In 2019, China-Africa trade reached $192 billion, with China being Africa's largest source of foreign direct investment (FDI), which surged from $75 million in 2003 to $2.7 billion in 2019.

The UK also holds a substantial FDI stock in Africa, amounting to $65 billion as of 2020, primarily in oil, gas, mining, and financial services.

In 2022, five new oil and gas deals worth £2.1 billion were struck at the UK-Africa summit.

Geographically, South Africa, Nigeria, and Morocco are significant recipients of investment, with South Africa alone accounting for nearly 34% of the VanEck Vectors Africa Index ETF.

Industrially, the financial sector, materials, and communication services are prominent, with the financial sector representing around 32% of the ETF.

The fintech sector in Africa is rapidly growing, with revenues projected to surge to $30 billion by 2025.

The pharmaceutical sector is also expanding, driven by rising healthcare demands.

Major foreign companies investing in Africa include the Africa Finance Corporation and the British International Investment, which made a $150 million investment in Kelix bio, a pan-African pharmaceutical platform.

Partnerships between African entities and foreign companies are evident in initiatives like the Belt and Road Initiative, where China has committed at least $200 billion to Africa.

African countries like Zambia and Ethiopia have been working to attract FDI through incentives and infrastructure investments, although challenges such as energy shortages and regulatory barriers remain.

The African Continental Free Trade Area offers synergies for participating in global supply chains, enhancing Africa's investment appeal.

In 2019, China-Africa trade reached $192 billion, with China being Africa's largest source of foreign direct investment (FDI), which surged from $75 million in 2003 to $2.7 billion in 2019.

Title:

Content: What can Africa expect from FOCAC 2021?

As the 2021 Forum on China-Africa Cooperation (FOCAC) approaches, we examine the state of the China-Africa relationship and what should be on the table at this year's forum.

The eighth edition of the Forum on China-Africa Cooperation (FOCAC) is due to be held in Dakar, Senegal, from 29-30 November 2021, Senegal’s foreign minister, Aïssata Tall Sall, and the Chinese ambassador to Dakar, Xiao Han, have announced.

The theme of the conference will be “Deepen China-Africa Partnership and Promote Sustainable Development to Build a China-Africa Community with a Shared Future in the New Era”, according to Chinese foreign ministry spokesman Wang Wenbin.

Speaking in a press conference in Beijing on 5 November, he said that the meeting would “review and assess the follow-up implementation of the outcomes of the 2018 FOCAC Beijing Summit as well as the joint China-Africa response to Covid-19, and chart the course for China-Africa relations for the next three years and more to come.”

He also predicted that the forum would “inject new impetus into the China-Africa comprehensive strategic and cooperative partnership”.

Four key themes for the FOCAC agenda

On 8 November, Senegal’s foreign minister and the Chinese ambassador to Dakar, Xiao Han, announced that the forum would adopt four resolutions: The Dakar Action Plan (2022-2024); the 2035 Vision for China-Africa Cooperation; the Sino-African Declaration on Climate Change; and the Declaration of the Eighth Ministerial Conference of FOCAC.

These, predicted Eric Olander, writing on the China-Africa Project website, are likely to “serve as the main pillars” of the forum.

The Senegalese foreign minister said that the forum would appraise the results of China-African cooperation during the Covid-19 pandemic and define how it would continue for the next three years and beyond.

She also announced that the seventh China-Africa Business Conference would take place in parallel with FOCAC at the Diamniadio Exhibition Centre in Dakar and by video conference. The 2018 edition in Beijing hosted more than 1,000 African representatives from over 600 enterprises, business groups, and research institutions.

“FOCAC is our common good. Its success will bring prosperity to current and future generations of Africans and Chinese,” said Aïssata Tall Sall.

In an interview with the Xinhua news agency the minister said she expected the forum to address Africa’s place within the Belt and Road Initiative, underlining its importance to world trade.

Hundreds of ambassadors and diplomats are expected to attend the forum, which is likely to be a mixture of online and live events.

However, as Lina Benabdallah, assistant professor at Wake Forest University, has pointed out on Twitter, the event will be at ministerial level, which means that heads of state such as Chinese President Xi Jinping will not be attending.

“This is no doubt a disappointment to #MackySall who expressed big enthusiasm for hosting (in addition to co-chairing) the #FOCAC meeting. At this point his Minister of foreign affairs is in charge of hosting. #FOCAC at the summit level just brings higher visibility, more perks,” she writes.

We examine further below what is likely to be on the agenda at this year’s forum.

What is FOCAC?

FOCAC is a triennial high-level forum between China and all of the states of Africa, with the exception of Eswatini, which continues to recognise Taiwan.

Modelled on Japan’s Tokyo International Conference on African Development (TICAD), it provides an organising mechanism for Chinese foreign policy toward Africa.

Typically attended by the incumbent Chinese president and many of his counterparts across the continent, FOCAC has frequently played host to eye-catching Chinese policy announcements and financial commitments. The forum is alternately hosted in Beijing and major African capitals.

The China-Africa Business Council’s recent report on China’s private sector investment in Africa looks forward to the event as “another milestone and a new starting point for China-Africa economic and trade cooperation” that will provide “a great opportunity for all African countries to attract foreign investment and expand their international influence”.

“Both Chinese and African enterprises should anticipate the opportunity to enjoy great mutual policy benefits,” says the report.

The forum looks to build on the increasingly close economic relations that have been forged between China and Africa over the last 20 years.

According to the China-Africa Research Institute at Johns Hopkins University, the value of China-Africa trade in 2019 was $192bn, up from $185bn in 2018. In 2019, the largest exporter to China from Africa was Angola, followed by South Africa and the Republic of Congo. In 2019, Nigeria was the largest buyer of Chinese goods, followed by South Africa and Egypt.

China is also Africa’s biggest source of foreign direct investment – investment surged from $75m in 2003 to $2.7bn in 2019. Chinese FDI flows to Africa have exceeded those from the US since 2014. Between 2013 and 2018, 45% of China’s foreign aid went to Africa. The number of Chinese workers in Africa by the end of 2019 was 182,745, according to official Chinese sources.

How has FOCAC impacted the financial relationship between China and Africa?

The first official FOCAC was held in Beijing in 2006, following two major ministerial conferences in Beijing and Addis Ababa in 2000 and 2003. Between 2000 and 2019, the China-Africa Research Institute at Johns Hopkins University estimated Chinese financiers signed 1,141 loan commitments worth $153bn with African governments and their state-owned enterprises.

In 2015, China unveiled its largest commitment of the conference series, a $60bn package of aid, subsidised lending, and state-backed investment, a commitment repeated in 2018.

Chinese financial support has proved crucial to African countries over the last two decades. Loans from government and state-owned banks have enabled the construction of major infrastructure projects across the continent, including highways, ports, airports and government buildings.

But much of that support has been relatively opaque. According to a research paper released in late September by the China Africa Research Institute, Zambia’s outstanding external debt to Chinese financiers is approximately $6.6bn, almost double the $3.4bn revealed by the previous Zambian government. The estimates do not include substantial arrears to Chinese contractors for unpaid projects, part of an estimated domestic arrears pile amounting to $2bn.

What was promised at FOCAC in 2018?

For the first time in the history of the FOCAC meetings, China’s commitments to Africa stayed flat in 2018, with $60bn pledged over three years. Prior forums had seen an exponential growth in commitments, starting from around $5bn in 2006.

According to Annalisa Prizzon, a senior research fellow at the UK-based ODI, the 2018 commitment was more weighted towards aid than previous instalments, with 25% of these commitments – or $5bn a year – in the form of grants, interest-free loans and concessional loans.

In a May speech, Chinese finance minister Wang Yi said that over 85% of the eight major initiatives announced at the 2018 Beijing Summit have been implemented, 70% of the $60bn supporting funds have been disbursed or earmarked, and a large number of cooperation projects have been launched or completed.

