Tag Archives: Financial Inclusion

AMA, Business

Africa Fintech Summit Announces Flutterwave as Lead Fintech Sponsor for the 10th Anniversary Summit in Lusaka, Zambia.

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LUSAKA, Zambia, 10 October 2023 /African Media Agency (AMA)/- The Africa Fintech Summit is proud to announce Flutterwave as the Lead Fintech Sponsor for its highly anticipated 10th-edition summit, set to take place in Lusaka, Zambia, on November 2-3, 2023. This partnership marks a significant milestone for both the Africa Fintech Summit and Flutterwave, showcasing their shared commitment to fostering innovation and growth within the African fintech ecosystem.

Flutterwave’s dedication to advancing the fintech industry in Africa has been unwavering, making the company a natural choice as the Lead Fintech Sponsor for this landmark event. Over the years, Flutterwave has consistently demonstrated its support for the summit and the broader African fintech community, contributing to the growth of digital financial services across the continent.

The Africa Fintech Summit, now preparing for its 10th edition, has become a pivotal platform for thought leaders, industry experts, policymakers, and innovators to converge, exchange ideas, and forge partnerships that drive financial inclusion and economic development across Africa. It has consistently provided a stage for discussing the latest trends, opportunities, and challenges in the fintech space.

Flutterwave’s COO, Bode Abifarin, expressed excitement about the partnership, stating, “We are honored to once again be the Lead Fintech Sponsor for the Africa Fintech Summit. The summit has played a crucial role in shaping the fintech landscape on the continent, and we are thrilled to continue our long-standing support. At Flutterwave, we believe in the potential of African fintech to transform lives and drive sustainable economic growth. We are committed to working together with the Africa Fintech Summit to create an even more vibrant ecosystem for fintech innovation in Africa.”

Some of Flutterwave’s recent accomplishments and developments that will be highlighted at the summit include:

1. Expansion into New Markets: Flutterwave continues to expand its presence and strengthen its foothold across Africa, facilitating effortless cross-border transactions for both businesses and individuals. Earlier in the year, Flutterwave secured two additional licenses in Rwanda: Electronic Money Issuer and Remittance Licenses, in addition to its Payment Service Provider license, enabling the company to strengthen its operations in East Africa.

The company recently disclosed that it is on track to expand to India via cross-border remittance partnerships with IndusInd Bank and engineering mobility collaboration with Capgemini.

2. Partnerships with Leading Institutions: Flutterwave has also recently sealed a flurry of partnerships that will either strengthen its capabilities to offer seamless payment solutions or extend its influence into multiple industries. A recent partnership includes a collaboration with the International Air Transport Association (IATA) to simplify payments for airlines serving sub-Saharan Africa. 

Others are the strategic partnership with Audiomack to support more payment modes and empower artists on the platform to monetize their work and collaboration with Token.io to power Pay By Bank transfer capabilities for SMEs on Flutterwave for Business while giving Token.io the opportunity to provide Pay by Bank payment method for businesses in Africa.

3. New and Enhanced Payment Solutions: Flutterwave has remained committed to rolling out solutions that will simplify payments for businesses and individuals in various contexts. The company recently launched Swap in partnership with Wema Bank and Kadavra BDC. Backed by the Central Bank of Nigeria, Swap addresses the challenges individuals and businesses face when they need foreign currency (FX). With the solution, Flutterwave is positioned to redefine the Nigerian FX exchange scene. It’s currently available only in Nigeria and will be rolled out to other African markets later. Flutterwave also rebranded its cross-border remittance solution from $end to Send App to facilitate easier, faster, and more affordable money transfers from people in the diaspora to Africa. The updated solution now allows users in the US and Canada to send money to Africa and access new recipient countries, namely Egypt and Senegal, bringing its coverage to over 34 countries since the launch in 2021.

4. International Recognition: As Africa’s leading payments service provider and most valuable company, Flutterwave has recently gained wider recognition marked by milestones such as the acceptance of Flutterwave CEO Olugbenga ‘GB’ Agboola into the prestigious Wall Street Journal (WSJ) CEO Council. This followed after the inclusion of Flutterwave CFO Oneal Bhambani into the Wall Street Journal’s CFO Network and further cemented the company’s place as a globally recognized institution.

All these indicate that Flutterwave is a company that is on the rise, and we could not be any more proud to have the payment giant as the lead fintech sponsor for AFTSLusaka2023. 

The 10th Africa Fintech Summit promises to be an unforgettable event, bringing together over 600 industry decision-makers to discuss and debate emerging fintech trends, regulatory developments, and opportunities for collaboration. By partnering with Flutterwave, the summit aims to empower attendees to leverage the power of fintech to transform Africa’s financial landscape.

For more information about the 10th Africa Fintech Summit and to register for the event, please visit https://africafintechsummit.com/.

Distributed by African Media Agency in partnership with Africa Fintech Summit

About Africa Fintech Summit

About the Official Africa Tech Roadshow 

The Official Africa Tech Roadshow is a pioneering initiative aimed at fostering collaboration, innovation, and growth within the African technology landscape. By bringing together top industry conferences and events, the Roadshow provides a platform for thought leaders, entrepreneurs, and investors to exchange ideas, share insights, and forge partnerships that contribute to the advancement of the Pan-African technology industry. 

