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Three Entrepreneurs in Botswana, Zambia, and Malawi Beat over 1,000 Applicants to Win Prestigious SEED Award

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A Botswanan company which trains farmers to use bees to stop elephants destroying their farms, a Zambian business which promotes sustainable bee-farming, and a Malawian start-up which turns leftovers into cooking gas have won the SEED Awards for Climate Adaptation (SEED Awards). SEED was founded as part of a global partnership between the United Nations Environment Programme (UNEP), the United Nations Development Programme (UNDP) and the International Union for Conservation of Nature (IUCN).

In Botswana, local entrepreneur Mavis Nduchwa founded Kalahari Honey to restore the balance between humans, wildlife, and the environment. The company gives farmers beehives and trains them to create a live fence of bees around their farms to deter local elephant populations. Not only does this reduce conflict between humans and wildlife, it gives farmers an added income as they can sell their bee products back to Kalahari Honey, which markets to customers globally. It also increases pollination through the propagation of bee colonies and the introduction of more indigenous, drought-resistant plant species reverses the ongoing desertification. The company currently works with 500 rural farmers, but under SEED’s expert provision it aims to work with an additional 1,500 farmers over the next year and expand the capacity of its processing factory.

In Zambia, entrepreneur Harry Malichi set up Wuchi Wami to train farmers in sustainable beekeeping. The company packages, brands, markets and distributes local raw and organic honey from its registered cooperative made up of 2,500 farmers. It uses modern beehives made from easy-to-plant pine, rather than the local miombo trees, which are destroyed in traditional beehive production. This type of beekeeping is less labour-intensive, enabling women, youths and orphans to farm honey. Deforestation is further reduced by providing an alternative income source for women and men engaged in charcoal burning. Under SEED’s guidance, the enterprise plans to increase the number of smallholder farmers in its cooperative to 10,000 in the coming year.

EcoGen, founded by Clement Kandodo in Malawi in 2019, provides advanced biowaste bins and biodigesters for households to recycle their leftover food and agricultural waste, turning it into biogas for cooking and organic fertiliser. The provision of renewable cooking gas, especially to rural customers relying on wood fuel, takes the pressure off local forest resources. Organic fertiliser increases yields and incomes of smallholder farmers, enhancing their climate resilience. SEED will help EcoGen scale its services to provide 4,000 households and institutions with access to renewable biogas energy by 2023.

Yves Wantens, General Representative of the Government of Flanders in the United States commented: “When it comes to the impacts of climate change, countries like Malawi, Zambia and Botswana are on the front line. They are the ones who will feel the effects of a rise in global temperature most acutely. That is why we are so proud to support the SEED Awards, which recognise and scale the impact of eco-inclusive enterprises across these local communities. As we emerge from the COVID-19 pandemic, MSMEs are at the forefront of enabling green recovery and delivering on SDGs, for the good of the wider community and the planet.” The Government of Flanders is the primary sponsor of the SEED Climate Adaptation Awards.

The SEED Awards ceremony, taking place today at the UN’s High-level Political Forum on Sustainable Development (HLPF), will also see SEED present its ‘Green Recovery Snapshot’ findings, which calls on governments, donors, and financial providers to increase targeted support for MSMEs as they stimulate economic growth in a post-COVID world. MSMEs are responsible for creating seven out of ten jobs across emerging markets, and green and social MSMEs deliver environmental and social impact through their activities, products, and services, making them essential actors in achieving a green recovery.

Winners of the SEED Awards will be awarded matching grants of between EUR 10,000 – 15,000 and will receive tailored one-to-one advisory services for up to a year to scale their operations, as part of the renowned SEED Accelerator programme. In line with the principle of ‘awarding the best and moving the rest’, 39 runners-up will also be supported through the SEED Catalyser programme, to refine their business models and optimise their impacts while advancing their investment readiness.

