Category Archives: General

Blinken’s latest diplomatic trip will take him to Africa as crises continue to vex US foreign policy

WASHINGTON (AP) — Secretary of State Antony Blinken is planning to visit four African countries as the Biden administration tries to keep its eyes on all corners of the world while being consumed by crises in Ukraine, the Mideast and the Red Sea.

The State Department announced on Thursday that Blinken will go to Cape Verde, Ivory Coast, Nigeria and Angola starting Sunday for talks focused on regional security, conflict prevention, democracy promotion and trade. Nigeria is West Africa’s regional heavyweight and plays a major role in security issues, especially those involving Islamic extremist violence in the Sahel, the vast arid expanse south of the Sahara Desert.

The trip will be his third overseas mission in the new year. He returned from a Gaza-focused, weeklong 10-nation trip to the Middle East last Thursday and a three-day trip to the World Economic Forum in Switzerland on Wednesday.

Source: AP,  18th January 2024

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UNDP launches “timbuktoo” initiative in Davos to revolutionize Africa’s startup ecosystem

Annalena Baerbock, Federal Minister of Foreign Affairs of Germany; H.H. Prince Faisal bin Farhan Al Saud, Minister of Foreign Affairs of Saudi Arabia; Christopher A. Coons, Senator, USA; Yusuf Tuggar, Minister of Foreign Affairs of Nigeria; Elina Valtonen, Minister for Foreign Affairs of Finland; and Jens Stoltenberg, NATO Secretary-General, in a session of global security on 16 January. Image: World Economic Forum

Davos 2024

In Davos, the United Nations Development Programme (UNDP) launched the “timbuktoo” initiative in collaboration with African countries. The initiative, unveiled during a special session at the 24th Annual Meeting of the World Economic Forum, aims to be the world’s largest financing facility, uniting catalytic and commercial capital to bolster Africa’s startup ecosystem.

H.E. President Paul Kagame of Rwanda, H.E. President Nana Akufo-Addo of Ghana, the Secretary-General of the African Continental Free Trade Area Secretariat, HE Wamkele Mene, and UNDP Administrator Mr. Achim Steiner presented the initiative to global corporate leaders and African financial institutions. The timbuktoo initiative is poised to spark the African Startup Revolution, leveraging Africa’s youth demographic and innovative talent.

The initiative targets critical gaps in the African startup ecosystem, collaborating with governments, investors, corporates, and universities to foster innovation. H.E. Paul Kagame pledged an immediate contribution of US$3 million to kickstart the timbuktoo Africa Innovation Fund hosted in Kigali, with a billion-dollar target to create opportunities for Africa’s youth.

H.E. Nana Akufo-Addo emphasized the need for supportive structures to enable young Africans to create innovative businesses, contributing to job creation and sustainable economic growth. Administrator Steiner highlighted timbuktoo as a new development model, focusing on startup-friendly legislation, global-class startup building, de-risking capital, and UniPods (University Innovation Pods) across Africa.

Africa currently holds just 0.2 percent of the global startup value, and 89 percent of venture capital comes from foreign sources, with 83 percent concentrated in four countries. timbuktoo seeks to revolutionize Africa’s knowledge-driven economy, turning ideas into pan-African enterprises, attracting global and local investment.

With private venture capital investments in Africa surging six times faster than the global average in 2022, a vibrant youthful population, and expanding tech startups, timbuktoo aims to mobilize US$1 billion to transform 100 million livelihoods and create 10 million new jobs. The initiative’s unique design blends commercial and catalytic capital to de-risk private investment, fostering a pan-African approach to supporting startups and strengthening the entire ecosystem.

Source: AfricaNews, 18th January  2024

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Oil drops more than 1 % despite Middle East conflict

Storage tanks are seen at the Petroineos Ineos petrol refinery in Lavera, France, March 29, 2022. REUTERS/Benoit Tessier

LONDON, Jan 15 (Reuters) – Oil prices lost more than 1 % on Monday as the Middle East conflict’s limited impact on crude output prompted profit taking after oil benchmarks gained 2 % last week.

Brent crude futures were down $1.14, or about 1.5%, at $77.15 a barrel by 1250 GMT and U.S. West Texas Intermediate crude lost $1.15, or 1.6%, to $71.53.

Several tanker owners steered clear of the Red Sea and multiple tankers changed course on Friday after U.S. and Britain launched strikes against Houthi targets in Yemen after the Iran-backed group’s attacks on shipping in response to Israel’s war against Hamas in Gaza.

The conflict has also held up at least four liquefied natural gas tankers travelling in the area.

