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New Small and Medium sized Enterprise (SME) Impact Report Advocates Enhanced Support for Agribusinesses to Navigate the “Triple Crisis”

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Triple Crisis

The report recommends more focused, tailored, and concerted investment and support to improve quality and quantity of produce at the farmer level

NAIROBI, Kenya, March 7, 2024/APO Group/ — 

AGRA (https://AGRA.org) has today released the 3rd edition of the ‘African Agribusiness Outlook Report’ which sheds light on the impact of the “Triple Crisis” – Covid-19 pandemic, climate change, and the Russia-Ukraine conflict – on small and medium-sized agribusinesses in Nigeria, Zambia, and Tanzania.

Download Document 1: https://apo-opa.co/3wFHDt7
Download Document 2: https://apo-opa.co/49GruT3

The report, which is jointly produced by AGRA and IPSOS, surveyed 1,623 small and agribusinesses in the rice, maize and tomato value chains in Nigeria, Zambia and Tanzania, and the soybean, maize and tomato value chains in Zambia.

The study examined the impact of various measures taken to support SMEs’ performance during the triple crisis, revealing that a substantial proportion of agribusinesses have experienced severe declines in revenue during this period, with only some managing to recover.

The report states: “Agribusinesses in agricultural value chains in Nigeria, Tanzania and Zambia, have been hard hit by the “triple crisis” of Covid-19, climate change and the Russia-Ukraine conflict. Although the larger businesses were hardest hit in Nigeria and Zambia in 2020, these businesses appear to have been better able to recover as at 2023.

While supply, demand, and operational costs were significant challenges during the peak of the Covid -19 pandemic, the report reveals that businesses continue to grapple with soaring operational expenses in the wake of climate-related impacts and the ongoing conflict in Ukraine. The report discloses that 58% of SMEs surveyed have experienced substantial revenue declines of 20% percent or more throughout the “triple crisis” period.

Furthermore, the report reveals some of the strategies employed by businesses to stay afloat during these challenging times including injecting additional capital, cost reduction measures, and streamlining their product lines.

Dr. Agnes Kalibata, President of AGRA, noted that Agribusinesses have exhibited remarkable adaptability, innovation, and determination, on the one hand, but continue to struggle amidst business disruptions through lockdowns, supply chain disruptions, productivity decreases and reduced consumer demand.

Dr. Kalibata remarked, “We are all aware of the challenges they are facing, however not much has been done to look at the cumulative impact of the triple crisis and the specifics of severity that the agribusinesses are grappling with. As we reflect on the impact of the triple crisis on Agribusinesses in Africa, we must also recognize the incredible potential these enterprises possess.”

She noted that as drivers of farmer resilience, job creation, economic development, and poverty alleviation, African Agribusinesses hold the promise of fostering greater social inclusion and reducing inequality across the continent.

“There is an urgent need for measures to effectively address and alleviate the impacts of these crisis on the sector that serves as the primary employer, engaging over 70 percent of Africa’s population in economic activities and contributing more than 30 percent to the continent’s economies,” Dr Kalibata emphasized.

As we reflect on the impact of the triple crisis on Agribusinesses in Africa, we must also recognize the incredible potential these enterprises possess

The report calls for more collaboration between policymakers, financial institutions, and development organizations to provide supportive ecosystems that empower the Agribusinesses and respond to their three top asks: access to affordable finance, fostering a business-enabling environment, particularly with stable and predictable policies and supporting an effective regional trade system.

The report recommends more focused, tailored, and concerted investment and support to improve quality and quantity of produce at the farmer level.

This report recommends the adoption of policies that encourage the development of financial products specifically tailored to the agricultural sector and improving financial policies to enhance access to affordable credit.

To optimize the efficiency of SMEs and reduce transaction costs, there is a call for improved market information. Enhancing information services related to supply and demand is vital, as it can facilitate better decision-making for agribusinesses. A well-informed market, it notes will lead to improved supply efficiency. The report calls upon governments to reduce fuel costs, mitigate currency fluctuations, ensure timely fertilizer subsidies, streamline business registration processes, and efficiently manage storage facilities.

