The Journal of African Business Issue 12

THE JOURNAL OF
AFRICAN
BUSINESS
MARCH/APRIL/MAY 2025
ESG DEMANDS ON THE
INCREASE
Risks to infrastructure from climate change
must now be reported
HOW 5G IS DRIVING
INFRASTRUCTURE
INVESTMENT
CULTIVATING RESILIENCE
Agriculture’s role in climate-change
mitigation and adaptation
BORING BUSINESSES ARE
GOOD BUSINESS
LEVERAGING THE SHIFT TO
AN ELECTRIC ECONOMY
There are huge opportunities for Africa in
critical minerals
CATALYTIC INFRASTRUCTURE FUNDING
The CEO of the Development Bank of Southern Africa, BOITUMELO MOSAKO,
wants the financier to tackle Africa’s most urgent challenges.
26 - 28 February 2025
Cape Town

DBSA’s Leadership in Driving
Africa’s Sustainable
Infrastructure Development
The Development Bank of Southern Africa (DBSA) stands as a trailblazer in Africa’s
development finance landscape, driving transformative infrastructure projects that
underpin socio-economic growth and environmental sustainability. Through strategic
partnerships and an unwavering commitment to governance excellence, DBSA has
cemented its role as a catalyst for Africa’s resilience, prosperity, and sustainability.
Driving Inclusive and Sustainable Growth
DBSA’s core mission is rooted in financing infrastructure projects that create lasting socio-economic and
environmental benefits. In the 2023–2024 financial year, the Bank demonstrated its transformative
impact by disbursing R12.3 billion to critical infrastructure initiatives across the continent. From
renewable energy and water projects to advancing digital education platforms, DBSA’s investments
are shaping Africa’s future.
Among these initiatives, the Renewable Energy Independent Power Producer Procurement
Programme (REIPPPP) stands out. DBSA’s investments in solar and wind energy projects have
attracted R210 billion in funding, significantly expanding South Africa’s renewable energy capacity
while aligning with global climate objectives.
Unlocking Economic Potential Through the Lobito Corridor
A key component of DBSA’s impact is its support for the Lobito Corridor, a game-changing regional
infrastructure project connecting Angola, the Democratic Republic of Congo (DRC), and Zambia. This
corridor serves as a strategic trade route, enabling the seamless movement of goods from resource-rich
inland regions to global markets via the Lobito Port. By enhancing logistics and infrastructure along this corridor,
DBSA is unlocking significant economic potential, reducing trade costs, and fostering regional integration.
The Lobito Corridor exemplifies the Bank’s commitment to high-impact projects that not only accelerate
economic growth but also create jobs and improve livelihoods across multiple countries. This transformative
initiative demonstrates the value of coordinated development efforts in fostering shared prosperity.

Transformative Projects and Strategic Collaborations
DBSA’s ability to deliver high-impact projects is amplified by its focus on strategic partnerships. For instance, its financing of the $34
million Virtual University of Senegal demonstrates how digital innovation can expand access to quality education. Similarly, DBSA’s
collaboration with the Trans-Caledon Tunnel Authority (TCTA) facilitated a R1.2 billion investment to enhance water infrastructure,
bringing reliable clean water to underserved communities.
Partnerships with global leaders such as the African Development Bank (AfDB) and European
Investment Bank (EIB) have enabled DBSA to co-finance critical infrastructure and climateresilience
projects. These alliances underscore the Bank’s capacity to mobilise resources
and drive development at scale.
Governance: The Cornerstone of Success
DBSA’s adherence to rigorous governance principles is pivotal to its
effectiveness. By prioritising transparency, accountability, and alignment with
national and global goals, the Bank ensures optimal resource mobilisation and
deployment. This governance strength has preserved DBSA’s strong credit
ratings and reinforced investor confidence, enabling it to execute projects
that create jobs, reduce poverty, and deliver sustainable outcomes.
Leadership in Climate Finance
DBSA’s leadership in climate finance exemplifies its forward-thinking
approach. By leveraging blended finance models, the Bank has
mobilised investments for renewable energy and climate-resilient
projects, despite inherent risks. Participation in global forums like COP28
and COP29 has solidified DBSA’s position as a thought leader in climate
action, championing initiatives that drive green industrialisation and
Africa’s low-carbon transition.
Expanding Impact Through Global Alignment
Aligning with international frameworks such as the G20 and sustainability
goals, DBSA continues to promote financial inclusion and equitable
development. Its contributions to Financial Inclusion for Sustainable
Growth initiatives highlight a dedication to inclusive systems that empower
underserved communities. Collaborations with public development banks
(PDBs) further establish DBSA as a key player in shaping sustainability
standards and greening financial systems globally.
A Vision for Africa’s Future
DBSA’s remarkable achievements in 2023–2024 reflect its unwavering
commitment to fostering a resilient, inclusive, and sustainable Africa. From
pioneering digital education initiatives to driving renewable energy investments
and supporting the transformative Lobito Corridor, the Bank has consistently
demonstrated its capacity to transform challenges into opportunities.
As DBSA strengthens its global partnerships and continues aligning with
sustainability frameworks, it solidifies its reputation as a trusted partner in
Africa’s development. Through innovation, sustainability, and governance,
DBSA is not just building infrastructure, it is building a future where Africa
thrives and prospers.

