CBN moves to cushion economy and Naira

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December 27, 2022

The signs that the Nigerian economy has been in doldrums were palpable and frightening: 130 million Nigerians in poverty, representing 63 per cent of the nation’s population, according to the 2022 Multidimensional Poverty Index Survey released by the National Bureau of Statistics ( NBS); inflation rate that accelerated for the ninth straight month to 21.09% in October of 2022 from 20.77% in the prior month, which was the highest since September of 2005; a decline in Nigeria’s Gross Domestic Product from 173.5 trillion naira the third quarter of 2021 to 45.3 trillion naira the same period; then a partially paralysed naira, almost N800 to one dollar on the parallel market. This paints a scary picture.

With this in place, something drastic and expedient needed to be done. Therefore, it was not surprising that the Central Bank of Nigeria(CBN) seemingly concerned with ensuring stability in the financial system, announced two major monetary policies that would either lift the economy and save the naira. Analysts say these policies can also plunge the two deeper the steepness of declension if not dexterously implemented.

First, on October 26, Godwin Emefiele, Governor of the CBN, announced the issuance of redesigned naira notes. He said the circulation would begin on December 15, 2022. by the stroke of pen of this policy, the old Naira notes will cease to be legal tender by January 31, 2023.

This was quickly followed by a new cash policy that places a limit on cash withdrawals to N20,000 daily for Point Of Sale(POS) terminals; N100,000 weekly for private individuals and N500,000 for organisations and corporate bodies weekly.

In redesigning the naira, Emefiele gave four reasons: One, to address the issue of individuals who have made currency fraud their main source of income. There were challenges in the management of the existing banknotes in circulation, especially those outside the banking system. This portended dire consequences for the integrity of the CBN and the country. Top of the challenges, he said, was hoarding of the banknotes to the tune that N2.73tn out of the N3.23tn currency in circulation as of September 2022 was outside the vaults of the commercial banks across the country.

Two, it would help in reducing the growing kidnapping and ransom industry as the access to large sums used for ransom payment; three, it will aid in lowering the rate of inflation and regulate the amount of money in circulation.

Emefiele also said the worsening shortage of clean and fit banknotes; increasing ease and risk of counterfeiting evidenced by several security reports and compliance with global standard to circulate new legal tender every five to eight years.

He elaborated that the naira redesign would help to rein in the currency outside the banking system and make CBN’s monetary policies more effective as well as deepen its cashless economy drive.

He said: “On the basis of these trends, problems, and facts set out above, and in line with provisions of Sections 2(b), Section 18(a), and Section 19, subsections (a) and (b) of the CBN Act 2007, the Management of the CBN has sought and obtained the approval of President Muhammadu Buhari to redesign, produce, release and circulate new series of banknotes at N200, N500, and N1,000 levels.

“In line with this approval, we have finalized arrangements for the new currency to begin circulation from December 15, 2022 after its launch by President Muhammadu Buhari. The new and existing currencies shall remain legal tender and circulate together until January 31, 2023 when the existing currencies shall cease to be legal tender.”

The CBN announcement of the naira note redesign elicited reactions among experts and other agencies of government.

For instance, the Minister of Finance, Budget and National Planning, Zainab Ahmed, during the budget debate of the Ministry of Finance, Budget and National Planning in the National Assembly, said the CBN did not consult her ministry before taking the decision to redesign naira notes.

She said even though one of the reasons for the decision is to manage inflation, consequences are sure to follow.

“We were not consulted. It was an announcement that we heard. Part of the reason that was advocated is that it is one of the ways to mop up the liquidity to manage inflation.
“But there are also consequences – we are looking at what the consequences will be. There will be some benefits but there will be some challenges.
“And I don’t know whether the monetary authorities have actually looked very closely at what the consequences are and how they will mitigate it.”

However, President Muhammadu Buhari came to Emefiele’s defense when he said his administration will not go back on the plan by CBN to redesign the nation’s highest currency notes.

Buhari said this in London, UK, shortly after meeting with King Charles III at Buckingham Palace.

Also, the CBN Director in charge of Corporate Communication, Mr. Osita Nwanisobi said the CBN management, in line with provisions of section 2(b), section 18(a), and section 19(a)(b) of the CBN Act 2007, duly sought and obtained the approval of President Muhammadu Buhari in writing to redesign, produce, release and circulate new series of N200, N500, and N1,000 banknotes.

Nwanisobi urged Nigerians to support the currency redesign project.
He said currency management in the country had faced several escalating challenges which threatened the integrity of the naira, the CBN, and the country in general, adding that every top-rate central bank was committed to safeguarding the integrity of the local legal tender, the efficiency of its supply, as well as its efficacy in the conduct of monetary policy.
Part of the fears expressed by experts was that the dollar which has been on a steep rise in value against the naira may continue to promote the downward slide.

And true to the concerns, the sharp fall of the naira against the foreign currencies continued just after the announcement with the British Pound crossing N1,000 in the parallel market. Now, its about N925 to one pound.

Predictably, a few days after the announcement was made, the naira hit new lows against the dollar in the parallel (black) market. A dollar which earlier exchanged for about N700 hit almost N850 within days.

Also, as a result of the redesign policy, naira notes minted as far back as over a decade ago, were back in circulation. It was reported that bundles of cash minted in 2005 and 2008 were deposited in banks in a bid to beat the CBN deadline. Emefiele confirmed this when he said the bank has retrieved more than N1 trillion since its launch of new naira notes in a bid to move cash back into the banking system.

However, one of the secretive things about the naira design was the inability of the CBN to disclose how much it spent to carry out the exercise.

The apex bank was reported to have spent N281.07 billion to print bank notes between 2016 and 2020 and another N3.88 billion to destroy mutilated notes within the same period.

Experts say over N500 billion must have been spent to redesign this, questioning the rationale to spend such an amount at a time the economy is still in crisis. However, it is still in the realm of estimations.

The New Cash Withdrawal Policy

As the controversy surrounding the redesigning of the naira was still raging, the CBN on Tuesday, December 6, 2022, issued a new directive to banks and other financial institutions to reduce cash transactions in the country.

According to a new memo to banks signed by the Director of Banking Supervision, Haruna .B. Mustafa, individuals will only be able to withdraw N100,000 per week ( from over the counter, Point of Sale Machines or the Automated Teller Machines), while organisations can access N500,000 per week.

