African Leadership Magazine September 2024 Edition

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Dr. Ken Giami

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It’s Africa’s Time: A Journey of Progress and Promise

I woke up this morning reflecting upon and nodding to the rhythm of Shakira’s FIFA 2010 World Cup (TM) song, ‘This Time for Africa,’ and was filled with awe at how much progress Africa and Africans have made globally. As I thought about Africa’s journey from the days when a major international publication referred to her as the ‘hopeless continent’, I couldn’t agree more that this was Africa’s century, Africa’s time!

The African continent brims with potential and progress. Often called the cradle of humanity, Africa is emerging as a beacon of innovation, resilience, and growth. The hope for humanity’s food security and the future of tomorrow’s global workforce lies in today’s youthful Africa. Little wonder there is an ongoing rush to engage the continent -both from the good, bad and ugly. This is truly Africa’s time, and the world is taking notice.

This refreshing narrative can be seen in many ways; however, I shall focus on only the following areas:

A Rebound in Economic Growth

Africa’s economic landscape is transforming at an unprecedented pace. According to the African

Economic Outlook, the rebound in Africa’s average growth includes a rise to 3.7% in 2024 and 4.3% in 2025, exceeding the projected global average of 3.2%. Of this figure, 17 African economies are projected to grow by more than 5 percent in 2024. This story has been consistent, with Africa accounting for 6 of the 10 fastest-growing economies over most of the last 15 years.

“Africa is no longer the sleeping giant. It is awake, and it is on the move,” said Akinwumi Adesina, President of the African Development Bank. His words resonate with the palpable energy and ambition that permeate the continent.

Technological Innovation and Entrepreneurship

Africa is also becoming a hub for technological innovation. The rise of tech hubs in cities like Nairobi, Lagos, and Cape Town has earned Africa the moniker “Silicon Savannah.” In 2020, African tech startups raised over $1.4 billion in funding and almost $800 million in the first half of 2024 alone, a testament to the continent’s burgeoning tech ecosystem.

One inspiring story is that of Flutterwave, a Nigerian fintech

company that has revolutionized online payments across Africa. Founded in 2016, Flutterwave has facilitated over 140 million transactions worth over $9 billion. Its success story is a beacon of hope for aspiring African entrepreneurs.

Education and Empowerment

Education is the cornerstone of Africa’s progress. The continent has seen a significant increase in school enrollment rates, with UNESCO reporting that primary school enrollment in Sub-Saharan Africa reached 80% in 2018 and is growing year on year. Moreover, initiatives like the African Union’s Agenda 2063 aim to transform Africa into a global powerhouse through education and skill development.

Dr. Ngozi Okonjo-Iweala, the first African and first woman to lead the World Trade Organization, and that of Dr Tedros Gebreyesus of the World Health Organization exemplify the power of education and empowerment as Africans continue to occupy strategic positions globally and contribute to solving some of humanity’s biggest challenges. Their successes, and especially those of the African diaspora, are a testament to the boundless potential

that education unlocks. This is without prejudice to the extraordinary work still required in the education sector across the continent.

Cultural Renaissance

Africa’s cultural influence is also making waves globally. The continent’s rich heritage, music, art, and fashion captivate audiences worldwide, driving Africa’s global soft power. The global success of artists like Burna Boy and Wizkid, who have brought Afrobeat to the international stage, highlights Africa’s cultural renaissance.

In the words of Nelson Mandela, “The cultural heritage of Africa is the most precious treasure we have.” This treasure is now being shared with the world, enriching global culture and fostering a deeper appreciation for Africa’s diverse traditions. It is Africa’s time and African rhythms are danced to in malls, and stadiums from India to Brazil and worldwide.

In the Climate space, Africa’s forests may be humanity’s hope in addressing global environmental challenges. Wangari Maathai, the first African woman to win the Nobel Peace Prize, once said, “It’s the little things citizens do. That’s what will make the difference. My little thing is planting trees.” Her legacy lives on through the millions of trees planted across Africa, symbolizing hope and resilience.

The continent is rising, driven by the indomitable spirit of its people, the richness of its culture, and the promise of its future. As Africa continues to make strides in economic growth, technological innovation, education, cultural influence, and environmental stewardship, it is clear that the world must pay attention.

In the words of Kwame Nkrumah, “We face neither East nor West; we face forward.” Africa is moving forward, and its journey is one of inspiration, progress, and boundless potential. This is Africa’s time, and the world is watching in awe.

Africa’s economic landscape is transforming at an unprecedented pace. According to the African Economic Outlook, the rebound in Africa’s average growth includes a rise to 3.7% in 2024 and 4.3% in 2025, exceeding the projected global average of 3.2%. President of the African Development Bank, Dr Akinwumi Adesina; Deputy President of South Africa HE David

Mabuza; and Dr Ken Giami, Chairman of African Leadership UK at an ALM event in Johannesburg

The Power of the African Diaspora: African-American Businesses in Africa

Key Voices Shaping Africa’s Business and Economic Landscape 82

Green Ports and Trade Connectivity: A Conversation with Akif Ali Khamis, Zanzibar Ports Corporation (ZPC) 74

BOLD REFORMS, IMPACTFUL LEADERSHIP, AND SOUTH SUDAN’S ECONOMIC RESURGENCE

In this exclusive interview, we sit down with Dr. James Alic Garang, the Governor of the Bank of South Sudan. His professional journey is a remarkable tale of resilience and dedication, reflecting the tumultuous history of South Sudan itself. Born in the village of Northern Bahr el-Ghazal during a time when exact birth years were often estimated based on significant historical events, Dr. Garang’s path has been anything but conventional. From the perilous trek to Ethiopia as one of the Lost Boys of Sudan to completing his education in refugee camps and eventually earning his degrees in the United States, his experiences have profoundly shaped his strategic vision for the Bank of South Sudan. Returning to his homeland in 2011, Dr. Garang has been deeply involved in economic and financial sector development, contributing his expertise to various national and international institutions. His tenure at the World Bank in Dubai and later at the International Monetary Fund in Washington has provided him with invaluable insights into global financial policies, which he now leverages to drive economic stability and development in South Sudan. Dr. Garang’s leadership at the Bank of South Sudan is characterised by a commitment to transparency, accountability, and modernization, with a particular focus on establishing an efficient national payment system, enhancing staff welfare, and expanding financial services across the nation. Through these efforts, he aims to transform the Bank into a cornerstone of economic stability and growth, fostering a brighter future for South Sudan

Excerpt

Please tell us about your professional journey that led you to become the Governor of the Bank of South Sudan. How have your experiences shaped your strategic vision for the bank?

I am James Alic Garang from Northern Bahr el-Ghazal, South Sudan. My exact birth year is uncertain, as I was born in a village before the era of hospitals. My mother estimated my birth year based on significant events, such as the signing of the 1972 peace agreement between Sudan and South Sudan rebels. In 1987, I moved from my home to Ethiopia, walking for three months. Along with about 20,000 young boys known as the Lost Boys of Sudan, I received education and training there until we were forced to return to South Sudan in 1991. We then relocated to the Kakuma refugee camp in Kenya, where I completed high school.

In 2001, I arrived in Salt Lake City, Utah, as part of an American government initiative. I attended college, graduating in 2005, the same year South Sudan gained autonomous status. In 2006, I visited my family in South Sudan after 19 years. I then pursued a graduate programme at the University of Massachusetts, Amherst, and interned with the African Development Bank in 2009-2010, which greatly influenced my economic and development perspectives.

One of our biggest projects is the national payment system, supported by the African Development Fund and the East African Community. This system enables real-time settlements and incorporates a national switch for monitoring capital flows

Our vision is guided by transparency, accountability, and independence, ensuring greater transparency in operations and accountability to Parliament and the presidenc

Returning to South Sudan in 2011, I worked on research related to SMEs and financial sector development. In 2013, I joined the World Bank in Dubai, gaining valuable insights into global financial policies. These experiences shaped my strategic vision for the Bank of South Sudan, focusing on economic development and stability.

In 2014, despite the conflict, I returned home and joined Upper Nile University as an assistant professor, eventually becoming the Deputy Dean of the College of Economics and Social Studies. I also conducted research and advised the government.

Later, I worked for the IMF in Washington, advising on policies for 23 countries. This role allowed me to meet influential individuals and further refine my vision for economic stability.

My journey from a young child leaving home to a soldier, refugee, and then an economist has been shaped by the kindness and support of many people. These experiences have informed my vision for the Bank of South Sudan, emphasising transparency, accountability, and independence.

What is your strategic vision for positioning the Bank of South Sudan as a cornerstone of economic stability and development? How are you aligning the bank’s mission and operations to achieve this vision?

The vision of the Bank of South Sudan is to advance and expand financial services, transforming it into a modern central bank. This involves three critical elements:

1. National Payment System: We aim to establish an efficient national payment system to reduce reliance on cash transactions and promote digital financial services. This requires educating the public to embrace digital money.

2. Staff Welfare: We prioritise the

welfare of our staff by providing comprehensive training, benefits, and a conducive working environment. This enhances productivity and loyalty, driving the bank’s success.

3. Expanding Financial Services: We are committed to extending financial services to all states, bringing government services to local communities. The 2018 peace agreement has allowed us to open branches in various states, fostering private sector growth.

Our vision is guided by transparency, accountability, and independence, ensuring greater transparency in operations and accountability to Parliament and the presidency.

How would you describe your leadership style?

My leadership style is participatory and consultative, rooted in inclusivity, fairness, and diversity. I believe in bringing everyone on board to harness diverse perspectives and expertise. This approach reduces the risk of errors and ensures more effective decisionmaking.

I emphasise fairness and diversity in gender, regional representation, and opinions. No committee at the Bank of South Sudan is formed without female representation, and regional diversity is equally important. I value the unique contributions of each team member, fostering a sense of belonging and commitment to our collective goals.

How do you ensure that your team follows the vision or idea you are trying to implement, especially when it involves significant changes from previous practices?

Change management involves informing the team about the new vision, gathering their views, and addressing resistance individually or collectively. Ensuring everyone has a role in different

aspects of the organisation promotes a sense of value and involvement.

Establishing a hierarchy where certain directives must be followed is crucial. Addressing non-compliance by emphasising the necessity of participation and finding ways to work around resistance ensures the realisation of the vision.

Can you discuss some of the key reforms you’ve implemented and their impact on the country’s banking system?

One of our biggest projects is the national payment system, supported by the African Development Fund and the East African Community. This system enables real-time settlements and incorporates a national switch for monitoring capital flows. We have signed an MOU with the Ministry of Finance to avoid monetizing deficits, limiting central bank lending to the government.

Improving communication with stakeholders has been a priority, enhancing transparency and accountability. These reforms are designed to modernise our banking system and strengthen our economy.

What role do you see the bank playing in promoting financial inclusion?

We encourage commercial banks to establish branches in various states and take further steps towards financial inclusion. Despite challenges like low borrower incomes and weak enforcement of contracts, we remain committed to enhancing financial inclusion.

What was your approach to addressing inflation challenges?

Inflation has been driven by internal conflicts and external shocks like the COVID-19 pandemic. We have implemented measures to support supply-side policies, particularly through government investments in agriculture. Managing liquidity and limiting excessive cash withdrawals have been crucial steps in mitigating inflationary pressures.

Could you elaborate on your intervention approach to addressing forex and exchange rate volatility?

We have introduced a term deposit scheme and a reference rate for banks to use as a benchmark. Restructuring the informal currency market and addressing the scarcity of US dollars

One of our biggest projects is the national payment system, supported by the African Development Fund and the East African Community. This system enables real-time settlements and incorporates a national switch for monitoring capital flows

have been key initiatives. Ensuring compliance with regulations and promoting transparency in currency trading are ongoing efforts.

In summary, we are actively implementing measures to stabilise exchange rates, promote transparency, and ensure financial regulations are upheld for the benefit of our economy and its stakeholders.

Based on what you’ve said so far, it seems creating financial literacy awareness against inflation and currency management is crucial. What steps are you taking to create such programmes?

Current Initiatives: Currently, we haven’t undertaken extensive initiatives in financial literacy, but we recognise its importance. Drawing from Kenya’s experience between 2005 and 2008, Equity Bank invested significantly in financial literacy programmes, focusing on educating people, especially women, on effective business management, accessing loans, and expanding enterprises. The success of these efforts has demonstrated the positive impact of financial literacy on economic empowerment.

Recent Efforts: Inspired by these insights, the Bank of South Sudan hosted a national economic conference last year to gather public views on our country’s challenges and potential solutions. Following these discussions, it was recommended that we take proactive steps in public awareness and education. In March, we organised our first public awareness conference at the Radisson Blu Hotel, where we outlined the bank’s mandates, operational guidelines, and future plans. The response was positive, with many participants appreciating our efforts.

Future Plans: We are committed to expanding our public awareness initiatives and enhancing financial literacy across South Sudan. We recognise there is much more to be done and are eager to learn from best practices to tailor programmes that will effectively address financial management challenges in our country.

Dr. Alic, I’d like to look at economic growth, resilience, and sustainability in the country. Given the country’s reliance on oil, what are the strategic policies going forward to diversify the economy? What sectors are you focusing on?

We are committed to expanding our public awareness initiatives and enhancing financial literacy across South Sudan. We recognise there is much more to be done and are eager to learn from best practices to tailor programmes that will effectively address financial management challenges in our country

Looking ahead, while there’s a global push towards net zero emissions by 2030, South Sudan remains focused on harnessing its natural resources, including oil and agriculture. Agriculture, with its competitive advantage and the Nile River’s potential for irrigation, holds promise

Current Economic Strategies: Economic growth encompasses various sectors, both governmental and private, amid challenges in the oil sector. This year’s growth projections may be modest due to oil production disruptions. However, several initiatives are underway to expand other sectors. The government is actively promoting agriculture despite challenges like seed and equipment shortages. Agriculture is critical for sustainable growth and development.

Sectoral Focus: Policies are being developed, particularly in gold mining, chaired by the Ministry of Mining. Efforts include studying successful models from countries like Tanzania for a gold purchase programme and regulating artisanal production to curb smuggling. Additionally, improving the national payment system infrastructure is underway to support service efficiency and economic transactions. Key sectors targeted for growth include agriculture, mining (gold), and services, with a focus on enhancing payment system services to facilitate economic activities and improve efficiency.

Acknowledged Challenges: Challenges such as oil dependency and infrastructure/resource shortages are acknowledged, with ongoing efforts to address them through effective policy implementation.

Historically, South Sudan has heavily relied on oil for government revenue. What would be an ideal percentage for this reliance to drop down to?

Current Revenue Structure: Oil used to constitute 98% of government revenue, but due to decreased production, this reliance has dropped, making it challenging to meet financial obligations.

Future Projections: Looking ahead, while there’s a global push towards net zero emissions by 2030, South Sudan remains focused on harnessing its natural resources, including oil and agriculture. Agriculture, with its competitive advantage and the Nile River’s potential for irrigation, holds promise. Achieving a 50/50 balance between oil and other sectors over time seems reasonable. Oil remains crucial for jumpstarting the economy, echoing Ha Joon Chang’s perspective on gradual economic diversification. Dependence solely on oil is unreliable, and diversification is essential for sustainable growth.

Dr. Alic, when we look at attracting investors to South Sudan, what policies and initiatives have you implemented to create a conducive environment for them, whether through legal frameworks or other policies?

We are part of the East African Community (EAC) and are embracing policies to harmonise with the region. This includes policy harmonisation and improving payment systems, similar to the East Africa payment system

Investment Environment: Currently, this is an area where we’ve made limited progress. The government has established a one-stop shop for investment, consolidating functions previously handled by the Revenue Authority and Ministry of Trade into the Ministry of Investment after the peace agreement.

Legal Protections: We have robust laws in place to protect and facilitate investments, although significant inflows have yet to materialise due to lingering public sentiment and investor confidence issues. Ensuring capital mobility is crucial. Investors in South Sudan enjoy unrestricted repatriation of profits, unlike in other regions with capital controls. This freedom serves as a strong incentive across sectors like gold mining, agriculture, timber, and livestock.

Ongoing Challenges: Despite challenges, South Sudan remains open for business, aiming to dispel misconceptions and attract investors with clear legal protections and operational freedom.

What is being done to enhance regional cooperation in financial and economic matters, both within East Africa and internationally?

Regional Integration: We are part of the East African Community (EAC) and are embracing policies to harmonise with the region. This includes policy harmonisation and improving payment systems, similar to the East Africa payment system.

Cooperation Goals: We are focused on cooperating with others to deliver on convergence criteria. There are four of them, intended to be achieved at a certain point in the future, allowing all regional members to agree on having a single currency. One area where we cooperate extensively is ensuring inflation is stabilised around 8%. Few countries have met this, but South

Sudan, due to ongoing conflict, hasn’t achieved this criterion.

Economic Growth Targets: Additionally, economic growth of 4% per annum is a target. Countries like Tanzania and Kenya have achieved this, but South Sudan has struggled due to conflict. Uniform growth across the region is desired.

National Debt Management: We would also like to see national debt as a percentage of GDP lowered. South Sudan has met one criterion: although we have small loans here and there, they are not significant. The reason why we’re not attracting larger investments is due to perceptions about risk.

International Cooperation: We have an obligation to coordinate within major international financial institutions like the African Development Bank, World Bank, and IMF. Currently, due to our risk rating, we are not receiving substantial investments but are prepared for engagement with the World Bank and IMF for long-term development.

Africa, with over 400 million young people aged between 15 and 35 years, has the youngest population in the world, presenting both challenges and opportunities for the continent. Are there policies or measures that the Bank of South Sudan is implementing to support youth empowerment and entrepreneurship in the country?

Youth Employment Initiatives: As the central bank, we do not directly implement youth empowerment policies. However, the Bank of South Sudan is committed to supporting employment opportunities through competitive hiring practices. We have established a rigorous employment process where youth and other applicants undergo written and oral interviews to ensure merit-based selection.

National Engagement: Additionally, at the national level, the Ministry of Youth and Sport is actively engaging young people in sports initiatives, promoting national unity and pride. We are aligning our efforts with these initiatives to enhance youth engagement beyond ethnic or tribal boundaries.