Other analysts are less enamoured of the track record of FOCAC in delivering benefits to Africa. Writing for African Business, former Liberian public works minister Gyude Moore says that a vast economic chasm has opened between Africa and China. He argues that this year’s forum presents an opportunity for African states to recalibrate and correct their courses using lessons from China’s past.

Also writing for African Business earlier this year, Hannah Ryder, CEO of Development Reimagined, an African-led international development agency based in Beijing, called for “a more organised, collective approach to engagement” on the part of African leaders at this year’s FOCAC, and summarised her organisation’s blueprint for an African China strategy.

For Ryder, writing in the November issue of African Business, the factors that drove China to commit $60bn to African countries in 2018 remain as strong as ever, but the outcomes of this year’s forum remain uncertain.

Future trajectories of China-Africa relations

The report FOCAC at 21: Future Trajectories of China-Africa Relations published in October by the China Foresight project at the London School of Economics brings together a number of international experts to examine emerging trends likely to shape China-Africa relations in coming years.

  • Stephen Paduano, executive director of the LSE Economic Diplomacy Commission, says that the crux of China’s foreign economic policy since the death of Mao has been running trade surpluses. It is far from certain that China can pull back from its overseas spending spree, as a decline in overseas capital flows would create a decline in China’s trade surplus that could be politically unpalatable.
  • Mzukisi Qobo, head of Wits School of Governance at the University of the Witwatersrand in South Africa, argues that African leaders must use their agency more effectively at FOCAC to seek more market access in China, while also using the African Continental Free Trade Agreement as a basis for industrial development and engagement with external actors.
  • Lina Benabdallah, assistant professor at Wake Forest University, points out that in the early stages of the Covid-19 pandemic, when China was in need of assistance, African states provided much of that aid. China’s reciprocation of that assistance, she says, has filled the void left by the absence of other partners but has yet to reach its full potential. FOCAC 2021 will provide the opportunity to negotiate better delivery deadlines for Chinese vaccines and the possibility of producing more of them locally.

The report also contains articles by experts examining China’s security engagement with Africa, its digital infrastructure in Africa, educational exchanges and collaboration on space technology.

What will be on the agenda at this year’s FOCAC?

Analysts have predicted that an era of “easy” Chinese credit in Africa is drawing to a close , as an economic relationship primarily based on the resource trade has shifted towards infrastructure and a political and strategic relationship.

The Covid-19 pandemic has had a catastrophic financial impact on many African countries, leading to fears of debt defaults on the billions of dollars that China has lent the continent over two decades. The World Bank estimates that Africa’s funding gap stood at $290bn in 2020.

Without debt support, unaffordable payments on the vast portfolio of loans from China and other wealthy nations could lead to a series of chaotic defaults by individual African countries.

For its part, China says it is a participant in the G20 Debt Service Suspension Initiative, and says it has signed debt suspension agreements or similar understandings with 19 African countries.

It has also cancelled interest-free loans due to mature by the end of 2020 for 15 African countries. Yet African countries concerned by their fiscal situation are likely to push for much more generous debt renegotiation and forgiveness.

According to Wang Yi, the conference will also focus on joint efforts against Covid-19, including the provision of more vaccines for the continent. Africa’s share of China’s total global vaccine distribution remains at 8% compared to 61% for Asia, according to a Chinese vaccine tracker report from @BridgeBeijing.

There will also be talks on deepening cooperation on China’s Belt and Road global infrastructure plan and adopting sector-specific cooperation measures for priority areas such as healthcare, investment, trade, industrialisation, agricultural security, climate change, peace and security, human resources and digital economy.

According to the South China Morning Post, African countries will be “pushing to grow their agricultural exports into China” at the forum.

The newspaper quotes an interview by Bloomberg with Uganda’s President Yoweri Museveni in which he says that China should “provide tariff-free, quota-free access” for African goods, such as that allowed by the US African Growth and Opportunity Act (AGOA) or a deal mirroring Europe’s Everything But Arms arrangement for least developed countries.

“The only new thing we shall insist on is market access to the Chinese market, because that will help Africa a great deal,” Museveni told Bloomberg on 1 November. “The next thing I would ask from them is to allow our products to enter their market quota-free, tax-free.”

Mauritius is the only African country to have signed a free trade agreement with China.

A very different FOCAC in 2021?

Discussing the forthcoming forum on the China in Africa podcast, Eric Olander and Cobus van Staden predict that the 2021 edition will be “a very different FOCAC than in recent years”.

They foresee the announcement of smaller infrastructure projects than at previous editions, but believe digital and tech will be big – “expect lots of smart cities projects to be announced,” says van Staden.

Agriculture is a theme that they expect to be much higher on the agenda this year, as it will give China a chance to “stick it to the West”.

On the question of whether China will bring a big chequebook to the table, they say that as no other countries have announced the size of their commitments in recent bilateral meetings with Africa, this will be a chance for China to make an impression.

However, the area in which they most expect China to announce a big number is in the amount of vaccines it will be sending to Africa.

As regards green investment, they ponder whether there will be any gesture to replace the investments in coal on the continent that Beijing has recently cut. Given China’s lead in renewable technology, they see the space for a “real movement forward” in this area.

Additional research and reporting by Charles Dietz.

How has China's FDI in Africa changed from 2003 to 2019?

The UK also holds a substantial FDI stock in Africa, amounting to $65 billion as of 2020, primarily in oil, gas, mining, and financial services.

Title:

Content: When asked for his views on diversification as a strategy for portfolio management, Warren Buffett responded, “diversification is protection against ignorance”. Instead of a diversified portfolio, the Oracle of Omaha famously prefers a concentrated one, composed of a few sectors he has rigorously studied.

The UK’s investment strategy for the African continent is seemingly straight out of the Buffett playbook. As of 2020, the UK holds $65bn in total foreign direct investment (FDI) stock in Africa, second only to China. The vast majority of the portfolio is in oil, gas, mining and financial services.

In 2022 five new oil and gas deals worth £2.1bn were struck at the UK-Africa summit. In stark contrast, just £161m (8% of the total summit commitments) were invested in clean energy. One may agree with the UK’s strategy, suggesting that there aren’t many other high-yield investments to be made other than in oil majors, legacy miners and grey-haired banks. And besides, who would disagree with Buffett’s dictum? He is the sixth-wealthiest person in the world after all.

The truth of the matter is that Buffett would not be as wealthy as he is without adapting to changes in market trends, technologies and geopolitics. In May he sold his remaining stake in chip manufacturer TSMC due to geopolitical considerations (TSMC is based in Taiwan). A concentrated portfolio does not mean a stagnant one. It is this insight that the UK is overlooking, setting itself up to miss opportunities in those new industries rapidly taking shape across the world’s youngest and most promising continent.

Two trends are shaping markets across the continent. One of these is the adoption of financial technologies and the other is increased demand for healthcare, a consequence of Africa’s population boom and rising standards of living.

Fintech sector

McKinsey, a consultancy, estimated that revenues in the African fintech sector could surge eight times their current value to $30bn by 2025. Between 2020 and 2021 alone, the number of tech start-ups tripled to 5,200 companies. In 2021, seven of the 10 newly minted African unicorns (private companies valued over $1bn) are fintechs. As more Africans get connected and as digital identification verification models mature, fintechs will scale and profits will follow.

The second sector is pharmaceuticals. As Africa’s population grows and incomes rise, more money will be spent on healthcare. Within this sector, the Covid-19 pandemic laid bare the worrisome state of Africa’s vaccine and therapeutic manufacturing capabilities. Estimates vary, but some assessments forecast vaccine demand to double in volume from about 1-billion doses now to more than 2.7-billion doses by 2040. Industries adjacent to pharmaceuticals such as logistics, packaging and protective equipment are likely to cash in on increased private and public healthcare expenditure.