About Flutterwave 

Flutterwave is the leading payments technology company that enables businesses across the world to expand their operations in Africa and other emerging markets through a platform that enables local and cross-border transactions via one Application Programming Interface (API). Flutterwave has processed over 550M transactions in excess of USD $32B and serves more than one million businesses, including customers like Uber, Airpeace, Bamboo, Piggyvest, and others. The company’s key advantage is connecting businesses to various local and international payment types to enable them to expand globally. It also enables cross-border transactions from the diaspora to African countries via its SendApp product. Flutterwave processes payments via multiple payment modes, including local and international cards, mobile wallets, bank transfers, and Google Pay. The company has an infrastructure reach in 34 African countries. For more information on Flutterwave’s journey, please visit www.flutterwave.com. 

Media Contact

Charles Isidi

charles@africafintechsummit.com

Head of Marketing and Communications

Africa Fintech Summit.

The post Africa Fintech Summit Announces Flutterwave as Lead Fintech Sponsor for the 10th Anniversary Summit in Lusaka, Zambia. appeared first on African Media Agency.

Source : African Media Agency (AMA)

AMA, Business

FSD Africa @AFSIC 2023

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LONDON, United Kingdom, 6 September 2022, /African Media Agency/- This year FSD Africa joins AFSIC 2023 in celebrating their 10-year anniversary with a decade of impact in strengthening and greening financial markets in Africa. At AFSIC 2023, FSD Africa will host an afternoon of high-profile dialogue including sessions entitled Leveraging Carbon Markets for Africa’s Green Transition, Africa’s Green Future, Harnessing the Power of Finance for Nature and Novel Financing Structures to Unlock Africa’s Climate Agenda. 

FSD Africa, one of AFSIC 2023’s top sponsors, is focused on making finance work for Africa’s future. From its base in Nairobi, Kenya, its 35 financial sector experts work alongside partners to design and deliver programs in more than 30 countries across Africa with the aim of driving large-scale change in financial markets and accelerating the role of finance in Africa’s green economic growth. Panel content at AFSIC 2023 will feature excellent invited speakers who are leaders in their field, and they will take advantage of discussing the below hot topics ahead of the November 2023 COP28. 

Leveraging Carbon Markets for Africa’s Green Transition

According to some estimates, carbon offsets in the form of tradable carbon credits could generate billions of dollars for African countries by 2030 offering a major source of funding for the continent’s green economy. The recent auction in Nairobi, Kenya, of 2.2m carbon credits organized by a Saudi company was an indication of the huge demand and the opportunity that the voluntary carbon market presents for Africa and for investors interested in supporting Africa’s green transition. But there are many challenges that need to be overcome including concerns over regulation, market integrity, pricing, and transaction costs. 

In this fireside chat, leading entrepreneur James Mwangi, co-founder of Dalberg Advisors, founder of the Climate Action Platform for Africa and CEO of Africa Climate Ventures, a venture-builder focusing on carbon mitigation, capture and removal, discusses the opportunities for companies and investors and the challenges facing the market.

Africa’s Green Future: Unlocking Capital for Climate-Positive Growth

Africa has the potential to achieve both climate targets and economic prosperity through a climate-positive growth path. However, this requires substantial investment and creative solutions across the finance sector. From small climate-tech start-ups to large sustainable infrastructure projects, mobilizing capital is crucial to realizing this ambition.

In this session delivered in a TED talk style, experts from capital markets in Africa and globally will discuss how innovative approaches in finance can transform green growth and resilience on the continent. By unlocking capital and fostering collaboration, Africa can pave the way for a sustainable and prosperous future.  

Harnessing the Power of Finance for Nature 

This session will present current investable nature-positive opportunities for institutions. High-level speakers from both financial institutions and development organizations will discuss the role of governance and frameworks such as the TNFD (Taskforce on Nature-Related Financial Disclosures) as a catalyst for investment in nature. The session will also elicit debate and discussion on the role of finance in enabling nature conservation from the perspectives of the real economy for instance by presenting examples of where financing for nature has worked in Africa.

Novel Financing Structures to Unlock Africa’s Climate Agenda 

Africa faces significant challenges in financing its climate agenda with traditional funding models often insufficient for implementing ambitious climate projects across the continent. To overcome this, novel financing structures are emerging as solutions to unlock the necessary resources. These new financing approaches go beyond traditional grants and loans to encompass mechanisms such as climate bonds, green bonds, carbon exchanges, and alternative investment vehicles along with instruments that reduce private investment risk including guarantees, insurance, and blended capital, as well as public-private partnerships. 

This panel discussion brings together experts to discuss innovative financing approaches, identifying key success factors and the challenges and how they can be overcome. The session will also highlight the importance of collaboration and partnerships between various stakeholders in mobilizing resources and driving climate action in Africa.

