African Business du 25-03-2020


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Published 25 March 2020
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The Best selling Pan-Af r ican Business Maga zine African BUSINESS
An IC Publication | 54th Year472| N° 2020| April
Beyond the barrel: Africa’s green renewal
Euro Zone €5.00 UK £4.00 USA $6.50 Algeria DA 500 Canada $6.50 l l l l l CFA Zone CFA 2 900 Egypt E£ 60 Ethiopia R 150 Gambia GMD 200 l l l l Ghana GH¢ 20 Kenya KShs 350 Liberia $5 Mauritius MR 150 Morocco Dh 40 l l l l l l l l l l Oman OR 2.00 Qatar QR 20 Rwanda RWF 3000 Saudi Arabia Rls 20 SierraLeone LE 40,000 l l l Singapore $7.50 South Africa R40 (inc. tax) Other Southern African Countries R 35.10 (excl. tax) l l l l l Sweden SKr 33 Switzerland SFr 8.70 Tanzania TShs 6,500 Tunisia DT 5 Turkey TL 10.000Y UAE Dh 20 Uganda USh 15,000 Zambia ZMW 50 l l l
FEATURES African economies buckle under pandemic Coronavirus forces travel shutdown Tullow Oil fights for future amid markets rout Kagame and Museveni hammer out differences
SPECIAL REPORT Nigeria: Sink or swim for Africa’s largest economy
M 03136- 472 -F:5,00E- RD 3:HIKNLD=[UZUU[:?a@e@r@m@a";
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C O N T E N T S ContentsIssue Nº 472 www.icpuApril 2020
Cover storyBeyond the barrel: Africa’s green renewal
Business intelligence 4 News and deals from around Africa
Cover story 19green Africa’s renewal gathers pace
16 Africa braces for coronavirus
Energy 19 Interview with  Philippe Valahu, CEO, PIDG 22Transmission and distribution 24Going solar in Zimbabwe 26Tullow Oil fights for its future
Opinion 28An Africa summit  we could all support 30Women’s issues are economic issues
37 E-commerce  boosts fashion industry 40Technology: Uganda
Special Report: Nigeria 42Economic outlook 45Energy sector 46Business climate 48Trade 50Focus on Lagos ferries 53 Focus on Dangote Group 55Innovation 58Dangote spearheads  tomato production 60Nigeria’s ID card project
Countryîles 66On the road with  Gambia’s boxing team 69Kagame and Museveni hammer out differences
Review 72Review ofCapital and Ideologyby Thomas Piketty
Last Word 74Protecting the vulnerable against coronavirus
4African BusinessApril 2020
Impact of coronavirus
In mid-March, South Africa barred entry to visitors from China, Germany, Italy, the US, the UK and others as it sought to ward o the global coronavirus pandemic, placing more strain on an economy that was projected to grow just 0.8% this year. Declaring a national state of disaster, President Cyril Ramaphosa said that foreign nationals who had visited high-risk countries would be denied a visa. Kenyan President Uhuru Kenyatta said his government was suspending travel from any country with reported cases, while Ghana said that travellers from countries with over 200 cases would be shut out.
UNICEF stresses importance of handwashing 63% of people in urban areas in Sub-Saharan Africa – roughly 258m people – lack access to handwashing facilities, potentially hampering the continent’s îght against coronavirus, says UNICEF. As the pandemic continues its spread, UNICEF is reminding the public of the importance of handwashing as a key prevention measure against Covid-19 and urging renewed eorts to provide access to this most basic of public health interventions.
Travel bans across continent
UNECA slashes Africa growth forecast The UN Economic Commission for Africa has slashed its growth forecast for the continent due to the global coronavirus pandemic. UNECA says that Africa’s growth will fall from 3.2% to 1.8% this year, although further downwards revisions are possible given the continued impact on supply chains and oil prices. Oil exporting nations could lose up to $65bn in revenues as crude oil prices continue to tumble, says UNECA, and Africa needs $10.6bn in unanticipated increases in health spending to curtail the virus.
Airlines cancel Lights Africa’s airlines have cancelled ights as the aviation sector begins a coronavirus-induced shutdown. In mid-March South African Airways cancelled all regional ights till the end of May while SA Express suspended operations. Ethiopian Airlines began cutting services to China in February. Tunisair said it would lose 70m dinars ($24.6m) in March and 80m dinars in April due to the pandemic.
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6African BusinessApril 2020
Impact of coronavirus
Kenya’s central bank governor said that the country’s banks will allow borrowers to extend their loans for up to year if they get into diîculties as a result of the coronavirus. Small and medium-sized enterprises in distress will also be allowed to restructure their loans without cost in a bid to avoid a health crisis becoming a Inancial crisis, said Patrick Njoroge.
International football matches postponed Sports events across the continent have been cancelled or postponed in a bid to control the coronavirus pandemic. The Confederation of African Football postponed two rounds of the 2021 Africa Cup of Nations qualiîers scheduled for March 25-31. The Federation said it had indeînitely postponed the African Nations Championship 2020 tournament scheduled for April in Cameroon.
Central Bank of Kenya extends loans
Central Bank of Nigeria creates fund to combat Safaricom waives fees coronavirus for M-Pesa transactionsNigeria’s central bank On 17 March, Kenyan has created a $163m fund telecoms giant Safaricom to combat the impact of agreed to waive fees for coronavirus. The support M-Pesa transactions will allow banks to give below KSH1,000 ($10) for their customers more time to 90 days in a bid to keep repay loans, and will provide payments moving during credit support for the health the coronavirus crisis. The sector, including loans to initiative followed a pharmaceutical companies directive by President Uhuruand îrms building clinics Kenyatta to explore ways and hospitals. The country of deepening mobile money will postpone all non-critical usage to reduce the risk of spending and delay a $3.3bn spreading the virus througheurobond oering. Nigeria’s the physical handling of budgetary assumption of$57 cash. The daily transaction a barrel has been decimated limit will also be more than by Brent crude prices of doubled. around $30 a barrel. Emerging Capital Partners buys SA Burger King franchise
Burger King in South Africa generated a proIt of R11.7m last year R11.7m
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