Trade and Development Bank (TDB) is awarded Global Trade Review’s (GTR) Leaders in Trade Awards as ‘Best Trade Finance Bank in Kenya’ and ‘Best Trade Finance Bank in Ethiopia’ for the year 2020.
Nairobi being TDB’s operational hub, the ‘Best Trade Finance Bank in Kenya’ award recognizes not only the Bank’s work in Kenya, but also the efforts it has been deploying across its various member states. Similarly, the ‘Best Trade Finance Bank in Ethiopia’ award is a tribute to TDB’s far-reaching bespoke trade finance solutions which have enabled the country to access forex liquidity, enhance its productivity levels in agriculture, support employment, ensure food security and more.
Michael Awori, TDB’s Chief Operating Officer, commented that “over the past few years, we have enriched our trade finance strategy, diversified our suite of products and services, and sharpened our response to the needs of the region we serve. We have no doubt made a pronounced mark in addressing the trade finance gap in the region, mitigating critical fuel shortages, securing the sourcing of strategic commodities, facilitating greater intra and inter-Africa trade and regional integration, and ultimately, moving the sustainable economic development needle in the region”.
TDB wins 2 GTR leaders in Trade Awards
India’s response to pandemic Using crisis as an opportunity
By Manish Chand
A crisis can trigger ruin and catastrophe, but it also sometimes brings out the best in people and nations. More than any other country in the world, India has shown vividly how to creatively and resolutely harness challenges thrown by the ongoing coronavirus crisis to script its own resurgence as well as contribute to global recovery. Amid apocalyptic death, destruction and dislocation unleashed by a rampaging pandemic, India, the world’s fifth largest economy and an emerging global power, has managed to keep its recovery rate high as well as keep the fatality rate less than 2% – one of the lowest in the world. This has been achieved through multi-pronged efforts and initiatives by the Indian government, including a far-sighted initiative to order a nation-wide lockdown in the early stage of the pandemic when there were barely 600 cases in the country.
World is one Family
For a country of over 1.3 billion people, managing an epidemic that requires social distancing is an incredibly onerous task, but on balance, India has not only taken care of its own people infected by the virus, but has also complemented domestic efforts with timely international assistance to many countries. This trait of empathy and solidarity with friends and partners in the world is deeply embedded in India’s civilisational ethos of ‘Vasudhaiva Kutumbakam” and reflects the country’s rising reputation as a global care-giver and first responder in crises, in the exalted spirit of “the world is one family”. India has been prompt to provide essential drugs and medical items to over 150 countries. This medical assistance was provided quietly, without any fanfare, earning India heartfelt gratitude and admiration of countries, big and small. From US President Donald Trump to Ugandan President Yoweri Museveni, leaders around the world have appreciated India’s timely assistance against a merciless pandemic.
First Responder
The pandemic-related assistance also reaffirmed India’s credentials as the first responder to humanitarian crises and a net security provider in the region. In a journey spanning over 7,500 nautical miles over 55 days, Indian Naval Ship Kesari travelled to the Maldives, Mauritius, Madagascar, Comoros and Seychelles and delivered assistance to India’s maritime neighbours. A part of Mission SAGAR, which crystalizes Prime Minister Modi’s vision of Security and Growth for All in the Region (SAGAR),India’s humanitarian assistance included supplies of essential food items, medicines, Ayurvedic medicines and deployment of Medical Assistance Teams (MAT) to Mauritius and Comoros. India also sent medical teams to Maldives, Mauritius, Comoros and Kuwait to support them deal with the pandemic.
Self-reliant India
The Covid-19 crisis has sown the seeds of an economic renaissance pivoted around “Atmanirbhar Bharat” that promises to revolutionise domestic manufacturing, and make India the hub of global supply chains. The quest for self-reliance has produced tangible results, with India moving from being a net importer of Covid-19-related medical items to a net exporter. Currently, India is manufacturing over 500,000 personal protective equipment (PPE) kits and over 300,000 N-95 masks every day. India is playing the role as the pharmacy of the world during the Covid-19 pandemic with its vast experience and deep knowledge in medicine, setting the tone for many regional and global initiatives, observed the Shanghai Cooperation Organisation Secretary-General Vladimir Norov.
