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A 90-Day Halt Crippling Global Aid: A Funding Freeze or a Deeper Systemic Issue?

When  U.S. President Donald Trump announced a 90-day freeze on most U.S. foreign aid in January 2025, the reaction from aid organizations was swift and urgent. Reports detailed how clinics were shutting down, HIV treatment programs were being disrupted, and life-saving services were at risk in countries such as Nigeria, Kenya, Uganda, and Tanzania. The immediate fallout raises an important question: if the halt is temporary, why was there no buffer to sustain these critical programs for even a few weeks? The situation exposes potential vulnerabilities in the global aid system—ones that go beyond the politics of U.S. foreign policy. U.S. foreign aid, including programs like the President’s Emergency Plan for AIDS Relief (PEPFAR), operates on scheduled disbursements. Funds are not sent out in lump sums but are distributed periodically, often monthly or quarterly. This rolling budget model means that any disruption in the pipeline can have immediate consequences, especially for organizations that rely on U.S. aid as their primary funding source. Additionally, U.S. government aid often requires compliance with bureaucratic processes that can delay fund access. Even when budgets are approved, it can take weeks or months for organizations to receive the funds, order supplies, and implement programs. While the sudden shortfall is alarming, it raises deeper concerns about financial planning and dependency on U.S. aid. Consider these possibilities:             1.         Over-Reliance on One Source: Many of the affected organizations receive the bulk of their funding from the U.S. government, making them vulnerable to policy shifts. While private donors and other international agencies contribute, their support may not be sufficient to sustain large-scale operations when U.S. aid is frozen.             2.         Lack of Financial Reserves: Ideally, aid programs should have contingency funds to cover short-term disruptions. The fact that services are collapsing within days suggests that many organizations may not have adequate reserves or alternative funding mechanisms.             3.         Supply Chain Vulnerabilities: Even if funds were available, bureaucratic and logistical hurdles in procurement and distribution could mean that stockpiles of medicine, food, and essential supplies were already running low before the funding freeze.             4.         Strategic Messaging: There is also the possibility that organizations are emphasizing the immediate impact to pressure lawmakers into reversing the funding halt. While the crisis is real, the severity of the messaging could be a way to accelerate policy responses. The current crisis highlights a recurring problem: many international aid programs function on short-term funding cycles without long-term sustainability plans. The dependency on a single major donor—particularly one as politically unpredictable as the United States—creates instability. The U.S. has a long history of leveraging aid as a political tool, and Trump’s latest move is a reminder that foreign assistance can be revoked at any time. This raises critical questions:             •           Should recipient countries and aid organizations work toward more diversified funding sources?             •           Are there better ways to structure international aid to prevent sudden collapses?             •           Should there be international mandates requiring organizations to maintain reserves for emergency situations? What Happens Next? While the funding halt is set to last 90 days, the damage may extend beyond that period. Interruptions in HIV treatment, for example, could lead to an increase in drug resistance and higher transmission rates. Clinics that shut down due to lack of funds may struggle to reopen. The long-term lesson from this crisis is clear: financial sustainability in global aid needs to be prioritized. A single executive order should not be able to dismantle life-saving programs overnight. Whether this leads to reforms in aid management remains to be seen. For now, the world watches as humanitarian organizations scramble to fill the gaps—and as millions of lives hang in the balance.