The memo among other things, stated: “Further to the launch of the redesigned naira notes by the President, Major General Muhammadu Buhari (retd.), on Wednesday, November 23, 2022, and in line with the cashless policy of the CBN, all deposit money banks and other financial institutions are hereby directed to note and comply with the following:
“1. The maximum cash withdrawal over the counter by individuals and corporate organisations per week shall henceforth be N100,000 and N500,000 respectively. Withdrawals above these limits shall attract processing fees of 5% and 10%, respectively.
“2. Third-party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of N10,000,000 on clearing cheques still subsist.
“3. The maximum cash withdrawal per week via Automated Teller Machine shall be N100,000 subject to a maximum of N20,000 cash withdrawal per day.
“4. Only denominations of N200 and below shall be loaded into the ATMs.
“5. The maximum cash withdrawal via the point of sale terminal shall be N20,000 daily.
“6. In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits are required for legitimate purposes, such cash withdrawals shall not exceed N5,000,000.00 and N10,000,000.00 for individuals and corporate organisations, respectively, and shall be subject to the referenced processing fees in (1) above, in addition to enhanced due diligence and further information requirements.”

Part of the objectives of the policy according to the CBN, is that it aims at reducing the usage of cash and increasing the use of alternatives to cash due to the negative consequences of cash usage.

Other benefits include, the achievement of the nation’s vision 2020 objective; to reduce huge cost associated with cash handling (printing, storing, processing, distributing, etc); to increase convenience/access to payment (more payment options); to enable more transparency in payment systems, and allow for more effective monetary policy and to reduce cash-related crimes for safety of bank customers and the general public.

Accordingly, concerns have been raised by stakeholders. Top of these is the fear by political parties that the cashless policy will choke the political process, fundraising going into the 2023 general elections.

They argued that if Buhari had no access to funding in 2014, it would have been very difficult for him to win the elections. They also argue that the policy will create logistic problems, particularly in paying party agents nationwide will be difficult.

Governor Ahmadu Fintiri of Adamawa State accused Emefiele of targeting the political class with the new cash withdrawal limit.

The Director, Strategic Communications, National Election Management Committee of the PDP Presidential Campaign Council, Chief Dele Momodu, said the recent cash withdrawal policy announced would affect the parties’ funding activities, adding that “if enforced, the policy will strangulate the political process, not the PDP alone.”

He said: “Why make a policy that will largely affect the poor more than the rich? My worry is that most of our policies always target the poor. The PDP is worried about the poor market woman, the ordinary man on the street because we still run a cash-and-carry economy.”

On his part, the National Chairman of the Africa Democratic Congress, Chief Ralph Nwosu said the policy might pose a challenge to the parties, noting that the CBN did not carry out adequate sensitisation campaigns on it, stressing that it was politically motivated.

He said: ‘’How do you expect the ADC candidate to have the cash to do the things he wants to do and how do you think that this is the best time for such an undertaking?

‘’We have almost 200,000 agents that we must pay and 80 per cent of them live in rural areas. Is it that N2,000 or N5,000 that you pay them that you would transfer to each of them? How many of them have such a facility? So it’s completely inconsiderate of them.“

For the factional National Publicity Secretary of the Social Democratic Party, Alpha Muhammed, ’’you cannot overnight bring a policy that will seriously affect a project as big as the general elections.

‘’Definitely, cash has to move, people have to pay for logistics; you have to give cash to agents, you have to give cash to those who will transport people to rallies. It will definitely affect the success of the election and the campaign itself.’’

This was as the National Chairman and Presidential candidate of the African Democratic Party, Sani Yabagi said political parties would have logistical challenges if the policy implementation eventually takes off.

He said:“I think the government is trying to control the flow of money in circulation. We have all agreed that vote buying and selling is a cankerworm to our democracy. So, if the intention of the government is to curb the use of cash for vote buying, this will be good news for everyone.

“But will this not amount to killing an ant with a sledgehammer? Again, which is better: the medicine or the sickness? Government must think about this again particularly as it would affect the logistics of all the political parties.”

National Chairman of the All Progressives Grand Alliance, Chief Victor Oye said: “The poor will be affected no doubt but this is just a temporary measure. It is not going to last. It is part of the process to make the transition to the new currency seamless. The pain and difficulty will ease out very soon.

“Of course, it will take time for poor Nigerians to get used to this but they will eventually embrace it. Let me also add here that this is a process in the journey to a cashless economy. There will be a question or two about the timing, particularly with elections around the corner. Still, the rich and the poor should support it.’’

Contrarily, the spokesman of Obi-Datti Presidential Campaign Council, Yunusa Tanko said his party would not support waivers for parties, adding that this may be a ploy to stash money that could be used to buy votes during the polls.

Not finding the policy palatable, the House of Representatives last week summoned Emefiele and asked the CBN to suspend the new cash withdrawal policy.

This followed a motion of matter of urgent public importance moved by Aliyu Magaji (APC Jigawa) during plenary. In the motion, Mr Magaji said small businesses, which are the major drivers of the economy, depend on cash for transactions. He added that the owners of these businesses are going to be negatively impacted by this policy.

He said although the CBN has the statutory power to implement monetary policy, the policy will have a negative impact on the economy at large.

He said: “Although the Central Bank of Nigeria has the right to issue monetary policies on the Nigerian economy to be able to guide and direct the economy to the right path of recovery and growth, however, the new policy rolled out by the Central Bank of Nigeria (CBN) will definitely have a negative impact on the already dwindling economy, and further weaken the value of the Naira as Nigerians may resolve to use the dollar and other currencies as means of trading and thus further devalue Naira and weaken the economy.

“It is good to have a cashless policy but we seem to be borrowing ideas and policies from other countries that are far ahead of us. We are comparing ourselves with the United States and the United Kingdom. These people are far ahead of us. We will get there one day but this type of policy disturbs the people that voted for us.

“The issue affects everyone, most of our people are in rural areas and everything is being done in Naira and cash. And somebody will wake up and make a policy that will start tomorrow, no consultation.”

Emefiele after a meeting with President Muhammadu Buhari said there was no going back on the policy, no matter the degree of criticisms.

He said: ” I am aware that they (federal lawmakers) have asked for some briefings and we will brief them. But I think it’s important for me to say that the cashless policy started in 2012.