There are some positive signs that the newly revamped British International Investment (BII), formally the Commonwealth Development Corporation, is adjusting its investments because of these market trends. In 2020, the BII made a $150m investment in Kelix bio, a pan-African pharmaceutical platform focusing on manufacturing and marketing. It also executed a $20m, four-year structured credit deal with Moove, a fintech company that provides customers with cheaper access to vehicles.

Risk premium

These steps are positive but they are small. Inward FDI for Africa remains pitiful. Last year set a record for the continent, bringing in $83bn. To put this in context, the City of London in 2020 hit $831bn in FDI (10 times that of a continent of 54 countries), according to the Office of National Statistics.

What to make of this all? At least two insights. First, the UK should look to new sectors, taking bold bets in companies leading the fintech and pharmaceutical sectors. The second insight is that Africa’s risk premium is overpriced. There is opportunity beyond the industries of the 20th century; one just needs to look for them.

• Nott works for a venture facility for public benefit and is based in London. He writes in his personal capacity. You can follow his writing on Twitter @TheAfricaBrief.

Picture: 123RF

Which European countries lead investment in Africa?

Which countries are actively investing in Africa besides China?

In 2022, five new oil and gas deals worth £2.1 billion were struck at the UK-Africa summit.

Which European countries lead investment in Africa?

Which countries are actively investing in Africa besides China?

Geographically, South Africa, Nigeria, and Morocco are significant recipients of investment, with South Africa alone accounting for nearly 34% of the VanEck Vectors Africa Index ETF.

Title:

Content: AFK: One Of The Few ETFs Investing In Africa

Unlocking Alpha
570 Followers

Summary

  • AFK provides exposure to publicly-listed companies doing business in Africa.
  • AFK is trading at less than 10x earnings, which is fairly valued in my opinion given the specific risks associated with emerging markets.
  • As the probability of a global recession is now higher than a few months ago, I would personally be patient and wait for better opportunities in Europe and North America.

Investment Thesis

With some of the fastest-growing economies in the world, African nations are playing an increasingly significant role in the global economy. The population is young and rapidly growing, and household incomes and consumption are projected to rise. According to the WEF, more than 40% of Africans would be in the middle or upper classes by 2030, leading to increased demand for products and services. As a result, household spending is predicted to reach $2.5 trillion in 2030, more than double the 2015 figure ($1.1 trillion). The continent is also home to an abundance of natural resources. For instance, it has huge, untapped reserves of natural gas and oil and largely unexploited hydroelectric power. In this article, I will review the VanEck Vectors Africa Index ETF (NYSEARCA:AFK), which provides exposure to publicly-listed companies doing business in Africa.

Strategy Details

The VanEck Vectors Africa Index ETF tracks the performance of the MVIS GDP Africa Index. "The index includes local listings of companies that are incorporated in Africa and listings of companies incorporated outside of Africa but that have at least 50% of their revenues coming from Africa."

If you want to learn more about the strategy, please click here.

Portfolio Composition

The index places a high weight on the Financial sector (representing around 32% of the index), followed by Materials (accounting for 29%) and Communication Services (representing around 21% of the fund). The largest three sectors have a combined allocation of approximately 82%.

In terms of geographical allocation, nearly ~34% of the fund is invested in South Africa, followed by Nigeria (~11.7%) and Morocco (~10.7%). It is interesting to see that AFK doesn't rank countries by GDP, but rather by how well the capital markets are developed in those countries. Egypt, for instance, which is the second-largest African economy by nominal GDP comes only 8th on the list, with 5% of total assets.

~41% of the portfolio is invested in mid-cap blend issuers, characterized as mid-sized companies where neither growth nor value characteristics predominate. Mid-cap issuers are generally defined as companies with a market capitalization between $2 billion and $8 billion. The second-largest allocation is mid-cap growth equities. It is interesting to see that AFK allocates approximately 77% of total assets to small and mid-cap issuers, which generally have a larger runway to grow than large-cap issuers and can therefore provide higher returns over the long term. That said, small and mid-cap stocks generally have higher betas, thus I think it is important to see if you are comfortable with a higher level of volatility before purchasing AFK.

The fund is currently invested in ~79 different stocks. The top ten holding account for ~42%, with no single stock weighting more than 6%. All in all, AFK is well-diversified and has a very low level of unsystematic risk as a result. However, I think it is important to highlight the fact that AFK doesn't diversify the emerging market risk. In other words, all countries included in this basket are emerging economies and by owning AFK, you are facing some undiversifiable risks specific to emerging markets.

Since we are dealing with equities, one important characteristic is the portfolio's valuation. According to data from Morningstar, AFK currently trades at a price-to-book ratio of ~1.7 and a price-to-earnings ratio of 9.5. This is extremely cheap if you compare it to developed markets which generally trade at over 14x earnings.

However, this countries come with a unique set of challenges. For instance, if you look at the countries with the highest inflation rate in the world, African countries are overweighted in that list. The same goes for other crucial metrics such as unemployment. In my opinion, AFK's valuation fairly reflects the fundamentals of the underlying economies and deserves a discount relative to developed markets and other emerging markets that are in a better shape.

Is The ETF Right for Me?

I have compared AFK's total returns against the iShares MSCI Emerging Markets ETF (EEM) over the last 5 years to assess which one was a better investment. Over that period, both funds had similar results, with EEM slightly outperforming AFK.

To put AKF's results into perspective, a $100 investment 5 years ago in this ETF would now be worth ~$105.04. This represents a compound annual growth rate of ~0.99%, including dividends, which is a mediocre absolute return in my opinion.

If we take a step back and look at the 10-year total return, the results don't change much. EEM came on top once again, outperforming AFK since early 2015. I think it is worth noting fact that AFK failed to deliver positive returns over 10 years despite a good dividend yield and low valuations. I think this is a good example where low valuations are not enough to make a fund/stock a great investment and that you need additional factors that will contribute to its success.

Lastly, with a rising dollar and the potential for a global recession increasing, I would personally avoid investing in emerging markets at the moment, since I believe better opportunities will be available in Europe and North America over the next months.

Key Takeaways

AFK provides exposure to publicly-listed companies doing business in Africa. For many investors, Africa's young and rapidly growing economy represents a lucrative market. AFK is trading at less than 10x earnings, which is fairly valued in my opinion given the specific risks associated with emerging markets. As the probability of a global recession is now higher than a few months ago, I would personally be patient and wait for better opportunities in Europe and North America.

This article was written by

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About me: Value-oriented investor, seeking low-risk investments with the potential to deliver high returns. I like to analyze commodities, ETFs, and cash-flow positive businesses that have a moat and growth opportunities.
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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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What trends are emerging for African startups in 2022?

Industrially, the financial sector, materials, and communication services are prominent, with the financial sector representing around 32% of the ETF.

The fintech sector in Africa is rapidly growing, with revenues projected to surge to $30 billion by 2025.

The pharmaceutical sector is also expanding, driven by rising healthcare demands.

Which sectors are Chinese investments in Africa focusing on?

Major foreign companies investing in Africa include the Africa Finance Corporation and the British International Investment, which made a $150 million investment in Kelix bio, a pan-African pharmaceutical platform.

How much did BII invest in Kelix bio in 2020?

What trends are emerging for African startups in 2022?

Which European countries lead investment in Africa?

Which countries are actively investing in Africa besides China?

Partnerships between African entities and foreign companies are evident in initiatives like the Belt and Road Initiative, where China has committed at least $200 billion to Africa.

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Content: Connect with us

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Chinese Foreign Minister Wang Yi.

Fifth Estate

Chinese FM Wang Yi’s visit cements Sino-Africa relations

-Wang Yi will be in Kenya, Eritrea and Comoros from Jan 4-7.
-It’s an annual tradition for Chinese FM to visit Africa at the start of the year.
-The visit cements China-Africa relations.

Following in the tradition of Chinese foreign ministers starting every new year with a visit to Africa, State Councilor and Foreign Minister Wang Yi will visit Eritrea, Kenya and the Comoros from January 4 to 7, 2022 upon invitation by the respective hosts. This will be the 32nd annual visit to the continent.