SEED’s Director of Operations, Rainer Agster, added: The calibre of SEED Award entries this year was outstanding, and we extend our congratulations to all nine winners and 39 runners-up. We hope the enterprises identified and promoted by the SEED Awards will be a source of inspiration for aspiring entrepreneurs across emerging economies. Through the SEED Awards, we will support 48 enterprises in 2021, and through our other programmes, several hundreds more. For each of those, however, there are thousands more eco-inclusive enterprises furthering SDGs which can be amplified with the right support. Therefore, we strongly encourage policy makers and financial actors to take a closer look at these eco-inclusive businesses and start or scale support programmes for them.”

Of the 2021 SEED Awards cohort, 69 per cent of enterprise leaders are 18-35 years-old and 52 per cent are female-led enterprises. Since their inception in 2005, the SEED Awards have awarded 311 enterprises in 40 countries and have facilitated the disbursement of over EUR 1 million in grants. Each individual SEED enterprise has saved an average of 7,300 tonnes of CO2, generated more than 9,399 kWh of renewable energy, and created 28.4 jobs, out of which 32 per cent are offered to people at the Bottom of the Pyramid (BoP).

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Manufacturers Grapple with Losses Amid Economic Strain

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In the first three months of 2024, some of Nigeria’s major manufacturers found themselves navigating treacherous waters as financial losses mounted amidst economic turbulence.

According to data compiled by BusinessDay, rising interest rates and a further devaluation of the naira contributed to the woes of these industrial giants.

The latest financial reports from 13 listed consumer goods firms paint a grim picture, with seven of them collectively recording a staggering loss of N388.6 billion in Q1.

Names such as International Breweries Plc, Cadbury Nigeria Plc, and Nigerian Breweries Plc were among those that bore the brunt of the downturn.

On the flip side, a few companies managed to buck the trend. BUA Foods Plc, Unilever Nigeria Plc, and Dangote Cement Plc reported a combined profit of N171.9 billion, showcasing resilience amidst the challenging economic landscape.

While the overall revenue of these manufacturers saw an impressive 79 percent increase to N2.27 trillion, it was overshadowed by soaring financing costs.

In Q1 alone, finance costs skyrocketed to N616.5 billion from N65.8 billion in the same period in 2023.

Analysts attribute these mounting losses to the confluence of factors, including the devaluation of the naira and escalating interest rates. With the naira experiencing nearly a 30 percent devaluation this year alone, coupled with a 40 percent devaluation last June, companies faced intensified pressure on their margins.

Moreover, the Central Bank of Nigeria’s decision to raise the monetary policy rate to 24.75 percent in March further exacerbated the situation.

This marked the second consecutive increase, following a 400 basis points hike in February, aimed at curbing inflation.

The adverse effects of these economic headwinds were felt across various sectors. Nestle reported the highest finance cost of N218.8 billion, followed closely by Dangote Cement and Dangote Sugar Refinery.

Commenting on the challenging business environment, Uaboi Agbebaku, the company secretary at Nigerian Breweries, highlighted how increased interest rates and FX volatility led to a staggering 391 percent rise in net losses compared to the same quarter in 2023.

Looking ahead, manufacturers remain cautiously optimistic but vigilant. Thabo Mabe, managing director at NASCON, emphasized the importance of navigating the turbulent waters while executing robust strategies to ensure sustained growth.

As Nigeria grapples with economic uncertainties, the resilience of its manufacturing sector will play a pivotal role in shaping the nation’s economic trajectory.

However, concerted efforts from both the public and private sectors will be needed to steer the industry towards stability and growth.

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Shell Nigeria’s $1.09 Billion Tax and Royalty Payments Power Economic Growth

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Shell Petroleum Development Company of Nigeria Limited (SPDC) and Shell Nigeria Exploration and Production Company Limited (SNEPCo) paid a sum of $1.09 billion in corporate taxes and royalties to the Nigerian government in 2023.

This figure, revealed in the recently published 2023 Shell Briefing Notes, shows Shell’s commitment to supporting Nigeria’s development through substantial financial contributions.

According to the briefing notes, SPDC disbursed $442 million in taxes and royalties, while SNEPCo remitted $649 million.

Despite a decrease from the $1.36 billion paid in 2022, these payments highlight Shell’s continued role as a key contributor to Nigeria’s revenue generation efforts.

