Kola Adesina, GMD Sahara Power Group
London, United Kingdom– Leading energy conglomerate, Kola Adesina of Sahara Group has urged participants at the UK-Africa Investment Summit to explore committing resources towards addressing the energy needs on the continent that is home to about 1.3 billion people.
The Summit which holds on January 20, 2020 in London, will be hosted by the Prime Minister, bringing together businesses, governments and international institutions to showcase and promote the breadth and quality of investment opportunities across Africa.
Sahara Group said UK and African businesses need to commit more funds to grid electricity development while ramping up investment in renewable energy to bring electricity to over 600 million people, a figure that is 10 times the population of the United Kingdom.
According to Kola Adesina, Executive Director, Sahara Group, access to power in Africa is crucial to ensuring sustainable economic growth and seamless transition to the fourth industrial revolution. “Investment in off-grid electricity will light up homes and small businesses in rural and poor communities, mostly in Sub Saharan Africa. This is an auspicious time for investors in the UK and across the globe to explore this opportunity which promises a win-win situation for all,” he stated.
Adesina said apart from having the potential to promote access to clean energy, off-grid electricity from renewable energy sources, including solar, wind and hydro, has the potential of becoming more affordable for more Africans in the long run. “The aspirations of Africa’s youth population, some 400 million people aged between 15-34 – which is about twice Europe’s entire population – rest on the decisions UK and African investors take at this summit. We can promote the agenda of bringing energy to life through enhanced access to electricity in Africa and Sahara Group is committed to spearheading this cause through more investment and collaboration,” he added.
Adesina stated that Sahara Group, with its profile as one of the largest private power business operators in Africa, was already in partnership with the United Nations Development Programme (UNDP) on a project aimed at boosting access to sustainable energy in Africa.
He concluded that governments and businesses must work together to develop and implement a plan to transform regulatory and operational issues in the power sector. “We also need a sustained awareness plan to change the mindset of Africans to navigate from consumption to production; this will require reliable and affordable electricity. Sahara Group remains passionate about electrifying Africa and believes the time for all stakeholders to act is now.”
According to the International Energy Agency (IEA), despite being home to 17% of the world’s population, Africa currently accounts for just 4% of global power supply investment. The IEA’s World Energy Outlook 2019 report found that achieving reliable electricity supply for all would require an almost fourfold increase, to around $120 billion a year through 2040, noting that mobilising this level of investment would require huge investments and thorough policy and regulatory measures to improve the financial and operational efficiency of utilities.
Financial Inclusion: Ecobank Group And Alipay Partner On cross-border remittance
Alipay users to benefit from Ecobank’s cross-border remittance solution
LOME, Togo, February 12, 2020 – The leading pan-African bank, Ecobank has signed a cross-border remittance agreement with Alipay, the world’s leading payment and lifestyle platform, that aims to bring more inclusive financial services by providing a fast, safe, affordable and convenient way for workers to transfer money back home.
The partnership will facilitate instant transfers from Rapid transfer, Ecobank’s remittance solution, to users of Alipay, which serves more than 1.2 billion people globally together with its local e-wallet partners. This provides an additional channel option which will increase options available to users, help lower transaction costs and enhance the quality of service in the market.
Nana ABBAN, Group Consumer Banking Head said: “Our panafrican cross-border remittance solution, Rapidtransfer, has over the years been delivering transparent, convenient, and affordable services to the African diaspora and their African-based dependants. So, it is a natural extension for us to use it to deliver the same advantages to migrant workers across Africa. Through our partnership with Alipay we are further leveraging the scale and capacity of our unified payments ecosystem on the global stage.”
“We are excited to partner with Ecobank and use our technology to bring fast, affordable, and convenient remittance services to more users globally, especially workers who are living far from home,” said Ma ZHIGUO, Alipay’s head of the global remittances business. “We are committed to working with partners such as Ecobank, using innovative technologies to help global consumers gain access to inclusive financial services, creating greater value for society and bringing equal opportunities to the world.”
The solution will be rolled out across our entire footprint, subject to required local approvals.
Tony Elumelu Foundation Disburses First Tranche of $5m Partnership Commitment from African Development Bank
From Right to Left: Tony O. Elumelu, CON, Founder, Tony Elumelu Foundation and Akinwunmi Adesina, President, African Development Bank (AfDB) at the 2019 Tony Elumelu Foundation Entrepreneurship Forum – Africa’s largest entrepreneurship conference. (Source: Tony Elumelu Foundation)
AfDB Joins TEF Programme Catalysing Entrepreneurship Across Africa
Tony O. Elumelu, CON, has congratulated the African Development Bank (AfDB), and AfDB President Akinwumi Adesina, on their commitment to African entrepreneurship, with the disbursement of $2.5million seed capital to the AfDB-sponsored beneficiaries of the 2019 TEF Entrepreneurship Programme. $2.5m was released today, with the remainder expected to be disbursed to the entrepreneurs in Q12020.
The AfDB commitment follows the recent $8.5 million disbursement from the United Nations Development Programme (UNDP) to 2,648 entrepreneurs in the Sahel region and Africa more broadly, and further accelerates the economic empowerment generated by the Tony Elumelu Foundation. In 2019, the Foundation significantly increased the scale and reach of it impact, with the number of beneficiaries of its flagship Entrepreneurship Programme rising from its annual commitment of 1,000, to 5,150, in collaboration with global and African partners.