Distributed by African Media Agency in partnership with AFSIC- Investing in Africa

About FSD Africa:

FSD Africa is a specialist development agency established in 2012 by the UK Government working to make finance work for Africa’s future. We work on the ground in over 30 African countries to mobilise “green plus” finance that will power economic and social development while delivering environmental gains and building Africa’s resilience. We work on policy and regulatory reform, capacity strengthening and improving financial infrastructure, and addressing systemic challenges in Africa’s financial markets to spark large-scale and long-term change.

FSD Africa is part of a family of 10 financial sector deepening, or FSD programmes, operating across sub- Saharan Africa, known as the FSD Network. Together, the network provides over £50m a year in financial support to high-potential financial market development programmes, and employs over 150 financial sector experts, based in local offices across Africa.

About AFSIC

AFSIC – Investing in Africa has become perhaps Africa’s most important annual investment event. The event is owned by Africa Events Limited. AFSIC is wholly focused on accelerating Africa’s economic emergence by matching investment opportunities in Africa transforming Africa’s business, trade and investment environment, growing Africa’s economy, reducing poverty, and increasing African incomes in all business sectors at a continental scale across all 54 countries in Africa.

African Investments Limited (www.africaninvestments.co), a sister company to Africa Events Limited, operates two multi award-winning digital platforms, the AFSIC African Investments Dashboard which matches investment opportunities to our global network of institutional investors and the Africa Business Opportunities Dashboard, which matches business, trade and investment opportunities across Africa covering all business products, sectors, countries in Africa and multiple business objectives. The digital platforms won the global 2022 Salesforce Partner Innovation Award for Financial Services.

Resources:

www.afsic.net

www.africaninvestments.co

Media contact:

Olivia Attenborough olivia@africaninvestments.co

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Source : African Media Agency (AMA)

AMA

Mali: Strengthening Financial Resilience to Recurrent Droughts

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Photo: Vincent Tremeau, World Bank

BAMAKO, Mali, July 28, 2023 -/African Media Agency (AMA)/-Recurrent droughts have altered the characteristics and composition of Mali’s vegetation. Pastoralists and agro-pastoralists that are typically found in the arid and semiarid areas in the north, where rainfall is less than 400 mm per year, are especially vulnerable to the impact of climate shocks. Considering Mali’s bouts of recurrent drought, floods, and locust invasions in recent years and their major economic and social impacts, the latest World Bank Economic Update on Mali provides keen insights into this climate shock.

The 2023 Economic Update for Mali notes that droughts are adversely affecting the livestock sector, one of the most important economic sectors in Mali and the region. Livestock farming accounts for 40% of the GDP of the primary sector and about 15% of national GDP, is a source of livelihood for 85% of farmers, and generates income for approximately 30% of the population (roughly six million persons). In addition, Mali has the second largest herd in the ECOWAS region after Nigeria with 60.1 million head of cattle in 2019.

According to the study, Mali experienced at least 40 major climate shocks between 1970 and 2020. For example, drought is estimated to have affected approximately 400,000 persons each year and led to $9.5 million in lost earnings from crops annually. Locust infestations in 1985-1988 and 2003-2005 destroyed millions of hectares of crops, but their impact on the populations was not measured.

In terms of negative impacts, the report notes that droughts can also lead to conflict or exacerbate existing ones whenever pastoralists move into regions such as cropping areas and rangeland being used by others. The rise in jihadist insurgencies since 2017 has increased ethnic tensions and violence, particularly in the central regions, and further heightened the vulnerability of pastoralists. The loss of productive assets and looting related to violence and security incidents have disrupted markets and household livelihoods in the affected areas.

To cope with the effects of  droughts, pastoralists have had to flee their drought-stricken villages in search of other water sources and pastures. The World Bank report also notes that while mobility is an effective strategy used by pastoralists to protect their assets, especially during droughts, it can induce conflicts with farmers in sedentary agricultural production systems. The report further states that in many cases, pastoralists often opt for the quick sale of their animals at low prices to buy food as their main coping strategy. This is a detrimental approach, as it depletes key assets that are difficult to recover once droughts have ended, thereby making households even more vulnerable to the next drought.

In response, the report calls for the establishment of instruments to protect such key sectors as pastoralism and agriculture, thus suggesting that it is possible to “strengthen [the country’s] financial resilience to drought.” The introduction of such disaster risk financing and insurance instruments could reduce the adverse socioeconomic impacts of climate shocks and provide timely and targeted financing in response to or in anticipation of a shock. According to the World Bank study, about 15% of Mali’s land area is ideally suited to index-based disaster risk financing and insurance (IBDRFI) for pastoralists, while an additional 10% could be deemed suitable after further analysis.

With respect to the country’s macroeconomic outlook, the report indicates that Mali achieved resilient GDP growth despite multiple shocks in 2022, including ECOWAS sanctions, food inflation, and parasite infestations affecting cotton production. An estimated GDP growth rate of 1.8% is supported by the recovery of food agriculture and the resilience of the gold and telecommunications sectors. Average annual inflation increased to 9.7% in 2022, driven primarily by rising food costs.