“The realisation that oil supply has not been adversely impacted is leading last week’s bulls to take profit, with the move down somewhat exacerbated by a slightly stronger dollar,” said Tamas Varga of oil broker PVM.

On Sunday the Houthi militia threatened a “strong and effective response” after the United States carried out another strike overnight. The U.S. later said it shot down a missile fired at one of its ships from Yemen.

The chief negotiator for Yemen’s Houthis on Monday warned that attacks on ships headed towareds Israel will continue.

“As the Middle East conflict is currently not affecting oil production, the geopolitical risk premium priced in oil prices now appears modest based on the implied volatility of options,” Goldman Sachs analysts said in a note.

There have been no oil supply losses so far, but the shipping disruption is indirectly tightening the market by keeping 35 million barrels at sea owing to longer journeys shippers have to take to avoid the Red Sea, Citi analysts wrote.

Source: Reuters, 15th January 2024

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DFC Approves Over $3.3 Billion in Investments with a Focus on Africa in Q1 FY2024

 

The U.S. International Development Finance Corporation (DFC) has greenlit a series of strategic investments totaling more than $3.3 billion in the first quarter of Fiscal Year 2024.

The 17 approved transactions, spanning a diverse array of sectors, underscore the DFC’s commitment to advancing global development priorities, with a particular emphasis on fostering growth, sustainability, and empowerment across Africa.

Expanding Global Impact:

DFC’s Board of Directors approved nine transformative projects this quarter, reflecting the corporation’s multifaceted approach to development:

  1. Global Vaccine Access: The DFC will utilize its $1 billion loan facility with Gavi, the Vaccine Alliance, to broaden access not only to COVID-19 vaccines but also to routine childhood vaccines globally.
  2. Empowering Women in the Dominican Republic: A $200 million loan to Banco Popular Dominicano, S.A. aims to empower women entrepreneurs and small businesses in the Dominican Republic.
  3. Energy Security in Eastern Europe: DFC’s support of a €208 million loan to Bulgartransgaz EAD, facilitated by Citi, will enhance energy security in Eastern Europe, reducing dependence on Russian gas supplies.
  4. Small Business Financing in East Africa: A $320 million co-financing effort with Citi will empower CRDB Bank to enhance on-lending capabilities to small businesses in Tanzania and Burundi, with a focus on women-led enterprises.
  5. Clean Energy in Indonesia: A $126 million loan to PT Medco Cahaya Geothermal will boost Indonesia’s renewable energy production by developing geothermal power generation capacity.
  6. Climate and Energy Investment in India and the Indo-Pacific: An equity commitment to Eversource Climate Investment Partners II will drive climate change adaptation and energy transition projects across India and the Indo-Pacific.
  7. Global Food Security: A $250 million loan to Indorama Eleme Fertilizer and Chemicals Limited/SPV Line III will increase fertilizer production in Port Harcourt, Nigeria, strengthening global food security.
  8. Safe Water Access in Angola: DFC’s support of up to $250 million will enable the development of water treatment and distribution infrastructure in Southern Angola, providing reliable, safe drinking water to underserved communities.
  9. Education Access in Emerging Economies: A $250 million loan to a special purpose vehicle (SPV) established by Prodigy Finance Ltd. will enhance access to high-quality education for graduate students from developing nations.

Regional Focus on Africa:

In addition to these board-approved transactions, the DFC has greenlit targeted investments at the sub-board level, with a clear emphasis on Africa:

  1. Critical Mineral Supply Chains in South Africa: A $50 million equity investment in TechMet will support the development of a rare earth element processing facility in South Africa, enhancing global critical mineral supply chains.
  2. Women’s Economic Empowerment Worldwide: A $30 million follow-on loan to the IIX Women’s Catalyst Fund will support the issuance of the sixth IIX Women’s Livelihood Bond, promoting economic empowerment for women globally.
  3. Access to Higher Education in Ukraine: A $10.7 million loan to Ukrainian Catholic University will finance the expansion of the university’s campus in Lviv.
  4. Food Security in Zambia: A $10 million loan to Seba Foods Zambia Ltd. dba 260 Brands will strengthen the food value chain in Zambia by expanding storage and production capacity.
  5. Supporting Ukrainian Small Businesses: A $28 million loan portfolio guaranty to ProCredit Bank Ukraine will catalyze investment in Ukrainian small businesses, especially those in the agricultural sector.
  6. Infrastructure Growth in Zambia: An up to $17.1 million loan to African Eagle Hotels and Resorts will finance the construction and operation of an international hotel in Lusaka, Zambia.
  7. Clean Energy in Africa: Two $10 million loans to SIMA Commercial & Industrial Solar Green Bond B.V. will spur investment in small and medium-sized renewable energy projects across the continent.

