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AFRICAN LEADERSHIP

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Leadership £5 $8 N3000 ZAR100

MARCH - APRIL 2020

Akinwumi

MARCH-APRIL 2020

Adesina AFRICA’S OPTIMIST IN CHIEF

In this edition, we take a deep dive into the person, mission & contributions of Dr Adesina who emerged ALM African of the year in the continent’s premier readers’ poll

CONTENTS

Lord Dolar Popat Africa is a Natural Home for UK Businesses

AKINWUMI ADESINA: Africa's Optimist-in-chief & ALM African of the Year 2019

RAWYA MANSOUR: The Inspiring Journey of Africa’s Female Leader of the Year 2019 -

18 Africa's free-trade agreement needs supporting interventions

Media & Entertainment in Africa A peep into the Future

CRDB: Tanzania’s Emerging Financial Power House Op-Ed: Mthuli Ncube - This is

Zimbabwe’s economy will 64 how overcome its hurdles

Leveraging Sports for National Development

Liberia: Through the Eyes of Cletus Wotorson

Cissé - Why Africa’s Job 50 Ismael Numbers aren’t Growing

FBN - 125 years of redefining banking and enabling dreams across Africa

Category Publisher’s Porch

It is Africa’s time!

No doubt, perceptions about Africa, especially in the west, is far from the realities on the ground. These not-so-correct perceptions have adversely affected trade on the continent as the average western business person would rather trade with other blocs than with Africa, in spite of the tremendous potentials and opportunities that Africa has to offer. As a result, the continent continues to lag behind, on most business leaders’ trade partnership agendas. Between 2014 and 2016, US exports to Africa fell by almost half, from $38 billion to $22 billion. Also, the latest available UK continent-specific export data showed that total UK exports to Africa in 2018 stood at only 2.3%, compared to 46.6% to neighbouring Europe, 24.1% to Asia and 15.3% to North America. However, the prevailing circumstances in most African nations notwithstanding, savvy business leaders and leading governments have continued to sustain the truism that Africa represents enormous opportunities as the last trade frontier. This narrative can be seen in the swelling number of business and investment conferences centred on Africa, and more nations and governments joining the Africa business and investment talk circuit. With the United Kingdom and Russia being the most recent, following the January 2020 UK Africa Investment Summit, and the Russia-Africa Summit in October 2019, these events all underlining the scramble, as it were, for what opportunities that Africa represents.

While this global attention on the continent has not risen out of just sheer love for the African people, but in furtherance of the strategic interests of these nations, which often goes beyond only trade; it does signal the beginning of mutually beneficial relationships that could significantly leapfrog the continent in the areas of critical development indicators much needed in Africa today. Some of these vital areas are in jobs creation, healthcare delivery, education, energy and infrastructural development, among others. To buttress the case for jobs creation, according to the United Nations statistics for 2015, there were over 226 million youth between the ages of 15-24 in Africa, and a staggering 75% of Africans are under the age of 35, making her the world’s youngest continent. Moreover, the share of Africa’s youth in the world is forecasted to increase to 42% by 2030 and more than double the current levels by 2050. These young people need jobs, and every possible opportunity they can get, be it in education, healthcare, and the various fields of human endeavour. They also represent tremendous value and are potentially Africa’s greatest asset. The distinct role of the Dr Akinwumi Adesina led African Development Bank Group in leading investments into Africa is unequalled, through

4 | African Leadership | March - April 2020

the provision of both financial and technical support to its member nations. The quality of data, facts and figures, products generated by the bank, multi-level engagements and partnerships, and her expert advice are unmatched. And the continued impact and success of its flagship Africa Investment Forum, and its 2019 edition with 56 boardroom deals valued at $67.6 billion tabled, is both refreshing and a game changer for the continent. This is the way to go, and as President Adesina proclaimed recently, Africa is indeed bankable. Little wonder he was voted by our readers and Africans from all shades of thought as the African of the Year 2019.

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Moreover, the share of Africa’s youth in the world is forecasted to increase to 42% by 2030 and more than double the current levels by 2050. These young people need jobs, and every possible opportunity they can get.

Publisher’s Category Porch

As we take on the 2020s decade, It is therefore time for Africans to lead the charge for an African renaissance; and for leading OECD countries and the rest of the west to prioritize trade and investments engagements with Africa above aid and every other equally good considerations. While several African countries would still require aid in the coming years, what is more essential and mutually beneficial would be to deepen fair trade engagements and well-thoughtthrough equitable investments agreements that embraces international scrutiny and meets best practices, as this would ultimately result in more jobs creation, technology transfer, improved infrastructure, and a lift in the overall standard of living of the people. It is projected that by 2030, African countries will have the highest number of workingclass populations with greater purchasing power and improved overall livelihoods according to the AfDB outlook 2019, thereby creating a robust middle class with high purchasing power – an amazingly huge market by all standards. This, by implication, means that 30% of Africans by 2030 will have regular income, be able to afford quality education for their children and can provide a paid holiday annually. Also, 45% of Africans are predicted to live in cities which will make the continent the most urbanized continent in the world. Herein lies opportunity for trade with the continent. Africa - an Integrated Trade Region According to the AU, Africa currently has the lowest percentage of intra-regional trade in the world at 18%. However, African ExportImport Bank believes that this figure could more than double within the first decade after implementing the recently signed Africa Intercontinental free trade deal.