Distributed by African Media Agency (AMA) on behalf of The World Bank

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AMA, Business

MULTIGATE – The First Pan-African Financial Service To Become Swift Partner And Attain ISO 2000, 22301 & 27001

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Eghosa Nehikare, Co-Founder and CEO of Multigate

LONDON, 26 July 2023 -/African Media Agency (AMA)/- Multigate, a licensed Financial Services platform that provides access to a safe and secure treasury and liquidity management system, becomes the first pan-African financial services technology company to be certified by SWIFT as a Lite 2 Business Application Provider (L2BA). In addition, the company has also obtained the highest level of compliance through three certifications: ISO 20000, 22301 & 27001. The certifications and SWIFT announcement further reinforce Multigate’s commitment to putting safety and security at the core of their operation and service delivery to their clients and partners. 

In 2022, Multigate qualified as a SWIFT Compatible Application provider but has now obtained its L2BA certification. This further validates Multigate’s capacity to offer a globally recognised multi-bank connector solution that is standardised, safe, and secure for its clients and partners. This multi-bank connector platform enables their clients to aggregate all accounts for seamless transactions and avoids the complexities associated with managing multiple banking portals. This global certification also allows Multigate to connect seamlessly with banks across the SWIFT messaging network. 

“The qualification as a SWIFT L2BA certified provider further validates that our business application has met SWIFT’s requirements and standards to offer our clients a bank-agnostic solution by leveraging on SWIFT’S connectivity to thousands of financial institutions globally,” said Eghosa Nehikare, Co-Founder and CEO Multigate. “This partnership allows us to expand our services into other global markets as we now can partner with other financial services solution providers such as Fintechs, banks and existing ERP providers. It also assures our clients that our systems comply with SWIFT’s global messaging standard.” 

The three ISO certifications demonstrate Multigate’s significant commitment and excellence in the organisation’s operations. The attainment of ISO 20000 signifies that the company adheres to international best practices in service management. ISO 22301 certification highlights Multigate’s commitment to maintaining business continuity even in the face of unexpected disruptions. The ISO 27001 certification exemplifies Multigate’s rigorous approach to information security management systems. The certificates enhance the company’s reputation and instil trust in stakeholders, ensuring it operates at the highest level of professionalism and achieves its long-term objectives.

Eghosa Nehikare, Co-Founder and CEO of Multigate, also comments on the ISO Certification, “Typically, companies work on achieving one or two at a time, but Multigate’s decided to invest in all three. The certificates showcase our willingness to invest upfront in the quality of service, ensuring our products are reliable, and our dedication to service management, business continuity, and information security. These certifications underline the company’s commitment to delivering high-quality services, effectively managing risks, and safeguarding sensitive information.”

Founded in 2017, Multigate seeks to address the treasury and cash management needs of African-focused organisations trading regionally and globally and is also focused on enabling seamless processes for the consolidation of accounts for local or international payouts from any bank. Multigate services are powered by fully automated and customisable solutions that help improve business efficiency, increase revenue, and deliver value to clients. Furthermore, it guarantees our clients standardised, safe and secure access to over 10,800 global institutions worldwide.

Distributed by African Media Agency (AMA) on behalf of MultiGate.

Notes to Editors:

  • Founded in 2017, Multigate is a financial services technology company providing treasury and cashflow management services to corporates and cross-border payment services to financial institutions.
  • Our services are powered by fully automated and customizable solutions that help you improve business efficiency, increase revenue and deliver more value to your clients.
  • We operate in the United Kingdom, Canada, Sub-Saharan Africa, and the Middle East.
  • The company’s vision is to advance Africa’s economy by enabling seamless and instant transactions for Africa-based organizations trading regionally and globally.

Contact Details

Sophie Masipa, sophie@multigate.io, 

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Source : African Media Agency (AMA)

AMA, Environment

ECOWAS Signs 25 Grant Agreements worth USD 1.034 Million to Promote Youth employment in Agriculture and Food Sector in 15 Members States

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Ecowas Logo

LAGOS, Nigeria, July 25, 2023 -/African Media Agency (AMA)/-As part of the implementation of the ECOWAS Regional Strategy of Youth employment in Agro Sylvo-Pastoral and Halieutic Sector, the President of the ECOWAS Commission, H.E. Dr. Omar Alieu Touray signed grant agreements with 25 Centers among which 10 special Agriculture Training Centers; 6 National Agriculture Research Centers and 9 National Research Centers of Specialization on Agricultural Innovations to built youth capacity in the 15 member States (Benin, Burkina Faso, Cabo Verde, Côte d’Ivoire, The Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Sierra Leone, Senegal and Togo). The total budget of the grant agreements funded by the Community levy of Ecowas is $USD, 1,033,7991 representing about

$USD 41,359.64 per centre and for an average duration of 4 months aimed at training 3142 young persons among which 30% of Women in the Region.

The purpose of each grant is to establish the framework of collaboration between ECOWAS and the recipient Centers for the implementation of the Regional Strategy of Youth employment in Agro Sylvo-Pastoral and Halieutic Sector in West Africa with the general objective of building the human resource and environmentally friendly system that will sustain and increase agricultural productivity, youth employment and create resilient rural society. Selected following due consultation and assessment process, the 25 training centres represent the 15 Member States. Each state is involved in the process.