Corporate Social Responsibility: Furthermore, the Bank of South Sudan is exploring avenues for corporate social responsibility that could benefit youth empowerment initiatives. We remain open to suggestions and collaborations that can further support youth entrepreneurship and empowerment in our country.

Dr. Alic, with the influx of refugees due to the Sudanese conflict, what opportunities and challenges do you foresee for the South Sudanese economy in the coming year with all the challenges that you are working with? How is the bank preparing to support the economic growth instability in this particular context?

Challenges and Opportunities: There are two clear examples: one of the challenges and one of the benefits that refugees coming in from Sudan and our returning South Sudanese who were in the North are bringing. From the positive side, they are coming in with improved services. For instance, medical doctors and surgeons who were specialists in Khartoum have come to South Sudan. Right now, in some residential areas like Kololo in Juba, we have many medical specialists from Sudan providing services that were not available before. This influx is a significant benefit that the conflict in Sudan has brought to South Sudan.

Supporting the Economy: We are working to improve payment systems so that patients can use credit and debit cards instead of cash at hospitals. At the Bank of South Sudan, we provide insurance to our staff, though it has limits on coverage, especially for certain incurable diseases. Through improved payment methods, we are indirectly supporting these services.

Humanitarian Efforts: Many refugees arrive at the border with nothing to eat and

no shelter. Providing them with food has become challenging. We have called upon the international community and humanitarian agencies to support these efforts. Currently, in border states, we have refugee camps where those who have arrived and not yet settled in their home states are being supported.

Integration into Local Economy: Once they settle in their respective states, we hope they will integrate into the local economy. Some have returned to their home states after decades away and are rediscovering their properties and engaging in local production. Agriculture has been highlighted as crucial for our economy, and some refugees are already taking this opportunity seriously.

Nine months into your tenure, approaching one year in office, what would you say is your most notable achievement?

Key Achievements: There are several accomplishments, but I’ll highlight three. Firstly, we’ve significantly expanded financial services into the states, a milestone previously unprecedented. Under my leadership, the bank successfully achieved this, marking it as a major achievement.

Project Completion: Secondly, I’ve dedicated considerable effort to completing long-standing bank projects. Some of these initiatives were at a standstill before my tenure. With renewed focus and support, we’ve seen these projects through to completion. For instance, the construction of our headquarters was initiated before my arrival but was in a critical stage. I personally oversaw its progress, visiting the site daily for four months, ensuring contractors met deadlines, and addressing any challenges promptly. This effort has transformed our headquarters into a landmark structure in Juba, setting a new standard for the financial sector in South Sudan.

Staff Development: Lastly, we’ve made substantial investments in our staff. Enhancing their skills and capabilities has been a priority, and I’m proud of the progress we’ve made in developing our team. Their dedication and professionalism have been recognised not only locally but also within the broader banking community.

South Sudan’s accession to Micro-Economic and Finance Management Institute

By Chance Baniko

The Ministry of Finance and the Bank of South Sudan (BoSS) have signed an MOU at the ministry with Macroeconomic and Financial Management Institute (MEFMI) on the accession of South Sudan as 15th member to the block

The Ministry of Finance and the Bank of South Sudan (BoSS) have signed an MOU at the ministry with Macroeconomic and Financial Management Institute (MEFMI) on the accession of South Sudan as 15th member to the block. Speaking during the ceremony, BoSS Governor Hon. Dr. James Alic said that the engagement between the government and the facility started way back in 2012 in Morocco. The country stands to benefit from the institute in areas of debt recording, debt management amongst others.

BoSS governor said, “We shall do our best to catch up with the rest of the countries in the region. We are no more babies anymore.” The governor expressed optimism to the forth coming meeting and said as a country “we need to have access to the market and develop bond market and financial markets amongst others.”

The institute promised to train 13 cohorts who will become experts at home and in the region. On the other hand, the Executive Secretary of MEFMI

Louis Kesekende said his organization is thrilled to receive South Sudan as its 15th member, pointing out that he will work with the government of South Sudan on areas of capacity development to train cadres for the country.

We have foundational and intermediate trainings as well as advance trainings for the benefit of all member countries

“We have in country conferences as well as regional South Sudan’s accession to Micro-Economic and Finance Management Institute 7 BoSS Governor at the center, Hon. Dr. James Alic, Deputy Minister of Finance Hon. Agok Makur with Dr. Louis Kasekende Executive Secretary of MEFMI and other officials conferences and we are ready to respond to your needs. We have foundational and intermediate trainings as well as advance trainings for the benefit of all member countries.”

Closing the occasion, the Deputy Minister of Finance and Planning Hon. Agok Magur expressed his appreciation for the signing of the MOU and said that the government stands ready to fulfil its obligations. He pledged to pay the membership fee. Earlier in the meeting

held at BoSS premises Doctor Louis Austin Kasekende met and thanked Hon. Dr. James Alic for the warm welcome and the hospitality accorded to them by the bank since they arrived in Juba. He said the main objective of the visit was to strengthen and operational the relationship between South Sudan and MEFMI.

He then touched on South Sudan membership to the block and said that it was approved in the last Board meeting of MEFMI. While the country has already paid its capital contribution, the membership fee remains unpaid. In this connection, he also encouraged the country to pay the membership fee as soon as possible to enable a speedy capitalization as South Sudan, which still lags.

He highlighted that South Sudan needs to nominate their representative to the Board of Governors of MEMFI, either from the Bank or the Ministry of Finance and Planning.

Central Bank of South Sudan celebrates International Women’s Day

By Joseph Chol

Dr. James Alic Garang, Governor of the Bank of South Sudan, urged everyone to support initiatives that empower women and foster selfreliance

The Central Bank of South Sudan joined the global celebration of International Women’s Day 8th March 2024 by recognizing its outstanding female staff. The bank’s leadership acknowledged their tireless commitment, dedication, and passion for their work and their country. The event, held under the theme “Invest in Women: Accelerate Progress,” highlighted the importance of empowering women.

In his address, Dr. James Alic Garang, Governor of the Bank of South Sudan, urged everyone to support initiatives that empower women and foster selfreliance.

“Barriers must be removed to allow their steady progress,” he added. He said that

the BoSS has already broken the glass ceiling, referring to the appointment of Deputy Governor for Administration and Finance, Hon. Nyiel Gordon. He added that the Bank has four women directors, five women deputy directors, and nine women in grade one, and more to follow.

The BoSS Governor commended the ceremony’s organizers, urging them to extend it far and beyond. Replying to a query made earlier by a female staff on why women are not included in committees, the BoSS governor, said there must be a woman or two in each committee. He noted, “When we move to the new headquarters, we will explore ways on how to set up a childcare centre.”

Mayoress of Juba City, Flora Gabriel who attended the meeting said, “It is a great day to attend this magnificent event. Thank you for invitation.” She emphasized that women must be committed, determined, and focused on education. “Let’s respect men, because without them, we cannot form a family,”

On his part, 1st Deputy Governor, BoSS, Hon. Samuel Yanga Mikaya, hailed women on their special day, pointing out that they play greater roles in their societies as they currently occupy the very jobs, which were seen in the past as exclusive men’s territory. Commenting humorously on request

Let’s be a catalyst for change. Let’s create an environment where women can excel without unfairness. With the leadership of Alic, women would be further empowered. Let’s renew our commitment on gender equality.

to set up childcare at the bank, he enquired, “Where are the children? I can only see a single woman pregnant in today’s event.”

Deputy Governor, Hon. Nyiel Gordon Kuol, said., “Today is a remarkable day to celebrate women’s achievements. It’s a day to reflect on achievements and address challenges. While saluting BoSS women staff on this glorious day, she congratulated the First Lady, Hon. Ayen Mayardit, and H.E President of the Republic of South Sudan, Lt. General Salva Kiir Mayardit for bridging the gender gap.

Aiming at BoSS male staff, Hon. Gordon, said, “All of you are sons of

women. So, let’s work together to achieve inclusiveness.” She continued, “Let’s be a catalyst for change. Let’s create an environment where women can excel without unfairness. With the leadership of Alic, women would be further empowered. Let’s renew our commitment on gender equality.” The Director General for Administration and Finance, David Manyuon Nak, hailed women on their special day, referring to their perseverance and self-denial. He urged them to exert more efforts to address challenges. Following the speeches, different dances were performed on tunes of various traditional melodies.

USA honours

Dr James Alic Garang

By Joseph Chol

Since assuming his position in October 2023, Dr. Alic has spearheaded a transforming modernization plan for the Bank of South Sudan.

The Governor of the Bank of South Sudan, Hon. Dr. James Alic Garang, has recently been recognized for his leadership and dedication to improving the nation’s economy. These accolades come from both the United States and Africa, highlighting the international impact of Dr. Alic’s efforts.

Since assuming his position in October 2023, Dr. Alic has spearheaded a transforming modernization plan for the Bank of South Sudan. This plan focuses on:

1. Enhanced transparency, increasing openness and accountability within the bank’s operations to build public trust.

2. Improving efficiency and restructuring the bank to better deliver on its mandate and exercise stronger oversight of the financial sector.

3. Staff investment through implementing new staff benefits and policies to boost morale and improve overall performance.

These efforts are not going unnoticed by the international community.

News recently emerged of Dr. Alic receiving recognition and congratulations from the South Carolina House of Representatives during a visit to the state. Specific details about the nature of the recognition are pending,

Dr. Alic’s initial months in office have been marked by substantial progress. His unwavering focus on modernization, transparency, and staff wellbeing positions the Bank of South Sudan to play a more prominent role in guiding the nation’s economic development

but it signifies the growing international recognition of Dr. Alic’s leadership.

Furthermore, Dr. Alic was awarded a certificate of commendation by the African Leadership Organization. This prestigious continental body’s recognition underscores the positive impact Dr. Alic’s endeavours are having across Africa.

These recognitions add to Dr. Alic’s growing list of achievements, including the “extraordinary effort” prize awarded by the US House of Representatives in Washington D.C. and the proposal

within South Sudan to name a road after him.

Dr. Alic’s initial months in office have been marked by substantial progress. His unwavering focus on modernization, transparency, and staff well-being positions the Bank of South Sudan to play a more prominent role in guiding the nation’s economic development.

International observers will continue to follow Dr. Alic’s leadership with keen interest as he shapes South Sudan’s economic trajectory.

Unlocking South Sudan’s Economic potential through partnership

By Hon. Dr. James Alic

What

the world does not know is that South Sudan boasts a wealth of natural resources beyond oil. Fertile land, vast water reserves from the Nile, and abundant mineral deposits offer a diversified base for investment, to mention but a few

South Sudan, the world’s youngest nation, possesses immense potential for diversification, economic growth, and shared prosperity.

While oil has been the mainstay of the economy since independence from Sudan on July 9, 2011, the government’s focus on augmenting broader local production, particularly in the agriculture sector, presents exciting opportunities for investors. The latter singular interest also stands to foster a more resilient future for South Sudan and the region.

What the world does not know is that South Sudan boasts a wealth of natural resources beyond oil. Fertile

land, vast water reserves from the Nile, and abundant mineral deposits offer a diversified base for investment, to mention but a few.

The agricultural sector holds immense promise. With fertile plains and a long growing season, South Sudan has, indeed, the potential to still become a breadbasket for the region and beyond.

Investment in modern farming techniques, irrigation infrastructure, and storage facilities can unlock this potential, ensuring food security not only for our people but also, as already stated, for the region and continent while creating jobs for millions of people.

South Sudan is a country moving towards a positive frontier. To make this point clearer and as the Governor of the Bank of South Sudan, I had the privilege of hosting the EAC Monetary Affairs Committee meetings from April 29-May 3, 2024

However, South Sudan cannot achieve its growth potential in isolation. If anything, it needs to integrate with the global economy while strengthening collective action, especially the regional and international financial system. This conviction informed our decision to join the East African Community (EAC) in 2016, and the country is now realising some dividends.

While we have made considerable progress, I will admit that it has not been an easy journey. However, I can confidently say that South Sudan is no longer a ‘baby’ but a fully matured adult, just like others in the region, and is contributing to collective action in many respects.

South Sudan is a country moving towards a positive frontier. To make this point clearer and as the Governor of the Bank of South Sudan, I had the privilege of hosting the EAC Monetary Affairs Committee meetings from April 29-May 3, 2024.

Throughout the week-long meetings, the Bank of South Sudan had the opportunity to highlight to our EAC colleagues the immense potential that remains untapped in our country.

In a similar vein, I also noted that the banking sector remains a major reserve for investment from our regional brothers and sisters. Huge opportunities for varied investments exist in the banking sector.

Going forward, we promise to sustain a positive investment climate as we seek to attract both regional and global investors to South Sudan.

South Sudan stands at a crossroads. Yet, by harnessing its natural resources, fostering a stable environment, and investing in its people, the country can unlock its true growth potential.

From our experience, the journey will be exacting, but the rewards – a prosperous and diversified South Sudan – are well worth the efforts.

We expect investors to conduct their due diligence and manifest in longterm strategies. Collaboration with the government and local communities is essential to reap investment opportunities, and by extension, support the UN Sustainable Development Goals and South Sudan Development Plan.

Unveiling Fiscal and Monetary Policy Reforms Towards Economic Transformation Agenda

By Hon. Dr. James Alic

His unwavering focus on modernization, transparency, and staff wellbeing positions the Bank of South Sudan to play a more

It is my distinct honour and privilege to warmly welcome you to this joint press conference organized by the Ministry of Finance and Planning and the Bank of South Sudan under “Unveiling Fiscal and Monetary Policy Reforms Towards Economic Transformation Agenda.”

Today represents a watershed moment for economic and financial reforms in our country, emphasizing that the banking industry is one of the key pillars essential to the realization of the above reform agenda.

Permit me, fellow citizens, to rather digress and reflect on the evolution of modern central banking which succeeded the traditional central

banking associated with “gold standard” and Hume’s “rules of the game.”1 After transiting to the classical type, the major objectives of central banking have been to preserve financial stability, including currency convertibility into specie with a new attention to their supervisory role.

The control over the money supply was dominated by the convertibility target: “the monetary functions of the central bank were largely grafted onto the supervisory functions, and not the reversed.”

The bank core objective shifted to maintaining “price stability,” with the advent of modern central banking. It is the general style of monetary policy

that makes the main difference between traditional and modern central banking. The latter is more precisely antiinflation, largely oriented with a lower degree of goal independence and a higher instrument independence.

Distinguished guests, ladies, and gentlemen, through the prisms of the current developments, the financial system stability remains central to the development agenda of the country. Historically, central banks used the lender of last resort function as the principal tool to ensure financial stability.

Today, financial stability goes beyond the lender of last resort function. Indeed, financial stability and monetary policy are complementary since without financial stability, monetary policy impulses to the economy cannot be transmitted to the real economy. Therefore, financial stability is critical to achieving macroeconomic Price stability and full employment. The Bank of South Sudan modernization reform agenda, considering the above, is anchored on four pillars that are interdependent and multifaceted.

They revolve around the vision towards economic transformation agenda and strengthening the central bank mandate to achieve price stability. The pillars are sequenced are follows:

Pillar 1: Strategies to strengthen monetary policy framework to ensure price stability

Pillar 2: Corporate governance

Pillar 3: Transparency and Accountability

Pillar 4: Exercising central bank autonomy and independence.

Distinguished guests, ladies, and gentlemen, under the first pillar, the Bank of South Sudan plans to

pursue a strong monetary policy framework. This calls for a strategic approach to working with the key stakeholders in the economy to foster healthy competition and resource allocation; to pursue activities that lead to high productivity and economic growth; to reduce distortions in foreign exchange markets and make prudent investment decisions; and to ensure a sound and more efficient financial system.

Broadly, there exist multiple objectives leading to realization of this pillar, with the following featuring prominently:

• Ensuring that banks develop, adopt, and implement plans to promote financial inclusion and digitalization of financial services through harnessing innovation and technology. Here, we will use moral suasion, especially encouraging commercial banks to expand access frontier to the bottom of the pyramid.

• Working towards maintaining macroeconomic stability to tame inflation and anchor inflation expectations, while curbing currency exchange rate depreciation.

• Providing the conducive policy environment to transit from the current reserve monetary policy framework to price-based monetary policy framework, as required by EAC protocol. We hasten to add that this is part of convergence criteria and harmonization of monetary policies among EAC member States.

• Ensuring exchange rate stability, the bank will formalize the foreign exchange market by encouraging the informal currency traders to join the foreign-exchange market. This will be implemented through coordination with relevant authorities as these informal

outlets get regulated and officially licensed to transact in the foreign exchange market.

This will enhance data collection and streamline foreign exchange operations in the country, leaving little room for currency speculators and market indiscipline.

The concerned department will be directed to formulate a policy direction that will culminate in eliminating informal foreign exchange dealers. Going forward, the law enforcement agencies will discharge their immediate responsibilities to tame any noncompliance practices, including by ensuring that no one sells dollars in the open, or under trees without an appropriate license to engage in FX trading or before creating lawful “FX windows.”

• Implementing the National Payment System remains critical and sits at the centre of this strategy. We continue to work closely with our regional and international partners to:

i. Support a payments system that meets the diverse needs of customers

ii. Enhance the safety, affordability, and security of the payments system by adopting relevant industry and global standards

iii. Support an ecosystem anchored on collaboration that produces customercentric and world-leading innovations

iv. Create a supportive policy, legal and regulatory framework

Supporting economic development and agriculture remains imperative. It is in the public domain that recent global headwinds, rising interest

The Bank together with Ministry of Finance will coordinate policies, seeking to promote financial and macroeconomic stability as well as fostering foreign direct investment and mobilizing diaspora remittances

rates in the advanced economies, post COVID-19 era and the Russian-Ukraine war have disrupted the global supply chain and left a big scar on the global economy.

Consequently, many countries suffered losses in terms of economic growth and employment. There is no doubt that South Sudan’s economy remains vulnerable given that its performance relies mainly on growth in a few sectors, led by the oil sector and services.

