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Afreximbank Outlines US$3bn Country Programme for Kenya

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By Tony Obiechina, Abuja

Kenya is set to benefit from a US$3 billion Country Programme from African Export-Import Bank (Afreximbank). This was announced during a meeting between Kenya’s President, Dr William Ruto and President and Chairman of the Board of Directors of Afreximbank, Prof.

Benedict Okey Oramah.

During the meeting held at State House Nairobi, Prof.

Oramah said the Bank was excited by the opportunity  to roll out this package of financing as part of its efforts  to support Kenya as it navigates the current unprecedented  global economic challenges.

“We had a very good meeting with His Excellency President Ruto and agreed that we needed to reset the relationship between Afreximbank and Kenya,” said Prof.

Oramah.

President Ruto’s vision and sense of urgency was infectious and we couldn’t help but give him the support he deserves.”

Speaking of the meeting, Dr Ruto said the engagement was fruitful and would enable Kenya to interact more with one of Africa’s leading development finance institutions.

“This will allow us to expand our engagement with Afreximbank on several investment areas such as infrastructure, agriculture, commercial irrigation, housing, the creative industry and the MSME ecosystem,” noted Dr Ruto.

A technical team drawn from the Kenyan government and Afreximbank is expected to begin working on the structure of the support.

A significant part of the support will involve the establishment of a Kenya Climate Change Adaptation Facility. Underpinning this, Afreximbank will put in place US$ 800 million financing towards building 100 dams to double irrigated area in Kenya, while paying particular attention to  regions experiencing water shortages as a result of the impact of climate change.

“We are proud to be using Kenya to launch the Afreximbank Climate Change Adaptation Facility under which we plan to disburse over US$5 billion in the 5 years to 2026 under Afreximbank’s 6th Strategic Plan,” Oramah said.

Under this scheme, Kenya plans to double land area under irrigation from the current 670,000 acres to 1.4 million acres in the next three years. This is aimed at improving the country’s food production, while reducing its over reliance on rain-fed agriculture.

“We stand ready to kick-start this exciting programme with the Government of Kenya and promote climate smart agriculture in the country. Our Project Preparation and technical teams will work with the Kenya government team on this project to develop a robust model and structure that will attract investors,’ added Prof. Oramah.

The Country Program will also encompass support for development and operation of industrial parks in Kenya. This is geared particularly to help in enhancing Kenya’s manufacturing and value-addition sectors. As a result, it will provide a major boost to intra-African trade under the Africa Continental Free Trade Area (AfCFTA).

Additionally, Afreximbank has also extended the ATEX pan-African pooled procurement platform for commodities to Kenya. This is critical in supporting the East African nation’s post COVID-19 pandemic economic stresses and the impact of the ongoing Ukraine crisis on global supply chains that have led to shortages and high prices of essential commodities.

“Afreximbank will put in place a facility that enables timely and sustainable supply of basic commodities such as fuel, fertilizer, grains and edible oils.  We also want to reorientate supply chains towards intra-African procurement,” noted Prof. Oramah.

 “For example, Africa produces more fertilizer than it uses and some of this gets exported, while some African countries import the same,” he added.

The Bank will also support youth empowerment through its CANEX platform for the creative sector. This will support young talented Africans who are traditionally shunned by the financial services sector due to the traditional lending models.  The facility will complement the governments’ efforts to develop the film and performance arts, music, fashion and textile as well as art and crafts. This will see many young Africans benefit from their creativity and intellectual capital.

BUSINESS

Local Content: NCDMB Holds Knowledge-Sharing Session with Mozambique

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From Mike Tayese, Yenagoa

In keeping with Nigeria’s leadership role in the development of Local Content in Africa, the Nigerian Content Development and Monitoring Board (NCDMB) has concluded a two-day Local Content development experience-sharing session with a delegation from Mozambique’s national oil company, Empresa Nacional de Hidrocarbonetos (ENH).

The engagement was held on the sidelines of the 8th Sub-Saharan Africa International Petroleum Exhibition & Conference, in Lagos.

NCDMB’s delegation was led by the Executive Secretary, Engr.

Felix Omatsola Ogbe, while Mozambique’s team was led by the Chairman of Empresa Nacional de Hidrocarbonetos, Mr.
Estevao Rafeal Pale.

The experience-sharing session was facilitated by Aberdeen Global Strategies & Solutions, under the leadership of Dr. Mark Osa Igiehon, who consults for ENH Mozambique.

In his introductory comments, the Executive Secretary conveyed NCDMB’s commitment to supporting African oil-producing nations in developing and implementing local content policies as a strategy for improving indigenous participation and value optimization from hydrocarbons and mineral resources.

He lauded the giant strides recorded by Mozambique in its gas sector and advised against repeating the mistakes made by Nigeria in the early years of its oil and gas industry.

Represented by the Director of Monitoring and Evaluation, NCDMB, Mr. Abdulmalik Halilu, the Executive Secretary explained that every oil and gas-producing nation must choose to either focus on optimizing revenue generation or maximizing in-country value from the activities of the industry.

He stated that the revenue generation option encourages oil and gas operators to seek the cheapest and fastest route to first oil, while the Government collects maximum revenue in the form of taxes and royalties for development and pays little attention to value addition from industry operations.

He explained that the alternative option focuses on maximizing in-country value and promoting the development and use of local capacities. This model obligates operators in the industry to consider long-term value, while the Government takes lower revenue in exchange for higher in-country value and pays greater attention to life-cycle support for operators.

