Category Archives: ADB

Coal Energy in Kenya

 

 

 

This week, there was a debate on the future of coal in Kenya and its place in the energy mix for the country. It took place at the Strathmore (University) Extractives Industry Centre (SEIC) Nairobi, and was co-hosted by WWF Kenya). The government plans to put up a coal plant on maInland Lamu and a private developer Amu Power was selected to build it, and is seeking approval from the energy regulatory commission to commence construction.

Excerpts:

Coal around the world

  • There are 3 new coal plants in Africa, and Japan & Korea will build 60 new ones to replace their old coal & nuclear ones.
  • There are now more global jobs in solar than coal, and solar has gone from 1 GW production in 2003 to 70 GW this year.
  • Trump got votes from Appalachian coal states where jobs were lost. But coal shares are down as gas has replaced coal.
  • With or without Kenya, the world is going green – Ethiopia aims to get to 100% renewable., Germany gets 20% renewable (all in the last 8 years), US has gone from 2 to 7% renewable (in 10 years), South Africa gets 2 GW from solar, and Rwanda’s 8.5MW solar is the largest in the region.

Lamu

  • No projects happen at Lamu because NGOs on the beach want it to stay marginalized and oppose port, coal, roads etc.
  • Lamu has high unemployment leaving youth exposed to Al-shabab & drugs. This project will have 1,800 jobs for locals.
  • It is not the job of private company to create jobs or improve security in Lamu – that is the government’s role
  • “Save Lamu”  groups oppose the plant because all its side-effects have not been quantified,  and it will destroy far more (fishing) jobs than it creates.

Other Sources and Energy Mix

  • Amu Power’s 1050 MW will add 50% to Kenya’s 2,200 MW electricity from the coal plant that is 20 kilometers from Lamu town.
  • A country’s rate of development depends on availability of cheaper and reliable energy supply. Developed countries get 60% from coal/nuclear and just 3% from renewables on average.
  • Solar is okay for isolated homes, but it will not recover the cost of national power generation and distribution.
  • Geothermal costs $4-5 million per well per well & each one generates 5MW – so how many can Kenya get? It’s very expensive for government & IPP’s who often sink many dry wells
  • Geothermal depends on nature to generate the steam and you can’t tweak the inputs, unlike with coal & nuclear where you can vary the inputs to match demand.
  • Industries need coal. Moyale which gets electricity from Ethiopia hydro only has supply three days a week
  • Even today people on the grid will not turn on electric cookers – the main energy sources in Kenya are charcoal and wood, and the are larger pollutants than coal.
  • Kenya imports all glass because we don’t have the energy to make glass.
  • Coal is Kshs 7.5 per unit compared to kshs 20 from diesel-fired plants.

Environment

  • The US has lake signs that “if you fish here, don’t eat the fish” – Kenya will likewise have to monitor coal pollution risks
  • Kenya emissions (excluding extractives) will be 150 MT of carbon by 2030 and the government has committed to reduce this by 30%. How?
  • How will the plant dispose of the ash, carbon dioxide and acid rain? Lamu does not have infrastructure
  • An EIA (environmental impact assessment) audit process in Kenya is a compromised one. They are done by auditors hired by investors and will never oppose projects.
  • Amu Power will use three new clean coal technologies at the plant.
  • The government must check that industry and investors comply with environmental standards – there was a toxic battery factory in Mombasa. County and national governments need to do their own monitoring.
  • Energy projects are financed by lenders have strict conditions.e .g IFC/World Bank finance  many thermal plants, and they can’t allow plants that compromise commitment. The Amu power one is guaranteed by the African Development Bank.

TEF Forum 2016 Part II

Tony Elumelu, a Nigerian businessman is considered one of the most influential business people in Africa. He’s been an advocate for seed financing and angel investing for entrepreneurship across the continent, something that he’s dubbed “Africapitalism” and advances this through the Tony Elumelu Foundation entrepreneurship program that has seven pillars including mentorship, online resources, the annual forum, seed capital funding, and an alumni network.