“But on almost three to four occasions we had to step down the policy because we felt that there is a need for us to prepare ourselves and deepen our payment system infrastructure in Nigeria.

“Between 2012 and now 2022, almost 10 years, we believe that a lot of electronic channels have been put in place that will aid people in conducting banking and financial service transactions in Nigeria.”

Fearing that more than a million POS Operators may lose their jobs if the new policy is implemented, the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has written to the apex bank requesting exclusion from the policy.

AMMBAN in the letter dated: “All of these efforts are not aimed at making the CBN change her policy but for us agents to be recognized and enable us to have access to more funds better than the 20,000 a day as prescribed by the new policy.

“You will agree with me as agents that if all we can access is 100,000 a week /20,000 a day as cash for running our business, then we are practically out of business.”

There is no doubt that there will be severe consequences if the CBN goes ahead to implement the policy, both for the generality of Nigerians and the government and its regulatory agencies. How these issues are going to be mitigated is left to imaginations. Perhaps the CBN has shoulders that are broard enough to carry the weight.

University of Zimbabwe Don Talks Agriculture

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cherryafrica

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October 30, 2022

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The Dean of Agriculture, Environment and Food Systems at the University of Zimbabwe, Dr. Elijah Nyakudya discusses agriculture with Cherryafrica

Since the outbreak of the Covid-19 pandemic, Zimbabwe, much like the rest of the global community, has experienced gaps in food security and other resources. The Russia-Ukraine war, which has disrupted the global food supply chain has worsened the already bad situation. In sync with the underpinning vision of the Strategic Agricultural Conference in Africa (SACA), CherryAfrica, the organisers of the conference in partnership with Ministry of Lands, Agriculture, Fisheries, Water and Rural Development in Zimbabwe touched base with the Dean, Faculty of Agriculture, Environment and Food Systems, the University of Zimbabwe (UZ), Dr. Elijah Nyakudya to not only engage with him on the conference but also for a chat to learn more about the new initiatives in the institution aimed to respond to the unfolding challenges. It was learned that the university has evolved new strategies and broadened its scope and capacity in a bid to address these shortcomings.

The University of Zimbabwe is the oldest and largest university in the country, and it was reasoned by the organisers of SACA, that its experiences would count. This is more so when consideration is given to its farm size, which measures 1,636 hectares.

Plans are also underway for delegates to the forthcoming SACA to visit the university where the Head of Agriculture in Africa Union Commission would address 5,000 students from various universities in Zimbabwe and other African universities via Zoom. Delegates are also programmed to tour the university’s Agro Park for hands-on experience and training on different aspects of agriculture.

CherryAfrica further learned that the university is working to sign partnership agreements with interested West African universities, especially in Nigeria, Ghana, Uganda, Gambia and others, for exchange of programmes, and more.

The beginning of the year for University of Zimbabwe saw not only a name change for the faculty of Agriculture but the addition and modification of departments within the faculty and a tweak of programmes at undergraduate and postgraduate levels. Dr. Nyakudya said the faculty had emphasized outcome-based research with tangible results that apply to the current agricultural climate in Zimbabwe and the farming community of Africa as a whole.

Dean of Agriculture, Environment and Food Systems at the University of Zimbabwe, Dr. Elijah Nyakudya

Dr Nyakudya gave more insight and explained the workings of the departments within the faculty, which started with the Department of Plant Production and Technology that has been changed to the Department of Crop Science. The idea behind the change, he said, is to expand the department’s activities to find sustainable seed and crop systems for maximum yields.

The Department of Agricultural Business Development and Economics, which is aimed at looking at the farming aspect and business side of things has also been reinforced to focus the department’s research mainly on Agriculture information systems, otherwise known as digital systems.

The Department of Soil Science and the Environment is another feature of the faculty. As the name suggests there is a focus on the soil itself; with research looking at soil productivity, agrosystems development, and water and waste management. The department’s existence is an acknowledgement that there are other factors that go into successful farming, which deserve attention as well.

The Department of Agriculture and Bio-systems in Agriculture is another department within the UZ agriculture faculty. The department is driving towards the mechanisation of food systems and working on getting a handle on post-harvest losses. According to Dr. Nyakudya, Africa loses over 25% of its yield in the post-harvest stage.

The fifth department is Livestock Science which looks at livestock. The University has recently started using artificial insemination to multiply its herd of about 600 cattle. The practice is meant to boost reproduction and introduce new bloodlines and breeds to the herd. The Park is also in the process of building a poultry house with the capacity of holding 12,000 birds.

Dr. Nyakudya also mentioned the Agricultural Business and Communal Education directorate. “Agriculture should be a business,” states the Dean, the directorate is focusing on taking the lead in addressing national challenges about Agriculture. Dr Nyakudya expressed a great need to contribute to economic development through the farming sector.

As a nation, Zimbabwe faces a lot of challenges in its agricultural activities, from a lack of effective farming methods to high costs of production. To effectively address these and realise the essence of the new initiatives Dr. Nyakudya spoke on the mismatch between the cost of the finished product and the cost of production. For instance, the cost of fertilisers and herbicides is very high and sets back farmers financially significantly.

Dr Nyakudya expressed interest in creating models that speak to the improvement of efficiency and processes. “There is also a need to formulate strong value chains from the farm to the market. The directorate also seeks to deal with issues about technology; business and training capacity in not just large-scale farming but the small communities that don’t have much,” he told CherryAfrica.

The Dean also spoke about Education 5.0, a modification of Education 3.0 which adds innovation and industrialization as missions of universities. The initiative is to align national ambitions to attain middle-income status by the year 2030.

The aim is to give students practical skills along with the knowledge they receive from the classroom. As Dr Nyakudya says, “Knowledge without practical skills doesn’t make one productive thus making it meaningless.”

The Dean also shed more light on the university’s Agro-Park where various types of Agri-activities are taking place from livestock breeding to crop farming to industrial activities. The university intends to turn the Agro-Park into a model lab where technology and solutions are created. This park is also a great place for students to gain experience and the practical skills mentioned above. The Agro-Park also trains students from other smaller agricultural institutions. It is through activities and hands-on training in the park that talent is identified and further nurtured within students.