FOREWORD
From the editor’s desk.
NEWS FROM ALL AROUND AFRICA
Recent investments, expansions and milestones.
PACCI
The Pan African Chamber of Commerce and Industry (PACCI) is
the continent’s foremost business chamber body.
ESG DISCLOSURE DEMANDS ON THE INCREASE IN AFRICA
Risks to infrastructure from climate change are among the more detailed reporting
requirements that African businesses now face, writes Philippa Burmeister.
AFRICA NEEDS TO PRESENT A UNITED FRONT AT COP
Tina Costa and Gregory Nott, directors at Norton Rose Fulbright South Africa, call
for a “winner’s mindset” from the continent’s leaders at annual COP gatherings.
CULTIVATING RESILIENCE
Agriculture’s role in climate-change mitigation: adaptation of a speech given by Dr
Andrea Campher, Senior Manager Sustainability and Agribusiness at Standard Bank.
COULD WATER WHEELING SOLVE AFRICA’S WATER CRISIS?
Adapting the concept of wheeling for water distribution could bring flexible and efficient
water management to dry regions, according to Helgaard Muller, Director at Cresco.
HOW 5G IS DRIVING INFRASTRUCTURE INVESTMENT
By Rami Osman, Director for Business Development, MediaTek Middle East and Africa.
BORING BUSINESSES ARE GOOD BUSINESS
Bakeries and laundries might be “boring”, but their records
can attract capital, says Ryan Cohen, co-founder and Chief
Relationship Officer, Merchant Capital, in an interview.
TAKING ACTION THROUGH LEARNERSHIPS
Daniel Orelowitz, Managing Director at Training
Force, believes that youth unemployment can be addressed.
AFRICA CAN LEVERAGE THE SHIFT TO AN ELECTRIC ECONOMY
Mining companies may need to scale down to withstand
current strains, argues Igor Hulak, a Partner at Kearney, but
there are also huge opportunities in critical minerals.
COUNTRY PROFILES
Madagascar and Mozambique.
6
8
10
16
20
24
26
29
32
34
38
40
Contents
Contents
The Journal of
The Journal of
African Business
African Business
A
A Silver Tsunami is on the way, says Ryan Cohen, co-founder and Chief Relationship Officer, Merchant Capital, and Africa’s
young entrepreneurs have opportunities to take over established businesses. Bakeries and laundries might be “boring”,
but they can attract capital based on their record.
BORING BUSINESSES ARE GOOD BUSINESS
An interesting trend in business ownership that has been identified in the United
States could be relevant to the local markets. And Merchant Capital, which offers
funding to small and medium enterprises, has spotted the trend and is acting on it.
In the course of a Zoom conversation with The Journal of African Business,
Ryan Cohen, co-founder and Chief Relationship Officer, Merchant Capital,
referenced a “Silver Tsunami”, a concept which he says caused the penny to
“properly” drop for him as a provider of business finance. His research uncovered
the fact that millions of US business owners are coming up for retirement:
2.3-million business owners over the age of 60 who are responsible for employing
about 25-million people.
A second trend which Ryan has identified is also relevant here: the importance of
“boring” businesses. By boring, he means businesses that supply the basic products
and services that communities need.
“These guys are actually the backbone to the economy, the businesses that
provide essential goods and services,” he notes. “More often than not their business
models are uncomplicated, they’re tried and tested. In your neighbourhood, what
do you have? You’ve got a pharmacy, you’ve got a pet store, you’ve got a hardware
store, you’ve got a fuel station — now these businesses aren’t cutting edge but
they’re essential and often they are very successful.”
Boring businesses tend to be in the same place for a long time; they become
a fixture in the community. “For the incumbent it is a real opportunity and for the
guy who is looking for the next opportunity it is slightly more difficult,” notes Ryan.
However, if these boring businesses, which have been providing essential services
for many years start becoming available to a new generation of entrepreneurs as
the Silver Tsunami grows then, “There is a huge opportunity of boring businesses
that are available for young, ambitious people to buy into or to take over and giving
themselves an opportunity to become entrepreneurs.”
Financing factors
Time in business is an important input regarding business finance. These businesses
are often highly profitable and because they have been managed by seasoned
professionals they have stable foundations with established operations, making it
easier to forecast future performance. Cohen mentioned that on average buying an
existing business can cost up to 40% less than starting one. With a trading history,
it is far easier for established businesses to apply for the working capital or funding
they need to grow the business.
Ryan says, “We refer to our value proposition as asset-free, so it is unsecured.
The process is very quick, simple and easy. These business owners are often timepoor
and may not have the ability to put together long complicated documents.
Process approval and funding time happens in less than 48 hours. One of the other
key benefits is that repayment fluctuates in line with businesses’ turnover. That is
the combination of the unique selling propositions of this offering.”
Managing Merchant Capital’s risk profile is based on the company’s
“really strong credit know-how and understanding that relate to SME
businesses”. That experience goes back to 2012 and includes deploying about
R10-billion to close to 50 000 businesses. The funder’s deal size range is
between R250 000 and R5-million.
The grey dividend
The other side of the Silver Tsunami is that grey hair can sometimes be a good
thing in an entrepreneur. Someone who has worked in a bakery for decades
is likely to have a good understanding of what it takes to run a bakery.
Notes Ryan, “I am generalising here, but people who are 40 and up, based on the
experience that they have and the fact that they are bumping their heads less, the
chance for success is certainly greater.”
The old adage about not being able to buy experience applies. Ryan adds,
“You need to have seen a movie in order to make a better decision the next time
Ryan Cohen, co-founder and Chief Relationship Officer, Merchant Capital.
it presents itself. It can be countered in younger business owners when there is
a strong mentorship and let’s call it grey hair or access to grey hair. In some
instances, that’s not available so the propensity for success may be less. But with
older business owners in many respects, they are the grey hair.”
Boring benefits
Given that Merchant Capital’s model is partly based on turnover, it’s easy to
see how the concept of “boring” businesses has traction. Remarks Ryan, “The
key benefit to a boring business is the fact that there’s stability and there is
predictability from a customer perspective and customers translate into revenue.
You have a predictable revenue stream going through the till on a monthly basis.
There is often lower completion in a particular area and that means higher and
more consistent margins.
These businesses are also resilient. A practical example of being stress tested was
during Covid. A lot of these boring businesses were deemed essential and were able
to navigate and trade through this period, and they are well enough positioned to
take advantage of opportunities when times are good.”
And it is these businesses which are coming up for renewal, and not only in the
US. Ryan states, “In South Africa there are about six-million people who are over
the age of 60. A percentage of those people are business owners and a percentage of
the children of those business owners will want to pursue other careers. But what
if in that community there is a young industrious person who says to themselves,
I could add operational efficiency through tech and upgrading of customer service
to it and eek out higher margins and a better return. All of a sudden it becomes an
interesting opportunity for older business owners to sell out, get the cash that they
need, and you’ve got new young blood in the business.”
The younger owners bring the “ingenuity that comes with youth and energy”,
together with ambition. Ryan relishes the story of the owners of a small tuckshop
in Mamelodi who approached Merchant Capital for a small loan about ten years
ago. As Ryan reports, “The last advance we gave him was about R750 000 and he
runs a liquor store, a bar and a restaurant. Now he is building accommodation!”
Stories like that inspire Ryan. As he says, “This ingenuity is such a powerful thing
but if you don’t have the working capital and the know-how as to where to get it, you
are left sitting with this genius that is just nascent and stuck. Being able to unlock
that is why I get out of bed.”
The bigger picture includes the role of SMEs in the broader economy,
“the lifeblood of the economy”, as Ryan describes it. He states, “If we are to have
a successful and active SME layer to the country, the economy can thrive, new
businesses will open, more people will be employed, and we need that badly.
We wake up every day to serve the entrepreneur and anything that we can do
at Merchant Capital to help this sector for the greater good of themselves,
potential staff and the economy that’s what we want to do.”
Scaling up a butchery to become a Shisanyama, a venue for barbecuing meat, or creating a
fully-fledged restaurant are options for new owners taking on an established business.
PHOTO: SA Tourism/Flickr | PHOTO: 5M2T
Providing what communities need is a good basis for a solid business.
32 33
SME
SME FUNDING
FUNDING
Mining and ecotourism are promising economic sectors.
REPUBLIC OF MADAGASCAR
REPUBLIC OF MADAGASCAR
COUNTRY
COUNTRY PROFILE
PROFILE
PHOTO: iAko Randrianarivelo on Unsplash | MAP: Wikipedia
Large offshore gas fields could transform the economy.
REPUBLIC OF MOZAMBIQUE
REPUBLIC OF MOZAMBIQUE
PHOTO: Eni | MAP: Wikipedia
41
40
Capital: Antananarivo.
Other towns/cities: Toamasina, Antsirabe, Mahajanga.
Population: 28.8-million.
GDP: $16-billion.
GDP per capita: $528.
Currency: Ariary.
Regional Economic Community: African Union (AU), Southern African
Development Community (SADC), Organisation Internationale de la
Francophonie.
Landmass: Area: 587 041km².
Coastline: 6 000km.
Resources: Ilmenite (titanium ore), bauxite, graphite, copper, cobalt, chromite,
coal, rare-earth elements, salt, quartz, tar sands, semi-precious stones (sapphires),
mica, hydropower. Vanilla, cloves, ylang-ylang, coffee, lychees, fish, shrimp.
Main economic sectors: Agriculture, mining.
Other sectors: Fishing, forestry.
New sectors for investment: Mining (ilmenite, zircon, nickel), oil, gas, ecotourism.
Key projects: A five-year World Bank project aims to improve job opportunities
through transformative action, make growth more inclusive by addressing
weaknesses and inequities in public service delivery and create resilience to
shocks that can reverse improvements in growth or worsen socioeconomic
inequalities. Support for ecotourism and agriculture, paired with greater
investments in education, health and private enterprise, are key elements of the
strategy. The Antananarivo-Toamasina toll highway will connect the capital to
the largest seaport.
Chief exports: Vanilla, cloves, nickel, garments, cobalt.
Top export destinations: US, France, China, Japan, Germany.
Top import sources: China, India, France, Oman, South Africa.
Main imports: Refined petroleum, rice, fabric, palm oil, cotton fabric.
Infrastructure: Most roads are unpaved with paved roads totalling 7 617km in
2010. Railways 854km, navigable waterways 432km. Main port at Toamasina and
other ports at Antsiranana in the north and Taolagnaro in the south. The port of
Ehoala will revert to the state once Rio Tinto has completed its mining project.
Ivato International Airport is the main hub for Madagascar Airlines and is located
near the capital.
ICT Development Index: 26.4 (2023) ITU.
Mobile subscriptions per 100 inhabitants: 70 (2022) World Bank.
Internet percentage of population: 21 (2022) World Bank.
Climate: Three distinct regions have different characteristics: tropical along the
coast, temperate inland and arid in the south. The country is subject to tropical
cyclones. Because of its isolation, Madagascar is home to many unique species
of wildlife. There are a number of smaller islands other than the main landmass,
including Iles aux Nattes to the south, pictured.
Religion: Mostly Christian, including Catholic (34%), also traditional faiths and
small Muslim following.
Modern history: Madagascar was one of the last places to be settled by
humans. Arab traders used it as a hub before French and Portuguese trading
posts were established. With British missionaries present on the island, Queen
Ranavalona I responded by banning Christianity and banishing foreigners.
France invaded in 1883 and gained northern parts of the island. In 1895
French forces compelled Queen Ranavalona III to surrender and the royal
family went into exile. During World War II, Madagascar was ruled by Vichy
France, sympathetic to Germany. As a result, the UK captured the island to
deny its use by Japanese ships. The 1947-49 Malagasy Uprising was violently
suppressed by the French, who had resumed control. Independence was
achieved in 1960. A military council took over in 1972 and from 1975, Didier
Ratsiraka ruled as president of the Supreme Revolutionary Council. In 1992,
a democratic constitution was introduced. A coup in 2009 was followed by
an election that ended with the legislature and the executive at loggerheads.
Andry Rajoelina won the 2018 presidential election and started his third term
in 2023, having won a disputed election that was boycotted by most political
parties. Malagasy and French are the official languages.
COUNTRY
COUNTRY PROFILE
PROFILE
Capital: Maputo.
Other towns/cities: Matolo, Nampula, Beira.
Population: 34.7-million.
GDP: $20.6-billion.
GDP per capita: $608.
Currency: Metical.
Regional Economic Community: Commonwealth of Nations, Organisation
of Islamic Cooperation, Community of Portuguese Language Countries,
Non-Aligned Movement, Southern African Development Community, and
is an observer at La Francophonie.
Landmass: 801 537km².
Coastline: 2 700km.
Resources: Coal, titanium, natural gas, hydropower, tantalum, graphite.
Main economic sectors: Fishing, agriculture (72% of employment), food and
beverages, aluminium, oil and gas, chemical manufacturing.
Other sectors: Tourism, services.
New sectors for investment: liquefied natural gas (LNG) production at the Coral
South offshore facility, which has led to investment in sophisticated equipment,
pictured. Vast offshore reserves of natural gas found in the Rovuma Basin off the
northern coast. More than 1 000 mostly small state-owned enterprises have been
privatised and there are plans to privatise more.
Key projects: The Mozambique Country Climate and Development Report of
the World Bank emphasises the importance of mainstreaming climate action
into Mozambique’s planning, given the country’s vulnerability to the effects of
climate change.
Chief exports: Coal, aluminium, coke, natural gas, gold.
Top export destinations: India, South Africa, South Korea, Italy, China.
Top import sources: South Africa, South Korea, China, India, Democratic
Republic of the Congo.
Main imports: Ships, refined petroleum, iron alloys, chromium ore, refined copper.
Infrastructure: Most of the 30 000km road network is unpaved and driving is
on the left, in line with the former British colonies (and fellow members of the
Commonwealth) that surround the country. Maputo International Airport receives
flights from 10 airlines and is the hub for national Mozambican airline, LAM
Mozambique. There are a further 21 paved airports and more than 100 airstrips.
There are 3 750km of navigable inland waterways. The three deapsea ports have
rail links to inland and neighbouring countries. The Port of Maputo has links with
South Africa and Zimbabwe while the ports of Beira and Ncala connect to Malawi,
Zimbabwe and Zambia.
Mobile subscriptions per 100 inhabitants: 42 (2022) World Bank.
Internet percentage of population: 21 (2022) World Bank.
ICT Development Index: 25.8 2023 (ITU).
Climate: Tropical and subtropical. October to March is the wet season with heavy
rain along the coast and less rain in the interior. Cyclones are also common in the
wet season and several have caused great damage in recent years.
Religion: Roman Catholic and Muslim have the two largest groups of adherents
with Zionist Christians and Evangelical/Pentecostal both accounting for a further
15% each.
Modern history: The defining feature of modern Mozambican history is the legacy
of the 16-year civil war that ended in 1992. Having achieved independence from
Portugal in 1975 two groups, Frelimo and Renamo, engaged in fierce fighting.
Frelimo won elections held in 1994 but violence flared up again in 2013. Peace was
brokered in 2019 but by then an Islamist insurgency had flared up in the northern
province of Cabo Delgado which has put investment by international oil and gas
companies at risk. A presidential election, held in October 2024, was hotly disputed
after Frelimo’s candidate, Daniel Chapo, claimed a strong victory. Supporters of
Venâncio Mondlane, the candidate who was reported to have received 20% of the
vote, did not accept the result and months of protest resulted. Mondlane returned
to the country after a brief exile to further protests and strong police reaction. It is
hoped the some form of mediation can occur in 2025.
PHOTO: Sky Pixels/Wikimedia Commons
PHOTO: Mondi
17
16
S
Risks to infrastructure from climate change are among the more detailed reporting
requirements that African businesses now face, writes Philippa Burmeister, Consulting
Partner and Principal Environmental Scientist at SRK Consulting.
ESG DISCLOSURE DEMANDS ARE ON
THE INCREASE IN AFRICA
Sustainability-related disclosure is evolving rapidly across Africa, driven by
increasing awareness of environmental, social and governance (ESG) issues and
the need for greater transparency and accountability in business practices.
The Johannesburg Stock Exchange (JSE) has been a leader in this field on
the continent, aligning with stock exchanges in Europe and North America by
requiring listed companies to produce integrated reports that include sustainability
information. The African Securities Exchanges Association (ASEA) is also behind
this important agenda and is working towards harmonising sustainability reporting
standards across member exchanges, promoting best practices and consistency in
ESG disclosures.
Similarly, the African Development Bank (AfDB) is actively promoting sustainable
development and encouraging companies to adopt ESG reporting through various
initiatives and funding programmes. Most disclosure practices in Africa are being
shaped by international organisations and requirements such as the Global Reporting
Initiative (GRI), the Sustainability Accounting Standards Board (SASB) and the Task
Force on Climate-related Financial Disclosures (TCFD).
International lenders, responsible for much of the funding for projects within
Africa, also require assessment and reporting in terms of the TCFD as part of their
investment decision-making. While the TCFD has completed its mandate and has
been dissolved, the Financial Services Board (FSB) has requested the International
Financial Reporting Standards (IFRS) Foundation to assume responsibility for
overseeing companies’ progress with climate-related disclosures.
The IFRS released the IFRS S2 Sustainability Disclosure Standard in June 2023,
which guides climate-related disclosures, and this has been issued by the International
Sustainability Standards Board (ISSB). The standard requires entities to disclose
information about their climate-related risks and opportunities.
The requirements of the IFRS S2 Standard are consistent with the TCFD
Recommended Disclosure, but go further. While the TCFD provides a flexible,
voluntary framework specifically focused on climate-related risks and opportunities,
the IFRS S2 is part of a broader sustainability reporting framework with more detailed
and integrated requirements.
These two standards require reporting of both transitional and physical
climate risks. Climate-related transitional risks refer to risks that companies face
as a result of the transition to a lower-carbon economy. Climate-related physical
risks, on the other hand, refer to the risk of climatic changes on infrastructure
and operations.
Risks associated with climate change now form part of more sophisticated ESG reporting requirements.
ESG
ESG REPORTING
REPORTING
Complex disclosure
This evolution of more complex and in-depth disclosure requirements – and the
need for assessment as part of investment decision-making – has demanded the
development of specialised expertise in the consulting space. This includes services
to address both climate transitional and physical risks. For transitional risks, clients
need access to skills such as greenhouse-gas quantification and transitional-risk
assessment. Consulting teams of mining engineers are also developing skills in
decarbonisation, so that engineers can draw on their mine-design experience to
identify and design options that are suitable for specific sites.
On the climate-physical risk side, skills are required in climate-change projection,
preferably incorporating a range of different disciplines and with independent peer
review. These new demands are leading to the development and advancement of
specialised tools. These tools will be used to create long-term meteorological datasets
and downscale climate-change projections to ensure they are site specific and the
risks identified are applicable to the site being assessed. These tools will be critical in
the identification of potential physical risks and inform measures required to adapt
to the changes.
It is clear that Africa is not being left behind in the global drive for more detailed
sustainability reporting. Fortunately, the mining sector has access to considerable
local experience and expertise which both benchmarks against and contributes to
global best practice.
Climate-change projection is becoming increasingly important, allowing for long-term meteorological datasets and predictions that are specific to a particular site.
Philippa Burmeister, partner and principal environmental scientist
ABOUT THE AUTHOR
Philippa Burmeister, an expert in integrated environmental management
with over 20 years of experience, specialises in air-quality and climate-change
adaptation. Dedicated to innovation and strategic planning, she has developed
effective strategies for addressing climate change, environmental management
and sustainability.
ABOUT SRK CONSULTING
SRK Consulting is an independent, global network of over 45 consulting practices
on six continents. Its experienced engineers and scientists work with clients in
multi-disciplinary teams to deliver integrated, sustainable technical solutions
across a range of sectors – mining, water, environment, infrastructure and energy.
For more information, visit www.srk.co.za
Schneider Electric has launched a training lab in Malawi. Officially launched at the Don Bosco Youth Technical Institute facilities in Lilongwe,
the Schneider Electric Lab is a modern electrical-installation laboratory, aimed at providing practical training for those pursuing careers
in the electrical industry. The Technical, Entrepreneurial and Vocational Education and Training Authority (TEVETA) in Malawi and the Don
Bosco Youth Technical Institute are the other partners.
The lab is equipped with professional Schneider Electric equipment, providing students with the tools and training required to meet
global standards in the electrical industry. These include industrial wiring solutions and industrial automation solutions. The equipment
which students will have access to includes: 24V PLC programming and simulation desktop trainers, three-phase variable speed/
frequency drive-training panels, combination of motor-starter-trainer kits and various types of motors. The Schneider Electric Lab forms
part of Schneider Electric’s broader commitment to empowering the next generation through education, as outlined in its Schneider
Sustainability Impact (SSI) programme that aligns with the UN Sustainable Development Goals (SDGs), aiming to train and empower onemillion
people by 2025.
LABORATORY FOR ELECTRICIANS
The last leg of the fibre route of Paratus Botswana was completed in 2024, bringing to fruition the new Botswana Kalahari Fibre (BKF) route. A total of 840km of fibre was
laid between the Namibian border and Lobatse. The route represents an investment of approximately BWP70-million in Botswana and is the largest significant investment in
its own infrastructure by Paratus Botswana to date. The BKF completes the last leg of the Paratus-built Trans Kalahari Fibre (TKF) route, which runs from Johannesburg to
Swakopmund in Namibia. The new route creates the lowest latency primary transit path through Botswana and Namibia to Europe. The new BKF will connect Botswana and
neighbouring countries to various international subsea cables and to the rest of the world. Paratus Botswana and Paratus Namibia have worked closely together in the bid
to connect South Africa to the Equiano cable in Swakopmund. According to Africa Practice and Genesis Analytics, commissioned by Google, Equiano is forecast to more than
double Internet speeds and increase internet penetration by 7.5% in the next three years. Paratus also announced the launch of its Gaborone metro-fibre ring in 2024.
TRANS KALAHARI FIBRE ROUTE COMPLETED
NEWS
NEWS
KPMG has been publishing a “Global CEO Outlook” for 10 years. In 2024 the first Africa “CEO Outlook Report” came out,
carrying the views and insights of the continent’s business leaders.
In introducing the publication, Ignatius Sehoole, Africa Chairman and CEO, KPMG in Africa, wrote that, “This year,
we place a particular focus on geopolitics, given the recent surge in political tensions over the past year, which has
impacted the economic side of business. Despite these challenges, the report confirms that African CEOs can unlock
opportunities through effective geopolitical risk management, which is crucial for boosting Africa’s economy.”
For the first time, KPMG engaged with over 130 CEOs and business leaders across Southern, East and West Africa
to gain insights into the region’s dynamic business environment. KPMG says its commitment to Africa remains strong
as the continent presents numerous growth opportunities in the business environment. Insights from the selected
CEOs highlight both the opportunities and challenges their organisations face. These insights explore important areas
such as how businesses have evolved to navigate the shifting landscape while managing complex economic and geopolitical challenges.
In his foreword, Sehoole drew attention to how, “With the evolving workforce dynamics across the African continent, people-related issues remain a key focus for leaders. CEOs have
identified an interesting link between skills, technology and the reality of ageism, all while navigating a changing environment.”
The key findings of the survey were:
• CEOs identify technology and generative AI, talent, ESG and geopolitics as the top four risks facing their organisation’s growth prospects
• Ethically implementing emerging technologies is a paramount priority
• 77% of African CEOs highlight ethical dilemmas as a big challenge within their enterprises
• Key investment priorities include governance models and transparency protocols, addressing environmental challenges with a focus on diversity, equity and inclusion.
KPMG HAS PUBLISHED AN INAUGURAL “AFRICA CEO OUTLOOK”
A strong message was delivered at the CIPS Africa Conference 2024 that economies
and societies across the continent can be transformed through the implementation of
ethical and responsible procurement practices.
The two-day conference, hosted by the Chartered Institute for Procurement &
Supply (CIPS) at Johannesburg’s Houghton Hotel in May, brought together industry
leaders from around Africa to discuss how these practices can help nations develop
and prosper.
The example of Rwanda was cited by a conference participant, noting that huge gains
had been made in combating corruption through its zero-tolerance policy and publiceducation
campaigns that promote ethical behaviour.
The CIPS Africa Excellence in Procurement and Supply Chain Management Awards
delivered a wide range of winners in several categories. These included risk mitigation
(Safari.com), collaborative teamwork project (DKT International Nigeria), delivering
social value through procurement (FNB), public-sector transformation programme
(Transnet), sustainability (Equity Bank Limited), digital technology (Rohloff Group),
people-development programme (Rand Water), public procurement (Sentech) and the
procurement team of the year (large organisation) was Builders.
PROCUREMENT AS A VEHICLE FOR CHANGE
© 2024 KPMG Services Proprietary Limited, a South African company with registration number 1999/012876/07 and a member firm of the KPMG global organization
of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Africa
CEO
Outlook
Report
2024
More than 130 CEOs in Africa share
their views on geopolitics, return-tooffice,
ESG and generative AI.
Recent investments, expansions and milestones.
NEWS FROM ALL AROUND AFRICA
NEWS FROM ALL AROUND AFRICA
The Africa Finance Corporation (AFC) and the Japan Institute for Overseas Investment (JOI) have signed a Memorandum of Understanding
(MOU) to drive transformative projects that will accelerate Africa’s energy transition and enhance economic sustainability. AFC is one of
the continent’s leading infrastructure solutions providers and JOI is an initiative of the Japan Bank for International Cooperation (JBIC).
This is one of several programmes designed to facilitate capital flows through insights, risk-mitigating solutions and access to finance. As
Kenichiro Hayashi, President of JOI, explained, “Together with AFC, we will provide Japanese companies with the necessary information.”
AFC’s presence in the Japanese capital markets continues to grow. In 2022, AFC secured a $389-million dual-currency Samurai termloan
facility, which attracted strong interest from Japanese investors, including Mizuho Bank, MUFG Bank and Sumitomo Mitsui Banking
Corporation. In 2019, AFC launched its first Samurai loan facility, raising $233-million and ¥1-billion.
SCALING INVESTMENT IN AFRICA
9
8
A
These disruptions not only threaten the livelihoods of farmers but also our
global food supply. We’re witnessing first-hand how climate change is reshaping
agriculture and we must recognise this challenge if we want to forge a path forward.
Agriculture is the foundation of our survival; by nurturing the land, we nurture
our future.
What is meant by climate-smart agriculture? Climate-smart agriculture (CSA)
refers to a strategy for managing landscapes to address the challenges of climate
change and food security. CSA aims to increase productivity, enhance resilience
and reduce emissions of farming practices. Therefore, mitigation and adaptation
practices underpin the achievement of these goals.
Mitigation strategies
Firstly, mitigation refers to the ways we reduce, avoid or sequester greenhouse gases
through various practices. Some examples are:
Regenerative agriculture is an approach that emphasises diversified farming
systems, moving away from conventional farming. By integrating crops and
livestock, farmers can reduce emissions while enhancing biodiversity. Imagine a
farm where crops and livestock coexist, creating a balanced ecosystem that benefits.
The solution is to adopt a fresh perspective on how we cultivate our land.
Soil health is another key strategy. Practices like cover cropping, agroforestry and
no-till farming not only protect the soil but also sequester carbon, transforming
it into a natural carbon sink. Healthy soil is essential for resilient crops and it’s a
win-win for both farmers and the environment.
Precision agriculture is also revolutionising the way we farm. By using
technology to optimise resources – such as using water and fertilisers more
effectively – farmers can reduce waste and enhance productivity. This not
only decreases emissions but also leads to more efficient use of our precious
resources. This reduces input costs and creates more sustainable profits over
the longer term.
Renewable energy sources are being harnessed by many farmers. Imagine a
farm powered entirely by the sun, not only reducing reliance on fossil fuels but
also cutting energy costs. This can be taken further by linking that solar system to
irrigation systems to effectively use water resources. This shift to renewable energy
can play a crucial role in making agriculture more sustainable.
Additional mitigation strategies: energy-efficient equipment (no-tillage
implements, fuel efficient or electric tractors), reduction of food loss and waste,
hydro-power, improved feeding practices for livestock, biodigesters, hydroponics,
crop rotation or recycling.
A practical example is investing in waste-to-energy solutions on a dairy farm,
such as a biodigester, which converts animal manure into energy while producing
fertiliser as a by-product. By adopting this practice, the farmer not only promotes
a circular-economy approach but also mitigates emissions and disposes of waste
by transforming it into a valuable resource.
As climate-smart agriculture practices sequester soil-organic carbon, it presents
an opportunity to earn carbon credits and to incentivise those fostering the
CULTIVATING RESILIENCE: AGRICULTURE’S ROLE IN
CULTIVATING RESILIENCE: AGRICULTURE’S ROLE IN
CLIMATE-CHANGE MITIGATION AND ADAPTATION
CLIMATE-CHANGE MITIGATION AND ADAPTATION
Adaptation of a speech given by Dr Andrea Campher, Senior Manager Sustainability and Agribusiness at
Standard Bank, to the Standard Bank/Business Day Climate Smart Agriculture Seminar, November 2024.
PHOTO: Leiliane Dutra on Pexels
According to the Food and Agriculture Organisation, climate change could
reduce global agricultural productivity by up to 30% by 2050. This is in the
context of needing to feed nearly 10-billion people by then.
I’ll never forget growing up in a small farm town where we would pray for rain
in church on Sundays. Drought has been a harsh reality for my community, one
of many small towns struggling to thrive economically. Fields that once flourished
have turned to dust, leaving farmers to watch helplessly as their crops wither under
the relentless sun. It is said that if the farmer struggles, the farmworker struggles.
Then the local business and the local school, leaving a ripple effect on our rural
economies. This personal story is not just an anecdote; it’s a reality for many.
This presentation illustrates that agriculture is both a contributor to greenhousegas
emissions and a powerful ally in mitigating and adapting to climate change.
Let’s start by understanding the challenges we face. Climate change is not a
distant threat; it’s here, impacting agriculture in profound ways. The African
continent warmed at a rate of +0.3°C/decade between 1991 and 2023, a slightly
faster rate than the global average.
Over 60-million people were affected globally by the 2023/24 El Niño, which
brought extreme weather events such as droughts, heatwaves and floods. Vulnerable
regions like Southern Africa and the Horn of Africa were hit hardest, worsening
food insecurity in areas already under strain – this is while agricultural demand
in Africa will need to be increased by approximately 80% by 2050. It is estimated
that African governments spent US$2.2-billion managing weather-related natural
disasters in 2023. But the cost to the farmer individually was much higher.
environment. Various solutions through waste-to-energy, biochar, soil-organic
carbon and agroforestry can earn farmers additional income. The key lies in
reimagining our approach to agriculture.
Adaptation strategies
Alongside mitigation, we must focus on adaptation strategies. Adaptation
involves adjusting agricultural practices and systems to cope with the
impacts of climate change, ensuring resilience and sustainability in the face
of changing conditions.
Resilient crop varieties: Crops that can withstand extreme weather conditions
such as drought-resistant or flood-tolerant varieties can significantly bolster food
security in vulnerable regions.
Water management: Innovative techniques like drip irrigation and rainwater
harvesting improve efficiency and make farms more resilient to water scarcity. By
adopting these practices, farmers can ensure they’re using water wisely, even in
times of drought.
Other adaptation practices include agricultural insurance, weather forecasting,
sustainable water-storage solutions or integrated pest management. Climate-smart
decision-making underpins the success of implementing these practices.
A practical example is investing in practices that safeguard crops against
drought by implementing soil moisture conservation techniques, such as
mulching and cover cropping. These methods enhance water retention and
improve soil health. Furthermore, there is scope to investigate new technologies
that improve water efficiencies in drier seasons or improve draining systems
for waterlogged field crops.
Standard Bank’s Climate-Smart Agriculture Strategy supports the threepronged
approach through decarbonisation solutions such as smart water, energy,
equipment and practices in building resilience and promoting low emissions while
we need to ensure farmers stay profitable.
The World Meteorological Organization estimates that the cost of adaptation
is $30-billion to $50-billion annually over the next decade for governments, but
what will this cost for the farmer who is struggling to access finance – his land, his
inheritance, his assets, his hard-won labour?
Innovation is the key to unlocking the potential of our challenges; let’s innovate
our way out of crisis.
Call to action
We all have a role in supporting sustainable agricultural practices, whether through
advocacy, investing, making informed consumer choices or engaging in our
communities. Each of us can contribute to this vital cause.
We stand at a pivotal moment in the fight against climate change. We have a
choice: to adapt and thrive or to ignore the signs and face dire consequences. By
embracing mitigation strategies that reduce emissions and investing in adaptation
practices that enhance resilience, we can transform agriculture into a cornerstone
of climate solutions.
Imagine a future where agriculture not only feeds the world but also serves as a
robust buffer against climate change.
Together, let’s cultivate a future where our farms are not just sources of
sustenance but powerful allies in the battle for a sustainable planet. The time for
action is now – let’s rise to the challenge and grow a sustainable tomorrow!
PHOTO: Erwan Hesry on Unsplash | PHOTO: Wynand Uys on Unsplash
25
24
SUSTAINABLE
SUSTAINABLE AGRICULTURE
AGRICULTURE
4