Making the announcement on December 2, 2021 Zhao Lijian, spokesperson for the Chinese Foreign Ministry noted that this customary visit demonstrates the great importance China attaches to its traditional friendship with Africa and the development of China-Africa relations.

For Sino-Africa experts and watchers alike, this is one of the most important annual highlights and sets the tone of how the partners will react to geopolitical issues going forward. It is also a barometer of how the two have reacted to external pressure bent on putting a spanner in their socio-economic and even political works.

That China and Africa have formed a close bond in a long running relationship spanning more than five decades is not in doubt. Currently, China has established diplomatic relations with 53 African countries, in addition to 160 pairings with sister provinces or cities between the two partners. This shows the depth of cooperation and closeness that has progressively developed over time.

China has established 61 Confucius Institutes and 48 Confucius Classrooms in Africa. Language is a crucial channel in creating mutual understanding, which informs the establishment of these basic language and cultural centers. It is also added value for Africans who, with the addition of Mandarin to their lingua franca and foreign second languages, are becoming truly global citizens through multilingualism. But it is expected that with Sino-Africa relations becoming widespread in Africa, Mandarin will replace most foreign languages in the continent in a span of less than 50 years.

China’s COVID-19 assistance to Africa is well documented. Recently, President Xi Jinping announced that China will provide another one billion doses of COVID vaccines to Africa, including 600 million doses as a donation, to help the countries achieve the goal set by the African Union of vaccinating 60 percent of the African population by 2022. Africa will also benefit immensely from China’s COVID-19 assistance to developing countries bilaterally, and even through multilateral channels like the COVAX Facility.

During the eighth ministerial conference of the Forum for China-Africa Cooperation (FOCAC) held in Dakar, Senegal in November, 2021 China pledged to permit $300 billion worth ofAfrican imports in the next three years. It also promised $10 billion in trade finance to support African exports. Chinese businesses will also invest at least $10 billion in Africa over the next three years, and offer $10 billion worth of credit facilities to African financial institutions.

In a great gesture of genuine friendship, China said it is ready to channel $10 billion to African countries from China’s share of the International Monetary Fund’s new allocation of special drawing rights. To cap it all on this front, Chinese companies in Africa plan to create not less than 800,000 local jobs.

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The year 2021 marked the 65th anniversary of the start of diplomatic relations between China and African countries. Almost by design, Agenda 2063’s flagship projects reflect FOCAC’s pillars. These are wide ranging sectors in the areas of infrastructure, science and technology, education as well as arts and culture. Specifically, Sino-Africa cooperation has experienced either the conception, emergence or realization of some major initiatives, some of these together with other African partners.

These include the ten major cooperation programs envisioned by President Xi during the FOCAC Johannesburg Summit in December 2015 – agricultural modernization, infrastructure, finance, green development, trade and investment facilitation, poverty reduction, public health, cultural and people-to-people exchanges, and peace and security.

Over the past two decades, Chinese overseas Foreign Direct Investment to Africa has grown, from $75 million in 2003 to $ 5.4 billion in 2018. Through the Belt and Road Initiative (BRI), China has

also expanded its sphere of influence in Africa, and specifically through investment in infrastructure development such as industrial parks, railway, ports, and roads among others.

During the launch of a report in Nairobi titled “Shared Prosperity: Tracking the Belt and Road Initiative in Kenya, 2018-2021” held in November, President and Chief Executive of the Africa Policy Institute, Prof Peter Kagwanja, observed that the centuries-old reservoir of collective wisdom and philosophy carries the values of cooperation and solidarity between China and Africa as two old civilizations with a long history of friendly interactions and mutual cooperation.

Today, FOCAC and BRI form the twin-engines of the SinoAfrica architecture now propelling Africa’s development. China has committed at least $200 billion to lift Africa from poverty and underdevelopment. After BRI was launched, China has extended a $120 billion dollar lifeline, $60 billion in 2015 and another $60 billion in 2018. This is the largest bailout in human history, and the first ever by a developing nation like China,” observed Prof Kagwanja.

As noted during FOCAC, China has become an indispensable partner in Africa’s development, and the forum has now become the most important accelerator for Sino-Africa cooperation. Africa supports and will actively participate in the Global Development Initiative and the Initiative on Partnership for Africa’s Development, both of which are Chinese led initiatives.Further, Africa expects greater support from China for herindustrialisation and fight against the pandemic. Africa stands ready to contribute to high-quality Belt and Road cooperation for people’s well-being and common prosperity.

[Stephen Ndegwa is a Nairobi-based communication expert, lecturer-scholar at the United States International University-Africa, author and international affairs columnist]

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African countries like Zambia and Ethiopia have been working to attract FDI through incentives and infrastructure investments, although challenges such as energy shortages and regulatory barriers remain.

Title:

Content: Part I: Attracting Foreign Investment into Africa may not come from the Sweet Stories we tell Foreigners

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By Edward Chisanga

I attended an Investment Forum in Utopia last week where Utopian countries had a rare opportunity to speak their minds out to foreigners who had attended in large numbers together with their Heads of State. The Master of ceremony began by introducing the private sector from rich countries present from France, UK, USA, Germany, Netherlands, and others from the EU membership before turning to the Utopian Heads of State and their groups.

What Foreign Investors Heard

Then he called upon one Utopian Head of State to speak on behalf of all the fifty-five African countries in attendance to list compelling factors that would captivate foreign investors from rich countries to go and invest in Africa.

The President began, “Africa is a huge piece of land, most of which is underutilized. All the countries that I represent here boast of huge land available for you investors. Come and invest in Africa, the continent of the future.” Then the President turned to one of the Presidents in his group and allowed him to speak about his country’s promotion of investment.

“Zambia has one of the most open trade environments in Africa and is a member of the Southern Africa Development Community (SADC) and the Common Markets for Eastern and Southern Africa (COMESA). Businesses in Zambia benefit from one of the lowest profit taxes in the region. Increasing regional cooperation through multilateral organisations, including SADC and the African Union should continue to reduce the likelihood of interstate conflict.” Then he highlighted ‘Some of the government incentives to FDI as:

  1. Dividends paid out on farming profits are exempt for the first five years of activity.
  2. Initial allowance of 10% on capital expenditure incurred on the construction or improvement of an industrial building is deductible.
  3. Foreign exchange losses of a capital nature incurred on borrowings used for the building and construction of an industrial or commercial building are tax deductible.
  4. Income earned by companies in the first year of listing on the Lusaka stock exchange qualifies for a 2% discount on the applicable company tax rate in the particular sector. However, companies with more than 1/3 of their shareholding in the hands of Zambians qualify for a 7% discount.
  5. Implements, machinery and plant used for farming, manufacturing or tourism qualify for wear and tear allowance of 50% of the cost per year in the first two years of activity.

He continued, “Investors who invest at least USD250,000 in any sector or product not provided for as a priority sector or product, is entitled to non-fiscal incentives such as investment guarantees and protection against state nationalization and protection against non-commercial risks (Zambia is a signatory of Multilateral Investment Guarantee Agency).”

Then the moderating African President turned to South Africa’s President and gave him the floor. President Cyril Ramaphosa was quick and went straight to the point by referring his audience to his weekly newsletter output, ‘From the Desk of the President,’ and repeated the points he recently made in the United Kingdom, “Government has a bold vision to be a destination of choice for foreign direct investment and this requires far-reaching reforms. These include reducing the cost of doing business for both large and small businesses, improving the quality of South Africa’s institutions, enhancing administrative efficiency and governance systems.”

When the turn of the Ethiopian Prime Minister came, he repeated what he had said at the 2019 Davos Meeting in Switzerland, “Investment in infrastructure has contributed a lot to the growth and attracted FDI, making Ethiopia one of the leading FDI destinations in Africa.”

