Business
AfDB supports Zimbabwe’s economy through ZimFund
HARARE – The Zimbabwe Multi-Donor Trust Fund (ZimFund) is a short to medium term infrastructure development programme which supports Zimbabwe’s economic recovery by improving the quality of life of ordinary citizens, particularly the poor.
It is a major collaborative effort between members of the international donor community (Australia, Denmark, Germany, Norway, Sweden, Switzerland and the United Kingdom),the Government of Zimbabwe, and the African Development Bank Group designed to rehabilitate infrastructure and restore basic services in water and sanitation initially in six municipalities:(Harare, Chitungwiza, Chegutu, Kwekwe, Masvingo and Mutare) and energy throughout the country. The USD125 million Fund is administered by the African Development Bank, while Zimbabwe’s Ministry of Finance and Economic Developmentis the nominal recipient of ZimFund grants.
Through the Urgent Water Supply and Sanitation Rehabilitation Project (UWSSRP) and the Emergency Power Infrastructure Rehabilitation Project (EPIRP), ZimFund provides financial and technical support to activities that are consistent with the recovery priorities of the Government, using a pool of donor resources that are mobilized on the basis of a common understanding of the country’s recovery needs.
Since the grants were approved, the Government of Zimbabwe has procured the services of two implementing entities, Lahmeyer of Germany and PB Power of South Africa, to oversee the management of these national programmes in water &sanitation as well as energy sectors, respectively. Through a competitive bidding process, Works,Goods and Supply contracts for the water and sanitation project were signed with an Indian firm Technofab-Gammon JV and Com.Int.SpA, from Italy. Two sludge removal works were awarded to local contractors, R. Davis and Drawcard.Meanwhile, two smaller procurement contracts for the supply of computer hardware and software as well as capacity building tools will be tendered out soon.Contracts for the energy project have been signed with CHINT Electric Company Ltd ofChina, Angelique International Limited and The Indure (Pvt) Ltd of India. Four Consultancy services contracts have also been concluded with various consulting firms from Germany, Denmark, USA, Australia and Zimbabwe.
The goal of the Water Supply and Sanitation Rehabilitation Project is to improve the health and social wellbeing of residents in the above-mentioned six municipalities through an equitable provision of these services. ZimFund’s intervention will enable the provision of urgently needed support for the restoration and stabilisation of water supply and sanitation services, by undertaking emergency rehabilitation of the systems and reducing pollution of the existing water sources.
In Harare, water treatment works at Morton Jaffray,Prince Edward, and Firle Waste will be rehabilitated, as well as the Crowborough Wastewater Treatment Works and the Little Marimba Trunk Sewer. In Chitungwiza, works will focus on the Zengeza Sewage Treatment Works, while Chegutu will see the rehabilitation of the Clifton Dam Pump Station, the Chegutu Water Treatment Works, the Sewage Pump Stations and Sewage Treatment Works.In Kwekwe,the Dutchman’s Pool Water Treatment Works, the Woodlands, East and West Sewage Pump Stations and the Northern Sewage Treatment Works will be rehabilitated. Masvingo will see the rehabilitation of the Bushmead Water Treatment Works, the Sewage Pump Station No.1, the Rujeko Sewage Pump Station and the rehabilitation of the Masvingo Sewage Treatment Works. Works in Mutarewill focus on rehabilitating the existing Odzani Water Treatment Works, completing the partly constructed Chikanga Reservoir,the partly constructed Mutare Outfall Sewer and the rehabilitation of the existing Gimboki Sewage Treatment Works.
Most of the contracts for Works and the Supply of Goods for the ZimFund water and sanitation project are expected to be completed by the end of first quarterof 2014.
The Power Infrastructure Rehabilitation Projectfocuses on rehabilitating the Ash Plant at the Hwange Power Station and several sub-transmission and distribution facilities in Atlanta (Murehwa), Criterion &Mpopoma(Bulawayo), Gweru, Kadoma, Marvel (Bulawayo), Mazowe, Norton, Pomona (Harare), Redcliff, Sherwood (Kwekwe), Victoria Falls, ZISCO (Redcliff), Zvishavane and various electricity distribution facilities throughout the country.
This first phase of the Power project has seven components. To date, three Works contracts,valued at US$34.54 million have been awarded. These cover the rehabilitation of infrastructure at generation (namely the Hwange Power Station), transmission and distribution networks, Thesecontracts are at various stages of execution. Three Consultancy and Project Management Services contracts, to the tune of US$2.68 million, have also been awarded and these are also at various stages of implementation. A contract for Environmental Monitoring and Capacity Building at Hwange Power Station as well as the Environmental Audit are currentlybeing carried out.. Works are expected to be completed by the second quarter of 2014.
