African Export-Import Bank (Afreximbank) and the Djibouti Chamber of Commerce (CCD) conducted a three-day business roadshow in the country, to promote the Bank’s programmes, facilities, and initiatives to stakeholders, including government agencies, parastatals, financial institutions and the businesses community among others.
The roadshow consisted of a one-day seminar and two days bilateral meetings with key stakeholders across sectors.
Under the topic “unlocking Djibouti’s potential as a gateway to regional trade”, the seminar had in attendance, key government leaders, policy makers, and senior leaders from the financial, banking, private and corporate sectors.
Youssouf Dawaleh, President of the Djibouti Chamber of Commerce, highlighted the strategic alignment between the roadshow and the CCD’s mission, which is to inform and raise awareness of the national economic fabric and more particularly private companies on market opportunities, financing and other support available.
He said “Raising funds and financing remains a continent-wide problem and our country is no exception to this situation. This results in limited growth for businesses and in particular SMEs”.
Amr Kamel, Afreximbank‘s Executive Vice President in charge of Business Development and Corporate Banking highlighted that Djibouti remains an important hub for African trade and the gateway of Horn of Africa and East Africa. To ensure that the business community benefited from the roadshow, Afreximbank highlighted various products, programmes, and initiatives such as the Intra African Trade initiative, Project Finance, Industrialisation and Export Development programme, Afreximbank Trade Facilitation Programme (AFTRAF), Afreximbank International Payment Services (AfPAY), the MANSA, Pan-African Payments and Settlement System (PAPSS), among others.
“We are happy to announce our commitment to working with Djiboutian commercial and development or investment banks to make financing accessible to the public and private sectors and small and medium-sized enterprises to finance trade and project deals in Djibouti. The Bank is keen to collaborate with Djibouti, other member countries and key partners to find solutions to these challenges. For instance, the recently launched Pan-African Payments and Settlement System (PAPSS) will enable a buyer in Ethiopia to pay for goods supplied in Ethiopian Birr and a Djiboutian seller to receive Djiboutian Francs, while the two respective central banks settle the net position of the trades between themselves,” Afreximbank‘s Executive Vice President in Charge of Business Development & Corporate Banking, commented:
Bilateral meetings were held with President Ismail Omar Guelleh, Ilyas Moussa Dawaleh, Minister of Economy and Finance; Yonis Ali Guedi, Minister of Energy and Natural Resources; Mohamed Warsama Dirieh, Minister of Trade and Tourism; Ahmed Osman Ali, Governor of the Central Bank of Djibouti; Aboubakr Omar Hadi, Chairman of Great Horn Investment Holdings and Mohamed Sikieh Kayad, Chairman of the Djibouti Sovereign Wealth Fund.
The Bank’s programmes for the development of industrial parks, export processing zones, special economic zones, Agri-processing projects, light manufacturing projects, among others, were discussed. The Afreximbank delegation also presented the Bank’s interventions to foster trade enabling infrastructure such as airports, seaports, terminals, railways, telecommunication infrastructure, power projects and renewables (wind and solar) as well as large manufacturing and heavy industries including oil and gas production and processing plants, liquefied natural gas plants, petrochemicals, and cement.
The delegation also met with the top executives of Air Djibouti, Société Internationale des Hydro carbures de Djibouti (SIHD), the FSD as well as several Djiboutian banks.
The Bank’s team also had the opportunity to visit the Damerjog Industrial Development Free Trade Zone and was received by Chairman Mr. AbouBakr Hadi as part of the continued collaboration with Djibouti Ports and Freezone Authorities (DPFZA). Discussions were on furthering cooperation in trade & projects finance.
CCD, Afreximbank conducts roadshow for the business community
Nib, Jamii.one launches micro life insurance coverage
Nib Insurance Company teamed up with Danish based social enterprise, Jamii.one to provide massive micro life insurance coverage.
The two companies have disclosed that the new initiative will make beneficiary those who are isolated for insurance coverage.
On the memorandum of understanding signing ceremony held on Thursday March 10, Nib officials said that the individuals who come up as group through traditional social relief scheme, edirs, will get life insurance coverage, which is the poorest insurance service provided in Ethiopia unlike other countries experience.
As per the new scheme, two types of compensation services is provided for those who save premium on daily bases through edirs linked with Jamii.one platform.
