Africa Finance Corporation (AFC) which was established in 2007 to bridge Africa’s infrastructure investment gap is lobbying Ethiopia for membership.
“Ethiopia is under policy reform to liberalize the economy for privatization,” Sanjeev Gupta Executive Director of AFC told Capital.
The delegation held fruitful talks with Ahmed Shide the Minister of Finance, Sileshi Bekele, Minister of Water Irrigation and Electricity, Yinager Dessie, Governor of the Central Bank and Abebe Abebayehu of the Investment Commission.
According to Gupta, AFC wants to develop the power sector in Ethiopia with a special emphasis on industrial parks and other infrastructure development.
Owned by African governments, African banks, Private equity funds, and Insurance groups, AFC, has operated in twenty nine African countries so far including Egypt, Morocco and Cote d’ivoire in financing power, road and mining projects.
“The Zero membership cost makes AFC unique and encourages countries to join and invest as well,” Gupta said.
Africa Finance Corporation, a multilateral development finance institution, provides various financial services in Africa. It offers project financing services, such as debt, equity, and mezzanine financing; project development and management services; trade and equipment finance services; technical and financial advisory services; early stage risk capital; corporate finance; and debt/equity syndication services, as well as structured products.
“AFC is delighted by the discussion with Ethiopian officials and hopes Ethiopia will join very soon,” Gupta said.
Africa Finance Corporation lobbies for Ethiopia for membership
US-Africa trade, investment forum sees opportunity
The United States Mission to the African Union hosted the US-Africa Trade and Investment Forum on the sidelines of the African Union (AU) Summit in Addis Ababa last week.
The high level event, supported private sector engagement in the African Continental Free Trade Area (AfCFTA) and worked to drive US-Africa trade, investment, and business engagement.
“The long history of trade ties between the United States and Africa pushed the US to further deepen trade with Africa,” Mary Beth Leonard, US Ambassador to the African Union said.
She added that AfCFTA is a real game changer in how international and US business looks in Africa because it has created significant opportunities.
President and CEO of the Corporate Council on Africa, Florizelle Liser described the motivation to foster a better trade relationship with Africa.
“We have a stake in supporting African regional integration, in creating larger markets and businesses, allowing them to take advantage of economies of scale and drawing Africa into regional and global value chains.”
“There are many positive things happening in Ethiopia and the export of products to the US market is an example to what Africa can do and is doing across the continent,” she added.
The AU Trade and Industry Commissioner, Albert Muchanga said work is underway to develop regional value and supply chains and creating a more stable and predictable policy framework to guide business decisions and strategies on investing and trading in Africa.
He pointed out that work is advancing on liberalization of trade in goods and services as well as establishment of a payment and settlement platform that will give operational content to the agreement coming into force.
“Through the African Continental Free Trade Area, we are offering large economies of scale and scope to the private sector,” he said, adding that the content’s trade liberalization and continental integration gives incentives to invest in larger scale endeavors for a longer time.
The Forum – linked to the AU and the broader African continental and global trade agenda – will complement the AU Summit by engaging the private sector – both in Africa and the US– and will fill an important void.
Currently, the AU runs an African Continental Free Trade Business Forum for African companies. Some forty-nine countries have signed the African Continental Free Trade Agreement, and 18 of the 22 needed to bring it into force have already ratified it.
Report calls for private investment, enforcement to improve African health
According to a report entitled: ‘Healthcare and Economic Growth in Africa’ supported by Aliko Dangote Foundation, GDC Health and the Economic Commission for Africa, the continent has a health financing gap of at least USD 66 billion per year based on the threshold of 5 percent of GDP for government expenditure, while the actual need is USD 114 billion.
In response to this calls are being made for the private sector to come to the rescue and help improve healthcare in Africa. 
“On average countries need to increase public spending on health by 2.5 times. With current trends and with numerous competing demands for public resources, governments are unlikely to be able to meet the health financing requirements,” the report said.