Diplomatic Outreach
Given the transnational spread of the coronavirus pandemic, India launched an unprecedented diplomatic outreach to forge a coherent global response to the crisis. Prime Minister Modi displayed global leadership as he participated in various virtual multilateral summits and spoke to his counterparts from 61 countries. External Affairs Minister S. Jaishankar spoke to foreign ministers from 77 countries. Showcasing India’s Neighbourhood First policy, PM Modi hosted a virtual conference of the leaders of the South Asian Association for Regional Cooperation (SAARC) and pledged $10 million SAARC Emergency Fund to combat the novel coronavirus (COVID-19) in the region. At the first virtual G20 summit, PM Modi underlined the imperative for a new kind of humane globalization, which goes beyond economic and financial calculations. India’s advocacy for people-centric globalisation was reflected the G-20’s decision on debt service suspension for developing countries.
India’s Positive Global Role
The rising global stature of India has been recognised and reaffirmed by the international community in many ways, especially during the last few months of the pandemic.
India has been elected as the chair of the executive board of the World Health Organisation (WHO) at a time when the world is rooting for reforming the global health body. Underlining India’s rising global stock, US President Donald Trump has proposed the expansion of the G7 grouping of the world’s wealthiest countries to include India, Australia, South Korea and Russia. To cap it all, India was overwhelmingly elected as a non-permanent member of the powerful UN Security Council for a two-year term on June 17. In a record of sorts, India won 184 of the 192 ballots cast in the elections for the five non-permanent UNSC seats. It was a vote of confidence in India’s capability to shape the global agenda. India’s two-year term as a non-permanent member of the UNSC will begin from January 1, 2021.
Setting the tone for the eighth stint of India in the UNSC, External Affairs Minister S. Jaishankar underscored that India “can play a positive global role,” in the extraordinary situation spawned by the pandemic and stressed that India seeks to move toward NORMS, a ‘New Orientation for a Reformed Multilateral System. Outlining India’s priorities in the UNSC, he said: “We have always been a voice of reason and a votary of international law. We advocate dialogue, consultation and fairness in our approach to global issues. And we emphasize global development, addressing climate change and eradicating of poverty as central to planet’s future.”
India’s work in the UNSC will be guided by 5Ss, in Prime Minister Modi’s words. This included Sammaan – Respect; Samwad – Dialogue; Sahyog – Cooperation; Shanti – Peace, to create conditions for universal;and Samriddhi (Prosperity). This 5S vision of India’s foreign policy, which can be called “The India Way” is finding an increasing global resonance as a Covid-afflicted world searches for lasting solutions to a range of cross-cutting problems and challenges. India is poised to shape a proactive and constructive agenda for global renewal and remapping the world order, in sync with shifting contemporary realities.
(Manish Chand is CEO & Editor-in-Chief of India Writes Network and India and the World, a pioneering magazine focused on global affairs)
Digital platforms give lifeline to Kenya’s creatives amid COVID-19
Award-winning Kenyan musician Tetu Shani has been trying to find new grooves in the time of COVID-19.
Shani who is known for his upbeat blend of indie rock, Afro-pop and folkloric rhythms, was hit hard when the coronavirus pandemic decimated his live performance income stream.
The COVID-19 crisis also had an impact on his creativity, his agent said.
“It’s very hard to be creative when experiencing such pressures on income. Frustration affects production and Tetu started to create music for himself rather than for an audience,” said Silalei Shani.
In April the rising star released a music video of his latest lockdown tune, “Always Feelin’ This Groove”.
Since then, he, like many other artists, musicians, actors, and performers have had to find new ways to supplement their income. But how?
The Kenyan government released a $1 million stimulus package dedicated to local artists, including musicians. But this is not enough, some say, wanting the government to have a longer-term plan in place.
A recent survey conducted by the HEVA Fund, Africa’s first dedicated finance, business support and knowledge facility for creative industries, underscored the financial impact of COVID-19 on creative businesses in Kenya.
