Uganda secures $253 million funding for road construction December 2, 2023 newbusin

[Uganda secures $253 million funding for road construction

The Board of Directors of the African Development Bank (AfDB) Group approved a loan of $252.83 million to Uganda, to fund the construction of the Laropi-Moyo-Afoji and Katuna-Muko-Kamuganguzi road.

The financial support consists of two loans: $179.68 million from the African Development Bank and $73.15 million from the African Development Fund, the Bank Group’s concessional loan window. “The Laropi-Moyo-Afoji/Katuna-Muko-Kamuganguzi road project is intended to improve rural transport connectivity and facilitate regional integration in the districts of Kabale, Rubanda, and Moyo, in Uganda. It will boost incomes, deepen regional integration, and facilitate trade while opening up an alternative transport corridor linking Uganda with South Sudan,”, said Augustine Ngafuan, the African Development Bank’s Country Manager in Uganda.

“Building this infrastructure will enable economic operators along this route to reduce costs and lead times while improving the efficiency of transport logistics,” added Mr. Ngafuan.

In addition to the two main roads, the project will also support the following social complementary initiative: 5 kilometres of roads in small towns and non-motorized traffic facilities (walkways and cycle tracks) within Moyo and Laropi in northwestern Uganda to improve mobility; street lighting to improve the business environment for traders, and regional bus terminus in Moyo.

The project also provides for the construction of market stalls complete with cold storage facilities in Kashasha/Katuna, Moyo and Laropi to support women traders who currently operate on the roadsides, in order to improve earnings from perishable products such as fish and vegetables.

There will also be flood protection works in Laropi to strengthen resilience to the effects of climate change and reduce disruptions to commercial activities. Lastly, a one-stop border post will be constructed in Afoji/Jale on the Uganda-South Sudan border to boost trade and transport activities and facilitate the harmonization customs and coordination of the border-crossing operations and supply chains.

The Laropi-Moyo-Afoji road is located in northwestern Uganda, in the district of Moyo, which has a population of about 140,000. Some 80% of the district’s land is arable and suitable for agriculture and horticulture. The Western Nile sub-region currently hosts more than 500,000 refugees from the Democratic Republic of Congo and South Sudan. The road will provide vital access to several refugee camps and support agricultural communities in Kabale and Rubanda districts, with a combined population of about 460,000 inhabitants.

As of November 2023, the African Development Bank Group’s active portfolio in Uganda comprised 23 projects with a total commitment of $1,957 million.

Source:  New Business Ethiopia, 2nd December, 2023


African countries defend large delegations at COP28

African countries defend large delegations at COP28

African countries defend large delegations at COP28
A handout picture provided by the UAE Presidential Court shows President   –  

Copyright © africanews



Multiple African governments have justified their decision to send substantial delegations to the COP28 climate conference in Dubai, despite facing widespread criticism.

According to the UN’s attendance list, Nigeria, Morocco, Kenya, Tanzania, Ghana, and Uganda were among the nations with the largest teams.

Nigeria topped the list with 1,411 delegates, followed by Morocco with 823 and Kenya with 765. Responding to the criticism, representatives from Nigeria and Kenya clarified that a significant portion of their delegations comprised individuals representing the media, civil society organizations, and private institutions, who were not publicly funded. Both countries also emphasized that some listed delegates were participating remotely.

A statement from an adviser to Nigeria’s President Bola Tinubu highlighted Nigeria’s role as the continent’s largest country and economy, underscoring its substantial stake in climate action due to its extensive extractive economy. According to the statement, the size of the Nigerian delegation reflects the country’s pivotal position.

Kenya’s State House spokesperson, Hussein Mohammed, addressed concerns about the delegate numbers, describing them as “exaggerated.” He clarified that the figures represented those who had registered for the event, not the actual attendees.

Mohammed further stated that the national government had approved only 51 essential delegates, with the remainder sponsored by various groups.

Meanwhile, the Tanzanian government released a statement asserting that over 90% of the country’s delegation was sponsored by the private sector, offering insight into the funding dynamics behind their participation.

As the debate surrounding delegation sizes continues, African nations defend their choices, emphasizing the diverse representation and private sector support within their respective teams.

Source: Africanews, 4th December, 2023


Nigeria Seeks to Bolster Bilateral Trade Ties With Mexico

Nigeria Seeks to Bolster Bilateral Trade Ties With Mexico

Nigeria Seeks to Bolster Bilateral Trade Ties With Mexico
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With total exports between Nigeria and Mexico valued at only about $94.30 million in 2022, the Executive Secretary/Chief Executive, Nigerian Export Promotion Council (NEPC), Nonye Ayeni, has said the council is currently working to further harness the full potential of both countries.