Summary of key findings

Extent of Revenue Drops

  • In Nigeria, 51 percent of SMEs reported a decline in revenue since the 2019 Covid-19 outbreak.
  • In Tanzania, 44 percent of SMEs experienced a drop in revenue.
  • In Zambia, 21 percent of SMEs reported a decline in their revenue.

impact of the crisis on different sectors and business sizes

  • In Nigeria, maize was the hardest-hit crop in 2020. Medium-sized businesses were affected the most but recovered faster than smaller businesses.
  • In Tanzania, maize was also the hardest-hit crop and struggled to recover compared to other value chains.
  • In Zambia, tomatoes and soybeans were significantly impacted. Tomatoes recovered faster, and medium-sized businesses were hit hardest by Covid-19 but also recovered more quickly.

Impact of climate change

  • Unreliable rainfall is perceived as a very big problem in Zambia (54 percent) and Tanzania (62 percent) but a lower concern in Nigeria (32 percent).

Causes of Revenue Decline

  • In Nigeria, the high cost of transport was identified as a leading cause, accounting for 85 percent of the challenges faced. 
  • In Tanzania, low-profit margins were a significant issue, with 83 percent of SMEs affected.
  • In Zambia, low-profit margins also posed a challenge, impacting 77 percent of businesses.

strategies to mitigate the revenue decline and financial challenges 

• Capital injection: SMEs in Nigeria injected more capital into their businesses (42 percent), followed by Zambia (32 percent) and Tanzania (24 percent). 

•  Reduced staff costs: To cut expenses, SMEs in Zambia reduced staff costs (24 percent), followed by Tanzania (33 percent) and Nigeria (36 percent).

• Loan uptake: While loan uptake grew over the past few years, only a minority of SMEs took out loans to cope with the crisis, citing perceived affordability as a barrier. Currently, the highest loan uptake by businesses is Zambia (15 per cent) followed by Nigeria (12 percent) and Tanzania (10 percent).

The report, ‘From Crisis to Opportunity: The 2023 Africa Agribusiness Outlookis attached on the email, alongside a fact sheet containing key figures from the report. .

Distributed by APO Group on behalf of AGRA.

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RIOT Network and MediaTek collaboration expands digital access in South Africa through innovative, community-driven Wi-Fi solutions

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MediaTek

RIOT Network aims to make fast, unlimited Wi-Fi services accessible for people in townships and underserved communities

JOHANNESBURG, South Africa, November 22, 2024/APO Group/ — 

MediaTek (www.MediaTek.com), a global fabless semiconductor company powering nearly 2 billion connected devices a year, and RIOT Network (https://RIOT.Network), a community mobile broadband provider in South Africa, have announced the successful integration of Mediatek’s Filogic 830 (https://apo-opa.co/3CIbkNl) chipset into RIOT’s second-generation CROWDNet Core Nodes.

The successful deployment of the CROWDNet nodes has enabled RIOT Network to achieve its aim of offering uncapped internet at an affordable price of R99 per month, and to do so profitably. To date, RIOT Network, in partnership with Sonke Telecommunications, has leveraged the nodes to connect more than 800 households and 5000 users in Olievenhoutbosch to uncapped Wi-Fi services.

RIOT Network aims to make fast, unlimited Wi-Fi services accessible for people in townships and underserved communities. Its CROWDNet Nodes, enable an innovative model for deploying user-operated network infrastructure. Community members serve as operators of some of the core network devices to earn a share of the fee from neighbours who use the service.

With each new connection, RIOT Network is highlighting the role of innovative fixed-wireless solutions in extending broadband access and improving digital inclusivity

CROWDNet powered by MediaTek Filogic 830 brings affordable, last-kilometre broadband to communities where it is not commercially viable to deploy towers or fibre. The MediaTek Filogic 830 is a high-performance SoC for routers, repeaters, access points and mesh networking devices. The SoC enables device makers to build-in powerful applications based on an energy-efficient, Wi-Fi 6-ready platform.