In the survey, 58% of the respondents estimated their income losses to be “severe” and an additional 26% “moderate to severe”.
This is a blow to Kenya’s emerging creative industries, which, according to the latest available data from 2013, exports creative goods to the value of at $40.9 million and imports $195 million worth of creative goods, the latest UNCTAD Creative Economy Outlook outlines.
As the COVID-19 crisis deepens, the artists are flocking to both well-known and emerging platforms to eke out a living. And while digital solutions cannot replace the value and beauty of a live show, they are helping the artists survive.
This trend is giving fresh impetus to e-commerce channels and platforms for creatives. It has led the government to request UNCTAD to help address key e-commerce gaps limiting the uptake of digital solutions.
“COVID19 has seen many creatives turn to digital platforms and technologies to connect with audiences and consumers. They are also looking for ways to monetise the technology,” said UNCTAD’s creative economy programme head, Marisa Henderson.
“Given the important role of the digital creative services for creative industries, it’s crucial that countries ready themselves for the ‘new normal’ and adopt digital strategies in line with their development needs.”
An e-commerce policy solution
Kenya was among the top five African performers in the UNCTAD B2C e-commerce index 2019. The country’s 2019 Digital Economy Blueprint outlines the government’s commitment to using disruptive technology to help it leapfrog.
To turn the blueprint into action, the Communications Authority of Kenya requested UNCTAD to help it formulate a national e-commerce strategy. This will include an action plan with recommendations for targeted policy interventions.
“More needs to be done to allow home-grown digital platforms in Africa to stay profitable and for the digital economy to become inclusive and sustainable. Kenya has made significant progress in building a digital ecosystem,” said Shamika N. Sirimanne, UNCTAD’s technology and logistics director.
“The COVID-19 crisis has encouraged the creative industry to make full use of the potential offered by digital platforms to market and sell creative content online via e-commerce,” she added.
But the uptake of digital platforms has unveiled underlying challenges in the creative industry sector in Kenya, according to businesses surveyed by UNCTAD.
These include the collection of fees and royalties for artists, various copyright and intellectual property challenges, privacy and personal data protection rules, illegal downloads, piracy, and counterfeiting. Added to this is the limited scalability of locally developed digital products.
Artists’ lives deeply affected by the pandemic
Atemi Oyungu, a popular Kenyan singer and songwriter well known for her afro-soul productions, was stranded in the United States as global lockdowns came into force and prevented her return to Kenya.
“I’ve been living on my own resources and have not been able to generate an income without a keyboard,” she said.
Oyungu added: “I’ve also been missing collaboration with fellow musicians who’ve returned to their villages where internet connectivity is weak. We also face other constraints, like the time difference, so I haven’t been able to create and perform.”
She also highlighted the toll of COVID-19 on creativity. “It’s a tough period for live musicians who cannot benefit from real shows and interactions with fans to get inspired.”
Digital platforms useful for survival, but scale is key
For both Oyungu and Shani, a revamped presence on social media has been critical for keeping them afloat.
Shani embraced digital platforms to turn what would have been live performance income into digital income. He has been using livestreaming platform DundaLive.
DundaLive allows e-payments for streamed content and a tip line, using the popular M-Pesa mobile money solution and PayPal for followers outside Kenya.
Livestreaming has a merit, but it is not without challenges. “It’s difficult to get attention because of the oversaturation in the market, marked by a significant rise in live performers moving online,” Shani said. “Electricity and internet connectivity issues can also frustrate the streaming experience.”
Other platforms have also been helping Kenyan musicians.
Revenue streams generated by music aggregators, such as YouTube or Spotify, and in particular the Kenyan platform Mdundo, have helped mitigate pandemic-related losses, through the download of artists’ music tunes and ringtones for mobile phones.
Mdundo, which is expanding its presence in 15 African countries, featuring more than 60,000 African artists, reaches more than 5 million active users, 22% of whom are from Kenya.
“Music downloads have been rising steadily with a 26% uptick in 2020’s second quarter on the first quarter’s 33 million downloads,” said Wanjiku Koinange, Mdundo’s chief operating officer, who added that COVID-19 was also changing the way creative content is being produced.
