AfDB, AIMS to transform industry-led research in Africa

The African Development Bank and the African Institute of Mathematics and Sciences (AIMS) have initiated a landmark relationship aimed at building an industry-led research institution in the league of the Massachusetts Institute of Technology.

Former President of Nigeria, Olusegun Obasanjo, led a delegation of the High-Level Advisory Council of AIMS to a meeting with the African Development Bank in Abidjan, where a 10-year partnership proposal was made to build mathematical and scientific capacity in Africa, strengthen industry linkages, and create a competitive industrial and innovative space.

Obasanjo, the Patron of the High-Level Advisory Council for AIMS’ Next Einstein Initiative, with former Ghanaian President John Kufuor as Vice-Chair, described the visit as a huge opportunity for the Bank and AIMS to forge an extraordinary partnership to support African countries in the expansion of mathematical science education, training and research. He commended Bank President Akinwumi Adesina for championing Africa’s development and assured that the proposed partnership is critical for the continent’s future. “If we are going to make substantial progress in industrialization within the next decade, be truly visible in the rapidly unfolding fourth industrial revolution and rise effectively to the challenge of creating decent and sustainable jobs for our youths, the continent must produce well motivated and well trained young innovators.”

Adesina stressed the need for Africa to develop with pride and pledged the Bank’s commitment to build a partnership with AIMS that would allow the continent to compete with the rest of the world. “We must recognize that the world is moving fast. Consequently, how can Africa position itself in a rapidly changing world so that it doesn’t become disadvantaged? We are a knowledge-driven Bank and think our partnership will help us build quantum knowledge for growth. We are excited about the focus on young people. We also like the regional integration dimension of the work that AIMS does.”

The Bank President promised to convene a meeting of donors to discuss AIMS’ funding request, but stressed the need for greater participation by the private sector, particularly key industries that benefit from the institution’s research and work in science, technology and innovation.

He described the involvement of industry-led research as the driving force of the Silicon Valley. He also made a case for venture capital and private equity funds to support research outputs from the continent.

Neil Turok, the Founder of AIMS, described the Bank as a leading institution in Africa and said the Institute is excited about the prospect of a partnership. “I was trained to believe in Africa. I can tell you AIMS is the most exciting and dynamic science and educational institution in the world. What has driven the institution are the young students from Africa.”  

Turok said AIMS’ research and industry-led capacity development aligns with the Bank’s High 5s, including its regional integration targets. “What we are doing at AIMS is to transform Africa is by giving opportunities to the youth. AIMS is African-owned, African-run, African-operated, but it hosts the best scientists in the world to give African young scientists the stuff they need.”  

He went on to say, “Our goal is to be the MIT for Africa. We know the impact MIT has on U.S. industry. We want to create the same for Africa, but we struggle with sustainable funding. We want to work with the African Development Bank to develop sustainable funding.”

The aim of the partnership program is to ensure that each of the 54 African countries has an additional 100-250 world-class specialists in mathematical sciences by 2020 to lead research and innovation in various fields. The total cost of the partnership program is projected at US $54.685 million.

AIMS is seeking bridging finance of $5 million to build mathematical capacity in Africa and called for the Bank’s support to establish the African Presidential Resource Center. AIMS’ President, Thierry Zomahoun, explained, “Bridging finance is needed to build upon and sustain the momentum in AIMS’ ongoing expansion of mathematical sciences education, training, research and industry initiative on the continent.

“With the generous support of donors since 2003, AIMS has been able to mobilize and commit more than $60 million in support of fully funded scholarships for the brightest young African scholars to obtain master’s and PhD education and training in the mathematical sciences and to implement an industry initiative.”

Adesina commended Obasanjo for establishing the Nigerian Trust Fund, hosted by the African Development Bank in 1976, when he was the Nigerian Head of State. “We want to ensure that Africa is not left behind in the 4th industrial revolution. That is why we, as a Bank, are very happy that you are leading the AIMS delegation to push for the strengthening of mathematical sciences.”  

