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

Facebooktwitterredditpinterestlinkedinmail

Can Bola Tinubu revive Africa’s sleeping giant?

Nigeria’s economy has underperformed for years. President Bola Tinubu made waves with bold initial reforms, but faces a tough task to persuade investors that Nigeria is open for business.

As Bola Tinubu surveyed the assembled dignitaries in Abuja’s Eagle Square on 29 May, Nigeria’s new president could have been forgiven for wondering what he had let himself in for.Inflation was running at 22%, the highest for 18 years. Public finances were crippled by fuel subsidies that guzzled nearly a quarter of the government’s budget. Oil production, the major source of export revenues, remained at a near 30-year low. Militancy continued to plague various parts of the country.Tinubu, the 71-year-old former governor of Lagos State, belongs to the same political party as his predecessor, Muhammadu Buhari. But while the then 80-year-old former president clung rigidly to economic policies that the rest of the world has largely eschewed since the 1980s – with predictably dire results – Tinubu has charted a dramatically different course since taking office.The new president used his inaugural address to confirm the immediate removal of fuel subsidies. Days later, he brought an end to the confusing system of multiple exchange rate “windows” for the national currency, allowing the naira’s official and black-market rates to begin to converge. Tinubu also wasted little time in dismissing several high-profile officials, including the governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, who now faces prosecution on corruption charges.Influential voices are optimistic that Nigeria’s economy is now poised to begin its recovery. The new administration has brought a “massive step change” in policymaking, says Danladi Verheijen, co-founder and managing partner at Verod Capital, one of Nigeria’s largest private equity firms.“It’s a much better cabinet, much more pro-business”, he says. Newly appointed officials such as finance minister Wale Edun and the CBN’s new governor, Olayemi Cardoso, are far more experienced and “private sector-led growth oriented” than their predecessors, Verheijen adds.As a result, he is seeing signs that international investors, after years of shunning Nigeria, are ready to give the country another chance. “The business class section on the flights into Nigeria is full again.”

Nigeria’s challenge – import less, make more

For decades, it would not have been unfair to suggest that Nigeria’s economic model was based around exporting crude oil and importing almost everything else.

The bankruptcy of this approach is now clear to see. Many Nigerians are struggling to afford basic necessities, particularly since Tinubu’s currency reforms caused imported goods to become more expensive. Millions of young adults have little or no paid employment, reflecting the longstanding neglect of the manufacturing and agricultural sectors.

The challenge for Nigeria boils down to a simple reality. The country needs to stop importing so many goods that could easily be produced locally. Ideally, it also needs to start exporting a much greater range of value-added products to international markets. If Tinubu can move the needle on this challenge, his presidency is sure to be considered a success.

Efforts are certainly underway to bring fundamental change to Nigeria’s economy. One glimpse into a possible future can be seen 65km outside of Lagos, where the Lagos Free Zone, which includes a recently-opened deep water port, aims to become a major manufacturing hub.

The first fully privately-owned free zone in the country, it is operated by Singaporean conglomerate Tolaram. Investors that establish manufacturing facilities within the 850-hectare site benefit from a generous range of tax and customs incentives. Consumer goods giants including Kellogg’s and Colgate-Palmolive, along with German chemicals company BASF, are among the firms to have set up shop.

Tejaswi Avasarala, deputy CEO of the Lagos Free Zone, says that Tolaram’s aim is to “create a thriving ecosystem with world-class infrastructure, facilities and services”. He adds that the completion of Lekki Port, the first modern deep-sea port in Nigeria, in April 2023 has “significantly enhanced” the Free Zone’s overall attractiveness for export-oriented companies.

Infrastructure challenges

The Free Zone is part of a major cluster of developments within the Lekki Industrial Corridor. The new Dangote Petroleum Refinery looms in the distance. An international airport is set to arrive at some point in the future.

But the challenge in attracting the modern consumer industries that Nigeria so badly needs is starkly illustrated by the state of the road between the Lekki Industrial Corridor and the city of Lagos itself. Trucks travelling between the megacity and the industrial hub must endure hours of treacherous conditions along gridlocked and potholed roads.

