BANKING

Eritrea’s Msilam Dam to bolster food security and change lives for the better

Published

1 year ago

Eritrea’s Msilam Dam to bolster food security and change lives for the better.

Facility to potentially host the Bank’s Special Agro-Industrial Processing Zones initiative.

Eritrea has a long coastline on the Red Sea but limited fresh water. Its erratic rainfall has left most of the country arid. This is a challenge for Eritreans who depend on agriculture and livestock for their livelihoods.

But things are changing. In the space of three years, Eritrea harnessed local engineering talent and mobilised thousands of Eritreans, including students from the country’s technical and vocational schools, to build the Msilam Dam.

Eritrea's Msilam Dam to bolster food security and change lives for the better

The dam has a capacity of 350 million cubic metres and provides clean water to the towns of Dekemhare, Debarwa, Mendefera, and smaller surrounding towns. The Eritrean government funded and built the Msilam Dam, located in the village of Gergera.

In addition to increasing the availability of drinking water, the dam is now a catalyst for transformative livestock, agricultural, and industrial production as part of the country’s national strategy and sustainable development policy. Following this success, the country also built the Adi Halo Dam.

The water in the Msilam Dam has made it ideal for dairy farming. The area is now home to the Halhale Dairy Farm, part of an agro-processing facility for meat and dairy products. The farm covers 550 hectares and started with 660 cattle in 2017. Since then, the number of cattle at Halhale has increased.

Eritrea is now looking to trusted partners like the African Development Bank Group to scale up this innovative project.

African Development Bank president Dr Akinwumi Adesina paid a two-day official visit to Eritrea last week and toured the extensive facilities with President Isaias Afwerki on Saturday.

Eritrea’s Msilam Dam to bolster food security and change lives for the better - AFDB

Afwerki said the government planned to use it as a pilot scheme to establish similar dairy farms in many parts of the country. He said this would help increase the number of dairy products and meat that people can buy at fair prices.

Adesina said that Eritrea’s Msilam Dam and the Adi Halo Dam Water Project—harnessing the power of commercial agriculture and food production—could potentially host the Bank’s Special Agro-Industrial Processing Zones initiative. He said a team from the Bank would visit Eritrea in the coming weeks to start immediate planning.

“I am impressed by what I see here. There are 10,000 hectares of land to irrigate with the dam. And it is already irrigating 1,000 hectares. That is a lot of land for livestock and dairy. There are also areas where fruit and other crops are being grown. I am particularly impressed by the density of infrastructure here,” Adesina said.

The Bank’s president said the proposed special agro-industrial processing zones would mean the African Development Bank could build on the infrastructure already in place and bring in support to develop food and agricultural businesses that process and package food, fruit, horticultural production, and even floriculture for regional and export markets.

Adesina assured the Eritrean leader that the African Development Bank would support his country in developing a financial system that supports agro-industrialisation. He said he also recognised the potential of the local private sector and the Eritrean diaspora to accelerate investment in the country’s development.

Adesina said the African Development Bank would also use resources from its Affirmative Finance Action for Women in Africa initiative to provide access to finance for women farmers working with local banks.

The Eritrean president showed the Bank’s team around the Adi Halo Dam water project, which the government launched in 2015 to address water scarcity in the capital.

The project consists of a thirty-two million cubic metre dam, also financed and built by Eritrea to demonstrate the country’s principle of self-reliance. The dam holds fourteen million cubic metres of water from the good rains that fall between July and September each year. It uses a 2-megawatt solar power plant that provides energy to pump water to irrigate community-owned farmland.

The project has increased the availability of clean drinking water for households, helping to overcome water scarcity and improve food security.

“I came away from this visit very enthused that the country is innovating and not just copying others,” the African Development Bank president said. He commended the capacity of the Eritrean people and research institutions for their prowess in excellent engineering.

Adesina remarked: “In many countries, these dams would probably have been contracted out to foreign contractors or big engineering firms. The Eritrean people built the dams themselves. I was surprised that a lot of them were done by students.”

He asked the government to consider the possibility of using Eritrea’s engineering skills and capacity to help other countries.

Adesina said: “We must develop a way to support Eritrean engineers to assist other countries and perhaps even come up with the idea of establishing an African engineering corps that the continent can deploy to major engineering works in different countries.”

The African Development Bank is supporting Eritrea in other initiatives, including enhancing water availability for crops and livestock.

For instance, the Bank-supported initiatives have helped increase water availability for crops and livestock in the country by 220% over six years This follows the completion of sixty masonry dams built through a community-based approach. The Bank has also rehabilitated 4,780 hectares of land upstream of the dams and 4,600 hectares downstream.

African Development Bank interventions will also help to revive and revamp the fish landing sites that were completed in 2006 under the Fisheries Infrastructure Development Project.

