Author: Kang'ethe Njoroge

• Through Sustainable Debt Coalition, leaders in Africa seek to address critical financing challenges faced by emerging markets and developing economies.
• They are placing particular focus on fresh financing model to address climate action and unique development needs in Africa. 
• Sustainable Debt Coalition introduces a fresh consultation pathway that intersects debt, climate, and developmental concerns, fostering dialogue for innovative solutions. 

There is an urgent need to adopt global financial reforms to help avert economic, environmental and social downturns, leaders from developing countries have urged, adding that this will work to achieve Sustainable Development Goals.

The Sustainable Debt Coalition

“Predictable, affordable and sustainable financing is critical to allowing African countries to get back on track to achieve the Sustainable Development Goals,” Economic Commission for Africa (ECA) Acting Executive Secretary, Antonio Pedro, said.

Antonio gave a speech at the Sustainable Debt Coalition meeting that was held in Paris in conjunction with the Summit …

• Central African Republic (CAR) may see growth projected at 3.6 percent in 2024 and 2025.
• The positive outlook is driven by anticipated higher international prices of timber, CAR’s main export.
• The World Bank says fuel shortages took a heavy toll on CAR leading to high levels of acute food insecurity.

The Central African Republic (CAR) is set to witness a return to economic growth this year after stalling in 2022, with the World Bank projecting 3.6 percent in 2024 and 2025. The latest edition of the World Bank’s CAR Economic Update indicates that heavy flooding and severe fuel shortages took a heavy toll on the country’s economy leading to high levels of acute food insecurity.

Economic activity in CAR may see a modest rebound over the medium term, with growth projected at 3.6 percent in 2024 and 2025. This is, however, provided that fuel supply in the domestic market improves …

• The funding will see SEACOM grow its broadband cable network and cloud-based product offering in sub-Saharan Africa. 
• Under the new deal, IFC will provide a $207 million long-term loan to SEACOM. 
• The funding will support SEACOM to become the next-generation cloud-based IT service business. 

SEACOM has partnered with the International Finance Corporation (IFC) to increase the access to broadband IT services for small and medium-sized businesses across Africa. The partnership will see SEACOM, a digital infrastructure and IT services company, grow its broadband network and cloud-based offerings in sub-Saharan Africa.

IFC will offer SEACOM a $207 million loan, which includes $70 million from IFC’s own financing. A total of $42.24 million co-financing will come from institutional investors through IFC’s Managed Co-Lending Portfolio Program. Another $94.76 million will be mobilized from Nedbank Limited and Mauritius Commercial Bank.

SEACOM expanding cloud-based services

“Access to affordable, good-quality internet is central to economic …

• Players in Kenya’s tourism industry asked to offer unique and cutting-edge services and experiences to tourists. Last year, international arrivals in Kenya rose by 70.45% to 1.48 million from 870,465 in 2021.
• The inbound receipts also rose 83% to $1.9 billion from $1 billion prior. 
• This is, however, a far cry from 2019 when 2.05 million arrivals landed in Kenya

By embracing innovation in tourism, the Kenya Tourism Board (KTB) says players in the industry can further enhance tourism offerings and attract a larger number of visitors. East Africa’s largest economy has been experiencing a return to near pre-pandemic levels in international arrivals. KTB, however, is challenging stakeholders drive innovation in tourism to drive the numbers further up.

Innovation in tourism to remain relevant

Speaking on the sidelines of the Kenya Association of Hotel Keepers and Caterers (KAHC) annual symposium in Mombasa, KTB Chairperson, Francis Gichaba, said innovation in tourism …

• PROPARCO and the IFC, are scaling up of renewable energy production in both Kenya and DRC. 
• The two organisations will support Nuru, an early-stage company that provides decentralized and low-carbon power solutions in DRC. 
• PROPARCO will invest in the first close of E3 Low Carbon Economy Fund I (LCEF), which based in Kenya.

Two renewable energy investments in the Democratic Republic of Congo (DRC) and Kenya will receive financial backing to enhance their low-carbon power solutions.

The move comes after PROPARCO and IFC announced plans to support scale up of renewable energy in the two countries. PROPARCO and IFC are members of the Alliance for Entrepreneurship in Africa.

The two organizations declared support for Nuru, an early-stage startup that offers decentralized and low-carbon electricity solutions in the DRC, during the Paris summit for a new global funding agreement.