The report launch was attended by Prime Minster Abiy Ahmed (PhD), Ismail Omar Guelleh, President of Djibouti, Mokgweetsi Masisi, President of Botswana, Vera Songwe, the Executive Secretary of the Economic Commission for Africa, Aig Imoukuede, Co-chairman GBC Health, Michel Sidibe, Executive Director of UNAIDS, Halima Dangote, daughter of Aliko Dangote, and Didier Drogba. At the event Vera Songwe called for an improved Public Private Partnership (PPP) to finance healthcare in Africa.
The report calls for the private sector to leverage the African Continental Free Trade Area to invest in many under-invested sectors at the continental level.
“For instance Africa manufactures less than 2 percent of the medicines it consumes. Imports cater for over 70 percent of the pharmaceutical markets in Africa worth about USD 14.5 billion,” it added.
In view of the huge financing gap and the rising disease burden in Africa, it is clear that governments cannot meet all health costs on their own. The private sector has an important role to play in helping countries in Africa to achieve significant improvements in health outcomes, the report recommended.
Although there there is not data on specific nations, in Africa health related expenses in 2015 were 2 percent of the total share. “In 2015 approximately USD 9 trillion was spent globally on health, with Africa representing just two percent of the total expenditure, not withstanding it represents 16 percent of the global population and 26 percent of global diseases burden,” it said.
Rising government debt and illicit financial flows place an additional burden on healthcare.
“Debt servicing constrains governments’ availability of discretionary resources and limits the fiscal space,” the report reads.
There are 20 countries with an average burden more than 60 percent of GDP and in six countries it exceeds 100 percent.
“In 22 countries the average annual value of illicit financial flows far exceeds the health financing gap. This suggests that by taking measures to reduce these illicit flows, governments could fund healthcare and other social sectors,” it added.
According to the report, during 2003-2012, Africa is estimated to have lost about USD 300-USD 600 billion in capital flight resulting from illicit outflows. In fact, during 2003-2012 illicit flows from Ethiopia were USD 2.207 billion, which is 87 percent of government expenditure for health, or USD 2.5 billion.
Private sector health investment has its rewards, health business opportunities should be worth USD 259 billion by the year 2030, potentially creating 16 million jobs in Africa. This is because health businesses like the pharmaceutical industry, medical education and digital technology t are currently under invested, according to the report
Experts like Dr. Belay Begashaw, Executive Director of SDG Africa Center, a panelist at the forum, said that focus on research and technology is another crucial investment opportunity.
Tuesday’s forum also witnessed the launch of the African Business Coalition for Health in Africa, a coalition of business leaders and philanthropists committed to a healthier business space and the environment.
Alliance halts bus service
Alliance Transport Services S.C. has stopped providing public transportation services for commuters starting from February 5, 2019.
The Board Chairman of Alliance Transport Service Adil Abdela told journalists that the disagreement with Commercial Bank of Ethiopia (CBE) about the debt payment system for 100 buses that were purchased in 2015 was the reason they stopped.
The buses were purchased as part of a government initiative to solve the Addis Ababa City transport service problem. However, when the bank wanted the debt paid before the buses began operating it created difficulties. 
“The tariff set by the government has affected the company as our service is not determined by the market price,” Adil added.
The 125 Alliance buses transport ten thousand passengers, mostly in Addis and its suburbs like Sebeta, Holeta, Burayu, Sululta, Legetafo and Bishoftu and different routes in the capital city.
The Chairman apologized to customers for stopping the service without notifying people in advance, and hopes the problem is solved very soon as discussions are ongoing with CBE and the Ministry of Transport, Adil said.
The company, which was established in 2009 and has 2, 500 shareholders with 35 million birr in paid-up capital, bought 25 buses, at a cost of 36 million birr, before tax, making Alliance the first and only private city bus company to join the sector.
Currently the buses are parked at the Alliance transport services compound, in Gulele District.
“The discussion with stake holders will be held next week in hopes transport service can soon be restored,” Adil told Capital.
