use cases for open banking in Africa could include:



<ul class="wp-block-list"><li>Small Business Finance Management:&nbsp;Africa is home to 50M+ small and micro businesses, many of whom have been significantly impacted by COVID-19. Open banking can enable these businesses to be paid more easily through a payment initiation service.&nbsp;In addition, it will be easier to retrieve cash flows and business information from banks to their suppliers, investors, and P2P lenders, critical to informing a lending decision. Premium APIs can provide access to business or director/owner information and credit scores directly into a third-party provider’s application to speed up commercial credit decision-making. </li><li>Thin File Scoring/ Instant Credit/&nbsp;Buy Now Pay Later Credit Bureaus, while somewhat mature in South Africa, only cover part of the population and in other African markets, bureau calls tend to be expensive for thin-file customers. By using the consumer’s banking transaction history such as regular rent payments, bill payments, or pay stabs, lenders can make better credit decisions for those who previously did not have access to credit. Open banking can enable alternative lenders to implement an API-based process and decision-making for instant approval of transactional credit or installments at the point of checkout in either face-to-face or e-commerce environments.</li><li>Account to Account Payment Initiation:&nbsp;This use case is already live today in South Africa for e-commerce albeit via Screen Scraping, which&nbsp;poses several concerns around dispute management, liability, and fraud. Open APIs, consumer consent management and agreed dispute rules will make payment initiation safer. </li><li>KYC and Account Opening:&nbsp;Africa has over 350 million unbanked individuals – and a particular challenge is last-mile onboarding in remote locations. Enabling agencies or fintech to conduct account opening and eKYC on behalf of banks can unlock access and efficiency. </li><li>Digital First Banking Experiences:&nbsp;Regardless of global differences, Covid-19 has had a consolidating effect worldwide. Even if digital banking—a basic tenet of open banking—wasn’t the norm in most regions before COVID-19, it is now. That’s not to discount the future of physical bank branches. As with any retailer, they provide complementary experiences in an online-offline fusion. But open banking isn’t only about smoother online banking experiences; it’s about improved financial planning for individuals struggling during the economic downturn.</li></ul>



Fintech and mobile banking players have already improved financial inclusion in Africa by developing affordable mobile payment and transfer solutions. By fully harnessing the potential of open banking, banks, telecommunication companies and other fintech players can further strengthen and broaden African financial markets, while providing consumers and businesses with greater choice and control.

asian man contactless payment with qr code in supermarket

Will Africa Create a Paradigm Shift for “Open Banking”?

Africa is a ready partner to the world, to fight the Pandemic



In a year that’s already had its fair share of headline-grabbing moments, it’s probably understandable that many people missed the news earlier this month that the African Union (AU) had secured 300 million doses of COVID-19 vaccine.&nbsp;



That’s a reflection of much of the way in which the pandemic in Africa has been covered. Whilst the pages of the world’s press have been gripped by the way in which the world’s richest and most powerful countries have grappled their way through the pandemic, the continent with some of the world’s poorest countries has largely been left to face the crisis alone.&nbsp;



And it has done remarkably well. Quietly but confidently, African leaders have taken steps to protect their people from the virus and its economic side effects. Not just securing vaccines but also putting in place a continent-wide supply chain for vital medicines and personal protective equipment (PPE) and instigating robust approaches to reduce the spread of the virus.



This has in part been facilitated by another underreported phenomenon from the continent &#8211; the slow but steady improvement in governance and cross-continental cooperation in Africa. Mo Ibrahim’s <a href="https://mo.ibrahim.foundation/iiag/downloads">Index of African Governance</a> shows that one in six African citizens are living in a country where governance has improved in the last ten years. Not only has this increased cooperation led to ambitious projects like the African Continental Free Trade Area (AfCFTA)coming into force; the shared experience of other recent health crises such as Ebola has left African countries alert to the challenges posed by the infectious diseases.



The wrong lesson to draw from this is that the rest of the world can continue to neglect Africa while it focuses on its own battle with the virus. This would be a serious mistake. The world’s poorest countries are facing the worst economic aftershocks of the global recession created by the pandemic and the associated threat of chronic food shortage. This threatens progress and stability and could yet undermine the response to the pandemic in many parts of the continent.



And while the vaccine doses secured by the AU make a solid start in protecting people across the continent, many millions more are needed to truly bring the virus under control &#8211; especially given the more alarming news of virulent new strains that threaten to dramatically increase the speed at which the disease spreads.



It’s in the interests of people everywhere to ensure this doesn’t happen. The world cannot afford safe havens in which the virus can thrive and evolve, and from which it can continue to threaten us all. In today’s interconnected and interdependent world, we won’t be free of this disease until we have brought it under control everywhere.&nbsp;



The discovery of effective vaccines is a triumph for both science and humanity &#8211; and an incredible feat to have achieved in less than a year. But there is a risk that defeat will be plucked from the jaws of victory if a small handful of countries monopolise early access to vaccines and the rest of the world is left to make do with the surplus. This trickle down approach to vaccine access simply isn’t a viable strategy &#8211; which risks extending the lifetime of the pandemic and doubling the number of lives it costs. Africa needs finance to underpin its own procurement strategy and a massive scaling up of manufacturing.&nbsp;



The economic costs of getting this wrong are equally devastating. A <a href="https://www.nber.org/papers/w28395">recent study</a> estimated that the world risks global gross domestic product losses of up to US$ 9.2 trillion this year through pursuing an uncoordinated approach with half of this cost borne by rich countries. To get businesses everywhere back on their feet, people back in work and economies growing again, we need to unlock the whole global ecosystem. Until we do that, vital markets and supply chains remain closed off. The lesson here is straightforward &#8211; unless and until Africa can trade again, not only does Africa suffer but all those countries, industries and businesses that trade with it.



The longer this goes on, the greater the risk of an economic crisis.&nbsp; To avoid this, African countries need an urgent economic stimulus, in the form of $650bn worth of Special Drawing Rights &#8211; the International Monetary Fund’s reserve asset &#8211; which shareholders can create exactly for the purpose of responding to crises: they should do so, transferring these SDRs to countries that need them most.



The real message from Africa is that the continent is ready and is taking control of its COVID response. Ready to be treated as a true partner in the mission to end this crisis; ready <ins>to </ins>purchase and roll out the vaccines it can access to protect its citizens; ready to play its key role in the global revival after the pandemic, and ready and waiting for cooperation from the international community.



Let’s hope the world is listening.  



Authored by: Mimi Alemayehou, ONE Campaign Board Member and Donald Kaberuka AU Special Envoy to Mobilise International Economic Support for Continental Fight Against COVID-19

Key Speakers Ahead Of The U.S.-Africa Leaders Summit

Africa is a ready partner to the world, to fight the Pandemic

<h2 class="wp-block-heading" id="h-is-it-time-to-reimagine-nigeria">Is it time to reimagine Nigeria?</h2>



It’s Africa’s largest economy and hosts some of the world’s largest proven oil and gas reserves. It’s poised to double its population to 400 million by 2050 and is home to a vibrant culture famed for its music, arts and literature. According&nbsp;the UK’s Department of International Trade the potential of Nigeria’s “markets, human capital and natural resources is enormous”.



Nigeria also has more than its fair share of social, economic and humanitarian difficulties, and its those challenges that our usually uppermost in our minds when we think of Nigeria.



It’s not difficult for international media outlets to produce a catalogue of bad news. The focus on difficulties can, and I would argue&nbsp;has, produced a distorted picture, one that is overly negative and overlooks some of the reasons to feel positive about the country and its development. &nbsp;



The focus on Nigeria’s difficulties is hardly a symptom of a cynical ‘bad news sells’ mindset – far from it. Rather it is because such stories are easy to cover. When it comes to terrorist attacks or natural disasters, they are immediate and newsworthy. Tales of economic difficulties conform to a stereotype, one that is neatly packaged into reports by international institutions.



Counterbalancing the dominant media narrative with success stories of Nigerian entrepreneurship and innovation, or of figures that are leading the country’s global cultural success, is simply more difficult. They are often stories of gradual progress, or on a smaller scale. In an era of squeezed revenues and budget constraints for media organisations, more resource-intensive stories can get drowned out.



Telling more positive stories about Nigeria is, however, essential. Perceptions in our world count for a lot and perceptions of success can stimulate progress. For that reason, positive developments, whether economic, cultural or political, should carry more weight in our media.



In Nigeria, there are so exciting many stories to tell. The country’s tech start-up scene is one of the fastest-growing in Africa, led by Lagos which can claim to hosting the closest thing to Silicon Valley in Africa. No wonder Facebook Founder Mark Zuckerberg is investing heavily in Nigerian Tech Incubators.



Nigeria is arguably the beating heart of African culture on the world stage. Nigeria’s ‘Nollywood’ film industry dominates the continent &#8211; it is second largest in the world, bested only by its Indian cousin. Meanwhile, Nigerian music has exploded across the world led by international stars like Burna Boy.



You might think that a tendency to cover negative stories doesn’t matter. But it has real-world, damaging consequences. When international media outlets fail to see the wood from the trees in countries like Nigeria, so too can international investors, governments and other institutions. In fact, an unflinching spotlight on a country’s challenges can have a stifling effect on efforts to solve them.