Investments in Ai to rise 60% over the next three years – BCG Report

Micah Essien According to a recent report by the Boston Consulting Group (BCG), investments in generative artificial intelligence (AI) are projected to increase by 60 percent over the next three years. The study, titled “BCG AI– From Potential to Profit: Closing the AI Impact Gap,” highlights that in 2025, AI will remain a primary focus for global business leaders, with one-third of companies planning to allocate over US $25 million to AI initiatives. BCG’s AI Radar global survey, now in its second year, gathered insights from 1,803 C-level executives across 19 markets and 12 industries, including nations such as South Africa, Nigeria, and Morocco. The findings revealed that 56% of companies are channelling their AI investments into smaller-scale, productivity-oriented projects. While leaders are setting clear objectives and monitoring both top and bottom-line impacts, 60 percent of surveyed companies have not established or tracked financial key performance indicators (KPIs) related to AI value creation. In Africat, 35 percent  of companies surveyed lack defined financial KPIs for AI value creation. Additionally, 62 percent face challenges in effective AI organizational change management, and 68 percent report difficulties in hiring and upskilling AI talent. BCG’s CEO, Christoph Schweizer, noted, “CEOs are prioritizing AI to drive productivity. While 75% of executives rank AI as a top-three strategic priority, only a quarter report meaningful value from their initiatives. The gap lies in execution—leaders focus on targeted AI initiatives, scale them rapidly, and invest in upskilling their workforce while tracking measurable operational and financial returns.” The report also indicates a growing interest in autonomous AI agents—systems capable of achieving goals with minimal human intervention. Globally, 67 percent of executives are exploring the role of these agents in AI transformation, with 65 percent of African companies considering them integral to their AI strategies. Additionally, 66 percent of African executives are optimistic about the synergy between AI and human talent, foreseeing complementary roles. Only 6 percent anticipate job losses due to AI; instead, 68 percent expect to maintain workforce size by enhancing productivity and upskilling employees, while 19 percent foresee AI taking the lead with human oversight. Despite the positive outlook, significant concerns arise. The report identifies data privacy and security as the top issues, and this was cited by 66 percent of executives, followed by lack of control over AI decisions (48 percent) as well as regulatory challenges (44 percent). In Africa, 64 percent of executives emphasize data privacy risks, and 46 percent highlight regulatory hurdles as barriers to AI adoption. Additionally, 83 percent of African companies acknowledge the need for improved AI security measures, and 60 percent consider regulations as a factor influencing their AI adoption pace—this is the highest rate globally. The environmental impact of AI is another pressing issue. Globally, 73 percent of companies fail to prioritize energy-efficient AI solutions in vendor selection. This figure is mirrored in Africa, standing at 73 percent, slightly better than South America (86 percent) and North America (83 percent). Addressing this gap will be crucial as AI adoption accelerates across sectors.

Bank of Industry: A focal point of Nigeria’s new industrial push

Through a combination of policy initiatives and the preparedness of the Bank of Industry (BOI) under Dr. Olasupo Olusi, the country’s largest and oldest development institution is now seen as the home for President Bola Ahmed Tinubu’s renewed push for Nigeria’s industrialisation. The Bank’s role and relevance has increased tremendously in the last year and has just secured a nearly 2 billion Euros syndicated loan to prepare for the future. Its recent success in raising €2 billion – the largest fundraising effort in its history – was both a culmination of disciplined six months work and the preparation to accommodate more developmental responsibilities in the Nigerian economy. That has become increasingly the only hope for small and medium sized companies in the face of high and rising banks interest rates of over 30 percent. BOI has this become the backbone in Nigeria’s industrialization agenda, provide both large-scale and long term funding to priority sectors like agro-processing, technology, manufacturing, and renewable energy – all industries vital for economic diversification. Improved Financial Performance While BOI have always had superior financial performance, the Bank’s capacity has grown dramatically in the last 12 months. For instance, BOI’s €2 billion (N3.4 trillion) raise from global institutions gave it a substantial capacity to boost financing for Nigeria’s businesses, raising the Bank’s total assets from N3.91 trillion in December 2023 to N6.38 trillion by end of September 2024, giving Nigerian businesses access to affordable (9-14 percent), long-term capital and job creation facilitation. The Bank was able to grow remarkably showing and attesting to a