Avasarala acknowledges that “efficient road connectivity is a critical success factor” for the Free Zone. He points out that construction work is underway to upgrade road links, while a freight rail line is also on the drawing board. The completion of this critical infrastructure cannot come fast enough if the Free Zone is to fill its modern industrial facilities and warehouses with new tenants.

At least in theory, the Free Zone should now be more appealing to manufacturers as a result of the naira’s depreciation against the dollar. Nigeria’s currency lost more than 30% of its value on the official market within days of the new government’s partial liberalisation of the exchange rate regime last June.

“The increased cost of importing goods has made domestic manufacturing more economically viable for many companies,” says Avasarala, who claims that there has been a “noticeable shift” in investor interest in manufacturing within Nigeria.

Yet elsewhere in Nigeria, there is little evidence that the naira’s depreciation is having a positive effect, at least in the short term.

In fact, several major brands have scaled back their Nigerian manufacturing operations since Tinubu took office, owing to lower consumer purchasing power and the higher cost of imported raw materials and other inputs. Proctor & Gamble said in December that it would stop producing health and hygiene products at its Nigerian facilities in the latest blow to Nigerian industry.

Were the changes too much too soon?

This leads to an uncomfortable question for the new administration: has it tried to change too much, too fast?

The removal of fuel subsidies, though widely agreed to be necessary, has brought huge financial hardship for tens of millions of Nigerians. For decades, the government kept petrol prices at artificially low levels. When Tinubu finally removed the subsidies, the price of petrol soared dramatically overnight. Motorists are paying more than three times as much as a year ago to fill up their vehicles.

Whether the subsidy is in fact quite as dead as it appears is debatable. The World Bank suggested in December that a cost-reflective price of petrol would be around N750 ($0.95) per litre, which is about N100 per litre more than consumers are currently paying.

Even so, the subsidy reforms, along with the naira’s depreciation, has had a huge impact on the cost of living. Inflation reached 28% in November, up 6% from when Tinubu took office.

Basic services are teetering. Small hospitals and clinics, for example, “are having a lot of problems keeping up with bills,” says Njide Ndili, country director for Nigeria at healthcare foundation PharmAccess. As well as having to cope with the cost of diesel generators, hospitals find that staff struggle to get to work due to petrol costs, while patients are unable to pay for insurance or treatment.

Stopping the ‘brain drain’

Meanwhile, Ndili adds, the “brain drain” of healthcare professionals has accelerated, as staff flock to developed markets where their earning power is far greater. “We are really at a critical point with human resource for health,” she warns.

Maureen Ogbonna, founder of management consultancy Vallore Nigeria, adds that there are similar trends in other sectors. “A lot of people are migrating out of Nigeria at the moment,” she says, noting that it is often the most educated personnel that have the greatest opportunities to move abroad. “They don’t want to wait for the reforms to kick in.”

It is “a bit too soon to tell” whether Tinubu is really moving the country in the right direction, says Gbemisola Alonge, consultant at advisory firm Africa Practice. She points out that leading credit rating agencies have largely welcomed Tinubu’s reforms, without actually upgrading the country’s rating. “The reason the ratings haven’t improved is because the fundamentals haven’t changed,” she says.

Meanwhile, Alonge suggests that there are “mixed feelings” around some government officials. Although the new CBN governor has been praised by investors for committing to more conventional monetary policies, his repeated postponement of monetary policy committee meetings has brought “uncertainty in policy direction”, Alonge says. “That indecision is a decision in itself, because choosing not to meet means you’re choosing to retain the rates the way they are.”

Economic potential is far from realised

Nigeria’s economic potential is recognised around the world, not least because of the sheer size of its market. The UN expects the country’s population to grow from around 220m today to 374m by 2050 – by which time Nigeria will be on the brink of overtaking the United States as the world’s third most-populated country.

Yet Nigeria’s “potential” is only discussed so much because it remains so far from being realised. Despite its massive oil wealth, by some metrics, Nigeria is one of the world’s least developed countries. Life expectancy is shockingly low, at just 53.9 years according to UN figures – the second worst in the world.

Tinubu faces an enormous challenge as president in reversing the trends that have seen Nigeria sink into economic and social malaise.