Take the example of terrorism, with which Nigeria has struggled in the past decade due to the emergence of the Daesh-aligned terrorist group, Boko Haram, and more recently the proliferation of armed bandit groups. The horrendous abduction of schoolchildren in Nigeria received media attention all over the globe in 2014. Yet such mass kidnappings continue to this day, and within the last week nearly 300 girls were kidnapped from a school in north-western Nigeria, in Zamfara state.



These atrocities are committed by armed bandit groups, and international media focus on terrorist attacks has in many ways made life more difficult for authorities who are under even greater pressure to pay ransoms to the armed groups responsible.



Negative perceptions of a country can also depress foreign direct investment. Even before Covid-19 hit, foreign direct investment into sub-Saharan Africa was on the decline, falling 10% in 2019. In Nigeria, capital in-flows declined by a whopping 91% when the pandemic struck. In a country that desperately needs foreign money to support infrastructure development and to seed capital for its fast-growing start-up community, a relentless drip of news about the security situation without the counterbalance of reports on positive developments is highly damaging.



The bad news cycle also percolates up to the top-level of government. As Dr Nicholas Westcott, Director of the Royal African Society,&nbsp;<a href="https://linkscan.io/scan/ux/aHR0cHM6Ly93d3cuZnQuY29tL2NvbnRlbnQvMTYyMmE5NTAtM2Y5Mi00ZWFhLWI0YTUtYTQzYzA5NDNlMDVk/81291C5F7A6F3AB601E74F2FD3A58B10935B6E6D66055585636CA9C2D79B717F?c=1&amp;i=1&amp;docs=1" target="_blank" rel="noreferrer noopener">pointed out in the Financial T</a>imes recently, Africa is excluded entirely from UK Prime Minister Boris Johnson’s plan for an expansion of June’s G7 to become a ‘D10’ democracy summit. Mr Johnson saw fit to invite Australia, India and South Korea but not two more of the world’s largest democracies – Nigeria and South Africa, both of whom are larger than Australia.



Their exclusion is a diplomatic oversight that undermines the credibility of the initiative from the outset. It is also a missed opportunity to elevate countries that can show a path forward for other nascent democracies in Africa this century. But it also reveals a mindset that media narratives help to sustain: that Africa is a box of problems that is best left to one side.



Peter Burdin, is the BBC’s former Africa Bureau Chief

lekki-ikoyi bridge

Why positivity matters: the Nigeria case

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1242244235-820x547.jpeg" alt="" class="wp-image-397888" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1242244235-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1242244235-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1242244235-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1242244235-1536x1025.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1242244235-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>scuba diver floating near to corals on ocean floor.</figcaption></figure>



It’s well known that Africa is rich in biodiversity. An estimated <a href="https://www.tandfonline.com/doi/full/10.1080/20964129.2018.1530054">one-fifth of all known species</a> of mammals, birds and plants are found in the continent. However, species abundance and diversity is in decline in Africa, with climate change being one of the greatest threats to biodiversity.



And Africa is facing increased threats of biodiversity loss. <a href="https://www.theguardian.com/environment/2018/nov/03/stop-biodiversity-loss-or-we-could-face-our-own-extinction-warns-un">By 2050</a>, it’s estimated that over half of African bird and mammal species are expected to be lost.



The <a href="https://www.oneplanetsummit.fr/en">One Planet Summit</a> that took place earlier this year saw world leaders convene virtually to discuss ways in which to protect biodiversity with funding being a key issue. With biodiversity facing an annual <a href="https://www.euractiv.com/section/energy-environment/news/one-planet-summit-no-climate-fix-without-biodiversity/">funding gap of US$711 billion until 2030</a>, according to the United Nations Secretary General Antonio Guterres.



Funding is key to conserving biodiversity and offsetting loss, but for most of the time, biodiversity funding is sidelined. But as <a href="https://www.theguardian.com/global-development/2014/apr/19/homegrown-philanthropy-local-giving-global-south">philanthropy</a> booms in Africa, there’s an increasingly strong case for deploying philanthropic capital to help offset biodiversity loss.



The case for philanthropy



Philanthropic foundations can use their financial power to help offset biodiversity loss.



Philanthropy has <a href="https://ssir.org/givingwithimpact">excelled in efforts</a> to support everything from the eradication of polio to increasing access to education to millions across the world.&nbsp; Now is the time to extend these efforts to sustainable development by supporting biodiversity conservation and habitats.



As philanthropists have the agility to take risks in underfunded sectors, they can play a catalytic role in supporting initiatives that may not otherwise attract traditional development funding.



First, philanthropists can help fill the gap by strategically deploying capital to kick start conservation efforts.



Take conflict zones, where the impact of conflicts on the natural environment is detrimental and often underestimated. For example, during the civil war in Mozambique, the <a href="https://www.dw.com/en/literally-bringing-life-back-to-mozambiques-gorongosa-national-park/a-40968419">Gorongosa National Park Mozambique</a> which was once one of the most biodiverse areas on our planet, lost 90 per cent of its wildlife. However, a decade later, more than <a href="https://www.nationalgeographic.com/animals/2018/12/african-wildlife-is-rebounding-gorongosa-national-park/">100,000 large animals</a> inhabit Gorongosa due to strategic philanthropic investments from the <a href="https://www.nationalgeographic.com/animals/2018/12/african-wildlife-is-rebounding-gorongosa-national-park/">Carr Foundation</a>. Philanthropist Gregory Carr pledged <a href="https://www.smithsonianmag.com/travel/greg-carrs-big-gamble-153081070/">$40 million over 30 years</a> to help restore the park, and the park could now reach pre-war animal population levels.



Second, philanthropists can help shape the agenda and raise much-needed awareness.



While philanthropy alone cannot make up the shortfall in biodiversity conservation funding, philanthropic capital can be channeled to raise awareness to the growing nature-based threats and canvass public opinion. For example, philanthropic capital can be deployed to support <a href="https://fundraising.co.uk/2019/05/23/invest-more-funding-to-tackle-climate-change-scientists-urge-funders/?cmpredirect#.XULS4ZNKjVo">civil society and social movements, green investment in research and development and strategic litigation and public education</a>.



These soft approaches could provide the incentive needed to help offset biodiversity loss by shining a light on activities such as illegal wildlife trade and harmful resource extraction methods. And this in turn can ignite a groundswell of public support, prompting governments to respond and provide the political will needed to move the needle.



Third, philanthropists can ‘biodiversity proof’ their donations. This can be done by assessing the impact their funded projects/programs have on biodiversity. Philanthropic institutions can then scale back funding of projects that are deemed harmful to biodiversity. A changing of practices and greater due diligence is a small price to pay in the long-term.



Reaching a tipping point



Biodiversity is vital for sustainable development and without a healthy environment, poverty alleviation efforts could be undermined or at worst reversed.



While evidence shows that we are reaching a tipping point, there’s still time to act.



There’s a compelling case for philanthropy to lead efforts and champion biodiversity conservation in Africa and nature should be at the heart of the prioritization and allocation of philanthropic capital.



Although the next decade presents a myriad of challenges, the potential for transformation is even greater. And now is the time for philanthropy to step up.



Maram Ahmed is a Senior Fellow at the School of Oriental and African Studies at the University of London

Corals underwater

How philanthropy can help conserve biodiversity in Africa

By Kandeh Yumkella, former UN Under-Secretary-General and Chair of UN-Energy and Nick Hurd, Senior Adviser to Bboxx and former UK Minister*



Access to modern clean cooking services, especially via Liquified Petroleum Gas (LPG), is a key part of achieving the United Nations’ Sustainable Development Goal 7 – to ensure access to affordable, reliable, sustainable and modern energy for all. However, it is too often overlooked.



It is unacceptable that in 2020 the <a href="https://www.esmap.org/the-state-of-access-to-modern-energy-cooking-services">vast majority of the population</a> in sub-Saharan Africa do not have access to clean, reliable, and affordable fuels and technologies for cooking. More global attention urgently needs to be given to this ‘silent killer’ development issue.



<h2 class="wp-block-heading" id="h-the-costs-of-inaction-on-clean-cooking">The costs of inaction on clean cooking</h2>



The underlying failure to act on the clean cooking crisis carries an exponentially high cost. The World Bank recently noted that this currently <a href="https://www.worldbank.org/en/news/press-release/2020/09/24/nearly-half-the-worlds-population-still-lacks-access-to-modern-energy-cooking-services">costs the world over $2.4 trillion each year</a>, due to the negative impacts on people’s health, the environment, gender equality, and lost economic opportunities. Cooking with dirty fuels is expensive and there is a high opportunity cost attached to the longer time needed to cook and to collect firewood.



The costs to the environment are dire as cooking with wood has been responsible for vast swathes of deforestation and land degradation. In Uganda alone, 80% of rural households use firewood for cooking which is contributing to <a href="https://www.worldbank.org/en/news/feature/2019/05/31/ugandan-government-steps-up-efforts-to-mitigate-and-adapt-to-climate-change">deforestation at an alarming rate</a>. Similarly, cooking with charcoal emits extremely damaging carbon emissions.