Giving his overall impression of his two-day visit, Adesina said: “I would say that President Afewerki’s passion is infectious. When you are outside, you hear news about Eritrea, but it is different when you come here. He was with me all day on a field trip, and I admire his vision and his determination to see the emancipation of his people.”

“One of the things I admire most here is the sense of purpose, direction, determination, pride, and patriotism. The people are very determined to develop and have a sense of self-reliance and self-sufficiency. The big dams we visited are evidence of that,” Adesina added.

He pledged that the African Development Bank would provide much more support to Eritrea in many areas: from agriculture, climate resilience, energy, the blue economy, and financial market development, to special agro-industrial processing zones. He said that above all, the African Development Bank would use Eritrea’s experience to help other countries. He said the Bank would also use its Technologies for African Agricultural Transformation initiative to support the country’s wheat production and the production of other value crops.

“Nobody is going to do development for you. You have to do it with pride and have the self-belief that you can do it,” Adesina said.

The African Development Bank Group head also met with the United Nations Acting Resident Coordinator, Aeneas Chapinga Chuma, and representatives of other UN specialised agencies. He called for increased cooperation to enhance development impact in Eritrea.

The Bank and UN agencies are to continue working collaboratively to further support Eritrea’s climate resilience, skills and capacity development, energy, pharmaceutical capacity building, as well as water and sanitation, among other areas.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

More images: https://apo-opa.info/44B0fpx

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BANKING

Afreximbank Acts as Joint Lead Manager on Ecobank Transnational Incorporated’s USD 400mn Senior Unsecured Note Issuance

Published

2 months ago

Christopher

The proceeds of the note will fund general corporate purposes of the issuer, including refinancing of a USD350 million senior bridge-to-bond loan facility that was jointly coordinated by Afreximbank in March 2024.

African Export-Import Bank (“Afreximbank”) (www.Afreximbank.com) is pleased to announce that it has successfully acted as Joint Lead Manager and Bookrunner on a USD 400 million 10.125% Rule 144a/RegS senior unsecured note issuance by Ecobank Transnational Incorporated (“ETI”) due in October 2029.

The note issuance achieved peak orderbook oversubscription of 2.1x, backed by more than 70 high-quality and diverse investors comprising development finance institutions, asset managers, commercial banks and insurance companies from Africa, the UK, USA, Europe and the Middle East.

Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, commenting on the transaction, said: “We are pleased to have supported Ecobank Transnational Incorporated (“ETI”) in placing the first public Eurobond issuance by any Sub-Saharan African financial institution since 2021, following our bridge financing support earlier in the year. This transaction underscores Afreximbank’s capacity and readiness to structure innovative market access solutions for our pan-African banking partners.”

Afreximbank’s Advisory and Capital Markets (ACMA) department acted as Joint Lead Manager and Bookrunner on the issuance, working alongside international and African partners.

Distributed by APO Group on behalf of Afreximbank.

BANKING

International Islamic Trade Finance Corporation (ITFC) and the Central Bank of Nigeria Successfully

Published

2 months ago

Christopher

International Islamic Trade Finance Corporation (ITFC) and the Central Bank of Nigeria Successfully

These workshops form part of ITFC’s Integrated Trade Solutions (ITS) framework, aligning with the organization’s goal of providing holistic trade financing interventions in OIC member countries.

The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank (IsDB) Group, in partnership with the Central Bank of Nigeria (CBN), successfully concluded a workshop on Non-Interest Banking and Trade Finance in Nigeria. Held from 17th to 19th September 2024 in Abuja, the sessions aimed to enhance capacity and knowledge in Islamic banking principles, trade finance products and services, and how different financial toolkits are applied in Islamic finance from operational and business perspectives.

International Islamic Trade Finance Corporation (ITFC) and the Central Bank of Nigeria Successfully

Nigeria’s Islamic finance industry, valued at US$3.8 billion, is one of the major Shariah compliant industries in Africa. Despite some challenges such as low public awareness and a smaller capital base compared to conventional banks, Islamic finance has been substantially contributing to reduce financial exclusion and improve access to affordable finance in the country. The three-day workshop was designed to bridge prevailing knowledge gaps focusing on key areas such as Sukuk issuance and main non-interest banking products basics.

Delivered under ITFC’s Integrated Trade Solutions framework, the workshop equipped professionals with the skills to promote Islamic finance in Nigeria while also highlighting ITFC’s wide range of trade financing services.

Participants reported a significant boost in understanding Islamic banking and trade finance, and the workshop showcased ITFC’s contributions to economic development through sustainable financial solutions.

Eng. Nasser Al Thakair, ITFC, remarked: “ITFC is committed to supporting Nigeria’s efforts in Islamic finance, tailoring this workshop to address the unique challenges faced. We will continue to provide the expertise and financial backing needed to grow Islamic finance in Nigeria and beyond.”