Dr. Awele Elumelu and Tony ElumeluAt a Q&A session during the 2016 forum in Lagos, Elumelu spoke of his desire to expand the awareness of the program which currently has applicants skewed in Anglophone African countries (Nigeria had almost 1/3 of the applicants, followed by Kenya, Uganda, and Ghana). He said he’d been asked in France if this meant anglophone countries were more entrepreneurial but he said they were more aware of the program, and that he wanted to see more Francophone and North African participation in the program

He also spoke of his desire to grow the program even larger through partnerships with other organizations, one of which is the African Development Bank to match, and therefore double,  the number of fellows that the program is supporting.

Parminder Vir, the CEO of the Foundation also said that the 6-year-old organization would be  rebranding several aspects of the two-year fellowship program and that all initiatives will be realigned under the Tony Elumelu Foundation (TEF). So there will be the TEF  entrepreneurship capital management , TEF entrepreneurship hub, and TEF research & advocacy etc.

 TEF Forum at the Nigeria Law SchoolVir said they had also built a platform to link partners and the diaspora with the entrepreneurs and which can be vital to the program (e.g. Nigeria get $62 billion from the USA in remittance). She asked entrepreneurs to engage on the unique social network (not facebook or snapchat) as the platform is unique for investors thought leaders, partners, funders –  VCs, PEs, Angels who want to come to Africa and now would now have access to 65,000 entrepreneurs in the  54 countries who were  pipeline of bankable investments, and 2,000 have who had already received advanced entrepreneurship training.

Already the entrepreneurs who are diverse sectors, use the platform to share their stories, engage each other, network, market to each other, pose and get solutions to problems they face. This platform also forms valuable data for research and trends and they will be producing more research reports to market to the diaspora and potential partners.

The largest sector of those supported in the 2006 cohort are in agriculture (27%) followed by fashion/clothing and ICT, and about 1/3 are women. Vir said they were committed to supporting 20-40% of agri-entrepreneurs every year and this was echoed by other participants including former Nigerian president Olusegun Obasanjo.

The next class admission class to the Tony Elumelu entrepreneurship program will start in  January 2017.

Idea Exchange: Agri, Bellagio, GSMA, Stanford

New, and ongoing, opportunities to apply for, including..

EDIT Chivas Regal announced  the first Kenyan edition of Chivas, The Venture, a  $1 million global search to find and support the next generation of social enterprise start-ups. 32 countries across 6 continents are taking part and only the most promising from each country will be selected as a global finalist. It is open to any for-profit-start-up that creates both financial value and a positive impact on the lives of others. Deadline for Kenyan social entrepreneurs to make submission is 30th November 2016. Kenya’s very own WEFARM, a farming information platform came 2nd at last year’s finals, securing $200,000 for their social enterprise.

EDIT Bloomberg Media Initiative Africa Executive Training Program: Intake 4 is now open. This prestigious program has been developed for mid-career journalists, financial professionals with an interest in financial journalism; government professionals responsible for public policy, communications and finance portfolios; and development practitioners and civil society professionals with an interest in African development and financial and economic data. The program value is $22, 000 USD, but Bloomberg Philanthropies with support from the Ford Foundation are generously funding each successful candidate on a scholarship basis. Scholarships include tuition, class materials, lunch and refreshments. The deadline for initial applications is 25 November 2016. Applications will be reviewed and places awarded on a first come first served basis. The BMIA Executive Training Program will begin in January 2017 and will be offered in Johannesburg, Lagos and Nairobi.

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EDIT Stanford SEED, which enables East Africa business owners to lead their regions to greater prosperity. The Seed Transformation is a comprehensive year-long program that includes six months of immersive general-management training in Nairobi, Kenya, led by Stanford GSB faculty and supported by trained local facilitators. It is targeted at founders and senior leaders of for-profit companies who want to grow and scale their companies. Deadline 31 October.

