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World Bank okays project worth $200 mln to support SMEs in Egypt

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CAIRO – 18 April 2019: The World Bank gave its final approval to a new project worth $200 million for supporting reforms aimed at securing further jobs for young people and women in Egypt.

The project is meant to increase the volume of credit to small and medium-sized enterprises (SMEs), for being a key source of economic growth.

In a statement released on Thursday, Minister of Investment and International Cooperation Sahar Nasr said the project comes within the framework of ongoing cooperation between the Investment and International Cooperation Ministry and the Micro, Small & Medium Enterprise Development Agency (MSME), with a view to backing entrepreneurs, especially women.

“Our partnership with the World Bank Group aims to enable women and young people to become successful entrepreneurs. This investment provides several opportunities for improving Egyptians’ standard of living, through creating jobs and establishing a strong foundation for the country’s economy,” the statement quoted Nasr as saying.

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The project targets increasing seed capital and early-stage capital, as well as capital risk available to innovative startups facing higher risks and newly-established SMEs with great potential for growth and job creation, the statement read.

ِUnder the project, around USD 50 million will be directed to private-managed risk management institutions, such as investment funds, business accelerators, venture capital funds and investment companies, for the purpose of outlining the initial stages of the Egyptian investment system, the statement noted.

For her part, Marina Weiss, Regional Director of the World Bank office in Egypt, Yemen and Djibouti, said “Egypt has shown a strong commitment to reforming its economy. Its reforms have begun to bear fruit, enabling the private sector to secure jobs which is an integral part of achieving a sustainable and overall growth”.

Also, she added that the WB is proud to support entrepreneurs across the country, notably women and young people.

The new program hinges on the success of the existing project “Promoting Innovation for Financial Inclusion”, which enables SMEs to get access to funding and promotes job creation in the private sector nationwide.

-Egypt Today

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Investment

Diaspora investments: A must for the development of Africa

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Image Source: rupixen.com

It has been three years since his Excellency president Nana Akufo-Addo of Ghana shared some controversial thoughts on Africa’s dependence on aid or support from Europe in a decades long effort to develop the continent.

He was applauded for his bold statement and stance, but many (especially people from the Ghanaian diaspora) thought they were only words. Words they had heard many times before, but without plans or actions backing them. This might be true from their perspective, yet for the current generation of descendants from those who have been sold into slavery, it was good to hear an African leader show some backbone.

“We can no longer continue to make policy for ourselves, in our country, in our region, in our continent based on whatever support that the western world or France, or the European Union can give us. It will not work. It has not worked, and it will not work”.

The Diaspora Is Linked To The Strength of Africa

President Nana Akufo-Addo’s views on European aid are commendable, even if we debate how much he will be able to back up his words with actions.

“The place of the Diaspora, the status of the people in the diaspora, of the African diaspora, is intimately linked with what happens on the continent. An Africa strong and performing, transforms your position, your status here in Europe”.

He was addressing diaspora members in France, but he could have been addressing all people of African descent worldwide. The fact is that his ability to back his words, not exclusively but to an important extent, is contingent on the support he as an African leader receives from the African diaspora.

Remittance Coming From The African Diaspora

As a member from the African diaspora, one might ask: “Are we not supporting enough?”

Ishmeal Lamptey (Source: unsplash.com)

According to the World Bank Sub Saharan Africa received an estimated 48 billion US dollars in remittance funds from the African diaspora in 2019.

A study by Comstock, Iannone, Bhatia published in March 2009 (yes, the phenomenon has been studied for some time now) shows most funds are spend on costs of sustenance (29%), medical costs (16%) and education (12%).

When looking at the order of precedence these costs take in relation to each other, we see that unforeseen costs come first, second are medical costs and the last are for education. This underlines what we all know. The fact that there is often a sense of emergency to these transfers.

The Need To Move From Remittance To Investment In Africa

So, to answer the question of the diaspora, if it is not doing enough…well no. Harsh isn’t it? The fact of the matter is that the remittance funds are our own version of aid to the continent. It is keeping our people our family from dying but it’s not helping with any development.

We, the African diaspora, need to make the transition from remittance to investment. Remittance will always be part of the financial flows, but when seen in relation with Foreign Direct Investments (FDI) from the diaspora, they shouldn’t dominate as they do at present.

Following the content of a few independent journalists, there is now ample proof that at least some in the diaspora are not only willing, but able to move to the continent and start new businesses. But this group is a very small minority. The vast majority will not be able to follow suit and we should not want them to.

The revenues of the use of their human capital is needed to generate the investment flows Africa needs. The challenge Sub Saharan Africa faces is that of aggregation of available funds originating from the diaspora. The funds are clearly there, the industries which need them for we’ve identified, but now we need to create a robust infrastructure to aggregate and get them to their destination.

Like we pointed out in our previous article about thinking sufficiently big; while we keep our eyes on the end goal, we might need to start building one stone at a time. From individual projects, to industries, to the whole economy.

