Category Archives: ADB

AfDB 2020 annual meetings

The abbreviated annual meetings of the African Development Bank (AfDB) Group ended this week after just three days, a slimmed-down virtual event, compared to the meetings last year in Malabo.

The Governors of the bank, representing 54 African and 27 non-regional member countries, dealt with statutory matters and approved the accounts of the bank for 2019, and reviewed its performance and the auditor reports. The Governors also commended the bank for its measures to work through COVID and while also providing flexible support to countries through the COVID-19 Rapid Response Facility of up to $10 billion.

During the year there will be a focus on infrastructure finance and quality health care and collaboration with the African Union and regional economic blocs to fast-track the African Continental Free Trade Area which was postponed from July this year, and will now kick off on January 1, 2021. Another initiative that will be supported will be the G-20 debt relief effort, recognizing that many African countries will go in to recession for the first time in twenty-five years as they tackle lockdowns, weaker tax revenue, and increased emergency health expenses.

2020 Annual Meetings Day 2 – Best of

The main highlight of the AfDB meetings was the election of the President, which saw Dr. Akinwumi Adesina re-elected for a second term with 100% of the delegate votes. The USA appears to have been the main opponent of his re-election, and their comments calling for the bank to ensure cost-effective management, review its use of resources and strengthen oversight & governance were contained in the final communiqué released by the Bank at the end of the meetings.

The next AfDB Annual Meetings are planned to take place in May 2021 in Accra Ghana. They will be hosted by the new Chairperson of the Bank, Mr Ken Ofori-Atta, Ghana’s Minister for Finance who took over from Ms Niale Kaba, the Côte d’Ivoire Minister of Planning & Development after she stepped down at the end of her term this week.

Swearing in ceremony of President-elect Dr. Akinwumi Ayodeji Adesina

EDIT September 1: Dr. Akinwumi Adesina was sworn in to start his second term as President of the African Development Bank Group.

AfDB plan virtual annual meetings for 2020

In just over a week, the African Development Bank Group (AfDB) will stage its 2020 annual meetings from Abidjan, Cote d’Ivoire which is the headquarters city of the bank.

The 55th annual meeting of the Group will run from August 25 to August 27. They had initially been planned to happen in May 2020. But because of the surge of coronavirus infections and travel bans across the continent, they were postponed.

The 2019 annual meetings were held in Malabo, Equatorial Guinea and saw thousands of guests, including Presidents, bank governors, finance ministers, and representatives of civil society, media, policy, and the private sector descend on the island of Bioko for a week of engagements.

But this year, as with all major global events, delegates will instead meet virtually and online. The 2020 meetings will feature a reduced schedule that will focus on closed statutory meetings of the Governors of the Bank who represent 54 African countries and 27-non-regional members of the Group.

A key agenda item will be the election of the President of the AfDB. Nigeria’s Akinwumi Adesina has served one term as President and is up for re-election. He is the only candidate, so far, and has the support of many countries including host Cote d’Ivoire and his native country. Last month he was vindicated by the findings of both a board investigation and an independent panel of international experts that investigated allegations in a whistleblower complaint. 

There will also be the annual meeting of the African Development Fund,  and some familiar sideline events, such as the African Banker awards.

Some notable nominees include the Access acquisition of Diamond Bank, the Airtel Dual Listing and the  MTN Nigeria IPO for deal of the year (Equity) and the Access Bank green bond for deal of the year (Debt). Also the Acorn Green Bond, Nouakchott port financing, Port of Maputo, and the Tanzania standard gauge railway are all in contention for infrastructure deal of the year.

Coronavirus in Kenya: Week One

The Outbreak

  • March 13: The Ministry of Health confirms the first case of coronavirus in Kenya on March 12 from a Kenyan citizen who returned to the country from the USA via London 
  • March 22: Kenya confirms 8 new cases, bringing the total number to 15. It is tracing 363 other people and institutes a mandatory shutdown of major social activities in the country. 