Based on what the three African countries presented as their selling points to attract FDI, the President speaking on behalf of Africa retorted, “The three African countries that have just spoken present a strong representative basis for me to conclude that Africa is ripe and ready for FDI. “You have heard yourselves from the horses’ mouths,” He proudly said. “There’re similar incentives in Rwanda, Benin, Lesotho, Burkina Faso and all other countries. It’s time for you to come and invest in Africa.”

What Foreign Investors do not hear.

Despite the repeated sweet stories coming from African leaders, there’re equally important things that Foreign Investor don’t hear but that they are aware of.
About Zambia, an UNCTAD Investment Report reports, “Zambia’s infrastructure, whose poor quality is a barrier to investment, should be strengthened by investments in the road network, railways and the construction of power plants. In 2021, a USD 11 billion standard gauge railway project was announced in Zambia, involving US capital, which would expand essential transport links with the outside world. The regulatory environment does not favour entrepreneurial activity, the requirements for commercial licenses being long and costly, and the application of regulations not being uniform. In addition, the protection of property rights and the enforcement of contracts are still weak by international standards.”

As the author of this article is a Zambian living in Zambia, he is aware of the challenges coming the country’s energy sector. We have loadshedding in Zambia which Foreign Investors are aware of. They’re aware that the Mining sector, the country’s brain earner depends on use of energy, yet it is not exempted from malady of shortages. Equally, they know how much Zambia’s private sector suffers from energy shortage and its effect on business.

In South Africa, despite sweet stories, except only in 2021inward FDI flows have been declining significantly since 2010 as Figure 1 below shows. Even if this dwindling trend were to be attributed to other factors, the deteriorating energy situation in South Africa is playing a multiplier effect on FDI and the overall economy. Yet, South Africa like other African countries’ Heads of State turn a blind eye on the matter. As for many other things going unwell, they simply don’t tell the truth about the energy crisis.

In Ethiopia, Laments Omer Redi, “The crisis in the power supply has reached such a critical point that blackouts now occur every other day.” Fortune adds, “It is obvious that Ethiopia is now in such a serious power crisis that it has been forced to introduce load shedding.” There are other voices no longer silent. Said Kevin Daly of London based investment company, “Ethiopia is uninventable now. The political situation is very tenuous, and there is a lack of information and clarity on the economy, and on how things are going to be resolved.”

Concluding

Policy coherence is defined by the OECD as, “The systematic promotion of mutually reinforcing policy actions across government departments and agencies creating synergies towards achieving the agreed objectives.” The wonderful incentive packages must be complemented with other key inputs to build a whole.

For example, just as a motor vehicle cannot move smoothly if one key part falls off, you cannot attract adequate FDI with a list of incentives only when the energy sector, upon which industry depends is in crisis. Fix energy, infrastructure, human skills, corruption, rule of law, security, etc to arrive at a complete package of what attracts FDI. FDI goes to Asia because there’s no infrastructure, human capital, or energy crisis.

All these are well built. Asia also has bigger land than Africa. We cannot keep on using obsolete factors that are abandoned by others to attract FDI. It’s like always saying, “Come to Zambia and see the Victoria Falls.” Foreign Tourists now go to beautiful cities without dust, simply to visit, feel safe and talk to honest and humble citizens with Asians largely qualifying in almost all these. Our cities, including Livingstone, are not ripe for serious tourism that builds wealth.

Foreign Investors or tourists are not our uncles on whose shoulders we will simply cry and await their positive response. They will not come simply because we are democratic and shout that Zambia is ready for business. They are not cajoled by sympathy or simply because Zambia’s leadership change occurs smoothly. They have not come since change from Kaunda to Chiluba or Chiluba to Banda or Banda to Sata which were all peaceful and democratic. We must understand what their needs are. If we don’t provide, they’ll go to Asia.

The African Continental Free Trade Area offers synergies for participating in global supply chains, enhancing Africa's investment appeal.

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Content:
African economies should seize the opportunity to better integrate into technology-intensive global supply chains and boost prosperity, but this depends on their ability to harness key market and investment trends, the UN’s trade and development body UNCTAD said on Wednesday.

In a new reportUNCTAD shows that Africa can become a major exporter of higher value-added goods, creating growth and jobs, and fuelling a rise in productivity and wages.

Launching the report in Nairobi, UNCTAD Secretary-General Rebeca Grynspan insisted it would offer a better future for the continent’s economies.

Diversifying trade “builds resilience and enhances innovation”, Ms. Grynspan said, adding that diversifaction was “key” for private sector development and employment opportunities for Africa’s growing population.

Africa’s competitive advantage

Ms. Grynspan highlighted three factors driving the “huge” opportunity for the continent. From a geopolitical point of view, countries and businesses are seeking to diversify their suppliers and thus reduce risk. Africa is well placed to tap into this trend, Ms. Grynspan said, which together with the African Continental Free Trade Area offers “great synergies” for participating in global supply chains.

Africa also has a unique advantage amid the rise of the renewable energy market, as it is a vital source of raw materials for technology-intensive industries – for instance lithium, essential to the production of electric car batteries. It has the possibility to become a destination for manufacturing and should seek to export more complex finished goods rather than just commodities, Ms. Grynspan said.

As for demographics, Africa boasts not only a dynamic, young workforce, but also a “burgeoning” middle class offering local consumer markets for hi-tech goods.

‘Untapped potential’

The report analyses “untapped potential” for African countries to strengthen their position in the automobile, solar energy and pharmaceutical industries.

Encouragingly, Ms. Grynspan noted that Africa’s tech ecosystem growth has already proven impressive, as “hubs in artificial intelligence, 3D printing, blockchain, fintech [financial technology] and e-commerce are thriving” in countries such as Kenya, fostering innovation and strengthening Africa’s chance to capture technology-intensive global supply chains.

Higher wages and resilience

Creating an environment conducive to technology-intensive industries will raise wages, the UNCTAD chief said, underscoring that the average wage on the continent is $220 per month while in the Americas, in comparison, it is nearly $670.

According to UNCTAD, deeper integration into global supply chains would also diversify African economies, boosting their resilience to future shocks.

Attract investment

However, for this to happen, more investment will be needed, Ms. Grynspan said. The report highlights the fact that currently, only about two per cent of global investments in renewable energy go to Africa.

Paul Akiwumi, Director of UNCTAD’s Division on Africa, Least Developed Countries and Special Programmes, said that in order to drive more large-scale private investment, regulatory barriers will have to be removed and regional industrial development plans put in place.

Mr. Akiwumi cited the example of a regional agreement between the Democratic Republic of the Congo and Zambia, allowing for the creation of an industrial zone for the production of electric car batteries. He also highlighted the importance of product registration and intellectual property in order to attract investors.

Urgent debt relief needed

Ms. Grynspan stressed that in order for Africa to be able to seize its competitive advantage, the continent’s economies need debt relief to create fiscal space so that countries can invest in strengthening supply chains and in education for their workforce.

She recalled that African countries pay four times more for borrowing than the United States and eight times more than European nations, as shown in UNCTAD’s recent “World of Debt” report.

‘Change the rules’

“This must change if Africa is to achieve its full economic potential and be a major actor in global supply chains,” the UNCTAD chief insisted, pledging the UN’s unwavering support to nations across the continent.

Ms. Grynspan highlighted UN Secretary-General António Guterres’ advocacy to “change the rules that reproduce these asymmetries” and fix the “distorted” perception of risk which international investors hold in relation to developing economies.

Distributed by APO Group on behalf of UN News.

What trends are emerging for African startups in 2022?


In the construction sector, women have been underrepresented, often relegated to peripheral roles due to societal norms and gender stereotypes.

However, this is changing as more women enter the field, driven by passion and determination.

Initiatives such as educational programs, vocational training, and mentorship opportunities are crucial in empowering women to excel in these roles.

In the maritime industry, organizations like WISTA are supporting women through continuous professional development and training courses, equipping them with the skills needed to progress in their careers.