remarkable increase in its financial performance. Attracting Funding from Foreign Institutional Investors The BOI’s ability to attract significant foreign funding is a testament to its credibility and growing global reputation. The €2 billion loan raised in 2024 involved contributions from prominent institutions like the European Investment Bank (EIB) and other international development finance organizations. The Africa Finance Corporation (AFC) acted as the global coordinator, lead co-arranger, and guarantor, supported by banks like Standard Chartered, Afreximbank, First Abu Dhabi Bank, and others. This syndication marked a significant milestone, becoming the largest in BOI’s history and Africa’s development finance landscape. Proceeds are for corporate purposes, trade financing, and industrialization projects in Nigeria, reflecting investor confidence in BOI under Dr. Olasupo Olusi’s leadership. The success of this syndication underscores market confidence in BOI’s history in delivering funding access in high impact areas of the economy in low costs to industries. Proceeds will be used for trade financing and supporting industrial and trade-related projects in Nigeria, directly impacting critical sectors like manufacturing, infrastructure, and exports. Effectively, BOI is now the bridge between global investors interested in Nigeria’s industrial development and companies. Under the leadership of Dr. Olasupo Olusi, BoI has consistently demonstrated financial prudence and the ability to continuously attract significant foreign funding. AFC’s A3 investment-grade rating from Moody’s further enhanced the bank’s credibility during the syndication process. Foreign investors are drawn to BOI not only for its financial performance but also for its adherence to global best practices in governance and transparency. The bank’s emphasis on sustainable development, particularly through green financing, aligns with international goals, such as the UN’s Sustainable Development Goals (SDGs). This alignment enhances its attractiveness to foreign partners, who view the BOI as a reliable vehicle for impactful investments in Nigeria. What This Means for Nigeria’s Industrialization The €2 billion raised by the BOI has profound implications for Nigeria’s industrialization efforts. It guarantees access to affordable, long-term financing for entrepreneurs, industrialists, and SMEs – addressing one of the most significant barriers to industrial growth in the country. For example, agro-processing businesses can now acquire modern machinery, manufacturers can expand production lines, and tech entrepreneurs can develop innovative solutions with the assurance of funding. The BOI’s financial strength also positions it to support large-scale projects that can transform Nigeria’s economy. Industrial parks, renewable energy plants, and export-oriented manufacturing initiatives are just a few areas that stand to benefit. The funding ensures that Nigeria remains competitive on the global stage while addressing local challenges like unemployment and import dependency. A New Strategic Focus Under the leadership of Dr. Olasupo Olusi, the BOI has refined its focus to address emerging challenges and opportunities. Dr. Olusi, a seasoned expert in development finance, formerly at the World Bank, has emphasized three core priorities for the bank: innovation, sustainability, and economic resilience. The Bank of Industry (BOI) has set an ambitious target for the first quarter (Q1) of 2025. It is going to ensure that its services get to Nigeria’s 36 states. BOI’s assurance to reach 36 States by Q1 of 2025 comes as Nigeria grapples with economic challenges, making institutions like Bank of Industry to play a critical role in providing funding for the private sector and fostering development. In addition, the bank said its non-interest banking service is also coming up soon. At a time when accessing capital is increasingly difficult for businesses due to global financial constraints and rising inflation, BOI has emerged as a vital player with single digit interest loans while interest rates are as high as 35 percent in commercial banks. The BOI recognizes the challenges of operating in a volatile global economy and a complex domestic environment. To address these, the bank has strengthened its risk management frameworks and expanded its partnerships with government agencies and private sector stakeholders. The bank is also investing in digital transformation to improve efficiency and transparency. A new digital lending platform allows businesses to apply for loans seamlessly, reducing bottlenecks and improving access for entrepreneurs in remote areas. This technological   advancement ensures that funds from the €2 billion raise are deployed effectively and equitably. Beyond its core role, the BOI has taken on broader responsibilities to support Nigeria’s development goals. It now plays a significant role in driving financial inclusion, providing training and resources to underserved demographics. The bank has also been pivotal in advancing Nigeria’s climate agenda, supporting projects that align with the global energy transition. The Bank of Industry’s €2 billion fundraising