Banking Industry:

  • March 15: President Uhuru Kenyatta appealed to banks and mobile operators to reduce the costs of mobile transactions and calls on Kenyans to use credit cards, mobile money and other forms of cashless payments. 
  • March 16: Safaricom waived fees for M-Pesa payments below Kshs 1,000 (~$10) for 90 days and raises M-Pesa transactions limits to Kshs 150,000 and also increases daily transaction caps and maximum mobile money wallet sizes up to Kshs 300,000 ($3,000). Airtel and Telkom Kenya follow suit a day later. 
  • March 18: Bankers meet the President at State House where the Central Bank of Kenya (CBK) Governor announces that all commercial bank personal loans that were there in good standing on March 2, are eligible for extensions for up to one year while SME and corporate borrowers can approach their banks to be assessed for loan restructuring, with the cost borne by banks. Also, that banks would no longer charge fees for customers to check their bank balances.
  • Different banks announced their compliance with the new rules.   
  • March 19: The Kenya Bankers Association confirms that all banks will assist clients who come in to speak about how COVID-19 has affected their employment or business operations, and whose loan repayments were up to date as at 2 March 2020. They also ask all customers to observe 1-metre (or 3 feet) social distancing at branches
  • March 20: The CBK announces presents Kshs 7.4 billion ($74 million) to the Government to support the coronavirus fight efforts. This it says are the proceeds from the demonetization exercise that concluded in September 2019 and is the sum of (old) Kshs 1,000 notes that were not turned in and which the CBK had classified as being miscellaneous receipts. 

Famous People in Quarantine

  • March 18: Senator for Kericho County Aaron Cheruiyot announces on twitter that he is in self-quarantine. 
  • March 19: Members of Parliament and Parliamentary staff who arrived from London on March 9 are reported to be in self-quarantine. 
  • March 19: Ambassador Macharia Kamau Kenya’s Principal Secretary to the Ministry of Foreign Affairs announces on twitter that he is in self-quarantine after returning from New York. 
  • March 20: Jane Marriott, the British High Commissioner to Kenya announces on twitter that she is in self-quarantine, following her trip to the UK. 
  • March 22: Kenya’s Cabinet Secretary for Health announces that Gideon Saburi, the Deputy Governor of Kilifi County, has been apprehended and put in a mandatory 14-day quarantine after he failed to isolate himself after returning from a trip to Germany. Also that he will be charged in Court after his isolation period. 

Mandatory Quarantine in the Eastern Africa region 

  • March 18: Uganda announces immediate mandatory quarantine for arriving visitors, at their cost.  
  • March 21: Ethiopia announces mandatory for passengers arriving from March 23, at their cost. However, diplomats will be quarantined for 14 days at their embassies, while transiting passengers will be placed in isolation at the Ethiopian Skylight Hotel until they resume their connecting flights.
  •  March 22: Kenya has suspended all international flights other than cargo from March 25. Also, all arriving passengers will undergo mandatory quarantine at a government institution at their own cost. 

Internal country shutdowns

  • March 14: Rwanda closes schools, places of worship, large gatherings, and asks people to work from home. 
  • March 15: Kenya’s President announced the Government has closed all schools, suspended official foreign travel, and will encourage all employees to work from home. 
  • March 18: Uganda closes schools, universities and bars, and bans weddings and religious services for a month. 
  • March 21: Rwanda closes its borders to movement of people and cancels international flights, other than cargo ones. It also suspended tourism and research in 3 national parks where gorillas are found.
  • March 21: Nigeria shuts its airports to international flights as coronavirus cases reach 22.  
  • March 21: South Africa closes its airspace to foreign travelers.
  • March 22: Kenya orders a suspension of religious services at all places of worship, closure of bars and bans gatherings including weddings, and birthday parties. Restaurants are to remain open for delivery services and funeral events are restricted to a maximum of 15 mourners.