The Bank together with Ministry of Finance will coordinate policies, seeking to promote financial and macroeconomic stability as well as fostering foreign direct investment and mobilizing diaspora remittances. Further, the Bank supports the government plans to diversify South Sudan’s economy, while reducing vulnerabilities to external risks. The Bank also encourages the establishment of agriculture credit facilities to support lending and extending credit to this crucial sector, which is a top priority policy in spearheading this reform agenda. By providing an enabling environment and legal framework, the Bank will sensitize the banking sector and other microfinance institutions to prioritize lending to enterprises engaging in agro-business and food processing. The modalities of such interventions will be discussed elaborately with the key stakeholders and the Ministry of Finance.

The Bank will undertake a formal review of its approach to foreign exchange reserve management. The outcome of the review would be guided by multiples principles to establish a rigorously defined operational framework for managing risk and return. Hence, the Bank will review the current investment guidelines to ensure asset allocation is critical for gen-erating returns and managing portfolios.

In coordination with the fiscal authorities, the Bank will work towards

shifting implementation of Treasury Single Account (TSA) memorandum of understanding. This will set the stage to decouple the use of foreign currency in most payments undertaken by spending agencies of the government and help us rebuild foreign exchange reserves. This deliberate rebuilding of reserves has positive implications on the domestic currency, the SSP and balance of payments. Distinguished guests, ladies, and gentlemen, under the second pillar, and to ensure sound and effective decision-making, the Bank will institute robust governance arrangements. To this end, the importance of effective governance arrangements for central banks cannot be overemphasized.

Through this Modernization Strategy document, effective Board oversight will play a critical role in ensuring sound governance. As defined, the Board is the decision-making body through which oversight function is exercised. This ensures that the bank is well managed and aligned with international best practices.

The Board oversight function is the “last line of defence” in the broader internal governance structure of the Bank. Robust board oversight is critical to several policy decisions, including

1. holding the central bank’s internal decision-making accountable and 2. ensuring that overall management is appropriate, compliant with legal requirements, and financially and operationally sound.

Distinguished guests, ladies, and gentlemen, under the third pillar central, central banks are formally accountable to the delegating authority, including legislative or executive branch of government and the public depending on the constitutional delegation of responsibilities. Through this document, we envisage several formal mechanisms through which the Bank of South Sudan is held accountable for its

activities, namely:

1. Monitoring by the legislature; through the existing legal provisions for the exchange of information, often in the form of regular meetings or consultations, with the Ministry of Finance and other government agencies, including the National Assembly.

2. Publication of regular central bank reports; the Bank of South Sudan is required to submit a written report (audited financial statements) to the legislature and the Ministry of Finance each year as stipulated in the Bank of South Sudan Act, 2011 (amended, 2023).

3. Ensuring transparency and disclosure requirements; in discharging of our duties, we shall clearly communicate that transparency requirements do not interfere with the achievement of the central bank’s functions and objectives.

Whenever confidentiality is desirable, selective disclosure, such as testimony in a closed session of a legislative committees would be preferred.

Distinguished guests, ladies, and gentlemen, under the fourth pillar, and for the Bank of South Sudan to be effective, we shall work towards achieving and enjoying a high level of autonomy vis-a-vis both political institutions and private economic interests. This is the trend world over.

The autonomy of the Bank of South Sudan will be commonly analysed through the lens of four related but distinct concepts:

1. Institutional autonomy, indicating that the Bank should not be influenced by the state or private third parties in its decision-making in the context of the performance of its functions;

2. Functional autonomy, which is directed to the capability of central

bank to im-plement its functions without direct governmental interference;

3. Personal autonomy, which ensures that key decision makers of the central bank, Governor and members of Executive Boards, Monetary Policy Committees and Oversight Boards are autonomous from political and private economic and social interests; and

4. Financial autonomy entails the capability of the bank to pursue its mandate by way of the financial means required to do so.

It is important to reiterate that the leadership understands the enormity and the inher-ent challenges facing this policy direction. Many central banks across the globe still grapple with issues related to autonomy and independence and South Sudan is not an exception. We believe, however, in setting the stage for such conversations to take shape and form, allowing the posterity to build on these key building blocks which represent an essential component for a modern central bank.

At the Bank management level, we shall ensure diversity and competence merits-based recruitment which incorporates the elements defined in the developed human resource competence framework:

1. Appreciating talent management, retention in diversity, and aligning current workforce and talent strategies to future business priorities,

2. Developing on the job training and succession plans

3. Assessing current capabilities, both across the organization and within the HR function and identifying key skills and capabilities required for the future.

At the Bank management level, we shall ensure diversity and competence merits-based recruitment which incorporates the elements defined in the developed human resource competence framework

Dr. James Alic Garang’s Speech at the 2024 Africa Summit in London

By Hon. Dr. James Alic

It is an honor and a privilege to stand before you today at the African Leadership Summit 2024 here in London. I am deeply humbled to be part of this important gathering and the conversation about Africa’s future. Despite prevailing challenges, Africa remains poised for a remarkable transformation that could change the global economic landscape.

Indeed, William Shakespeare is right when he said: “The golden age is before us, not behind us.” One of the key drivers of the expected transformation

stems from the continent’s fast-growing population. According to UN reports, Africa is projected to be home to 2 billion people by 2050, making it the most populous continent on earth. This demographic trend presents a unique opportunity for the continent to harness the power of its youthful population and drive economic growth through innovation, entrepreneurship, and increased productivity.

South Sudan, like other countries, has and continues to face a series of challenges that have significantly

Despite prevailing challenges, Africa remains poised for a remarkable transformation that could change the global economic landscape

South Sudan holds immense potential across many sectors. Spearheaded by the Bank of South Sudan, the banking sector has been playing a crucial role in supporting the economy and bolstering recovery

hampered its economic growth. It has been affected by multiple economic shocks, including fluctuating oil prices, disruptions, and the global economic downturn induced by the COVID-19 pandemic and its detrimental effects. These factors have led to a sharp decline in economic output, currency depreciation, and limited access to basic services for the population.

South Sudan, however, holds immense potential across many sectors. Spearheaded by the Bank of South Sudan, the banking sector has been playing a crucial role in supporting the economy and bolstering recovery. The Bank of South Sudan, together with stakeholders in the country, has been implementing various strategies to improve financial sector stability and attract investment. Some of the key initiatives include:

1. Enhancing financial regulations: The financial sector is working closely with regulatory authorities to strengthen financial regulations and improve transparency in the banking sector. This is crucial for

building trust among investors and ensuring the stability of the financial system.

2. Expanding financial inclusion: The Bank has expanded its branch network to extend financial services to underserved populations, including rural communities and small businesses. Commercial banks are also expanding their operations. By providing access to credit and other financial services, banks are supporting economic growth and empowering households to improve their livelihoods.

3. Promoting investment: Financial institutions are actively working to promote investment in key sectors of the economy, including agriculture, fishing, infrastructure, mining, and manufacturing. By providing financial support and advisory services to investors, banks are stimulating economic activity, creating employment, and boosting revenues.

4. Improving risk management: Banks are enhancing their risk management practices, thereby

mitigating the impact of external shocks on their operations. By diversifying their asset portfolios and adopting best practices in risk assessment, banks can better withstand economic uncertainties and safeguard the interests of their customers.

5. Embracing technology: Banks and mobile money operators, including m-Gurush, MoMo, and NilePay, are increasingly leveraging technology in South Sudan to enhance service delivery and reach a wider customer base. Digital banking solutions, mobile payment platforms, and online banking services continue to improve efficiency, convenience, and security for customers.

In striving to achieve its core mandate, the leadership of the Bank of South Sudan has anchored its policy direction on three main pillars of running a modern central bank—ensuring greater transparency, supporting accountability, and exercising independence.

Broadly, the Bank is implementing a prudent and data-driven monetary policy to ensure price stability, safeguard

financial stability, and rebuild policy credibility. It now focuses on:

• Strengthening the monetary policy framework and anchoring inflation expectations

• Rebuilding gross international reserves, including the plan to add a gold portfolio

• Collaborating with fiscal authorities to realign incentives and harmonize policies

• Expanding the branch network, fostering financial inclusion, and improving staff welfare

• Aligning with the EAC’s roadmap for establishing a monetary union.

Relatedly, we greatly appreciate H. E. President Salva Kiir Mayardit and the Unity Government for continuing to advocate and support our policy positions to stabilize the economy and ensure shared prosperity. Several ongoing initiatives and policies are paving the way for increased investment with significant outlays geared towards various sectors, including agriculture and ICT. For example, Elon Musk’s Starlink has recently been granted a license to operate in South Sudan,

In striving to achieve its core mandate, the leadership of the Bank of South Sudan has anchored its policy direction on three main pillars of running a modern central bank— ensuring greater transparency, supporting accountability, and exercising independence

South Sudan contributes to strengthening regional and international cooperation. In this context, it continues to deepen relations with the EAC, World Bank, IMF, and other major institutions. Collectively, they have invested significantly in development initiatives, food security, infrastructure, and economic stabilization measures

and a recent survey confirmed South Sudan as boasting the world’s largest land mammal migration, dubbed the 6-million-strong Great Nile Migration. The country is also investing in and promoting tourism, harnessing its potential in solar energy, and attracting investment in the real estate and mining sectors, with positive implications for growth and job creation.

South Sudan contributes to strengthening regional and international cooperation. In this context, it continues to deepen relations with the EAC, World Bank, IMF, and other major institutions. Collectively, they have invested significantly in development initiatives, food security, infrastructure, and economic stabilization measures.

To build a track record of prudent macroeconomic policies, South Sudan has undergone a 9-month StaffMonitored Program, and Program Monitoring with Board Involvement, which greatly supported the foreign exchange market and economic reforms. The country is now working to secure the Extended Credit Facility program, which will allow South Sudan to implement an economic program that can drive progress toward a stable and

sustainable macroeconomic position consistent with strong and durable poverty reduction and growth.

Please allow me to reiterate that at the heart of our economic agenda is the empowerment of youth and the promotion of entrepreneurship. By investing in education, skills development, and Small and Mediumsized Enterprises, we can unlock the full potential of our nation and deliver inclusive growth. Through partnerships with local and international stakeholders, we aim to create a vibrant ecosystem that nurtures innovation and creativity.

To conclude, I call upon all leaders gathered here today to join hands in shaping a brighter future for Africa and the world. Let us work together to harness the potential of our youth, embrace innovation, and build resilient economies that lift all boats. Let us also shun negative perceptions about African countries and reverse such narratives. Going forward, the Bank of South Sudan stands ready to play its part in this collective endeavor, while looking forward to forging new partnerships and welcoming you to South Sudan to explore a plethora of investment opportunities.

South Sudan’s Financial Sector Reforms:

In a nation marked by resilience and transformation, the Bank of South Sudan stands at the forefront of economic resurgence. We had an exclusive interview with Mrs. Grace Araba Gordon, the Director of Financial Markets at the Bank of South Sudan. With an impressive 18-year tenure at the Bank, Mrs. Gordon has been instrumental in implementing bold reforms and innovative policies that have significantly impacted the financial landscape of South Sudan. Her leadership and vision are crucial in steering the nation towards economic stability and growth, making her insights invaluable for understanding the complexities and triumphs of South Sudan’s financial markets.

In this candid conversation, Mrs. Gordon explores her remarkable career journey, starting from her early days in the back-office division to her current pivotal role. She highlights the strategic reforms introduced under the leadership of Governor Dr. Garang, which have fortified the monetary policy framework and enhanced market confidence. From the introduction of a term deposit facility to the deployment of advanced trading platforms, Mrs. Gordon discusses the transformative policies driving South Sudan’s economic resurgence. This dialogue explores the profound impact of these initiatives and offers a deeper understanding of the future trajectory of South Sudan’s financial markets through the eyes of a visionary leader.

Excerpt

Can you introduce yourself and describe the career journey that led you to your current role as Director for Financial Markets at the Bank of South Sudan?

I joined the Bank of South Sudan in 2006 as an official in the back-office division of the financial markets department, handling settlement and trade finance (letters of credit and guarantees). Subsequently, I became the head of the settlement division. My experience with the Bank of South Sudan spans 18 years.

As acting Deputy Director for the Financial Markets Department in 2020 for a period of two years, I was promoted to the position of Director of Financial Markets in 2023. During this period, my team managed to introduce several reforms, including the introduction of a term deposit facility and an FX trading platform, Refinitiv, for electronic FX and TDF auctions, which will be operational in a few weeks. We have also strengthened liquidity management and forecasting frameworks as we continue to develop strategies to boost foreign exchange reserves.

From your perspective as Director of Financial Markets, what are some of the key reforms and policies implemented under Dr. Garang’s leadership that have significantly impacted the financial markets and the broader economy of South Sudan?

The continuous implementation of the term deposit facility under the leadership of Hon. Dr. Alic has strengthened our monetary policy framework. This facility has allowed market participants to

Mrs. Gordon has been instrumental in implementing bold reforms and innovative policies that have significantly impacted the financial landscape of South Sudan. Her leadership and vision are crucial in steering the nation towards economic stability and growth, making her insights invaluable for understanding the complexities and triumphs of South Sudan’s financial markets

invest more funds and liquidity with the Bank of South Sudan. We have also used the facility to manage excess liquidity, alleviate pressure on the domestic currency, and stabilise the macroeconomic environment.

Another policy was the reorganisation of the informal foreign exchange market to discourage rent-seeking behaviour and streamline FX operations.

We strengthened monetary policy by adopting an inflationtargeting regime to replace monetary aggregates and implementing a modern liquidity forecasting framework to enforce compliance with statutory reserve requirements. Liquidity forecasting aims to stabilise the exchange rate and foster confidence, promoting long-term economic growth.

We have also increased our engagement with the industry by introducing Central Bank Bills to expand the range of instruments available to absorb excess liquidity from the market. This same platform will be used to deepen the interbank market and government securities.

Increased market oversight through the adoption of Refinitiv allows us to receive daily returns on all foreign exchange and money market transactions from financial institutions, strengthening our supervisory role and maintaining market discipline.

The communication strategy under the leadership of Hon. Dr. Alic involves frequent communication with stakeholders and the public to enhance policy effectiveness, create complementary news to policy actions, and reduce policy uncertainties.

The formation of a Monetary Policy Operations Committee (MPOC) oversees the implementation of policy decisions made by the Monetary Policy Committee (MPC).

The Bank of South Sudan also promotes financial inclusion, bringing financial services and products closer to people across the country. Under the leadership of Hon. Dr. Alic, we have opened more branches where regulatory gaps were identified.

What initiatives have been undertaken recently, especially under Dr. Garang’s leadership, to improve the issuance process of Treasury bills and bonds? How have these initiatives impacted investor confidence and market participation?

In light of various headwinds and multiple shocks, we have diversified our monetary policy instruments by placing more emphasis on term deposits and other instruments. The Bank of South Sudan first introduced money market instruments in 2016, issuing Treasury bills on behalf of the government. We also invested in the necessary infrastructure to support such operations. A robust CSD and T-bills auction analysis system was introduced shortly afterward. This policy direction yielded significant results, allowing the government to borrow from the banking sector and contributing to a stable exchange rate regime, thereby moderating inflationary pressures.

What innovative policies or regulatory reforms are being introduced to enhance the efficiency and stability of financial markets dealing with Treasury bills, bonds, and gold reserves?

To deepen our monetary policy framework, we intend to introduce other important tools, such as central bank bills. This policy direction will be discussed with the Ministry of Finance to realign and harmonise monetary policy instruments and create a conducive environment for a stable exchange rate regime and effective intervention methods. The act allows the Central Bank to run discount windows as facilities of last resort, providing temporary liquidity to the industry and supporting monetary policy transmission. However, the dynamics of financial markets require us to go the extra mile, supporting monetary operations through prudent regulations and policy coordination. Enforcing compliance with reserve requirements enhances the Bank of South Sudan’s ability to control money growth and fulfil its responsibility for maintaining stable monetary conditions.

Under Dr. Garang’s leadership, what efforts have been made to enhance investor confidence in South Sudan’s financial markets and the banking sector generally? What strategies or initiatives have been effective in improving transparency and accountability in transactions involving Treasury bills and bonds?

South Sudan is in the early stages of deepening its financial markets, and we have not yet developed legal frameworks for capital markets. However, efforts are being made to first strengthen money market instruments by enhancing the regulatory framework for the secondary market and developing a sophisticated marketplace in collaboration with advanced capital markets within the region and across the continent. It is important to emphasise that our money

market operations are transparent and open to scrutiny. We have adopted and installed modern infrastructure for payment and settlement systems that share data and information with market participants. Additionally, we have a robust feedback and monitoring mechanism capable of analysing outcomes and rectifying system errors when they occur.

The banking sector in South Sudan is sound, with a wide array of international banks. Could you share examples of successful risk management strategies implemented in the context of financial markets dealing with Treasury bills, bonds, and gold reserves? How have these strategies mitigated risks and ensured market resilience?

The Bank of South Sudan is considering introducing central bank lending facilities for banks on an overnight basis. The discount windows shall be run as facilities of last resort, providing temporary liquidity to banks and supporting monetary policy transmission. Pricing of the facility is recommended to be punitive, a margin above the policy rate.

How have global financial trends and regulatory developments influenced your approach to managing financial markets involving Treasury bills, bonds, and gold reserves? How have you adapted to these global influences?

We aim to boost foreign exchange reserves via gold purchases. Reserves act as a financial cushion, providing stability and confidence in a country’s economy and influencing monetary policy, including foreign exchange rates.

How would you describe Dr. Garang’s leadership style and impact as Governor of the Bank of South Sudan? How has his leadership influenced your work and the overall performance of the financial markets?

Hon. Dr. Alic is a charismatic and transparent leader who has demonstrated a keen interest in financial inclusion. His leadership brought about inclusive participation and the sharing of ideas across the sector. He has shown a desire to support the restructuring of the Central Bank to ensure it effectively delivers on its mandate. We have witnessed an improvement in staff welfare, including measures to improve working conditions, better healthcare, and opportunities for professional development and growth. He has also strengthened collaboration with international financial institutions.

What is your vision for the future of South Sudan’s financial markets under Dr. Garang’s leadership? What key initiatives or reforms do you foresee to further strengthen the financial markets and the resilience of the country’s economy?