Osagie Okunbor, Managing Director and Country Chair of Shell Companies in Nigeria said “Shell companies in Nigeria will continue to contribute to the country’s economic growth through the revenue we generate and the employment opportunities we create by supporting the development of local businesses.”

The briefing notes also provided insights into Shell’s ongoing operations and initiatives in Nigeria. The company’s investments span more than six decades, with a focus on powering progress and promoting socio-economic development.

Through collaborations with stakeholders and communities, Shell aims to provide cost-effective and cleaner energy solutions while fostering sustainable growth.

“It is important to emphasize that Shell is not leaving Nigeria and will remain a major partner of the country’s energy sector through its deep-water and integrated gas businesses,” Okunbor reiterated, underscoring Shell’s long-term commitment to Nigeria’s energy landscape.

Shell’s contributions extend beyond financial payments, encompassing initiatives aimed at enhancing local capacity building, fostering job creation, and promoting social development. By prioritizing safe operations and environmental stewardship, Shell seeks to align its business objectives with Nigeria’s sustainable development goals.

As Nigeria navigates economic challenges and seeks avenues for growth, Shell’s substantial tax and royalty payments serve as a testament to the company’s enduring partnership with the Nigerian government and its commitment to driving economic progress.

Through continued collaboration and investment, Shell endeavors to play a pivotal role in Nigeria’s journey towards prosperity and sustainability.

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Federal Government Sets Two-Month Deadline for PoS Operators to Register with CAC

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The Federal Government, through the Corporate Affairs Commission (CAC), has issued a stringent directive mandating Point of Sales (PoS) operators to register their agents, merchants, and individuals within a two-month timeframe.

The move comes as part of efforts to comply with legal requirements and align with the directives of the Central Bank of Nigeria (CBN).

The decision was reached during a crucial meeting between representatives of the fintech industry and the Registrar-General of the CAC, Hussaini Ishaq Magaji, held in Abuja on Monday.

With over 1.9 million PoS terminals deployed nationwide by merchants and individuals, the registration requirement aims to bolster consumer protection measures and fortify the integrity of the financial ecosystem.

According to the Registrar-General, the initiative is in line with Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020, as well as the 2013 CBN guidelines on agent banking.

Speaking on the matter, Hussaini Ishaq Magaji emphasized that the registration deadline, set for July 7, 2024, is not intended to target specific groups or individuals but rather serves as a proactive measure to safeguard businesses and ensure regulatory compliance across the board.

In a statement released by the commission, it was highlighted that the collaboration between the Corporate Affairs Commission and fintech companies underscores a mutual commitment to upholding industry standards and fostering a conducive environment for financial transactions.

The decision to implement this registration requirement follows recent concerns over fraudulent activities involving PoS terminals, which accounted for 26.37% of fraud incidents in 2023, according to a report by the Nigeria Inter-Bank Settlement System Plc (NIBSS).

The directive from the Federal Government comes amidst a broader crackdown on financial irregularities, including the prohibition of cryptocurrency trading and heightened scrutiny of fintech operations by regulatory authorities.

Last week, major fintech firms were instructed by the CBN to halt onboarding new customers and to warn against cryptocurrency trading on their platforms.

The move by the CBN is part of a larger effort to enhance regulatory oversight and combat illicit financial activities, including money laundering and terrorism financing.

Prior to this directive, the Economic and Financial Crimes Commission (EFCC) had obtained court orders to freeze numerous bank accounts allegedly involved in illegal foreign exchange transactions.

In response to the directive, fintech firms have pledged to collaborate with regulatory authorities to ensure compliance with the registration requirement.

However, they have also stressed the importance of comprehensive sensitization efforts to educate stakeholders about the implications of non-compliance and the benefits of regulatory adherence.

As the deadline approaches, PoS operators are expected to expedite the registration process and ensure that all agents, merchants, and individuals are duly registered with the Corporate Affairs Commission, demonstrating a collective commitment to maintaining the integrity of Nigeria’s financial system.

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