DRIVING CHANGE:
HOW THE DBSA IS
TRANSFORMING
AFRICA THROUGH
INFRASTRUCTURE
DEVELOPMENT
Amid the rapid changes and challenges facing the world today,
infrastructure development emerges as a vital pillar of economic
stability and sustainable growth.
The Development Bank of Southern Africa (DBSA) plays a
pivotal role in transforming the African development landscape
by addressing critical gaps in energy, transportation, water, and
ICT infrastructure.
As one of Africa’s leading development finance institutions, the
DBSA is more than a financier; it is a catalyst for sustainable
change. By fostering regional integration and enabling access
to essential services, the Bank drives forward its mission of
building a prosperous, inclusive continent.
SHAPING AFRICA’S INFRASTRUCTURE FOR TODAY AND
TOMORROW
The DBSA leads infrastructure projects designed to tackle
Africa’s most urgent challenges. Its investments in renewable
energy contribute significantly to the Just Energy Transition
Plan (JETP), reducing carbon emissions and expanding energy
access. By prioritising projects that empower communities, build
resilience, and address inequalities, the DBSA ensures that
development benefits reach those who need them most.
In the transport and logistics sector, the DBSA supports
initiatives that connect African markets and communities,
fostering trade, and economic cooperation. These projects
generate jobs, enhance cross-border trade, and position Africa
as a competitive player in the global economy. Similarly, the
Bank’s investments in water and sanitation infrastructure
improve the quality of life for millions while addressing critical
health and environmental challenges.
THE DBSA’S UNIQUE ROLE IN AFRICA’S DEVELOPMENT
Africa’s infrastructure deficit presents a daunting challenge,
requiring innovative approaches and significant investment.
The DBSA plays a vital role in closing this gap by mobilising
resources, de-risking investments, and crowding in private sector
capital. Its expertise ensures that projects are both viable and
sustainable, delivering tangible impacts across the continent.
What truly sets the DBSA apart is its ability to foster partnerships
that amplify its impact. By collaborating with governments,
private investors, and multilateral organisations, the Bank
structures financing solutions that unlock stalled projects and
turn transformative ideas into reality. This collaborative approach
not only strengthens regional development but also positions
Africa as a destination for sustainable investment.
BUILDING GLOBAL PARTNERSHIPS FOR AFRICAN
DEVELOPMENT
The DBSA actively engages with international partners to advance
Africa’s development priorities. Through its co-hosting of the Finance
in Common Summit (FiCS 2025) alongside the Asian Infrastructure
Investment Bank (AIIB) and in partnership with the Agence Française
de Développement (AFD), the DBSA demonstrates the importance of
global collaboration in addressing infrastructure challenges.
AIIB, renowned for financing sustainable infrastructure across
Asia and beyond, brings valuable expertise in green financing
and innovative solutions that align with Africa’s needs. Meanwhile,
AFD, with its long-standing commitment to climate-resilient projects
in Africa, complements the DBSA’s focus on transformative
infrastructure. Together, these institutions exemplify how
partnerships can accelerate progress and unlock opportunities for
sustainable development.
DRIVING INCLUSIVE GROWTH THROUGH INNOVATION
The DBSA champions infrastructure that addresses Africa’s
immediate needs while preparing the continent for future
challenges. Its investments create systems that enable
communities to thrive and economies to grow. From renewable
energy projects powering homes and businesses to digital
connectivity initiatives opening new avenues for education and
commerce, the DBSA’s impact is far-reaching.
As Africa’s population grows and urbanises, the demand for
scalable and sustainable solutions intensifies. The DBSA rises
to this challenge with a forward-thinking approach that combines
financial expertise, innovative project design, and a deep
commitment to social and environmental responsibility.
A VISION FOR SUSTAINABLE DEVELOPMENT
The DBSA’s work goes beyond financing projects; it is about building
a future where Africa thrives. By focusing on high-impact sectors,
fostering partnerships, and championing sustainable development, the
DBSA ensures its investments leave a lasting legacy.
Through leadership, innovative financing, and unwavering
commitment, the DBSA is not merely transforming infrastructure, it
is laying the foundation for building Africa’s enduring prosperity.

26 - 28 February 2025
Cape Town
FOREWORD
The Journal of African Business
A unique guide to business and investment in Africa.
Welcome to The Journal of African Business. Since the inaugural issue was published
as an annual in 2020, the quarterly format has been adopted, giving our team more
opportunities to bring to readers up-to-date information and opinions and offering
our clients increased exposure at specific times of the year.
We cover a broad range of topics, ranging from energy, agriculture, manufacturing
and mining to tourism and skills development.
A great deal of debate is happening at the intersection of climate change, climatechange
policies, African mining resources and the global need for critical minerals
in order to transition to an electric economy. An article in this issue by two directors
of Norton Rose Fulbright expressly enjoins African leaders to take a more proactive
stance at COP gatherings, one that is partnership-seeking and solution-oriented.
The Development Bank of Southern Africa (DBSA) is playing a key role in
supporting Africa’s transition to a greener economy as a mobiliser of climate finance,
and aspects of that role are unpacked in this edition. DBSA is focussed on a holistic
approach to a Just Transition, in which the benefits of the green economy are felt by
a wider range of Africans.
Igor Hulak, a Partner at Kearney, highlights some of the uncertainties that are
currently roiling international mining markets. African mining companies may need
to pivot or scale down to withstand the current strains and maintain their operations,
he states, but there are also huge opportunities to leverage the continent’s wealth of
base and precious metals.
Risks to infrastructure from climate change are among the more detailed
reporting requirements that African businesses now face, writes Philippa Burmeister,
Consulting Partner and Principal Environmental Scientist at SRK Consulting. Rami
Osman, Director for Business Development, MediaTek Middle East and Africa,
contributes an article on how 5G is driving infrastructure investment.
Dr Andrea Campher, Senior Manager Sustainability and Agribusiness at Standard
Bank, outlines the steps agriculture can take to become more sustainable while
Helgaard Muller, Director at Cresco, reports that water wheeling might be the
solution to Africa’s water crisis.
An interview with Ryan Cohen, co-founder and Chief Relationship Officer,
Merchant Capital, reveals that a Silver Tsunami is on the way. With so many of Africa’s
population being young people, the continent’s entrepreneurs have opportunities to
take over established businesses. Bakeries and laundries might be “boring”, but they
can attract capital based on their record.
Global Africa Network is a proudly African company which has been producing
region-specific business and investment guides since 2004, including South African
Business and Nigerian Business, in addition to its online investment promotion
platform www.globalafricanetwork.com.
JOHN YOUNG
Editor, The Journal of African Business
Email: john.young@gan.co.za
THE JOURNAL OF
AFRICAN
BUSINESS
MARCH/APRIL/MAY 2025
ESG DEMANDS ON THE
INCREASE
Risks to infrastructure from climate change
must now be reported
HOW 5G IS DRIVING
INFRASTRUCTURE
INVESTMENT
CULTIVATING RESILIENCE
Agriculture’s role in climate-change
mitigation and adaptation
BORING BUSINESSES ARE
GOOD BUSINESS
LEVERAGING THE SHIFT TO
AN ELECTRIC ECONOMY
There are huge opportunities for Africa in
critical minerals
CATALYTIC INFRASTRUCTURE FUNDING
The CEO of the Development Bank of Southern Africa, BOITUMELO MOSAKO,
wants the financier to tackle Africa’s most urgent challenges.
Editor: John Young
Publishing director: Chris Whales
Managing director: Clive During
Online editor: Christoff Scholtz
Designer: Elmethra de Bruyn
Production: Ashley van Schalkwyk
Project manager: Chris Hoffman
Account managers: Venesia Fowler, Tennyson Naidoo,
Sam Oliver, Tahlia Wyngaard, Gavin van der Merwe,
Graeme February, Shiko Diala, Gabriel Venter, Vanessa
Wallace, Sadiyah Roubain and Dwaine Rigby
Administration & accounts: Charlene Steynberg,
Kathy Wootton, Sharon Angus-Leppan
Distribution & circulation manager:
Edward MacDonald
The Journal of African Business is
published by Global Africa Network Media (Pty) Ltd
Company Registration No: 2004/004982/07
Directors: Clive During, Chris Whales
Physical address: 28 Main Road, Rondebosch 7700
Postal: PO Box 292, Newlands 7701
Tel: +27 21 657 6200 | Email: info@gan.co.za
Website: www.globalafricanetwork.com
No portion of this book may be reproduced
without written consent of the copyright owner.
The opinions expressed are not necessarily those
of The Journal of African Business magazine, nor
the publisher, none of whom accept liability of
any nature arising out of, or in connection with,
the contents of this publication. The publishers
would like to express thanks to those who support
this publication by their submission of articles
and with their advertising. All rights reserved.
Printing: FA Print
Member of the Audit Bureau of Circulations
6

NEWS FROM ALL AROUND AFRICA
Recent investments, expansions and milestones.
TRANS KALAHARI FIBRE ROUTE COMPLETED
The last leg of the fibre route of Paratus Botswana was completed in 2024, bringing to fruition the new Botswana Kalahari Fibre (BKF) route. A total of 840km of fibre was
laid between the Namibian border and Lobatse. The route represents an investment of approximately BWP70-million in Botswana and is the largest significant investment in
its own infrastructure by Paratus Botswana to date. The BKF completes the last leg of the Paratus-built Trans Kalahari Fibre (TKF) route, which runs from Johannesburg to
Swakopmund in Namibia. The new route creates the lowest latency primary transit path through Botswana and Namibia to Europe. The new BKF will connect Botswana and
neighbouring countries to various international subsea cables and to the rest of the world. Paratus Botswana and Paratus Namibia have worked closely together in the bid
to connect South Africa to the Equiano cable in Swakopmund. According to Africa Practice and Genesis Analytics, commissioned by Google, Equiano is forecast to more than
double Internet speeds and increase internet penetration by 7.5% in the next three years. Paratus also announced the launch of its Gaborone metro-fibre ring in 2024.
LABORATORY FOR ELECTRICIANS
Schneider Electric has launched a training lab in Malawi. Officially launched at the Don Bosco Youth Technical Institute facilities in Lilongwe,
the Schneider Electric Lab is a modern electrical-installation laboratory, aimed at providing practical training for those pursuing careers
in the electrical industry. The Technical, Entrepreneurial and Vocational Education and Training Authority (TEVETA) in Malawi and the Don
Bosco Youth Technical Institute are the other partners.
The lab is equipped with professional Schneider Electric equipment, providing students with the tools and training required to meet
global standards in the electrical industry. These include industrial wiring solutions and industrial automation solutions. The equipment
which students will have access to includes: 24V PLC programming and simulation desktop trainers, three-phase variable speed/
frequency drive-training panels, combination of motor-starter-trainer kits and various types of motors. The Schneider Electric Lab forms
part of Schneider Electric’s broader commitment to empowering the next generation through education, as outlined in its Schneider
Sustainability Impact (SSI) programme that aligns with the UN Sustainable Development Goals (SDGs), aiming to train and empower onemillion
people by 2025.
8

© 2024 KPMG Services Proprietary Limited, a South African company with registration number 1999/012876/07 and a member firm of the KPMG global organization
of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
NEWS
PROCUREMENT AS A VEHICLE FOR CHANGE
A strong message was delivered at the CIPS Africa Conference 2024 that economies
and societies across the continent can be transformed through the implementation of
ethical and responsible procurement practices.
The two-day conference, hosted by the Chartered Institute for Procurement &
Supply (CIPS) at Johannesburg’s Houghton Hotel in May, brought together industry
leaders from around Africa to discuss how these practices can help nations develop
and prosper.
The example of Rwanda was cited by a conference participant, noting that huge gains
had been made in combating corruption through its zero-tolerance policy and publiceducation
campaigns that promote ethical behaviour.
The CIPS Africa Excellence in Procurement and Supply Chain Management Awards
delivered a wide range of winners in several categories. These included risk mitigation
(Safari.com), collaborative teamwork project (DKT International Nigeria), delivering
social value through procurement (FNB), public-sector transformation programme
(Transnet), sustainability (Equity Bank Limited), digital technology (Rohloff Group),
people-development programme (Rand Water), public procurement (Sentech) and the
procurement team of the year (large organisation) was Builders.
Africa
CEO
Outlook
Report
2024
More than 130 CEOs in Africa share
their views on geopolitics, return-tooffice,
ESG and generative AI.
KPMG has been publishing a “Global CEO Outlook” for 10 years. In 2024 the first Africa “CEO Outlook Report” came out,
carrying the views and insights of the continent’s business leaders.
In introducing the publication, Ignatius Sehoole, Africa Chairman and CEO, KPMG in Africa, wrote that, “This year,
we place a particular focus on geopolitics, given the recent surge in political tensions over the past year, which has
impacted the economic side of business. Despite these challenges, the report confirms that African CEOs can unlock
opportunities through effective geopolitical risk management, which is crucial for boosting Africa’s economy.”
For the first time, KPMG engaged with over 130 CEOs and business leaders across Southern, East and West Africa
to gain insights into the region’s dynamic business environment. KPMG says its commitment to Africa remains strong
as the continent presents numerous growth opportunities in the business environment. Insights from the selected
CEOs highlight both the opportunities and challenges their organisations face. These insights explore important areas
such as how businesses have evolved to navigate the shifting landscape while managing complex economic and geopolitical challenges.
In his foreword, Sehoole drew attention to how, “With the evolving workforce dynamics across the African continent, people-related issues remain a key focus for leaders. CEOs have
identified an interesting link between skills, technology and the reality of ageism, all while navigating a changing environment.”
The key findings of the survey were:
• CEOs identify technology and generative AI, talent, ESG and geopolitics as the top four risks facing their organisation’s growth prospects
• Ethically implementing emerging technologies is a paramount priority
KPMG HAS PUBLISHED AN INAUGURAL “AFRICA CEO OUTLOOK”
• 77% of African CEOs highlight ethical dilemmas as a big challenge within their enterprises
• Key investment priorities include governance models and transparency protocols, addressing environmental challenges with a focus on diversity, equity and inclusion.
SCALING INVESTMENT IN AFRICA
The Africa Finance Corporation (AFC) and the Japan Institute for Overseas Investment (JOI) have signed a Memorandum of Understanding
(MOU) to drive transformative projects that will accelerate Africa’s energy transition and enhance economic sustainability. AFC is one of
the continent’s leading infrastructure solutions providers and JOI is an initiative of the Japan Bank for International Cooperation (JBIC).
This is one of several programmes designed to facilitate capital flows through insights, risk-mitigating solutions and access to finance. As
Kenichiro Hayashi, President of JOI, explained, “Together with AFC, we will provide Japanese companies with the necessary information.”
AFC’s presence in the Japanese capital markets continues to grow. In 2022, AFC secured a $389-million dual-currency Samurai termloan
facility, which attracted strong interest from Japanese investors, including Mizuho Bank, MUFG Bank and Sumitomo Mitsui Banking
Corporation. In 2019, AFC launched its first Samurai loan facility, raising $233-million and ¥1-billion.
9