“The Mediatek’s Filogic 830 chipset delivers a unique balance of high performance and cost-efficiency, allowing us to keep operational costs low while maximising network reliability and speed,” said Jarryd Bekker, CEO at RIOT Network. “This combination of affordability and sustainable business growth is pivotal to our vision of expanding digital access in underserved communities. Our work in Olievenhoutbosch near Centurion demonstrates the power of reliable, affordable internet, creating new opportunities for economic and social engagement.”

“With each new connection, RIOT Network is highlighting the role of innovative fixed-wireless solutions in extending broadband access and improving digital inclusivity,” said Rami Osman (https://apo-opa.co/4ghZBUn), Director for Business Development, MediaTek Middle East and Africa. “We look forward to supporting RIOT in building a future where high-quality internet is accessible and impactful for all.”

Distributed by APO Group on behalf of MediaTek Inc

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African Energy Chamber (AEC) Endorses Inaugural Congo Energy & Investment Forum, Catalyzing Growth in the Republic of Congo’s Energy Sector

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African Energy Chamber

The African Energy Chamber proudly supports the inaugural Congo Energy & Investment Forum, scheduled for March 25-26, 2025 in Brazzaville

BRAZZAVILLE, Republic of the Congo, November 21, 2024/APO Group/ — 

The African Energy Chamber (AEC), as the voice of Africa’s energy sector, proudly supports the inaugural Congo Energy & Investment Forum (CEIF), set to take place in Brazzaville on March 25-26, 2025. Unveiled during African Energy Week: Invest in African Energies in Cape Town by the Republic of Congo’s Ministry of Hydrocarbons, this milestone event signals the nation’s commitment to strengthening its role as a key energy player on the continent, while showcasing a range of investment opportunities. 

Under the leadership of Hydrocarbons Minister Bruno Jean-Richard Itoua, the Republic of Congo has emerged as sub-Saharan Africa’s fourth-largest oil producer, with anticipated production of 280,000 barrels per day (BPD) by the end of 2024 and ambitions to reach 500,000 BPD within three to five years. Building on this momentum, the CEIF will highlight innovative projects and foster strategic partnerships that enhance investment, drive economic growth and position the Congo as a leader in Africa’s energy expansion.

Meanwhile, Société Nationale des Pétroles du Congo (SNPC), led by CEO Maixent Raoul Ominga, is spearheading the Congo’s energy growth. SNPC holds a majority stake in the Mengo Kundji Bindi II permit, with 2.5 billion barrels of estimated oil potential. The company is developing the site through 13 wells, 3D seismic data acquisition, and the construction of six production platforms. 

We are honored to secure the Chamber’s endorsement for this pivotal forum

With the Chamber’s official support, the CEIF is set to attract government leaders, C-suite executives from major IOCs and energy experts, who will offer critical insights into Congo’s oil, gas and energy sector developments. The country is overhauling its gas sector to unlock 10 trillion cubic feet of resources through a comprehensive Gas Master Plan and new Gas Code that introduces favorable fiscal terms and enables small-scale project development, as well as large-scale, integrated gas megaprojects like Eni’s Congo LNG and Wing Wah’s Bango Kayo. 

“The Congo Energy & Investment Forum marks a major milestone for the country, amplifying its strategic energy initiatives and showing industry stakeholders that it is serious about advancing its energy sector. We look forward to supporting this forum, which promises to connect investors, drive impactful partnerships and elevate the Congo’s position within Africa’s energy sector,” says NJ Ayuk, Executive Chairman of the AEC.  

“We are honored to secure the Chamber’s endorsement for this pivotal forum, which, through its vast network and influence, will help attract key stakeholders and decision-makers to the event. Together, we aim to highlight the immense potential of the Congo’s energy sector, foster strategic partnerships and drive transformative investments that contribute to sustainable growth across the industry,” notes James Chester, CEO of Energy Capital & Power, organizers of the CEIF.   

This premier forum provides a unique platform for connecting local and international investors with high-impact opportunities across a diversified range of energy projects, paving the way for collaborations that drive growth and transformation. The AEC’s endorsement underscores its commitment to fostering strategic partnerships, sustainable investment and regional cooperation, aligning with its broader mission to make energy poverty history across the continent by 2030.  