We envision vibrant financial markets under the leadership of Hon. Dr. Alic. This includes the introduction of an interbank market for SSP to support monetary policy transmission, a deeper government securities market, a stable exchange rate and interest rate environment, and increased foreign exchange reserves. Hon. Dr. Alic’s extensive international exposure, having worked with multiple international financial institutions, provides an additional advantage, fostering a holistic view on matters of finance and the economy.

The continuous implementation of the term deposit facility under the leadership of Hon. Dr. Alic has strengthened our monetary policy framework. This facility has allowed market participants to invest more funds and liquidity with the Bank of South Sudan. We have also used the facility to manage excess liquidity, alleviate pressure on the domestic currency, and stabilise the macroeconomic environment

DRIVING FINANCIAL STABILITY: Insights from Chan Andrea

In this exclusive interview with Mr. Chan Andrea, the Director General of Banking Supervision at the Bank of South Sudan with a career spanning eighteen years in various capacities within the bank, Mr. Andrea has been at the forefront of significant financial reforms and modernization efforts. Joining the Bank of South Sudan (a branch of Sudan Bank) in 2006, he began his journey in the investment and foreign exchange departments before moving on to pivotal roles, including Executive Director to the Governor and head of the Financial Markets Department. His leadership in launching government securities like Treasury bills marked a critical step in easing fiscal pressures. In 2022, he took on the role of Director of Banking Supervision, where he now oversees policies and advises the bank’s senior management.

Under the current leadership of Governor Dr. James Alic, Mr. Andrea has been instrumental in driving forward key financial reforms aimed at modernising the banking sector in South Sudan. Among these initiatives is the overhaul of the payment infrastructure, transitioning from paper-based transactions to a modern automated system, with the support of the East African Community and the African Development Bank. The completion of the new central bank headquarters stands as a testament to these transformative efforts. As South Sudan navigates the challenges of regional instability and economic dependence on oil, Mr. Andrea emphasises the importance of diversifying into agriculture and mineral investments. His insights into the future of South Sudan’s financial landscape reveal a vision for a cashless society and enhanced financial inclusion through innovative technologies like mobile money services. This dialogue explores the journey, achievements, and future aspirations of one of South Sudan’s key financial leaders.

Excerpt

Mr. Chan, it’s an absolute pleasure to be here today. And I wanted to start by just asking you to introduce yourself and share the journey and experiences that have led you to your current role as Director General for Banking Supervision.

Yes, thank you for this opportunity. And also, let me say, you’re welcome to the Bank of South Sudan. My name is Chan Andrea. Currently, I’m the Director General of Banking Supervision. I first joined the Bank of South Sudan in 2006, and throughout the time, I’ve been working in different departments and different directorates. I started as an officer in the investment and foreign exchange departments. I also worked closely with the executive office from 2011 until 2016 as the executive director of the Governor. After that, I moved to the Financial Markets Department, where we initiated government securities and Treasury bills for the first time in South Sudan. This was an important step to lessen the pressure on fiscal budgets and deficits, as the government was borrowing from the central bank. We saw the

Under the current leadership of Governor Dr. James Alic, Mr. Andrea has been instrumental in driving forward key financial reforms aimed at modernising the banking sector in South Sudan. Among these initiatives is the overhaul of the payment infrastructure, transitioning from paper-based transactions to a modern automated system

South Sudan has been on a path to modernising our payment systems. Previously, we were still using paper-based transactions with no automated clearing house, conducting traditional clearing where banks would meet physically to exchange payment instrument

need to develop the money markets through government securities like Treasury bills. I oversaw the formulation of the framework to launch Treasury bills successfully in 2016. From there, I moved to Banking Supervision as Director in 2022, two years ago, before the bank restructured by adding more directorates. I was then promoted to Deputy General. All in all, I’ve worked in various capacities, providing policy advice to both the board of directors and senior management, including the governor. So, I’ve been at the central bank for quite some time.

So, you’ve had 18 years in total. Under the current leadership of Dr. Garang, you’ve already mentioned very briefly one of the reforms that he’s implemented. Could you talk more about some of these financial reforms that he’s implemented under his leadership and their impact?

Yeah, it’s one of the most important steps that we have taken during his tenure at the central bank. I could still remember when Governor Dr. James Ilitch came to the central bank; he came with a very clear vision. He wanted to modernise the bank so that the Bank of South Sudan becomes part of the modernised banking industry within the regions and also on a global scale. We embarked on a modernization plan, which was documented under his guidance. This document has a number of pillars. One of the most important pillars is to restructure the bank to ensure it reflects modern central banks in terms of structure, operations, and administration.

Another crucial aspect is the modernization of the payment infrastructure and system. South Sudan has been on a path to modernising our payment systems. Previously, we were still using paper-based transactions with no automated clearing house, conducting traditional clearing where banks would meet physically to exchange payment instruments.

However, with the help of the East African Community (EAC) and the African Development Bank, we have coordinated our payment infrastructure and made significant progress. By next year, we expect to have a fully operational payment system with all its components.

Additionally, during his leadership, we managed to complete one of the most iconic milestones in terms of establishing a fiscal structure for the bank. We faced a challenge regarding space, and previous governors had initiated a project for a new head office. This project was successfully completed under Dr. Ilitch. It was inaugurated a few days ago and has become one of the most iconic edifices in the country, significantly changing the city’s landscape. It is commendable for Governor Ilitch to have led the process of integrating the new headquarters for the central bank.

About a month ago, Dr. Garang mentioned aspirations of eventually moving into a cashless society. And you’ve talked about some of the transitions to paperless banking. How feasible do you think a cashless society would be over the next 5–10 years?

Yes, we look at that from different angles, particularly financial inclusion. South Sudan is a cash-driven society; the economy operates largely on a cash basis. However, there is a need to move away from cash. We have leveraged existing capacities and structures. For instance, in my directorate, we license fintechs, which are mobile money service companies. So far, we have licensed five of them. We have seen the impact of mobile money services in the region. For example, M-PESA, which is a globally renowned mobile money service, has significantly contributed to financial inclusion in Kenya.

If we look at Kenya now, the financial service penetration of M-PESA has

led to over 90% financial inclusion, compared to 8–10% in South Sudan, which is well below the Sub-Saharan average of around 65%. Achieving financial inclusion is crucial by bringing the underserved into the financial services bracket. In South Sudan, a brick-and-mortar approach may not be the best model. Therefore, we need to embark on innovation and technology to drive financial inclusion. It is one of the key objectives of our strategic plan.

Mr. Chan, obviously, there’s a lot of regional instability in the area that must have an impact on the economic structure within the country. What measures have been implemented to ensure the financial stability of South Sudan?

Yeah, this is a very important question. And it cuts across both monetary policy and fiscal policy. If you look at the structure of the South Sudanese economy, the country depends on oil or crude oil exports. And that places the country at a higher risk because

there are a lot of risks associated with oil. Apart from being a finite resource because it’s not a renewable source of energy, there are other global factors at play that are not within the control of the government. For instance, being a landlocked country, you need maritime terminals to export the oil. And the only outlet for oil exportation is Sudan. And we know that Sudan is now in civil strife, and there is a full-blown civil war in Sudan. This has impacted the importation and exportation of oil. Additionally, there is a great deal of insecurity along the corridors, where you have the Red Sea, with the Houthis being very active in that area. This has actually increased the premium in terms of global freight, as insurance companies are scaling up the premium for the transporters trading within the corridors. Moreover, the global prices of oil are something you cannot guarantee. So relying on a single resource like oil can transmit a lot of shock to the fiscal budget of the government. So now here comes the solution: to gradually move away from depending on oil.

In South Sudan, a brick-andmortar approach may not be the best model. Therefore, we need to embark on innovation and technology to drive financial inclusion. It is one of the key objectives of our strategic plan

South Sudan, with its vast arable land, has the potential to be the breadbasket for the region, if not for the entire continent. So, moving away from oil dependence to agriculture is a key policy direction that the government

Would you start from the point of view of seeing South Sudan as a potential breadbasket of the region? Because that’s very interesting.

South Sudan, with its vast arable land, has the potential to be the breadbasket for the region, if not for the entire continent. So, moving away from oil dependence to agriculture is a key policy direction that the government, including the central bank, sees as an area of priority. Another area is investment in minerals. South Sudan has good deposits. Discovering all these deposits can be done on a commercial scale in areas like Eastern Equatoria. It has been proven that Equatoria has significant deposits of metals, including gold and aluminium, among others.

So, the importance of moving away from oil dependency is a key policy strategy that the government must embark on. Absolutely.

Do you see that starting to happen already? As you said, you’re talking about agriculture and mineral deposits. Has that started yet? Yeah, in terms of mapping, the country has done the mapping. We basically know where we have the minerals. And at the same time, we can see on the ground, on a smaller scale, activities being done by small-scale, artisanal miners. But we also need to ensure that security around those areas is enhanced. We have worked on some key legal frameworks that can enhance the processes in terms of investment and encourage foreign direct investment (FDI) into those sectors. Unless those sectors are commercialised on a larger scale, they will not have a positive contribution to the GDP of the country and economic growth.

I mean, it’s really you who touched on investors. If you could just talk about what initiatives are offered to potential investors in the country.

From the perspective of the Central Bank, the most important policy direction is to make sure that the macroeconomic environment is quite stable. When we talk about the macroeconomic environment, we talk about factors such as inflation and exchange rate stability. Without a very stable environment, stable inflation, and stable currency exchange rates, it will be very difficult to attract foreign direct investment. So we are gearing our policies towards improving the macropolicy environment. That is one.

The second thing is that we’re also enhancing collaborations with other government agencies. The central bank doesn’t work in isolation; we actually work together with other government agencies. For instance, the harmonisation of fiscal and monetary policies is quite key when it comes to managing the macroeconomic environment. When the government is going expansionary, we need to negotiate with the government on the impact of such policy directions on monetary policy, exchange rates, and inflation. Without this policy dialogue, policy harmonisation, and coordination, it will always be difficult to maintain a stable environment where you can attract investors.

We have made significant progress. There are a lot of MOUs between ourselves, the central bank, and the Minister of Finance on how to manage those policies. One of the MOUs is on what we call a single Treasury account. We are going to probably move away from the way the government manages its accounts now to a single Treasury account, where the fiscal authority has a single Treasury account that is managed centrally by the Minister of Finance. This will allow the central bank to build up international reserves.

Can I ask about regional trade and your two neighbours, five to six neighbours apart from Sudan, and

what is happening with the strong economic links between any of your neighbours?

Based on the data reflected by the balance of payment within the region, Uganda, Kenya, and outside the region, the UAE are significant trade partners. If you look at the composition of the imports of South Sudan, being a net importer of almost everything, it probably imports all the agricultural products from the neighbouring countries, Uganda and Kenya. We also import intermediary goods from the UAE and capital goods, as well as consumer inputs from these countries.

Within the region, we have worked with the East African Community (EAC) on some arrangements in terms of a customs union. Goods produced locally within East African regions are not subjected to taxation, allowing for the free movement of goods and services in terms of tariffs. However, governments are still trying to negotiate whether this is the best option or not, because some governments depend on the levies they place on imported goods. There is always an argument that if you allow all the goods from the region to enter free of tariffs, the chances of running a fiscal deficit are high. This is still something on the table being discussed by policymakers.

Mr. Chan, I just wanted to ask about technological advancements in the banking sector. You briefly touched on this earlier. Could you talk about any advancements that have been launched and adopted?

Yes, we’re fortunate to have started with several regional banks in the country, some of which were licensed as early as 2007. These regional banks came equipped with key infrastructure that has driven the banking industry in South Sudan. For instance, South Sudan made a significant stride in international remittances and global payments. We moved away from

traditional cross-border payments like Telegraphic Transfers (TT) to the modern Swift cross-border payment infrastructure right from the outset. This has given our banking industry an advantage in facilitating trade within the region and positioned us to potentially leapfrog in infrastructure terms for payment systems to propel South Sudan forward.

Finally, can I ask you about Dr. Garang’s leadership style and his impact on the banking sector? Additionally, could you discuss your own leadership style?

Let’s start with Dr. Garang’s leadership style, which is very unique. He is highly engaging with senior management, consultative in his approach, and maintains a hands-on leadership style. He regularly revisits policies and strategies, addresses challenges directly, and sets clear, achievable objectives. Under his leadership, we focus on setting goals that are realistic and can be attained. Dr. Garang also encourages open communication and participation from senior staff and all employees of the bank, allowing them to contribute towards the bank’s objectives and decision-making processes. This inclusive leadership approach ensures that everyone in the bank is involved and invested in achieving our goals.

As for my own leadership style, I believe in fostering a collaborative environment where ideas are valued and everyone’s voice is heard. I strive to lead by example, promoting transparency, integrity, and a strong work ethic among my team. I aim to empower my colleagues to take ownership of their roles and initiatives, fostering innovation and continuous improvement.

As for my own leadership style, I believe in fostering a collaborative environment where ideas are valued and everyone’s voice is heard. I strive to lead by example, promoting transparency, integrity, and a strong work ethic among my team. I aim to empower my colleagues to take ownership of their roles and initiatives, fostering innovation and continuous improvement

This exclusive interview provides a sit-down with Mr. Abraham Dut Atem, the current Director for Banking Supervision and Financial Stability at the Bank of South Sudan (BoSS). Mr. Atem’s career trajectory reflects his expertise and dedication, having joined the bank in 2015 after an external audit stint at Ernst & Young. He has held various key positions within the bank, including Head of Internal Audit and Head of Finance, before assuming his current role. Under his leadership, the Banking Supervision Directorate has made significant strides towards financial stability and sector reforms, addressing crucial issues such as regulatory oversight and risk management.

In our conversation, Mr. Atem provides a comprehensive overview of the reforms spearheaded by Hon. Dr. James Garang, the governor of the Bank of South Sudan. These reforms include the expansion of banking services across the country, the introduction of digital and mobile banking, and the amendment of the Banking Act to enhance regulatory oversight. He elaborates on the bank’s efforts to improve transparency and public trust through regular communication and detailed reporting. He also discusses the shift towards a risk-based supervision approach, aligning with international standards to mitigate potential risks in a region marked by economic challenges. Join us as we delve into the dynamic and evolving banking landscape of South Sudan and the pivotal role of BoSS in fostering financial inclusion and stability.

Excerpt:

Mr. Duke, it’s a great pleasure for me to be here today and meet you, and I’m very grateful for your time. Could you please introduce yourself and just give me a flavour of what your role entails?

It’s also a pleasure meeting you. I’m Abraham Dut Atem. I’m the current director for banking supervision and financial stability. Before this role, I joined the bank in 2015 with an external audit background at Ernst & Young. Initially, I served as the head of the internal audit department until 2018, after which I moved to the finance department as its head. Last year, in November, I transitioned to deputy director of statistics briefly before assuming my current role in banking supervision.

Mr. Atem’s career trajectory reflects his expertise and dedication, having joined the bank in 2015 after an external audit stint at Ernst & Young. He has held various key positions within the bank, including Head of Internal Audit and Head of Finance, before assuming his current role

We now have digital banking and mobile banking more widely in the country, making money transfers to local rural populations easier. This expansion in the banking industry has been significant. During this time, we also pushed for an amendment of the Banking Act to increase the capital requirements for commercial banks because our economy has grown and the previous capital requirements are no longer sufficient given the exchange rate

Under Hon. Dr. James Garang’s leadership, significant reforms have been implemented in the banking sector. From your perspective, what are these key reforms, and how have they influenced the sector?

Since Dr. Leach was appointed as the governor of the Bank of South Sudan, we have seen a lot of reforms in the banking sector. Actually, starting from the Bank of South Sudan, you have all seen how we have grown until we now have branches in Nimule, which were opened recently to enhance revenue collection, especially non-oil revenue, because Nimule is one of our greatest borders. So he took that step to establish our brand there to enhance the collection of non-oil revenue. We’ve also opened many branches, like Awheel Drive, which was offered recently. It’s an initiative to expand financial services, taking financial services to the people. The president of the central bank will also attract commercial banks to come there, and in the process, commercial banks will also open, thus promoting financial inclusion. We now have digital banking and mobile banking more widely in the country, making money transfers to local rural populations easier. This expansion in the banking industry has been significant. During this time, we also pushed for an amendment of the Banking Act to increase the capital requirements for commercial banks because our economy has grown and the previous capital requirements are no longer sufficient given the exchange rate. The Act was amended to ensure non-banks like insurance companies, microfinance, and pensions are brought under the supervision of the central bank. Previously, these nonbanks were operating as deposit-takers without regulatory oversight, posing risks to depositors. The amended Act now brings all these financial institutions under regulation, a significant milestone to ensure all financial institutions operating in the economy are regulated. This amendment was finalised last year

and implemented this year. We are currently in the process of developing regulations to ensure effective implementation of these amendments.

How do you address public perception and trust in the banking sector? What steps have been taken to improve transparency and communication with the public?

Yeah, that’s a key question. You know, commercial banks face public perception issues, especially during crises when concerns about liquidity arise. To tackle this, the governor has initiated regular communication and close engagement with stakeholders. We provide detailed reports, including audited accounts and financial statements, to commercial banks, governments, and the public. This transparency allows stakeholders to assess our performance and understand our operations better. By regularly sharing our annual accounts and reports with commercial bank management and other stakeholders, we aim to build confidence and trust in our institution. Effective communication and transparency are crucial to enhancing public trust and confidence.

Communication with the public specifically—how do you do that?

The Bank of South Sudan has an active website. On this website, we publish circulars, news updates, publications, and audited accounts. This information is accessible to the public.

What key performance indicators (KPIs) or metrics do you utilise to assess the effectiveness of banking supervision?

The Banking Supervision Department, currently a Directorate, was previously integrated with statistics but has now been separated into departments focused on commercial banks and non-banks. We conduct regular onsite inspections and examinations of

commercial banks, assessing their premises, books, and reports. Our findings and recommendations are internally discussed and escalated to management if necessary. We also review external audits conducted by auditors appointed by commercial banks, ensuring they meet submission deadlines. Comparing these audits with our on-site findings helps us identify and categorise risks into low, medium, and high categories, with a focus on systemic risks and systemically important banks. This shift from compliance-based to risk-based supervision allows us to prioritise and mitigate significant risks affecting the economy.

You’ve already mentioned some aspects of the risk management framework in place. Considering the regional instabilities and challenges South Sudan faces, could you elaborate on your framework and how you mitigate potential risks?