Flight cancellations/ Airlines reschedulings:

  • March 17: Kenya Airways updates its schedule, reducing London flights to five times a week, Dubai & Johannesburg to once daily, and Johannesburg to two daily. It also suspends flights to Bangkok, Khartoum, Djibouti & Mogadishu. 
  • March 18: Rwanda announces a halt to all commercial passenger flights into/out of the country on March 20 including operations of Rwanda Air for 30 days. 
  • March 19: Kenya Airways suspends flights to Antananarivo, Bamako, Bangui, Blantyre, Brazzaville, Kigali, Kilimanjaro, Luanda, Yaounde/Douala, and Zanzibar. 
  • March 20: Ethiopian Airlines announces 30 routes closures. The list is not revealed till the next day – and the listed countries include Egypt, Lebanon, Somalia, Djibouti, Namibia, Equatorial Guinea, Cameroon, Chad, Madagascar, Angola, Congo, Mali, Senegal, Rwanda, South Africa, Canada, Spain, Belgium, Switzerland, Indonesia, Israel and all US ones. 
  • March 20: South African Airways immediately suspends all operations until the end of May following a government notice prohibiting the embarkation/disembarkation of non-SA crew and passengers. The only flights that will remain will be domestic service between Johannesburg and Cape Town.
  • March 22: Emirates announces cancellation of all passenger flights from March 25 .. but .. 
  • March 22: Turkish Airlines to suspend most of its flights – leaving just a handful of flights to New York, Washington, Addis Ababa, Moscow & Hong Kong (via AlexinAir).
  • March 22: Kenya Airways suspends all international flights. Cargo flights remain, as will passenger services to Mombasa and Kisumu. 

Corporate Restructuring’s: 

  • March 13: Trading was suspended at the Nairobi Securities Exchange. This came following news of the discovery of the first coronavirus case in Kenya and the main share index dropped by over 5%. Past instances when circuit-et breakers have been tripped include in the period of post-election violence in 2008, and in September 2017, on the day that Kenya’s Supreme Court nullified the results of the August 8 presidential election. 
  • March 13: Kenya’s insurance regulator, IRA, communicates that insurance companies will continue to provide their services to policy holders affected or infected with the virus .. but insurance companies say their re-insurers do not cover pandemics such as Coronavirus. 
  • March 16: Ethiopian Airlines restructuring plans include scaling up cost-saving programmes and asking service providers for temporary relief, discounts and waivers. They have also started to renegotiate all contracts, including aircraft leases as well as scaling down offices and reducing staff.
  • March 16: Java adjusts seating and promotes delivery as do other restaurants. But many other restaurants closed. 
  • March 18: It was revealed that The Standard Group plans to lay off 170 workers. 
  • March 18: Churches to restrict attendance numbers.
  • March 18: The African Development Bank cancels all travels and requires staff to work from home. The Bank’s Board of Directors is reviewing the configuration and design of the Bank’s statutory Annual Meetings originally scheduled for May 26-29, 2020 in Abidjan
  • March 18: Kenyan listed companies and licensed investment schemes that were to host annual general meetings (AGM’s) in March, April and May 2020 have been asked to defer them to later dates.
  • March 20: Kenya Airways CEO sends a memo to staff following COVID-19 and writes that in the last 24 hours, nine countries in our Africa network, the UAE and India have announced travel restrictions. So far, we have reduced approximately 65% of our flights, and this is changing by the hour. He announces that instead of layoffs they will ask staff to take salary reduction and paid & unpaid leave. The leadership team and he will take 75% and 80% respectively, while that for other staff will be 25% or 50% depending on the pay grade.
  • To facilitate supermarket shopping home deliveries, Tuskys has partnered with Sendy and Naivas has partnered with Glovo.

Government Adjustments 

  • March 16: The Ministry of Lands closes all land registries for 28 days from March 17. 
  • March 16: Kenya’s Sports & Culture Ministry closes all museums, archives, stadiums, public libraries, and cinemas for 30 days.
  • March 18: Kenya’s National Assembly and Senate both go on a month-long recess. 
  • March 18: Kenyan courts embraced digital filings and rulings of cases. 
  • March 19: Public health campaign to stop the spread is launched. 