With its commitment to strengthen small and medium-sized enterprises and develop young entrepreneurs, AfDB joined the growing list of global development institutions benefiting from the Tony Elumelu Foundation’s unique model of identifying, training, mentoring and funding entrepreneurs and start-ups across Africa. The partnership demonstrates the implementation of the AfDB’s ten-year “Jobs for Youth in Africa” strategy, launched in 2016, to support the creation of 25 million meaningful jobs across the continent.
The partnership illustrates TEF’s willingness to share its infrastructure and know-how, with others who share the mission to empower young African entrepreneurs and TEF’s goal of creating millions of jobs, as well as generating
billions in revenue, to catalyse economic growth across the continent.
The Foundation is currently accepting applications to the 2020 cohort of its flagship Entrepreneurship Programme on TEFConnect.com, Africa’s digital hub for entrepreneurs.
Family Owned-Businesses, SMEs Fail Because Of No Succession Planning
Small Businesses are the future of Africa. This sounds like a bold statement because when we think of small businesses or our family businesses, we think of our “tuck shops” and “Misika” and the “bottle stores” that we find across the sparse savannah. And the concept itself sounds like a laughable concept built on dreams.
However, closer inspection of this fact proves that it is these small and humble beginnings that have made the huge corporations that we know today. It is family businesses that have their foundations built on value systems, and the financial dreams of families (to be independent and build wealth for future generations) that have built nations.
In Africa, the dream of enterprise and entrepreneurship has been dashed, by what has been dubbed by many as “generational curses,” where family businesses seem to run to ground as soon as the founder passes on and the financial freedom of the family gets buried with the founder of the business. A staggering statistic shows that the majority of the world’s wealth is created by family-owned businesses. 85% of start-ups worldwide are established with family money (FFI Global Data Points). Estimates suggest that businesses that are majority-owned by a single family’s members contribute to 70-90 percent of the world’s GDP (Tharawat Magazine, Volume 22, p. 36)
New business is fueled by family involvement.And family business is within the category of micro, small, and medium enterprises (MSMEs) globally, whether in Africa, South America, Europe, Asia, and the USA. However, some family businesses are large multinational corporations that operate in many countries such as Ford Motors and McDonald’s, which originates from the USA.
The survival rate of most African family businesses beyond the first generation is extremely low. It has been found that globally 33% of family businesses have survived past the first generation (the founder) onto subsequent generations. However, in Africa, only 2% of family businesses last past the first generation.
You may be wondering how this applies to you and your business. If you are a business owner, then you should be very concerned when you hear of such statistics. It means you may fall under the 98% of failed family businesses that are currently on the continent. Your company may be making money at this moment, but if you have not started planning for your SUCCESSion plan, then it is 98% guaranteed that your business will no longer exist once you exit that business, either by incapacitation, illness, retirement or death.
How so? Simply put; as a business owner, your responsibility is to start planning for the life of your business after your departure from that business. This further simplified means that you must see a future in your business where you are not managing it or involved in the day to day runnings of the business. Yes … After you. At some point in the life cycle of your business, you have to be outside the everyday running of the business, allowing it to grow independent. You have to make yourself useful as either a chairperson who oversees the vision or completely walk away and allow others to take the lead.
To most SME founders, this seems like impossibility, and indeed it is if you do not plan this properly and use the right tools to get to this momentous event.
A business is not its owner, and the two must be separated. The owner is similar to a doting parent who is nurturing their child to become independent. However, we have found that in the African business space, SME business owners have made their businesses extensions of themselves and their egos. Which, in turn, leaves the business unable to grow.
Some Red Flags that you should know about that are crippling your business may include:
- The lack of official operations manual for any of your business functions
- No set formula or method to your activities
- Your business Values, Vision, Mission are just words on your brochures but do not form part of the culture of your organization
- You have no Values, Vision, Mission
- You are the sole signatory to all accounts
- Only you know your major suppliers
- Only you know and handle your major customers
- If you are ill or traveling your business is closed, or certain functions cannot be done.
- You don’t trust any of your staff
- Your staff do not trust you
- Your family members who are part of your business are not qualified or trained (You are just helping them out)
- Your children or spouse are not involved in your business, and you are the only person who is interested in the business
- Your Company Directors are just family members who you put on the paperwork, but they know nothing about your business.
- You are not quite sure what your company structure means, and the various registration documents came standard with registration.
- You have a Will, and you believe this will protect your family and your business.
- You do not have any written plans for your business
- Your business and personal finances are the same
- Your business has no governance structure
At first glance, you may feel that you have already failed and that your business may never reach the heights reached by the huge corporates that you now see across the world. However, Africa has significant success stories similar to Econet, Pick and Pay, and Dangote. These businesses were started by families, and that started as small operations providing goods and services to their communities. But as they started envisioning the future of businesses, they also secured the futures of generations in their families. And with the right planning and direction, your family Business could be the next corporate giant. You are the person who will make this happen.
Over the next few weeks, we will unpack the SUCCESSion of small businesses and the steps that must be taken to secure this future. The first most crucial step you have made is to be in business.
Tsitsi Mutendi is a Family Business Expert specialising on Family Governance. She is the Founder, African Family Business Association, AFF – African Family Firms.
Email: [email protected]
Visit: Tsitsi Mutendi