Like I mentioned earlier, we currently employ a risk-based supervision approach that adheres to international standards and core principles. As part of the East African Community (EAC), we follow the EAC’s model framework

for risk management. Given that banks operate across borders, such as those from Kenya and Uganda in South Sudan, we leverage the experience and frameworks of their parent companies to supervise subsidiaries effectively. This regional framework ensures consistency in supervising commercial banks. Additionally, as part of the international community, we apply basic core principles that focus on assessing the capital adequacy, market discipline, management competencies, and control environments of banks.

With the current currency and exchange rate fluctuations, how do you plan to mitigate these challenges over the coming months and years? We operate under a floating exchange rate regime, which requires us to manage our currency rate based on market conditions. The central bank sets a base rate and intervenes to provide dollars to commercial banks. However, commercial banks have the discretion to set their rates based on operational needs and market conditions. The goal is to maintain a stable and reasonable exchange rate to stabilise market prices.

We currently employ a riskbased supervision approach that adheres to international standards and core principles. As part of the East African Community (EAC), we follow the EAC’s model framework for risk management. Given that banks operate across borders, such as those from Kenya and Uganda in South Sudan, we leverage the experience and frameworks of their parent companies to supervise

subsidiaries effectively

Is there potential for South Sudan to move away from a floating exchange rate?

Predominantly, if you observe most countries, they operate under a floating exchange rate. In a capital market like ours in South Sudan, controlling the exchange rate isn’t feasible because it relies on willing buyers and sellers of stocks. Therefore, the likelihood of reverting to a fixed exchange rate is not high, considering the market’s dynamics. Economists generally favour floating exchange rates.

How would you describe Hon. Dr. James Garang’s leadership style and its impact on the banking sector?

Dr. Garang has adopted a participatory leadership style at the central bank, blending both bottom-up and topdown approaches. He values input from all levels of the organisation, leveraging a hybrid approach where decisions benefit from data and insights gathered across different levels. This participatory approach extends to interactions with commercial banks, where decisions affecting them are made collaboratively. For instance, during branch openings aimed at enhancing revenue collection,

commercial banks are consulted and invited to participate, fostering a sense of collective responsibility and building trust within the sector.

Looking at global trends in banking, how do you perceive the influence of global banking trends and regulations on your work? Has this had an impact on your department and its operations?

The banking industry is rapidly evolving globally, driven by technological advancements and regulatory changes. We’ve witnessed significant shifts, including the adoption of artificial intelligence (AI), which is transforming traditional banking practices. In our department, we’ve embraced technology like efficient banking applications to streamline processes such as document handling and communication with banks. This has reduced reliance on physical paperwork and improved efficiency. While these global trends affect banking worldwide, their impact on South Sudan is particularly significant due to our lower IT infrastructure levels. We’re preparing to adapt to emerging financial instruments and regulatory frameworks to stay abreast of these changes.

The banking industry is rapidly evolving globally, driven by technological advancements and regulatory changes. We’ve witnessed significant shifts, including the adoption of artificial intelligence (AI), which is transforming traditional banking practices

Our strategic plan, a comprehensive five-year policy document, underscores our commitment to long-term financial stewardship. The assurance of a minimum five-year tenure for the governor allows for continuity in policy formulation, implementation, evaluation, and reporting, which are pivotal in achieving sustainable economic goals

Recently, in the arc of our nation, the Bank of South Sudan was established by an act of parliament. However, as you know, our Constitution delineates significant powers for the President. Since our independence in 2011, we have witnessed approximately ten changes in governance, corresponding to ten different governors. This turnover rate signifies a new appointment almost every year.

Could you elaborate on the recent grant of independence to the Bank of South Sudan and its implications? How does this independence empower the bank to execute its strategic plans and manage financial reforms, particularly in relation to the signed MOU on overdrafts with the Ministry of Finance?

Recently, we received positive news: the President granted independence to the Bank of South Sudan through a decree stipulating that the central bank governor can only be removed with the support of a two-thirds majority in the cabinet. This marks a crucial shift from previous practices where a minister’s recommendation alone could influence appointments. Now, any proposal to remove the central bank governor must undergo cabinet scrutiny and secure a robust legislative mandate, ensuring greater stability and autonomy for the institution. This newfound independence empowers us to plan, execute, monitor, and evaluate our strategic initiatives effectively. Our strategic plan, a comprehensive fiveyear policy document, underscores our commitment to long-term financial stewardship. The assurance of a minimum five-year tenure for the governor allows for continuity in policy formulation, implementation, evaluation, and reporting, which are pivotal in achieving sustainable economic goals.

Additionally, I have learned that we have signed a memorandum of understanding (MOU) with the Ministry of Finance regarding overdrafts. Although

I have not yet reviewed the document personally, it was communicated in recent meetings that this MOU has been successfully negotiated. If confirmed, this agreement represents a significant step in our financial reforms. Overdrafts have been identified as a key driver of inflation, as they not only inflate our balance sheet but also strain liquidity by deferring government payments. Halting overdrafts could mitigate these effects, supporting our broader efforts to stabilise inflationary pressures.

In conclusion, both the newfound independence granted by the President and the potential implementation of the MOU on overdrafts signify positive strides towards enhancing our financial stability and governance. These developments are crucial as we continue our mission to strengthen the economic foundations of South Sudan.

In regulating the banking sector, how do you manage interest rates to ensure that changes in interest rates don’t adversely affect the public’s assets?

In our regulatory framework, interest rates are set and documented in accordance with UK standards. Commercial banks are mandated to adhere to a base rate, adjusting it by a specified margin. This regulatory framework provides a stable environment within which banks operate, ensuring that any fluctuations in interest rates are within acceptable limits. This approach aims to mitigate risks to the public’s assets while maintaining financial stability and confidence in the banking system.

Was the Baton Just Passed or Dropped? A Spin Doctor’s Analysis of the State of the U.S. Presidential Race

By Louis Perron, PhD

The assassination attempt on Donald Trump and the withdrawal of Joe Biden have turned the race for the White House upside down. The polls are close, and in terms of predicting the outcome of the election, they are next to meaningless at this point in time.

As the past few weeks have shown, there is so much that can still happen until November. We don’t know how people will see and feel the economy by then, how the wars in Ukraine and Gaza will develop, who will show up and vote, or how third-party candidates will affect the race. We have to come to terms with the fact that this is a close race and will probably remain so.

Add to that that polling in the U.S. has been seriously skewed for several election cycles in a row. Ever since the surprise election of Donald Trump in 2016, pollsters have claimed to have fixed the issue(s), but that remains to be seen. As I have argued in a recent piece for the U.S. magazine Newsweek, with months to go until election day, it also really doesn’t matter whether one is a point or two behind or ahead. What matters is to have the right game plan to win the race.

Political scientists have always been interested in elections, but their main ambition was to predict the outcome or even to prove that campaigns don’t matter. As a PhD in political science turned spin doctor, I always found the actor perspective more interesting.

In other words, what can or should be done to win an election?

The fact that Joe Biden endorsed Kamala Harris when he withdrew his own candidature set in motion a dynamic where Democrats immediately coalesced behind the incumbent vice president. Within a week, she apparently raised 200 million USD and signed up close to 200’000 volunteers. These two numbers illustrate the enthusiasm of the Democratic base for Kamala Harris. It’s a welcome development for Democrats and may help them close what in the jargon of politicians is called the “enthusiasm gap,” meaning that until lately, Republican voters were more motivated for their top candidate and to turn out and vote than their Democratic counterparts.

Kamala Harris has also had a great campaign start online. Beyoncé and Charli XCX have both implicitly or explicitly endorsed her. In general, I am sceptical about the endorsing power of celebrities, that is, they cannot deliver votes per se. A recent study conducted by

USA Today and Suffolk University has confirmed that yet again. For me as a political consultant, the question is always how to use an endorsement strategically and how it fits into the overall campaign plan. In the case of Harris, it’s to use it as a bridge to younger voters and a door opener. Their goal is to introduce her as someone that younger voters can relate to better than somebody like Trump or Biden, for that matter. A lot of the traffic generated online around Charli XCX’s brat girl summer is apparently organic. That is, of course, of particular value, as I have long been highly sceptical about the value of bought online traffic and engagement. Again, this is a welcome development for Democrats, as they have not been polling as well as they should among younger voters during the past months.

From a campaign perspective, I would certainly try to maximise the online engagement, but I would in no way rely on it nor expect too much from it. Younger voters (at least in the Western world) have

been notoriously unreliable to turn out and vote. It is highly likely that in the end, the 2024 U.S. presidential race will be decided by swing voters.

Every election campaign is always a competition about which side can define themselves and the other side first. In most polls, a majority of voters say that overall they have an unfavourable opinion about Harris. It’s fair to say, however, that for many voters, this is an impression that they have of Harris and not a final verdict. Public opinion about her is still rather undefined and can change. That’s why timing is of essence in this case. Kamala Harris and her team have to define themselves before Donald Trump and Republicans get a chance to do so, and they will not waste time. In other words, Harris better get ready for a barrage of negative attack ads on her coming from Trump and Republicans.

Negative campaigning is as old as election campaigns themselves. In the U.S., due to the political culture and the electoral system,

It’s been said that great campaigns are never a rerun of previous great campaigns. In that sense, I have long argued that Donald Trump needs to reinvent himself. I don’t mean to be cynical, but the assassination attempt on him would have been an opportunity to do so

they are however carried out in a very explicit manner. In an election, voters ultimately have to make a choice, and that’s why election campaigns are all about drawing contrast and highlighting differences.

One of Harris’ major vulnerabilities is certainly the situation at the southern border. It’s an issue that overwhelmingly plays in favour of Donald Trump. To their defence, Democrats can legitimately say that it was Donald Trump himself who killed the bipartisan border bill. But then again, why did Democrats ignore the issue during the first three years of the term?

And beyond the issue of immigration, in almost every poll, a majority of voters disapprove of the job Joe Biden does as president and think that the country goes in the wrong direction. As I write in my new book “Beat the Incumbent: Proven Strategies and Tactics to Win Election,” elections with an incumbent are foremost a referendum on the incumbent. Strategically speaking, Donald Trump and Republicans have to tie Kamala Harris to Joe Biden’s record. After all, she obviously was part of the Biden-Harris administration.

It’s been said that great campaigns are never a rerun of previous great campaigns. In that sense, I have long argued that Donald Trump needs to reinvent himself. I don’t mean to be cynical, but the assassination attempt on him would have been an opportunity to do so. During a crisis, one always has to think of pictures, and there is no doubt that the picture of Donald Trump with his fist in the air was very powerful.

During the Republican convention, there was much talk that we would see a new and softer Donald Trump, and we did during the first part of his acceptance speech, when he read off the teleprompter. After that, he pivoted back to the Donald Trump we have known and thereby reminded swing

voters why they voted him out of office four years ago.

Donald Trump is probably the most polarising politician on earth right now. There is no doubt that he has a tremendously enthusiastic base of supporters. His legal troubles show that even a conviction doesn’t change much for them. The problem is that they can all only vote once, and under normal circumstances, they are not enough to win a presidential election.

During his time at the White House, Trump spent much of his time appealing to the base and seemed to almost on purpose try and turn off the majority that had not voted for him. If there was any outreach done, it was with young black men, and it worked surprisingly well. I actually think that if he had done more of this, he could have won reelection last time.

If Donald Trump wants to win this time, he has to do something that has become unfashionable in U.S. politics, which is to reach out to swing voters in a meaningful way. Remember that a U.S. presidential election means you spend a billion U.S. dollars, ultimately to influence 5% of the voters who live in a handful of states.

Louis Perron, PhD, is a political scientist and consultant based in Switzerland. He has orchestrated successful election campaigns in various countries around the globe. He speaks fluent English, German, and French and has been teaching political marketing for more than a decade. The title of his latest book is “Beat the Incumbent: Proven Strategies and Tactics to Win Elections,” published by Radius Book Group.

Sanjeev Gopaul and Credentia Group’s Path to Excellence

In an exclusive interview, we explore the inspiring journey of Mr. Sanjeev Gopaul, the visionary founder of Credentia Group. From its humble beginnings in 2012 as a small start-up with just two employees, Credentia has grown into a diversified conglomerate with over 65 dedicated professionals. Mr. Gopaul’s entrepreneurial spirit, ignited in his early teens and inspired by influential Mauritian conglomerates, has driven Credentia’s remarkable growth and expansion. Through brands like Cyberati, Credentia, and Unikclik, the group has consistently prioritized client satisfaction and employee well-being, positioning itself as a trailblazer in the financial services sector.

Key Takeaways from the Interview:

Vision and Inspiration

Mr. Gopaul founded Credentia Group in 2012, inspired by Mauritian conglomerates. Starting with a single company in the financial services sector, it has grown to include brands such as Cyberati, Credentia, and Unikclik. The company’s success is due to a dedicated team and a commitment to excellence.

Significant Achievements

Recognized as one of the Top 40 African Caribbean Business Leaders, Mr. Gopaul’s most significant achievement is the successful expansion and diversification of Credentia Group. From a small start-up, it has become a thriving network of companies that consistently deliver innovative solutions and empower the African Caribbean community through job creation, mentorship, and community engagement.

Innovation and Differentiation

Credentia Group has pioneered initiatives such as the online brokerage business in Mauritius and the establishment of the first Single Family Office on the island. The launch of www. doingbusinessinmauritius.com in 2024 connects various opportunities for foreigners looking to invest, work, retire, and live in Mauritius.

Leadership Philosophy

Mr. Gopaul’s leadership is guided by principles of transformational leadership, inclusivity, meritocracy, adaptability, and succession planning. Influenced by leaders like Mahatma Gandhi and Steve Jobs, he emphasizes motivation, inspiration, and creating an environment where diverse perspectives thrive.

Corporate Social Responsibility

Through the M&S Foundation, Credentia focuses on improving medical assistance for children with congenital physical disabilities, providing financial support for surgery and rehabilitation. This reflects Credentia’s dedication to fostering positive change in the community.

Global Economic Impact

African and Caribbean business leaders drive economic growth by promoting innovation, building strong networks, becoming global players, advocating for policy reforms, and inspiring the younger generation. Mr. Gopaul emphasizes the importance of these roles in fostering global competitiveness.

Overcoming Challenges

Sustaining growth despite external shocks like Covid-19 and geopolitical instability has been challenging. Credentia’s focus on brokerage activities and diversification into real estate, digital, and outsourcing services has been crucial in overcoming these challenges.

Cultivating Innovation

Innovation is a cornerstone of Credentia’s success. Launching Cyberati Digital Ltd has enhanced their digital platforms, improving efficiency and client experiences. Partnerships, such as with Five9, have further driven their capabilities.

Milestones and Impact

The launch of www. doingbusinessinmauritius.com on Mauritius’ Independence Day signifies Credentia’s commitment to guiding foreigners in investing, retiring, living, and working in Mauritius, marking a significant milestone for the group.

Future Vision

Credentia aims to solidify its position as a pioneer in the financial industry with goals of global expansion, technological advancements, diversification, and talent development. The upcoming international office in Dubai will offer services tailored to African and Caribbean businesses, furthering Credentia’s commitment to growth and innovation.

Abdulmajid Nsekela’s Leadership Impact and CRDB Bank’s Strategic Elevation

Abdulmajid Nsekela’s Transformative Tenure

Since October 2018, Abdulmajid Nsekela has served as the Group CEO and Managing Director of CRDB Bank, significantly transforming Tanzania’s financial sector. His leadership has addressed systemic challenges in talent management and technology, enhancing service delivery, cost efficiency, and productivity. Strategic reforms, including a revamped operating model with streamlined processes and strengthened governance, led to an impressive 87% increase in profitability by 2019.

Pioneering Innovations

Under Nsekela’s leadership, CRDB Bank has pioneered mobile banking, ATMs, and the Agent Banking

Network, greatly improving banking accessibility nationwide. The CRDB Bank SHE Initiative empowers women entrepreneurs, while Nsekela’s advocacy for inclusive finance and digital transformation across Africa highlights his influential leadership beyond CRDB Bank.

Visionary Leadership

How did you approach the initial challenges at CRDB Bank upon your appointment, and what were the key strategic reforms you implemented to turn around the bank’s performance?

Upon my appointment, I collaborated with industry experts and regulators to identify systemic issues, including challenges in talent management and technology. I focused on enhancing service delivery, cost management, and productivity. By reorienting the bank towards sales and service, we unlocked new opportunities and created synergy. Digital adoption redefined our service delivery, expanded offerings, and extended services to underserved areas, driving financial inclusion and transforming lives.

Profitability Surge

The new operating model you introduced in 2019 led to a significant increase in CRDB Bank’s profitability. Can you elaborate on the main components of this model?

The model aligned the bank’s operations with its 2018-2022 strategy, focusing on transformation

and performance enablers. Key components included re-engineering processes, restructuring organisational functions, and establishing the Business Transformation Directorate. Enhancing governance, performance management, and strengthening risk and compliance were also crucial, contributing to the significant increase in profitability.

Financial inclusion initiatives

Could you discuss the impact of the CRDB Bank SHE Initiative and other programmes aimed at mentoring young executives and empowering women in business leadership?

The SHE Initiative empowers women entrepreneurs with tailored financial products, business training, and mentorship. This increases access to finance for women and equips them with essential business management skills. Our mentorship programmes nurture future leaders, cultivating strategic thinking and decision-making among young executives, significantly impacting financial inclusion and economic empowerment.

Innovative Solutions

How have innovations in mobile banking, ATMs, and the Agent Banking Network transformed banking accessibility and the customer experience in Tanzania?

Our mobile banking platform, SimBanking, offers convenience and flexibility. The expanded ATM network

My leadership at CRDB Bank has validated the value of innovation and financial inclusion. I hope other African financial institutions embrace digital transformation, prioritise customer-centric approaches, and foster strong governance and leadership development to enhance operational efficiency and service delivery

and Agent Banking Network have brought banking services closer to communities, especially in rural areas. From 5,000 agents in 2018 to over 30,000 in 2024, this initiative has enhanced service delivery and financial inclusion, empowering more Tanzanians to participate in the formal financial system.