Hence, from the foregoing, Africa’s economic attractiveness and appeal continue to be on the rise. Since the African Growth and Opportunities Act (AGOA) was approved by the US Congress in May 2000, and the very first Forum on ChinaAfrica Cooperation in November 2006, major leading economies, are strategically positioning themselves for the future prosperity that is trade and investments in Africa. In closing this piece, what quickly comes to mind are myriads of questions such as – does Africa clearly understand the sheer scope of the opportunities that lie within her boundaries? Do we have integrating mechanisms to maximize the benefits of the FDI these summits may likely generate? Is the future wealth of Africa sustainable, judging by the level of future skills deficiency on the continent today? Do we have our trade deals structured and designed to ensure the terms of engagement with foreign investments are not dangerously skewed in favour of some of the socalled investors, almost making certain “FDIs” look like daylight robbery? How productive are the conversations around the AfCFTA and how ready are the African nations signed on implementing this agreement in individual countries? Answering these questions may well help us structure better deals for the future of our unborn ones, as we explore home grown solutions and strategies for the future we seek. Conclusively, in an age of ever-complex and interconnected challenges and risks, we are greater together than the sum of our individual parts. Let us harness Africa’s investment potentials – let us harness the future today!

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Ken Giami

www.africanleadershipmagazine.co.uk

AKINWUMI ADESINA

8 | African Leadership | March - April 2020

Category Cover

Akinwumi Adesina:

Africa's Optimist-in-chief & ALM African of the Year 2019 Easily one of Africa’s most illustrious sons, the continent’s promoter - in chief and President African Development Bank Group, Dr Akinwumi Adesina’s pro-Africa shuttles across the globe is receiving attention and support. He recently emerged African of the Year 2019 in the continent’s premium vote-based poll, which attracts over 1 million votes from Africans across the globe. The awards is reserved for Africans who are contributing towards promoting the continent and positively altering her image. Often described as Africa’s Developer – in – Chief; Optimist – in – Chief and Economic Commander, Dr Adesina believes that Africa does not need to beg to be developed and he tells us why in this exclusive interview. Dr Akinwumi in this interview with African Leadership Magazine also speaks on the Bank’s activities, investment in Africa and the gains of a connected continent. Excerpts:

The African Economic Outlook report 2020 was recently launched by the African Development Bank which called for an urgent investment in education, due to the large skills gap and mismatch. What informed this position? So, the African Economic Outlook Report was launched recently and I must say I am really proud of the report, as well as the continent. So, simply put, the report say that Africa’s growth rate last year was 3.4%; this year it is projected to be 3.5% and next year it is anticipated to be 4.1%. However, that doesn’t tell you the whole story. We actually have 20 countries that are growing by 3.5% and another 20 countries that are growing at above 5% well above the global average. Look at Rwanda for instance, which is growing at over 8%, Ghana 7.1%, Ethiopia 7.4%, Benin 6.7%, among others. But what is actually mindboggling is that those growth rates are not contributing towards reducing the number of the extremely poor people on the continent. So this is good, but like I said, nobody eats GDP. Growth must be felt in the lives of the people. Growth must make a difference in our lives - things like access to quality healthcare, access to water sanitation, access to education, and access to quality life. So, the report shows that Africa needs to do more in the area of education. We are doing pretty much at the moment, but we need to do more, like invest in physical infrastructure. But physical infrastructure is not enough. Our report shows that, if you invest in infrastructure and

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So, we are investing in the jobs of the future and not the jobs of the past. That said, I am very excited about Africa’s prospects. That’s why they call me Africa’s Optimist in Chief and I like it.

human capacity, we can increase the GDP to more than 30%. So, it’s not just about investing, but, strategic investments. We are in the era of 4th industrial revolution. You have automation, artificial intelligence, robotics, biotechnology and nanotechnology. So we have got to retool and reskill, because all these new developments means that the world is moving rapidly. So, as a bank we have launched a program called Jobs for Youths in Africa, to help the continent create twenty-five million jobs over the next ten years. We are investing and working with Microsoft and Google to set up coding centres across the continent, because coding would be the currency of the future. So, we are investing in the jobs of the future and not the jobs of the past. That said, I am very