In addition, the university is working on building an Agro-Processing plant. For instance, a bakery plant is in the works that is looking for an alternative to wheat for bread production. Sweet potato bread is an option the plant is looking into as it is cheaper to produce and cuts down on imports. The Dean further informed CherryAfrica that a 30% deposit has been made on an oil processing plant. The hopes are to process oil out of crops like soya beans to get cooking oil and use the by-product of such processes to make livestock feed. According to Dr Nyakudya, livestock feed accounts for anywhere from 50% to 60% of costs for farmers, which isn’t sustainable or cost-effective.

“It’s not that we want to compete with anyone, but we want to come up with solutions to clear agriculture problems,” says the Dean. The intention is to make Zimbabwe as self-sufficient as possible. The park wants to produce raw materials like soya beans, potatoes, and maize; and hopes to get other farmers involved in producing these materials for the processing plant. The park also aspires to produce starch and hopefully, some day will produce materials for pharmaceutical use.

Dr Nyakudya also acknowledged the university’s responsibility to its community. In line with this responsibility, there is a vision to promote horticulture for both domestic and foreign markets. The university is always on the lookout for partners for these and other projects of the University which has been underreported. Currently, there is a partnership with the Agriculture Marketing Authority (AMA) and SACA will be the stage where these and other matters will be discussed and demonstrated in more concrete terms as Africa comes together to learn and evolve as one continent in the Agriculture arena.

Hezal Lifa writes from Zimbabwe.

Addressing the Impact of Climate Change on Human Mobility at the center of PAFOM deliberations in Kigali

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cherryafrica

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October 21, 2022

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Addressing the Impact of Climate Change on Human Mobility at the center of PAFOM

The African Union (AU) in collaboration with the International Organization for Migration (IOM), and the Republic of Rwanda launched the 7th Pan African Forum on Migration (PAFOM), in Kigali, under the theme: “Addressing the Impact of Climate Change on Human Mobility in Africa: Building Adaptation Strategies and Resilient Communities” on 18 October 2022, to provide a more focused engagement with all relevant Migration stakeholders including Regional Economic Communities (RECs), AU Member States, Ambassadors, private sector, academia, parliamentarians, African diaspora community and civil society organizations in Africa and to discuss among others ways in strengthening continental, regional and national consultation mechanisms on Migration to enhance collaboration among African Union Member States, for sustainable Migration Governance in Africa, and serves as a platform for participants to share experiences and best practices on the impact of climate change, displacement and migration; especially within the context of the COVID-19 pandemic and formulate relevant recommendations on early warning, preparedness, and adaptation strategies, including return and reintegration in communities of origin. The 7th PAFOM also provides a wonderful opportunity for member states to develop a common understanding on the impact of climate induced migration, as they prepare for the COP 27 in Cairo, Egypt in November 2022.

The Senior Officials Meeting of the Pan African Forum on Migration was opened officially by Mrs. Clementine Mukeka, the Permanent Secretary of the Ministry of Foreign Affairs and International Cooperation, Republic of Rwanda, who welcomed the participants of the forum on behalf of the government and people of Rwanda. She further urged the participants from Member States to use the opportunity to reiterate engagements and strengthen collaborations as a continent and develop strategies that work for the continent.

In her keynote address, the Ag. Director for Social Development, Culture and Sports department, Ms. Angela Martins, thanked the Government of Rwanda for hosting the meeting and supporting the participants and guests attending the Forum. She also thanked all delegates, AU partners, specifically, IOM, ILO and IFRC who have been very handy in supporting AU Commission to organize the meeting and for their generous contribution in making this meeting a success. She further highlighted PAFOM as a continental interstates dialogue mechanism that brings together different stakeholder to deliberate on topical migration governance issues affecting the continent and provides an opportunity for sharing of experience, best practices and also develop a continental approach on migration governance issues in the continent.

She acknowledged that climate change is emerging as one of the key drivers of migration in Africa, and that the growing recognition of the nexus between migration and climate change has triggered much debate and policy discussions in Africa and reflecting the growing concern surrounding the impact of climate change in shaping human mobility, on one hand, and on the larger front, how these phenomena have impacts on Africa’s socio-economic development, human welfare and security. “.

Ms. Angela Martin underlined the commitment of the African Union Commission (AUC) to continue supporting Member States by providing technical support in policy development and implementation. These policy initiatives, among others, include: The AU Climate Change and Resilient Development Strategy and Action Plan (2022-2032); The Migration Policy Framework for Africa (MPFA); The Africa Climate Mobility Initiative (ACMI); The Integrated African Strategy on Meteorology (Weather and Climate Services); and The Malabo Declaration on Accelerated Agricultural Growth and Transformation for Shared Prosperity and Improved Livelihoods that commits to “enhancing resilience of livelihoods and production.

The opening session also addressed by Mrs. Aissata Kane, Senior Regional Advisor to the IOM Director General who noted the effect of the climate change, environmental degradation, and disasters on displacement. “In 2021, there were 23.7 million internal displacements related to disasters. Global projections show that up to 216 million people could move internally within their countries by 2050. Sub-Saharan Africa could see as many as 85.7 million climate migrants (4.2 percent of its total population),” said Mrs. Aissata Kane. She called to increase actions to avert, minimize and address displacement linked to climate change and facilitate safe, orderly and regular migration pathways.

A meeting outcome report detailing actionable key Commitments and policy recommendations for Member States and other stakeholders’ implementation on ways of addressing the impact of climate change on migration and displacement governance will be presented for the consideration from relevant Ministers of Migration and Climate related issues during their session on 21 October.

Galvanizing support to build Resilient and Sustainable Food Systems for Food Security and Nutrition in Africa

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cherryafrica

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October 18, 2022

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Galvanizing support to build Resilient and Sustainable Food Systems for Food Security and Nutrition in Africa

The various leaders as well as African Minsters of Agriculture collectively committed to prioritize efforts to address and protect vulnerable populations from the worsening food insecurity as a result of the global food crisis and to strengthen resilience in agriculture and food systems in Africa. The African Union Commission in partnership with the International Federation of Red Cross and Red Crescent Societies (IFRC), the Food and Agriculture Organization of the United Nations (FAO) and the African Development Bank (AfDB) co-convened the high- level conference to advocate for political, humanitarian and financials support as long-term needs and durable solutions to the persistent food insecurity on the continent.