Over 30 professionals from the Central Bank of Nigeria, non-interest banks, and other financial institutions attended, further advancing Islamic finance in the country.

As Nigeria positions itself as a leading market for Islamic finance in Africa, ITFC remains dedicated to advancing trade finance and supporting the growth of the sector for long-term economic impact.

Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).

About the International Islamic Trade and Finance Corporation (ITFC):

The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving the socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided over US$75 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity-building tools, which would enable them to successfully compete in the global market.

FINTECH

Kazang Pay launches card acquiring service in Zambia

Published

2 months ago

Christopher

Kazang (www.Kazang.com), the prepaid value-added services (VAS) and card acquiring business within JSE-listed fintech Lesaka Technologies, has launched its Kazang Pay card acceptance solution for merchants in Zambia. Kazang Pay makes it affordable for merchants to accept card payments on the same Kazang terminal they use to sell prepaid products and services.

Kazang Pay launches card acquiring service in Zambia

The Kazang Pay enabled terminal in Zambia accepts VISA debit and credit cards as well as mobile wallet payments. Payments are settled to the merchant’s Kazang wallet on the same day. It’s as easy as letting the customer tap or insert their bank card and enter their PIN on the secure scramble PIN pad.

Kazang operates around 12,000 VAS terminals in Zambia. The goal is to enable the majority to accept card payments over the next six months. Benefits to merchants include low transaction fees and no monthly terminal rental fee for those that meet a modest monthly transaction threshold as well as the opportunity to grow their business through card acceptance.

Kazang is Zambia’s largest VAS point-of-sale terminal provider, enabling mobile money payments, bank and mobile money cash in and out, bill payments, airtime, Zesco, and many other prepaid services on one platform. The addition of card acceptance makes the platform even more comprehensive for merchants and consumers alike.

The launch of Kazang Pay in Zambia follows the introduction of the solution in South Africa, where around 60,000 small and micro merchants use Kazang Pay to accept card payments. In Zambia, there are around 3.8 million debit, credit and ATM cards in issue and 41,000 point of sale (POS) terminals in place. The value of POS transactions has grown to K 111.4 billion by 2022 from less than K 20 billion in 2018, according to the Bank of Zambia.

Says Leon de Wit, managing director at Kazang Zambia: “Zambia has made enormous strides in terms of financial inclusion, with card usage and penetration growing at a rapid pace. With Kazang Pay, merchants can now easily accept card payments on the same all-in-one terminal they already use for vending of VAS products.

“Card transactions help merchants to grow basket sizes and potentially attract more customers, and at the same time, reduce the risks and costs of handling cash. Moving towards digitalised payments will also enable merchants to track sales, manage cash flow, and create a footprint that could make it easier for them to access loans.”

Ashley Naidoo, director of Kazang Pay in South Africa says: “Our Zambian merchants have eagerly embraced our card acquiring service as a valuable part of our one-stop solution. Following the launch of Kazang Pay in Zambia, we have seen higher VAS sales across our merchant base and much-improved merchant retention and with our card acquiring solution we now appeal to a broader merchant base.”

Distributed by APO Group on behalf of Kazang.

ABOUT KAZANG:
Kazang (www.Kazang.com) is a leading provider of cash and digital solutions to merchants in Southern Africa’s informal economies. Our fintech solutions include a diverse range of value-added services (VAS), card acquiring, secure cash vaults and supplier payments platforms. Operating with a network of approximately 90,000 active devices, we process approximately 2.2 million transactions daily in markets such as South Africa, Namibia, Botswana, and Zambia.

We are dedicated to helping small and medium merchants grow and succeed, through increasing their sales, making their businesses more efficient and reducing their risks with its holistic portfolio of products and services. Kazang is a member of Lesaka Technologies (https://LesakaTech.com).

ABOUT LESAKA TECHNOLOGIES, INC:
The Connect Group and Kazang was acquired by Lesaka Technologies, Inc. in April 2022. Lesaka Technologies, (Lesaka™) is a South African Fintech company that utilizes its proprietary banking and payment technologies to deliver superior financial services solutions to merchants (B2B) and consumers (B2C) in Southern Africa. Lesaka’s mission is to drive true financial inclusion for both merchant and consumer markets through offering affordable financial services to previously underserved sectors of the economy. Lesaka offers cash management solutions, growth capital, card acquiring, bill payment technologies and value-added services to retail merchants as well as banking, lending, and insurance solutions to consumers across Southern Africa.

Lesaka has a primary listing on NASDAQ (NasdaqGS: LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE: LSK). Visit www.LesakaTech.com for additional information about Lesaka Technologies (Lesaka ™). $LSK / $LSAK