Programs like the Maritime SheEO Leadership Accelerator provide management knowledge and create visible role models, encouraging more women to pursue leadership positions.

The shift towards gender equality is also evident in waste management, where women are reshaping the industry by taking on roles traditionally dominated by men.

Companies that promote gender diversity have seen tangible business benefits, including increased profitability and competitiveness.

To attract more women to roles such as crane operators, construction companies can focus on fostering inclusivity in hiring practices and creating a supportive work environment.

Addressing gender pay gaps and providing flexible work arrangements can also help in making these industries more appealing to women.

In the construction sector, women have been underrepresented, often relegated to peripheral roles due to societal norms and gender stereotypes.

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Content: Women severely underrepresented in construction, but that’s changing

What you need to know:

  • In nearly every construction site I encounter, the workforce is overwhelmingly male.
  • The term ‘foreman’ is deeply ingrained in our collective lexicon, while phrases like ‘forewoman’ or the more inclusive ‘foreperson’ remain relatively uncommon.

Across the country, construction sites are a hive of activity, with the government’s ambitious affordable housing project leading the charge. Whenever I pass through these bustling sites, I can’t help but notice the workers clad in overalls, their faces dusted with cement powder as they push wheelbarrows brimming with mortar. Amidst this flurry of activity, one figure stands out – the foreman, barking instructions and overseeing the skilled artisans, or fundis, as they are commonly known.

Interestingly, in nearly every construction site I encounter, the workforce is overwhelmingly male. Rarely do I spot a woman among the fundis, save for the occasional food vendor. Historically, the construction industry has been a predominantly male bastion, a fact reflected in the terminology we use – the term ‘foreman’ is deeply ingrained in our collective lexicon, while phrases like ‘forewoman’ or the more inclusive ‘foreperson’ remain relatively uncommon.

While the underrepresentation of women in this field is a global issue, the challenges faced by women in this industry are particularly pronounced in Africa. This gender imbalance reflects a deeper, systemic issue within the construction sector. For too long, this industry has been perceived as a ‘man’s playground’, with women often relegated to peripheral roles or excluded entirely. The reasons for this disparity are multifaceted, ranging from societal norms and gender stereotypes, to a lack of equal opportunities and support systems for women seeking careers in this field.

Limited access to education and training opportunities, particularly in Stem fields, hinders women’s preparedness for technical roles. Furthermore, societal expectations and domestic responsibilities frequently clash with the demanding nature of construction work, making it difficult for women to balance their professional and personal lives. This gender imbalance not only perpetuates inequality but also deprives the industry of the valuable contributions and perspectives that women can bring to the table. However, times are changing, and more women are breaking into the industry, driven by their passion, determination, and desire to contribute to community development. Despite obstacles such as teenage pregnancies, early marriages, and societal pressures, many carved out their place in this male-dominated field.

Their stories are a testament to the power of perseverance and an unwavering commitment to pursuing their dreams. From the high school dropout who found her calling on a construction site, to the young mother who juggled parenting responsibilities while mastering the art of bricklaying, these women have shattered stereotypes and proved that no challenge is too great when met with an indomitable spirit. Through their journeys, they have not only acquired valuable skills and experience but have also become beacons of inspiration for others.

This week, we celebrate these trailblazers, exploring their unique paths and the lessons they have learned along the way. Their stories offer a candid glimpse into the challenges and triumphs that have shaped their lives, from navigating male-dominated workplaces to balancing family responsibilities with demanding careers. As we strive to create a more inclusive and equitable society, it is imperative that we challenge the deeply ingrained biases and stereotypes that have traditionally kept women on the sidelines of the construction industry.

The government can play a pivotal role by implementing initiatives that support and empower women in this field, including investing in educational programmes, vocational training, mentorship opportunities, and inclusive policies that promote gender equality and non-discrimination. This way, we can empower a new generation of women to take their rightful place alongside their male counterparts, ushering in an era of diversity and excellence in this vital sector.

Empowering women in the construction industry can have far-reaching benefits, contributing to the overall advancement of gender equality and sustainable development in the country.

What challenges do women in the construction and maritime  industries face?

However, this is changing as more women enter the field, driven by passion and determination.

How has the gender balance in the construction and maritime industries changed over recent decades?

How has the level of discrimination for female employees in the construction industry changed over recent decades?

Initiatives such as educational programs, vocational training, and mentorship opportunities are crucial in empowering women to excel in these roles.

What are construction and maritime companies doing to promote and aid women in the field?

create training and apprenticeship programs

What are governments doing to promote and aid women in construction or maritime industries?

educational programs
mentorship opportunities
vocational training

In the maritime industry, organizations like WISTA are supporting women through continuous professional development and training courses, equipping them with the skills needed to progress in their careers.

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Content: Developing the Next Generation of Maritime Professionals

By Elpi Petraki

As technology advances and the shipping industry looks at how it can decarbonize effectively, we hear a lot about “future-proof” solutions. However, in order to truly future-proof the industry, we need to understand the needs of seafarers and shore-based staff today so we can effectively invest in the next generation: the industry’s future leaders.

The shipping industry is one of the oldest industries in the world, and its vast range of shore-based and at-sea job roles offers a huge variety of career opportunities. However, a global labor shortage means that there is strong competition from other industries for new talent.

To attract that talent, we first need to understand what motivates the next generation. Deloitte’s 2022 Gen Z and Millennial Survey provides some interesting insights. In uncertain times, the survey puts cost of living and climate change as top current concerns overall.

Where selecting an employer is concerned, work/life balance and learning/development opportunities are the top criteria, closely followed by salary and benefits. However, diversity and inclusion and the societal and environmental impact of organizations were also shown to be key factors when it came to retention; many respondents said they would turn down a job if it failed to align with their personal values.

Educating Future Leaders

To attract the next generation of leaders, shipping would, therefore, be well advised to redouble efforts to collaborate with educational institutes so that training and career development paths reflect today’s priorities.

The work WISTA does to support women in shipping is relevant here, as it facilitates continuous professional development and encourages training courses that help equip women with the skills they need to progress in their careers.

WISTA Hellas, for example, is working closely with prominent educational institutes and offers full- and part-time scholarships, which are available to any woman working in the maritime industry. Opportunities include the Alba Graduate Business School’s M.B.A. in shipping, an M.S. in logistics and supply chain management from BCA College and the University of Piraeus’s M.S. in ship management. We have also partnered with the Alba Graduate Business School to provide a leadership program specifically for women in maritime.

At an international level, WISTA and the Institute of Chartered Shipbrokers (ICS) offer five scholarships each year for the institute’s foundation diploma, and last year WISTA International launched the Maritime SheEO Leadership Accelerator Programme in partnership with the International Maritime Organization. The accelerator provides women with the management knowledge and skills they need to progress into leadership positions while creating visible role models within the industry.

There are several other initiatives designed to encourage students and young maritime professionals. For instance, in Greece, the Young Executive Shipping (YES) Forum provides a platform for open dialogue between the industry, students and young professionals to bridge the generational gap and to share knowledge and experience. Isalos.net organizes a range of industry events to promote opportunities in the maritime industry, in addition to hosting an online careers platform for cadets.

Other organizations are also responding to the need to develop the next generation of maritime professionals. The Maritime Port Authority in Singapore recently appointed 18 students to be the first MaritimeSG Youth Ambassadors, and the city of Rotterdam has established a Young Maritime Board to participate in the Rotterdam, Maritime Capital of Europe program.

Addressing Recruitment Challenges

In the more immediate term, the 2021 BIMCO/ICS Seafarer Workforce Report predicted that by 2026, there will be a need for almost 90,000 additional STCW (Standards of Training, Certification and Watchkeeping)-certified officers as demand for seafarers to operate the world’s merchant fleet continues to outstrip supply. The situation was surely exacerbated by COVID-19, which exposed or highlighted unappealing aspects of a career at sea.