According to the ZimFund Manager, Mr Emmanuel Nzabanita, the expected results of the power project will be the increased reliability, quality and availability of water; restored wastewater treatment capacity and the reduced incidence of cholera and other water related diseases. He further underscored that by increasing the electricity supply to the City of Harare water supply treatment plants, as well as other urban water supply systems, ZimFund’s interventions will eventually reduce incidences of cholera and other water related diseases. Hence there arestrategic linkages between the two ZimFundinterventions.Ultimately, the power project will improve environmental management at the Hwange Power Station, enhancing the reliability of power transmission and improving the distribution infrastructure in the country. It will also help to reduce the greenhouse gas emissions that currently result from extensive tree felling for firewood, addressingsystem inefficiencies and frequent power failures in urban households. Through this project,power transmission and distribution losses will be reduced due to rehabilitated and upgraded equipment, hence system efficiency will increase.
The second phases of the ZimFund Water and Sanitation Project (USD35.99 million) and the Energy Project (USD32.94 million) were approved by the donors in July 2013 and implementation will commence in the 4th quarter of 2013.
The need for stronger regional collaboration, government-private sector synergy, and innovative market solutions to unlock Africa’s economic potential has been brought to the fore.
Group CEO of the Nigerian Exchange Group Plc (NGX Group), Temi Popoola, shed light on the transformative potential of Africa’s capital markets at the launch of the Ethiopian Securities Exchange (ESX).
The NGX Group’s strategic investment in ESX underscores its leadership in advancing Africa’s capital market infrastructure. “The launch of ESX represents a pivotal moment for Ethiopia and the broader African financial landscape,” Popoola stated. “ESX will serve as a crucial mechanism for capital formation and market liquidity, driving sustainable economic growth.”
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Expounding on NGX Group’s investment rationale, Popoola highlighted Ethiopia’s immense market potential and the shared vision of fostering economic growth through innovation. “Our partnership transcends traditional investment parameters,” he explained. “It is about ensuring that ESX evolves into a key player in Africa’s financial ecosystem, enabling cross-border investments and setting benchmarks for market development.”
Popoola also drew parallels with global success stories like India, which has leveraged its capital markets to achieve significant economic transformation. He emphasized the importance of responsible market opening to attract local and continental capital. “By following this path, Ethiopia can become a financial hub in Africa,” he remarked.
Prime Minister Abiy Ahmed lauded the launch of ESX as a transformative milestone in the country’s journey toward economic modernization. “Today, we have officially rung the bell to launch the Ethiopian Securities Exchange, our nation’s first stock exchange,” the Prime Minister announced on X. “This is a call to global investors: Ethiopia offers immense potential, a fast-growing economy, and a clear trajectory toward shared prosperity.”
CEO of the Ethiopian Securities Exchange, Tilahun Esmael Kassahun, expressed confidence in the partnership with NGX Group. “We are pleased to welcome NGX Group as a strategic partner, building upon the existing support we continue to receive from them,” he said. Kassahun also emphasized the value of NGX Group’s expertise in shaping ESX’s growth and success.
Drawing from NGX Group’s six decades of experience, Popoola shared insights on diversifying financial instruments and expanding access to investment opportunities. “With the right mix of innovation, policy support, and regional collaboration, Ethiopia’s capital market can play a transformative role in driving economic development and establish itself as a leader in Africa’s financial ecosystem,” he concluded.
With the ESX poised to redefine Ethiopia’s financial landscape, NGX Group’s involvement highlights the critical role of partnerships and shared expertise in advancing Africa’s economic narrative.
The Office of the Auditor-General of the Federation has uncovered financial irregularities amounting to ₦514 billion in the 2021 operations of the Nigerian National Petroleum Company Limited (NNPC Ltd).
The revelations were contained in a comprehensive audit report highlighting non-compliance and internal control weaknesses within Ministries, Departments, and Agencies (MDAs) during the 2021 financial year.
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Breakdown of Infractions
The audit detailed four major financial discrepancies within NNPCL:
“Irregular Deductions: A total of ₦343.64 billion was deducted from domestic crude oil sales at source without proper documentation.
“Sinking Fund Deposits: ₦83.66 billion, categorized as miscellaneous income, was retained in a sinking fund account.
“Unauthorised Refinery Deductions: ₦82.95 billion was deducted from federation revenue purportedly for refinery rehabilitation.
“Unsubstantiated Payments: ₦3.75 billion was flagged for transactions related to petrol sales that lacked proper verification.
The Auditor-General’s report stated that these financial activities violated the 1999 Constitution and the Financial Regulations Act of 2009, underscoring significant lapses in compliance with statutory guidelines.
According to the report, NNPCL generated ₦484.73 billion from domestic crude oil sales in March and May 2021.
However, ₦343.64 billion was deducted for various purposes, including “Value Shortfall,” “Strategic Stock Holding Cost,” and “Pipeline Maintenance.”
The deductions were made unilaterally by NNPCL without adequate documentation or justification.
Additionally, the report flagged ₦50 billion of the net payable amount for May 2021 as unaccounted for, creating a significant gap in the federation’s revenue.
“Audit observed from the review of NNPC SAP payment record for March and May 2021 payments that the sum of ₦484.73bn was the gross amount generated for the sale of domestic crude for the months of March and May 2021.