In supporting the centres through the agreements, ECOWAS seeks to improve the quality of training and the development of the centres capacities on topical issues related to agroecology and organic production, fishery and aquaculture, breeding and seeds selection and scaling of innovations and agribusiness. This is to increase the annual number of people trained in a. The total agriculture and food sector. The target of the Programme is 3142 young people including men and women trained by the end of 2023 in agriculture and food in the region.

More specifically, the objective of the support is to contribute to strengthening youth capacities in agribusiness (i) the promotion of agricultural innovations and good practices according to the environment, (ii) the increase in the number of young people trained, in particular rural people, and (iii) their networking in the long term.

Distributed by African Media Agency (AMA) on behalf of ECOWAS.

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Source : African Media Agency (AMA)

AMA

Bybit Raises the Bar: VIP Program Upgrades Set to Redefine the Trading Experience

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DUBAI, UNITED ARAB EMIRATES, 21 July 2023 -/African Media Agency (AMA)/- Bybit, the world’s third most visited crypto exchange, has unveiled its newly revamped VIP program. With a focus on enhancing user satisfaction and optimizing trading opportunities, the revamped VIP program introduces a range of new features and benefits.

Notable changes include revised fee rates for takers and makers across different VIP tiers. Bybit has lowered the taker fee rates while increasing the maker fee rates to beat rival crypto exchanges by offering unparalleled value to VIP and PRO clients. The updated fee structure ensures that traders enjoy a more lucrative and exciting trading environment.

Bybit has also expanded its PRO levels from three to five tiers. Current VIP users can now instantly upgrade to PRO Level when the proportion of their API transactions exceeds 20%. PRO users benefit from a more favorable maker rate, ensuring a competitive edge in their trading activities.

The level thresholds have also been adjusted to better reflect user activity, with PRO3 encompassing a transaction volume range of 500M to 1B, PRO4 spanning 1B to 2B, and PRO5 catering to volumes exceeding 2B.

As part of the VIP program update, the fee rates for these grades have been fine-tuned to further benefit traders. Precisely, the rates have been adjusted as follows: 0.035% reduced to 0.03% for PRO3, 0.0325% reduced to 0.0275% for PRO4, and 0.03% reduced to 0.025% for PRO5.

Finally, Bybit has meticulously fine-tuned option levels and rates, ensuring an optimized trading experience for options traders.

“Our unwavering commitment at Bybit lies in equipping traders worldwide with the means necessary to best navigate the waters of the contemporary crypto market,” said Ben Zhou, co-founder and CEO. “The revamped VIP Program is a substantial stride toward realizing this vision, promising key service improvements for our clientele.”

Distributed by African Media Agency (AMA) on behalf of Bybit.

More From Bybit

#Bybit / #BybitListens / #NextLevelOpportunities 

About Bybit

Bybit is a cryptocurrency exchange established in 2018 that offers a professional platform where crypto traders can find an ultra-fast matching engine, excellent customer service and multilingual community support. Bybit is a proud partner of Formula One’s reigning Constructors’ and Drivers’ champions, the Oracle Red Bull Racing team, esports teams NAVI, Astralis, Alliance, Made in Brazil (MIBR), and Oracle Red Bull Racing Esports. 

For more information please visit: https://www.bybit.com/

For updates, please follow: Bybit’s Communities and Social Media

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For media inquiries, please contact: press@bybit.com

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Source : African Media Agency (AMA)

AMA

Restoring Hope and Improving Livelihoods Among Poor Households in Malawi Through Social Cash Transfers

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STORY HIGHLIGHTS

  • Many households in Malawi are benefitting from social cash transfers, using it to pay school fees and improve livelihoods.
  • Nearly 140,000 households benefitted from a special COVID-19 Urban Cash Intervention (CUCI) to help cope with health and economic effects.
  • The Social Cash Transfers project has now embraced Climate Smart Public Works component for climate adaptation and restoration of Malawi’s degraded landscapes.

LILONGWE, Malawi, 29 June 2023 -/African Media Agency(AMA)/- On the morning of August 7, 2022, Medson Kayuni made his first trip beyond the hilly district of Rumphi to catch an overnight bus that took him on a 650km trip to Zomba where he would start his studies at the University of Malawi. As the bus drove down the hills toward Zomba, he was gripped with excitement and anticipation for this new lease on life.

This journey almost wasn’t taken because Medson was on the verge of dropping out of secondary school. His parents struggled to pay his tuition fees for years. The tuition at Mhuju Community Day Secondary School in Rumphi district was K15,000.00 ($13.00) every three months.

“My parents were happy when I made it to secondary school, but they were also visibly worried about the financial burden ahead. They were already struggling to feed us from one harvest season to the next,” recalls the 18-year-old, who has become an example of triumph over adversity.

The nighttime bus took him to Zomba City where he is studying for a degree in social science at the University of Malawi (Unima). He has become the proud first child in a family of three sons and three girls to step into the corridors of a university.