PACCI UPDATES
ADDRESSING THE SHORTCOMINGS OF
THE AFCFTA COMPETITION POLICY
A briefing document from the Pan African Chamber of Commerce and Industry, PACCI. Authors: Aminou Akadiri,
Executive Director, Federation of West African Chamber of Commerce and Industry (FWACCI), and Wincate M Muthini,
Senior Programme Manager at PACCI.
benefits of the AfCFTA. The policy does not provide enough safeguards to ensure
that these marginalised groups are integrated into the new trade landscape, which
could result in widening regional and social inequalities.
The competition policy lacks a clear focus on inclusive growth which
would include women-led, youth-led and rural enterprises.
The African Continental Free Trade Area (AfCFTA) competition policy is a
significant step towards fostering economic integration and creating a unified
market across Africa. It holds the potential to break down trade barriers, promote
fair competition and unlock new opportunities for businesses. However, the policy in
its current form risks falling short of addressing the deeper structural, economic and
social challenges facing the continent. Without a more inclusive and comprehensive
approach, the policy could inadvertently exacerbate existing inequalities, marginalise
vulnerable industries and limit the long-term benefits of the AfCFTA.
One of the major shortcomings of the competition policy is its insufficient
consideration of the structural inequalities that exist between large corporations
and smaller enterprises, particularly micro, small and medium-sized enterprises
(MSMEs). Larger businesses, with better access to capital, technology and markets,
are likely to dominate the AfCFTA landscape, crowding out smaller competitors.
MSMEs, which form the backbone of many African economies, may struggle to
survive in this new competitive environment without tailored support.
This would deepen the economic divide, leaving MSMEs unable to fully capitalise
on the opportunities created by the AfCFTA.
Moreover, the competition policy lacks a clear focus on inclusive growth. Womenled,
youth-led and rural enterprises — segments that already face barriers to market
entry and access to finance — are particularly at risk of being excluded from the
Key shortcomings
The current policy framework does not provide sufficient mechanisms for MSMEs
to seek redress when faced with unfair practices, which discourages competition
and undermines market fairness. Finally, the policy’s failure to address the informal
sector is a significant oversight. The informal economy accounts for a large portion
of economic activity in many African countries, yet it remains largely excluded from
the formal AfCFTA framework. Without strategies to integrate informal businesses
into the formal market, a significant share of the continent’s economic potential will
remain untapped.
Additionally, the policy fails to offer adequate protection to vulnerable industries
such as agriculture and small-scale manufacturing. These sectors, which are vital to
local economies in many African countries, could be overwhelmed by larger, more
competitive firms, leading to job losses and economic instability in regions that
rely heavily on these industries. Another critical shortcoming is the limited access
to dispute resolution mechanisms for MSMEs. Smaller businesses often lack the
resources to navigate complex legal frameworks, leaving them vulnerable to anticompetitive
practices by larger firms.
To address these challenges, more radical solutions are needed. First, the AfCFTA
competition policy must introduce a series of structural reforms aimed specifically at
levelling the playing field for MSMEs. This could include the creation of an African
MSME Development Fund, supported by the AfCFTA Secretariat and member
states, to provide direct financial support, technical assistance and market access
programmes for small businesses.
This fund should prioritise businesses in disadvantaged regions and sectors,
ensuring that they are not left behind in the race for growth. Additionally, member
states should adopt a more interventionist approach, introducing temporary market
protections for vulnerable sectors such as agriculture and small-scale manufacturing.
These industries should be given time to adjust to the competitive pressures of the
AfCFTA, with targeted subsidies and investment programs designed to enhance
productivity and resilience.
Proposed solutions
To promote inclusive growth, the AfCFTA competition policy should mandate the
inclusion of women-led, youth-led and rural enterprises in all trade-access and
market-access initiatives. This could be achieved through binding quotas that require
10
PHOTO: African Risk Capacity Group

PACCI UPDATES
large corporations to source a certain percentage of their inputs from businesses
owned by these groups.
Further, a continent-wide programme could be established to train and empower
women and youth entrepreneurs, equipping them with the skills, resources and
networks needed to thrive in the AfCFTA market. This approach would ensure that
economic opportunities are distributed more equitably, helping to reduce social and
regional disparities.
A more aggressive approach to dispute resolution is also necessary. The AfCFTA
competition policy should establish a dedicated MSME dispute resolution body,
offering a streamlined and accessible platform for small businesses to report anticompetitive
practices. This body could operate with a fast-track process, offering
affordable legal assistance and mediation services to ensure that MSMEs can
compete on fair terms. Additionally, penalties for anti-competitive behaviour by large
corporations should be significantly increased, with a portion of the fines directed to
the MSME Development Fund to further support smaller businesses.
Finally, the AfCFTA must take bold steps to formalise and integrate the informal
economy. This could involve a comprehensive programme of tax incentives,
simplified business registration processes and the introduction of digital platforms
that make it easier for informal businesses to transition into the formal market.
Governments, in partnership with the AfCFTA Secretariat, could also establish
innovation hubs and co-operatives to help informal businesses grow and connect
to formal value chains. These measures would not only increase the inclusivity of
the AfCFTA but also unlock significant economic potential that is currently lying
dormant in the informal sector.
In conclusion, while the AfCFTA competition policy marks a critical milestone in
Africa’s journey towards economic integration, it needs to be strengthened to address
the continent’s deeper structural and social challenges.
By adopting more radical and inclusive solutions – ranging from direct support
for MSMEs and marginalised groups to sectoral protections and informal economy
integration – the AfCFTA can truly become a driver of sustainable and equitable
growth. This will ensure that the benefits of Africa’s unified market are shared widely,
fostering a prosperous and resilient future for all.
Smaller businesses often lack the resources to navigate complex legal frameworks.
Aminou Akadiri, Executive Director, Federation of West African Chamber of Commerce and Industry.
PACCI contact details
Gulf Aziz Building 4th Floor 402, Bole, Addis Ababa, Ethiopia
Tel: +251 11 691 0011
Email: info@pacci.org
Website: www.pacci.org
Social media: @officialpacci
Wincate Muthini, Senior Programme Manager, PACCI.
PHOTO: Rodnae Productions on Pexels
11

PACCI UPDATES
ENSURING THE SUCCESS OF PAPSS:
OVERCOMING CHALLENGES FOR A
UNIFIED AFRICAN PAYMENT SYSTEM
By Kebour Ghenna, Executive Director, Pan African Chamber of Commerce and Industry (PACCI), and Mark Badu-Aboagye, Chief Executive
Officer, Ghana National Chamber of Commerce and Industry (GNCCI).
control of their financial systems, despite the potential
benefits of increased trade efficiency. Additionally,
regulatory differences among countries create obstacles
for the harmonisation of payment systems. Each nation
has its own financial regulations, data privacy laws and
security standards. Harmonising these different financial
regulations in the various countries under a unified
payment system presents significant challenges. Ensuring
compliance across borders is complicated and requires
ongoing coordination, which has slowed down PAPSS
adoption.
The Pan-African Payment and Settlement System (PAPSS) is a transformative
initiative under the African Continental Free Trade Area (AfCFTA), designed to
streamline cross-border payments and facilitate intra-African trade.
PAPSS aims to reduce the continent’s dependency on foreign currencies by
allowing businesses to settle transactions in their local currencies. By doing so,
it promises to reduce transaction costs, mitigate foreign-exchange risks and
improve trade efficiency. Despite its potential, PAPSS faces numerous challenges
that hinder its progress. These include governmental hesitancy, infrastructure
fragmentation, currency volatility and technological limitations. Additionally,
businesses continue to prefer stable foreign currencies, further complicating
PAPSS implementation. Unless strategic adaptations are made, PAPSS may
struggle to achieve its full potential.
KEY CHALLENGES TO PAPSS IMPLEMENTATION
Government hesitancy and policy reluctance
Governments across Africa are hesitant to fully adopt PAPSS due to concerns
about relinquishing control over monetary policy. Central banks in particular
are cautious about integrating their systems with PAPSS, for the fear that it may
limit their capacity to manage inflation and currency volatility. This is especially
relevant in countries with less stable currencies. There is a reluctance to surrender
Currency volatility and business preferences
African businesses remain cautious about conducting
trade in local currencies. The high volatility of many
African currencies, coupled with inflation concerns, makes
businesses wary of using PAPSS for cross-border payments.
Most prefer to trade in hard currencies, like the US dollar
or euro, which are globally accepted and perceived as more
stable. Even with PAPSS, businesses are concerned about the risks associated with
currency fluctuations and exchange rate instability, which could negatively impact
profitability.
The lack of proper currency-hedging mechanisms further compounds this
problem. Without tools to protect businesses from exchange-rate fluctuations, many
companies are reluctant to embrace a system that requires them to settle transactions
in local currencies. This creates a significant barrier to PAPSS adoption, especially
for small and medium-sized enterprises (SMEs), which are particularly vulnerable
to currency risk.
Technological and infrastructure gaps
The successful implementation of PAPSS requires robust digital infrastructure,
which is unevenly developed across African countries. While some nations, such
as South Africa and Kenya, have advanced financial technologies, others face
substantial challenges in terms of Internet penetration, digital literacy and financial
inclusion. Countries with underdeveloped digital infrastructure will struggle to
fully integrate with PAPSS, impeding the system’s seamless adoption.
Moreover, the technological infrastructure supporting payment systems in many
African countries is fragmented, making it difficult to harmonise different financial
networks. Centralised payment systems and digital banking infrastructure vary
12
PHOTO: Audy of Course on Pexels

PACCI UPDATES
widely across the continent. Limited access to reliable and affordable Internet,
especially in rural areas, further restricts the potential of PAPSS to reach its full
scale.
Cybersecurity concerns
As digital payment systems grow, so does the risk of cybersecurity threats. Many
African countries are ill-equipped to defend their financial infrastructure from
cyber attacks, making them vulnerable to disruptions. PAPSS, being a cross-border
digital system, is exposed to potential cyber risks that could destabilise its operations.
Without adequate cybersecurity protocols and investments in cyber defence, PAPSS
faces a risk of data breaches, fraud and disruptions that could erode trust in the
system.
Complexity of currency conversion and exchange-rate risks
PAPSS allows transactions in local currencies, but managing the conversion
between African currencies is an inherently complex task. The differences in
currency value, coupled with fluctuating exchange rates in the different countries,
create complications for cross-border trade. Businesses are uncertain about the cost
implications of converting their local currency to that of a trade partner, and the
risk of sudden exchange rate shifts could impact profitability. Although PAPSS aims
to mitigate these risks, the current absence of currency-hedging solutions leaves
businesses exposed to potential financial losses.
The National Bank of Rwanda is one of continent’s central banks
that will ensure the smooth running of the PAPSS.
practices for cybersecurity, PAPSS can build trust and encourage wider participation
among businesses and financial institutions.
Develop a phased virtual African currency
Over the long term, PAPSS could explore the development of a virtual African
currency to facilitate cross-border payments and reduce reliance on foreign exchange.
This digital currency could be introduced in phases, starting with regional digital
currency zones, before moving towards a continent-wide currency. This phased
approach would help PAPSS better address regional economic realities and establish
a strong foundation for eventual continental integration.
RECOMMENDATIONS FOR ENSURING THE SUCCESS OF PAPSS
Foster Public-Private Partnerships (PPP)
Governments and PAPSS should work closely with private financial institutions,
fintech companies and industry stakeholders to accelerate the adoption of the system.
Public-private partnerships can lead to innovative solutions such as integrating trade
finance, mobile banking and peer-to-peer finance services that cater directly to the
needs of African businesses. These partnerships can also expand PAPSS’s reach by
involving non-bank financial institutions, ensuring broader adoption and usability.
Incentivise the use of local currencies
Governments must introduce incentives to encourage businesses to trade in local
currencies. Financial incentives, such as reduced transaction fees, tax breaks or
regulatory exemptions should be offered to businesses that use PAPSS for cross- border
payments. Additionally, PAPSS should develop currency-hedging mechanisms to
protect businesses from the risks associated with currency fluctuations, making local
currency transactions more attractive and secure.
Improve technological integration and infrastructure development
African governments, with support from international organisations and private
partners, must invest in infrastructure development to bridge the digital divide and
ensure that all countries can participate in PAPSS. This includes upgrading Internet
connectivity, improving financial literacy and expanding access to digital banking
services, particularly in underdeveloped regions. These improvements are critical
for increasing PAPSS’s adoption across Africa. Finally, the successful implementation
of PAPSS is critical to the realisation of AfCFTA’s full potential. By addressing the
concerns of governments, businesses and the wider financial community, PAPSS can
become a transformative platform for African trade. However, this requires strategic
adaptation, including building public-private partnerships, incentivising the use of
local currencies and enhancing cybersecurity.
With sustained efforts, PAPSS can overcome the challenges it faces and help Africa
take a leading role in global trade by facilitating seamless, efficient and low-cost crossborder
payments.
Expand education and awareness campaigns
Many businesses are still unaware of the potential benefits of using PAPSS. To
address this, targeted education campaigns should inform businesses about the
advantages of PAPSS, such as faster payment settlements and reduced reliance on
foreign currencies. These campaigns should also address concerns about currency
volatility and provide real-world examples of successful PAPSS transactions to build
trust among businesses.
Enhance cybersecurity and data governance
A major priority for PAPSS must be investing in cybersecurity infrastructure to
protect the payment system against potential threats. Governments, in collaboration
with the private sector, should implement robust data-governance frameworks and
cybersecurity protocols to secure PAPSS operations. By adopting international best
Kebour Ghenna, Executive
Director, PACCI.
Mark Badu-Aboagye, CEO, Ghana National
Chamber of Commerce and Industry.
PHOTO: NBR
13

THE ALTVEST ORIENT OPPORTUNITIES FUND IS
OPENING DOORS
Altvest brings private investment opportunities to our communities.
Turbines in the Chinese province of Guangdong Sheng. Investors in the Altvest Orient Opportunities Fund can participate in priority sectors of the Chinese economy.
Altvest is:
• A platform that seeks to democratise alternative investments
• A platform that brings bespoke investment opportunities to ordinary people
• A platform that uses trusted media platforms to educate and raise awareness of
the investment opportunities.
What is the Orient Fund?
The Altvest Orient Opportunities Fund (AOOF) is a groundbreaking investment
vehicle providing South African investors access to China’s thriving venturecapital
market. AOOF, through a JSE-listed hybrid instrument, opens doors to
high-growth sectors like technology, healthcare and renewable energy, offering
diversification and a chance to align with China’s strategic economic goals.
What are the benefits of the Orient Fund?
Investing in AOOF offers three main advantages:
• Access to high-growth markets: Exposure to the main high-growth industries
in China such as AI, biotechnology and renewable energy.
• Expert management: Managed by RisCura, a global investment manager with
extensive expertise in capital markets in China, investors into AOOF can be
assured of risk management, compliance and proper allocation and management
of capital.
• Retail-friendly: Its structure allows retail investors to participate in venture
capital opportunities typically reserved for the ultra-rich and institutional
investors. This novel approach provides reliability to the retail investor while
democratising a commonly inaccessible asset class.
Why was the Orient Fund established?
AOOF was created to democratise access to alternative investments by
bridging South African capital with opportunities in China’s dynamic
venture-capital market. Historically, such investments were accessible only
to large institutions. AOOF ensures retail investors can participate in China’s
economic transformation, benefiting from industries aligned with the
nation’s growth policies.
Is there a similar product in the market?
While there are funds targeting emerging markets, few focus specifically on
China’s venture-capital sector and even fewer products provide such accessibility
for retail investors in an asset class of this calibre. AOOF’s hybrid structure –
14
PHOTO: Mike Liu on Pexels

INVESTMENT
Biotech is one of the sectors in which South African investors can buy a stake.
offering listed Class D shares on the JSE – makes it uniquely positioned as an
inclusive alternative investment product.
How would you rate it in terms of value for money?
AOOF stands out for its value proposition:
• Competitive returns: Target gross-internal-rates-of-return (IRRs) hover around
15–20% across key sectors.
• Strategic liquidity: Initial investments in liquid assets provide flexibility and
lower volatility during the venture-capital lifecycle.
• Cost efficiency: Fees are structured transparently with an annual advisory
fee capped at 2% and performance-linked charges, after meeting a 10%
hurdle rate.
Given its diversification, professional management and access to cutting-edge
industries, AOOF provides exceptional value for investors with a long-term outlook.
The target market for the Orient Fund
The Orient Fund targets a diverse market of South African retail and
institutional investors seeking exposure to high-growth opportunities in
China’s dynamic venture-capital ecosystem. This fund is ideal for individuals
and entities with a long-term investment horizon and a high tolerance for
risk, as it focuses on venture-capital opportunities in sectors like technology,
healthcare and renewable energy, sectors that align with China’s economic
growth strategy.
AOOF appeals to:
• Institutional investors: Pension funds, asset managers and banking institutions
looking to diversify portfolios with alternative assets.
• Retail investors: Everyday investors seeking access to venture-capital
opportunities traditionally reserved for elites, facilitated by the fund’s accessible
Class D shares listed on the JSE.
By bridging South African capital with China’s booming venture-capital market,
the Orient Fund empowers investors to participate in transformative global
innovations and diversify beyond conventional asset classes.
Contact details
Block B, 66 Rivonia Road, Sandton 2196
Email: info@altvestcapital.co.za
Website: www. altvestcapital.co.za
PHOTO: Edward Jenner on Pexels | PHOTO: Trinh Trần on Pexels
15

ESG DISCLOSURE DEMANDS ARE ON
THE INCREASE IN AFRICA
Risks to infrastructure from climate change are among the more detailed reporting
requirements that African businesses now face, writes Philippa Burmeister, Consulting
Partner and Principal Environmental Scientist at SRK Consulting.
Risks associated with climate change now form part of more sophisticated ESG reporting requirements.
Sustainability-related disclosure is evolving rapidly across Africa, driven by
increasing awareness of environmental, social and governance (ESG) issues and
the need for greater transparency and accountability in business practices.
The Johannesburg Stock Exchange (JSE) has been a leader in this field on
the continent, aligning with stock exchanges in Europe and North America by
requiring listed companies to produce integrated reports that include sustainability
information. The African Securities Exchanges Association (ASEA) is also behind
this important agenda and is working towards harmonising sustainability reporting
standards across member exchanges, promoting best practices and consistency in
ESG disclosures.
Similarly, the African Development Bank (AfDB) is actively promoting sustainable
development and encouraging companies to adopt ESG reporting through various
initiatives and funding programmes. Most disclosure practices in Africa are being
shaped by international organisations and requirements such as the Global Reporting
Initiative (GRI), the Sustainability Accounting Standards Board (SASB) and the Task
Force on Climate-related Financial Disclosures (TCFD).
International lenders, responsible for much of the funding for projects within
Africa, also require assessment and reporting in terms of the TCFD as part of their
investment decision-making. While the TCFD has completed its mandate and has
been dissolved, the Financial Services Board (FSB) has requested the International
Financial Reporting Standards (IFRS) Foundation to assume responsibility for
overseeing companies’ progress with climate-related disclosures.
The IFRS released the IFRS S2 Sustainability Disclosure Standard in June 2023,
which guides climate-related disclosures, and this has been issued by the International
Sustainability Standards Board (ISSB). The standard requires entities to disclose
information about their climate-related risks and opportunities.
The requirements of the IFRS S2 Standard are consistent with the TCFD
Recommended Disclosure, but go further. While the TCFD provides a flexible,
voluntary framework specifically focused on climate-related risks and opportunities,
the IFRS S2 is part of a broader sustainability reporting framework with more detailed
and integrated requirements.
These two standards require reporting of both transitional and physical
climate risks. Climate-related transitional risks refer to risks that companies face
as a result of the transition to a lower-carbon economy. Climate-related physical
risks, on the other hand, refer to the risk of climatic changes on infrastructure
and operations.
16
PHOTO: Sky Pixels/Wikimedia Commons