Speaking further, the NCDMB boss listed key parameters that are critical to in-country value addition and growth of the oil and gas sector on a sustainable basis. These factors are Regulatory Framework, Gap Analysis, Capacity Building, Funding and Incentives, Research and Development, and Access to Market.

He hinted that a Local Content policy backed with appropriate legislation is very fundamental in local content practice, adding that baseline and periodic gap analyses are essential to determine gaps that need to be closed in the areas of skills, facilities and infrastructure.

He also stressed the need to develop in-country capacities and capabilities and utilise them through oil and gas projects.

The knowledge-sharing programme also featured a presentation on Funds and Funding of NCDMB, delivered by the Director of Finance and Personnel Management, NCDMB, Dr. Obinna Ofili.

The Director was represented by the Head, Credit Analysis and Risk Management, Mrs. Chika Enwerem–Okidi, and underlined the need for dedicated funding that would be applied to developing local content in the oil sector.

The Director mentioned that the Nigerian Content Development Fund (NCDF) is provided for in section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and is contributed by 1% of every contract awarded in the upstream section of the oil and gas industry.

He added that the NCDF has been deployed in several successful projects, including the building of human and material capacities, the $350 million Nigerian Content Intervention Fund, the ongoing development of the Nigerian Oil and Gas Parks Scheme (NOGAPS), the construction of the NCDMB 17-story corporate headquarters, and 3rd party investments, many of which created jobs for Nigerians and yield interest for the Board.

The second day of the knowledge-sharing programme featured presentations on the operating framework for planning, research and statistics, capacity building, projects certification and authorization and monitoring and evaluation.

The Director of Projects Certification and Authorization, Engr. Abayomi Bamidele highlighted NCDMB’s role in the award of contracts for oil and gas projects and how opportunities are captured for the local economy, using the Nigerian Content Plan and the Contracting Strategy submitted by operating companies for the Board’s review and approval.

He underlined that local content should be promoted as a national agenda for every country and the right data must be collected to establish current realities and gaps to the target.

He emphasised the need for in-country capacity building based on areas of strengths and weaknesses as well as continuous projects to keep the developed capacities engaged.

The knowledge-sharing programme was very interactive and the Mozambican officials sought clarifications on the Board’s model of enforcing Local Content Compliance, monitoring projects, supervising third-party investments, and many other areas.

The programme was convened in line with the Sectorial and Regional Market Linkage Pillar of the Nigerian Content 10-year strategic roadmap. The roadmap requires NCDMB to support other African oil-producing countries and to develop new markets and partnership opportunities for the benefit of competent Nigerian operating and oil service companies.

NCDMB has provided similar guidance to numerous African nations, including Senegal, Tanzania, and Uganda.

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BUSINESS

NAICOM, Ministry Collaborate on Youth Career Development, Entrepreneurship

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Tony Obiechina, Abuja

The Minister of State, Federal Ministry of Youth Development Mr. Ayodele Olawande paid a courtesy visit to the Commissioner for Insurance Mr. Olorundare Sunday at NAICOM’s headquarters in Abuja.

The purpose of the visit was to discuss potential collaboration opportunities between the Ministry and NAICOM in advancing youth development initiatives, particularly in the areas of financial literacy, entrepreneurship, and career development.

The Commissioner for Insurance in his remarks welcomed the Minister and gave a brief history and overview of the Nigerian insurance industry, the administrative structure of the Commission as well as its achievements in the area of financial inclusion, transition to risk-based supervision and IFRS 17, setting up of the West African Insurance Supervisors Association and the College of Insurance Supervisors of the West African Monetary Zone.

The Minister for State in his remarks thanked the NAICOM Management for the warm reception. He expressed his desire for the Ministry to collaborate with NAICOM in engaging the Nigerian youth formally and informally to develop their skills.

He noted that the Ministry had developed a digital platform (app) called Nigerian Youth Academy (NIYA) where Nigerian youth could learn vocational and digital skills.

He requested to collaborate with NAICOM in the building of insurance educational module to be uploaded on the NIYA platform as this will go a long way in training the youths and improve their level of financial literacy, help in entrepreneurship and job creation, career development and sensitise youth on the benefits of insurances.

The CFI promised to convey the Minister’s request to relevant parties (The Chartered Insurance Institute of Nigeria and the College of Insurance and Financial Management) within the Nigerian Insurance Industry.

NAICOM Boss Olorundare Sunday (r) with the Minister of State for Youth Development, Mr. Ayodele Olawande during a courtesy visit

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Economy

We Currently have $30bn Investment Commitments – FG

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The Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, says Nigeria currently has about 30 billion dollars investment committment from various investors.

Uzoka-Anite said this at the ongoing Ministerial Media briefing in Abuja on Friday.

According to her, the commitments will be redeemed over the course of five to eight years.

She said investments, commitments, and pledges were also received from our oil and gas free zone, adding that last week, some of them committed an additional 10 billion dollars in investments.

“I hosted the managing director of SHELL who explained to me about the investment plans of shell.

“ I know a lot of us are aware that shell is leaving; he came to explain to me what they mean by that.

And I can tell you that they are not leaving.

“Rather, they are expanding and increasing their investments in Nigeria; they are selling their onshore assets and increasing their investment in gas and offshore assets.” she said.

Uzoka-Anite, who envisaged more investments into the country, said  it would not have been possible without the commitment of President Bola Tinubu led administration.

She said that with increased investments comes job opportunities and economic growth, which wss part of the priority of the government. (NAN)

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