Speaking at a Business Development Session with the Mexico Delegation on Trade Mission to Nigeria and the ECOWAS led by Dr. Heriberto García, the NEPC boss said the trade relationship between both countries has the potential for immense growth.

She said Nigeria’s exports to Mexico included a variety of products, showing the diverse economy of the country.

Amongst the non-oil products exported to Mexico are agricultural products, such as cocoa and hibiscus, as well as solid minerals like tin and limestone.

Ayeni pointed out that building on the existing cordial relationship between the two countries, the meeting was aimed at having robust interaction between Mexican business delegates and Nigerian exporters to identify possible areas of collaboration for mutual benefits.

She said the programme will culminate in the signing of a Memorandum of Understanding (MOU) between NEPC and Mexican Business Council for Foreign Trade, Investment and Technology (COMCE).

The NEPC boss further explained that the MoU was a prelude to jointly working in a number of areas of cooperation between council and COMCE.

The scope of the cooperation will cover promotion of trade, investment and commercial exchanges between both countries, and exchange of printed or electronic information, reports and publications on issues of mutual interests.

Source: ThisDay, 4th December, 2023


US applauds Nigeria’s efforts at bolstering economy for sustainable for growth



Top 10 business risks and opportunities for mining and metals in 2024

Top miners continue to make progress on a range of ESG, climate change and license to operate risks but are under pressure to do even more.

In brief
  • ESG is attracting more scrutiny from investors and the community. Better use of data and a focus on net-positive impact can help meet growing expectations.
  • Capital rises to #2, as the mining sector grapples to fund the expansions required to meet increasing demand for minerals crucial to the energy transition
  • Cybersecurity is becoming a bigger issue as the pace of digital transformation accelerates across the sector.

This year’s ranking highlights the complex operating environment miners will face in 2024. Challenges will be numerous but history proves the resilience and the inventiveness of this sector. We expect to see more innovation, collaboration and agility over the next 12 months as mining and metals companies embrace the upside of change. At first glance, the 2024 ranking of the top business risks and opportunities in mining and metals (pdf)  doesn’t differ too much from the last couple of years. But while some issues are clearly becoming long-term priorities — particularly ESG and license to operate — others reflect new challenges in the sector.

Radar = Business-risks chart
  • Open image description

    A list of the top ten risks and opportunities for mining and metals companies in 2024 and, where they ranked in 2023.

We see a number of key themes playing out:

Expectations of investors and stakeholders have been underestimated and continue to increase

According to our survey respondents, scrutiny from all stakeholder groups is increasing, particularly around ESG issues. With these expectations anticipated to continue, miners will need to balance ESG priorities with other business goals, including productivity. Many are focused on achieving net- positive impact across a number of ESG factors, with significant benefits for those that get it right, including improved access to capital, a healthier talent pipeline and stronger license to operate [LTO].

The pace of change has accelerated

Capital has moved up in the ranking as the sector competes for investment and incentives to accelerate exploration and development of minerals and metals vital to the energy transition. We’re seeing a shift from a short-term focus on returns to a long-term view of value, encouraged by recognition that longer-term investment horizons are required to meet 2050 net-zero goals.

Inflationary pressure has fast-tracked technology development, as miners focus on digital tools that can accelerate productivity. The pace of digital transformation is highlighting the importance of cybersecurity, which is new to the ranking this year. Supply constraints are a catalyst for consideration of circular economy principles, with miners more conscious of minimizing waste.

Risks today are highly complex, interlinked and impact each other

Executives say they have a better understanding of sustainability issues — but that they cannot tackle all areas at once. With ESG becoming more complex and interlinked, addressing them requires an approach that thinks beyond meeting regulation and controlling costs. Instead, leaders need assurance that investments in one area will add genuine value rather than cause problems elsewhere. In-depth scenario planning can help guide prioritization, identify potential trade-offs and help miners create real, long-term positive impact.

Building trust and articulating value can evolve the sector’s brand

When trust is an issue, transparency is key. Miners need to get better at articulating the nonfinancial value they bring to communities and investors, beyond merely meeting regulatory expectations. Creating and communicating a bigger bolder vision of legacy beyond life of mine can demonstrate a company’s societal commitment.

Analysis: Top 10 risks and opportunities

1. Environmental, social and governance (ESG)

Many of the ESG risks raised in our survey this year are not new, but what is changing is a growing degree of both complexity and investor attention. We believe this will spur more innovation, more ambitious targets and greater transparency in reporting.

Which are the ESG factors facing the most scrutiny from investors in 2024?*

Which are the ESG factors facing the most scrutiny from investors in 2024 graph

Source: EY mining and metals business risks and opportunities survey data 2024.