Uplifting News

  • March 21: A thread to help those losing jobs their jobs this week and to help match their skills with part-time or remote-work opportunities. 
  • March 22: The first shipment of medical relief equipment offered by the Jack Ma Foundation arrives in Africa for distribution to different countries. The total will be 500,000 test kits and one million masks had been pledged on March 13.

AfDB’s record capital call of $115 billion

The shareholders of the African Development Bank (AfDB) have approved an increase of its capital to support its future development finance and impact across the continent over the next decade.

Meeting in Abidjan, Côte d’Ivoire, in October 2019, the shareholders, representing 80 countries, approved an increase in the AfDB’s authorised capital, from $93 billion to $208 billion. At the end of 2018, the Bank had assets of $47 billion and $58 million of net income.

The voting power of shareholders includes Nigeria (9.3%), Egypt (5.6%), South Africa (5%), Algeria (4.2%), Morocco (3.6%), Côte d’Ivoire (3.7%) and Kenya (1.4%). African nations have a total of 59% of the voting powers, while other nations, including the USA (6.6%), Japan (5.5%), Germany (4.1%) and Canada (3.8%), have total votes of 41%.

The path to the seventh capital increase began back in January 2018 and has gone through several steps including interactions and progress review updates with shareholders and partners that were summarized at the 2019 AfDB annual meetings in Malabo, Equatorial Guinea.

The last capital increase was in 2010. Some of the highlights of the funding during the sixth period include the establishment of agro-industrial zones across Ethiopia and arranging $1 billion in finance for South Africa’s Eskom to expand its generation and transmission capacity. There was also the Sene-Gambia bridge, which was the realization of a 40-year dream to connect two countries, the 895-kilometers Addis-Mombasa highway and the expansion of Namibia’s Walvis Bay port to become a regional logistics hub.

A bank study of the impact of its $1.4 billion investments in East Africa region, between 2013 and 2015, found that this had resulted in the addition of $1.2 billion to the economies of the different countries and created over 380,000 jobs

The new funding, which will be called up from shareholders between 2020 and 2025, is intended to finance the Bank’s High 5 priorities and maintain its AAA rating with the top rating agencies. Over the next decade, the AfDB plans to double the funding efforts towards energy and agriculture, with targets to allocate 25% and 20% respectively, to the two sectors by 2031.

The Bank has lined up a three-year pipeline of projects to lend to, including $15 billion in 2020 and $13.6 billion in 2021. Some of the planned projects are targeted at improving continental transport networks, supporting climate change initiatives, and increasing access to electricity and water. One of them is a “Desert-to-Power” initiative that aims to transform the climate-fragile Sahel region into the largest solar zone in the world that will generate 10-gigawatts and impact 250 million people.

Africa: Sports as a Business and a Brand

At the ongoing Africa Cup of Nations in Egypt, the visual imagery of almost-empty stadiums is a powerful narrative. But not the kind that African sports, African football, or corporate sponsors deserve.

The empty seat syndrome suggests that football fans are voting with their feet, or better still with their backsides. Fans are choosing not to watch live football events, and instead are opting in increasing numbers for the ‘intimacy’ of their crystal clear digital flat TV screens, or not all.

Before Egypt’s stunning 0-1 loss to South Africa in the round of 16, the host country was the only team able to attract 70,000 fans. Other than when Mo Salah and the Pharaohs have been on the field, most stadia across Egypt have at best attracted an average of 5,000 to 7,000 fans.

Official broadcast camera crews have done a creative job minimizing the visual gaps of empty seats. But wide camera angles reveal the obvious … a lack of attendance and public enthusiasm, in spite of the presence of some of the biggest names in world football on the field.