Cash transfers – Time to study

While struggling to pay for the fees, his parents were enrolled in the social cash transfer program financed by the World Bank through the Social Support for Resilient Livelihoods Project. The nationwide program protects the well-being of families in poverty, especially through support of education for their children. The project supports 147,000 households country-wide, including 4,600 beneficiaries from Rumphi district.

Every month, Medson’s family receives social cash transfers amounting to MK11,500.00 (nearly $10.00) which help protect vulnerable households from poverty, hunger, and inequality. With this amount, they have been able to pay for Medson’s school fees and school supplies and meet other household needs.

As a result of this support, Medson stopped having to escort his parents to low-paying piecework in well-off neighbors’ fields. He now had time to study and do school assignments.

University life and aspirations

“Opon arrival at Unima, I closed my eyes in joy and disbelief because this was my first trip beyond the Northern Region. I then asked myself if this was real,” recounts Medson.

Without the monthly cash transfers, he would have dropped out of secondary school.

“Back home, life wasn’t easy,” he says. “I lacked pens, notebooks, school uniforms, and other basics. My parents spent months working in neighbors’ fields, leaving our own farm idle.”

Medson aspires to obtain a statistical job.

“I want to change my life, together with the life of my family and village so every child can get inspired and go to school and dare to dream big,” he says while smiling.

Equally excited and optimistic are his parents, Fanny Mushani, 46, and Augustine Kayuni, 52, who have also used the cash transfers to pay school fees for other children and bought a pig which has raised three piglets. They also rent out a boar in exchange for one piglet. They sell the young pigs for “supplementary cash” too.

Just before Medson went to university, they sold two pigs, one at MK55,000 ($46.00) and the bigger one at MK60,000 ($50). The money was used to buy a bag, a blanket, a mobile phone, and soap for Medson, and pay for bus fare and his rent. The family plans to buy iron sheets to improve their home, but not before Medson gets his first degree.

The Social Support for Resilient Livelihoods Project

The seven-year Social Support for Resilient Livelihoods Project (2020-2027) is designed to improve resilience and build human capital among poor and vulnerable populations through social cash transfers (SCTs), livelihoods support, Enhanced Climate Smart Public Works, as well as an option for scalable financing for SCTs reach more disaster-affected households in times of weather-related disasters. At full scale, the project is expected to expand support from the current 490,984 beneficiary households to 778,000.

“Providing vulnerable households with modest amounts of cash at a time when they are making difficult decisions amidst recurring climatic and economic shocks, protects household welfare, helps them build human capital and avoid negative coping mechanisms,” says Chipo Msowoya, Senior Social Protection Specialist and team lead for the project.

The project has become a major tool for addressing multiple and overlapping crises in Malawi. In 2021, nearly 140,000 households benefitted from the project’s special COVID-19 Urban Cash Intervention (CUCI) designed to help the urban poor population cope with the health and economic effects of the pandemic. The intervention was implemented in the poorest hotspots of four cities in Malawi.

In 2023, approximately 214,000 households were provided with cash transfers in response to acute food insecurity caused by droughts across 20 districts. Starting in July 2023, the project will support households that have been affected by Cyclone Freddy as part of a recovery plan.

Distributed by African Media Agency (AMA) on behalf of The World Bank

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Source : African Media Agency (AMA)

AMA, Business

Key Highlights on the Central African Republic Economic Update: Focus on Fuel Subsidies

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© World Bank Office, Bangui.

STORY HIGHLIGHTS

  • The Central African Republic’s (CAR) economy experienced a standstill in 2022 due to floods and fuel shortages.
  • The country faced high inflationary pressures and acute levels of food insecurity, with nearly half the population affected.
  • Removing fuel subsidies, excluding kerosene, would have a limited one-time effect on prices but would require a strong mitigation package with a focus on protecting the most vulnerable.

BANGUI, Central African Republic, 27 June 2023 -/African Media Agency(AMA)/-The World Bank issued today a new edition of the Economic Update report for the CAR. The report, titled Central African Republic Economic Update: Reforming Fossil fuel subsidies.

Here are some highlights from the report:

1/ CAR’s economy has stalled in 2022 due to floods and fuel shortages.

After two consecutive years of near stagnation, CAR’s economy experienced a complete standstill in 2022. Floods directly affected 12 out of the country’s 17 prefectures in the second half of 2022. Physical damages were significant, including in housing and transport infrastructure as well as crops. In addition, pre-existing tensions between the government and fuel importers led to limited fuel supply on the formal market and contributed to the paralysis of the economy, especially in the most energy-dependent sectors. The development of a black market prevented a complete collapse of the economy, but low-income households suffered severe hardship due to higher energy prices on the informal market. As a result, real GDP growth settled at zero percent in 2022, much below the average of CEMAC, Sub-Saharan Africa (SSA) and countries affected by fragility conflict and violence.             

In 2022, major sectors of activity (e.g., forestry, extractive sector) were severely impacted by climatic shocks and fuel shortages.

Source: World Bank staff estimates using MPO and WDI data.