Congressional Notification and Global Impact:

Many of these investments are subject to congressional notification, emphasizing the collaborative nature of these strategic endeavors. The DFC’s commitment to fostering sustainable development, economic empowerment, and infrastructure growth across Africa is evident in these diverse and impactful investments.

Source: Today News Africa, 10th January 2024

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Interview: AI expert warns of ‘digital colonization’ in Africa

Artificial intelligence (AI) is ripe to help resolve certain major problems in Africa, from farming to the health sector, but Senegalese expert Seydina Moussa Ndiaye is warning of a new “colonization” of the continent by this new technology if foreign companies continue to feed on African data without involving local actors.

One of 38 people members of the new UN advisory body on machine learning, Mr. Ndiaye spoke with UN News about the landscape ahead, building on his experience in helping to drive Senegal’s digital transformation in higher education, serving as an expert to the African Union in drafting the Pan-African Strategy on AI and in contributing to the Global Partnership on Artificial Intelligence (GPAI).

Senegalese AI expert Seydina NDiaye is one of the 38 experts of the UN High-Level Advisory Body on Artificial Intelligence.

© Courtesy of Seydina Ndiaye
Senegalese AI expert Seydina NDiaye is one of the 38 experts of the UN High-Level Advisory Body on Artificial Intelligence.

 

UN News: How could AI help Africa?

Seydina Moussa Ndiaye: There are several African countries that are beginning to have a dedicated strategy for artificial intelligence. However, there is a pan-African strategy that will soon be published, with a continental vision of AI development.

More and more, young people launching startups are interested in this, and they have a real thirst for knowledge in the field of AI. This growing interest can be accelerated with international help.

However, there is a wall in some areas, and AI can in fact be used to solve certain problems, including in agriculture. In the health sector, AI could in fact solve a lot of problems, especially the problem of a lack of personnel.

The other element that is also very important is the development of cultural identity. Africa has been seen as a continent with a cultural identity that has not been able to impose itself across the world. With the development of AI, we could use this channel so that African cultural identities are better known and better valued.

Bernice Kula-Kula, a refugee from DR Congo, studies computer engineering, cybersecurity and artificial intelligence on a UNICORE scholarship, thanks to Italy with UN-support.

© UNHCR/Agnese Morganti
Bernice Kula-Kula, a refugee from DR Congo, studies computer engineering, cybersecurity and artificial intelligence on a UNICORE scholarship, thanks to Italy with UN-support.

 

UN News: Are there bad sides of AI threatening Africa?

Seydina Moussa Ndiaye: The biggest threat for me is colonization. We may end up with large multinationals in AI that will impose their solutions throughout the continent, leaving no room for creating local solutions.

Most of the data currently generated in Africa is owned by multinationals whose infrastructure is developed outside the continent, where most African AI experts also operate. It’s a loss of African talent.

The other important element to consider is in the context of the fourth industrial revolution. The power of AI combined with advances in biotechnology or technology could be used, and Africa could be the place where all these new solutions are actually being tested.

If it’s not supervised, we could end up with tests that would take place on humans with chips or even integrated biotechnology elements that we improve. These are technologies that we don’t really master well. In regulatory terms, there are certain aspects that have not been considered. The very framework for the application of ideas and existing regulations is not effective.

In concrete terms, and when you don’t control these things, it could happen without anyone knowing. We could have Africa being used as a Guinea pig to test new solutions, and this could be a great, great threat for the continent.

UN Deputy Secretary-General Amina Mohammed interacts with Sophia the robot at the “The Future of Everything – Sustainable Development in the Age of Rapid Technological Change” meeting.

© United Nations/Kensuke Matsue
UN Deputy Secretary-General Amina Mohammed interacts with Sophia the robot at the “The Future of Everything – Sustainable Development in the Age of Rapid Technological Change” meeting.

 

UN News: Do you think that the UN’s new AI advisory group is going to be a platform that will allow you to put these problems on the table?

Seydina Moussa Ndiaye: Yes, absolutely. We’ve started our work, and it’s really very open. These are high-level people who understand international issues well, and there are no taboo subjects.

It’s important that the voice of Africa is represented in the group. International scientific cooperation will be strengthened and not limited to the major powers. At the international level, it includes everyone and also helps the least developed countries.

Currently, there is a real gap, and if this is not resolved, we risk increasing inequalities.

Source: UN, 2nd January 2024

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