The World Health Organisation has warned that indoor air pollution from cooking with dirty fuels is causing <a href="https://www.who.int/news-room/fact-sheets/detail/household-air-pollution-and-health">four million premature deaths</a> a year, due to heart disease, stroke, chronic obstructive pulmonary disease and lung cancer. These profoundly negative impacts are also disproportionately harming women. On the front line &#8212; <a href="https://www.wlpga.org/wp-content/uploads/2019/07/Cooking-with-Gas-Why-Women-in-Developing-Countries-Want-LPG-and-How-They-can-Get-It.pdf">collecting, transporting and cooking with firewood</a> &#8212; women are shouldering the physical burden and are predisposed to risks of violence. Additionally, the time spent on these actions cuts into the time that could be spent on leisure and employment.&nbsp;



However, it is now increasingly well-known that LPG can be a more viable, affordable and significantly cleaner alternative to traditional fuels used to cook in the Africa. LPG is a clean burning fuel and its <a href="https://www.wlpga.org/publications/communications-toolkit-2/proof-points/">carbon footprint is 50% lower</a> than coal.&nbsp;



Yet inaction continues – and it is simply costing too much. This issue cannot be ignored any longer.



A historic lack of concerted political urgency has been the key factor in the slow progress to resolve the clean cooking crisis. Greater political will is now fundamental if we are to significantly move the needle on this issue.



<h2 class="wp-block-heading" id="h-momentum-to-build-on">Momentum to build on</h2>



Looking at intra-governmental progress, a High-Level Coalition of Leaders for Clean Cooking, Energy and Health has been established, which includes political representatives from ministries of health, energy, and finance from around the world. Led by Kandeh Yumkella, this body has accomplished significant developments to-date in rallying political leaders around this important issue. In addition, global bodies like the World LPG Association and the Clean Cooking Association are doing important work in raising awareness of this global problem.



Recent commitments and targeted actions by African governments should also be celebrated. Just last year, the <a href="https://www.renewablescongress.org/2020/01/mru-conference/">Mano River Union sub-regional conference</a> on renewable energy and clean cooking, including Sierra Leone, Liberia and Guinea, led to a joint call by MPs and Ministers for ‘determined actions on clean cooking, at the highest level’. Earlier this year, Rwanda’s government introduced a <a href="https://www.newtimes.co.rw/news/government-ban-charcoal-use-kigali">charcoal cooking ban in Kigali</a>. Kenya will soon be launching the second Kenya Off-Grid Solar Access Project facility which includes a subsidy for clean cooking.



Private technology companies also have a significant part to play. Next generation utility Bboxx, which has positively impacted the lives of over one million people through access to solar energy, recently <a href="https://www.bboxx.com/press-releases/bboxx-and-usaid-partner-to-expand-clean-cooking-access/">partnered with USAID</a> to increase clean cooking access in the Democratic Republic of Congo. This is one of largest Pay-As-You-Go (PAYG) clean cooking programmes in Africa to-date. <a href="https://data.worldbank.org/indicator/EG.CFT.ACCS.ZS?locations=CD">Only 4% of the DRC population</a> has access to clean cooking facilities – and this initiative will leverage innovative PAYG technology to make clean cooking accessible at scale. This shows how technology and innovations in this sector have grown in leaps and bounds in recent years.



<h2 class="wp-block-heading" id="h-oil-and-gas-companies-can-also-play-a-role-in-the-shift-to-sdg-7">Oil and gas companies can also play a role in the shift to SDG 7</h2>



It is vital to consider the other pieces of the puzzle in making clean cooking access a reality for everyone in Africa. Oil and gas companies will be instrumental in developing this area as many are repositioning their businesses and pivoting towards clean energy, with a key focus on how to increase access to LPG which is needed for clean cooking.



For example, a coalition which brings together a wide variety of industry actors, including Bboxx, is exploring ways in which LPG can accelerate progress on UN SDG 7. Looking at developments across the sector, Shell has been <a href="https://www.shell.com/sustainability/communities/access-to-energy/clean-cooking-solutions.html">working with the Clean Cooking Alliance</a> to help tackle this issue using innovative technologies, and Vitol-backed Eni Ghana and the World Bank <a href="https://bioenergyinternational.com/heat-power/eni-ghana-and-world-bank-sign-mou-on-clean-cooking">signed a Memorandum of Understanding</a> earlier this year to expand access to clean cooking too.



<h2 class="wp-block-heading" id="h-political-will-must-be-backed-by-a-drastic-scale-up-of-funding">Political will must be backed by a drastic scale-up of funding</h2>



Nevertheless, the lack of collective political urgency and consequently funding, is a major stumbling block to this sector’s development. While there is indeed momentum to build on, billions of dollars will still be required in public and private funding for modern energy cooking solutions to take off.



Whilst the <a href="https://www.worldbank.org/en/news/press-release/2020/09/17/world-bank-project-to-boost-household-access-to-affordable-energy">World Bank officially launched</a> the $500 million Clean Cooking Fund within Rwanda in recent months, it is vital that more countries be made recipients to the Fund. Other investors need to join and contribute too, as no one entity can tackle this issue alone. Subsidies should increasingly be explored by governments across Africa to ensure that clean cooking solutions can be scaled in a way that is affordable for all.



Catalysing private sector participation and synergies with governments will be the key to unlocking the true potential of the nascent clean cooking sector. Companies like Bboxx can leverage existing expertise gained from off-grid Solar Home Systems and apply this to the clean cooking sector. Know-how of the business models, distribution networks and customer relationships are needed to get this sector off the ground.



Ultimately, we need to build a policy environment that helps companies to lower costs, grow and innovate more quickly, and blended financing is required at scale to achieve this.



We are still a long way off meeting UN SDG 7. But if we can collectively convey the political urgency of this essential sector, we can truly transform lives and drive forward meaningful progress on clean cooking access in Africa.&nbsp;



__



* The Right Hon Nick Hurd is Senior Advisor to Bboxx, a next generation utility which manufactures, distributes and finances decentralised solar powered systems in developing countries. He served as a Member of Parliament in the UK for fourteen years before standing down in December 2019. His experience includes service as UK International Development Minister at the Department for International Development (DFID), where he led the Energy Africa campaign to support the acceleration of the off-grid movement. He also served in the Department for Business, Energy &amp; Industrial Strategy (BEIS) as Minister of State for Climate Change and Industry, and in the Cabinet Office as Minister for Civil Society.



Dr. Kandeh K. Yumkella is the Former United Nations Under Secretary-General. He was also previously the first Special Representative of the Secretary-General for Sustainable Energy for All and chaired UN-Energy, the coordination body of United Nations agencies dealing with energy related issues. Additional roles have included the Director-General of the United Nations Industrial Development Organization (UNIDO) and a former Minister for Trade, Industry and State Enterprises of Sierra Leone from 1994-1995. He holds a Ph.D. in Agricultural Economics from the University of Illinois, a M.Sc. Agricultural Economics, Cornell University; and a B.Sc. in General Agriculture, from Njala University College, Sierra Leone.

Greater Political Will Urgently Needed to Tackle Clean Cooking crisis in Africa

General elections will be held in Tanzania on Wednesday, October 28.



In the build-up to the vote, President John Magufuli’s administration has been intensifying its crackdown on the opposition as he seeks a second term in office.



Earlier this month, the National Electoral Committee (NEC) imposed a week-long ban on Mr Magufuli’s biggest challenger, the Democracy Party&#8217;s (Chadema) Tundu Lissu.



Just over a week later, the Zanzibar Electoral Commission (ZEC) also banned the Alliance for Change and Transparency’s (ACT-Wazalendo) presidential candidate for Zanzibar, Seif Sharif Hamad, from campaigning in the semi-autonomous region for five days.



Mr Hamad is the biggest challenger in the Zanzibar race to the ruling Revolutionary Party’s (CCM) candidate, Hussein Mwinyi.



Mr Magufuli received a great amount of praise when he came into office in 2015. He publicly fired officials who were considered to be corrupt or underperforming.



However, as his time in office progressed, he increasingly closed up on the democratic space in Tanzania.



The media nicknamed him ‘Bulldozer’, or ‘Tingatina’ in Swahili, initially because of his directives as the minister of public works, but the name has stuck due to his aggressive ways as president.



Over the years, his administration has made it essentially impossible to express dissent from the ruling regime without facing legal consequences.



When Mr Magufuli took office in 2015, Tanzania ranked 75th in the Reporters without Borders World Press Freedom Index. It is now 124th.



Opposition politicians and journalists who speak up are subject to arrests and intimidation by state security forces, which has resulted in self-censorship.



In August, the Tanzania Communications Regulatory Authority banned local media from broadcasting foreign content without state approval and made a law that requires foreign journalists to be accompanied by a government-appointed officer when covering local stories.



Mr Lissu, despite his high international profile, has been subject to serious intimidation by state security forces. In September, police teargassed his convoy.



Local media seems reluctant to cover his campaign, but the large, enthusiastic crowds are well documented on social media.



Censorship has also made it difficult to determine how strong the general support for Mr Lissu is.



The only opinion polls ahead of these elections show that the public favours Mr Magufuli, but this should not be viewed as the whole truth.