2/ GDP Growth could see a rebound in 2023-2024

Provided that the fuel supply in the domestic market improves and the security gains continue, real GDP growth is projected at 3.6% over the period 2023-25. This outlook is driven by anticipated higher international timber prices due to a rebound of global demand. Inflation is expected to stay above the 3% regional convergence criterion in 2023 mostly due to price pressures from imported food and energy, before falling gradually over the medium term.

3/ More than 3.5 million people continue to live in extreme poverty

Poverty is projected to remain high with 71% of the population living with less than $1.9 a day in 2023–25, and food insecurity and limited access to basic public services, especially in remote areas, will remain major concerns. Bold reforms are needed to boost the economy and improve living standards by protecting people through social protection; attracting private investments and promoting trade development; improving fiscal transparency; and attracting

4/Reforming fuel subsidies

The report highlights that fuel subsidies not only represent a significant fiscal burden, but also favor wealthier households and introduce market distortions, driving fuel shortages in the country. In 2022, the sharp rise in international oil prices led to an increase in fuel subsidies, estimated to represent 0.5% of GDP or almost 6% of total domestic revenues in 2022. While fuel subsidies aim to protect consumers’ purchasing power, the analysis shows that it benefits mostly the richest segments of the population, especially groups living in urban areas. It also highlights that a fuel subsidy reform requires a strong mitigation package aimed at providing targeted support to the key affected stakeholders, particularly focusing on minimizing negative externalities and protecting the most vulnerable. Such package would include measures to reinforce social safety nets, increase transparency of public financial management, increase social spending, support strategically affected sectors such as transport, and increase productive structural public investments.

Cost of freezing fuel prices in CEMAC and peer Sub-Saharan African countries (in percent of GDP), 2022.

Sources: CAR’s authorities and World Bank staff estimates.

Distributed by African Media Agency (AMA) on behalf of The World Bank

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Burundi: Receiving a Cow Can Transform Someone’s Life

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Mrs. Christine feeding her cows. Photo: Richard Giramahoro/PRDAIGL

Gitega, BURUNDI, 16 May 2023-/African Media Agency(AMA)/—The Great Lakes Regional Integrated Agriculture Development Project (PRDAIGL) has transformed the life of 56-year-old Christine Nyabenda, a widow from Bujumbura, Burundi. Previously living in deplorable conditions, Christine received support through PRDAIGL, which included livestock, technical assistance, and financial support, enabling her to develop a successful dairy business, employing four people and improving her family’s nutrition. Despite initial challenges, the World Bank-funded PRDAIGL has managed to significantly impact the agricultural sector, distributing improved breed cows, providing training, and supporting over 38,000 beneficiaries, 35% of whom were women.

“Before the Great Lakes Regional Integrated Agriculture Development Project (PRDAIGL), I was living in deplorable conditions. My family and I had few means of subsistence, and we were facing a high level of malnutrition. Six of my children had to drop out of school at an early age because our family was lacking resources,” said 56-year-old Christine Nyabenda.

Christine lives in Maramvya in the province of Bujumbura. She has been a widow for 20 years and has received support from PRDAIGL. This support is part of the project’s component on the development of a dairy value chain and the re-population of livestock through the distribution of cows as well as financial and technical support for the establishment of stables.

Having served milk to her children on a regular basis, Christine sold the milk that wasn’t consumed and was able to purchase a second cow and build a store for marketing dairy products. She now employs four people, two of whom take care of the improved breed of cows in her stable while the other two are in charge of marketing in the new store and in charge of the manufacture of costras, a type of brick used in construction that makes ventilation possible.

Christine’s agricultural production has greatly increased owing to the use of manure: “Before, I used to sow corn in my field without putting manure on it. Now, with manure, the harvest has increased threefold, from one to three tons, and I can sell part of the corn that’s not consumed,” In addition, multidimensional support from PRDAIGL has allowed me to learn good animal husbandry practices, in particular the daily monitoring of animal health, good cattle feeding, and hygiene.”

This support is provided through groups of farmers called “Farmer Field Schools” (FFS). One of these FFSs, with 35 members, is currently headed by Mrs. Christine.

PRDAIGL, a regional World Bank-financed project of $75 million in IDA funds for Burundi, started in November 2017 and aims to increase agricultural productivity and marketing in the areas targeted by the project. It also aims to strengthen regional integration in the agricultural sector.

The Great Lakes Region (GLR) includes Burundi, the Democratic Republic of the Congo (DRC), Rwanda, Tanzania, and Uganda. These countries share many agro-ecological characteristics and have long been interdependent. Their territory covers a vast central African corridor stretching from Kinshasa in the west to Dar-es-Salaam in the east.

The region has, however, experienced persistent civil strife for decades, with countless victims.

Good results despite difficult beginnings

A few weeks after the launch of PRDAIGL in January 2018, Burundi declared an outbreak of the Small Ruminant Pest (PPR) viral disease. The import of bovine animals was temporarily suspended. In August 2019, this measure was lifted, having delayed the import of the 3,000 bovine animals planned for the project by two years. While PRDAIGL was trying to make up for the delay, it once again faced two exogenous shocks: the COVID-19 pandemic in 2020 followed by foot-and-mouth disease in 2021 in Uganda in the district from where the animals were to be imported.