The High-Level Food Security and Nutrition Conference convened on 10th October 2022, which brought together over 300 delegates at the African Union Headquarters in Addis Ababa, highlighted the importance of collaboration and cooperation in fast-tracking efforts to mobilize the political, humanitarian, and financial support to respond to the various shocks currently affecting the continent’s agriculture and food systems.

The high-level delegates and African Minsters of Agriculture declared their commitment to support sustainable food security, transforming food systems, and building a viable, commercial, and productive agricultural ecosystem in Africa. They expressed their determination to channel more investment and resources to agriculture and committed to building stronger partnerships within and outside Africa towards new commitments that will contribute to comprehensive responses to the prevailing food insecurity and malnutrition crises in many parts of the continent.

In her opening remarks, H.E Amb. Josef Sacko stated that “Africa is no doubt facing one of the most alarming food crises in decades. We need to act with urgency and at scale in responding to the current food insecurity and nutrition crisis exacerbated by Russia’s invasion of Ukraine, climate shocks, regional conflicts and the COVID-19 pandemic. She requested the conference to make recommendations that will feed into the Presidential Conference on Food Insecurity slated for early next year, build on the Africa Common Position on Food Systems, and feed into Africa’s position at the COP27 on impacts of climate change on food and nutrition security in Africa.

Mr. Francesco Rocca, President of the International Federation of Red Cross and Red Crescent Societies (IFRC) stated that “hunger is something that being witnessing every day and given the scale of the present food crisis, it’s evident that no country, organisation or institution can handle this alone.” To mitigate this situation, he further called on stronger partnerships as demonstrated at this High-Level Conference and stressed that this is the foundation for succeeding in strengthening immediate response and long-term solutions. Sighting that the IFRC provided cash and food assistance in 2021 by to 4.8 million people and the organization continues to scale up response through the launch of a regional emergency appeal for 200 million CHF that covers 23 affected countries with a focus on reaching 7.6 million people in 14 priority countries. He also advocated for scaling-up efforts to meet the humanitarian imperative across the continent and committed to the common goal of achieving Zero Hunger, a big ambition for all of to deliver against the Sustainable Development Goals and Africa Agenda 2063.”

Dr. Abebe Haile-Gabriel ADG/Regional Representative for Africa, Food and Agriculture Organisation of the United Nations (FAO) noted that “Africa is moving backwards in its efforts to end hunger, food insecurity and malnutrition. One in five people in Africa is going hungry and more than a billion Africans cannot afford a healthy diet.” He indicated further that “The good news is that we have solutions that work. It is encouraging to note that governments are taking actions to respond to these challenges and international partners have been putting in place mechanisms and facilities to support those efforts to reinforce priorities identified in the food systems national pathways, and not to re-invent the wheel or duplicate efforts. He re-iterated that we need to work together, complement each other’s efforts, while recognizing and supporting national and regional African leaderships and scale up proven solutions.

Dr, Martin Fregene, the Director, Agriculture and Agro-Industry at the African Development Bank (AfDB), spoke on behalf of Dr. Beth Dunford, Vice President, Agriculture, Human and Social Development, The African Development Bank informed that the 3 C’s of COVID-19, Climate Change and Crisis of the Russia-Ukraine war) convulsed food production, food prices and food supply on the African continent, resulting in astronomical increase in household budgets for food. The AfDB working with AU and several other partners are assisting Africa to take advantage of its vast savannas, numerous rivers and manpower to transform the continents land into bread baskets for itself and other. He indicated further that on May 23 2022, the AfDB Board of Directors approved 15 Billion US dollars for an African Food Production Plan. In a bid to implement the plan, the AfDB in collaboration with the AU held a high-level meeting with African Ministers of Agriculture and Finance, to ensure that Africa does not suffer from the 30 million loss of food from Russia and Ukraine. The Bank has so far approved 25,000 individual loans and grants worth 1.3 billion dollars to provide 20 million farmers with fertilizer and seeds to raise local food production. He invited participants to join a meeting in Dakar scheduled for January 2023 to mobilize commitment for raising food production in Africa and fixing the structural problems t confronting the continent.

As a result of the catastrophe unfolding in the Horn of Africa which has endured four consecutive episodes of severe drought and a fifth one is in the offing, a special ministerial session on the Horn was organised as part of the event. The session which was addressed mainly by Ministers and Partners in the subregion noted that Ethiopia, Kenya and Somalia make up 2 percent of the world’s population, yet these three countries are home to 70 percent of the world’s most extreme food insecure. Over 18 million people across Somalia, Ethiopia and Kenya are already on the verge of starvation—half of them children and women while some were already dying. Yet, the crisis has struggled to attract the attention and funding it desperately requires.

The report of the Civil Society Organizations (CSO) forum on food security and nutrition that preceded the conference was also presented. The forum brought together local, national, and regional, humanitarian and development actors, including women, youth and refugees. The report highlighted the need for development partners and national government to work together to raise ambitions, align approaches, minimize duplication, and maximize resources to address the current crisis in the immediate medium and long-term in recognition of the critical role of civil society in tackling the food security crisis now and in the years to come and to explore, discuss, and agree on locally led solutions.

The call to action was presented by Commissioner Josefa Sacko, calling on the all stakeholders to build on the AU theme of the year to build resilience in nutrition and food security, by prioritizing and intensifying action to alleviate the current food security challenges on the continent; leverage all platforms such as the COP27; and to reinforce the commitment to achieve zero hunger by investing in nutrition and resilience in food system especially by countries affected by conflict and climate change. She also called for increase commitment in supporting the African union normative frameworks and declaration to eradicate African vulnerabilities in the agriculture sector, mitigate food security and malnutrition on the continent and support to the Comprehensive African Agriculture Development Programme(CAADP) initiative.

In closing, Dr. Agnes Kalibata, the President of Alliance for a Green Revolution in Africa (AGRA) commended the Africa Union, and its International partners and other stakeholder that came together to organize the conference for the success achieved and their commitments to end the food crisis on the continent.

Gambia Set for Bouncy GDP Growth

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cherryafrica

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October 6, 2022

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Gambia’s economy is expected to grow by 6.8 per cent in 2022, according to the finance minister, Mambury Njie. All sectors of the GDP are expected to register increased growth rates, indicating a bouncy and inclusive performance. The announcement came amid concerns that the country’s economic growth was tied to covid-19, Ukraine-Russia war and fears that the collapse of Thomas Cook Group could jeopardise efforts by one of Africa’s smallest countries to revive its fortunes.