ESG REPORTING
Complex disclosure
This evolution of more complex and in-depth disclosure requirements – and the
need for assessment as part of investment decision-making – has demanded the
development of specialised expertise in the consulting space. This includes services
to address both climate transitional and physical risks. For transitional risks, clients
need access to skills such as greenhouse-gas quantification and transitional-risk
assessment. Consulting teams of mining engineers are also developing skills in
decarbonisation, so that engineers can draw on their mine-design experience to
identify and design options that are suitable for specific sites.
On the climate-physical risk side, skills are required in climate-change projection,
preferably incorporating a range of different disciplines and with independent peer
review. These new demands are leading to the development and advancement of
specialised tools. These tools will be used to create long-term meteorological datasets
and downscale climate-change projections to ensure they are site specific and the
risks identified are applicable to the site being assessed. These tools will be critical in
the identification of potential physical risks and inform measures required to adapt
to the changes.
It is clear that Africa is not being left behind in the global drive for more detailed
sustainability reporting. Fortunately, the mining sector has access to considerable
local experience and expertise which both benchmarks against and contributes to
global best practice.
Philippa Burmeister, partner and principal environmental scientist
ABOUT THE AUTHOR
Philippa Burmeister, an expert in integrated environmental management
with over 20 years of experience, specialises in air-quality and climate-change
adaptation. Dedicated to innovation and strategic planning, she has developed
effective strategies for addressing climate change, environmental management
and sustainability.
ABOUT SRK CONSULTING
SRK Consulting is an independent, global network of over 45 consulting practices
on six continents. Its experienced engineers and scientists work with clients in
multi-disciplinary teams to deliver integrated, sustainable technical solutions
across a range of sectors – mining, water, environment, infrastructure and energy.
For more information, visit www.srk.co.za
Climate-change projection is becoming increasingly important, allowing for long-term meteorological datasets and predictions that are specific to a particular site.
PHOTO: Mondi
17

TRANSFORMING LOGISTICS
CEO Derek Mans is upbeat about South Africa’s economy and the role that Grindrod Logistics can play in unlocking value
for customers through the intelligent use of data analytics.
Can you share the company’s vision for the future of the South African
logistics sector?
The vision is to be the market leader in inland container-depot warehousing,
transport and reefer products in South Africa and eventually Southern Africa with
a very strong technology enabler running the business.
can be significant if you are moving 15 000 tons of magnetite, as we have done
for a customer.
We have 13 warehouses and 120 000m² of space. Our annual output is about
2.2-million tons from the warehouses, and we move about 28 000 units a year on
rail and about 480 000 units by road.
How does the partnership with Maersk enhance your capabilities?
Grindrod Logistics (GLO) is a JV with 51% owned by Maersk. With two
powerhouses as shareholders, it assists in the broader scheme of things but
especially when it comes to brand recognition. The decision to keep the Grindrod
name was a testament to a good brand. Maersk understands the dynamics of the
shipping industry and having a partnership with a global shipping company is
a massive enabler for inland logistics. Utilising excellent cold-chain services and
making sure that orders are completed on time is probably the most important
part of the partnership.
What sets GLO apart in terms of the end-to-end logistic solutions?
We have our own infrastructure from pick-up to drop-off, all the way to stacks
(piles of items). We manage and can control the movement of our customers' goods
under one umbrella with no third-party handovers. In mining, we offer pit-toport.
Our new management is making sure that we make full use of the superb
infrastructure and strategic positioning that Grindrod has in South Africa.
Can you give an example?
If you are servicing the mining industry, the one way to lose a customer is to
not hit stacks in time because the price of commodities goes up and down. That
What is GLO doing in terms of sustainability?
We have gone electric with our handling equipment at depots. Transnet needs to
put charging systems in ports to create that support infrastructure. What we can do
is more rail and we do push as much of that as possible. A third of our facilities have
solar power and in the next two years, all facilities will have it. We have changed
our light bulbs and we are monitoring our emissions output on a monthly basis.
Is the Maersk global commitment to sustainability influencing Grindrod
Logistics’ targets?
Absolutely. Our core values are based on Maersk’s. Our shareholders require it.
Is GLO involved in projects to improve the flow of goods?
We work closely with Transnet. At Maydon Wharf in Durban, we have a very close
relationship with Transnet National Ports Authority and the property division. We
do what we can within our boundaries.
Is Transnet on the mend?
I do believe so. We have a no option but to fix the ports. There is the prospect of a
global tariff war. I don’t believe that will impact our whole economy, but it’s going
to impact a big part of it. Then we must ask, does BRICS come and save the day?
18

LOGISTICS
BRICS contains countries with good growth rates and investment potential. We are
going to see if BRICS can actually play a part in assisting growth.
With the market poised for growth what are some of the trends that you foresee?
I am obsessed with absorbing information and I am a serial subscriber. The top 10
articles right now from journals and bodies like Harvard Business Review, Forbes
and S&P are all about AI. It’s about time that we realise that it is real. Technology
and the one who is the most up-to-date with their technology, is the one who is
going to win.
We need to be future-proofed. How do I believe AI will play a role in logistics?
Nobody is going to give an app a container of tobacco worth R20-million to move
because you need to hold someone accountable. But for business intelligence (BI),
AI will be vital. I am very much a big-data BI analytical freak. Information can
be cut down and analysed, then you can offer operational-excellence initiatives,
continuous improvement, cost saving and guidance on revenue generation.
AI is going to do all of that for us, take all of this big data in our system and tell
us what we need to know long before we even try to figure it out. In the next
three years it is going to be the one who is the most advanced who will come
out on top.
And do you have a strong technology staff complement?
We do, but I have also recently hired a data science honours student because we
are busy implementing our Ground Command Centre which goes live in May. It
is going to be the first of its kind in South Africa. It will be at our Denver facility in
Johannesburg, pictured, and it will not only be about transport.
We have 19 depots with hundreds of pieces of depot-handling equipment so that
capability will be in there. A central repository will tell the depots which machines
to use based on the hours that they have currently on the clock. We are also adding
warehouse BI so it will be comprehensive.
We were expecting a 2% economic growth which would have guaranteed foreign
investment but I think we hit 1.7%. The expectation is still that it will be 1.9% and
S&P is saying that in three years we will be over 2%. I see South Africa in a really
good place and I don’t want to deviate from my thought patterns in that regard: we
have all had enough of negative vibes and energy.
I think we are going to get foreign investment. The Trump issues and the BRICS
issues are going to play out, and we need to stand together and obviously work
with Africa. We need to realise that we do provide the world with key minerals
and commodities that they don’t have, copper, tobacco and lithium among others.
We have lots of arable land.
We are a continent that can only get better and that is probably why China got
involved at the right time; they think 100 years ahead.
We absolutely will play our part within the South African logistics industry. Our
clients will benefit from knowing that we are here for them and we offer services
that will assist their business in growth.
Assisting a client in growing is more important than anything else.
If we can help them in terms of infrastructure required or cash flow, let’s help
them. I would say to a business owner: the economy is in a good space, trust it,
trust your gut. Partner with the right partner, which is us, and let us help you along
the journey.
Does the Maersk part of the partnership help to address areas like cost efficiency
and delivery time?
Maersk has significantly assisted us in that regard. They have the correct
processes in place from a global level all the way down the chain. They are already
at the forefront of efficiency and what needs to be done in businesses. That’s one
of the main areas where having a JV with Maersk as the main shareholder is
invaluable, the sort of IP that they can share from an efficiency perspective and
a sustainability perspective.
What is your key message regarding GLO’s commitment to South Africa’s trade
and logistics infrastructure?
We are absolutely embedded with improving South Africa. Just before Donald
Trump was elected and he said all of these things are going to happen with tariffs, I
did a full study on what’s going to happen in South Africa with our economy. Our
economy is actually in a better place than it has been for almost 10 years. I am not
sure if anyone knows this.
Derek Mans, CEO of Grindrod Logistics.
19

AFRICAN NATIONS NEED
TO PRESENT A UNITED
FRONT AT COP MEETINGS
In the context of Africa experiencing negative
impacts from climate change, Tina Costa and Gregory
Nott, directors at Norton Rose Fulbright, call for
a “winner’s mindset” from the continent’s leaders
at annual COP gatherings, one that is proactive,
partnership-seeking and solution-oriented. This
article was written in the build-up to COP29.
AAfrica faces a stark reality: contributing less than 4% of global greenhouse gas
Engaging the expertise of women farmers to grow Africa’s carbon market could be transformative.
emissions, the continent is disproportionately impacted by climate change,
threatening its development and stability. In the context of COP29, African nations
must align like never before to turn this imbalance into opportunity.
Every year, the annual Conference of the Parties (COP) meetings are held where
nations convene to assess progress in dealing with climate change and align on
climate action per the guidelines of the UN Framework Convention on Climate
Change (UNFCCC).
This 29th Conference of the Parties (COP), called the “Finance COP”, occurred
in Baku, Azerbaijan, between 11 and 22 November. Azerbaijan is located at the
boundary of Eastern Europe and West Asia.
A developing country which ranks 91st on the Human Development Index,
Azerbaijan is a petrostate with big plans for natural gas extraction to grow its gas
export market to Europe. The President of Azerbaijan, Ilham Aliyev, recently
highlighted these plans while also appealing for the need for COP29 to act on
behalf of developing nations.
Azerbaijan’s hosting of COP29 highlights the UNFCCC’s challenging task of
ensuring progress, alignment and agreement on developmental financing to reduce
carbon emissions to “limit the temperature increase to 1.5°C above pre-industrial
levels”, as per UNFCCC guidelines.
African heat on the rise
Since 1901, the vast majority of Africa has warmed by more than 1°C, with an
increase in heat waves and hot days. “The State of the Climate in Africa 2019”
report showed that climate change is having an increasing effect on the African
continent, with the most vulnerable being hit hardest by food insecurity, population
displacement and limited water supplies. These effects hit the most vulnerable
populations hardest, intensifying food insecurity, population displacement and
strained water resources across the continent. COP29 was a rare moment for
African nations to push back, not with a plea for aid, but with a compelling vision
for growth powered by sustainable partnerships.
Because climate change has adversely impacted the continent, Africa’s collective
voices must be amplified by its leaders at COP proceedings.
Africa has made great efforts to walk the talk, as demonstrated by the high
levels of ratification of the Paris Agreement (over 90%) and the number of African
nations that have already committed to transitioning to green energy over the short
term. Clean energy in agriculture, for example, is a priority in over 70% of African
national development plans.
However, Africa’s development is off track with the United Nations’ Sustainable
Development Goals (SDGs), which most developed nations are successfully
tracking against.
20
PHOTO: Freepik

CLIMATE CHANGE
The developed world is leading the discussions on climate-change mitigation
from a very different perspective than our continent, where 600-million people
have no access to electricity. This number is close to double the population of the
USA, which puts this mind-boggling power crisis into perspective.
African nations, therefore, face the unique challenge of reconciling climate
change mitigation and development goals. In many cases, the global focus on
climate financing is crowding out development funding for the continent, and
so any COP negotiations need to balance developmental objectives with a drive
for growth.
The continent, however, would do well not to arrive at COP meetings with
a mindset to secure aid but to present a united front among its leading African
nations that clearly articulates the role they see themselves playing in addressing
global climate change concerns.
The continent’s representatives would benefit from a “winner’s mindset” that is
proactive, partnership-seeking and solution-oriented, as guilt-tripping developedworld
nations has historically had limited positive impact on the continent.
Women’s participation in carbon markets
One of the areas where the continent can request partnerships and programme
assistance is its evolving carbon markets.
With 60% of Africa’s working women involved in agriculture and 26% engaged
in entrepreneurial pursuits, this continent is where women’s expertise in farming,
ecosystem management and business must be harnessed in the fight against climate
change. By addressing this gap, African leaders can ensure women are key players
and beneficiaries in this emerging market.
The rapid growth of the African carbon market currently lacks inclusivity,
with women notably absent from carbon-market leadership despite being at the
forefront of climate solutions. Policies and opportunities that enable women to be
key participants and beneficiaries in Africa’s evolving carbon markets can make a
significant positive impact.
Global carbon markets, particularly the voluntary-carbon market (VCM), are
on the rise. The VCM is a system where individuals, companies or organisations
can offset their carbon emissions by investing in projects that reduce or harness
equal amounts of greenhouse gases from the atmosphere, contributing to
environmental sustainability beyond regulatory requirements. According to the
African Development Bank (AfDB), the VCM will be valued at $40-billion by 2030.
With a contribution of 21% of the global carbon credits issued in 2021, Africa is in a
strong position to take advantage of this fast-growing global market’s opportunities.
This move would set a path to leverage carbon markets to generate environmental
gains and advance gender equality. Initiatives such as the African Union’s Decade of
Women’s Financial and Economic Inclusion, an African Union 2020 declaration,
help the continent scale up actions for progressive gender inclusion towards
sustainable national, regional and continental development.
The African Development Bank is publishing a policy paper on Gender
and Carbon Market Policy to emphasise the relevance of integrating gender
considerations into regional, national and local market operations. Despite
plentiful efforts to standardise the African carbon market, limited access for
women to knowledge and skills through education and training poses a challenge
to making this space gender inclusive.
The intersection of carbon markets and gender equality in Africa presents a
unique opportunity. With the support of key partner countries and regional
organisations, the continent can contribute significantly to global climate goals to
shape equitable carbon markets in Africa.
A call to action for Africa’s future
When African nations prepare for COP gatherings they should stand united,
resilient and ready to shape a future where Africa’s development and climate goals
are realised together. African leaders have a chance to make their voices heard not
only for today’s agenda but for future generations who will bear the consequences
of today’s actions.
ABOUT NORTON ROSE FULBRIGHT
Norton Rose Fulbright provides a full scope of legal services to the world’s preeminent
corporations and financial institutions. The global law firm has more than 3 000
lawyers advising clients across more than 50 locations worldwide, including London,
Houston, New York, Toronto, Mexico City, Hong Kong, Sydney and Johannesburg,
covering Europe, the United States, Canada, Latin America, Asia, Australia, Africa
and the Middle East. With its global business principles of quality, unity and integrity,
Norton Rose Fulbright is recognised for its client service in key industries, including
financial institutions; energy, infrastructure and resources; technology; transport; life
sciences and healthcare; and consumer markets.
www.nortonrosefulbright.com
Even as Africa rapidly becomes more urbanised, the continent’s contribution
remains less than 4% of global greenhouse gas emissions.
PHOTO: Kelly on Pexels
21

CULTIVATING RESILIENCE: AGRICULTURE’S ROLE IN
CLIMATE-CHANGE MITIGATION AND ADAPTATION
Adaptation of a speech given by Dr Andrea Campher, Senior Manager Sustainability and Agribusiness at
Standard Bank, to the Standard Bank/Business Day Climate Smart Agriculture Seminar, November 2024.
According to the Food and Agriculture Organisation, climate change could
reduce global agricultural productivity by up to 30% by 2050. This is in the
context of needing to feed nearly 10-billion people by then.
I’ll never forget growing up in a small farm town where we would pray for rain
in church on Sundays. Drought has been a harsh reality for my community, one
of many small towns struggling to thrive economically. Fields that once flourished
have turned to dust, leaving farmers to watch helplessly as their crops wither under
the relentless sun. It is said that if the farmer struggles, the farmworker struggles.
Then the local business and the local school, leaving a ripple effect on our rural
economies. This personal story is not just an anecdote; it’s a reality for many.
This presentation illustrates that agriculture is both a contributor to greenhousegas
emissions and a powerful ally in mitigating and adapting to climate change.
Let’s start by understanding the challenges we face. Climate change is not a
distant threat; it’s here, impacting agriculture in profound ways. The African
continent warmed at a rate of +0.3°C/decade between 1991 and 2023, a slightly
faster rate than the global average.
Over 60-million people were affected globally by the 2023/24 El Niño, which
brought extreme weather events such as droughts, heatwaves and floods. Vulnerable
regions like Southern Africa and the Horn of Africa were hit hardest, worsening
food insecurity in areas already under strain – this is while agricultural demand
in Africa will need to be increased by approximately 80% by 2050. It is estimated
that African governments spent US$2.2-billion managing weather-related natural
disasters in 2023. But the cost to the farmer individually was much higher.
These disruptions not only threaten the livelihoods of farmers but also our
global food supply. We’re witnessing first-hand how climate change is reshaping
agriculture and we must recognise this challenge if we want to forge a path forward.
Agriculture is the foundation of our survival; by nurturing the land, we nurture
our future.
What is meant by climate-smart agriculture? Climate-smart agriculture (CSA)
refers to a strategy for managing landscapes to address the challenges of climate
change and food security. CSA aims to increase productivity, enhance resilience
and reduce emissions of farming practices. Therefore, mitigation and adaptation
practices underpin the achievement of these goals.
Mitigation strategies
Firstly, mitigation refers to the ways we reduce, avoid or sequester greenhouse gases
through various practices. Some examples are:
Regenerative agriculture is an approach that emphasises diversified farming
systems, moving away from conventional farming. By integrating crops and
livestock, farmers can reduce emissions while enhancing biodiversity. Imagine a
farm where crops and livestock coexist, creating a balanced ecosystem that benefits.
The solution is to adopt a fresh perspective on how we cultivate our land.
Soil health is another key strategy. Practices like cover cropping, agroforestry and
no-till farming not only protect the soil but also sequester carbon, transforming
it into a natural carbon sink. Healthy soil is essential for resilient crops and it’s a
win-win for both farmers and the environment.
Precision agriculture is also revolutionising the way we farm. By using
technology to optimise resources – such as using water and fertilisers more
effectively – farmers can reduce waste and enhance productivity. This not
only decreases emissions but also leads to more efficient use of our precious
resources. This reduces input costs and creates more sustainable profits over
the longer term.
Renewable energy sources are being harnessed by many farmers. Imagine a
farm powered entirely by the sun, not only reducing reliance on fossil fuels but
also cutting energy costs. This can be taken further by linking that solar system to
irrigation systems to effectively use water resources. This shift to renewable energy
can play a crucial role in making agriculture more sustainable.
Additional mitigation strategies: energy-efficient equipment (no-tillage
implements, fuel efficient or electric tractors), reduction of food loss and waste,
hydro-power, improved feeding practices for livestock, biodigesters, hydroponics,
crop rotation or recycling.
A practical example is investing in waste-to-energy solutions on a dairy farm,
such as a biodigester, which converts animal manure into energy while producing
fertiliser as a by-product. By adopting this practice, the farmer not only promotes
a circular-economy approach but also mitigates emissions and disposes of waste
by transforming it into a valuable resource.
As climate-smart agriculture practices sequester soil-organic carbon, it presents
an opportunity to earn carbon credits and to incentivise those fostering the
24
PHOTO: Leiliane Dutra on Pexels