Recognition and Awards

What do recognitions like being named one of the Top 25 African Finance Leaders mean to you and CRDB Bank?

These accolades highlight our commitment to excellence, innovation, and financial inclusion, validating our efforts to empower communities and drive economic growth. For me, these recognitions inspire continued leadership with passion and integrity. For CRDB Bank, they reinforce our position as a leading financial institution dedicated to providing exceptional service and fostering sustainable development.

Career Evolution

How did your experiences in various leadership roles within corporate banking and retail departments

shape your approach to leading the bank today?

Starting as a bank officer allowed me to learn from the bottom up. My diverse experiences across corporate banking and retail departments continue to shape my leadership approach, providing a deep understanding of customer needs, operational challenges, and market dynamics. This holistic perspective enables me to lead with a focus on innovation, customer-centricity, and operational excellence.

Impact Beyond CRDB Bank

How has your leadership at CRDB Bank influenced the broader banking landscape in Tanzania, and what lessons could be applied to other financial institutions across Africa?

My leadership at CRDB Bank has validated the value of innovation and financial inclusion. I hope other African financial institutions embrace digital transformation, prioritise customer-centric approaches, and foster strong governance and leadership development to enhance operational efficiency and service delivery.

The Next Wave: Pandemics Threatening the World and Africa

By Muhammed Joshua

To safeguard public health, it is essential to stay vigilant and develop effective responses to these evolving threats, particularly in Africa, where existing health systems and infrastructure may be vulnerable to disruptions

As the world continues to recover from the COVID-19 pandemic, the threat of future outbreaks remains a pressing concern. The global health landscape is characterised by unpredictability, with emerging diseases and mutations posing new risks. To safeguard public health, it is essential to stay vigilant and develop effective responses to these evolving threats, particularly in Africa, where existing health systems and infrastructure may be vulnerable to disruptions.

Recent years have highlighted the volatility of global

health security, showcasing the devastating impact of pandemics on human life and economies. The COVID-19 pandemic, which has claimed over 3 million lives, has demonstrated the rapid spread of a new virus, causing significant disruptions to societies and economies worldwide. Beyond COVID-19, outbreaks such as Ebola, Zika, and H1N1 underscore the persistent and evolving nature of pandemic threats. The World Health Organisation (WHO) monitors several pathogens with the potential to cause future pandemics, including novel influenza strains, coronaviruses, and vector-borne diseases.

Global/Economic Impact of Past Pandemics

The COVID-19 pandemic had a devastating impact on the global economy, with the World Bank estimating a 3.5% contraction in 2020, the deepest recession since World War II. The economic loss is staggering, with estimates suggesting a cumulative output loss of $9 to $12 trillion between 2020 and 2021. The International Monetary Fund (IMF) reported a global contraction of 3.5% in 2020, followed by a partial recovery of 6% growth in 2021. However, the pandemic left long-term scars, including high unemployment rates, and disrupted economic activities.

Specific industries, such as travel, hospitality, and retail, were profoundly affected. McKinsey & Company estimates it may take up to five years for the global economy to fully recover from the pandemic’s effects. As the economy continues to navigate this new reality, policymakers and

business leaders must prioritise strategies to mitigate these impacts and foster sustainable growth.

Emerging threats and the need for Vigilance

The outbreak of monkeypox in 2022, with over 90,000 cases reported across multiple countries, highlights the need for vigilance. These events illustrate how swiftly novel pathogens can spread and disrupt global health.

Climate change is altering ecosystems and increasing the risk of zoonotic diseases, which are transmitted from animals to humans. Rising temperatures and changing rainfall patterns can expand the habitats of disease vectors, such as mosquitoes, potentially leading to new outbreaks. Global travel and rapid urbanisation also play significant roles in the spread of infectious diseases, as exemplified by the 2014 Ebola outbreak in West Africa.

Lessons Learned from Past Pandemics

The COVID-19 pandemic has highlighted the importance of robust early warning systems and surveillance to detect and respond to outbreaks promptly. Countries with strong surveillance systems, such as South Korea and Taiwan, were able to control the spread more effectively. Rapid response is crucial, as governments and health organisations must mobilise resources and implement containment measures quickly.

Strengthening health systems and infrastructure is vital for handling future crises. The pandemic exposed vulnerabilities, including insufficient hospital beds, ventilators, and personal protective equipment (PPE). Increasing investment in healthcare is essential to ensure that systems can respond effectively to future pandemics.

International collaborations are also vital in addressing global health security. Initiatives like GAVI, the Vaccine Alliance, work to ensure equitable access to vaccines and improve global health security. The Global Health Security Agenda (GHSA) and the Coalition for Epidemic Preparedness Innovations (CEPI) play crucial roles in these efforts.

Focus on Africa Regional Risks

Africa’s complex environment presents distinct challenges to pandemic preparedness. The continent’s diverse climate, varied healthcare infrastructure, and socioeconomic conditions create vulnerabilities exacerbated by

The COVID-19 pandemic has starkly illuminated the vulnerabilities in global health systems and the profound interconnections between health, economy, and climate. The staggering economic impacts—nearly $28 trillion in global losses and $173 billion in Africa alone— emphasise the critical need for strengthened health infrastructure, international cooperation, and accelerated research

diseases like Ebola and Rift Valley fever. Limited healthcare resources, political instability, and high population density further hinder the continent’s ability to respond effectively to health crises.

Despite these challenges, Africa has demonstrated remarkable adaptability. The African Development Bank (AFDB) estimates that the pandemic pushed 29 million Africans into extreme poverty in 2021 and led to the loss of approximately 22 million jobs. The World Bank reported that Africa’s GDP growth was severely impacted, with a sharp decline in economic activity.

To bolster its preparedness, Africa is taking proactive steps. The Africa Centres for Disease Control and Prevention (Africa CDC) play a crucial role in coordinating responses and enhancing surveillance systems. Regional collaborations, such as the African Vaccine Acquisition Trust (AVAT), aim to ensure equitable access to vaccines and other critical resources. Emerging Future Pandemics

The World Health Organisation has identified several pathogens with pandemic potential, including zoonotic viruses like Ebola and Nipah. Climate change has significant implications for human health, altering the distribution and spread of vector-borne diseases. The Global Commission on Adaptation estimates climate change could cost the global economy up to $23 trillion by 2050 if adaptation measures are not taken.

Zoonotic diseases remain a significant threat. The Nipah virus, transmitted from bats to humans, has a high fatality rate. Antimicrobial resistance (AMR) is also a growing concern, as infections that were once treatable with antibiotics may become deadly. Old pathogens, such as poliovirus and avian influenza, also pose potential pandemic risks.

Experts on Potential Future Pandemics and Preparedness

Experts like Dr. Peter Daszak, Dr. Anthony Fauci, Dr. Jeremy Farrar, Dr. William Karesh, Dr. Maria Van Kerkhove, and Dr. Bruce Aylward emphasise the importance of monitoring wildlife diseases, preparing for antibioticresistant bacteria, and investing in global health systems.

The COVID-19 pandemic has starkly illuminated the vulnerabilities in global health systems and the profound interconnections between health, economy, and climate. The staggering economic impacts—nearly $28 trillion in global losses and $173 billion in Africa alone—emphasise the critical need for strengthened health infrastructure, international cooperation, and accelerated research. As we confront future pandemics and the growing threat of climate change, it is imperative to invest in resilient health systems and sustainable solutions.

ICT Youth Hubs in Africa

By

Blossom Ukoha

The Nigerian Minister of Communications, Innovation, and Digital Economy and co-founder of CcHub aptly stated, “ICT youth hubs are not just physical spaces; they are communities of like-minded individuals who are passionate about using technology to solve real-world problems.” Representing more than just incubators for start-ups, ICT youth hubs in Africa are vital engines of digital transformation, driving innovation, entrepreneurship, and skill development. Africa is experiencing a technological

renaissance, driven by a new wave of innovation and entrepreneurship. At the heart of this transformation are tech hubs—dynamic spaces that provide resources, mentorship, and networking opportunities for young entrepreneurs and tech enthusiasts.

ICT youth hubs have proliferated across Africa in response to the continent’s unique challenges and opportunities. According to Statista, as of 2023, there are over 640 active tech hubs on the

ICT youth hubs are not just physical spaces; they are communities of like-minded individuals who are passionate about using technology to solve real-world problems

continent, with countries like Nigeria, Kenya, South Africa, and Egypt leading the charge. Additionally, IFC reports that Africa’s digital economy could generate over $180 billion in value by 2030, creating millions of jobs in the process. These hubs are not only concentrated in major cities but are also spreading to smaller towns and rural areas, bringing digital opportunities to more remote communities.

Notable ICT Youth Hubs in Africa iHub Kenya:

Founded in 2010 by Erik Hersman, iHub is one of Africa’s most well-known innovation hubs, situated in Nairobi. It functions as a bustling community hub for developers, creatives, and digital entrepreneurs, offering co-working spaces, financial opportunities, and mentorship. The hub also holds events, workshops, and hackathons to promote cooperation and creativity. Known as “Silicon Savannah,” iHub has played a significant role in the expansion of Kenya’s technology sector.

CcHub (Nigeria):

Founded by Bosun Tijani and Femi Longe in 2010, CcHub provides a platform for technology-oriented individuals to share ideas for solving social problems in Nigeria. As Nigeria’s first open living lab and pre-incubation facility, CcHub aims to speed up the use of social capital and technology for economic success. It provides networking opportunities, tools, mentorship, finance, acceleration, and incubation. CcHub has been essential in developing tech talent and innovation in Nigeria.

MEST (Ghana):

Located in Accra, Ghana, the Meltwater Entrepreneurial School of Technology (MEST) was founded by Jorn Lyseggen in 2008. It serves as an incubator, seed fund, and training

programme for prospective digital entrepreneurs throughout Africa. MEST offers a one-year programme for training entrepreneurs, followed by seed money and incubation. The curriculum equips graduates with comprehensive instruction in business, communications, and software development, enabling them to start and grow profitable tech firms. MEST has a proven track record of generating successful business owners and startups.

Ennovate Ventures (Tanzania):

Ennovate Ventures is a tech venture factory dedicated to investing in ambitious founders who leverage innovation to improve lives, create jobs, and accelerate sustainable development. They build and fund the next wave of disruptive innovations to drive Africa’s prosperity. Committed to supporting underrepresented tech founders, Ennovate Ventures collaborates with visionary companies and development organisations to design and implement innovative entrepreneurship programmes across various sectors. Founded by Francis

ICT youth hubs have proliferated across Africa in response to the continent’s unique challenges and opportunities. According to Statista, as of 2023, there are over 640 active tech hubs on the continent, with countries like Nigeria, Kenya, South Africa, and Egypt leading the charge

Despite their growth, ICT youth hubs in Africa face challenges such as funding, infrastructure, and policy. Inadequate infrastructure, particularly internet and electricity, hinders their operations. Only 28% of Africans have internet access, according to the International Telecommunication Union

Omorojie, they focus on addressing the continent’s most pressing challenges.

Impact Hub (South Africa):

Impact Hub Johannesburg, a member of the worldwide Impact Hub network, combines innovation and entrepreneurship to create positive social impact. It offers social entrepreneurs a community, collaborative workspace, and support. Impact Hub Johannesburg provides access to a network of investors and partners, co-working locations, and mentorship. The hub also organises seminars and events to promote cooperation and information exchange.

The Innovation Village (Uganda):

Located in Kampala, Uganda, the Innovation Village creates an innovative ecosystem by bringing together partners, investors, and entrepreneurs. It provides funding, acceleration, and incubation, along with networking opportunities, mentorship, and coworking spaces. The centre aims to support the expansion of Uganda’s IT industry through promoting entrepreneurship and innovation.

Iceaddis (Ethiopia):

Ethiopia’s first innovation hub and co-working space, Iceaddis, is situated in Addis Ababa. It offers networking opportunities, training, and mentorship to young entrepreneurs and IT enthusiasts. Iceaddis provides services such as co-working spaces, acceleration, and incubation and organises hackathons, seminars, and other activities to support innovation and entrepreneurship in Ethiopia.

Jokkolabs (Senegal):

Jokkolabs, headquartered in Dakar, Senegal, is a collaborative workspace and open innovation environment. It fosters social innovation and entrepreneurship by providing co-

working spaces, events, and programs. Jokkolabs encourages creativity and teamwork among developers, creatives, and entrepreneurs, offering training, guidance, and connections to a network of partners and investors.

BongoHive (Zambia):

BongoHive, Zambia’s first innovation and technology cluster, is located in Lusaka. It offers various startupfocused initiatives, including co-working spaces, acceleration, and incubation. BongoHive provides tools, networking opportunities, and mentorship to help Zambia’s digital sector thrive. The centre also holds seminars, hackathons, and other activities to promote creativity and entrepreneurship.

Technology Village (Zimbabwe):

Tech Village in Zimbabwe helps entrepreneurs and tech firms by offering coaching, co-working locations, and connections to a network of partners and investors. It provides tools, instruction, and networking opportunities to promote creativity and business. The hub also holds seminars and activities to encourage the exchange of knowledge and skill development.

EtriLabs (Benin):

EtriLabs in Benin is an innovation hub that supports entrepreneurs and tech firms. It offers co-working locations, funding and mentorship opportunities, and incubation programs. EtriLabs provides tools, instruction, and networking opportunities to promote creativity and business. The hub also organises seminars and activities to encourage the exchange of knowledge and skill growth.

ActivSpaces (Cameroon):

ActivSpaces is a tech hub in Cameroon that offers developers, entrepreneurs, and tech enthusiasts a collaborative

atmosphere. It provides access to finance, incubation programmes, and co-working locations. ActivSpaces promotes innovation and entrepreneurship through networking opportunities, mentorship, and resource provision. The hub also holds seminars and activities to encourage the exchange of knowledge and skill development.

mHub (Malawi):

mHub, the first technology and innovation hub in Malawi, offers a place for developers, entrepreneurs, and tech lovers to collaborate and advance their careers. It provides coworking locations, acceleration, and incubation. Situated in Lilongwe with offices in Blantyre, Malawi, and Lusaka, Zambia, mHub has helped emerging entrepreneurs secure over $1 million in funding, resulting in the creation of over 950 jobs and impacting over 5,000 individuals across various value chains. Over 40,000 young people have received business and technological training from the hub.

K-Lab (Rwanda):

K-Lab, short for Knowledge Lab, is a unique open technology hub in Kigali, Rwanda, where innovators, entrepreneurs, and recent graduates gather to collaborate on projects or ideas, turning them into workable business models. The kLab community includes seasoned mentors who provide both business and technical support. K-Lab organises workshops, hackathons, networking events, and boot camps to foster collaborations, investment, and funding. Its goal is to create a vibrant community of mentors and entrepreneurs while encouraging, facilitating, and supporting the creation of new ICT solutions.

Challenges and the Future of ICT Youth Hubs

Despite their growth, ICT youth hubs in

Africa face challenges such as funding, infrastructure, and policy. Inadequate infrastructure, particularly internet and electricity, hinders their operations. Only 28% of Africans have internet access, according to the International Telecommunication Union. Additionally, the regulatory environment in many African countries can be challenging for start-ups, necessitating more supportive policies that encourage innovation and entrepreneurship.

Rebecca Enonchong, the founder of AppsTech and Board Member of AfriLabs, opined, “Tech hubs are essential for nurturing the next generation of African entrepreneurs. They provide a safe space for experimentation and failure, which is critical for innovation.” The future of ICT youth hubs in Africa is promising as the continent continues to embrace digital transformation. Trends include expanding beyond major cities to smaller towns and rural areas, bridging the urban-rural digital divide, and focusing on emerging technologies like AI, blockchain, and IoT. These hubs prepare young innovators for the future job market by training them in these technologies. Collaboration between tech hubs, government, private sector, and international organisations is expected to increase, providing resources and support for hubs to scale their impact. Additionally, ICT hubs are exploring sustainable business models, offering paid training programmes, consulting services, and partnering with corporations for innovation challenges.

By providing young Africans with the tools and resources they need to succeed, these hubs are unlocking the continent’s immense potential and paving the way for a brighter future. As Africa continues to embrace the digital age, the role of ICT youth hubs will become even more critical in shaping the continent’s economic and social landscape. With continued support and investment, these hubs can help Africa realise its vision of a prosperous and inclusive digital economy.

By providing young Africans with the tools and resources they need to succeed, these hubs are unlocking the continent’s immense potential and paving the way for a brighter future. As Africa continues to embrace the digital age, the role of ICT youth hubs will become even more critical in shaping the continent’s economic and social landscape

East Africa Economic Outlook 2024

By Tewodros Sisay and Archibald Kelvin Gichuru

Introduction

Amid a global economic landscape mired by supply chain constraints caused by conflicts and geopolitical tensions, the East African region continues to show signs of economic resilience and promise of growth. This is thanks to factors such as economic stimulus from various international organizations, renewed investor interest, infrastructure reforms, a healthy services sector, government efforts to nurture a healthy investor climate and to promote tourism after the COVID-19 pandemic, and good agricultural output.

Here are the economic outlooks for the region’s two largest economies—Ethiopia and Kenya—for the remainder of fiscal 2023 through fiscal 2024. Both show signs of slow but steady economic growth.

Ethiopia

After various conflicts, including a civil war from 2020 through 2022, Ethiopia’s gross domestic product grew 5.3% in 2022 and is estimated to grow by 6.0% in 2023 (figure 1).1 In the medium term, the country— East Africa’s largest economy—is expected to average 7.1% GDP growth from 2024 through 2027,2 partly as it recovers from recent instability and partly due to the temporary debt-repayment suspension effected by its bilateral lenders, higher energy exports, and reform programs expected to attract foreign direct investment.

Similarly, a rebound in the services sector (which contributes about 38% of GDP)3—particularly in tourism—and the anticipated liberalization of the banking sector will be the primary drivers for this positive outlook.

For example, in 2024, tourist arrivals are expected to increase by about 12%,4 compared to 2023, boosting sector earnings by 35%,5 as travel restrictions ease and policies are implemented to integrate the tourism sector into the country’s regional economic strategy.