Despite these challenges, PRDAIGL has managed to achieve several objectives. On the cattle value chain: 3,150 cows of an improved breed were distributed, 11,829,000 Bana-grass cuttings, 150 tons of meal, and 18,000 bags of cement plus pumps, syringes, and thermometers. Trainings were held for the multidimensional support of bovine beneficiaries. The number of beneficiaries reached 38,120 of which 35% were women.

PRDAIGL has even gone beyond the objectives initially set for it by taking into account Law No. 1/21 of 2018 on zero-grazing and the prohibition of animal roaming that compels farmers to keep their animals in permanent stalling. Through applied research, and in collaboration with the International Livestock Research Institute (ILRI), PRDAIGL has been able to import and test nine new varieties of improved fodder crops, some of which are being propagated by the Burundi Institute of Agronomic Sciences (ISABU) and will soon be distributed to beneficiaries of the dairy value chain.

These activities are very satisfactory, with nearly 23,000 beneficiaries supported, as well as: (i) 5,775 kg of iron-rich bean seeds provided to 1,650 households; (ii) 2,310,000 orange-fleshed sweet potato cuttings distributed to 1,650 households; (iii) cooking demonstration activities carried out in several provinces; and (iv) upgrading bio-fortified crops, such as the sweet potatoes and fortified beans, through practical training on how to preserve these high value, high nutritional content foods for longer periods of time.

Mrs. Christine in her shop, Photo: Richard Giramahoro/PRDAIGL

Project Sustainability

Beyond the monetary and nutritional improvements for her and her family, Christine Nyabenda explains that these productive assets guarantee her some insurance for her old age because she has no pension. The project provides her with social recognition in her neighborhood; many people come to seek her advice on modern livestock farming.

PRDAIGL has provided institutional support to the National Center for Artificial Insemination and Genetic Improvement, which has a state-owned farm with bulls on it and a seed production laboratory, by equipping it with a liquid nitrogen liquefier, which allows for the artificial insemination of cattle and the sustainability of PRDAIGL’s activities in the solidarity chain.

To alleviate food insecurity, PRDAIGL has begun to strengthen a dimension on Nutrition Sensitive Agriculture in order to have an impact on the four pillars of food security: availability, access, use, and stability.

Only 14.8% of women in Burundi consume food with adequate dietary diversity, according to  UNICEF’s SMART 2022 report.  27.6% of children under the age of five are underweight, 7.8% severely.

Distributed by African Media Agency (AMA) on behalf of The World Bank

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Mozambique Economic Update: Why Services Matter for Growth and Jobs

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Maputo, MOZAMBIQUE, 13 March 2023-/African Media Agency(AMA)/Mozambique’s economic recovery is picking up steam, with growth reaching 4.1% in 2022, despite global economic headwinds marked by rising fuel and food prices.

The medium-term economic outlook is positive, with growth expected to accelerate to 6% over 2023-2025, driven by continued recovery in services, increased liquefied natural gas production, and high commodity prices. However, downside risks linked to climate shocks, security risks, and food and fuel price pressures could lower medium-term GDP growth to 4.5%.

The 9th edition of the World Bank’s Mozambique Economic Update (MEU) highlights the role of services in accelerating economic growth and job creation. The report calls for a shift from reliance on low-productivity agriculture and extractives to a development model based on diversified sources of growth, productivity, and jobs. It further outlines reform options to strengthen the role of the services sector as a backbone of the economy.

“Looking ahead, sustained, broad-based and inclusive growth will require raising productivity in services and stimulating the formalization of informal firms while strengthening linkages between sectors,” said Idah Pswarayi–Riddihough, World Bank Country Director for Mozambique, Madagascar, Mauritius, Comoros, and Seychelles. “Services could be an avenue toward inclusive growth and accelerated job creation,” she added.

Mozambique’s strong growth performance in recent decades has helped reduce poverty. However, growth has not been inclusive enough. This is partly due to heavy reliance on the extractive industry, with limited linkages to the broader economy, and low productivity in the agricultural sector—the primary source of livelihood for the poor.

“With over half a million people expected to enter the labor force each year, creating more and better jobs is an urgent challenge for Mozambique,” said Fiseha Haile, World Bank Senior Economist for Mozambique.

The Government of Mozambique is taking important steps to support economic recovery by stimulating private sector growth, including approving a package of economic acceleration measures in August 2022. The plan comes at an opportune moment, as the economy is recovering from a protracted slowdown following consecutive shocks, including hidden debts, cyclones, insurgency, and the COVID-19 pandemic.

The economic update points to the need for reforms that can strengthen the role of the private sector and promote access to finance by lowering the cost of bank credit, as well as offering credit guarantees to small enterprises. It also further recognizes the need to upgrade services into more sophisticated activities—such as ICT, finance, and professional and business services–for the sector to become an engine of inclusive growth and employment creation. 

Distributed by African Media Agency (AMA) on behalf of The World Bank

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