To get a compensation of 100,000 birr edir members will have to save one birr on daily basis, while if members save two birr per day they will be covered by 200,000 birr.
Mekdes Letta, Head of Life Insurance Division of Nib Insurance, said that under the group micro life insurance coverage scheme edirs that at least they should have 35 members and they will be be included on the scheme, “as we know edirs have on average have 100 members but the number we put as minimum members is just to fulfill some sort of criteria.”
“Initially the scheme will be introduced in Addis Ababa but will be expanded throughout the country,” Mekdes told Capital.
“Unlike conventional life insurance coverage on the new micro scheme there is no any preconditions or personal conditions will not be considered,” she added.
She said the initiative gives the opportunity to expand the life insurance segment with very small premium amount.
As per the agreement Jamii.one technological platform will create a linkage between edirs and the insurer.
Charlotte Roenje, CEO and Co-founder of Jamii.one, about her company said that it is a Danish company, but it was born and raised in Ethiopia, “so all the majority of our users are here. We have developed the technology in very close collaboration with more than 1,000 Ethiopians. Myself, my technical co-founder have sat in groups to develop a technology that would reflect how communities have their finances together, like, saving up together, and having insurance.”
“We have developed a genuine app, which is freely available. Anyone can download it and use it as a group. Register all edir members; register your savings, or contributions. And then, our ambition is to use that digital registry of people to allow them to have new products,” she said by adding “Jamii.one is a social enterprise. It is a company for profit, but it has a very strong social focus. We didn’t create this company to become very rich. We would have done something else if we wanted to be rich.”
She explained the edir institution is a very rich cultural institution, while it is also going into a new time and age, and whether young generation is digital and they have more offers.
“So, we believe by creating product specific for the edir groups we can strengthen what it is that they are giving to their members, give them more opportunity, starting with life and but the ambition from Nib Insurance and ourselves is beyond that and developing products that will safeguard the livelihoods of the communities of edirs,” Roenje told Capital.
The company is expanding heavily right now. There are more than 100,000 people in Ethiopia registered in the Janmii.one platform and more than 17,000 new people registering every month.
Tigist Bezu, Country Representative of Janmii.one said over three thousand edirs as a group have registered and use Janmii.one app that provided services in different local languages.
She said that in the past years the company was engaged on capacity building for different self-help associations to modernize their activities through digital scheme.
About Nib, Roenje said that the company specialized in micro insurance, and life insurance and so they are offering now their product of micro life insurance, group insurance to the edirs. “This is very difficult to do traditionally, because who is in the group? How can, you know? But now in the Jamii.one you have a registry that can show members; so it is now possible for Nib Insurance to service the segment.”
Regarding the interest of edirs about the new scheme Roenje said that there is a lot of interest, “it was actually not our idea. It was the idea of edir members. They said to us ‘can you bring us life Insurance’ and we said we will try and we are succeeding. From here we are learning we need guidance from local community and government. We need guidance to build and take this from a piloting and a test into something that can scale.”
Another ‘Scramble for Africa’ by foreign powers: Report
Newly launched study shows that there is another scramble for Africa by the international media, but this time it is about who can best profit from the continent’s business opportunities.
And the charge is being led by foreign powers, with 70 percent of coverage about business in Africa referencing China, the USA, Russia, France, and the UK, according to the study ‘The Business in Africa Narrative Report’ that conducted in collaboration between Africa No Filter and AKAS Consulting.
The analysis on the project covers analysis of 750 million stories published between 2017 and 2021 on more than 6,000 African news sites and 183,000 sites outside the continent.
It stated that 70 percent of coverage about business in Africa references foreign powers including China, the USA, Russia, France, and the UK, while corruption referenced in nearly 10 percent of stories on business in Africa and less than one percent of the coverage on business and Africa referenced the African Continental Free Trade Agreement (AfCFTA).
The report shows that the keywords, stories, frames, and narratives associated with business on the continent are dangerously distorted. There is an overemphasis on the role of governments, foreign powers, and larger African states alongside an under appreciation of the role of young people, women, entrepreneurs, creative businesses, smaller successful African states, and Africa’s future potential.
In addition to the dominance of foreign powers in business stories featured in international media, the report highlighted a number of other key frames dominating dangerous distortions played out in stories, and the underrepresentation of businesses across the continent, including more negative coverage, and Africa is Nigeria and South Africa.