In 2018, civil society organisation Twaweza published an opinion poll showing that Mr Magufuli’s popularity had plummeted. The government subsequently banned Twaweza head Aiden Eyakuze from travelling outside Tanzania and made it mandatory for organisations to get state approval before publishing surveys.



Cooperation between the opposition parties may help them.



Chadema and ACT-Wazalendo initially entered what they called a ‘loose collaboration’, but on 16 October, the chairperson of the latter party, Zitto Kabwe, officially pledged his support for Mr Lissu in a statement.



After the Registrar of Political Parties informed them that it was too late to form a coalition, Mr Kabwe made it clear that the parties are merely endorsing each other’s presidential candidates.



Parliamentary and council candidates will still contest on their own parties’ tickets.



Mr Kabwe also wrote in an article published in South Africa’s Daily Maverick that “the best way to remove Magufuli &#8230; is for [the opposition] to unite behind Lissu”.



He has called upon other opposition parties to follow ACT-Wazalendo and “do what is best for Tanzania”.



ACT-Wazalendo’s presidential candidate for the Union presidency, Bernard Membe, has not campaigned since early September without any reason given, but, at a press conference on Monday, October 19, he reiterated that he was still in the running for the presidency.



He also warned religious leaders to avoid directing their followers to vote for a particular candidate, as it would trigger “religious violence that is not easy to resolve”.



Although the opposition parties are endorsing each other’s candidates, Mr Magufuli is likely to win a second term in office, even if it is by illegal means.



The 2015 elections in Zanzibar is an indication that the ruling party is willing to do whatever it takes to secure a victory, which will further contribute to the deterioration of democracy in Tanzania.



In his second term in office, we expect that Mr Magufuli’s administration will intensify its tight grip on civil society and continue on this path of authoritarianism.



If he is re-elected, Mr Magufuli has promised to continue strengthening the country’s economy, fighting corruption, and improving key infrastructure to facilitate business operations, such as the oil pipeline agreement recently signed with Uganda, but his authoritarian streak has resulted in some intimidation of foreign companies and has had a negative effect on investment.



We think such incidents will keep happening in his second term and will keep making potential investors cautious.



Zaynab Mohamed &#8211; Political Analyst

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Tanzania – Will Magufuli bulldoze his way through the elections?

Open Letter to the President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria October 21, 2020 



President Buhari, You appealed to Nigerians to give you a mandate in 2003, 2007 and 2011. In 2015, you walked among the people. Nigerians, young and old, walked with you. On May 29, 2015 we swore you in. You pledged to serve Nigeria, to “celebrate her freedom and cherish her democracy”. You said to Nigerians that, “together we cooperate to surprise the world that had come to expect only the worst from Nigeria.” 



You, saluted Nigerians for waiting long hours in rain and hot sunshine to register and cast their votes and stayed all night if necessary, to protect and ensure their votes count and were counted. You thanked those who tirelessly carried the campaign on social media. President Buhari, this is an urgent call from those who gave you this mandate: tell the armed forces to stand down and stop shooting at or killing unarmed Nigerians. Undeniably, the lives of young Nigerians are being shed in hopes of a better Nigeria, which you chose to serve.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2020/07/Muhammadu_Buhari_-_Chatham_House.jpg" alt="" class="wp-image-376011" width="694" height="756"/><figcaption>President Buhari</figcaption></figure>



In the last two weeks, Nigeria has seen an intergenerational call for a better country through better governance. It was led by the youth and it was peaceful. Given your experience running for office, where there is a crowd there are opportunists that seek to infiltrate and cause havoc. This was not the protesters, they remained peaceful. However, Mr. President, the democracy, which you choose to uphold, necessitates that the people speak. The rot in the system is undeniable. Nigerians at home and abroad were expressing their displeasure. That same groundswell that gave you a mandate was speaking to you, but our cries were met with a bloody flag. In spite of the denials, we are in a new age of social media, some of us were on ground while some watched on social media what transpired. The world watched alongside with us. Mr. President, the armed forces should never be said to harm or kill its own unarmed people. We appeal to your duty as the Commander-in-Chief, your decision to be the democratically elected President of Nigeria and your role as a Father: stay the bullets of the armed forces. As a democratic nation, Mr. President, we will continue to speak, we will continue to call out the rot in the Nigerian system, we have just one country. The same way you fought for it, we will fight for it. The Undersigned Archbishop Desmond Tutu Leadership Fellows of Nigeria: Abayomi Awobokun Ada Osakwe Adebola Williams Aderonke O. Onadeko Bibi Bakare-Yusuf Bosun Tijani Bowale Adeoye Danladi Verhijen Debisi Araba Emmanuel Ogejuma ‘Gbenga Sesan Ifeoma Malo Jude M.I. Abaga Mezuo Nwuneli Mosunmola Umoru Ogochukwu Ekezie Omoni Oboli Onyinye Ibeneche Avbovbo Sadiq Usman Samson Itodo Serah Zainab Ugbabe Temi Awogboro Tomiwa Aladekomo Toyosi Kolawole The Archbishop Desmond Tutu Leadership Fellows (“Tutu Fellows”), of the African Leadership Institute, are a diverse group of civic, political and business leaders from 40 African countries who are concerned with the governance and development of the African continent.

Muhammadu_Buhari_-_Chatham_House

Opinion: Open Letter to President Buhari of Nigeria

By Wole Soyinka To the affected governors all over the nation, there is one immediate step to take: demand the withdrawal of those soldiers. Convoke Town Hall meetings as a matter of urgency. 24-hr Curfews are not the solution. Take over the security of your people with whatever resources you can rummage. Substitute community self-policing based on Local Councils, to curb hooligan infiltration and extortionist and destructive opportunism.



 I arrived home from external commitments just over a week ago to an extraordinary homecoming gift. It took the form of a movement &#8212; sometimes angry, sometimes entrancing, poignant, sometimes strident, certainly robust in expectations but always moving, visionary and organized. That movement demanded an end to brutality from state security agencies, focusing on a notorious unit known as SARS. But, of course, SARS merely stood for the parasitic character of governance itself in all ramifications. That dimension – albeit not in those very terms of course – was acknowledge by the first formal response of government, delivered through the Vice-President. The movement involved members of the Nigerian Bar Association, Feminist Groups, Professionals, Technocrats, Students, Prelates, Industrial institutions, and Artistes – writers, cineastes, actors, musicians. It was markedly a youthful movement, its energy, creativity and resolve diffused throughout the nation through impressive strategies.



 It was,above all, orderly. In places, one felt vibrations that seemed to echo concert grounds like Woodstock, other times, the massed processions of France’s Yellow vests or waves of Lech Walesa’s Solidarity movement. Even closer, more recently and pertinent, the patient, stoical gatherings in Mali that lasted weeks and, in whose resolution, our own nation played a critical role. As I stated in my Message to Youth at the Freedom Park 10th anniversary events on Saturday, 17th, these youths brought fresh blood into tired veins. It was bliss indeed to be alive, to watch youths finally begin to take the future into their own hands.



 But – and haven’t we been here before? &#8212; suddenly, virtually overnight, it all changed. State security services – which specific branch, we have yet to identify – transported thugs to break up the protests. The videos exist, they have been widely disseminated – sleek motorcades with number plates covered – moved to recruit and disgorge thugs and breeds of hoodlums to break up the peaceful protests. Those mercenaries set fire to the protesters’ vehicles where parked, set upon the gathered youths with cudgels and machetes. 



They broke open at least one prison to let out the inmates. It has since been established that some of those vandals were actually recruited prisoners who, we can only presume, have been paid not only in cash but in kind. Casualties began in single, sporadic numbers, climaxing in the shooting dead last night of a yet undetermined number of protesters in a Lagos sector called Lekki.



 The mood, and climate of protest changed abruptly, and devastatingly with that diabolical intrusion. For the first time, anger and nihilism entered the lists, moving to dominate emotions. Organized militancy has been replaced by vengeful, omni-directional hatred. The capital, Abuja, has been torched in places, including the famous Apo market – that name itself evoking memories of an ancient massacre of youth – known as the APO Six &#8212; by SARS. Yesterday, October 20, I set out to drive to my hometown, Abeokuta, to be on my own turf as the violence was spiraling mindlessly in multiple directions. After negotiating my way through some eight or nine protesters’ road-blocks, I was compelled to turn back. It was all déjà vu – the uprisings in the former Western Region of Nigeria, the anti-Abacha movement etc. etc. etc. The attempt however enabled me to assess the



mood and transformation of the movement. I was better prepared. I rescheduled my trip for the following day ,– that is, this morning. In the meantime, however, that is, within the next eight to ten hours, the tension has become unimaginable! At that earlier mention Lagos sector, Lekki, where most of the affirmative action gatherings had taken place, soldiers opened fire on unarmed demonstrators, killing and wounding a yet undetermined number. One such extra-judicial killing has drenched the Nigerian flag in the blood of innocents – and not symbolically. The video has, in accustomed parlance, ‘gone viral’. I have spoken by phone to eye-witnesses. One, a noted public figure has shared his first-hand testimony on television. The government should cease to insult this nation with petulant denials.