Africa’s Big Moment: How ABC is Redefining the Continent’s Economic Future

Africa – the mother continent, a continent so diverse in tongues and ideology, rich in resources, bursting with innovation, and home to a rising wave of entrepreneurs and young talent. Africa is home to 30 percent of the world’s mineral reserves, eight  percent of the world’s natural Gas and 12 percent of the world’s oil reserves.  The continent has 40 percent of the world’s gold and up to 90 percent of its chromium and platinum. Yet, for all its promise, real challenges remain –  infrastructural gaps, disunited markets, and limited access to trade and innovation have significantly slowed the continent’s progress. The Africa Business Convention (ABC) is here to change that as it has established itself as more than a networking event. The Africa Business Convention (ABC) was created to address these challenges head-on. As the 2025 Annual conventionapproaches, it promises to be a significant gathering for business leaders, policymakers, and investors across the continent. Scheduled for February 25th to 26th, 2025, at the Four Points by Sheraton in Lagos, the event is themed “Africa Invest.” This focus underscores the importance of investment in driving Africa’s economic transformation. Register at https://africabusinessconvention.com/event/africa-business-convention-abc-annual-meeting-2025/ This year’s annual meeting lineup includes some of the most influential voices in African business and policy – Ramesh Moochikal, the CEO of Africa Improved Foods, Kigali; Dr. Emomotimi Agama, Director General of Nigeria’s Security and Exchange Commission (SEC); Dr. Olasupo Olusi, the CEO of the Bank of Industry (BOI); Professor Peter Quartey, professor of economics and director of the Institute of Statistical, Social, and Economic Research (ISSER), Ghana; Folashade Ambrose – Medebem, Commissioner for Commerce, Cooperatives, Trade, and Investment (CCTI), Lagos State; Mr. Jude Chiemeka, CEO, Nigeria Exchange Ltd, and many others. It is a movement – a platform where African business leaders, policymakers, and innovators come together to address the challenges holding the continent back and create real, actionable solutions. One of the biggest pieces of this puzzle is the African Continental Free Trade Area (AfCFTA). This historic agreement has linked 55 African nations into one single market, promising to reshape trade, boost industrialization, and create jobs across the continent. It’s a game-changer, but not without its complexities. Businesses need clarity on policies, strategies for cross-border operations, and access to market insights to thrive in this new landscape. That’s where ABC steps in. Through expert-led panels and hands-on sessions, the convention breaks down the challenges and opportunities of AfCFTA. It gives businesses—from ambitious start-ups to established brands—the tools they need to navigate this evolving market and seize its potential. But trade alone isn’t enough to transform Africa. Infrastructure remains a significant roadblock. More than 600 million Africans still lack access to reliable electricity, and poor road networks continue to stifle growth. ABC tackles these issues head-on with its Power, Infrastructure, and Energy (PIE) stream, bringing together the brightest minds to discuss solutions. From renewable energy innovations to new funding models for infrastructure projects, the conversations at ABC are about turning big ideas into tangible progress. Technology is another key piece of the puzzle. Africa’s tech ecosystem has already made waves globally, with companies like Flutterwave and Andela grabbing headlines. But outside of a few hotspots, the adoption of technology is still uneven. That’s why ABC’s Fintech, Innovation, and Technology (FIT) stream is so important. It’s a space where start-ups and investors connect, where ground-breaking ideas—like agritech solutions for food security or fintech platforms improving access to credit—can find the spotlight they deserve. What sets ABC apart, though, is its focus on empowering African businesses to lead the continent’s growth story. Many global conventions discuss Africa’s potential from the outside looking in. ABC puts African entrepreneurs and small businesses at the centre of the conversation. With workshops on capital raising, market expansion, and strategic partnerships, it is a launchpad for businesses looking to scale and succeed. The convention also recognizes that growth isn’t just about numbers—it’s about sustainability and governance. Global markets are increasingly focused on ethical practices, and ABC ensures African businesses stay ahead of the curve. Through its Environmental, Social, and Governance (ESG) sessions, it equips businesses with strategies to adopt sustainable practices that not only attract investors but also build a legacy of responsible growth. But ABC is more than just a business event. It’s a platform for advocacy, one that amplifies African voices and influences global policy conversations. By driving systemic change and attracting international investment, the convention ensures that Africa isn’t just playing catch-up – it is leading the way. This year, ABC’s six focus areas – Jobs, Economy, and Trade (JET); Power, Infrastructure, and Energy (PIE); Agriculture and Food Security (AFS); Banking, Investments, and Capital (BIC); Fintech, Innovation, and Technology (FIT); and Environmental, Social, and Governance (ESG) – are designed to tackle Africa’s most pressing challenges. These streams offer more than just discussions, they provide actionable roadmaps for addressing Africa’s most pressing challenges and unlocking its immense potential. The 2025 Africa Business Convention isn’t just about discussing what’s wrong, it is about building what’s possible. It’s about turning Africa’s potential into progress. For businesses, leaders, and change-makers, this is the platform to create the future we’ve been talking about for decades. Collectively, the continent of Africa has much to gain when there is a pulling together and an harnessing of all of its vast natural resources in order to finance the development agenda towards greater prosperity. This and many more will be discussed in depth at the ABC. Don’t just watch history unfold – help shape it. Join us at The African Business Convention on the 25th of February to the 26th of February 2025, at the Four Points by Sheraton in Lagos.  Let us build and invest in Africa’s future – together. For more details and more enquiries do reach out to me via the following channels:- 📞 +2348171530058, 📧 ogho@africabusinessconvention.com  parnerships@africabusinessconvention.com., 🌎 africabusinessconvention.com