“Our support for Nuru, delivered with partners through the Alliance for Entrepreneurship …

• Women and youth in Kenya’s agricultural sector are set to benefit from new AfDB funding. 
• Another $1.3 million has been set aside to support the youth and women entrepreneurs in Kenya’s agriculture value chains.
• The funding was provided by the European Union in partnership with the AfDB.

Kenya’s women and youth in agriculture are set to benefit from fresh financing after the African Development Bank (AfDB) approved an equity investment of $19.65 million in the Africa Guarantee Fund (AGF).

Another $1.3 million will support the youth and women entrepreneurs engaged in the country’s agricultural value chains. The funding, approved on June 6, 2023, was provided by the European Union (EU) under its partnership with the AfDB.

“The approval is another milestone in the implementation of the partnership with the EU, which also signals the importance given to the role of women and youth in the agricultural sector in Kenya,” the …

• The Cairo meeting is part of a series of regional forums that the African Hidden Champions (AHC) initiative is undertaking.
• North Africa is a vital part of the African economic growth story, said Wael Akari Co-partner DEG.
• Edita Foods, Sekem, Haggar Group, Al Araby Group, and Andalusia Hospitals among firms at the forum.

African Hidden Champions (AHC), a platform showcasing Africa’s best companies while exploring investment opportunities has hosted its first forum in North Africa in Cairo City. The event is part of a series of regional forums under AHC targeting key trading hubs in Africa this year.

AfDB partners with African Hidden Champions

In late May, AHC held its first regional event of 2023 in Nairobi, Kenya. The session provided a platform for AHC to share its vision with business executives from the East African region.

The Nairobi reception marked the African Development Bank’s (AfDB) first official engagement with …

• USAID is committing $3 million in funding for water and sanitation investment projects in Africa.
• The financing through African Water Facility (AWF) will be in grants and technical assistance to African countries.
• AWF assists African nations in achieving the goals and targets outlined by the African Water Vision 2025.

The African Water Facility (AWF) has received a $3 million commitment from the United States Agency for International Development (USAID). The financing will facilitate the planning of water and sanitation investment projects in Africa. Financing will be through grants and technical help to African nations and regional economic groups.

Housed by the African Development Bank, the African Water Facility was launched by the African Ministers Council on Water. It is the first institution in Africa fully dedicated to addressing water and sanitation challenges.

AWF assists African nations in achieving the goals and targets outlined by the African …

• About 200,000 people in Windhoek will benefit from AfDB-funded solar lighting project.
• AfDB’s Urban and Municipal Development Fund helps countries invest in climate resilient cities.
• Rapid and uncontrolled urbanization in Namibia’s capital has seen the steady rise in informal settlements. 

An estimated 50,000 homes in Namibia’s informal settlements will benefit from solar power connections as green revolution across African economies picks up speed. The solar project targeting informal settlements in Namibia’s capital city has received a grant of $485,000 from the African Development Bank’s Urban and Municipal Development Fund .

In Windhoek, where around 20 per cent of the population lacks access to power, the “Informal Settlement Renewable Electrification and Upgrading Program” will directly assist almost 200,000 people.

The Urban and Municipal Development Fund of the AfDB supports national socioeconomic development and poverty reduction by assisting governments in funding sustainable urban development for more livable, productive, and climate resilient cities.…

• Afrexim’s subsidiary, AFREXInsure, will manage trade and commerce-related risks in Africa.
• AFREXInsure will leverage its risk expertise using its continent-wide presence.
• Cargo handling, construction, operations and energy sectors are on target.

The African Export-Import Bank has launched its wholly owned insurance management services subsidiary, AFREXInsure.

The new subsidiary aims to offer a single point of entry for all speciality insurance requirements to help manage associated risks for African trade and commerce. The insurance arm of the bank will offer quality, best-in-breed specialty insurance that are tailor-made for Africa.

With credible knowledge of Africa, AFREXInsure will leverage on its risk expertise using its continent-wide presence and deep understanding of the African market to provide solutions around cargo handling, construction, operations and energy – sectors critical for the growth and establishment of trade and investment intercontinentally.

AFREXInsure targets specialty risks

Speaking during the launch, which took place on the sidelines of Afreximbank’s …