SUSTAINABLE AGRICULTURE
environment. Various solutions through waste-to-energy, biochar, soil-organic
carbon and agroforestry can earn farmers additional income. The key lies in
reimagining our approach to agriculture.
Adaptation strategies
Alongside mitigation, we must focus on adaptation strategies. Adaptation
involves adjusting agricultural practices and systems to cope with the
impacts of climate change, ensuring resilience and sustainability in the face
of changing conditions.
Resilient crop varieties: Crops that can withstand extreme weather conditions
such as drought-resistant or flood-tolerant varieties can significantly bolster food
security in vulnerable regions.
Water management: Innovative techniques like drip irrigation and rainwater
harvesting improve efficiency and make farms more resilient to water scarcity. By
adopting these practices, farmers can ensure they’re using water wisely, even in
times of drought.
Other adaptation practices include agricultural insurance, weather forecasting,
sustainable water-storage solutions or integrated pest management. Climate-smart
decision-making underpins the success of implementing these practices.
A practical example is investing in practices that safeguard crops against
drought by implementing soil moisture conservation techniques, such as
mulching and cover cropping. These methods enhance water retention and
improve soil health. Furthermore, there is scope to investigate new technologies
that improve water efficiencies in drier seasons or improve draining systems
for waterlogged field crops.
Standard Bank’s Climate-Smart Agriculture Strategy supports the threepronged
approach through decarbonisation solutions such as smart water, energy,
equipment and practices in building resilience and promoting low emissions while
we need to ensure farmers stay profitable.
The World Meteorological Organization estimates that the cost of adaptation
is $30-billion to $50-billion annually over the next decade for governments, but
what will this cost for the farmer who is struggling to access finance – his land, his
inheritance, his assets, his hard-won labour?
Innovation is the key to unlocking the potential of our challenges; let’s innovate
our way out of crisis.
Call to action
We all have a role in supporting sustainable agricultural practices, whether through
advocacy, investing, making informed consumer choices or engaging in our
communities. Each of us can contribute to this vital cause.
We stand at a pivotal moment in the fight against climate change. We have a
choice: to adapt and thrive or to ignore the signs and face dire consequences. By
embracing mitigation strategies that reduce emissions and investing in adaptation
practices that enhance resilience, we can transform agriculture into a cornerstone
of climate solutions.
Imagine a future where agriculture not only feeds the world but also serves as a
robust buffer against climate change.
Together, let’s cultivate a future where our farms are not just sources of
sustenance but powerful allies in the battle for a sustainable planet. The time for
action is now – let’s rise to the challenge and grow a sustainable tomorrow!
PHOTO: Erwan Hesry on Unsplash | PHOTO: Wynand Uys on Unsplash
25

COULD WATER WHEELING
SOLVE AFRICA’S WATER
CRISIS?
The World Resource Institute expects medium to extremely high water-stress conditions in Eastern and Southern Africa by 2050.
Adapting the concept of wheeling, already popular in
electricity distribution, for water distribution, could
bring flexible and efficient water management to dry
Iregions, according to Helgaard Muller, Director at Cresco.
It wasn’t that long ago that Cape Town went through its Day Zero event and the
South African province of Gauteng is currently facing a crisis and struggling to
meet water demand. From a regional perspective, Zambia and Zimbabwe are
facing the severe drought conditions affecting Lake Kariba, resulting in knock-on
effects of major power cuts of up to 21 hours per day, as Zambia relies on 80% of
its electricity from the hydropower station at Lake Kariba.
“Water wheeling” is a possible solution to the water shortages the continent
faces, presented through the current imbalanced distribution system. With water
wheeling, certain areas that have surplus water, such as places that are near large
rivers or lakes, could help supply the drought-prone or water-scarce regions.
Helgaard Muller, director at specialist project-finance-advisory company
Cresco, explains that “wheeling” in the context of electricity, involves using a shared
transmission network to transport electricity from a generator to a customer, often
across large distances. “Adapting this concept for water distribution could offer
innovative solutions for more flexible and efficient water management, especially
in regions facing scarcity or distribution challenges,” says Muller.
The wheeling of energy allows third-party electricity to flow through an existing
network owned by another party for the benefit of an offtaker located at a remote
location. This is generally accepted to result in increased efficiency, resource
optimisation and reduced reliance on central providers.
Examples where electricity wheeling of especially renewable energy is being
applied can be found in Europe and in South Africa, as well as through the regional
Southern Africa Power Pool or SAPP, as it is generally known.
“Water stress is a reality and not a new concept. According to the World Resource
Institute, medium to extremely high water-stress conditions can be expected in regions
such as Eastern and Southern Africa by 2050. It is critical that we start doing something
about it,” says Muller.
PHOTO: AfDB

WATER
Infrastructure constraints
Muller adds that water shortages will affect certain regions more than others and
will require costly solutions. Challenges such as infrastructure constraints will
require complex and expensive development of new pipelines and reservoirs.
“For example, Gauteng does not have sufficient naturally occurring water
sources to support demand, and is already dependent on a ‘water wheeling’
arrangement from the Lesotho Highlands Water Scheme. Population growth
in the Gauteng area, as well as economic growth demands have resulted in
the current situation. Apart from local distribution, improved infrastructure
maintenance and construction projects, it is clear that additional water-wheeling
solutions (such as creating increased storage capacity in the Lesotho Highlands
Water Scheme) will need to be implemented,” he explains.
The concept
Like electricity wheeling, water wheeling would involve a system where entities
such as governments, municipalities and private suppliers could transport water
across existing pipelines to supply-demand points.
Muller says that a potential deployment mechanism could be through the
creation of a “common carrier” model, much like grid infrastructure in electricity.
The infrastructure could be managed by a third party or the government.
There are many potential benefits of water wheeling, including the optimisation
of resources from surplus regions to meet demand in deficit areas and the
environmental benefits resulting from the reduced need for new infrastructure,
leading to less disruption of natural ecosystems. In addition, water wheeling is a
reliable solution, since diverse sourcing reduces the risk of supply failure and it
also reaches new markets without directly investing in extensive infrastructure,
offering economic flexibility.
Muller notes that logistics and technology required would include infrastructure
upgrades and retrofitting of current systems to support a wheeling framework, as
well as advanced metering and sensor networks to track water quality and flow.
Like energy markets, a centralised data management system would be needed
to monitor, regulate and facilitate transactions. Importantly, legal and regulatory
frameworks would be required to establish water rights, pricing and responsibilities
in the wheeling context.
“By leveraging existing infrastructure and implementing a common carrier
model, water wheeling could reduce the need for costly new pipelines, minimise
environmental disruption and create economic opportunities. As the pressure
on water resources intensifies, exploring these forward-looking mechanisms
will be essential for fostering sustainable, reliable and equitable access to water
across regions.”
Examples and pilot programmes
Muller concludes by noting projects and models around the world that resemble
water wheeling or could be seen as steps towards it. An example is China’s South-
North Water Transfer Project. This is one of the world’s largest water-diversion
projects, aimed at transferring water from the Yangtze River in southern China
to water-scarce regions in the north, including Beijing and Tianjin. The project
involves three major routes with canals, tunnels and pipes transporting water over
hundreds of miles. It can be viewed as a mega-scale version of water wheeling
across different regions within China.
“By analysing both the successes and challenges of electricity wheeling and
exploring its applications in water distribution, we can offer a fresh perspective on
managing a precious resource in innovative ways,” concludes Muller.
For other examples of transfer and sharing schemes, see overleaf.
ABOUT CRESCO
Cresco is a specialist project-finance-advisory company, which enables growth by
working closely with both project promoters and project funders across Africa. The
Cresco team is made up of highly skilled individuals, with experience in closure and
execution of major capital projects across many industries in Africa. The company
has significant inhouse logistics skills to complement its project development and
financing experience to ensure the best service for the stakeholders.
Challenges
“There are some potential obstacles that will have to be faced and overcome
for water wheeling to be a feasible solution,” says Muller. “Water quality
management is critical to ensure consistent water quality across sources and
during transport, and infrastructure will need to be adapted to a standardised
wheeling framework. Other considerations include the balancing of pricing for
suppliers and end-users and the negotiation of inter-jurisdictional agreements
for shared regional resources.”
Innovative opportunity
“Water wheeling presents an innovative opportunity to address regional water
shortages by optimising resources from areas of surplus and redistributing them to
areas in need. While the concept faces challenges such as infrastructure constraints,
water quality management and regulatory frameworks, it offers promising solutions
for efficient water management,” says Muller.
Helgaard Muller, Director at Cresco.
27

WATER
AROUND THE GLOBE
Examples from different parts of the world give some insight into how water
wheeling could be applied at scale, whether it is in an industrialised nation or a
developing country. These examples show that while water wheeling isn’t widely
adopted in the same structured way as in electricity, the concept of shared water
infrastructure and cross-regional transfers does exist.
California water transfers and exchanges
California has a complex water market where water-rights holders, including
agricultural districts, municipalities and private entities, can trade water. This model
allows water to be transported through the state’s extensive water infrastructure
to regions in need. Through these transfers, water agencies “wheel” or transport
water across existing pipelines and canals managed by state and local agencies.
This helps mitigate shortages, especially during drought periods, by moving water
from surplus to deficit areas. California’s water trading is limited by infrastructure
capacity and regulatory barriers. Pricing, quality and accessibility are issues that
still need addressing.
Murray-Darling Basin Water Market
Australia’s Murray-Darling Basin, see map, represents one of the largest managed
water markets, where water is
traded between different users
(farmers, towns, environmental
groups) across states and regions.
Water is transferred using a
shared river system and canals,
with water rights allocated
based on availability and user
needs. Infrastructure managed
by both state and federal bodies
enables the “wheeling” of water
across state lines. This market
has significantly increased water
use efficiency but has faced criticism over environmental impacts, high costs and
complex regulatory frameworks.
Desalination plant wheeling
Some Gulf countries, like Saudi Arabia and the UAE, produce desalinated water
for distribution across regions. The concept of “wheeling” water here is somewhat
similar, as desalinated water is transferred over vast networks to areas where natural
water sources are insufficient. Large-scale desalination plants (like those in Dubai
or Abu Dhabi) pump water through extensive pipeline systems to supply urban
and industrial areas. These pipelines may cross different jurisdictions and involve
shared management to balance supply and demand.
The energy intensity of desalination, along with infrastructure maintenance and
coordination, requires significant investment and ongoing regional collaboration.
Israel’s National Water Carrier
Israel’s National Water Carrier was designed to wheel water from the Sea of Galilee
in the north to the dry southern regions. This system distributes both natural and
desalinated water across the country, balancing seasonal and regional water needs.
Managed by the Israeli Water Authority, this network includes pipelines, canals
and reservoirs. It allows for wheeling water to places in need while also reducing
reliance on groundwater. The system has successfully increased water access
nationwide and serves as a model for other arid regions. However, maintenance
costs and water-quality preservation require ongoing oversight.
Singapore-Malaysia Water Agreement
Singapore imports much of its water from Malaysia under long-standing
agreements. Water is wheeled across the border through pipelines, supplementing
Singapore’s local reservoirs, desalination and reclaimed water supplies. Pipelines
transport raw water from Malaysia’s Johor River to Singapore, and in return,
Singapore treats and supplies water back to Malaysia under agreed terms.
This agreement has enabled reliable water supply for both regions, although
political tensions occasionally influence the stability of this arrangement.
The Colorado River System
The Colorado River is an essential shared resource for seven US states and Mexico.
Water is allocated according to legal agreements and various “water banking” and
transfer schemes allow states to store or “wheel” water between them, especially in
times of drought. States can transfer stored water or unused allocations to others in
need, with infrastructure like the Central Arizona Project (CAP) and All-American
Canal supporting these movements. A 2012 binational agreement also allows the
US to store water in Mexico’s reservoirs.
Growing demand and dwindling river flow due to climate change have put this
system under strain. Coordination between multiple stakeholders across national
borders is another challenge.
Wheeling involves using a shared network. In the context of electricity, a shared transmission
network does the work. Water would be “wheeled” along canals to areas that need it.
PHOTO: Panoramio on Wikimedia Commons
28

DIGITAL INCLUSION
HOW 5G IS DRIVING INFRASTRUCTURE
INVESTMENT AND DIGITAL INCLUSION IN AFRICA
By Rami Osman, Director for Business Development, MediaTek Middle East and Africa.
TThe advent of 5G is one of the most important technological developments for the
Developing affordable smartphones will be a key factor in rolling out improved connectivity across the African continent.
global economy in the last few years. High-speed mobile connectivity is catalysing
dramatic digital transformations around the world, bringing to life exciting new
applications in the realm of spatial computing, the Internet of Things (IoT) and more.
For Africa, underserved as it is by high-speed fixed-line broadband, 5G is an
especially important opportunity. It promises to allow people and small businesses
throughout the region to become more active participants in the global digital
economy. From entertainment to education and from business to medicine, 5G
could be a game-changer.
By opening wider doors to digital commerce and triggering massive
infrastructure investment, 5G is expected to make a significant contribution to
Africa’s growth and prosperity. According to the GSMA, 5G is forecast to benefit
the Sub-Saharan Africa economy by $11-billion in 2030, accounting for 6%-plus
of the economic impact of mobile.
Paving the way for Africa’s digital future
Already, regulators and operators are laying down the foundation for the 5G economy.
As of September 2023, 27 operators in 16 markets across Africa had launched
commercial 5G services. More markets are expected to follow soon, with operators in
an additional 10 countries making a commitment to launch 5G in the coming years.
Yet as this process of modernising Africa’s mobile networks accelerates, it’s
important that the average subscriber doesn’t get left behind. Regulators and
operators are working closely together to find pathways for investment into 5G
that ensure services can reach mainstream customers.
In addition, chipset manufacturers and handset makers have a critical role to
play in democratising 5G. In Sub-Saharan Africa, where GDP per capita is around
$1 700, handset costs pose a major barrier in bringing affordable, high-speed
mobile connectivity to everyone.
Given the economic constraints faced by many African consumers, lowerpriced
5G smartphones are essential for widespread adoption. Thus, one of the
keys to democratising 5G lies in bringing smartphone costs down, and that, in
turn, relies on chip manufacturers bringing affordable chipsets to market.
5G smartphones under $150
The technology sector has already made some dramatic progress in lowering the
production cost of 5G smartphones, with devices that cost $100-$150 starting to
reach the market. At MediaTek, we are committed to providing affordable hardware
platforms that make 5G accessible.
The MediaTek Dimensity 6020 system on a chip, or SOC, for example, enables
smartphone manufacturers to create devices with multi-gigabit speeds, excellent
cameras, advanced gaming technologies and faster displays for the mass market.
As 5G smartphones become more affordable and penetration increases, mobile
network operators are incentivised to invest in and expand their 5G infrastructure.
This increased infrastructure boosts the availability and coverage of 5G networks,
facilitating a virtuous circle of higher investment and deeper market penetration
across urban and rural areas.
Over time, affordable 5G smartphones can help bridge the digital divide by
providing low-income communities with access to high-speed Internet. This
access enables greater participation in the digital economy, improved educational
and business opportunities and enhanced access to digital services, including
telemedicine and e-government services.
Perhaps as importantly, 5G will enable Africa to leapfrog legacy technologies
into next-generation offerings. This could help a larger portion of the population
to experience the benefits of advanced technologies, such as IoT, augmented reality
and artificial intelligence. This promotes technological literacy and drives overall
societal progress.
29
PHOTO: Wayhomestudio on Freepik

COCA-COLA BEVERAGES AFRICA RECOGNISED AS A
TOP EMPLOYER IN AFRICA
Driven to make an impact, passionate about learning and committed to caring for others.
CCoca-Cola Beverages Africa (CCBA) has been certified as a Top Employer in Africa
for 2025, based on the results of the Top Employers Institute’s HR Best Practices
Survey. CCBA was certified as a Top Employer in Africa and its operations in
Ethiopia, South Africa, Tanzania and Uganda achieved this accolade at country level.
“We have a people-first culture that ensures unparalleled professional
development for our valued employees,” said CCBA Chief People and Culture
Officer Natasa Prodanovic.
committed to caring for others.
“Our aim is to nurture potential, attract and retain high-performing talent, and
invest in growth.
“CCBA’s continued market success and status as the largest bottler of beloved
Coca-Cola brands on the continent are other key differentiators.
“We empower individuals to thrive and our certification as a Top Employer
reflects the strength of our commitment to being an employer of choice for
professionals with a desire to learn and grow.
“Our people are driven to make an impact, are passionate about learning and
“Congratulations to our leaders and colleagues, and thank you for making this
recognition possible,” Prodanovic concluded.
CCBA in Ethiopia, Top Employer Award: left to right, Duncan Kimani, Biruk Adugna, Nigus Alemu, Daryl Wilson, Solomon Tesfaye and Desalegn Mekonnen.