“The sum of ₦343.64bn from the gross amount was unilaterally deducted from the gross domestic crude sales as NNPC Value shortfall, Strategic Stock Holding Cost, Crude Oil and Products Pipeline Losses, as well as the pipelines maintenance and management costs.
“The details of each of the cost components deducted were not provided for audit review. Hence, the reasons for the deductions could not be justified by the management.”
On the unremitted ₦50 billion from May 2021, the report noted: “In the month of May, the net payable that could have been remitted ought to have been ₦127.075bn, but only the sum of ₦77.075bn was remitted, leaving an unremitted balance of N50bn to the Federation Account, which has remained unaccounted for.”
The report attributed these anomalies to weaknesses in NNPCL’s internal control systems, warning of the risks they pose to public funds.
It read, “The above anomalies could be attributed to weaknesses in the internal control system at NNPC, now NNPC Ltd. This is a potential loss of Federation revenue, diversion of public funds, or misapplication or misappropriation of funds.”
The success of the maiden edition of the Lagos Shopping Festival (LSF), Africa’s first 72-hour non-stop commerce and entertainment event has been credited to the Governor of Lagos State, Babajide Sanwo-Olu.
This is the view of Managing Director/Chief Strategist of Chain Reactions Africa Ltd, Israel Jaiye Opayemi, one of the main organisers of the event.
According to Opayemi, though Chain Reactions Africa conceptualised the event, the festival could be rightly described as the Governor’s baby and owes its success to his leadership. “Firstly, the Lagos Shopping Festival could not have come to fruition if the Governor did not buy into our audacious plan when we first presented the idea to him during the Covid-19 pandemic in 2020. Secondly, it was the Governor’s exemplary leadership of the project as its Chief Marketing Officer which attracted the buy-in of key sponsors like Zenith Bank, Tolaram Group, First Bank Plc, and Guinness Nigeria Plc,” Opayemi revealed.
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While the duo of Zenith Bank and First Bank provided their bank on wheel platforms for buyers at the Lagos Shopping Festival, they also supported the Vendors with special Point of Sale Machines with which to process payments from buyers. The banks were also seen marketing their diverse banking products to guests within the shopping arena.
For Tolaram, it was a time to support the citizens and give back to society. Guests at the Lagos Shopping Festival were freely given some of the products of the group such as PowerOil, Indomie and Kellogg’s packaged into goodie bags and given out to prospective buyers at the shopping arena. The Children’s Arena was however activated by Indomie with the children entertained by Santa Claus within a well-equipped arena manned by the Indomie Brands team and the Lagos State Safety Marshalls. The children were daily treated to free Indomie meals daily and given various gifts to go home with.
On its part, Guinness Nigeria came through as the real life of the Nigerian party by organizing product sampling activation for the teeming guests at the festival using brands such as Singleton, Johnnie Walker, Ciroc, Don Royale and Captain Morgan to deliver pleasant experiences to guests aside from Guinness and Malta Guinness.
While unveiling the identity of the festival last month, Governor Babajide Sanwo-Olu had thanked the management of Zenith Bank Plc, Tolaram Africa Group, Guinness Nigeria Plc and First Bank of Nigeria for supporting the idea of a Lagos Shopping Festival, describing it as a value addition on the state’s tourism calendar and the overall efforts to grow the State’s GDP. The Governor further said, “I must specially acknowledge your pioneering sponsorship role. It is easy for a corporate sponsor to jump on the sponsorship band wagon of an already established festival and fund it. But you are supporting the maiden edition of this Lagos Shopping Festival with us. The competition is watching you now. Do not build this brand with us and yield the space for the competition to take over. I do hope you would all commit long term to this brilliant initiative.”
On his part, Girish Sharma, CEO Guinness Nigeria Plc, expressed enthusiasm for the initiative. “Lagos is the commercial heartbeat of Nigeria and Africa’s entertainment capital, and the Lagos Shopping Festival captures its essence. We see opportunities in this initiative because it is a creative fusion of commerce and entertainment. This partnership reflects our dedication to fostering economic opportunities and support the nation’s vibrant entertainment industry.”
A first-of-its-kind, the festival was a convergence of commerce and entertainment, bringing together buyers and sellers in the MSME ecosystem, and hordes of fun-seekers who were entertained with thrilling performances by A-list entertainers, including Adekunle Gold, Wande Coal, Teni, Young Jonn, BNXN, Ayo Maff, SB Live and EmmaOMG. The list also included some of Nigeria’s most sought after DJs such as DJ Neptune, DJ YK Mule, DJ Baddo while Gbenga Adeyinka the 1st and Larry J dished out rib-cracking comedy performances.
Held from 23rd to 25th Day of December 2024, at the iconic Mobolaji Johnson Arena, Onikan Stadium, Lagos, the Lagos Shopping Festival saw thousands of fans throng the main venue and select Lagos malls during the three-day period to bag the latest bargains from local and top global brands.
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