 I resumed my trip to Abeokuta at 6 am, this morning as scheduled, again negotiating road-blocks -– this time somewhere between twelve and fifteen, all distinguished by an implacable state of rage. It was in stark contrast to the inclusivity of the protesting ‘family of common cause’ of earlier days. All inherent beauty of instant bonding and solidarity evaporated. At the block just before the Lagos Secretariat, the protesters proved the most recalcitrant. In the end, they exacted from me just the one offering to the rites of passage – I could sense it coming &#8212; I had to come down from the car and addressed them. I did. Little did they know what was churning in my mind: This is not real. This is Back to Abacha – in grotesque replay!



 It is absolutely essential to let this government know that the Army has now replaced SARS in the demonic album of the protesters. My enquiry so far indicates that the Lagos governor did not invite in the Army, did not complain of a ‘breakdown in law and order’. Nevertheless, the Centre has chosen to act in an authoritarian manner and has inflicted a near incurable wound 6 on the community psyche. Need I add that, on arrival in Abeokuta, my home town, I again had to negotiate a road block? That went smoothly enough. I expected it, and have no doubt that more are being erected as this is being written. It is pathetic and unimaginative to claim, as some have done, that the continued protest is hurting the nation’s economy etc. etc. COVID-19 has battered the Nigerian economy – such as it is for over eight months. Of course it is not easy to bring down COVID under a hail of bullets – human lives are easier target, and there are even trophies to flaunt as evidence of victory – such as the blood-soaked Nigerian flag that one of the victims was waving at the time of his murder. To the affected governors all over the nation, there is one immediate step to take: demand the withdrawal of those soldiers. Convoke Town Hall meetings as a matter of urgency. 24-hr Curfews are not the solution. Take over the security of your people with whatever resources you can rummage. Substitute community self-policing based on Local Councils, to curb hooligan infiltration and extortionist and destructive opportunism. We commiserate with the bereaved and urge state governments to compensate material losses, wherever. To commence any process of healing at all – dare one assume that this is the ultimate destination of desire? &#8212; the Army must apologize, not merely to the nation but to the global community – the facts are indisputable – you, the military, opened fire on unarmed civilians. There has to be structured restitution and assurance that such aberrations will not again be recorded. Then both governance and its security arms can commence a meaningful, lamentably overdue dialogue with society. Do not attempt to dictate &#8212; Dialogue!

wole soyinka

DÉJÀ VU – In tragic vein: Wole Soyinka on Nigeria’s unrest

The tourism economy has been heavily hit by the coronavirus (COVID-19) pandemic, and measures introduced to contain its spread. Depending on the duration of the crisis, revised scenarios indicate that the potential shock could range between a 60-80% decline in the international tourism economy in Tourist Arrivals in South Africa increased to 62841 in June from 49481 in May of 2020, a positive outcome that portrayed a possibility to reset the tourism curve closer to pre COVID-19 outbreak. As has been an ongoing trend over the last four years, Travel and Tourism competitiveness continues to improve worldwide, and connectivity enabling—and enabled by—the industry remains on an upward path. 



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1110" height="730" src="https://www.cnbcafrica.com/wp-content/uploads/2020/07/tourism-1845203_1280-1110x730.jpg" alt="" class="wp-image-375388" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/07/tourism-1845203_1280-1110x730.jpg 1110w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/tourism-1845203_1280-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/tourism-1845203_1280-820x539.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/tourism-1845203_1280-768x505.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/tourism-1845203_1280-696x458.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/tourism-1845203_1280-1068x703.jpg 1068w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/tourism-1845203_1280-600x395.jpg 600w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/tourism-1845203_1280.jpg 1280w" sizes="auto, (max-width: 1110px) 100vw, 1110px" /></figure>



What measures are needed to build resilience and address the challenges confronting the sector pre and post COVID-19 such as sustainability, climate change, digitalisation, health crises and other external shocks and ensure local businesses and communities reap the benefits of this growth? 



Tourism is a steadily growing and economically important sector globally and locally. It makes significant contributions to job creation, export revenue, and domestic value added, and helps improve the attractiveness and well-being of places, not only as destinations to visit, but also to live, work and invest.



 Tourism Trends in 2020 outlines digitalisation and sustainability to drive the industry post Covid-19.South African tourism recovery is dependent on funding for small medium enterprise and transformation. Travel and Tourism industry has completely changed and we need to move forward, we mustn’t force to hold back, we must move forward and adapt to the digital innovation and platforms that are part of the future of tourism globally and South African economy.



 The economic recovery in Tourism sector has an important role to play in placing the South African economy on a sustainable inclusive growth trajectory. Promoting growth and development of the tourism sector and Promoting the practice of responsible tourism for the benefit of South Africa and for the enjoyment of all its residents and foreign visitors, must be the responsibility of all South Africans from promoting our cultural heritage, improving our local tourism, improving our hospitality to local and global tourists with an understanding that all our visitors play a critical role in boosting our GDP, Job Creation and Investment.



 On average, The Travel and Tourism Sector directly contributes 4.4% of GDP, 6.9% of employment and 21.5% of service exports in OECD countries. It is of vital economic, social and cultural importance, and offers real prospects for sustainable and inclusive development; however, integrated and forward looking policies are needed to ensure this growth better delivers benefits for people, places and businesses. The Tourism Sector in South Africa, directly accounted for 2.8% of real gross domestic product (GDP) and The indirect contribution of the Tourism Sector to the economy’s GDP in 2018 was at 8.2%. Transformation is a hidden challenge in the South African tourism industry and pro broad based policies are needed to rebalance the sector to portray the South African diversity.



 The future of tourism will be impacted by large-scale social, economic, political, environmental and technological changes, bringing new and often unseen challenges, threats and opportunities. These “megatrends” are slow to form, but once they have taken root, exercise a profound and lasting influence on human activities, processes and perceptions, including for tourism. Four megatrends are likely to have significant impacts and relevance for tourism: evolving visitor demand; sustainable tourism growth; enabling technologies; and travel mobility.



 The tourism sector and related industries are parts of the global economy set to be affected by a variety of megatrends. For instance, the International Air Transport Association (IATA) predicts that passenger demand over the next 20 years will be impacted by the emerging middle class in developing countries, diverging demographic outlooks, increasing liberalisation of aviation markets, and climate change (IATA, 2016). Based on feedback from member and partner countries, industry and international organisations, this chapter will explore similar trends, in relation to: Evolving visitor demand, Sustainable tourism growth, Enabling technologies, Travel mobility.



 When considering its likely evolution over the coming decades, it is clear that tourism will be transformed by large-scale social, economic, political, environmental and technological changes. While slow to form, once such “megatrends” have taken root, they exercise a profound and lasting influence on human activities, processes and perceptions. Megatrends bring new and often unseen challenges,threats and opportunities, the impacts which may vary between the economy as a whole and individual sectors.



 It is critical for both governments and industry to explore and understand the multidimensional implications of these megatrends in order to inform policy and shape the future of tourism. An in-depth discussion of such trends will better enable policy makers to bring currently unforeseen and emerging issues onto the strategic policy agenda, develop potential scenarios and policy responses, and better assist public and private actors to capitalise on opportunities and challenges as they arise. Miyelani Mkhabela is a founder and CEO of Antswisa Transaction Advisory

Recovery in tourism ? Think digital

By Mthuli Ncube



In 2000, Zimbabwe embarked on an historic Land Reform Programme; the resettling of black families on land taken from their ancestors. It was an attempt to rectify horrific, historic, injustices.



Indeed, in the late 1990s, white Zimbabweans still accounted for less than 1% of the population, yet they owned 70% of the fertile arable land.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2020/08/Belarus-tractors-for-Zimbabwe.png" alt="" class="wp-image-379493" width="707" height="943" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/08/Belarus-tractors-for-Zimbabwe.png 477w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/Belarus-tractors-for-Zimbabwe-225x300.png 225w" sizes="auto, (max-width: 707px) 100vw, 707px" /><figcaption>Tractors from Belarus arrive in Zimbabwe as part of training for farmers. </figcaption></figure>



This was the context that the land reform process was based on.However, what was initially designed as a rectification of centuries of displacement and brutal colonialization became a policy riddled with much complexity. Upon becoming president, one of Emmerson Mnangagwa’s first acts was to constitute an Inter-Ministerial Compensation Committee in 2018. While the principle of indigenous land repossession was not to be reversed, the rule of law was to be respected, and compensation provided for improvements on the land.



On the 29th July 2020, Zimbabwe once again made history. A deal worth US$3.5 billion was signed between the government and white farmers. President Mnangagwa described it as a “new beginning of the land discourse in Zimbabwe.”



Andrew Pascoe, President of the Commercial Farmers Union, representing white farmers, called it “a huge milestone.”



In addition, on August 31, the government followed up by declaring that a number of foreign white farmers whose farms were seized, and are protected by international treaties can apply to get it back. 



Furthermore, if direct restitution proves to be impossible, the farmers will be offered land elsewhere.



So how did we arrive at this? And how is it to be implemented? Firstly, the entire agreement is based on two sections of the Zimbabwean constitution: Section 72(3) and Section 295 provide for the payment of compensation for improvements on “compulsorily acquired agricultural lands”. 



Whilst it has taken time, and indeed an entirely new dispensation, the Government and farmers’ representatives committed to engage in extensive negotiations on the basis of the law.