TOP EMPLOYER
ABOUT CCBA
CCBA is the eighth-largest Coca-Cola bottling partner in the world by revenue, and the largest on the continent. It accounts for over 40% of all Coca-Cola
products sold in Africa by volume. With over 18 000 employees in Africa, CCBA services more than 735,000 customers with a host of international and
local brands. The group was formed in July 2016 after the successful combination of the Southern and East Africa bottling operations of the non-alcoholic
ready-to-drink beverages businesses of The Coca-Cola Company, SABMiller plc and Gutsche Family Investments. CCBA shareholders are currently: The
Coca-Cola Company 66.5% and Gutsche Family Investments 33.5%. CCBA operates in 15 countries, including its six key markets of South Africa, Kenya,
Ethiopia, Uganda, Mozambique and Namibia, as well as Tanzania, Botswana, Ghana, Zambia, the islands of Comoros and Mayotte, Eswatini, Lesotho and
Malawi.
Learn more at https://www.ccbagroup.com
CCBA in Uganda, Top Employer Award: left to right; Flavia Kiconco, Eric Muyira Ndiwalana,
Jennifer Tumwebaze, Catherine Gita, Christine Namayanja, Ivan Ssemakula, Eddie Mubiru, Andrew
Mwambu, Enock Kyendo, Phionah Nahabwe, Macklean Kukundakwe and Edith Kiwumulo.
CCBA in Tanzania, Top Employer Award: left to right; Emmanuel
Kyarwenda, Fatma Mnaro, Jonathan Jooste, Scolastika
Augustine, Haji Ali, Hassan Waziri and Salum Nassor.
CCBA South Africa Top Employer Award: left
to right; Lebogang Radeba, Ayana Tsoliwe,
Lizaan van Wyk, Leola Britton, Sindiswa Nkuna,
Nonkululeko Mkhwanazi and Leonard Vilakazi.

BORING BUSINESSES ARE GOOD BUSINESS
A Silver Tsunami is on the way, says Ryan Cohen, co-founder and Chief Relationship Officer, Merchant Capital, and Africa’s
young entrepreneurs have opportunities to take over established businesses. Bakeries and laundries might be “boring”,
but they can attract capital based on their record.
models are uncomplicated, they’re tried and tested. In your neighbourhood, what
do you have? You’ve got a pharmacy, you’ve got a pet store, you’ve got a hardware
store, you’ve got a fuel station — now these businesses aren’t cutting edge but
they’re essential and often they are very successful.”
Boring businesses tend to be in the same place for a long time; they become
a fixture in the community. “For the incumbent it is a real opportunity and for the
guy who is looking for the next opportunity it is slightly more difficult,” notes Ryan.
However, if these boring businesses, which have been providing essential services
for many years start becoming available to a new generation of entrepreneurs as
the Silver Tsunami grows then, “There is a huge opportunity of boring businesses
that are available for young, ambitious people to buy into or to take over and giving
themselves an opportunity to become entrepreneurs.”
Ryan Cohen, co-founder and Chief Relationship Officer, Merchant Capital.
An interesting trend in business ownership that has been identified in the United
States could be relevant to the local markets. And Merchant Capital, which offers
funding to small and medium enterprises, has spotted the trend and is acting on it.
In the course of a Zoom conversation with The Journal of African Business,
Ryan Cohen, co-founder and Chief Relationship Officer, Merchant Capital,
referenced a “Silver Tsunami”, a concept which he says caused the penny to
“properly” drop for him as a provider of business finance. His research uncovered
the fact that millions of US business owners are coming up for retirement:
2.3-million business owners over the age of 60 who are responsible for employing
about 25-million people.
A second trend which Ryan has identified is also relevant here: the importance of
“boring” businesses. By boring, he means businesses that supply the basic products
and services that communities need.
“These guys are actually the backbone to the economy, the businesses that
provide essential goods and services,” he notes. “More often than not their business
Financing factors
Time in business is an important input regarding business finance. These businesses
are often highly profitable and because they have been managed by seasoned
professionals they have stable foundations with established operations, making it
easier to forecast future performance. Cohen mentioned that on average buying an
existing business can cost up to 40% less than starting one. With a trading history,
it is far easier for established businesses to apply for the working capital or funding
they need to grow the business.
Ryan says, “We refer to our value proposition as asset-free, so it is unsecured.
The process is very quick, simple and easy. These business owners are often timepoor
and may not have the ability to put together long complicated documents.
Process approval and funding time happens in less than 48 hours. One of the other
key benefits is that repayment fluctuates in line with businesses’ turnover. That is
the combination of the unique selling propositions of this offering.”
Managing Merchant Capital’s risk profile is based on the company’s
“really strong credit know-how and understanding that relate to SME
businesses”. That experience goes back to 2012 and includes deploying about
R10-billion to close to 50 000 businesses. The funder’s deal size range is
between R250 000 and R5-million.
The grey dividend
The other side of the Silver Tsunami is that grey hair can sometimes be a good
thing in an entrepreneur. Someone who has worked in a bakery for decades
is likely to have a good understanding of what it takes to run a bakery.
Notes Ryan, “I am generalising here, but people who are 40 and up, based on the
experience that they have and the fact that they are bumping their heads less, the
chance for success is certainly greater.”
The old adage about not being able to buy experience applies. Ryan adds,
“You need to have seen a movie in order to make a better decision the next time
32

SME FUNDING
it presents itself. It can be countered in younger business owners when there is
a strong mentorship and let’s call it grey hair or access to grey hair. In some
instances, that’s not available so the propensity for success may be less. But with
older business owners in many respects, they are the grey hair.”
Boring benefits
Given that Merchant Capital’s model is partly based on turnover, it’s easy to
see how the concept of “boring” businesses has traction. Remarks Ryan, “The
key benefit to a boring business is the fact that there’s stability and there is
predictability from a customer perspective and customers translate into revenue.
You have a predictable revenue stream going through the till on a monthly basis.
There is often lower completion in a particular area and that means higher and
more consistent margins.
These businesses are also resilient. A practical example of being stress tested was
during Covid. A lot of these boring businesses were deemed essential and were able
to navigate and trade through this period, and they are well enough positioned to
take advantage of opportunities when times are good.”
And it is these businesses which are coming up for renewal, and not only in the
US. Ryan states, “In South Africa there are about six-million people who are over
the age of 60. A percentage of those people are business owners and a percentage of
the children of those business owners will want to pursue other careers. But what
if in that community there is a young industrious person who says to themselves,
I could add operational efficiency through tech and upgrading of customer service
to it and eek out higher margins and a better return. All of a sudden it becomes an
interesting opportunity for older business owners to sell out, get the cash that they
need, and you’ve got new young blood in the business.”
The younger owners bring the “ingenuity that comes with youth and energy”,
together with ambition. Ryan relishes the story of the owners of a small tuckshop
in Mamelodi who approached Merchant Capital for a small loan about ten years
ago. As Ryan reports, “The last advance we gave him was about R750 000 and he
runs a liquor store, a bar and a restaurant. Now he is building accommodation!”
Stories like that inspire Ryan. As he says, “This ingenuity is such a powerful thing
but if you don’t have the working capital and the know-how as to where to get it, you
are left sitting with this genius that is just nascent and stuck. Being able to unlock
that is why I get out of bed.”
The bigger picture includes the role of SMEs in the broader economy,
“the lifeblood of the economy”, as Ryan describes it. He states, “If we are to have
a successful and active SME layer to the country, the economy can thrive, new
businesses will open, more people will be employed, and we need that badly.
We wake up every day to serve the entrepreneur and anything that we can do
at Merchant Capital to help this sector for the greater good of themselves,
potential staff and the economy that’s what we want to do.”
Scaling up a butchery to become a Shisanyama, a venue for barbecuing meat, or creating a
fully-fledged restaurant are options for new owners taking on an established business.
Providing what communities need is a good basis for a solid business.
PHOTO: SA Tourism/Flickr | PHOTO: 5M2T
33

Relevant skills-based training is the best solution to unemployment.
TAKING ACTION THROUGH LEARNERSHIPS
Addressing youth unemployment and boosting business B-BBEE rankings.
By Daniel Orelowitz, Managing Director at Training Force.
South Africa’s youth unemployment rate is staggeringly high, with 66.5% of
all unemployed people currently between the ages of 15 and 24. This figure
increases annually as more than 500 000 matriculants enter the workforce
and tertiary institutions only to be met with a lack of real opportunities.
This ultimately leads to discouraged job seekers who become disengaged.
In comparison to other developing nations, South Africa’s economy is vibrant
and advanced. There is the potential to create opportunities for all who live in
South Africa and with this in mind, the government has begun offering incentives
to businesses that facilitate learnership programmes. This is a significant
opportunity for companies to upskill the unemployed and the employed, as well
as their staff, and by simply funding training, companies can gain the means to
improve their Broad-Based Black Economic Empowerment (B-BBEE) ranking.
By joining forces with the right training partner, organisations can ensure that
the full benefits are realised by both the company and the learners that participate
in the programmes.
Overcoming obstacles through hands-on training
What is the biggest obstacle for school leavers as they become job seekers?
The fact that it’s almost impossible to get a job without experience, and it’s
impossible to gain experience without a job. Learnerships are a unique solution
to this age-old impasse because they bring together invaluable workplace
experience and industry-relevant training in a manner that produces a versatile
individual with the required knowledge and a level of practical experience to
find and fill a position within that specific sector. A learnership is a structured
work-based programme that runs over 12-24 months during which the learner
is exposed to theoretical and practical on-the-job training that relates to a
PHOTO: ThisisEngineering on Unsplash
34

SKILLS
specific occupation, whether it’s engineering, financial services or business
process outsourcing.
Leveraging learnerships
As such, learnerships are the pathway to a registered qualification on the National
Qualifications Framework (NQF) that is managed by the relevant Sector Education
and Training Authorities (SETAs). The benefit for the sponsor (or funding
company) is that learnerships contribute towards the company’s employmentequity
objectives, in addition to enhancing skills development internally. The
government also offers tax incentives and cash grants in addition to B-BBEE rating
incentives to companies for participating in learnerships.
What does this mean for companies looking to run learnership programmes, or
looking to optimise or expand existing learnership programmes? Does it mean they
have to build the capacity to run and manage these learnerships in-house, at great
effort and even greater expense? No. Although companies cannot run learnerships
unless they have the right training accreditations, they do not have to reinvent the
wheel to benefit when it comes to learnerships.
Company benefits
Given that learnerships are developed to be industry-specific, participants gain skill
sets that are closely aligned with the requirements of businesses operating within
those sectors. This develops candidates that have a good grasp of all the required
work processes. Participants in learnership programmes gain knowledge and skills
that are immediately applied in the workplace and lead to higher output standards
and improved productivity, which is an immediate tangible benefit.
Financial sense
Not only does the company benefit from enhanced quality of work, but
there are significant tax allowances along with the enhanced achievement of
employment-equity objectives. These incentives are even higher for companies
that provide ongoing employment (absorption) once the learnerships are
completed. Learnerships are awarded points on the B-BBEE Scorecard under both
Employment Equity and Skills Development and there is a SARS tax allowance
if the learnership is a registered learnership with the Department of Labour
and relevant SETA. Such an allowance is calculated on a case-by-case basis. For
example, a disabled learnership could translate into a R120 000 tax allowance and
an abled-person learnership could translate into an R80 000 tax allowance over 12
months. Furthermore, skills levy contributions made this way can truly work for
the benefit of the company, its people and the communities they touch.
Education and Training (TVET) colleges might be inaccessible due to tuition costs
and the like. Most learnerships provide an allowance/stipend for the duration of the
programme, which assists significantly with costs such as transport and meals. The
fixed-term employment contract for the duration of the learnership often results in
permanent employment upon completion if the learner has performed well, which
is the ultimate solution to addressing youth unemployment.
Smart facilitation
The right training partner will have all the necessary accreditations to run
learnerships from end to end, providing the means and mechanism for managing
programme processes: everything from vetting the candidates to facilitating the
stipend and ensuring maximum tax benefit to the company, while lessening the
overall administrative burden of learnerships. Partnering with a training provider
that specialises in youth development is a clear-cut way to ensure that the full
benefits of learnerships are achieved, both for the company and the individuals
intended to benefit from such programmes.
ABOUT TRAINING FORCE
Training Force is a registered training provider focused on delivering industry
and job-specific skills assessments and training interventions to businesses and
their employees across a variety of industries. Since our establishment in 2003, we
have provided over 3 000 companies with training interventions and upskilled over
55 000 workers through our branches across South Africa. By delivering practical
training solutions, we help businesses secure a more productive workforce.
All our learnerships are aligned with SAQA (South African Qualifications
Authority), the National Qualifications Framework (NQF) and accredited with
SETA Quality Assurance departments.
Individual benefits
For participants in learnership programmes, their job prospects are greatly
enhanced by having practical experience along with theoretical knowledge.
Occupation-specific training that is backed by a nationally recognised qualification
provides job seekers with a boost of confidence, as well as a way to achieve a formal
qualification where tertiary education at university or Technical and Vocational
Daniel Orelowitz, Training Force Managing Director.
35

PACCI
THE PAN AFRICAN CHAMBER OF
COMMERCE AND INDUSTRY
Ushering in a new era of intra-continental trade.
The Pan African Chamber of Commerce and Industry (PACCI) is the continent’s
foremost chamber body. Driven by the goal to promote Africa’s economic integration
through sustainable growth, PACCI strives to foster an environment where commerce
and sustainability coexist harmoniously.
Established in 2009, PACCI serves as an independent, non-profit organisation
dedicated to advocating for public policies that promote continental economic
integration, competitiveness and sustainable growth. As the largest and most
influential business association in Africa, PACCI operates through more than 50
national chambers of commerce, leveraging their collective strength to foster a
prosperous business environment across the continent.
Our vision is clear: to be the recognised voice of African businesses and a
valuable resource to our members. We are committed to transforming Africa into a
vibrant hub for commerce, manufacturing and service industries, characterised by:
Economic empowerment: We are committed to promoting the well-being of
African businesses, enhancing intra-African trade and improving the productive
capacity of enterprises across the continent.
Sustainability and innovation: We advocate for a green transition and climatechange
readiness, ensuring businesses are sustainable and prepared for the future.
Our initiatives support gender-responsive policies and the integration of youth,
which are crucial for holistic economic growth.
Technology and accessibility: Through our Chamber Africa Connect initiative,
we are digitising and diversifying services to make business operations more
efficient and accessible, preparing our members for the digital age.
Inclusive growth: We ensure that the benefits of trade liberalisation contribute
not only to economic growth but also to environmental protection and the creation
of sustainable employment opportunities.
Headquartered in Addis Ababa, Ethiopia, with service desks in Ghana, Kenya
and Dubai, PACCI serves as a pivotal force in driving these changes, fostering an
environment where commerce and sustainability coexist harmoniously.
As we move forward, our mission remains steadfast: to empower African
businesses to thrive and expand, paving the way for a prosperous and inclusive
economic future.
Collaboration, partnership and collective ingenuity
The Pan African Chamber of Commerce and Industry seeks to work with business
chambers and other stakeholders in navigating the African business landscape by
working together and seeking new ways.
In the pursuit of our overarching goal to foster a united and thriving African
business landscape, PACCI’s canvas for collaboration serves as the foundational
bridge that connects our diverse stakeholder: businesses, chambers, policymakers,
development partners and civil society.
Focus 2024-2026
• Boosting intra-Africa trade
• Improving productive capacity and business competitiveness
• Support business to be more resilient to climate impacts
• Gender-responsive entrepreneurial environment
• Chamber Africa Connect which aims to deliver real-time connectivity to
every chamber of commerce in Africa where business, consultants and media
professionals can engage with each other and undertake digital trade to boost
intra-African trade.
Contact Details
Gulf Aziz Building 4th Floor 402, Bole, Addis Ababa, Ethiopia
Tel: +251 11 691 0011 | Email: info@pacci.org | Website: www.pacci.org | Social media: @officialpacci
PHOTO: OqJbvo on Unsplash

PACCI STRAP
NEWS
COLLABORATION,
PARTNERSHIP AND
COLLECTIVE INGENUITY
The Pan African Chamber of Commerce and Industry
(PACCI) seeks to work with business chambers and
other stakeholders in navigating the African business
landscape by working together and seeking new ways.
In the pursuit of our overarching goal to foster a united and thriving
African business landscape, PACCI’s canvas for collaboration serves as
the foundational bridge that connects our diverse stakeholder: businesses,
chambers, policymakers, development partners and civil society.
Focus 2024-2026
1. Boosting intra-Africa trade
2. Improving productive capacity and business competitiveness
3. Support business to be more resilient to climate impacts
4. Gender-responsive entrepreneurial environment
5. Chamber Africa Connect
The project Chamber Africa Connect aims to deliver real-time
connectivity to every chamber of commerce in Africa where business,
consultants and media professionals can engage with each other and
undertake digital trade to boost intra-Africa trade.
The goals of Chamber Africa Connect are:
• Develop a roadmap for chambers to efficiently integrate the CMI
framework into chambers’ strategy, setting the process to align
efforts, create interoperable digital standards and champion digital
transformation within industry.
• Promote cooperation between the chambers by developing
information-sharing tools that will help SMEs better understand
and benefit from the AfCFTA and increase intra-African trade and
investment opportunities.
• Promote cooperation between the chambers by supporting the use
of digital technology in all areas of business, fundamentally changing
how chambers operate and deliver value to their members.
• Strengthen women business owners’ skills across the spectrum, from
basic digital literacy to more advanced use needed to leverage digital
technologies to create new business models and enterprises
Recent PACCI initiatives
Certification Course on AfCFTA Implementation Capacity launched in 2024
Are you dedicated to enhancing cross-border and intra-African trade? Join us for the
Certification Course on AfCFTA Implementation Capacity, a pivotal part of the “Improving
the Trade Facilitation Environment (ITFE) in Eastern Africa” project. This collaborative
effort is brought to you by the Pan African Chamber of Commerce and Industry (PACCI),
the Intergovernmental Agency on Development (IGAD) and the African Development
Bank (AfDB) East Africa Regional Hub (RDGE) and is facilitated by the University of
Nairobi Department of Educational and Distance Studies. This course is designed to
strengthen technical capacity and deepen understanding of the AfCFTA. Launching in
early June 2024, you can find more details at www.pacci.org. Join a community of business
support professionals, leaders and trade enthusiasts committed to making a significant
impact on Africa’s trade landscape.
PACCI launches Educational Webinar Series to bolster AfCFTA awareness
PACCI has launched a compelling webinar series to guide businesses through the
opportunities presented by the AfCFTA. The first session, hosted by Renew Capital and
titled “Free Trade in Africa: What It Means For You”, took place on 8 May 2024, via Zoom.
It attracted business leaders eager to leverage AfCFTA for growth, offering insights into
trade liberalisation, market entry strategies and the practical tools necessary for navigating
new markets. This session emphasised the strategic benefits of regional trade and provided
participants with the chance to apply for customised support, funded by the Government
of Canada, to aid their expansion plans. For those who missed the live event, the webinar is
available on-demand, ensuring ongoing access to these valuable insights. Business leaders
interested in exploiting the full benefits
of AfCFTA should consider viewing this
session. For more details and to access the
webinar, visit Renew Capital’s and PACCI’s
official websites. More webinars are lined up
from ahead of Prosperity Africa Chambers
Business Expo. Visit www.pacci.org for
more information.
Contact Details
Gulf Aziz Building 4th Floor 402, Bole, Addis Ababa, Ethiopia
Tel: +251 11 691 0011 | Email: info@pacci.org
Website: www.pacci.org | Social media: @officialpacci
PHOTO: Moses Londo on Pexels
37
President: PACCI
Mr Ali Adji Mahamat Seid