Vote in the OLX Social Media Awards  up to September 22.

TED Fellow: Apply to the TED Fellows program, that aims to find a new class of extraordinary thinkers and doers who are aged 21 to 40. The next cycle is from October 4 to November 13.

 EDIT Also  TEDGlobal is returning to Africa at Arusha in August 2017.

YALI Regional Leadership Center East Africa (RLC EA) is merit-based and open to young East African leaders.

EDIT  The Africa Region of the World Bank Group (WBG) is relaunching its fellowship program for Ph.D. students who are Sub-Saharan nationals. The program will increase the diverse workforce that is a priority for the Bank and its clients.

EDIT AIA, one of the world’s largest insurers, has created the AIA Blockchain Challenge, a virtual challenge that concludes with the chance to secure a pilot contract and a sizeable development grant of up to US$50,000.. (in) claims process, customer information and regulation, risk management & treasury efficiency, digital health..Applicable top entries will receive paid pilot opportunities. Submission deadline is November 20 (source)

EDIT  Apply for a 2017 Mandela Washington Fellowship, as the Young African Leaders Initiative (YALI) is looking for 1,000 African leaders! Applications closes on 26 October. (source)

EDIT Recruiting AkiraChix class of 2017:  Every year for the last 5 years, AkiraChix has the pleasure of welcoming a group of young, hopeful, young girls from all over Kenya for our one-year training program. This program has continued to be offered at no cost to the students with classes in Web Design, Mobile application design, Graphic Design, Hardware design, Life Skills just to mention a few. If you or someone you know is interested in joining next years class please apply

EDIT Apply to join the next MasterCard Start Path Global – #StartPath program.  MasterCard partners with startups from around the world to help scale their businesses. The program enables companies to gain access to MasterCard’s global ecosystem and to break new markets through relationships with MasterCard and our customers. Some key features include: 6 month virtual program (take part from your home location),  2 immersion weeks at different cities and  no upfront equity in exchange for participation. Deadline is October 11.

EDIT  The Chezo Game Jam Competition is here. Chezo Gaming is an initiative to support the creation of games to address local challenges. The competition will take place from the 30th of September 2015 to the 2nd of October 2016. Winning teams (3) will receive a cash award of € 2,000 (US$2,200) and additional mentorship for up-to 3 months. Find out more here.

EDIT  The 5th edition of the  Pillars of Africa celebrates the extra-ordinary achievements of the young people of Africa, and is open for nominations in entrepreneur,  humanitarian, arts & clulture, business icon and sports categories, up to  October 28  (via @pillarsofafrica on twitter; or Facebook page Pillars of Africa).

EDIT The African Leaders of Tomorrow (ALT) Scholarship Program commemorates the late Nelson Mandela’s commitment to social justice and equity. It supports young African professionals to become leaders in public policy and administration. The ALT Scholarship Program grants full scholarships based on merit to women and men from sub-Saharan Africa to pursue a Master’s degree in public administration, public policy or public finances in Canada. Application deadline is October 14 2016

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Adansonia, a unique pan-African opportunity, gives one the tools to be part of a wide network of similarly minded ambitious entrepreneurs from Ghana to Uganda, from Nigeria to South Africa or Kenya through an intense one-week course by  Bocconi Business School, and  international pitching event.

Africa Business Fellowship places talented American professionals within leading African companies for a minimum of 3 and up to 6 months. Through this joint partnership, Econet (founded and led by Strive Masiyiwa, and also the Fellowship’s benefactor), Africa Leadership Network and MLT will offer this unparalleled opportunity for American professionals to gain invaluable insight and hands-on experience in African businesses. Apply by November 1.