Finally, after much deliberation and debate, spirited conversations and emotional exchanges, a deal has been hammered out, and authorised by a referendum of the white farmers with a huge majority. The final agreement importantly included a global compensation figure which includes infrastructure and biological assets, and land clearing costs.



Many question where this money will come from. Zimbabwe is already weighed down by economic challenges.



Our economic plan, The Transitional Stabilization Plan, a broad swathe of deep and decisive economic reforms has already come up against cyclones, droughts and now a global pandemic. Funds therefore will be raised mostly in the capital markets through United States dollar denominated long term debt instruments, as well as other suitable non debt instruments and financing structures.



In order to see this through, a Joint Resource Mobilisation Committee has been set up by President Mnangagwa, which comprises both government officials and representatives of the farmers, and chaired by the Minister of Finance and Economic Development.This spirit of cooperation and compromise is at the heart of the new Zimbabwe.



Indeed, progress on land reform was not only a constitutional commitment, but a national necessity. Our international standing has been eroded over the last two decades, and this issue has often been at the core of those difficulties.



Since November 2017, the Ministry of Foreign Affairs and International Trade has been charting a new course for re-engagement, international cooperation and good faith. Zimbabwe has been reaching out to friends; old and new, with a clear and genuine message: Zimbabwe is back on the world stage, and we desire to be a respected and responsible member of the international community.



As President Mnangagwa noted in his inauguration speech in 2017, “While we cannot change the past, there is a lot we can do in the present and future to give our nation a different,positive direction.”



For a country to change direction, difficult but necessary decisions must be made. Whilst we will never give up on the plight of the great mass of land-deprived indigenous black Zimbabweans, we must be loyal to the constitution and respect property rights. With no property rights, there is no business community and there are no investments.



And for an economy to grow and for jobs to be created, we must get the basics right. Likewise, there can be no law and order without the rule of law. And there can be no rule of law without a respected constitution.



A just solution therefore was vital. We faced many challenges along the way. Some were bridged between the parties alone. Others required international assessors and arbitration.



The key terms include a global compensation figure with a 50% down-payment within 12 months of signing the agreement, and the full balance to be paid over a period of 48 months.



This is no mean feat and the Joint Resource Mobilisation Committee are developing a joint road map for implementation. In the meantime, the Government will continue to provide payment of interim relief payments in the National Budget until sufficient funds have been raised for the down-payments. Work is underway with roadshows to potential financiers being lined up and strategies for resource mobilisation and stakeholder engagement being put together.



For economic reforms to succeed, the new Zimbabwe must be a place of coordination, collaboration and compromise whereby the rule of law is sacrosanct. This victory for compromise in the form of a complex agreement between the Zimbabwean government and the white farmers are a sign of this spirit and of better times ahead.



Prof. Mthuli Ncube is the Minister of Finance for the Republic for Zimbabwe

Finmin Ncube on who will fund Zim’s $3.5bn compensation to white farmers

COMMENT: The latest in the land story in Zimbabwe is a victory for compromise – so says the finance minister.

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1110" height="740" src="https://www.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-1110x740.jpg" alt="" class="wp-image-380641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-1110x740.jpg 1110w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-696x464.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-1068x712.jpg 1068w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-1920x1280.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-600x400.jpg 600w" sizes="auto, (max-width: 1110px) 100vw, 1110px" /><figcaption>Stock charts on the background of skyscrapers. Financial system concept &#8211; stock photo</figcaption></figure>



We inherently believe that if we had a chance to change the world we would do something dramatically different. In reality, when people get into positions of power, they get bogged down with the mundane and eventually become conformists; it’s easier to adapt than to change. Having lived through five economic cycles over the last 30 years, I asked myself what I would do differently if I had control of the world at a time when the world economy is gutted by the pandemic and the World Health Organization has stated that the worst is yet to come. With these onerous terms of reference, one is compelled to think of extreme measures to provide relief to the dire and helpless situation that the majority of the people around the world find themselves in.



In any crisis what becomes most critical is the availability and flow of money within our economies particularly to the small and medium-sized enterprises (SME’s). It’s recognized that almost 70% of employment comes from the SME sector. However, in difficult times, the cash-tap dries up and money flows to this all-important sector dries up. Commercial banks are best known for the adage “offer an umbrella when there is no rain” and as entrepreneurs in the SME sector will validate this as banks ask for 100% cash collateral when things get tough.



That is risk mitigation 101. When unemployment is at 30% and when almost 70% of the global population is at risk, there is this select group of institutions that continue to do well. These are a majority of the listed companies and the financial services sector in general. I am quoting from my publishers note in June 2020:“Continuing to look at our magical numbers, global GDP is flirting around $100 trillion and total global debt is around $250 trillion (give or take a few trillion). The market capitalization of the 60 main exchanges in the world is around $70 trillion. In terms of profitability, just the S&amp;P 500 companies were projected to deliver approximately $1.5 trillion in profits in 2020, the global banking sector would deliver profits of $250 billion to $300 billion and the technology sector approximately $356 billion.



These numbers are larger than the GDPs of most countries. The numbers for Africa are not as high but there are thousands of businesses that are doing well and will continue to do so after the pandemic is over. It’s therefore, clear that while we have problems from time to time, we also have the resources to fix them; many times over. Hence, it’s time for us to go back to the drawing board and start from zero by redefining our purpose, the difference we need to make and the legacy we will leave”.



Let’s also put two other terms of reference on the table relating to banks. Banks closures and failures on account of bad debt write-offs, non-performing assets or over leveraged balance sheets seldom come from bad loans to the SME sector or to farmers in the agricultural sector.



History is a witness (as Google can validate) that the majority of causes come from lending to large corporates, poor governance and through fraud. Secondly, even in crisis, as central banks reduce interbank rates, commercial banks seldom pass this on to the SME sector; beneficiaries are once again people who can afford the higher interest rates.



Rather than rearticulate I want to quote from the same note in June: If we are to be truly reincarnated, the script must be rewritten and inequality must be the first value for rehabilitation. In reality, even though resources are abundant, the gaps have continued to widen and the levels of poverty have increased. This is largely because of how we have developed the economic value chain;people that make the most money are the financial engineers who are trading stocks and not those sweating in the field manufacturing products and delivering services.



The cocoa bean, sugar or chicken farmer make 6% of the amount that the retailer makes selling the finished products, who in turn makes 50% less than the equity trader, who makes the most money trading on the stock. Anna, the tea lady in our office in Johannesburg, was charged an annual interest rate of 26% by one of the top banks to pay the college fees for her only son; no recourse. This is exploitation and needs to change through radical reforms of our entire banking system and the capital markets to harbor on making them very efficient but not for profit; the profit needs to be reinvested at the grassroots level. We need more farmers ploughing the fields, as at the end of the day, we cannot eat “paper stock”. Let’s agree that governments cannot be the answer to all the problems. Governments can provide stimulus, change policies and even print money (if that is indeed a solution) but at the end of the day the real cash that is available is in the financial system to include capital markets. Even when the entire world economy has come to a standstill, the people who continue to make profits are those that are feeding off the financial services trough.



My over simplified list of actions, as radical as they may sound are mild in contrast to what is needed today. I would increase the capital of all Multilaterals and Development Finance Institutions (DFI’s) by prorata contributions from the wealthy nations, but ensure that in turn they (including the World Bank and IMF) reduce lending rates significantly and waive interest for 3 years on all national debt for developing countries.



Secondly to shut all capital markets and exchanges for 2 years, stop all exits from private investments for 2 years (rather invest in venture and growth capital), no dividends are paid by listed companies for 2 years, ensure all cash raised in funds goes into growth capital, interest cap on loans to individuals at the lowest income bracket, and 100% of profits from banks, insurance, credit card, listed companies, investment banks, audit firms, consultancies, and property development companies is channeled back to government coffers to support the core sector industries particularly agriculture, healthcare, SME’s and infrastructure (including low-cost housing).



To plug some loopholes no increases in salaries or any bonuses or incentives provided to any employee (other than the lowest income groups) for 2 years. It may put a small percentage of people through minor but endurable inconvenience but 70% of the world will see some measure of improvement. The Greek physician Hippocrates, is known to have said &#8220;For extreme diseases, extreme methods of cure, as to restriction, are most suitable.&#8221; This when translated by many people in history has led to a common phrase “desperate times call for desperate measures”. Well, the time for procrastination is over and it is time to act. If I had the reins of the world, I most certainly would take draconian measures for the greater good.

Stock charts on the background of skyscrapers. Financial system concept

OPINION: Desperate times call for desperate measures to save our economies

By Kudzai Mutisi The government of Zimbabwe issued a statement on 31 August 2020 addressing several issues pertaining to the land reform program. The statement presented the government’s position on the compensation of indigenous (black) Zimbabweans who lost their land during the land reform program and the compensation of former farm owners whose land was covered by Bilateral Investment Protection and Promotion Agreements (BIPPAs).