For example, work/life balance, crew connectivity, security on board and differing legal systems around the world are just some of the challenges faced by seafarers, which can have a negative impact on job satisfaction or crew retention.

As an industry, we need to find solutions to provide seafarers with greater support, such as implementing work patterns that increase shore leave; investing in policies and processes that promote greater diversity and inclusion by creating the right environment on board for everyone; enabling existing crew to receive training and to upskill as new technologies are introduced; and ensuring a safe and secure working environment for all.

Digitalization and New Technologies

New technologies should also create new roles that are more in tune with the skill sets of the younger generation, making the industry a more attractive option, particularly when digital solutions are being used to address issues such as decarbonization.

The demand for digital skills within the global workforce will only continue to increase, and we can see this being translated in school curriculums, where there is a greater focus on STEM subjects and the introduction of computer coding at primary levels of education.

Digitalization also provides a level playing field. Going forward, my prediction is that more women will be recruited into maritime technology roles, as men and women are equally qualified to embark on such careers.

We have an ambitious and tech-savvy cohort of young professionals with a desire to make a difference. But as an industry, we must act together to raise awareness of the array of opportunities on offer within shipping and to actively engage with the next generation to secure a sustainable future for the industry.

Elpi Petraki is president of WISTA Hellas and works at the Greek ship management company ENEA Management, which is her family business.

What are construction and maritime companies doing to promote and aid women in the field?

create training and apprenticeship programs

Programs like the Maritime SheEO Leadership Accelerator provide management knowledge and create visible role models, encouraging more women to pursue leadership positions.

How has the gender balance in the construction and maritime industries changed over recent decades?

What are construction and maritime companies doing to promote and aid women in the field?

create training and apprenticeship programs

What are governments doing to promote and aid women in construction or maritime industries?

educational programs
mentorship opportunities

The shift towards gender equality is also evident in waste management, where women are reshaping the industry by taking on roles traditionally dominated by men.

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Content: Women Breaking Barriers in Waste Management

A quiet but significant revolution is underway in the gritty world of skip hire and waste management, where heavy machinery and hard hats have long been synonymous with the male workforce. Women are securing roles traditionally dominated by men, reshaping the landscape of the waste management industry.

Gender diversity in waste management industries like skip-hire has long been a challenge. Data has shed light on the underrepresentation of women in specialist roles and, industry surveys report that women constitute only 24% of the total waste management workforce in the US.

Historically, we can trace the reason for this gap back to several factors. One significant reason has been the physical nature of the work, often involving heavy lifting, manual labour, and the operation of machinery. These physical demands led to misconceptions that the field was better suited for men. Gender stereotypes have played a significant role, perpetuating the idea that women do not have the necessary skills or interest in waste management.

The United Nations Environment Program (UNEP) has invested extensively in research on the role of gender in waste management. They have deemed it critical to recognise the importance of promoting gender diversity in traditionally male-dominated fields such as skip hire, from gender diversity bringing a wealth of benefits such as providing diverse perspectives to addressing labour shortages that the industry faces.

However, the benefits of promoting gender diversity in the waste management sector aren’t exclusive to women; they extend to their employers as well. According to a recent report by FP Analytics, “Women as Levers of Change,”, companies that actively promote gender equality across all levels have demonstrated tangible positive business impacts. These include heightened competitiveness, increased profitability, and a stronger commitment to environmental responsibility.

Women Breaking Barriers in Waste Management

As attitudes shift towards viewing “waste as a resource”, and the industry pivots away from landfilling towards waste prevention and circular economy principles, more women are discovering the sector as an appealing career choice. From skip truck drivers navigating city streets with finesse to women managing recycling, waste management and skip-hire companies and advocating for diversity, their contributions are reshaping the industry’s future.

Nathalie van de Poel, Commercial Manager and co-creator of the Purified Metal Company (PMC) exemplifies a woman taking a leadership role in the waste management sector. PMC, a state-of-the-art processing plant situated in Delfzijl, the Netherlands, specialises in recycling hazardous steel scrap into premium raw material:

“The idea to recycle asbestos-contaminated steel was born 10 years ago.” Overcoming countless obstacles, including securing €70 million in funding and hiring 30 employees, PMC has finally reached fruition. “It was a long journey, with some saying it was impossible, but we stayed strong and built a solid business case.”

Another example of women leading the way in waste management is Maria Willshee, a founding Director of Willshees, a Midlands-based waste and recycling business. Recognised as a Top 200 UK women-powered business by global private bank J. P. Morgan, Willshee’s secured the 59th position in its annual UK Women-Powered Business Report.

And recognised in last year’s list were sisters Heather Gould and Hilary Hart, principal owners of waste management specialist CSG. Based in Fareham, their four daughters also work as part of the business, while half of its eight directors are women.

Women like Nathalie van de Poel,  Maria Willshee, Heather Gould and Hilary Hart aren’t only contributing to recycling and waste management at the highest level; they are also making a difference at the community level. In 2018, the International Solid Waste Association (ISWA) embarked on a groundbreaking global survey targeting women working within the waste sector. For the first time, this unique endeavour asked women to classify their work using Ad Lansink’s waste hierarchy, often referred to as “Lansink’s Ladder.” The findings from 73 countries revealed that 51.6% of respondents were engaged in waste prevention, reuse/repair, and recycling. Highlighting the substantial role that women play as managers of household waste, their critical contributions form the backbone of responsible waste management and have a lasting impact on environmental sustainability and community well-being.

But how can we encourage more women into the industry as a whole? According to Skip Hire Glasgow specialist James David, fostering inclusivity in hiring practices is a good starting place.

Waste management and skip-hire companies can proactively embrace strategies to foster inclusivity in their hiring practices, by first recognising the importance of a diverse workforce. One such approach is reevaluating traditional hiring processes to be more inclusive. This includes rewriting job descriptions to emphasise skills and qualifications over gender or background, ensuring job postings reach a broader audience through diverse channels, and actively seeking out untapped talent pools. Skip hire companies that prioritise diversity not only bolster their internal culture but also project a positive image to the public and potential clients, positioning themselves as socially responsible and equality-driven businesses.

Partnerships with vocational schools and community organisations can play a pivotal role in encouraging individuals from underrepresented backgrounds to explore careers in waste management and skip hire for example. And this fresh approach, says James David of JustHire, is precisely what the industry needs:

“Inclusivity in hiring practices is not just a moral imperative but also a strategic advantage that propels the skip hire industry forward. We should celebrate the women who are paving the way for a more inclusive, equitable, and diverse industry, for their inspiration and resilience. The further potential for women in waste management and skip hire is promising, and inclusive business practice and a heightened awareness of the positive impacts of gender equality on companies all present a win-win scenario.”

Companies that think creatively about investing in recruitment programs will ultimately benefit the most. By intentionally attracting a more diverse range of candidates, including more women, they can help transform the landscape of the waste management industry for the better.

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Companies that promote gender diversity have seen tangible business benefits, including increased profitability and competitiveness.

To attract more women to roles such as crane operators, construction companies can focus on fostering inclusivity in hiring practices and creating a supportive work environment.

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Content: Careers

Female transit trucker on navigating gender hurdles

Industries traditionally dominated by men are making meaningful efforts to attract more women to their workforces. But just how do they get the balance right?

It’s a concern Irene Naliaka, now in her tenth year as a professional driver working with Sahara Motors, wrestles with.

They transport imported vehicles from the Mombasa Port to Kampala, Uganda.

Her interest in driving led her to seek a job in the field.

"I was desperate for a job and I had to question myself as to what I could do comfortably. I had tried my hand on a lot of things, but then driving earned it."

Women can assume roles in male-dominated areas. But the reality of being a woman only hit Ms Naliaka when she started working.

"Driving for me is a hobby, so it never seemed strange when I took up the work offer. However, I was the only woman on the team but they made it easy for me to blend in."

Ms Naliaka says she has become better at the work with time.

"I am looking forward to driving even harder machines, such as the top loader operators,'' she says.