Yet, there are many reasons for optimism. The country’s tech sector has flourished over the past decade, producing more billion-dollar “unicorns” than the rest of Africa combined. Digital infrastructure has rapidly spread across the country, bringing at least basic connectivity to the vast majority of the population, and paving the way for a range of business innovations. And, of course, Nigeria is renowned for its entrepreneurial culture and ability to produce world class business leaders.

Bucking the trend

Regardless of whether or not Tinubu proves more effective than his predecessors, the country’s entrepreneurs are determined to press ahead with their efforts to unleash Nigeria’s potential.

“We’ve not grown up expecting a lot from the government,” says textile entrepreneur Chekwas Okafor. “I’m sure they’re doing their best, but I do not have any support from the government.”

Okafor spent several years working in the United States, where he started a business retailing luxury African fashion. But, partly inspired by the success of Nigeria’s iconic 2018 World Cup football shirt, he decided to return to his home country in an effort to help revive its moribund garment manufacturing industry.

Okafor’s company Onchek now operates two facilities in Lagos – one where cotton yarn is knitted into fabric and a second where the fabric is cut and sewed into t-shirts for the local market. In total, around 200 people are employed across the two sites.

If Okafor is to succeed, he will have to buck the trend in an industry where Nigeria has been comprehensively outcompeted by Asian rivals over recent decades. Hundreds of thousands of jobs have been lost, especially in northern cities, since the heyday of Nigeria’s textile industry in the 1980s.

The Buhari administration announced several initiatives to revive garment manufacturing, but never appears to have made a serious effort to implement its plans.

Can Tinubu do better? Even if Okafor is not banking on government support, he does believe the new administration is “thinking about [manufacturing] a lot more now, because of the dollar situation”. He is confident that the naira’s devaluation will have a positive long-term impact on the sector, given the increased costs of importing goods.

Making the vision a reality

It does not in fact take too great a leap of imagination to see Nigeria, with its low labour costs, becoming a significant manufacturer of garments worn by customers around the world.

As with so many areas, Nigeria’s potential is clear. Identifying the need for change and drawing up a vision for the future is the easy part for Tinubu and his team as they seek to bring far-reaching reforms to the Nigerian economy.

Tinubu has scoured the world since taking office, appearing in capitals across Europe and the Middle East, as he attempts to persuade foreign investors to invest in Nigeria.

Whether his efforts will succeed depend not on his government’s plans, but on its performance – on his ability to demonstrate to foreign multinationals, as well as home-grown entrepreneurs, that a more conducive business environment is in place.

“It’s not rocket science,” says investment advisor Olugbolahan Mark-George. “We’re not short of policies and documents – it’s execution that’s the critical thing.”

Ben Payton

Ben is Energy and Infrastructure Reporter at African Business.

Source: AfricanBusiness, 8th January 2024

Facebooktwitterredditpinterestlinkedinmail

Will Kenya’s renewed privatisation push succeed?

Image : State Department photo by Ron Przysucha/ Public Domain

President William Ruto has announced that 35 state-owned enterprises are slated for privatisation, thrilling stock market executives but dismaying opponents.

A recent change in the privatisation laws of Kenya has empowered the National Treasury to sell state owned enterprises without seeking approval from Parliament. The government argues that the amended law, enacted in October 2023, will eliminate bureaucratic hurdles and expedite the privatisation process. Shortly after assenting to the legislation, President William Ruto announced that 35 state-owned enterprises were slated for privatisation. Among them are the Kenya Pipeline Company and the Kenyatta International Conference Centre (KICC).If successful, this will mark a departure from the previous administration of Uhuru Kenyatta, which did not privatise any public companies. The last successful privatisation in Kenya was that of Safaricom in 2008, during the tenure of President Mwai Kibaki, who oversaw the sale of shares in several state-controlled firms such as Mumias Sugar, Kenya Reinsurance and Kengen.Is the timing right?Proponents of privatisation in Kenya argue that it will improve the government’s fiscal situation by generating income from the sale of assets amid mounting debt obligations that have compelled the government to increase taxes and cut back on non-essential spending. Kenya’s national debt increased from $35.39bn in 2018, to $55.08bn in 2021, and $71.48bn in 2023, according to data compiled from official sources by Statista. The global research firm projects that Kenya’s national debt will continuously increase between 2023 and 2028 by a total of $36.7bn.“The timing is right. Like many frontier economies, Kenya is faced with a huge debt burden,” says Kiprono Kittony, chairman of the board of directors of the Nairobi Securities Exchange (NSE). “Why should the government be so indebted, when it has its own assets?”Kittony notes that privatisation could unlock numerous benefits for the economy if done correctly. “Privatised companies will be more efficient, they will foster greater innovation, and they will be more market-driven; even the caliber of talent they attract will improve.”He argues that a private-sector led economy has one major advantage: it minimises unwanted political meddling in various economic sectors. “Privatised companies can aggressively compete for customers and market share as opposed to worrying about satisfying political whims.”