In the financial sector, deposit growth could reach nearly 27% in 2024,6 with the anticipated entry of international banks and other financial institutions likely to increase the adult population’s access to banks. This is also supported by growth in digital financial services underpinned by a growing telecommunications sector and Ethiopia’s digitization agenda.

Agriculture (which contributes about 32% of GDP)7 is expected to rebound, growing 4.7% in 2024,8 thanks to favorable weather conditions, adequate rainfall, privatization of state-owned sugar factories, and government initiatives in areas such as irrigation.

The industries sector (which contributes about 29% of GDP)9 is expected to be underpinned by the expansion of the manufacturing sector (about 12.5% in 2024)10 and driven by investments in industrial parks and transport infrastructure. Together with government investment and multilateral funding, this economic climate will also support growth in the construction sector. Investment in alternative energy sources (such as wind) will see energy production increase by about 14% in 2024, compared to a year ago, which will in turn boost energy exports.11

However, headwinds related to recurrent internal conflicts, a high cost of living limiting private consumption, fiscal pressures, challenges in doing business (extensive bureaucratic processes and limited access to foreign currency), and liquidity challenges weigh on the growth outlook.

Besides, inflation is another major issue for the Ethiopian economy. For example, inflation steadily increased to 33.9% in 2022, from 26.8% in 2021,12 mainly driven by the expansion in money supply and cost-push factors attributable to the global increase in fertilizer and fuel prices as well as supply chain disruptions in the country. Inflation is estimated to average 30.8% in 2023 (figure 2),13 as food and nonfood price increases moderate.

While the inflation outlook is expected to improve from 2024 through 2027, inflation will still remain in doubledigit territory.14 Factors like the depreciation of the birr, El Niño–related weather shocks, and internal conflicts continue to disrupt supply chains, posing upside risks to the inflation outlook.

Total household spending is expected to grow by 23.6% in 2023, driven primarily by high inflation. However, it is also forecast to contract by 5.7% in 2024, due to the depreciation of the birr and the effects of high inflation weighing down on the purchasing power of consumers.15

Ongoing investments in infrastructure and electricity and government’s commitment to economic reforms— including its privatization policy—are forecast to see foreign direct investment increase by over 24% in 2024 compared to 2023.16 This too will be supported by the development of special economic zones and the country’s focus on creating a safe investment climate.

Yet, despite strong inflows of expected foreign direct investment (figure 3), the Ethiopian birr is forecast to depreciate further—from an expected 56.4 per US dollar in 2023 to approximately 70 per US dollar in 2024.17 This is mainly due to increased imports, increased demand for the dollar, and higher global commodity prices. In 2022, Ethiopian foreign reserves and import cover decreased to reach only half a month’s cover at US$1.2 billion, pressurizing the foreign exchange market and widening the gap between the official and parallel market rate.

Ethiopia’s total debt stock grew by 10.8% in 2022, yet total debt as a share of GDP declined to 56.1% in the same year—down from 63.9% the previous year—driven largely by high inflation and sustained government borrowing.18 In December 2023, Moody’s downgraded Ethiopia’s foreign currency debt (foreign debt accounts for about half total debt), sending it into the “junk” category. This downgrade will increase the country’s cost of borrowing, further exacerbating the

current liquidity crunch, even as the country received a temporary debt relief from its bilateral lenders. This scenario, following an initial downgrade in September 2023, occurred as the country defaulted on a US$33 million coupon payment on its international government bond.19

Kenya

Kenya’s real GDP growth rate decelerated from 7.5% in 2021 to 4.9% in 2022 and is expected to further decrease to 4.5% in 2023 (figure 4).20 This deceleration has been largely on account of global supply chain shocks, predicated by the Russia-Ukraine conflict, a global economic slowdown, and domestic constraints.

The country’s GDP is forecast to accelerate to 5.2% in 2024 and average 5.8% between 2025 and 2028 (figure 4),21 anchored by improved agricultural production and related exports, as well as growth in the services sector.

For example, agriculture, which is pivotal to Kenya’s economy as it still employs about 40% of the population and contributes about one-fifth of the country’s GDP, is expected to grow moderately by 1.7% in 2023 and subsequently by 4.5% in 2024,22 as it recovers from a contraction that occurred in 2022 and benefits from favorable weather and sectoral reforms.

In the services sector, tourism recorded a 62% growth as tourist arrivals23 surged after the relaxation of COVID-19–induced restrictions in most countries and due to ongoing government efforts to promote tourism. In tandem, international earnings from tourism increased and are expected to more than double from 2022 levels to US$1.8 billion in 2024.24 The country is investing

in the development of transport and accommodation infrastructure and global marketing campaigns that are expected to boost the industry. Similarly, financial services have remained resilient and so there has been observable growth in the information technology sector as well—both linked also to the adoption of mobilemoney services.

Growth is supported by improvements in access to electricity, and a focus on electrification in rural areas, with more than 87% of electricity generation coming from renewable sources.25

However, slower global economic growth, heightened debt levels, increased tax rates, interest rates, and fuel prices, and inflation pose significant headwinds to overall economic recovery, consumer spending, and investment.

Inflation accelerated to 7.7% in 2022 from 6.1% in 2021 due to high commodity and food prices and poor local agricultural performance that year.26 Fuel inflation remains the main driver of headline inflation, owing to the gradual increase in pump prices. This is expected to drive inflation to an average of 7.8% in 2023, before decelerating to an average of 6% between 2024 and 2028 (figure 4),27 as global supply chain constraints resolve, and food inflation abates due to government’s agriculture reforms.

The country’s central bank continues to implement tighter monetary policy aimed at bringing inflation down to within its target band of 2.5% to 7.5%. In December 2023, the Central Bank of Kenya hiked its policy rate to a record 12.5% from 10.5% set in June 2023, necessitated primarily by downward pressure on the shilling.28

A stronger US dollar—thanks to the United States’ monetary policy–tightening stance—and increased demand for dollars from investors drove the shilling’s depreciation in 2023 (figure 5). The country’s central bank hopes that the higher lending rate will counter capital flight and help mitigate currency depreciation. As such, the shilling’s rate of depreciation should decline from 9.8% between 2023 and 2024, to 2.1% between 2027 and 2028,29 depending on the expected monetary policy–stance shift across major global economies, improved balance of payments, and reduced inflation.

Related to the above, inflows of foreign direct investment declined in 2022, driven by investor preference for more lucrative assets in developed markets. However, these inflows are expected to increase to US$611.5 million in 202430 due to improved investor confidence in the second half of 2023—anchored by recovering

foreign exchange reserves, ongoing fiscal consolidation, and continued capital injection from the International Monetary Fund, the World Bank, and the African Export-Import Bank. Further, the successful implementation of ongoing structural reforms will boost investor confidence, increasing foreign direct investment to a forecast annual average of US$724.1 million between 2025 and 2028.31

Kenya’s debt-to-GDP ratio dipped to 67.3% in 2022 from 68.1% in 2021 and is expected to further decline to 67.0% in 2023, as the government looks to reduce borrowing. Total debt stock, as in June 2023, stood at KES10.2 trillion, of which KES4.7 trillion was externally sourced, while KES5.5 trillion was raised locally.32 Total debt is expected to increase to KES9.6 trillion in 2023 due to anticipated government borrowing to cover budget deficits

in fiscals 2023 through 2024. The country has been implementing structural reforms, introducing new taxes, scrapping subsidy programs, and adjusting tax brackets, in a bid to raise internal revenues and reduce external debt burdens. These reforms saw lender confidence improve, and, as a result, the country unlocked funding worth US$0.9 billion from the International Monetary Fund in November 2023.33

In closing

Due to government efforts, both nations can be expected to not only grow and climb economic ladders, but also attract investors, which would in turn enable their governments to implement much needed systemic and structural reforms, especially in infrastructure and industries. While headwinds are still at work, our outlooks for 2024 for Ethiopia and Kenya remain cautiously optimistic.34

East

GLOBAL LEADERSHIP IN MINING: Dr. Manuel’s Sustainable Revolution

The global movement towards sustainability has extended into the mining sector, traditionally one of the most environmentally challenging industries. Leading this transformation is Dr. Benedito Paulo Manuel, Director General of Sociedade Mineira de Catoca , one of the world’s largest diamond companies. His vision centers on a responsible and innovative approach, aligning with global sustainability efforts. This analysis stems from a conversation between Dr. Manuel and our editorial team led by Mr. King Richard F.hcd. It explores Dr. Manuel’s transformative strategy, supported by insights from global leaders such as Christine Lagarde, President of the European Central Bank; Elon Musk, CEO of Tesla; António Guterres, UN Secretary-General; and João Lourenço, President of Angola.

Sustainability as a Core Principle

Dr. Benedito Paulo Manuel asserts that sustainability is essential for the future of the mining industry. “Our responsibility extends beyond profit margins; we must ensure that our actions today do not hinder tomorrow’s opportunities,” he emphasized in a recent interview. His approach reflects a global consensus that sustainability is now a fundamental principle guiding industrial activities. António Guterres, the UN Secretary-General, has been a strong advocate for sustainability. At the 2020 UNFCCC conference, Guterres stated, “Sustainable development is the roadmap to the future we want for all.” His vision aligns with Dr. Manuel’s, aiming to balance economic growth with environmental responsibility. Guterres has repeatedly emphasised that sustainability is crucial not only for the planet’s health but also for long-term business viability.

The shared perspective between Dr. Manuel and Guterres reflects a broader trend recognizing sustainability as both an ethical and strategic necessity. Guterres, in his 2021 UN General Assembly speech, warned, “The cost of inaction is far greater than the cost of taking action now.” This sentiment is echoed by Dr. Manuel, who advocates for the mining industry to lead by example in adopting sustainable practices.

Mining’s Role in Economic Growth

Mining has historically been a cornerstone of economic development, particularly in resource-rich regions like Africa. In Angola, the sector has significantly contributed to GDP and employment. Dr. Manuel recognizes mining’s dual role as both an economic driver and a potential source of social and environmental challenges. “Catoca Mining has not only been a key player in Angola’s diamond industry but also a catalyst for socio-economic development, providing jobs and fostering community growth,” he noted.

Dr. Benedito Paulo Manuel’s vision for sustainable mining represents a forwardthinking approach to an industry facing significant environmental and social challenges. By prioritizing sustainability, innovation, regulatory compliance, social responsibility, and global collaboration

João Lourenço, President of Angola, has also underscored the importance of mining in the country’s economic strategy. In his 2021 Angola Economic Forum address, Lourenço stated, “The mining industry is a critical pillar of our economy. It not only generates revenue but also creates jobs and drives infrastructure development.” His government focuses on using Angola’s natural resources to drive economic diversification while minimizing environmental impact—a challenge Dr. Manuel addresses with sustainable practices.

Innovation as the Key to Sustainable Mining

Innovation is central to Dr. Manuel’s approach, which he believes is essential for making mining more efficient and environmentally friendly. “Technology is our ally in reducing our environmental footprint,” Dr. Manuel often emphasizes. His commitment to integrating advanced technologies into Catoca Mining’s operations reflects a broader industry trend where innovation is key to achieving sustainability.

Elon Musk, CEO of Tesla, is a wellknown proponent of innovation as a driver of sustainability. At the 2020 World Economic Forum, Musk declared, “Innovation is essential to

solving the world’s most pressing issues. Without it, we stand little chance of addressing challenges like climate change.” Musk’s focus on technological advancement aligns with Dr. Manuel’s approach, as both recognize that adopting new technologies is crucial for reducing environmental impacts.

Musk has also highlighted the necessity of industries embracing disruption. “The world’s biggest problems won’t be solved by doing things the way they’ve always been done,” he remarked at Tesla’s 2021 shareholders meeting. Dr. Manuel’s efforts to incorporate advanced mining techniques and renewable energy demonstrate a similar commitment to driving industry change through innovation.

Regulatory Compliance and Ethical Standards

While innovation is vital, Dr. Manuel also stresses the importance of regulatory compliance and ethical standards. “Operating within the law is non-negotiable,” he has stated, emphasizing that adherence to environmental regulations is fundamental to responsible mining.

Christine Lagarde, President of the European Central Bank, has similarly emphasized the importance of regulation in

maintaining sustainability. Speaking at the 2019 ECB Forum on Central Banking, Lagarde noted, “Regulation is not about stifling innovation, but about ensuring that businesses operate within a framework that supports longterm stability and sustainability.” Her perspective aligns with Dr. Manuel’s approach, which balances the need for innovation with the importance of regulatory standards.

Lagarde has further stressed the role of financial institutions in promoting sustainability. At the 2021 Green Swan Conference, she argued that “Central banks must take climate change into account because it poses a threat to economic and financial stability.” This view resonates with Dr. Manuel’s belief that mining must operate within a regulatory framework that prioritizes sustainability.

Social Responsibility and Community Development

Social responsibility is another cornerstone of Dr. Manuel’s strategy. He believes mining operations should not only generate economic value but also positively impact local communities. “Our operations should uplift the communities we touch,” he often says. This commitment is evident in

Catoca Mining’s initiatives to create jobs, support local businesses, and invest in social infrastructure.

João Lourenço has similarly emphasized that mining’s benefits must extend beyond extraction sites. In his 2022 State of the Nation address, Lourenço stated, “The wealth generated by our natural resources must benefit all Angolans, not just a select few.” His policies ensure that mining revenues are reinvested in local communities, particularly in education, healthcare, and infrastructure.

Dr. Manuel’s focus on social responsibility aligns with Lourenço’s vision for Angola. Catoca Mining leads in implementing community development programs that enhance the quality of life for local residents and build a more sustainable and resilient economy.

Global Collaboration and Knowledge Sharing

Dr. Manuel advocates for global collaboration as essential to advancing sustainability in mining. “No single company or country can solve the challenges we face alone. We must work together to create a more sustainable future for all,” he has said.

Christine Lagarde has often

spoken about the importance of international cooperation in addressing global challenges. At the 2021 IMF and World Bank Annual Meetings, she remarked, “Global challenges require global solutions. We must work together to build a more sustainable and inclusive global economy.” Her call for cooperation resonates with Dr. Manuel’s vision of a globally responsible mining industry.

Elon Musk, too, has highlighted the importance of collaboration in achieving sustainability. At Tesla’s 2020 Battery Day, he noted, “We need to work together across industries and borders to develop the solutions that will drive us towards a more sustainable future.” This focus on collaboration aligns with Dr. Manuel’s belief that mining must engage with diverse stakeholders to achieve its sustainability goals.

Conclusion: A Vision for the Future

Dr. Benedito Paulo Manuel’s vision for sustainable mining represents a forward-thinking approach to an industry facing significant environmental and social challenges. By prioritizing sustainability, innovation, regulatory compliance, social responsibility, and global collaboration, Dr. Manuel is leading Catoca Mining towards a future where mining can be both profitable and responsible.

The insights of global leaders like António Guterres, Christine Lagarde, Elon Musk, and João Lourenço provide valuable context for understanding the broader implications of Dr. Manuel’s work. These leaders share a common belief that sustainability is crucial for long-term viability and planetary well-being. Their perspectives highlight the interconnectedness of economic, environmental, and

social factors in shaping mining’s future.

As the mining industry continues to evolve, African leaders like Dr. Manuel will be critical in driving the necessary changes. Through continued innovation and commitment to social responsibility, the industry can achieve a balance between economic growth and environmental sustainability, contributing to a brighter future for all.

Dr. Benedito Paulo Manuel’s vision for sustainable mining represents a forwardthinking approach to an industry facing significant environmental and social challenges. By prioritizing sustainability, innovation, regulatory compliance, social

responsibility, and global collaboration

The Power of the African Diaspora: African-American Businesses in Africa

By Blessing Ernest

Imagine a scenario where the African diaspora, leveraging its strategic position and expertise, drives Africa’s economic progress by investing in and championing Indigenous innovation. This shift could transform the continent’s economy, fostering a selfsustaining ecosystem of growth and opportunity.

Africa is constantly referred to as the “last frontier” for global economic growth, and the rationale is clear. The concept of the African diaspora maximising resources, skills, and networks to foster homegrown innovation is a hopeful vision that holds the potential to redefine the continent’s future.

The increasing presence and influence of African-American entrepreneurs, investors, and businesses in Africa is not merely a resurgence of historical connections between the African diaspora and the continent but a growing recognition of Africa’s potential as an investment market. Sectors such as technology, agriculture, renewable energy, and infrastructure are particularly ripe for investment.

The African diaspora, consisting of individuals of African origin residing outside the continent, is estimated to be around 140 million people. This diverse group spans continents, with significant populations in the United States,

Europe, the Caribbean, and the Middle East.

The economic impact of the African diaspora is multifaceted, encompassing remittances, investments, and consumer spending. The World Economic Forum reported that in 2021, the black population in the United States had an estimated spending power of $1.7 trillion. The growing middle class has led to a surge in consumer spending across various sectors, including retail, technology, and services. For instance, the retail market in Africa is expected to reach $1.4 trillion by 2025.

With a population of over 1.3 billion people and a rapidly expanding middle class, the continent presents immense opportunities for businesses across various sectors. The African Development Bank (AfDB) reports that Africa’s GDP is expected to grow by 3.4% in 2024 and 4.3% in 2025, driven by technological advancements and an increasing focus on industrialisation.

Since the end of the transatlantic slave trade, many African diasporans have sought to reconnect with their ancestral homeland. The Backto-Africa movement of the early 19th century, spearheaded by figures like Marcus Garvey, laid the groundwork for future migrations and investments.

Today, this connection is manifested in the form of business ventures and economic partnerships, driven by a new generation of entrepreneurs eager to contribute to Africa’s development while tapping into its vast opportunities.

The African Continental Free Trade Area (AfCFTA), which came into effect in 2021, has created a single market for goods and services, significantly enhancing intraAfrican trade and attracting foreign investment.

According to the United Nations Conference on Trade and Development (UNCTAD), foreign direct investment (FDI) flows to Africa totalled $83 billion in 2021. A significant portion of this investment comes from the African diaspora, including African-American entrepreneurs.

Key sectors attracting AfricanAmerican businesses include:

Remittances:

Remittances from the African diaspora have been a lifeline in the economies of many African countries. According to the World Bank, remittances to Sub-Saharan Africa reached $48 billion in 2019. Nigeria, Ghana, and Kenya are among the top recipients of these funds. Remittances often surpass official development assistance and foreign direct investment,

highlighting their importance as a financial lifeline for millions of families.