Appsafrica Innovation Awards recognise innovation and excellence in African mobile and tech. Supported by Mobile Monday, the Mobile Ecosystem Forum (MEF), Uber and the Mobile Marketing Association (MMA) winners will be announced at the awards party on November 14th, 2016 in Cape Town. Entries will be charged $60 per category that is entered. Start-ups who are less than 12 months old will not be charged subject to approval and can contact us for a discount code. Deadline is September 20.

creative

Africa Tech Challenge has 15 teams from Technical Vocational Education and Training institutions (TVETs) in Kenya, Zambia, Ghana and Uganda competing for Ksh 200,000 ($2,000)  as well as full scholarships to study for their Masters’ in top engineering universities in China. AVIC says the Africa Tech Challenge has armed over 290 students with technical skills.

At the AGRF 2016 in Nairobi in September 2016, commitments were made to fund African agriculture with $30 billion, including $24 billion from the African Development Bank, $5 billion from the Gates Foundation and $3 billion from the International Fund for Agricultural Development.

Advance Africa has several opportunities including British Chevening scholarships for international students to study in UK.

Government of Kenya scholarships to study in the UK, China, India, Mexico, Brazil, Russia, Oman, Hungary, Cuba, Slovakia, Egypt, Korea, Morocco, Ireland etc.

GSMA Ecosystem Accelerator Innovation Fund is now open for applications from start-ups in Africa and selected Asian countries, offering funding: grants of between  £100,000 and  £ 250,000. Applicants must provide a matching of at least 50% of the amount of funding requested Deadline is 18 September.

Heva Fund: HEVA is ready to receiving applications for its investment cycle,  investing between KES 100,000 and 1,000,000 to help creatives grow their businesses.

Advance Africa has several opportunities including Mo Ibrahim Foundation fellowships for young Africans.

Apply to Pitch AgriHack to win investment for your e-agriculture start-up! The Technical Centre for Agricultural and Rural Cooperation ACP-EU (CTA), in collaboration with the African Development Bank (AfDB) and the support of partners including the Centre for Agricultural Bioscience International (CABI) and m:lab East Africa, is launching the pilot edition of Pitch AgriHack, a new component of its AgriHack Talent Programme. The entrepreneurs should be owners of an already developed e-agriculture/ICT4Ag application or platform. Two categories are available: Early stage platform and Advanced platform. Winning teams will receive a cash prize of up to €15,000, as well as promotional support, additional capacity building and networking opportunities. For More.

Rockefeller – Africa Centre,  Artists In Residence (Bellagio) program is seeking applications from high calibre African artists, in different stages of their career development (from emerging to late career), who are provocative, innovative, and are stretching the boundaries of their artistic practice. The residencies are available to composers, fiction and non-fiction writers, playwrights, poets, video/filmmakers, curators, visual and performance artists. Application deadline is September 30.

$1 = KES 101, £1=133, €=113

What other opportunities are out there? Share in the comments section

AGRF 2016 $30 billion for African Agriculture

The ongoing  6th African Green Revolution Forum (AGRF) summit at Gigiri in Nairobi has seen a raft of commitments made by global and African organizations and leaders to increase production, income and employment for African farmers. The Gates Foundation and the Rockefeller Foundation announced an extension of their support to AGRA (organizers of the  event), who also celebrated their 10th anniversary this week.

Kanayo Nwanze, Agnes Kalibata, Akinwumi Adesina - three winners / laureates of the Africa Food Prize

Kanayo Nwanze, Agnes Kalibata, Akinwumi Adesina – three winners / laureates of the Africa Food Prize

Some of the announcements include:

  • African Development Bank $24 billion  to accelerate commercial financing and commercial lending to small farmers and agri-business, some of which will go towards partial risk and  partial credit scheme to improve the quality of agri-business investments to Africa
  • Gates Foundation $5 billion. 
  • $3 billion from the International Fund for Agricultural Development over 6 years (IFAD has a policy to spend at least half its $1.1 billion annual budget in Africa) .
  • Kenya Commercial Bank pledged $350 million (including $200M towards market infrastructure and $150M to livestock farmers) 
  • Kenya Government $200 million towards young farmers and entrepreneurs market access,  finance and insurance.  
  • Others were by $180M from the Rockefeller Foundation (including $130M to the Yieldwise initiative under AGRA to improve field storage), Yara fertilizer (to link small farmers to value chains), OCP Africa ($150M for local fertilizer distribution), World Food Program (will buy $120M from small farmers through a  Patient Procurement Platform), MasterCard Foundation ($30M to give small farmers market & credit info on phones in conjunction with KCB) and finally, USAID reported it had invested $6.6 billion through its ongoing Feed the Future initiative. 
$1 = 100

Domestic Resources Mobilization in Africa

African case studies on tax reform and domestic resource mobilization from Togo, Uganda and Ethiopia.

Togo 

  • IMF was not very happy when they merged the two offices of customs and revenue. But Togo accepted performance monitoring mechanism that was funded by the WB and when they saw that it was working, then the IMF came back on board.
  • Introduced reform in a country where the richest people are civil servants
  • Invested in computers, capacity building, software to have a system that tackles all aspects from declaration to dispute resolution.
  • Got 15,000 new taxpayers last year, while in past years they used to get 7,000.
  • Also improve speed and security. Previously, petroleum revenue used to be manually recorded. They now use PIN’s in different department, and the software is connected to the banking system so no more direct payments (all are done at at banks).
  • While they initally retired a number of officers who did not want to learn or comply, those who remained had improved terms with performance targets for which they earn bonuses
  • 2015 target was 480 billion CFA and they managed to college 516 billion.
  • They have not fully used the system yet. It’s only two years old, but they rely on their neighbours for internet connectivity.

Afcop AfriK4RUganda: 

  • Is in second phase of a 2019-20  plan which targets to  fully financing budget from domestic sources. The revenue authority started in 1991 but reforms started in 2005.
  • Even as the economy has grown, surprisingly the informal sector has also grown to take a larger share of the economy (49% of GDP, up from 43% in 2002. They have had to target the informal sector to keep up e.g via presumptive tax thresholds.
  • The revenue authorities treat the government as ‘private sector’and removed their exemptions like VAT and income tax.
  • Have business bands, and a taxpayer identification number (TIN) is requires for most transactions and permits, whether livestock movement, boda boda purchase, agriculture payments etc. All professionals – doctor engineers lawyers also have TIN’s, and they hope the introduction of national ID cards will enhance tax collection efforts.
  • They have a separate section for international taxation and have built capacity in oil & gas taxation. But as they train staff, other companies hire away their top performer, so they have to be retained.
  • They have simplified tax system so people can pay at their convenience e.g. via mobile money even when banks are closed.

Ethiopia:

  • Set out to mobilization domestic resources for the largest hydroelectric dam in Africa after foreign donors and partners who had supported previous smaller dams, balked at participation.
  • The GERD (Great Ethiopian Renaissance Dam) will generate 6,500 MW. It is 1,680 Sq.KM, and 120 kilometres by 14 kilometers and 146 metres high – and it took off  in April 2011, is 70% done, to be completed in July 2017.
  • Because of political impact river to other countries (shared Nile), external funding was blocked by international community and they turned to own people to meet the $4.8 billion cost (11% of their GDP or about 60% of the country’s 2012 budget).
  • Got contributions from individuals and companies –  local and diaspora –  though direct contributions, lotteries, music events.
  • They also had a diaspora bond which has raised $500 million. People bought the 1.5% bond that matured in 5,7, 10 years. The dam will generate income from electricity sales to pay back the bond – and is expected to generate $1 billion per year.
  • They also got support from banks, who expanded branches to reach more of the rural population (one bank now has 1,000 outlets) and mobilized deposits. The banks were required to allocate 27% of every loan they make to buy the bond.