According to Kittony, listing of state-owned enterprises could also help address some of the corporate governance concerns surrounding these firms.

“The corporate governance of listed companies far exceeds that of non-listed companies, and there is empirical evidence that better governed companies are more effective platforms for wealth creation.”

Ending the IPO drought

One of the options that the amended law provides for privatising state-owned enterprises is to list them on the stock market through initial public offerings (IPOs). This is the preferred method for Kittony, who says that the NSE is collaborating with relevant regulators such as the Capital Markets Authority (CMA) to facilitate the smooth listing of targeted parastatals.

The Kenya Pipeline Company, which manages the country’s national oil and gas pipeline, is especially attractive to NSE investors, Kittony argues. KPC posted a pre-tax profit of Sh6.2bn (approx. $40m) for the year ending 30 June 2022 on total revenues of Sh26.21bn (approx. $170m) and total assets of Sh129.8bn ($840m), as per its most recent annual report. This makes it one of the most lucrative and valuable public enterprises in Kenya, hence the keen investor interest.

The NSE has not registered a new listing to the bourse since October 2015, when the Stanlib Fahari REIT was listed. The REIT is currently in the process of being delisted from the main investment segment of the NSE. The new privatisation plan is aimed at addressing this IPO drought, with President Ruto noting that his government intends to list 6-10 state-owned enterprises firms in the near future.

“We have established over the past few years that in Kenya we do not have a demand-side problem. There is a lot of demand for both equities and fixed income securities. The problem has always been on the supply side where we don’t have enough products to offer.” notes Kittony, expressing optimism that the renewed privatisation push will help reverse this.

However, privatisation alone is not enough to boost investor confidence. There is also a need to encourage private entities to list on the stock market, he explains. By having both public and private firms listed, Kenya can signal its commitment to market reforms and create more opportunities for domestic and foreign investors.

Kittony argues that privatisation transactions should be well-priced to ensure the government gets enough income from the privatisation exercise and the investors get a fair return.

“The pricing must be done in a way that gives upside to local investors.”

Political risks and viability of business models key concerns

However, not everyold is sold on the potential ease of a privatisation programme. Kwame Owino, CEO of the Institute of Economic Affairs (IEA) – a think tank that facilitates informed debates to influence public policy in Kenya – privatisation has not been successful in Kenya and other East African countries because of various political obstacles.

The first political obstacle that Owino outlines is public resistance arising from lack of trust in the process.

“Privatisation is not easy to sell in the East African region partly because governments are not really trusted. Many people think that privatising is to hand over the nation’s crown jewels to the private sector,” he remarked in a media interview on the topic. There is also likely to be opposition from the country’s trade unions.

Owino says that another obstacle the privatisation process faces is silent but strong opposition from some government officials who may not want to lose the benefits and advantages that come with controlling parastatals.

“Even within the government itself there are many people who enjoy the privileges that come with sitting on boards or in some cases direct procurement with enterprises that are owned by the government. They find it difficult to cede that control.”

Some state-owned enterprises that are slated for privatisation may face low investor interest due to their unviable business models and long history of operating unprofitability. A case in point is Kenya Airways (KQ), in which the government owns a 48.9% stake. KQ has been draining public funds without giving any return on investment for many years. According to the auditor-general, the Treasury gave the national carrier Sh16.27bn ($100m) in 2022 without any loan agreement or recovery mechanism, highlighting the adverse impact of loss-making entities on the government’s finances.

KQ is not alone when it comes to unsatisfactory performance among state-owned-enterprises. A 2022 report by the Treasury’s Public Service Performance Management and Monitoring Unit reveals that the majority of parastatals in Kenya are struggling financially, operationally and strategically, with an increasing number relying on bailouts and subsidies to stay afloat. The survey rated 232 parastatals out of which only 92, a mere 39.6%, achieved their annual performance targets.