Agribusiness Fund: CBN Begins Disbursement Of N26bn Beneficiaries -PM NEWS

The Central Bank of Nigeria (CBN), in collaboration with the Bankers’ Committee on Thursday commenced disbursement of N26 billion Agribusiness Small and Medium Enterprises Investment Scheme (AGSMEIS) fund to the first set of beneficiaries.

The CBN Governor, Mr Godwin Emefiele at the inauguration of the scheme in Abuja, said that the fund was set up by the Bankers Committee at its 331st meeting held on Feb. 9, 2017.

He said that the main purpose was to improve access to affordable funding for Micro, Small and Medium Enterprises (MSMEs), particularly those operating in the informal sector of the economy.

Emefiele recalled that as commitment to the successful implementation of the scheme, all Money Deposit Banks (DMBs) voluntarily agreed to contribute five per cent of their Profit After Tax annually.

He said their contribution was to be used to fund eligible projects under the scheme.

Emefiele commended the commitment of the DMBs to support the scheme, adding that by the end of next year, the disbursement rate of the fund would have risen to N60 billion.

He also said the fund would be disbursed to youths, who had been trained on various entrepreneurship, vocational and management skills across the country by Entrepreneurship Development Institutions and Centres.

According to him, the centres are the Fate Foundation, Lagos Business School, House of Tara and Thrive Agric.

He said unlike other intervention scheme where the funds were disbursed in cash, beneficiaries under the agribusiness programme would be given equipment that were commensurate to the required amount based on their trade areas.

“In Nigeria, the challenges of youth unemployment and restiveness must be confronted with strategic innovative thinking to provide sustainable solution.

“No matter how daunting the challenge may seem, I believe that with unity of purpose, we can fight this scourge together.

“There is no gainsaying the fact that one of the most effective ways to tackle this scourge, is through entrepreneurship development and easy access to affordable funding.

“Yet, access to funds has been an Achilles heel on entrepreneurship development in the country today.

“A situation often credited to financial intermediaries’ apathy to youth entrepreneurship and startups, which are usually perceived as being too risky,
lacking relevant managerial skills and not possessing,’’ he said.

Emefiele said that the AGSMEIS scheme would be implemented under three broad components, direct, indirect and developmental components.

Under the direct component of the AGSMEIS, the CBN governor said beneficiaries could access loans to a limit of N10 million at an interest rate of five per cent per annum and a maximum tenor of up to seven years.

In addition, he said that there was also a moratorium period of 18 months on principal and six months on interest element, depending on the nature of the business.

Under the indirect component of the scheme, the CBN governor said
beneficiaries could access equity and quasi-equity investments of up to ten years with an initial lock up period of three years before divestment.

He explained that the developmental component of the scheme would be used for capacity building and technical assistance to support beneficiaries.

Emefiele said also that the apex bank would step up its developmental objectives so as to reduce the level of unemployment and create wealth that would support the growth and development of the economy.

Also, he said that under the CBN Anchor Borrowers Programme, which was launched in Nov. 2015, the bank had disbursed N80 billion to
358,000 small holder farmers in 34 states, cultivating eight commodities.

The highlight of the event was the disbursement of materials worth N133 million to first set of 358 beneficiaries to start businesses in their chosen fields.

Emefiele stressed again that the money was not free and the beneficiaries would be strictly monitored to ensure repayment.

SOURCE: PM NEWS

Anchor Borrowers’ Scheme: Bayelsa Rice Farmers Commend Nigerian Govt. As 500 Farmers Received Farm Inputs

Rice farmers in Bayelsa have applauded the Federal Government for its agricultural development initiatives, especially the Anchor Borrowers’ Programme (ABP).

Mr Eziekiel Ogbianko, Chairman of the state chapter of the Rice Farmers Association in Nigeria (RIFAN), made the commendation in an interview with the News Agency of Nigeria (NAN) on Monday in Yenagoa on Monday.