Her first trip was not easy. ''It was a decision that I had made and I knew that I wanted to drive, but I was not ready for it to be honest. I remember when one of my sisters asked me if I was normal and that I should look for a different job,'' she says.

Read: The future of women at work

As a mother of four with a nine-month-old baby, it was hard for her.

"On my first assignment, I turned up with my baby, I had my son's bag and my bag. My employer thought it was a joke that I was travelling with a little baby, but then I didn't have anyone to look after him and I needed to get the job done," she says

Ms Naliaka's first trip to Kampala took more than 24 hours, whereas drivers are expected to reach Kampala in 16 hours. Many working mothers struggle with the challenges of getting ahead in their careers and the guilt of not being home all the time.

How will I manage to be part of my children's life? Will my absence be worth it? How will I explain to them that I have to be away? These were the questions that stalked Ms Naliaka.

She talks of restraining her duties as a mother and trying to find balance. Mostly, Ms Naliaka would be on the road for four days and get three days to be home and vice versa if the cycle changed.

Before her travel, she says, "I have to make sure I sleep well because our highways can be very terrible. I wake up as early as 5 am so that I talk to my little boys and see them off for school by 6 am."

"I then prepare and leave the house at 8 am because I need to be at the car pickup point by 10 am to manage the clearance process and be ready to leave at around 3 pm. We leave Mombasa in a convoy, which means we have to journey as a team to Kampala,’’ she adds

According to Ms Naliaka, the power of choosing to be a working mom cannot be underestimated. She has to deal with being a fatigued parent though it gets better with time.

How did she find her voice?

"At the beginning of 2013, my husband was involved in a serious car accident, he lost two spinal discs, the L5 and thorax 7 and that left him immobilised. Two years after the accident, I had to find something to do as his medication took most of my savings. So I had to put food on the table and make sure he got his medication. My husband had his reservations at first, but these were his words, 'I know you are a strong woman, you can do it, but this is too hard'," Ms Naliaka says.

She continues, " It was not easy, we had fights in between because of the long absence, but in the end, it worked after he saw that I could do it. At the moment he is slowly regaining his mobility."

Her husband is a maths teacher.

Does she have moments when she feels like she should take a seat back from the industry?

"Yes. When I started, the migration process was a thorn in the flesh situation. I used to waste hours to be cleared and that interfered with my travel back home. But I came to make terms with the slow clearance," she says.

It also meant pacing herself because work and mothering need to be done.

Irene Naliaka poses for a photo on March 04, 2024 at Nation Centre building in Nairobi. PHOTO | BILLY OGADA | NMG

Challenges

"The roads are never the same, the weather keeps changing every time," she says.

"In the Rift Valley, we sometimes get hailstorms just out of nowhere. That's when professionalism comes in, you slow down, use the lights to indicate because you've got to manage your space, use the heater to heat the car and the windscreen to clear the precipitation. There was a time when I couldn't do it because it was too intense, so I'd just pulled over to the roadside and wait for the storm to clear,’’ she adds.

She has also encountered her fair share of ruthless truck drivers.

''Women are naturally wired to be soft, in some cases, you might be driving and enjoying your moment and a truck honks carelessly and it might frighten you to lose track.''

Ms Naliaka also recounts how unfair the male-dominated industry might be for women.

"Men feel we are fighting for their position. From my experience and the type of work I do, men don't want women on the roads. There was a time when a boss told a short lady that she could not drive, but there are short men on the job too," she points out.

Read: What women leaders sacrifice to 'have it all'

As women continue to break through the glass ceiling and navigate their way in the workplace, Ms Naliaka is proud to have had only one accident in 10 years.

"You have to be brave, be yourself, be bold, don't be afraid to speak up because that will always get you through. If it's a 'no, stand firm, if you can't manage it, just speak up. It's always good to ask," she says.

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What are construction and maritime companies doing to promote and aid women in the field?

commit to gender equality in hiring practices

What positive experiences are highlighted in the personal stories of successful women in construction and maritime industries, especially of female crane operators?

Addressing gender pay gaps and providing flexible work arrangements can also help in making these industries more appealing to women.

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New Report Reveals Gender Diversity Is The Answer To New Zealand’s Talent Crisis

Champions for Change’s annual Diversity, Equity and Inclusion Impact Report (2022) has estimated that if we collectively and urgently take bold steps to achieve workforce gender parity by 2030 (defined as 50% female participation in the workforce) an additional $20bn-$40bn* of GDP could be generated for the Aotearoa, New Zealand economy and in parallel, help to address the current talent shortage facing New Zealand business.

Statistics New Zealand data 2022 data shows women make up 47% of Aotearoa’s workforce, but Champions for Change believe an intentional focus on the right interventions to enable women to participate equally across our workforce the 50% target could feasibly be reached within the next eight years.

Key interventions include, addressing unpaid child-care, including better recognition of unpaid work, reducing the amount of unpaid work, and rebalancing it between men and women.

While Covid has made the working world far more flexible which is a positive for the increased participation of women, higher-growth, higher-paid sectors, such as construction, trades apprentices, and digital and technology sectors are still underrepresented by women. Opening up pathways and breaking down barriers for women via targeted education and apprenticeship programmes will be critical in driving higher participation rates by women in these growth industries. Interventions to address attitudinal biases continue to be of the utmost importance.

Champions for Change have themselves taken significant action and made further progress this year. The report announces that Champions for Change organisations have committed to reporting their gender pay gaps publicly*. The collective is also driving change through parental leave policies with a number of Champion organisations making the step to re-engineer their parental leave policies to make them gender neutral – thereby breaking down financial barriers for men to take parental leave and freeing up women to re-enter the workforce.

The report once again shows the shifts of intentional Diversity, Equity & Inclusion policies through the Champions’ ongoing commitment to a 40-40-20 benchmark policy. Through this commitment, Champions reported in its 2022 report at least 40% representation for women across 4 out of 5 management levels with a 6% lift in women represented at General Manager level this year.

The Champions companies continue to outperform the broader NZX50 benchmark, with 26% of Champions for Change organisations reporting female CEOS compared to 14% of the NZX50 companies and Champion organisations reporting an average of 37% female representation on boards, compared to 33% of NZX50 boards and 31% on S&P 100 boards.

To further advance their progress, Champions for Change are collaborating at scale to develop evidence-based initiatives across four workstreams designed to break down historical participation and power gaps within their workplaces. These are; Increasing Gender Diversity, Increasing Māori and Ethnic Diversity, Leading Inclusive Cultures and Influencing the Outside World.

Justine Smyth Co-Chair of Champions for Change says:

“It is positive to see the progress we are making in improving gender representation, which speaks to the benefits of bringing the business community together behind a common goal. But we still have a lot of hard work to do to change the gender pay gap that persists in Aotearoa, across all sectors and all levels of work.

“Having Champions of Change organisations committing to publishing their gender pay gap is an important first step, as what gets measured gets done. It doesn’t make the solutions any easier, and many businesses are grappling with industry-wide challenges built up over many decades. But shining the light on an issue keeps focus on it, and as leaders we shouldn’t shy away from what is hard, but rather be willing to share where we are on the journey, and the action we are taking to create change over time.”

Matt Prichard, Co-Chair of Champions for Change added: “In the five years since our inception, it is clear that Champions have become a force for positive change.

“Today we have more leaders, organisations and industries than ever signed up to the Champions for Change collective – creating greater scale, influence, action and collaboration than ever before. This year’s report argues that if more organisations prioritise gender equity it will unlock significant economic growth for us all. We would love all New Zealand businesses to join us.”

The report contains case studies from NZTE, Fisher & Paykel Appliances, Spark and Sky.

The Champions for Change Diversity and Inclusion report can be found in full at www.globalwomen.org.nz.

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What are governments doing to promote and aid women in construction or maritime industries?

What positive experiences are highlighted in the personal stories of successful women in construction and maritime industries, especially of female crane operators?