As the energy industry continues to serve as a critical pillar of the Congolese economy and a catalyst for sustainable development, the AEC remains dedicated to supporting initiatives like CEIF that foster progress, investment and partnerships across the African energy landscape. 

For more information, please visit www.CongoEnergyInvestment.com

Distributed by APO Group on behalf of Energy Capital & Power.

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Any Successful African Energy Policy at Conference of the Parties (COP) or Anywhere Must Have Oil and Gas at its Core (By NJ Ayuk)

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Conference of the Parties

Africa will need global financial systems, including multilateral development banks, to play a significant role in financing our energy growth which must include fossil fuels

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JOHANNESBURG, South Africa, November 21, 2024/APO Group/ — 

By NJ Ayuk, Executive Chairman of the African Energy Chamber (www.EnergyChamber.org).

I believe the ultimate responsibility for getting there is ours and no one else’s. Yes, we need partners to walk alongside us, but the success of our energy movement rests on African shoulders.

To begin with, I would love to see African energy stakeholders speaking in a unified voice about African energy industry goals.

This will be particularly important in COP29 in Baku. It is imperative that African leaders present a unified voice and strategy for African energy transitions. We must make Africa’s unique needs and circumstances clear and explain the critical role that oil and gas will play in helping Africa achieve net-zero emissions in coming decades.

I would encourage African leaders to talk about the need for financing, as well, to make it possible for us to adopt renewable energy sources and set up the necessary infrastructure. Africa will need global financial systems, including multilateral development banks, to play a significant role in financing our energy growth which must include fossil fuels.

Africa’s governments have a role to play in a successful African energy movement as well.

Because Africa’s energy industry still can benefit greatly from the presence of international oil companies, our government leaders need to approve contracts with oil and gas companies promptly instead of allowing red tape to delay projects after discoveries are made.

And, they need to offer the kinds of fiscal policies that allow oil companies to operate profitably in Africa. In turn, that will help those companies generate revenue, create jobs and business opportunities, and foster capacity building.

I also would encourage governments and civil societies to reward companies that exemplify positive behavior. Let’s incentivize the kind of activities we want, from creating good jobs and training opportunities to sharing knowledge.

I would love to see African energy stakeholders speaking in a unified voice about African energy industry goals

And there’s more.

We in Africa must work together to create more opportunities for women to build careers in the oil and gas industry at all levels. Our energy industry can’t reach its potential to do good when half of our population is left out. Our progress on behalf of women has not been great—We need to do better, and we need to act quickly.

How the world can support

Now, I mean it when I say Africans are responsible for building the future they want. But, I would love to see Western governments, businesses, financial institutions, and organizations support our efforts.

How? They can avoid demonizing the oil and gas industry. We see it constantly, in the media, in policy and investment decisions, and in calls for Africa to leave our fossil fuels in the ground. Actions like these, even as Western leaders have pushed OPEC to produce oil, are not fair, and they’re not helpful.

I also would respectfully ask financial institutions to resume financing for African oil and gas projects and stop attempting to block projects like the East African Crude Oil pipeline or Mozambique’s LNG projects.

Please understand that with the war in Ukraine, the energy crisis in Europe, and the energy poverty facing our continent, our countries, like many others, are simply choosing the paths they believe are most likely to help their people.

You know, people for years have accused me of loving oil and gas companies more than Africa. The opposite is true. In my frequent travels around the continent, I’ve observed far too many young people with little in the way of opportunities.

I know our young people have aspirations for a better future. I know they have big dreams. And, I know that future is nearly within their grasp.

A thriving, strategically managed energy industry can make it possible for many of these young people, whether it leads to good jobs or it fosters the kind of economic growth that creates jobs in other fields. Even if we only get the lights on in their communities, we’ll be giving our young people hope and improving their chances of realizing their goals.

This is what drives me, the idea that with our ongoing efforts and determination, our young people can realize meaningful opportunities. I encourage each of you to work with us at the African Energy Chamber, in a spirit of cooperation and mutual respect. Together, we can build the kind of African energy movement that our continent, our communities, and our young people need and deserve.

Distributed by APO Group on behalf of African Energy Chamber.

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