Gambia, a $1 billion West African economy surrounded by Senegal aside from its access to the Atlantic Ocean, depends on tourism for nearly a third of its gross domestic product. Thomas Cook typically flew in 45 per cent of tourists that visited its white-sand beaches during the six-month peak season, according to official data.

“The GDP figures may be revised downwards because of Thomas Cook’s absence,” said Nyang Njie, an economist with consultancy firm Knowledge Bank Consortium Gambia. The country “doesn’t have time to adjust because the tourism season is starting,” he said.

The finance minister said the agriculture sector is estimated to grow from 4.5 per cent in 2021 to 6.3 percent in 2022. He said: “This increase is on account of the largest sub-component of agriculture – crops and forestry which are projected to record improved growth rates.”

Minister Njie further said the domestic revenue has been projected to increase to D17.6 billion compared to D13.7 billion estimated in 2021. He added: “This is a 16 per cent increase which is equivalent to D4.1 billion. Both tax and non-tax revenues are the sources of the increase as the government is improving efficiency of revenue collections and limiting the revenue loss through the granting of duty waivers.

“Total grants are projected to increase slightly by 2.3 percent from D12 billion in 2021 to D12.3 billion in 2022. The slight increase is due to a decline in programme grants as support that was received in 2021 for the Covid-19 pandemic would not be forthcoming in the coming year. This was however offset by a greater increase in project grants.”

Furthermore, he said as part of the government’s efforts for fiscal consolidation, total expenditure is expected to increase slightly by less than 2 per cent from D31.8 billion in 2021 to D32.2 billion in 2022.

“This is due to a significant decline in other current expenditures as much of the Covid-related health expenditure made in 2021 are not factored in the 2022 budget estimates,” he remarked.

The Minister reminded the audience that prior to the global Covid-19 pandemic, the country had faced a wide range of political, social, economic, and environmental challenges.

“Yet throughout these challenges, the Barrow government continued to open the door of opportunities and launched much-needed reforms across all sectors of the economy,” Minister Njie said.

He also said these include macroeconomic and economic governance reforms, better management of the country’s natural resources, and the development of human capital.

“We also undertook reforms in our security sector while striving to harness the potentials of digitalisation, multilateralism, global trade, and data for development,” he said.

However, there have been concerns that with all these projections, the Gambia, being one of the countries with the highest debt in Africa, will struggle to meet its target. The country has over D88 billion domestic and international debt.

However, Momodou Sabally, a former banker and budget director, said: “Economic recovery for a country facing debt distress obviously starts with fiscal austerity; to restore the fiscal balance in order to cut down borrowing and reduce inflation stemming from deficit financing.

“Unfortunately, the Gambia government is doing the very opposite of that by implementing a massive 30 per cent salary increase that is sure to worsen the extant structural fiscal deficit. A disciplined central bank could be of help. But instead, the Governor of the central was on the front page of Standard a couple of months ago calling on commercial banks to lend to the government.”

Too much damage, Sabally added, has already been done to this economy.

“But a scaling down of public expenditure should help; and the central bank that was seen increasing their policy rate recently to stem inflation, should avoid being an accomplice to the current fiscal hinge of the Finance Ministry,” he added.

HAPPY HEROES DAY FROM ZIMBABWE

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cherryafrica

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August 16, 2022

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HAZEL LIFA

Following the devastating implications of Covid-19 Zimbabwe was forced to celebrate its National Heroes’ Day virtually for the past two years. That came to an end this year with celebratory formalities marking the 42nd Heroes Day Commemoration in the nation’s capital, Harare last week. The national holiday holds sentimental value to Zimbabwe as it looks at the African nation’s experience of colonisation and how arms were taken up and freedom fought for.

The mid-1940s through to the 80s constitute a historical, busy and not-to-forget dangerous period that saw many African countries fight for their independence from European colonial rule, a rule that more often than not, oppressed the black majority at every turn and evoked the response of war, and Zimbabwe was no exception. The southern African country’s ‘Chimurenga’ war otherwise known as ‘Umvekela’ (which loosely translates to ‘revolutionary struggle’) orchestrated the creation of many soldiers.

Heroes’ Holiday

The National Heroes’ Day holiday was declared in 1980 shortly after Zimbabwe gained independence from Ian Smith’s Rhodesian Front. To go along with the holiday is a lavish monument that serves as the resting place of Zimbabwe’s war heroes called the National Heroes Acre. Zimbabwe celebrated the holiday on the stipulated second Monday of every August.

The holiday and the dedicated shrine have a symbolic meaning to the people of Zimbabwe who celebrate the brave men and women that laid down their lives in hopes of furthering the Chimurenga war efforts. The day is characterised by music, dance and speeches from the nation’s leaders particularly the president during a nationally televised celebratory event held at the Heroes’ Acre annually. Schools and most businesses do not operate on this day and the following day is known as National Defence Forces Day.

This Year’s Presidential Address

Zimbabwean President, Emerson Mnangagwa addressed dignitaries, armed forces and family members of national heroes for the first time in person since the covid-19 pandemic broke. In his speech he stated:

“It is my singular honour and privilege to be addressing you all, at this Forty-Second commemorations of our National Heroes Day. This day reminds us that we are not an ordinary people; neither are we an ordinary nation. Our collective ancestry has ingrained in us, the resilient and warrior spirit of our forebears, who were ingenious innovators, builders, explorers, enterprising traders and yes, gallant fighters…”

“…Zimbabwe has come a long way as a nation born out of a protracted armed liberation struggle, and we have scored victory upon victory since the attainment of our hard-won Independence in 1980. Today, we stand tall among the liberated and independent peoples of the world, as masters of our own destiny.”

“…As I conclude, I once again call upon us all to honour our heroes and heroines by demonstrating unflinching patriotism and loyalty to our beloved motherland, Zimbabwe. Those we are paying homage to, fought for our independence knowing no tribe but bonded together by their love for Zimbabwe and desire to see our people free. Let us carry the baton as heroes and heroines of this period, right from within our communities. Every one of us is enjoined to play their part. There can be no spectators.”