For instance, in Nigeria, remittances amounted to $23.8 billion in 2019, representing approximately 5.1% of the country’s GDP. These funds are used for various purposes, including education, healthcare, housing, and entrepreneurial activities, thereby stimulating local economies and improving living standards.

Manufacturing and Industrialisation: The drive towards industrialisation in Africa presents opportunities in manufacturing and production. Countries like Ethiopia and Rwanda are making strides in developing their manufacturing sectors, attracting foreign investment, and creating jobs. Black-American entrepreneurs are establishing manufacturing plants, producing goods ranging from textiles to consumer electronics. This not only fosters economic growth but also contributes to skill development and technology transfer.

Technology and Innovation:

The tech sector in Africa is booming, with cities like Lagos, Nairobi, and Cape Town becoming hubs for startups and innovation. AfricanAmerican tech entrepreneurs are investing in fintech, healthtech, and edtech, leveraging their expertise and resources to foster growth.

The tech sector in Kenya, often referred to as “Silicon Savannah,” has benefited immensely from investments by African-American entrepreneurs. Tech companies like Andela, co-founded by NigerianAmerican entrepreneur Iyinoluwa Aboyeji, have trained thousands of African software developers, providing them with employment opportunities both locally and

internationally.

The adoption of mobile money has revolutionised financial transactions in Africa. Mobile money services have provided millions of unbanked individuals with access to financial services. As of 2021, there were over 500 million registered mobile money accounts in Sub-Saharan Africa, facilitating transactions worth billions of dollars annually.

Agriculture and Agribusiness:

Agriculture remains a cornerstone of Africa’s economy. In the agricultural sector, AfricanAmerican businesses have introduced innovative farming techniques and sustainable practices that have increased productivity and improved food security.

Investments in renewable energy projects have also played a crucial role in addressing Africa’s energy deficit, providing reliable and clean energy to millions of households and businesses.

Real Estate and Infrastructure:

Rapid urbanisation and population growth have fuelled demand for housing and infrastructure. African-American developers are participating in large-scale real estate projects, contributing to urban development and affordable housing initiatives.

Entertainment and Media:

Diasporans are tapping into Africa’s creative economy. Africa’s dynamic entertainment industry offers opportunities in film, music, and media. African-American artists, directors, and producers

are collaborating with local talent, creating a cross-continental cultural exchange that is reshaping the industry.

Nollywood, Nigeria’s film industry, has garnered global recognition, and collaborations with AfricanAmerican filmmakers are on the rise. Fashion brands are drawing inspiration from African designs, creating a fusion of traditional and contemporary styles that appeal to a global audience.

Additionally, African-American investments are helping to change the narrative about Africa. Showcasing successful business ventures and highlighting the continent’s potential, these investments are attracting more interest from the global business community. This positive portrayal is crucial in dispelling outdated stereotypes and fostering a more accurate and nuanced understanding of Africa’s economy.

The impact of African American investments on local economies in Africa is profound. These investments have led to job creation, skills transfer, and the development of local industries. There is no denying that there has been a renaissance of sorts, but with so many African Americans seeking to explore opportunities on the continent, this latent potential cannot be fully realised if efforts are not made to strengthen largely untapped sectors for investments.

As diasporan entrepreneurs and investors continue to recognize and seize the opportunities in Africa, their contributions will play a crucial role in shaping the continent’s economic future. The partnership between African-American businesses and Africa has the potential to unlock unprecedented growth and development.

Bridging Continents: AU Mission in Washington DC

By Rowland-George Omeni

Partnerships and collaborations across the political hemisphere are among the ways countries and international organizations solidify their influence and protect their interests on the global stage. The African Union (AU) is no exception. One of its strategic partnerships is the AU mission in Washington DC.

The AU mission in Washington DC is an institution born from a strategic partnership between the AU and the United States Government. Its purpose is to promote the growth and economic development of Africa through citizen inclusion and increased cooperation among African states.

Established to develop constructive and productive relationships, the AU mission in Washington engages with the

United States Government, the Bretton Woods Institutions, non-governmental organizations, and academic institutions focused on African issues and policy. The mission also maintains and consolidates the relationship between the AU and the U.S. Government.

Political relations between the AU and the U.S. began in 2006 when the United States Ambassador to Ethiopia was appointed to the AU, making the U.S. the first non-African country to establish a diplomatic mission to the African Union. Since then, the AU mission has played a key role in this relationship.

The AU mission has facilitated dialogue between the AU and various U.S. government agencies, including the State Department, Congress, and other

Partnerships and collaborations across the political hemisphere are among the ways countries and international organizations solidify their influence and protect their interests on the global stage

federal institutions. The first high-level bilateral meeting between the U.S. and AU was held in 2010, aiming to deepen their relationship and engagement. The mission has advocated for policies supporting Africa’s development goals, such as economic growth, peace and security, and human rights.

The mission has been pivotal in promoting trade and investment between Africa and the U.S. It has influenced initiatives like the African Growth and Opportunity Act (AGOA), which provides African countries with preferential trade access to the U.S. Additionally, the mission has encouraged greater engagement between AU regional groups, accrediting ambassadors from the Economic Community of West African States, the Southern African Development Community, and others to boost Africa’s economic development and create opportunities for American businesses.

Through the AU mission, discussions and engagements on peace and security issues have been facilitated. The United States, a significant security contributor in Africa, has played a crucial role in the continent’s security landscape, aiding peace and conflict resolution in Somalia, Namibia, and Ethiopia-Eritrea. The U.S. spends roughly $250 to $300 million on Africa’s security infrastructure annually.

The AU mission in Washington is instrumental in advocating for and addressing the continent’s health and social infrastructure needs. It promotes initiatives related to public health, combating pandemics, and improving healthcare infrastructure. The mission also supports the provision of social infrastructure, such as schools and trade areas, and efforts to address climate change impacts on Africa.

Despite its successes, the AU mission in Washington DC faces several challenges that hinder its effectiveness. Political dynamics and policy implementation

across the continent can be significant problems, limiting the resources and funding available to the mission. These constraints can prevent the mission from securing adequate support and investment for crucial activities that impact the continent.

The AU mission in Washington DC is critical in advancing Africa’s global agenda. This is evident in its commitment to supporting the AU in achieving its strategic goals under Agenda 2063. Agenda 2063 is a strategic framework for Africa to deliver inclusive and sustainable development through the pan-African drive for unity, self-determination, freedom, progress, and collective prosperity. The mission will be crucial in fostering stronger partnerships to promote collaborative solutions for Africa’s priorities and challenges.

As the world navigates politically sensitive times and global issues require concerted efforts and cross-border cooperation, it is essential that the AU mission’s mandate is clear. More efforts are needed to enhance diplomatic relations, advocate for policy changes, and foster mutual understanding among stakeholders and members of the international community.

The AU mission in Washington is instrumental in advocating for and addressing the continent’s health and social infrastructure needs. It promotes initiatives related to public

health,

combating pandemics, and improving healthcare infrastructure

EDITOR’S Pick

King Richard Igimoh f.hd Group editor, African Leadership Magazine

Key Voices Shaping Africa’s Business and Economic Landscape

As Africa confidently enters the 21st century, a dynamic group of business leaders stands at the forefront, shaping the continent’s future in profound ways. These leaders go beyond accumulating wealth; they are the architects of sustainable growth, the champions of innovation, and the pioneers of socio-economic transformation. In this piece, I explore the bold visions driving these trailblazers, drawing on insights from global business figures and economists who offer their unique perspectives on Africa’s evolving business landscape. Together, these voices illustrate continent rich with potential, guided by leaders committed to creating an enduring legacy.

The Opportunities

Strive Masiyiwa, founder of Econet Wireless

Africa is often described as the “last frontier” of global economic development. With its vast natural resources, burgeoning young population, and rapid urbanisation, Africa presents unparalleled growth opportunities. However, the continent’s true potential lies in the hands of its business leaders, who can drive it towards prosperity and equality.

“Posterity will judge us by the difference we make in the everyday

lives of ordinary Africans,” says Strive Masiyiwa, founder of Econet Wireless. His words highlight the importance of impactful leadership that goes beyond personal gain to elevate communities and nations.

Investing in Education and Human Capital

A cornerstone of Africa’s future success is investment in education and human capital. The continent’s young population is its greatest asset, and nurturing this potential

is critical. Aliko Dangote, Africa’s richest man, emphasises, “Education is the passport to the future, for tomorrow belongs to those who prepare for it today.” By prioritising education, African business leaders can cultivate a skilled workforce capable of driving innovation and economic growth.

Fostering Innovation and Technology

Technological advancement is a key driver of economic development, and Africa is no exception. Mo Ibrahim, founder of

Aliko Dangote, Africa’s richest man

Mo Ibrahim, founder of Celtel

Celtel, states, “Africa’s future is in its innovation and technology. We must foster an environment where young entrepreneurs can thrive.” The rapid adoption of mobile technology across the continent has already demonstrated Africa’s capacity for tech-driven transformation. Supporting tech startups and investing in infrastructure will ensure Africa remains at the forefront of global innovation.

Building Sustainable Economies

Ngozi Okonjo-Iweala, DirectorGeneral of the World Trade Organization

Sustainability is no longer a choice but a necessity. African business leaders have a responsibility to promote environmentally and economically sustainable practices. Ngozi Okonjo-Iweala, Director-General of the World Trade Organisation, notes, “Africa must leverage its resources wisely to build economies that are not only prosperous but also sustainable.” Embracing renewable energy, sustainable agriculture, and green technologies can help Africa build resilient economies that can withstand global challenges.

Enhancing Regional Integration

Regional integration is crucial for unlocking Africa’s full potential. By breaking down trade barriers and fostering economic cooperation, African countries can create a unified market that attracts investment and boosts intra-African trade. Paul Kagame, President of Rwanda, asserts, “The future of Africa is in its unity. Together, we can achieve greater economic prosperity and stability.” Initiatives like the African Continental Free Trade Area (AfCFTA) can drive the continent towards greater economic cohesion.

Empowering Women in Business

Adesina,

Gender equality is essential for sustainable development. African business leaders must champion the inclusion of women in all economic sectors. Akinwumi

Adesina, President of the African Development Bank, states, “Empowering women in business is not just the right thing to do; it is the smart thing to do. When women thrive, economies thrive.” By supporting female entrepreneurs and ensuring equal opportunities, African leaders can unlock the full potential of their economies.

Promoting Good Governance and Transparency

Promoting good governance in Africa is essential for cultivating a thriving business landscape. President Nana Akufo-Addo of Ghana emphasises that “good governance means accountability, transparency, and the rule of law. We must ensure our institutions work for the benefit of all citizens, not just a select few.” By upholding these principles, we create a fair and efficient environment that attracts investment, drives innovation, and promotes sustainable economic growth. Trust in public institutions and responsible resource management lay the foundation for a robust and competitive business climate across the continent.

Paul Kagame, President of Rwanda

Akinwumi

President of the African Development Bank

Nana Akufo-Addo, President of Ghana

Driving Inclusive Economic Growth

Elumelu, Founder

Inclusive economic growth ensures that the benefits of development are shared by all. African business leaders must focus on reducing inequality and promoting social inclusion. Tony Elumelu, founder of the Tony Elumelu Foundation, emphasises, “Africa’s prosperity depends on creating opportunities for all its people, not just a privileged few.” By investing in underserved communities and supporting small and medium-sized enterprises (SMEs), leaders can drive inclusive growth that lifts everyone.

Health as the Bedrock of Africa’s Economic Renaissance:

Dr. Tedros Adhanom Ghebreyesus, Director-General of the World Health Organisation

Africa stands on the brink of an economic renaissance, fuelled by the collective efforts of its leaders and visionaries. Dr. Tedros Adhanom

Ghebreyesus, Director-General of the World Health Organisation, highlights the indispensable role of health in this transformative journey, stating, “Investing in healthcare infrastructure and ensuring universal health coverage are fundamental to driving sustainable economic growth in Africa.” He emphasises that a healthy population is inherently more productive, and by prioritising health, Africa can lay a solid foundation for a thriving business environment. This approach underscores the interconnection between health and economic prosperity, positioning healthcare as a cornerstone of Africa’s future growth.

Unlocking Africa’s Potential

Cyril Ramaphosa, President of South Africa, underscores the vital role of regional cooperation in advancing Africa’s economic and business landscape. He emphasises that “Africa’s economic future lies in regional integration and collaboration,” pointing to the power of collective efforts in driving the continent forward. By focussing on strengthening infrastructure, embracing digital innovation, and fostering intra-African trade, Ramaphosa envisions unlocking the immense potential that Africa holds. This collaborative approach is seen as key to creating opportunities that benefit all Africans, paving the way

Africa’s prosperity depends on creating opportunities for all its people, not just a privileged few. By investing in underserved communities and supporting small and medium-sized enterprises (SMEs), leaders can drive inclusive growth that lifts everyone

Tony

of the Tony Elumelu Foundation

Cyril Ramaphosa, President of South Africa

for sustainable growth and shared prosperity across the continent.

Empowering Africa’s Future

Arrie Rautenbach, CEO of Absa

Advancing Africa’s economic landscape hinges on sustainability, collaboration, and impactful storytelling, as emphasised by Arrie Rautenbach, CEO of Absa, with his quote, “Empowering Africa’s tomorrow, together, one story at a time.” This reflects Absa’s commitment to driving growth by fostering partnerships and promoting inclusive narratives that inspire collective progress. Central to this vision is a just energy transition that balances social inclusion with environmental protection, ensuring sustainable and equitable economic development. By integrating these principles into its operations, Absa is leading the way in creating a resilient and prosperous future for Africa.

Is AfCFTA a game changer?

Wamkele Mene, SecretaryGeneral of AfCFTA

Wamkele Mene, Secretary-General of the African Continental Free Trade Area (AfCFTA), champions the transformative potential of the AfCFTA in reshaping Africa’s economic and business landscape. He asserts that “The AfCFTA is a game-changer for Africa,” emphasising its pivotal role in creating a single market for goods and services across the continent. By unifying these markets, Mene envisions a future where Africa drives industrialisation, attracts significant investment, and boosts the global competitiveness of African businesses. This integration is poised to unlock new opportunities, fostering a more robust and interconnected African economy that can thrive on the world stage.

Leveraging Africa’s Unique Assets for Economic Development

Sim Tshabalala, CEO of Standard Bank

At the World Economic Forum’s 54th annual winter meeting in Davos, Sim Tshabalala, CEO of Standard Bank, highlighted the pivotal role of trust in fostering Africa’s economic development. He stated, “Trust is the foundation of economic activity, and for business, government, and society to flourish, institutions must adhere to their commitments.” Tshabalala emphasised Africa’s infrastructure investment potential, valued at $3.4 trillion, and urged stakeholders

to seize these opportunities. He also pointed to the continent’s demographic advantage, driven by a youthful, educated population, and the success of innovative solutions like Mpesa, remarking, “Africa’s dynamic youth and cutting-edge solutions are key drivers of progress.” Finally, he called for strategic optimism and deliberate decision-making to fully unlock the continent’s economic potential, reinforcing Standard Bank’s dedication with the statement, “Africa is our home; we are committed to driving her growth.”

The legacy African business leaders can leave is a tapestry woven with threads of innovation, education, sustainability, and inclusivity. By investing in human capital, fostering technological advancement, promoting good governance, and empowering all segments of society, these leaders can transform Africa into a beacon of prosperity and progress. The insights from global business leaders and economists highlight the path forward, but it is the vision and determination of Africa’s own leaders that will ultimately shape the continent’s destiny.

As the world watches, African business leaders have the opportunity—and the responsibility—to leave a legacy that will be remembered for generations. Their actions today will determine the future of a continent brimming with potential and promise. The time to act is now, for the future of Africa lies in the hands of those who dare to dream and have the courage to lead.

Green Ports and Trade Connectivity: A Conversation with Akif Ali Khamis, Zanzibar Ports Corporation (ZPC)

Mr. Akif Ali Khamis, Managing Director of the Zanzibar Ports Corporation (ZPC), discusses the corporation’s transformative infrastructure achievements and strategic initiatives aimed at enhancing trade and connectivity within East Africa.

Under Mr. Khamis’s leadership, ZPC has achieved significant milestones in infrastructure development. Key projects include:

• Replacing a deteriorated fuel depot, thereby reducing handling costs by over 50%.

In terms of economic impact, Mr. Khamis anticipates significant growth in cargo and passenger traffic, which will attract foreign direct investment and foster a robust manufacturing base. Zanzibar’s strategic positioning aims to reduce dependency on costly air freight, thereby enhancing regional economic integration.

Mr. Khamis emphasizes ZPC’s commitment to sustainability, aiming to establish Zanzibar as East Africa’s first green port. Initiatives include integrating natural barriers such as mangroves and adopting solar energy to reduce environmental impact

• Introducing a new barge system that enhances trade and connectivity between Zanzibar’s islands, facilitating smoother movement of goods and passengers.

The nearing completion of the Northern Port of Shumba promises to bolster trade routes with mainland Tanzania and Mombasa, Kenya. Additionally, a feasibility study for a new port in Pemba aligns with the expansion of Zanzibar’s passenger terminal, fostering island-mainland connectivity.

Mr. Khamis emphasizes ZPC’s commitment to sustainability, aiming to establish Zanzibar as East Africa’s first green port. Initiatives include integrating natural barriers such as mangroves and adopting solar energy to reduce environmental impact.

Reflecting on challenges, Mr. Khamis highlights efforts to improve operational efficiency and customer experience through modernized facilities and streamlined processes. Investments in technology and public amenities are poised to enhance port productivity and service delivery.

Looking forward, Mr. Khamis envisions ZPC playing a pivotal role in regional integration, leveraging expanded port capacities to facilitate seamless trade across East Africa.

The development of Manga Pani as a hub port underscores Zanzibar’s strategic importance in international commerce, complementing efforts to boost tourism and economic growth.

Mr. Khamis concludes by emphasizing ZPC’s proactive approach to infrastructure development, forging partnerships, and adhering to international standards to ensure sustainable and inclusive growth for Zanzibar.