International reporting on Africa is also observed on silencing creativity and amplifying technology, and youth and women are underrepresented,
It said that international media are more likely to have a negative tone, “African media are twice as likely to reference corruption in their coverage of business in Africa compared to international media, with corruption featuring in 10 percent of African media stories.”
According to the study nearly 50 percent of articles in global media outlets reference South Africa or Nigeria, crowding out business stars like Mauritius, Namibia, and the Seychelles. Mauritius is the highest-ranking African country in the World Economic Forum’s Global Competitiveness Index.
“Nollywood is the world’s second-largest film industry, and music genres like AfroBeats and AmaPiano are influencing pop culture globally, yet creative businesses were only featured in 1 percent of all business news articles across African and global media. Additionally, while 22 percent of Africa’s working-age population started new ventures between 2011 and 2016, the highest rate of any region globally, African start-ups received declined coverage,” the report adds.
Africa also has the youngest population globally; however, youth and women are underrepresented in business stories. “In fact, online news coverage of young people has declined between 2017 and 2021.”
In addition, stories about African youth globally are often framed through negative stereotypes, invoking images of inactivity, violence, and crime.
It showed that 54 percent of business news in 2021 was framed through government action and policies. Additionally, African media focused more on themes related to government than on those related to entrepreneurship. Yet, African countries make up six of the top 10 countries whose populations were most likely to search for the topic of entrepreneurship in 2021.
“The AfCFTA is the largest free trade area in the world by the number of countries taking part, yet it makes up less than 1 percent of business news and analysis while mentions of foreign direct investment fell from 3.2 percent in 2017 to an even lower 1.9 percent of coverage in 2021,” the report said.
Moky Makura, Executive Director at Africa No Filter, said “we wanted to understand why Africa is seen as a high-risk business destination and why the cost of money is at a premium. The report gives us an insight into why. It shows that business opportunities on the continent are both underrepresented and misrepresented, and now that we know this, we can work on educating the media and changing the narrative around business in Africa.”
Richard Addy, report author and co-founder of award-winning international audience strategy consultancy, AKAS, added “this ground-breaking report offers a detailed data analysis on the narrative around business in Africa. This rigorous research is important because narratives, frames and stories are the lenses through which we perceive and experience Africa. They inform beliefs, behavior and ultimately dictate policy.”
The Business in Africa Narrative Report is the latest research project by narrative-change organization Africa No Filter and forms part of their work to understand and shift harmful and stereotypical narratives about Africa.
Africa No Filter is a not-for profit international organisation that supports the development of nuanced and contemporary stories that shift stereotypical and harmful narratives within and about, Africa. AKAS is an award-winning international audience strategy consultancy.
EIMA 2022, a global experience
After the success of the 2021 edition, EIMA International is now back on track for the 2022 edition, scheduled in Bologna from November 9 to 13. This year’s edition, the 45th in the history of the international exhibition of agricultural machinery, returns the exhibition to its usual schedule, in November of even-numbered years, marking the restoration of the biennial rhythm that will continue with the 2024 edition. Expectations are high for this event, which was presented at Fieragricola in Verona by FederUnacoma, the association of agricultural machinery manufacturers, the direct organiser of this exhibition that ranks among the world’s top events in terms of number of exhibitors, number of visitors, level of internationality and quality of technologies on show. To date, 835 manufacturers have already formally applied to take part in the event (585 Italian and 250 foreign), with a demand for space that has already reached 80,000 square metres.
“This is a brilliant start,” – explained Simona Rapastella, Director General of FederUnacoma, at the conference – “which leads us to expect a final number of exhibitors and a committed surface area in line with the results recorded in the pre-pandemic EIMA editions.”
“Never like in recent years, conditioned by the health situation and the limitations imposed on public events has the trade fair sector questioned itself on its own future and on the possibility that exhibitors and visitors may have developed new needs and new expectations, and for this reason we have subjected EIMA to capillary monitoring, trying to highlight its strengths and possible critical points,” Rapastella said.