AFRICA CAN LEVERAGE THE GLOBAL SHIFT TO AN
ELECTRIC ECONOMY
Mining companies may need to pivot or scale down to withstand the current strains and
maintain their operations, argues Igor Hulak, a Partner at Kearney, but there are also huge
opportunities to leverage the continent’s wealth of base and precious metals.
The ongoing Ukraine war and ensuing sanctions imposed on Russia (the most
extensive in world history) have resulted in spasms in the oil and natural gas
markets, driving well-documented disruptions to energy supplies, as well as
agricultural resources.
However, the shortages in supplies of crucial basic and precious metals, which
are just as concerning to Africa’s business leaders as those in energy and agriculture,
have garnered far less coverage and attention.
“The sanctions against Russia – one of the world’s biggest exporters of raw
materials – is causing knock-on effects that are rippling throughout many spheres
of business, from the sustainability of Africa’s mining operations to the stable
functioning of the manufacturing base,” explains Igor Hulak, a Partner at Kearney,
a leading global management consulting firm.
The suspension of foreign shipping operations has triggered a worldwide
shipping container shortage. With existing infrastructure insufficient for handling
the redirection to and through Asia of raw materials in their full volumes, industries
are looking for solutions.
In addition, alternatives that make use of ageing infrastructure are unsuitable as
they pose massive environmental risks, as evinced by the catastrophic 2020 diesel
spill at Norilsk Nickel, Russia’s worst-ever Arctic environmental disaster. China
may have been able to fill the supply gaps, but ongoing Covid-related shutdowns
and supply-chain interruptions have made that difficult.
These sanctions and shutdowns will continue to affect Africa’s consumers as well,
having manifested in increased prices for food and fuel.
Since early 2022, the five base metals that Russia produces on a vast scale –
nickel, aluminium, copper, iron and zinc – have experienced sharp price increases
and continued supply disruptions are likely to see prices rise further still.
“Nickel, which is a critical ingredient in lithium-ion batteries and essential
for the global energy transition, is in short supply. Russian companies such as
Geopolitical shifts and the rising demand for metals essential to the energy transition were important subjects of debate at the Critical Minerals Africa 2024 Summit.
PHOTO: Critical Minerals Africa Summit
38

MINING
Offhore wind plants need huge amounts of copper, making facilities such as Ivanhoe’s Komoa-Kakula copper mine in the Democratic Republic of the Congo critical to the modern economy.
Norilsk Nickel, the world’s largest nickel producer, had historically supplied
global markets.However, the sanctions have made Russia, which accounts for
roughly 10% of the global share of nickel, unable to meet this global demand,”
Hulak notes.
Nickel opportunity
“This deficit in global supply presents an opportunity for African nickel producers,
such as Zimbabwe and Botswana, to step in and fill the gap. However, overcoming
existing inadequate export infrastructure will be a major challenge, requiring
government buy-in and a collaborative multi-sector approach. Though the
challenges are formidable, Africa must find a way to seize this opportunity and
emerge as a key player in the new global metals market,” Hulak asserts.
Hulak says that prices of other base metals for which the world is less reliant
such as iron and zinc (of which Russia produces 4% and 2% of the global share,
respectively), are likely to stabilise.
Precious metal prices have, by contrast, shown less volatility. However, as these
too are crucial to the electric economy, experts warn that price increases are still
on the cards.
The most significant increases are expected in the platinum group. Russia
accounts for almost 40% of the world’s supply of palladium and 11% of platinum,
which is essential for hydrogen-based energy technologies (as well as alloys,
circuitry and ceramic capacitors).
According to Hulak, market and pricing drivers are currently indicating longterm
price increases for platinum group metals (PGMs). This presents a golden
opportunity for South Africa, still the world’s largest producer of these metals, to
step in and fill the supply gaps. Moreover, this is a unique opportunity for South
Africa to leverage its already strong position and expand its operations in the
sector to meet the escalating global demand.
Hulak goes on to add that PGMs are typically associated with rare earth metals
such as rhodium, iridium and palladium. With Russia unable to supply such metals,
PHOTO: Ivanhoe
and with potential higher demand for these metals from increased military activity,
it creates a market gap that African countries can fill.
Gold powerhouses
Traditionally a reliable safe-haven investment, gold (of which Russia is a major
producer) is likely to see moderate price increases. This could work in favour of
Africa’s gold production powerhouses like Ghana and South Africa.
The silver price is, however, expected to stabilise, mainly because of the lack of
direct sanctions and Russia’s minor share of global production (6%).
At this pivotal moment, with the energy transition enjoying popular public
backing, the major concern now is whether the market can find enough of the
critical raw materials needed to support it. Apart from exacerbating the disruptions
driven by the Covid pandemic, these supply shocks are compounding the price
pressures associated with this global shift and the resources this requires.
Offshore wind plants, for example, need more than seven times the amount of
copper compared to equivalent gas-fired plants and EVs use more than six times
more minerals than internal combustion-powered vehicles.
Supply disruptions will likely continue to affect global markets. As a result, some
African companies may need to pivot or scale down to withstand the current strains
and maintain their operations.
However, Africa’s wealth of natural resources, including many of the basic and
precious metals currently in short supply, could allow the continent to leverage the
opportunities presented by the shift towards an electric economy. By leveraging
these resources effectively, Africa has the potential to drive additional economic
growth, develop industries along the value chain and create jobs.
Overall, however, the balance in global supply will not change significantly. As a
result, prices for many base metals are expected to revert to the global consensusforecast
levels. Still, for some commodities like nickel and precious metals, price
increases look like they’re here to stay.
Distributed by APO Group on behalf of Kearney.
39

COUNTRY PROFILE
REPUBLIC OF MADAGASCAR
Mining and ecotourism are promising economic sectors.
Capital: Antananarivo.
Other towns/cities: Toamasina, Antsirabe, Mahajanga.
Population: 28.8-million.
GDP: $16-billion.
GDP per capita: $528.
Currency: Ariary.
Regional Economic Community: African Union (AU), Southern African
Development Community (SADC), Organisation Internationale de la
Francophonie.
Landmass: Area: 587 041km².
Coastline: 6 000km.
Resources: Ilmenite (titanium ore), bauxite, graphite, copper, cobalt, chromite,
coal, rare-earth elements, salt, quartz, tar sands, semi-precious stones (sapphires),
mica, hydropower. Vanilla, cloves, ylang-ylang, coffee, lychees, fish, shrimp.
Main economic sectors: Agriculture, mining.
Other sectors: Fishing, forestry.
New sectors for investment: Mining (ilmenite, zircon, nickel), oil, gas, ecotourism.
Key projects: A five-year World Bank project aims to improve job opportunities
through transformative action, make growth more inclusive by addressing
weaknesses and inequities in public service delivery and create resilience to
shocks that can reverse improvements in growth or worsen socioeconomic
inequalities. Support for ecotourism and agriculture, paired with greater
investments in education, health and private enterprise, are key elements of the
strategy. The Antananarivo-Toamasina toll highway will connect the capital to
the largest seaport.
Chief exports: Vanilla, cloves, nickel, garments, cobalt.
Top export destinations: US, France, China, Japan, Germany.
Top import sources: China, India, France, Oman, South Africa.
Main imports: Refined petroleum, rice, fabric, palm oil, cotton fabric.
Infrastructure: Most roads are unpaved with paved roads totalling 7 617km in
2010. Railways 854km, navigable waterways 432km. Main port at Toamasina and
other ports at Antsiranana in the north and Taolagnaro in the south. The port of
Ehoala will revert to the state once Rio Tinto has completed its mining project.
Ivato International Airport is the main hub for Madagascar Airlines and is located
near the capital.
ICT Development Index: 26.4 (2023) ITU.
Mobile subscriptions per 100 inhabitants: 70 (2022) World Bank.
Internet percentage of population: 21 (2022) World Bank.
Climate: Three distinct regions have different characteristics: tropical along the
coast, temperate inland and arid in the south. The country is subject to tropical
cyclones. Because of its isolation, Madagascar is home to many unique species
of wildlife. There are a number of smaller islands other than the main landmass,
including Iles aux Nattes to the south, pictured.
Religion: Mostly Christian, including Catholic (34%), also traditional faiths and
small Muslim following.
Modern history: Madagascar was one of the last places to be settled by
humans. Arab traders used it as a hub before French and Portuguese trading
posts were established. With British missionaries present on the island, Queen
Ranavalona I responded by banning Christianity and banishing foreigners.
France invaded in 1883 and gained northern parts of the island. In 1895
French forces compelled Queen Ranavalona III to surrender and the royal
family went into exile. During World War II, Madagascar was ruled by Vichy
France, sympathetic to Germany. As a result, the UK captured the island to
deny its use by Japanese ships. The 1947-49 Malagasy Uprising was violently
suppressed by the French, who had resumed control. Independence was
achieved in 1960. A military council took over in 1972 and from 1975, Didier
Ratsiraka ruled as president of the Supreme Revolutionary Council. In 1992,
a democratic constitution was introduced. A coup in 2009 was followed by
an election that ended with the legislature and the executive at loggerheads.
Andry Rajoelina won the 2018 presidential election and started his third term
in 2023, having won a disputed election that was boycotted by most political
parties. Malagasy and French are the official languages.
40
PHOTO: iAko Randrianarivelo on Unsplash | MAP: Wikipedia

COUNTRY PROFILE
REPUBLIC OF MOZAMBIQUE
Large offshore gas fields could transform the economy.
Capital: Maputo.
Other towns/cities: Matolo, Nampula, Beira.
Population: 34.7-million.
GDP: $20.6-billion.
GDP per capita: $608.
Currency: Metical.
Regional Economic Community: Commonwealth of Nations, Organisation
of Islamic Cooperation, Community of Portuguese Language Countries,
Non-Aligned Movement, Southern African Development Community, and
is an observer at La Francophonie.
Landmass: 801 537km².
Coastline: 2 700km.
Resources: Coal, titanium, natural gas, hydropower, tantalum, graphite.
Main economic sectors: Fishing, agriculture (72% of employment), food and
beverages, aluminium, oil and gas, chemical manufacturing.
Other sectors: Tourism, services.
New sectors for investment: liquefied natural gas (LNG) production at the Coral
South offshore facility, which has led to investment in sophisticated equipment,
pictured. Vast offshore reserves of natural gas found in the Rovuma Basin off the
northern coast. More than 1 000 mostly small state-owned enterprises have been
privatised and there are plans to privatise more.
Key projects: The Mozambique Country Climate and Development Report of
the World Bank emphasises the importance of mainstreaming climate action
into Mozambique’s planning, given the country’s vulnerability to the effects of
climate change.
Chief exports: Coal, aluminium, coke, natural gas, gold.
Top export destinations: India, South Africa, South Korea, Italy, China.
Top import sources: South Africa, South Korea, China, India, Democratic
Republic of the Congo.
Main imports: Ships, refined petroleum, iron alloys, chromium ore, refined copper.
Infrastructure: Most of the 30 000km road network is unpaved and driving is
on the left, in line with the former British colonies (and fellow members of the
Commonwealth) that surround the country. Maputo International Airport receives
flights from 10 airlines and is the hub for national Mozambican airline, LAM
Mozambique. There are a further 21 paved airports and more than 100 airstrips.
There are 3 750km of navigable inland waterways. The three deapsea ports have
rail links to inland and neighbouring countries. The Port of Maputo has links with
South Africa and Zimbabwe while the ports of Beira and Ncala connect to Malawi,
Zimbabwe and Zambia.
Mobile subscriptions per 100 inhabitants: 42 (2022) World Bank.
Internet percentage of population: 21 (2022) World Bank.
ICT Development Index: 25.8 2023 (ITU).
Climate: Tropical and subtropical. October to March is the wet season with heavy
rain along the coast and less rain in the interior. Cyclones are also common in the
wet season and several have caused great damage in recent years.
Religion: Roman Catholic and Muslim have the two largest groups of adherents
with Zionist Christians and Evangelical/Pentecostal both accounting for a further
15% each.
Modern history: The defining feature of modern Mozambican history is the legacy
of the 16-year civil war that ended in 1992. Having achieved independence from
Portugal in 1975 two groups, Frelimo and Renamo, engaged in fierce fighting.
Frelimo won elections held in 1994 but violence flared up again in 2013. Peace was
brokered in 2019 but by then an Islamist insurgency had flared up in the northern
province of Cabo Delgado which has put investment by international oil and gas
companies at risk. A presidential election, held in October 2024, was hotly disputed
after Frelimo’s candidate, Daniel Chapo, claimed a strong victory. Supporters of
Venâncio Mondlane, the candidate who was reported to have received 20% of the
vote, did not accept the result and months of protest resulted. Mondlane returned
to the country after a brief exile to further protests and strong police reaction. It is
hoped the some form of mediation can occur in 2025.
PHOTO: Eni | MAP: Wikipedia
41

FiCS 2025: Transforming
Global Infrastructure for
a Sustainable Future
The Finance in Common Summit 2025 (FiCS 2025) is set to redefine the global approach to
sustainable infrastructure development.
Co-hosted by the Development Bank of Southern Africa (DBSA) and the Asian Infrastructure Investment
Bank (AIIB), in collaboration with the Agence Française de Développement (AFD), this landmark event
brings together public development banks (PDBs), policymakers, private sector leaders, and civil society.
Together, these stakeholders aim to harness infrastructure development as a force for economic
resilience, climate action, and global equity.
At its core, FiCS 2025 is more than a dialogue, it is a call to action. The Summit seeks to unite public
and private stakeholders to address the staggering $94 trillion global infrastructure investment gap
projected by 2040. By focusing on innovative financing models, climate-resilient development, and
equitable growth, FiCS 2025 aspires to deliver concrete outcomes that ensure no one is left behind.
Reimagining Public Development Banks
FiCS 2025 champions a transformative role for public
development banks, recognising them as pivotal catalysts
for sustainable development. These institutions are uniquely
positioned to de-risk investments, mobilise private capital, and
drive transformative projects where they are needed most.
The DBSA, a cornerstone of Africa’s infrastructure
development, exemplifies this role by addressing critical
gaps that hinder the continent’s economic and social
progress. From championing energy transitions to financing
cross-border transport networks, the DBSA ensures that
African priorities, including the Just Energy Transition and
regional integration, take centre stage at FiCS 2025.
The AIIB’s expertise in financing sustainable, technologydriven
projects highlights the interconnectedness of
global economies. Its commitment to green finance and
technological innovation aligns seamlessly with the summit’s
vision of building a climate-resilient future. Similarly, the
AFD’s decades of experience in equitable development and
its extensive footprint in Africa underscore its vital role in
fostering resilience, reducing inequalities, and promoting
inclusive growth.
Actionable Solutions for a
Sustainable Future
FiCS 2025 prioritises actionable solutions
over discussions, focusing on financing the next
generation of infrastructure projects that are both
sustainable and inclusive. By leveraging the combined
strengths of the DBSA, AIIB, and AFD, the Summit will unveil
pathways to unlock private capital and drive investments in climate-resilient and
equitable infrastructure.
Infrastructure is the backbone of climate resilience, and FiCS 2025 will spotlight the
critical role of green finance and climate-focused investments in achieving global
climate targets while ensuring development remains people-centred. This emphasis
is particularly relevant for Africa, where energy access, digital transformation, and
regional trade integration hold transformative potential.
Africa’s Role in the Global Development Story
Africa’s vast resources and growth potential make it central to the global
development narrative. With the DBSA at the helm, FiCS 2025 ensures that the
continent’s infrastructure priorities receive the global attention and investment they
merit. By highlighting initiatives such as energy access, digital transformation, and
regional trade, the summit positions Africa as a key player in shaping
a sustainable global future.
A Platform for Partnerships
FiCS 2025 is a platform for building partnerships that transcend borders and sectors.
By bringing together diverse stakeholders, the Summit fosters collaboration and
creates synergies to drive long-term, meaningful change. The collective expertise
and commitment of its hosts and partners provide a blueprint for addressing shared
challenges with bold, innovative strategies.
Building a Better World
This Summit is not just a gathering; it is a movement. It reflects what is possible when
institutions like the DBSA, AIIB, and AFD combine their strengths to address global
challenges. In an era marked by inequality, climate emergencies, and economic
uncertainties, FiCS 2025 offers a vision for resilient, inclusive, and sustainable
infrastructure development.
As the world turns its attention to this pivotal event, FiCS 2025 promises to deliver bold
strategies and tangible solutions that will shape the future of global infrastructure. This
is not merely about constructing projects, it is about building a better, more prosperous
world for all.