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2020/08/Belarus-tractors-for-Zimbabwe.png" alt="" class="wp-image-379493" width="692" height="925" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/08/Belarus-tractors-for-Zimbabwe.png 477w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/Belarus-tractors-for-Zimbabwe-225x300.png 225w" sizes="auto, (max-width: 692px) 100vw, 692px" /><figcaption>Tractors from Belarus arrive in Zimbabwe as part of a training programme for farmers. </figcaption></figure>



ocals and foreigners seem confused by the government’s statement particularly the issue of returning land to certain former farm owners as compensation. Many have misconstrued this as the reversal of the land reform program by President Mnangagwa’s government. The compensation of former farm owners is covered in section 295 of the constitution of Zimbabwe. There are three categories of farm owners eligible for compensation in different forms. Section 295 (1) provides that indigenous Zimbabweans who lost their land must be compensated for the land and developments thereon. Section 295 (2) stipulates that those whose land was covered by BIPPAs and BITs are entitled to compensation for the land and developments thereon. Section 295 (3) compels the government to compensate those not covered in subsection 1 and 2 for improvements on the land and nothing else.



 In line with the constitution of Zimbabwe, President Mnangagwa’s government has put measures to provide compensation to all three categories of former farm owners. The recent statement provides options for the compensation of farmers under subsection 1 or 2 of section 295. In fact, these former farm owners were not included in the Global Compensation Deed signed recently. It is only these two categories of former farmer owners who have the option to get back their land or to be allocated alternative land elsewhere.



 The farmers that fall under section 295 (3) will be compensated only for improvements on their farms in accordance with the Global Compensation Deed recently signed by the government and former white farmers. These former white farmers owned more than 98 percent of the land expropriated by the government during the land reform program. They have no option of getting back that land. It is worth noting that the number of farms covered by BIPPAs and BITs are fewer than 37.



Some of the farmers in this category already received compensation for their land during the Mugabe era. According to the recent government statement, the compensation of these farmers will be governed by Statutory Instrument 62 of 2020. President Mnangagwa is not reversing the land reform program, he is simply implementing the country’s constitution. By committing to the full compensation of farmers covered by BIPPAs and BITs, the government of Zimbabwe is respecting and restoring property rights. Moreover, the new black farmers currently occupying the land covered by BIPPAs will not be left landless, they will be resettled elsewhere by the government. This is a positive move that should be applauded by locals and foreigners alike.



 The government’s statement also emphasised that illegal occupation of productive farms will not be tolerated anymore. In addition, the government will not downsize productive farms. This is a complete departure from the past where the government allowed the disruption of production on white owned farms.



 The criticism being levelled against President Mnangagwa’s government is driven by sheer ignorance of the country’s constitution and political propaganda. If anything, the recent moves by the government seek to correct the mistakes made during the land reform program and to bring sanity to the agricultural sector. There is no reversal of Zimbabwe’s land reform program. In fact, the government is effectively finalising the land reform program.

zimuuu

OPINION:There is no reversal of Zimbabwe’s land reform program

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By Mduduzi Mbada,



In contributing towards the realisation of the kind of society we want, as articulated in the Freedom Charter and our constitution, in February 2020, we presented the Growing Gauteng Together (GGT2030) plan of action that will endeavour to deliver the province of our dreams in terms of the economy and social security. The GGT2030 is about taking forward the implementation of the ten-pillar programme of transformation, modernisation and reindustrialisation of the Gauteng economy.&nbsp;



The GGT2030 plan of action also seeks to develop a sustainable capable state, where millions of people will be empowered to take charge of their destiny. It is about building a sustainable future for all and a society characterized by equality, social justice, prosperity, no crime and gender-based violence and improving the quality of life of its citizens. This is a society free of any form of discrimination and injustice.



The development of the GGT2030 Plan of Action was scientific.&nbsp; It was guided by the Indlulamithi Scenarios 2030, specifically, the Nayi Le Walk scenario, which identities social and economic drivers that can significantly improve the lives of citizens with pro-poor income distribution, inclusive growth, and meaningful social cohesion.



The modelling and development of GGT2030 policy interventions were also done using SA-Linked National-Provincial – which is linked macro-micro model for South Africa developed by the Applied Development Research Solutions (ADRS), which considers the what-if question.&nbsp;



Before the Covid-19 pandemic, we had to analyse major trends such as the demographical shifts that were already taking place globally; Inequality and urbanization which were on the rise; the Fourth Industrial Revolution (4IR) that was already reshaping the way human beings live and work and climate change that was cited as the new existential threat to all of humanity. The importance of understanding global trends is necessary because any successful nation or state should develop measures to anticipate and respond effectively to these trends.



This includes developing responses to the novel COVID-19 pandemic, which has resulted in a global paradigm shift and fundamentally changed life as we have come to know it. The COVID-19 pandemic has brought to the fore the issues of poverty and inequality in both the developed and developing countries. It has, therefore, become imperative for countries to respond not only to the health challenges presented by the Covid-19 pandemic but to purposefully address issues of poverty, inequality and developmental imperatives in their respective regions in response to the pandemic.



The COVID-19 pandemic has brought trauma and shock to the global system and South Africa is not immune. Gauteng as the economic hub of the country, contributing almost 34% to GDP, has had to drastically adjust and lead a comprehensive response to the impact of the COVID-19 pandemic.&nbsp;



True to the nature of pandemics, like volcanos and earthquakes, we know they will happen, but we do not know when, where, and how they will occur. In response to the challenges brought by the COVID-19 pandemic, we have remodelled the GGT2030 plan of action as part of the reconstruction and recovery of our economy. The remodelled GGT2030 is a response to both the social and economic challenges brought on by COVID-19 pandemic. It was done by understanding three scenarios related to the spread of the COVID-19 pandemic specifically in SA. Firstly, under the Low Scenario, about 0.5% of South Africans (i.e. about 300,000) will be infected by COVID-19. Secondly, the Moderate and High Scenarios consider the possibility of COVID-19 infecting close to 1% and 2% of the population (about 600,000 and 1,200,000) respectively. The Low and Moderate Scenarios assume that the pandemic will be contained during the third quarter of 2020, and the economy will begin to recover during the fourth quarter of 2020.&nbsp;



The modelling exercise assisted in introducing new bold policy measures to curb any further social and economic distress in society. Specifically, this includes the introduction of an unemployment grant for all those who have become unemployed, it also includes making public works the employer of last resort for the unskilled-unemployed. This is because, in 2020, EPWP if expanded it will cater for 35% of the unskilled unemployed before expanding the service to all unskilled-unemployed by 2030, with the increase of the daily rate to R 160. We should also introduce a new caregiver grant of R 500, which is allocated for family members that take care of a child who receives either a child support grant or a care dependency grant and an immediate increase of the monthly child support grant to R 500.



With regards to Macro-Economic Policy Reform, there is a need to refocus and realign policies to support growth and employment as evidenced by the easing of monetary policy. This includes a rise in current government expenditure, an increase in investment to stimulate economic services and social infrastructure. This will also require an improvement in the ease of doing business in the province, and an increase in labour productivity of some sectors, the ten growth sectors and an increase in competitiveness in some sectors such as the financial services sector, real estate and business services.



Therefore, the re-modelled GGT2030 also brings the possibility of an expansion of the tourism sector, growth in the trade, catering and accommodation services sector, growth in exports for the agricultural sector, a rise in labour productivity and increased competitiveness of strategic sectors.&nbsp;



It also brings into sharp focus the need to improve industrial policy levers s such as industrial financing incentives as an instrument that can potentially drive industrialization and potentially reduce the trade deficit in the province. In the next five years, we will spend R60 billion &#8211; infrastructure spend to create 100 000 jobs and develop 50 black industrialists. Through Industrial Financing Incentives, total annual investment in the manufacturing sector will increase by&nbsp; R 10 billion during the next 11 years; Special Economic Zones (SEZ) and African integration programmes, will increase total exports by an additional 1.5% after 2020 and catalyse economic growth, employment opportunities and promote entrepreneurship; and the government’s Proudly SA and localisation policies will gradually reduce the import dependency ratios of some sectors by 20% over the next 11 years. Specifically, the Tshwane Automotive SEZ will be one of the biggest since 2010, with a supplier park and a factory producing 200,000 vehicles a year for the Ford Motor Company by 2022. This will be made possible with a scale of investment of over R20 billion by the private sector matched by R3.7 billion by government. The R1.7 billion spending on the build phase alone will be dedicated towards SMMEs, sourced from the Tshwane area and Gauteng at large.&nbsp;&nbsp;



The collaboration of government with the private sector, through the Public-Private Growth Initiative (PPGI), is another initiative that can increase investment both provincially and nationally. This will be achieved through the increased private sector increased investment in the South African economy by R 500 billion over the next 11 years, as their contribution to the broader socio-economic development of the country. With Public Investment Cooperation (PIC) investing R 20 billion in the manufacturing sector for the period between 2021 and 2025 (5 years) will contribute to growth and employment.&nbsp;



We are also working with the Development Bank of South Africa (DBSA) and the Presidency infrastructure division to unlock development in key nodes of the City Region. By funding the bulk infrastructure needed in the post-apartheid cities such as Lanseria, Vaal River City and the Western Corridor, wherein we are investing in an Agro-processing SEZ, as well as implementing accompanying investments in the revitalisation of 15 industrial parks, 12 Agro-Parks and five agro-processing facilities we envisaged significant growth and employment prospects.