*Respondents could choose more than one option

  • Open image description

    A bar chart showing which ESG factors are facing the most scrutiny from investors in 2024, as chosen by the respondents to the survey. Local community impact and tailings and waste management are the top two in this example.

Much of the challenge of ESG is the diversity of risks and opportunities at play. Companies are grappling with issues ranging from water stewardship to ethical supply chains and mine closure — all while trying to navigate what respondents describe as an “alphabet soup” of regulations and with ongoing data integrity challenges. Forty-one percent of miners surveyed said their digital priority was a platform to track and report ESG metrics. To avoid disclosure missteps and make the best use of resources, miners will need a better view of high-quality ESG data, with strong governance and controls in place to ensure appropriate sign-offs and processes.

2. Capital

The race is on to secure the huge investment in mining and metals required to meet growing demand for the minerals and metals critical to the energy transition, including copper, lithium and nickel. Markets are responding, but, as at 31 July 2023, capital raised through debt and equity this year has remained steady (US$178b compared with US$183b in the same period of 2022). It appears, therefore, that capital is moving to new commodity markets rather than solving what is already a significant risk.

Iron and steel, gold, and coal companies continue to attract the most capital, but investment is increasing in nickel and lithium. Exploration budgets are on the rise, with the US, Canada and Australia the preferred destinations, due to their low risk rating.

Exploration budgets by destination 2018 vs. 2022 (US$m)

Exploration budgets by destination 2018 vs. 2022 (US$m) graph

Source: EY analysis of S&P Global Market Intelligence data.

  • Close image description

    A bar graph showing the exploration budgets by destination in 2018 vs. 2022, amounts shown in US$m. Canada is top in this example.

Across the sector, companies continuing capital discipline is reaping rewards — average shareholder returns by the top 30 miners have increased by CAGR of 22% over 2019 to 2022. However, miners will need to balance continued economic returns with more investment in digital, decarbonization and ESG. And as difficult decisions are made, bringing investors along on the journey will be critical.

3. LTO

Expectations of companies are growing, with people demanding they do more for the communities in which they operate. Sixty-four percent of survey respondents said community impact was the top ESG issue facing scrutiny from investors in 2024. Executives say their understanding of sustainability-related matters has increased significantly over the years — but now they realize they cannot tackle all matters at once. The big question is what to prioritize to create real and lasting impact. “License to operate is increasingly challenging, with a broadening range of stakeholders and issues — creating a long-term focus on value beyond life of mine and working with communities to co-develop solutions is key,” says Paul Mitchell, EY Global Mining & Metals Leader.

Actively engaging with communities to first understand, and then deliver, the value they need can help prioritize actions. Anecdotally, the miners with open, close communication with community leaders have more highly engaged employees and fewer strikes.

  • Download our Top 10 business risks and opportunities for mining and metals in 2024

4. Climate change

Climate change is a complex issue for miners: They must both provide minerals for the energy transition, while also reducing greenhouse gas (GHG) emissions.

Net-zero initiatives are progressing across the sector, though some survey respondents admitted challenges in meeting interim targets. Many miners are forming ecosystems and partnerships to develop the technological innovation that can fast-track decarbonization. Government support and the falling cost of renewables are driving growth in renewable energy contracts and investment in solar or wind generation. Many miners are sourcing green electricity to decarbonize Scope 2 GHG emissions but find it hard to get green energy at scale.

Miners must also prepare and provision for the growing impact of climatic events on day-to-day productivity and health and safety. One Canadian miner affected by recent bushfires told us they are considering better preparations for future events: “We are asking, ‘Do we allocate two-day stoppages per annum to cater for climate change?’ It might not be a bad idea going forward.”

5. Digital and innovation

Leaders anticipate a surge of investment in data and technology, driven by demand across the business for digital solutions to reduce costs and improve productivity, safety and ESG outcomes. Survey respondents are excited by the potential of generative AI and are exploring other new technologies, particularly those that can optimize mineral recovery. Many are seeking greater collaboration and partnerships to help speed up transformation and drive innovation in the sector.

Miners are data rich, but many struggle to manage and capture insights from this wealth of information. And many lack an integrated approach to technology implementation, limiting the value it can bring to the business. As one CIO said, “As CIOs, we need to fall in love with the problem, not the solution. We need to put ourselves in the operator’s shoes, to truly understand their real situation, and be able to transform various aspects of their routine.” Technology adoption, and its success, differs between miners, with our research revealing that organizations that champion new technology at an operational level do best.

Source:  Paul Mitchell

EY Global Mining & Metals Leader

11th October, 2023


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