President Emerson Mnangagwa also bestowed the honour of being declared a national hero to a few more individuals like the late Reverend Ndabaningi Sithole and the late Cde James Chikerema this year.

Who Qualifies and Why

In line with the National Heroes Act only the President can bestow the status on individuals, “where the President considers that any deceased person who was a citizen of Zimbabwe has deserved well of his country on account of his outstanding, distinctive and distinguished service to Zimbabwe, he may, by notice in Gazette, designate, such a person a national, provincial or district hero of Zimbabwe.”

Being declared a national hero is the highest honour that can be bestowed on a Zimbabwean citizen. The ‘Hero’ status is classified by three categories; national, provincial and district which is determined by the level of contribution one made during or after the liberation struggle and dealt with on a case-by-case basis.

While most war veterans may be declared national heroes at one point or another; serving uniformed citizens and other prominent figures can be awarded the honour depending on the magnitude of their contribution to Zimbabwe’s freedom and maintaining it.

At the moment almost 200 heroes and heroines are buried at the monument. Among them are prominent historical figures like Joshua Nkomo and former President Robert Mugabe. Military personnel like Retired Major General Gideon Taurayi Rodello Lifa and Air Commodore Mike Tichafa Karakadzai can also be found there. The monument also caters to individuals who disappeared during the liberation struggle like E. Sithole and E. Dube who haven’t been heard from since 1975 and 1973 respectively. Civilians with extraordinary contributions to Zimbabwe’s glory may also be awarded national heroes. For instance, the late legendary musician, Oliver Mtukudzi was granted national hero status in 2019.

The Heroes’ Acre Monument

The National Heroes’ Acre (or Heroes Acre) monument is located on 23 hectares of land on a ridge seven kilometres from Harare along Bulawayo road on the N1 highway. The monument consists of burial sites, murals, a museum and the iconic tomb of the unknown soldier. The monument’s architectural layout is modelled after two AK47s positioned back to back, while the grave arrangement is meant to serve as the guns’ magazines (or ammunition).

The monument’s construction began in September of 1981 and it took ten Zimbabwean and seven North Korean architects and artists to come up with the layout. One of the most notable features of the heroes’ monument is the tomb of the Unknown Soldier. The tomb pays homage to the tens of thousands of unidentified liberation fighters who did not make it home. The tomb is a bronze statue of one female and two male soldiers in uniform holding an AK47, a flag and a bazooka respectively.

The monument also has an eternal flame that rests on top of the tower modelled after the AK47s that was lit during independence celebrations in 1982. The flame represents the spirit of Zimbabweans. The tower stands at a staggering 40meters high, can be seen from most parts of the city of Harare and is the highest point at the Heroes Acre. The monument is decorated with murals that depict Zimbabwe’s colonial experience, the chimurenga war and historical events surrounding the nation’s independence.

To further elaborate on the heroes’ acre’s significance and the history of it all is in a museum located on site. This museum has documents, photographs, artefacts and significant items linked to the chimurenga war.

The Materials

E. Zaranyika penned a poem dedicated to fallen liberation fighters in 1983, on the eve of Zimbabwe’s Independence Day.

I conclude with a few words from Mary Roach, “Heroism doesn’t always happen in a burst of glory. Sometimes small triumphs and large hearts change the course of history.”

On this our day of liberation

We turn eyes to you

Our brothers and sisters;

The fallen heroes of Zimbabwe

Our hearts bleed for you,

Yet we know we must not grieve;

For in you is our rebirth;

You are all that we shall ever be.

Hazel…………is………….

Ministers of Finance conclude discussions on access to finances; debt restructuring and Africa’s credit rating

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cherryafrica

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July 30, 2022

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African Union Member States Ministers of Finance, Monetary Affairs, Economic Planning, and Integration concluded their deliberations focused on “Improving Africa’s access to Capital: Debt Management and the Rising Influence of Credit Rating Agencies”. The meeting convened under the 5th Ordinary Session of the Specialized Technical Committee made far-reaching recommendations on assessments by Member States, on the state of debt crisis in their respective countries as way of promoting transparency and accountability, which in turn facilitates debt restructuring and reduces vulnerabilities. The Ministers of Finance and Central Bank Governors further recommended for the establishment of a regulatory institution in Africa in order to strengthen mechanisms on tax transparency, effective and prudential fiscal management, and combating illicit financial flows.

The Ministers reiterated the need to establish an African Credit Rating Agency on the basis of self-sustainability, political and financial autonomy, and adopted the Tax Strategy and the Strategy on curbing Illicit Financial Flows (IFFs). The STC meeting accepted the proposal of Afreximbank and ATIA to be designated as Specialized Agencies of the African Union. The STC requested African Union Member states to ensure a significant proportion of their annual budgets are committed to the financing of industrialisation projects, supported by prudential taxation policies and practices to enhance domestic resource mobilization, to minimise rigidities in credit creation.

H.E. Hichilema Hakainde, President of the Republic of Zambia, in a statement read on his behalf by Hon. Situmbeko Musokotwane, Minister for Finance and National Planning of Zambia observed that the national incomes for African countries have remained low, coupled with high inequality and poverty rates which he noted as partly due to huge infrastructure deficits, low levels of human development, and low levels of private investment. To address this the President underscored the need for Africa to access to low-cost capital and establishing a predictable, competitive, and stable economic policy environment. “I am greatly convinced that, the importance of the African Union Financial Institutions has been well established and very well-articulated in a way that it has now become common knowledge amongst the wide variety of stakeholders involved in this inspiring and expected ground-breaking journey. To address longer-term challenges and achieve financial stability and autonomy, there is need to speed up the operationalization of African financial institutions as indicated in Article 19 of the Constitutive Act of the African Union”.

According to the Tax Transparency in Africa 2021: Africa Initiative Progress Report, Financial resources available for Africa’s development are limited, and have been decreasing since 2010 with the sharp decline of commodity prices after the global financial crisis. The amount of financing per capita decreased significantly during the period 2010-18 for both domestic revenues and external financial flows, by 18% and 5% respectively.