Overall, the roadmap to inclusive growth in the province should be deliberate in its efforts of targeting the poor and improving service delivery services to improve the living conditions of poor families in the province. This should also lead to improvements in total employment, the decline in inequality as measured by the Gini coefficient, a decline in government expenditure relative to its debt ratio and improved profits for businesses.&nbsp;



Under the modelled six-pillar policy scenarios, it is projected that the poverty rate will decline by almost 50% from 28% to 15% and that there will be a significant improvement in the delivery of social services (education, health, land reform, housing, etc.) and economic infrastructure across the country (roads, bridges, transportation, etc.) This will particularly improve the living conditions of poor families.



When the GGT2030 is fully implemented, the size of the economy is expected to more than double over the next 11 years, from its current size of about R 1 trillion to a little above R 2 trillion, in 2010 prices. The unemployment rate will be reduced by almost two-thirds from the 36% (Mild COVIT-19 scenario) and 42% (Severe Scenario) in 2020 to 13% by 2030. Per Capita GDP is expected to increase by 70% in real terms (from about R 68, 000 currently to about R 115, 000 in 2030. The provincial poverty rate is expected to reduce by more than 40% over the next decade from 20% (Mild Scenario) and 21.3% (Severe Scenario) in 2020 to 11.5% in 2030. The high-income inequality in the province, measured by the Gini index, is expected to decline by 12 percentage points over the next 11 years. The decline will be from its current value of 70% to 58% by 2030. This will be achieved through a 4 billion per annum spend in buying goods and services from 2000 township enterprises, support 50 black industrialists, supporting 50 emerging black farmers and 20 black agro-processors and supporting of 500 cooperatives in the care economy and the creation of 250 000 sustainable and decent jobs.&nbsp;



The implementation GGT2030 with discipline, and the right kind of skills, including investing in knowledge as a strategic resource, will contribute to the South Africa of our dreams by 2030, it is also plan of action that will contribute towards a South Africa that truly belongs to all who live in it by 2055, the centenary of the Freedom Charter, where poverty and inequality are not the key defining features of social relations but by March towards a prosperous and united South Africa.







Mduduzi Mbada, Head of Policy, Gauteng Provincial Government, Office of the Premier

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President Muhammad Buhari signed the Company and Allied Matters Act (CAMA) 2020 into law on August 7, 2020. The law replaced the 1990 CAMA with provisions reflecting current realities and opportunities that can improve the business environment. The new company law contributes to improvement in formation, registration and governance of companies including health enterprises. It enables entrepreneurs to start single-member companies, with flexibilities in appointment of auditors and company secretaries. There is also provision for Limited Liability Partnerships and Limited Partnerships.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2020/07/Muhammadu_Buhari_-_Chatham_House.jpg" alt="" class="wp-image-376011" width="709" height="731"/></figure>



 As the world embraces accelerated digitalization, the law allows use of virtual platforms for knowledge management and corporate governance. The Act is a significant piece of legislation for the growth of the private sector which is crucial for job creation and poverty reduction. According to Nigeria’s Bureau of Statistics, nearly 22 million Nigerians are currently unemployed while about 83 million people are poor. The private sector is the engine of economic growth particularly through the employment opportunities created by small and growing businesses. 



Every legal and policy reform that makes the tough business climate better can open new doors to lift many people out of poverty with positive externalities for their health indices and wellbeing. Despite genuine concerns about some sections of the law which must be resolved quickly, strengthening regulatory institutions and systems is in the best interest of all Nigerians. The law aligns with ongoing reforms to create a continental market through the African Continental Free Trade Area (AfCFTA) agreement. A new World Bank report shows that the agreement can accelerate economic diversification and job creation in Africa, enabling countries that maximize its opportunities to lift millions out of poverty.



 Nigeria’s membership of the Africa Trade Insurance Agency and recent tax and business reforms are important building blocks of a viable environment that allows the country to seize opportunities of robust domestic and continental markets. A better business environment is key for local production of goods consumed on the continent. The ongoing coronavirus pandemic shows that Africa relies heavily on imported food items, medical supplies and drugs for its 1.2 billion people with serious implications for health and food security. While there are several socio-economic and sector-specific factors necessary to boost local production, timely laws that ease tax and regulatory provisions for innovative businesses create vital incentives.



 These reforms encourage policy makers, private sector players and development partners to work together on a longterm vision of resilience in the post-COVID world. Nigeria represents a strategic market where a convergence of talents, capital and technologies can enhance local production of medical goods and food for regional and continental consumption. The law positions the country better to attract new investments. The 2019/2020 Global Investment Competitiveness Report shows that investors prioritize political economy and regulatory systems in target countries. 



Although foreign direct investment may fall by 25 – 40% in Africa due to COVID-19, putting together the right building blocks can position the country for speedy recovery and new investments in the post-COVID era. Nigeria is one of the most improved countries with increasingly better business environment globally, according to the World Bank 2020 Doing Business Report. However, the country ranks 131 out of 190 countries globally and 17th in Sub-Saharan Africa on the Doing Business Index far behind Rwanda, Kenya and South Africa. Nonetheless, recent tax and business reforms send the right message to investors that the nation is making progress in removing bottlenecks that can impede business entry and growth. With access to capital, business and social enterprises can grow and thrive. 



Biodun Awosusi is Health Economist at Health Systems and Development Enterprise

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As several African countries continue to grapple with spikes in Covid-19 cases, it remains difficult to foresee the Africa that will emerge from the virus. Does the pandemic present an opportunity “to reset Africa”, as suggested by the Nigerian entrepreneur Tony Elumelu, or will the continent’s leaders be faced with the same long-term challenges that have simply been exacerbated by the pandemic?



For months, Africa had escaped relatively unscathed as the global centre of the virus shifted from Asia to Europe to North America and South America. Yet we now know that the number of African infections and deaths is still rising. According to the World Health Organization back in July, 22 of Africa’s 54 countries found that cases had more than doubled in little over a month.



While the primary concern for policymakers should be the health of their citizens, the economic impact of Covid-19 is plain to see. The African Development Bank Group has projected that Africa’s GDP is to contract in 2020 by 1.7 percent in the baseline scenario, which assumes a substantial impact of the virus but over a short duration. The collapse in oil prices has hit Africa’s second and third largest economies &#8211; Nigeria and Angola &#8211; hard, while the collapse of tourism and a drop in demand for agricultural exports to Europe have devastated economies from Kenya and Ethiopia to Cote D’Ivoire, Mauritius and the Seychelles.



Across the globe, the pandemic has damaged international supply chains and many are in agreement that the future is, by necessity, regional. It is clear that economies are having to look inwards, considering how to best support local industry in order to navigate the impact of the ongoing pandemic. While the coronavirus may be a new phenomenon, supporting entrepreneurship and stimulating the diversification of African economies has been a long-term challenge.



As mentioned, the Nigerian entrepreneur Tony Elumelu has said “the pandemic presents an opportunity to reset Africa, create employment and eliminate poverty”, and that the continent must “embrace the new normal”, with disruption in every sector from the digital economy to logistics. He suggests that there is now a “unique opportunity for a united Africa as a strong regional bloc acting in a coordinated fashion”.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2020/08/Peter-Burdin-1-rotated.jpg" alt="" class="wp-image-379931" width="684" height="913" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/08/Peter-Burdin-1-rotated.jpg 480w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/Peter-Burdin-1-225x300.jpg 225w" sizes="auto, (max-width: 684px) 100vw, 684px" /><figcaption>Peter Burdin -&#8220;If a transformation is to take place, it will require investment and training across the board.&#8221;</figcaption></figure>



The fact that the launch of African Continental Free Trade Area has been delayed challenges Elumelu’s plea for strong regional coordination, however, we have seen some examples of a coordinated approach between African nations that does provide significant hope.



Cameroon has sent planes to the Democratic Republic of Congo to help that country get medical support its more remote areas, the African Development Bank has denoted $4 million to South Sudan to bolster its fragile health system, and the African Union has launched a medical supplies platform for all 54 African countries. This is designed to make medical supplies, test kits and protective equipment available across the continent.



Something extraordinary is needed, and there are growing calls for investment to encourage African SMEs to create local supply chains in communities to boost employment. SMEs currently account for 90% of all businesses in Africa. If a transformation is to take place, it will require investment and training across the board. SMEs need support, training and financing to deliver solutions for manufacturing, healthcare, energy, digital innovation, infrastructure, agriculture and other sectors.



It is programmes such as the Citizens Entrepreneur Development Programme launched by the Economics Association of Zambia which exemplify the type of initiative that will be needed across Africa in the post-Covid world. In partnership with investors, including the Zambian business African Green Resources chaired by Zuneid Yousuf, and local NGOs, the independent programme has mobilised $1 million to support small businesses through the provision of funds, skills, and access to markets. The scheme hopes to bring economic opportunities to all parts of Zambia.



It is obvious that much more is needed across the continent to stimulate growth, and while it remains extremely difficult to say with any great confidence that economies will be “reset” following the pandemic, it is clear that that when we do reach the other side it cannot simply be business as usual. Long-term challenges remain, and it is true that they have been compounded by the events of 2020, but I remain an optimist.



 Peter Burdin, is the BBC&#8217;s former Africa Bureau Chief

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