FederUnacoma’s monitoring data, combined with those of specialised companies such as GRS or official bodies such as UFI (International Exhibition Union), confirm a trend towards a reduction in trade fair participation to the benefit of a few events that have a strong international character and act as catalysts for the sector. Field surveys also show a growing expectation for the level of services, especially for operators who see the trade fair as a specific place for business relations. “These are elements that are already peculiar to EIMA International,” noted Rapastella, “which we have tried to strengthen with the confirmation of the extensive ‘business-to-business’ programme for foreign delegations organised in collaboration with ICE, with the incoming programme called ‘Special Guest’ which provides facilities and benefits for foreign business operators, and with a special initiative involving the diplomatic network”.
Tractors: World market at a record pace
After posting strong growth in 2020, the tractor market will see further increases in all major countries in 2021. There are over 900,000 new registrations in India, 318,000 in the USA, and 180,000 in Europe. Italian exports grew by 20%, and national production is estimated at 13.7 billion Euros. The forecasts for 2022 formulated at the beginning of the year are positive, but the Russian-Ukrainian military crisis is changing the scenario, and threatens to heavily influence the global economy.
The global agricultural machinery market continues its positive phase. Tractor sales – which in 2020, at the height of the pandemic crisis, had already recorded a global increase of 7.7% to 2,200,000 units – recorded further increases in 2021 in all the main countries.
The United States closed the year – according to data published by the national manufacturers’ association AEM – with a total of 318,000 tractors registered, up more than 10% compared to 288,000 the previous year, while the Indian market consolidated its supremacy in terms of units sold by exceeding 900,000, an increase of 13%. High levels should have been reached by the Chinese market, for which the final 2021 figures are not yet available but which already recorded a record increase in 2020 (+47% against 470,000 units sold). The European market is also in the black, with an average increase of 16.6%, according to data released by the European Manufacturers’ Committee CEMA, with almost 180 thousand units registered compared to 154 thousand the previous year. France and Germany remained the largest markets in the European landscape, with 36 thousand and 35 thousand units respectively, with increases of 9.2% and 8.8%. Spain accounted for 11,700 units (+9.3%), the United Kingdom for 14,000 (+18%), while Poland stood out, recording an increase of almost 43%, with 20,200 machines registered, driven by the financing of the agricultural development plans operating in the country. Among the emerging markets, Turkey, recovering after the economic crisis of the last few years, registered 64 thousand units, up 33% compared to the previous year. Italy closed the year with an increase in tractors well above the European average of 36.6% or 24,400 units.
Agricultural machinery: high demand, production at risk
During 2022, the Italian agricultural machinery market should maintain good levels, also due to the presence of incentives and financing. On the industrial front, however, the cost of raw materials and energy is likely to curb production and substantially increase machinery prices.
Demand for agricultural machinery in Italy is expected to remain high in 2022, but the cost of industrial materials is threatening the production capacity of manufacturers. The scenario was described this afternoon in Verona, at the press conference of FederUnacoma, the association of manufacturers belonging to Confindustria.
“The agricultural machinery and equipment market can take advantage of multiple and cumulative public incentives,” said FederUnacoma president Alessandro Malavolti at the conference “and this should encourage investment by leading companies. In the same year, tax credits for 4.0, funding for RDPs, the Sabatini Law, the ISI-Inail call for tenders and the NRRP will be available. The 4.0 will be financed for 2022 according to the same parameters as last year,” explained Malavolti.
Green machinery: 14% market growth in 2021
All the main product types closed with a profit. Significant increases were recorded for trimmers (+21.6%), chainsaws (+15.1%) and lawn mowers (+12.9%). Sprayers, which are also used for sanitisation during the most critical moments of the pandemic emergency, went against the trend, down 33.8%. A total of 1,660,148 units were sold in 2021, including self-propelled machines, powered equipment and hand tools.
Despite a slight downturn in the last three months of the year (-4.9%), the market for gardening and landscaping machinery and equipment ended 2021 with a significant increase in sales compared to the previous year.
Figures compiled by the Italian association of Comagarden manufacturers (FederUnacoma) and the Morgan statistics group indicate a total of 1,660,148 units sold by the end of the year (from self-propelled machines to powered equipment and hand tools). In percentage terms, this sales volume marks an increase of no less than 14 percentage points over 2020. All the main types of products surveyed by the Morgan Group are showing a positive trend, starting with trimmers, which are up 21.6%, with over 105,000 units sold. Double-digit increases were also recorded for chainsaws (+15.1% to 430 thousand units) and lawn mowers (+12.9% to approximately 325 thousand units), while smaller increases were recorded for brushcutters (+6.1% to 304 thousand units).