When doing so, we need to keep in mind that Africa is a unique environment. The common instruments of capital allocation used in the world should certainly be our starting point, but not limit our imagination when pooling the diaspora funds and channeling them into the continent.

As we have admonished a few times now; Africa should think BIG. And that also applies to its diaspora. In the coming articles we will continue exploring the idea of “thinking big” in the African context. So please make sure to subscribe to our Newsletter. We invite you to share your thoughts with us on the matter and get a discussion going with us and our other readers.

Article By: Jerrol Cambiel, Chief Executive EU Operations Debnoch Capital

 

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Press Release

North Ladder Secures $5 Million Series A Financing Round To Accelerate Global Expansion

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North Ladder Team (Source: Siddharth Sudhakar)

North Ladder (previously called BuyBack Bazaar), a UAE based secured trading platform for pre-owned luxury assets and electronics, today announced a $5 million Series A funding round led by regional venture capital firm BECO Capital. The new investment will help the company scale up its technology platform, enhance customer experience and pursue further geographic expansion.

The homegrown start-up also revealed that it will begin operating under the new brand name North Ladder effective immediately, representing the company’s strategy of charting new markets and supporting individuals across the globe in their endeavour to elevate their financial situation. The disruptive and innovative technology platform is the first of its kind, providing access to verified buyers of second-hand goods and instant cash. North Ladder currently enables users to sell electronics such as phones, laptops, tablets, and smart watches, as well as luxury assets including watches and cars, with a unique option of buying it back within a few months.

The Series A financing builds on an exceptional year for North Ladder which saw rapid growth of its clients, network of buyers and corporate partnerships. To date, the platform has witnessed over 15,000 transactions in the UAE, with over 85 different nationalities served while earning an impressive 4.9/5 customer satisfaction rating. In 2021, the start-up is looking to establish its presence in the Kingdom of Saudi Arabia and the United States, with a focus on scaling the platform significantly in the next 18 to 24 months.

“North Ladder has demonstrated tremendous success with its unique model of helping customers access immediate funds against their assets. The provision of a seamless and trusted digital platform for the sale of pre-owned goods has immense socially transformative potential at a global scale. We are excited about partnering with them to take their services to the next level,” said Dany Farha, CEO & Managing Partner, BECO Capital.

The company recently appointed Sandeep Shetty, former Managing Director of the core ride hailing business at Careem, as Cofounder and Chief Executive Officer of North Ladder. Prior to Careem he also led the digital transformation program at Emirates NBD and has held leadership positions at McKinsey & Company and GE Capital across India, the United States and the Middle East. Sandeep joins the leadership team of co-founders Pishu Ganglani and Ricky Husaini who together bring years of prior global start-up, financial services, technology and operations experience.

“Our exciting partnership with the region’s leading investor BECO Capital gives us the opportunity to scale operations in the UAE and expand to other strategic markets, with the mission of meaningfully impacting people across all strata of society,” said Sandeep Shetty of North Ladder. “Our global auction brings professional buyers from around the world to compete and provide local customers with the best prices and no hidden surprises.”

Since its launch in 2018, North Ladder has been recognized as one of the “Top 5 innovative start-ups in the MENA region” by PayPal backed accelerator, Village Capital and awarded as an Innovator by Entrepreneur Middle East.

 

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Press Release

Legacy Premier Foundation Congratulates New World Trade Organisation (WTO) Head Dr Ngozi Okonjo-Iweala

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Ngozi Okonjo-Iweala © AFP via Getty Images

The entire team at Legacy Premier Foundation hereby congratulates Dr Ngozi Okonjo Iweala as the new chief of the World Trade Organization (WTO).

With a proud heart and jubilation, we salute our quintessential woman of many feats on this global call to service.

This is a perfect example of a narrative that says “when opportunity meets preparedness success is inevitable”. Madam Director, you are an epitome of this simple quote. Over the years, you’ve carefully built a track record of competence with your records very visible in the public domain.

We are very pleased to send our warmest congratulations on your appointment as the seventh (7th) Director General of the foremost World Trade Organization, also making history as the first African and female to hold this prestigious position.

At this time where the world is battling with the Covid-19 pandemic, with a gradual return to normalcy, there are still some undulating terrains in the global trade landscape. We believe with you at the helm of affairs coupled with 25 years of diplomatic dealings and demonstrated leadership as a World Bank executive, you will saddle the affairs of the WTO and the entire global trade economy through these sensitive times.

We wish you much success in your new post and we look forward to the pleasure of working with you, in the place of making our African continent prominent in the scheme of world trades, and much more rejuvenation of hope that an African has all it takes to get to the zenith of his or her career without any equivocation.

We wish you a resounding success with legendary actions for global impact.

Signed: Dr Remi Duyile, Former VP, Bank of America and Founder, Legacy Premier Foundation

Visit: Legacy Premier Foundation

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