Tinubu’s Free Market – A Riposte

Nosa Igbinadolor I have in the recent past had a brief exchange of views on the issue of free market on X with the brilliant attorney, Abdul Mahmud. In these brief interactions, I sensed his discomfort if not hostility to the idea and practice of free market. Perhaps this suspicion comes from a background of unionism and activism which in most parts of the world have tended to find comfort in if not alliance with welfarism, socialism and even communism. I have just read his op-ed titled Tinubu’s Free Market. While I have set out to put across my views on the merits and desirability of free market, I find discomfort in doing so against the background of his situating his discourse around the Nigerian president and his recent statement where the president defined himself as a believer in a free market.  I have not set forth to censure and repudiate Abdul Mahmud’s viewpoints, I will explain why I believe that a free market is a more effective mediator of economic activities and growth. Nigeria does not operate as a free market economy. While it may give the impression of doing so, its economy is largely categorised as unfree. According to the Heritage Foundation’s 2024 Index of Economic Freedom, Nigeria’s economic freedom score is 53.1, ranking it as the 125th freest globally. Within the Sub-Saharan Africa region, Nigeria is ranked 23rd out of 47 countries. Its economic freedom score falls below the global average but exceeds the regional average, leading to its classification as “mostly unfree.” The country only performs relatively in areas such as government spending and tax burdens. Systemic issues the gatekeep economic freedom persist, including a judicial system vulnerable to political influence, widespread corruption, and a weak rule of law. Regulatory processes remain cumbersome and expensive, creating challenges for entrepreneurs. Additionally, a significant portion of the formal workforce is concentrated in public or energy sector jobs. Entrepreneurship is fundamentally driven by the need to establish and nurture lasting relationships with customers. By fostering cooperation and encouraging commitments, entrepreneurs mitigate the risk of losing business to more ethical competitors. The adherence to these principles is not merely a moral choice but a practical necessity in competitive markets. Core tenets of free market systems such as private property, freedom of contract, and the rule of law act as a framework that compels individuals and businesses to consider the long-term consequences of their actions, ultimately promoting sustained cooperation and integrity. Institutions play a crucial role in this dynamic, serving as the “rules of the game” in society. These structures and mechanisms enable social order and cooperation, providing the foundation on which markets operate. Contrary to the perception of markets functioning independently, they exist within an institutional framework. Failures in market systems often reflect institutional shortcomings rather than inherent flaws in the market itself. Such failures frequently arise from institutional capture and manipulation by political interests, which manifest in poorly conceived economic policies and inconsistent policy execution. Market competition serves as a powerful mechanism for enabling widespread, mutually beneficial interactions. It relies on market-determined prices to communicate critical economic information; data that centralised government entities would find challenging, if not impossible, to aggregate and utilise effectively. When these prices accurately reflect the full spectrum of individual actions and their external impacts, market outcomes achieve efficiency. However, when prices fail to incorporate these externalities, market failures occur. In such cases, public policy interventions have the potential to correct inefficiencies and improve overall economic outcomes. By understanding the interplay between entrepreneurs, institutions, and market competition, we can appreciate the delicate balance required to sustain ethical and efficient economic systems. Ensuring robust institutions, fostering transparent market mechanisms, and addressing externalities through sound public policy are vital to achieving this equilibrium. In Nigeria, structural changes that are needed to develop a more vibrant private sector or achieve more broad growth have not emerged. The advantages of market institutions over government institutions as aptly posited by Thomas Sowell, are not so much in their particular characteristics as institutions but in the fact that people can usually make a better choice out of numerous options than by following a single prescribed process. Fredrich Von Hayek was right when he argued that, no central planner (government) could possibly aggregate, process, or act upon information as efficiently as decentralised participants respond to the information and incentives conveyed by the price system in competitive markets. Not only will a central planner allocate resources poorly, but the mere attempt to do so will impede the progress and utilisation of social knowledge. Government planning, seen in this light, is not simply inefficient but inherently arbitrary and oppressive. For the first decade and a half (1960–73), many African economies exceeded projected growth rates largely driven by natural resource export. Indeed, many development observers then were more optimistic about progress in Africa compared to Asian countries, particularly because countries such as Côte d’Ivoire, Ghana, and Zambia already had per capita incomes that exceeded those of East Asian countries, including the Republic of Korea Why did Africa fail global expectation? State planning took over, including the nationalisation of industries which itself led to the distortion of the market. From the 1960s to the 1980s, many African nations adopted policies of nationalisation, trade protectionism, and state planning to promote economic independence and industrialisation.  The Democratic Republic of the Congo (formerly Zaire) exemplified the challenges of such policies. In the early 1970s, the government nationalised foreign-owned businesses, including the significant mining company Union Minière du Haut-Katanga, aiming to assert economic sovereignty. However, the redistribution of these enterprises to individuals lacking the necessary expertise led to widespread mismanagement. The new owners often liquidated assets for quick profits, resulting in the collapse of commercial infrastructures and severe economic dislocation. This period also saw excessive government regulation, price controls, and an overvalued currency, which, combined with declining commodity prices, precipitated a financial crisis by the mid-1970s. The economic decline persisted into the 1980s, highlighting the detrimental impact of poorly