African Union Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, Amb. Albert Muchanga reiterated the need to accelerate domestic resource mobilization to reduce reliance on foreign capital. Agenda 2063 stipulates that for it to be fully and effectively implemented, 75-90% of financial resources must be mobilized domestically across Africa. He added, “as we harness the spirit of innovation, one key issue that we need to realize is that the African Union is a source of value creation. It is a brand that is lucrative politically, diplomatically, strategically; and, inter-alia, commercially. Therefore, African Union policy organs like this Specialized Technical Committee need to come up with ways and means of transforming this source into value capture to drive our progress as a continent, and in this way, relying on our own resources.”

Chair of the Bureau of the STC and Deputy Minister for Finance of the Republic of Ghana, Hon. Dr. John Ampontuah Kumah noted that additional structural reforms such as debt restructuring and reprioritizing public spending are required to ensure long-term debt sustainability. “We need to collectively work together to transform Africa into a global powerhouse of the future. Reconfiguring the global debt relief architecture, including reinstating the Debt Service Suspension Initiative (DSSI), will be crucial in supporting debt-ridden African countries’ transition towards a path of sustainable debt in the medium to long term”.

Learn more about the 5th Ordinary Session of the STC took place on 18-20 July 2022 in Lusaka, Zambia here.

NATIONAL LAUNCH OF THE CATALYTIC ACTIONS OF THE AU-ILO-IOM-ECA “JOINT PROGRAM ON LABOUR MIGRATION GOVERNANCE FOR DEVELOPMENT AND INTEGRATION IN AFRICA (JLMP-ACTION)” IN ETHIOPIA

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cherryafrica

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July 30, 2022

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The “Catalytic Actions of the Joint AU-ILO-IOM-ECA Programme on the Governance of Labour Migration for Development and Integration in Africa (JLMP Action)” project was launched in Ethiopia. This was the latest national launch for selected African Union Member States and Regional Economic Communities (RECs), following similar unveilings in Malawi, Cote d’Ivoire and Cameroun over the past few months.

‘JLMP Catalytic Action’ is one of several projects making up the AU-ILO-IOM-ECA Joint Programme on Labour Migration Governance for Development and Integration in Africa (JLMP) that was launched in 2015 to implement the 5^th Key Priority Area of the Declaration and Plan of Action on Employment, Poverty Eradication and Inclusive Development adopted by the Assembly of Heads of States and Governments in 2015 (AU/Assembly/AU/20(XXIV)/Annex 3, January 2015). The Programme is strengthening the governance and regulation of labour migration in Africa, in line with the First 2023 Ten Year Plan of the AU’s Agenda 2063 and of the UN Sustainable Development Goals (SDGs).

The ceremony was attended by officials of the African Union Commission (AUC), the government of the Federal Democratic Republic of Ethiopia, the Embassies of German, Switzerland and Sweden, who are funding the Programme, as well as the International Labour Organization (ILO), International Organization for Migration (IOM) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), who are implementing partners. Also in attendance were representatives of the Intergovernmental Authority for Development (IGAD), the Common Market for East and Southern Africa (COMESA) and of labour organizations.

In her remarks, Minister of Labour and Skills Development for Ethiopia, H.E. Muferihat Kamil said, “Improving labour migration governance, strengthening the protection of migrant workers’ rights, and making regular labour more accessible requires the concerted efforts of different stakeholders. Therefore, role of JLMP in this regard is paramount. “She also highlighted the need to create an interface and integration of the various regional and continental platforms and initiatives already in place towards improving, labour migration governance, strengthening the protection of migrant workers’ rights and making regular labour migration more accessible.

The African Union’s Commissioner for Health, Humanitarian Affairs and Social Development, H.E. Amb. Minata Cessouma Samate said, “As the African Union Commission, our mandate includes promotion of safe, orderly, dignified and regular migration, as well as, providing support for the implementation of Member States’ policies on labour, employment, population, health and migration. We remain committed to supporting you to implement the priorities you have identified, to facilitate experience sharing with other Member States and to strengthen linkages with other complementary processes”. She also called upon Member States to ratify the AU Protocol on Free Movement of Persons and all relevant international and regional instruments improving the protection of migrant workers, support the development and implementation of the African Qualifications Framework for adequate skills and recognition of qualifications in order to achieve the vision of Agenda 2063 and to actively participate in continental dialogues on labour migration and develop a common position for engagement with other regions on the welfare and benefits of African migrant workers.

Acting Chief of Mission of IOM Ethiopia and Representative to AU and ECA, Mr. Jian Zhang reiterated that IOM, in collaboration with the AUC and ILO, will implement JLMP activities in alignment with national policies and priorities with key initiatives including supporting the formulation of a gender-responsive labour migration policy, assisting relevant authorities in collecting and utilizing sex-disaggregated data on labour migration, capacity building initiatives for various stakeholders on labour migration governance and ethical recruitment to ensure the rights of migrant workers are promoted at all levels.

“ILO has a large project portfolio on labor migration in Ethiopia. Today, we are proudly adding to it the JLMP Action that focuses on effective management of labor migration and labor migration governance for development,” added Ms. Ruchika Bahl, Chief Technical Advisor for ILO Ethiopia.

H.E. Tamara Mona, the Ambassador of Switzerland to Ethiopia and South Sudan, reiterated that tangible improvements in promoting better labour migration governance will only happen if there is change at the national and community level, commending Ethiopia for agreeing to implement the JLMP. “Let me assure you that Switzerland’s commitment to supporting the government Ethiopia, the African Union and its Member States to implement this programme to achieve sustainable development in Africa is long term, in line with the JLMP strategic framework, and we also encourage other development partners to join forces in supporting this important Programme,” she added.

Mr. David Schwake, speaking on behalf of the German Government, noted that free movement and mobility of workers is crucial to advancing regional integration on the continent and pledged support to the Joint Labour Migration Programme so as to achieve better governance of labour and skills mobility in Africa.

In his opening remarks, IGAD representative, Mr Ibrahim Kasso, Coordinator for Regional Migration Fund speaking on behalf of Executive Secretary, H.E Dr. Workineh Gebayehu, welcomed the implementation of the JLMP in Ethiopia and IGAD pledging full commitment to support the implementation of the projects activities so as to address the migration challenges experienced in the region including irregular migration, inadequate labour governance, lack of reliable labour migration data and limited ratification and implementation of international standards.

The official launch is followed by a two-day capacity building workshop on labour migration governance and administration to familiarize stakeholders in the country with trends in labour migration, steps to improve the national framework for labour migration governance and administration, labour migration data, and other issues.