News

Africa must cut reliance on food imports, says Nigerian billionaire

Published

1 year ago

July 27, 2022

Abidjan, Ivory Coast (CNN)Food prices have been rising around the world, driven first by the Covid pandemic and poor harvests, and made worse by the conflict in Ukraine, which has hit exports of both wheat and fertilizer.
Even with a new deal that would allow grain exports from Ukrainian Black Sea ports, the impact of elevated prices could still be severe in Africa, which imports most of its food, and where the IMF forecasts inflation could reach as high as 12.2% this year.
Nigerian billionaire Abdul Samad Rabiu says it’s time for African countries to work together to create a food value chain across the continent, and produce more goods for domestic consumption.

Rabiu is the CEO of BUA Group, a conglomerate in food processing, infrastructure, manufacturing and mining. His company has made investments across the continent to cut its reliance on imports from Europe and Asia.

He spoke with CNN’s Eleni Giokos last month at the Africa CEO Forum in Abidjan, Ivory Coast.
High inflation, food insecurity, energy prices: What are you going to do to solve some of these issues?
Rabiu: Part of the problem is that we import 80% of what we consume. For example, Africa imported over 55 million tons of wheat last year, and wheat is one of the commodities that has really been hit hard in terms of high prices. Since the Ukrainian-Russian (conflict) started, we have seen a situation where the price (of wheat) got from $250 to almost $600 per ton. And you know Africa relies heavily on Russian and Ukrainian wheat.

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Meet: Abdulsamad Rabiu Founder, Bua Group

Meet: Abdulsamad Rabiu Founder, Bua Group 00:30
So how is your input being affected?
Rabiu: If you import and the price is double, what do you do? You have to increase the prices. And a lot of people cannot really afford that. So we are seeing a decrease in terms of production, processing and consumption, and that is a big issue. That is why I keep saying that we have to look inwards, do as much as we can to add value to what we have. We have to increase (our) production for the food security of the continent.
You have been in the pasta business, for example. Why haven’t you already gotten into farming? I know wheat is difficult to grow.
Rabiu: Wheat is difficult to grow but we are also into sugar and we’re building the most advanced sugar plantation in Nigeria. It’s a 20,000-hectare, four-in-one, fully integrated sugar plantation with sugar mill, sugar refinery, ethanol and power plant. We decided to do that because we realized we were spending a lot of money to import raw sugar and that is something that could be easily planted and produced in Nigeria. Our inputs as far as raw sugar is concerned will come down drastically.
Now for the hard part, says Secretary General of African Continental Free Trade Area
Now for the hard part, says Secretary General of African Continental Free Trade Area
The African Continental Free Trade Area went live (in 2021). Have you seen a real impact on your business?
Rabiu: The free trade area is an amazing arrangement. We all need to come together to enjoy the benefits. Of course, we also have challenges as far as infrastructure is concerned, and for the agreement to succeed, you need to fix your infrastructure space, especially in areas like ports.

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You still find that challenging?
Rabiu: I give you an example: it’s more expensive to ship goods from Nigeria to, say, Lomè (in Togo, West Africa) than from Nigeria to Brazil. And that’s because we have the vessels without the ports. So those issues are there and we need to fix our infrastructure.

Related Topics:Abdul Samad Rabiu Abidjan at the Africa CEO Forum in Abidjan Featured founder and chairman of BUA Group Ivory Coast

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Ghana is looking to supply Nigeria with its electricity needs following power grid shutdown

Published

5 hours ago

September 23, 2023

Seun Okerayi

LAGOS- With the goal of achieving “100% universal energy access” and maybe exporting electricity to its neighbor, Nigeria, Ghana has steadily been developing its power sector.

During his presentation in Lagos on the second day of the Nigeria Energy Leadership Summit, Mr. Hanson Monney, the Head of the Generation and Transmission Unit at the Ghanaian Ministry of Energy, made this point, emphasizing that via effective policy development and implementation, Ghana has already attained an impressive 80% to 85% universal energy access inside its boundaries.

“So, we are working on all these things to make sure that the power system of Ghana continues to be as good as it is or even better, and then, maybe, we can be exporting more to our big brothers in Nigeria when the grid is finally settled,” Mr. Hanson Monney said

This declaration follows the second national power grid breakdown in Africa’s most populous country and the continent’s top oil producer, Nigeria which resulted in a total blackout of homes and businesses.

In contrast, Ghana is aggressively pursuing a variety of energy sources, including grid electricity, mini-grids, and solar-dominated renewable energy, to attain “Universal access to energy by 2024” as instructed by the country’s President.

Monney agreed that the geographic limitations make it difficult to provide everyone in Ghana with access to electricity, particularly on isolated islands, riverbanks, or lakeside villages. In response to this, he stated,

“So, now, we are trying to scale our renewable energy access, and that is how we have planned in 2022 to scale up our renewable energy program,” he said.

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Financial sustainability is one of the biggest problems facing Ghana’s power sector, as the country struggles with growing debts and the purchase of surplus capacity.

“There is so much debt that the government has to shore up to make sure that the system is afloat because we have procured a lot of excess capacity, which comes with attendant costs. So, these financial challenges require some policy actions to eliminate legacy debts,” Mooney stated.

Monney stressed the significance of lowering electricity prices, particularly for enterprises, since high electricity bills are a major issue in Ghana. “We saw that in Ghana historically. These industries have been subsidizing the residential sector, and it should be the other way around. Industries should remain viable so that businesses can thrive,” Mooney stated.

Crime

EFCC declares Delta brothers wanted over alleged N330m fraud

Published

1 day ago

September 22, 2023

Seun Okerayi

The Economic and Financial Crimes Commission has declared two siblings from Delta State wanted for alleged fraud of N330 million.

This was contained in a statement issued by the EFCC spokesperson, Wilson Uwujaren, copies of which were made available to journalists in Warri, Delta State on Friday.

The anti-graft agency named 55-year-old Faith Onoja and 44-year-old Emmanuel Onoja, both from Ughelli South Local Government Area of Delta State, as being declared wanted by the EFCC.

According to the commission, Faith’s last known address is “Close to Celestial Church, Ekrovie new layout, old Egini road, Orhuehorun, Delta State” while Emmanuel’s last known address is “No 6. Jasmison Street, NPDC/ND Western Estate, Warri, Delta State”.

The statement urged that “anybody with useful information as to their whereabouts should contact the commission” in its offices nationwide.

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Education

Gov. Kefas Grants 50% Tuition Cut for Final Year Nursing Students

Published

2 days ago

September 21, 2023

Seun Okerayi

In a move that underscores the commitment of the Taraba State Government to prioritize education and make it more accessible, the Taraba state Governor, Dr. Agbu Kefas has approved a significant reduction in tuition fees for final year students at the College of Nursing and Midwifery Jalingo.

Effective immediately, all final year students pursuing their nursing and midwifery diplomas will benefit from a 50% reduction in tuition fees. This decision aims at alleviating the financial burden on students and their families, ensuring that quality education remains affordable and accessible to all.

Dr.Agbu Kefas stated, “Education is the bedrock of our society, and we are dedicated to providing opportunities for our students to excel without the undue burden of high tuition costs. We believe that this reduction will not only support our students but also contribute to the development of the healthcare sector in our state.”

The Taraba State Government remains committed to enhancing the quality of education and healthcare services in the state. This reduction in tuition fees is a significant step towards achieving these goals.