In European football leagues, where many of the stars in Egypt ply their trade, fans pay mega bucks to see the likes of John Mikel Obi, Ahmed Musa, Sadio Mane, Ryahd Mahrez, Nicolas Pépé, Wilfred, Zaha, and Kalidou Koulibaly.

Which is why the empty seats in Egypt are both stunning.

Admittedly, Egypt bailed CAF out and should receive well-deserved credit for coming to the rescue and hosting the African Cup of Nations, with barely 6 months notice, when the original hosts were sanctioned due to shoddy preparations.

Nevertheless, the lack of attendance in Egypt speaks volumes high ticket costs; the timing of matches bang in the middle of work days; the difficulties faced by national team supporters in obtaining entry visas to Egypt; and challenges with the Confederation of African Football’s complicated online ticket purchasing system.

It should not be so. This after all, is the most important event in Africa’s sports calendar. At least, it used to be before England’s Premier League, Spain’s La Liga, Italy’s Serie A, and Germany’s Bundesliga captured our collective imaginations.

The end result is that where once 30,000 to 70,000 fans a week watched highly competitive domestic football leagues across Africa, the empty seat syndrome has been the norm for almost two decades. It is not unusual to have less than a thousand fans in a stadium that seats 30,000.

The lack of fan attendance has obvious economic and financial implications across the sports value chain for team owners, sports federations and confederations, players, sponsors, advertising and marketing agencies, merchandisers, vendors, and local communities who once counted on fan attendance to boost fledgling economies.

What’s responsible for the increasing slide in fan attendance?

1. Poor facilities
2. High ticket costs
3. A lack of reliable transportation to and from venues. As well as sufficient and secure parking.
4. Increasingly crude behaviour and violence at event locations.
5. Technology. Mobile phones and Apps that carry events live as well as a plethora of entertainment alternatives. In other words, once big events are no longer the main gigs in town.

So, what can be done to reverse the trend? Here are 5 quick suggestions.

1. It can no longer be business as usual. Africa must run sports as a professional business. This includes the right infrastructure, training facilities, attractive pay scales for professional athletes who now consider anything less than a European league appearance, a professional failure.

Regrettably, as with Africa’s overall propensity to simply export raw materials instead of adding value to what we produce, we are doing the same with football and many other sports. Africa has a tremendous abundance of potential talent that for the most part (with the exception of South Africa, Kenya and Ethiopia) we add little or no value to. Instead, millions of genetically blessed athletes are simply waiting or begging to be ‘found’ on the cheap by European and American sports teams. Why? Simply because we fail to see diamonds in the rough and because we are unable to add value to the potential of what for now seems to be rough stones.

2. Modern and professionally maintained facilities: In sizzling hot Africa, we must invest in covered stadia. When I can sit in front of my big screen TV in my air-conditioned living room, why would I want to subject myself to temperatures that I swear have gone up a number of notches in recent years?

3. Sport is a spectacle. This includes everything including pre-event and half time entertainment to keep fans with short attention spans upbeat and engaged.

4. Give back to the fans: Essentially, engagement in the 21st century must change. It’s time to give something back to fans rather than fleecing them at every opportunity with sub-standard services and products. It would seem to me that sports teams could offer something as simple as raffle draws that reward fans with extra game tickets, signed player jerseys, visits with select players, or products from local sponsors. Professional marketing firms can come up with an endless list.

5. Make sports big and make it a win-win proposition:  Real Madrid F.C. and Barcelona F.C. for example, are not owned by a few rich individuals. Instead, they are owned and supported by thousands of shareholders known as ‘socios.’ Across Africa, it’s time to change the numbers game – in ownership, money, and attendance – by giving fans a seat at the table.

These are just a few quick ideas. However, the running of sports in general and football in particular as a business and a brand proposition, will require honest analysis, political and financial will, and a collective approach.

It must be if Africa is to unlock its sports potential and turn millions into billions.

Dr. Victor Oladokun, is the Director of Communication and External Relations at the African Development Bank