The ranking looked at the parastatals’ key mandate, customer experience, corruption prevention, project completion, payment of pending bills, absorption of funds, access to government procurement opportunities for the youth and women as well as internship opportunities for the youth.

Widespread underperformance among parastatals on these key metrics may lower the market value and appeal of state-owned enterprises as investment opportunities, complicating the privatisation process by making it difficult to find suitable investors. Other private investors will believe that they can provide the leadership required to oversee serious reform and a return to profitability.

Overcoming the legal hurdles

The privatisation plan also faces major legal hurdles. Opposition leader Raila Odinga’s party, the Orange Democratic Movement, has challenged the amended privatisation laws in court, arguing that the process should be subjected to a referendum due to the strategic significance of the firms listed for sale.

High Court judge Chacha Mwita in December ruled that the petition by the opposition leader raises important questions that warrant the Court’s attention. “I am satisfied that the petition raises substantial constitutional and legal issues of public importance that require critical examination,” he pointed out in his ruling. Mwita said any planned sales made under the revised law were suspended until Feb 6 2024, when the case will be heard.

The ODM party is sticking to its guns and demanding a referendum, particularly for assets like the Nairobi based KICC. The iconic conference center is a key part of the country’s national heritage, even featuring prominently on bank notes.

“If ever there was a matter over which a referendum was mandatory then it’s the sale of National Assets like KICC, KPC and the others. One generation of greedy leaders cannot just strip a Nation of its assets without reference to the people,” notes Edwin Sifuna, Nairobi senator and secretary general of ODM.

The government faces a tough court battle after ODM’s petition to pause privatisation under the new laws was heard by the High Court. However, it still has a fighting chance to get privitisation back on track. Many factors will influence the ongoing court case, such as the quality of the legal arguments, the evidence presented, and the possibility of dialogue between the government and the opposition. Meanwhile, President Ruto is determined to continue with his plan.

This is partly because Kenya needs to remain in the good graces of its main creditors, particularly the World Bank and the IMF, who have been urging the country to get rid of unprofitable state agencies and merge those that have overlapping functions. The privatisation of these firms is crucial for Kenya to maintain its good standing with its lenders.

Source: AfricanBusiness, 9th January 2024

Facebooktwitterredditpinterestlinkedinmail

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

Facebooktwitterredditpinterestlinkedinmail

OPEC December oil output rises before new cuts, Angola exit – Reuters survey

A 3D-printed oil pump jack is seen in front of displayed OPEC logo in this illustration picture, April 14, 2020. REUTERS/Dado Ruvic/File Photo

LONDON, Jan 5 (Reuters) – OPEC DECEMBER OIL OUTPUT RISES BY 70,000 BPD FROM NOVEMBER TO 27.88 MILLION BPD AHEAD OF 2024 CUTS, ANGOLA EXIT – REUTERS SURVEY

OPEC oil output rose in December, a Reuters survey found on Friday, as increases in Iraq, Angola and Nigeria offset ongoing cuts by Saudi Arabia and other members of the wider OPEC+ alliance to support the market.

The Organization of the Petroleum Exporting Countries pumped 27.88 million barrels per day (bpd) last month, the survey found, up 70,000 bpd from November. Output is down more than 1 million bpd from the same month a year ago. PRODN-TOTAL

The boost comes ahead of further OPEC+ cuts in 2024 and Angola’s exit from OPEC, which are set to lower January output and market share. OPEC’s market share has already been falling due to output restraint and the departure of some members.

In December, the biggest increases of 60,000 bpd came from Iraq and Angola, which both boosted exports, the survey found.

Nigeria also shipped more crude abroad without, as yet, beginning oil products output at its new Dangote refinery.

The Reuters survey, which aims to track supply to the market, is based on shipping data provided by external sources, Refinitiv Eikon flows data, information from companies that track flows such as Petro-Logistics and Kpler and information provided by sources at oil companies, OPEC and consultants.

Source: CNBC Africa, 5th January 2024

Facebooktwitterredditpinterestlinkedinmail

Investments in Africa