Ogbianko said that ABP had provided opportunities for many farmers in Bayelsa to access farm inputs easily.

He expressed optimism that, with ABP in Bayelsa, there would be increase in farm produce, especially rice.

“The ABP has come to stay as a life-saving programme for farmers.

“Many of our members are benefiting immensely, and we hope to work hard to support the FG’s efforts in ensuring food sufficiency,’’ he said.

More than 500 rice farmers in Bayelsa, on April 5, received various farm inputs in the first phase of the ABP.

The inputs distributed to the farmers included 120,000 bags of fertiliser, 400 cans of herbicides and 500 sprayer machines.

Oghianko noted that the Central Bank of Nigeria flagged-off distribution of the items under the first phase of the 2018 ABP for dry-season farming.

He also noted that ABP was aimed at promoting mass production of rice through a revolving loan to empower millions of farmers.

“Right now in the state, we have over 4,000 farmers working on 20,000 hectares of land cleared for the dry season rice farming.

“The farm sites are located at Ondewari and Okpotuwari communities in Southern-Ijaw Local Government Area.’’

Mr John Owei, a rice farmer, also hailed the programme in the state, promising that farmers would continue to support the government’s efforts to achieve food security.

“The ABP scheme has created wealthy farmers across the country,” Owei said.

A female rice farmer, Mrs Caroline Ebipadie, said that she received fertiliser, a sprayer machine and 10 litres of herbicides.

Ebipadie told NAN that in spite of some constraints, the programme had given participants a new lease of life.

She added that the ripple effects of ABP provided job opportunities.

FAPA approves three projects to spur SME development in Africa

Donors to the Fund for African Private Sector Assistance (FAPA) consisting of the African Development Bank, the Government of Japan and the Government of Austria – have approved three catalytic projects totaling US $2,480,000 to stimulate the growth of Africa’s small and medium enterprises.

These grants will help strengthen the participation of Africa’s SMEs in financial markets and the agriculture sector.

“These three projects are well aligned with FAPA’s core mandate of supporting private-sector development in Africa, a key strategic priority of the African Development Bank. They augur well for job creation in Africa,” said Olivier Eweck, Director of the Syndication, Co-financing and Technical Solutions Department at the African Development Bank, and Chair of the FAPA Technical Committee.

The first project, Regional Financial Market Development Support Project (Projet d’appui au développement du marché financier regional, PADMAFIR) – a FAPA grant of US $980,000, will contribute to the modernization of the regulatory framework to increase competitiveness and strengthen the capacity of the regulator on new products, including securitization, diaspora bonds and green bonds. The grant will facilitate SMEs’ access to stock market funding and train commercial stakeholders to enhance professionalization. PADMAFIR is part of a long-term and ongoing multi-stakeholder partnership to develop the Regional Financial Market (stock exchange) of the West African Monetary Union (WAMU).

The second project is for the Promotion of Factoring in Africa, through which an investment totaling US $500,000 is deployed to finance the capacity-building of emerging factoring firms and the development of a sustainable knowledge and learning platform. The platform will provide capital to SMEs by financing their receivables. The African Export-Import Bank (Afreximbank) will contribute US $450,000 towards this technical assistance project.

The third project is a grant of US $1,000,000 for leveraging investments for fertilizer utilization amongst smallholder farmers in Africa. It will help increase the affordability, accessibility and incentives for fertilizer use among smallholder farmers in Africa and expand the supply and distribution of fertilizer by leveraging investments. It is also intended to create over 1,000 jobs for women and youths. The AfricanFertilizer and Agribusiness Partnership will match the FAPA grant on a 1:1 basis.

“We look forward to providing further FAPA grants that will unlock business possibilities for Africa’s SMEs,” Eweck said.

Since its launch in 2006, FAPA has received donor contributions exceeding US $85 million and helped finance over 80 technical assistance projects, thereby making a significant contribution to SME development in Africa.