Artists relying on digital platforms for income during the crisis have become more productive, she said. But profitability for both African producers and the platforms requires time and scale.
Easy auditing
Tilahun Girma is a finance consultant at I Xcel Financial, Management and IT Consultation Company. I Xcel is a licensed company from Ethiopian Management Institute and works on consulting companies on financial and management issues, line up financial systems and also consult on International Financial Reporting Standard /IFRS/ system for organizations.
Tilahun has a long time experience on the banking sector and is a member of Accounting and Audit Board of Ethiopia and ACCA. Capital talked to him about the implementation of International Financial Reporting Standards (IFRS) and other financial issues. Excerpts;
Capital: Can you please tell us about I Xcel?
Tilahun Girma: It has been three years since I Xcel has been founded using my personal license. In the last three years we have been doing different kinds of consulting services to companies in building up different kinds of finance systems and IFRS. I Xcel has been also giving different kinds of trainings on IFRS for the private sector by cooperating with the chambers of commerce’s. And recently we have developed a system that can support IFRS because one of the challenge companies are facing in applying the IFRS is how to facilitate the system. Therefore we have developed a software that can simplify the system of financial reporting using IFRS and Peachtree which is an accounting application for small and medium-sized businesses.
Capital: How do you see the use and practice of IFRS in Ethiopia?
Tilahun: IFRS in Ethiopia was officially adopted in 2014 through the enactment of proclamation and establishment of Ethiopian Audit Board. However in my assumption there are a lot of defects in applying the system. Starting from the beginning it lacks preparedness before the enactment of the proclamation.
One of the reasons is there is a lack of experienced and trained man power on the IFRS system and lack of technology. I don’t think there were more than 600 certificated accountants and the number of accountants specialized in IFRS is very low.
We have to teach our accountants the real IFRS system and at the same time we have to include it in our curriculum. Our students are still training by the old accounting system /general accounting system/ rather than the new system that the market needs.
Such kind of things should have been done before practicing the system directly. For example if you see the US they did not officially apply the system however they have included it in their education curriculum.
The other thing I notice is lack of technology. As a nation Ethiopia lacks reliable IT system suppliers that can support the financial sector. For example mostly companies uses the old Peachtree accounting application but then again most of them do not directly bought it from the source. They rather illegally cracked the system because it is expensive.
So at all there was no readiness in the technology and experience before the enactment of the proclamation.
Capital: What is your organization doing to close the wide gap?
Tilahun: We give trainings to the staff of different organizations on IFRS, but when they went back to their organizations they get to the old same system which is the Peachtree and this system is not compatible with the IFRS. Most organizations work their financial report on Microsoft Excel. So there is no system to exercise.
So to help this based on my experience I planned to develop a software that can support the practice of the system. In the last one year I was developing and testing the system to fill the gap that can coordinate with Peachtree system.
Our system will enable companies to do their financial report by Microsoft Excel using Peachtree. Then they can transfer it to IFRS standard by following simple steps.
Since I am a financial expert I hired IT experts so that I defined requirements based on my experience so that they can develop the software.
Currently our software has got the quality certificate from the Ministry of Innovation and Technology and about four companies have started to use it. Beside this system can help the experts what we trained.
It has been registered in the Ministry of Innovation and Technology and they gave us positive feedback including the Minister Abreham Belay. So currently to commercialize the system we are hiring and training experts.
Capital: What is the price for the product?
Tilahun: Such kinds of locally made technologies help to save foreign currency.
One of the things is when you install a system there is always a cost but it should not be higher than the benefit. Since we are an organization working for profit we supply it based on our cost. However we are trying to make it as affordable and available for organizations as possible. The software was developed considering small businesses.
I was planning to present it to the Accounting and Audit Board that controls over the financial report. It was better if the board have seen it to get support as well as to subsidize it to make it available for the mass. But currently our price is based on the capacity of the organization and data.
Also our plan is to sell it to accounting firms, there are more than 1,500 accounting firms and 130 auditors in the country.
