E-Financial
Investing in Africa’s Value Chains as a Catalyst for the Post-pandemic Recovery
By Stephen Barnes
As Africa looks to rebuild in the aftermath of COVID-19, corridor financing and investing in productive infrastructure will be key to economic recovery and sustained growth across the continent.
The pandemic brought to light Africa’s vulnerable infrastructure network. However, this same weakness now has the potential to be a driving force in the continent’s economic recovery.
Large infrastructure programmes have the potential to unlock Africa’s long-term potential, while also offering immediate employment opportunities for those struggling as a result of the pandemic.
Africa’s core infrastructure networks – water, transport and power – are still very much in development. According to the World Bank, more than half the people living in sub-Saharan Africa, do not have access to electricity.
As a result, there is widespread consensus that the region’s economic development, both in terms of its short-term recovery from COVID-19 and its longer-term prospects, should be led by infrastructure development and maintenance.
However, creating investor confidence will be crucial to attracting the investment required to finance these projects.
While there isn’t a lack of private capital to fund projects across the continent, there is a shortage of bankable investment projects. And despite African governments taking infrastructure investment seriously as a primary driver of post-pandemic economic growth, investors remain cynical about their ability to deliver.
Ineffective project planning, regulatory uncertainty and a lack of depth in local capital in foreign exchange markets is holding projects back and preventing value chains from forming. So, what can be done to restore confidence and get Africa’s infrastructure projects moving?
I believe a large part of the answer to this is in shifting the emphasis from discrete infrastructure projects to the entire value chain associated with it, which will unlock greater multiplier effects.
An example is transport corridors – without reliable routes to market, Africa will not be able to attract the investment required for long-term, sustainable economic growth. Improving the efficiency of transport corridors greases the wheels of trade and promotes economic activity across various sectors within the economy.
A great example of what can be achieved with corridor financing is the Maputo corridor which spans both Mozambique and South Africa. Here investments in port infrastructure led to investment in the N4 highway, which in turn linked up crucial mining towns to the value chain, further driving growth.
With the African Continental Free Trade Area making it easier each year to trade across borders, each dollar spent along a transport value chain has the potential to create multiple dollars of economic benefit.
Distributed energy also has an important role to play in addressing energy supply challenges in sub-Saharan Africa, whether at utility scale or in respect of rooftop solar home systems.
Starsight Energy, a West African Commercial and Industrial energy provider, has deployed approximately 41 MW of generation assets, 33 MWh of storage, and 16,320 HP in cooling capacity across 547 sites in all Nigerian states and Ghana.
It continues to leverage on its strategic relationship with key Original Equipment Manufacturers to deploy state of the art smart technology in order to optimise energy consumption, enabling customers to significantly reduce energy costs, boost profitability and reduce their carbon footprints.
Another example is M-KOPA which focuses on the retail market. The company pioneered and kick-started the wider pay-as-you-go (PAYG) solar market and has been operating for over 10 years with a presence across East and West Africa.
It has built a highly advanced connected asset financing platform, which has provided nearly $400 million in financing that has enabled 1 million customers to access solar lighting, energy-efficient televisions and fridges, smartphones, cash loans, and more.
Benefits realised include replacement of kerosene as source of fuel, thereby avoiding nearly 2 million tonnes of CO2 from entering the climate; healthier living conditions; economic empowerment from savings realised and employment creation; access to information via smartphones and televisions; and business owners being able to operate longer hours and children studying under better lighting for longer hours.
These entities are leading the way in providing energy to Africans. This type of development is key to Africa achieving its goals.
Much has been made of the levelling effect of the pandemic, with businesses, governments and consumers alike communicating and working digitally from their own homes. With the right investment this can provide African businesses with the opportunity to compete on a global scale.
That is why digital infrastructure will continue to be a driving force in Africa’s Fourth Industrial Revolution, as it will also work to empower Africa’s unbanked population.
Africa offers a broad range of infrastructure investment opportunities as build programmes remain a core focus of African governments, particularly as they look to catalyse growth post the pandemic.
Whilst much work is still required to ensure the enabling environments across most markets deliver a greater number of bankable projects, right now there are a broad range of investment opportunities offering investors attractive risk return profiles.
At Standard Bank Group, we have significant experience in the sector and have been involved in financing and advising on a wide range of infrastructure projects across the continent.
We know there are several high potential corridors of growth that investors should consider, particularly in East Africa, including Ethiopia, which is already seeing positive growth despite Covid-19.
Investors should also continue to look at South Africa as a key market and a treat it as the gateway into Africa. Lastly, West African Markets such as Ghana and Nigeria will offer significant investment potential over the medium term.
Stephen Barnes, Global Head: Power and Infrastructure, Client Coverage at Standard Bank Group
Federal Inland Revenue Service (FIRS) has revised its Standard Operating Procedure (SOP) as part of efforts to improve consistency, transparency, and service delivery in tax administration across the country.
According to a statement on Monday in Abuja by Mr. Collins Omokaro, Special Adviser on Communication Strategy and Advocacy to the Executive Chairman of FIRS, the revised SOP offers a unified framework for core tax processes including registration, payment, audit, and enforcement.
“This is about people, experience, and impact. It’s a step toward a tax system that supports voluntary compliance and national development,” Omokaro said.
He explained that while FIRS field offices have long operated with good intentions, inconsistent methods across different locations often created confusion for taxpayers.
The revised SOP, he said, is designed to eliminate such disparities by providing a single, clear roadmap for operations in all of the Service’s over 300 offices nationwide.
More than just a procedural manual, the new SOP is described as a statement of institutional direction, reflecting values that define the future of the Service.
Omokaro quoted Dr. Zacch Adedeji, executive chairman of FIRS, as saying that “This SOP is not just a technical document—it is a declaration of who we are becoming as a service. It reflects our commitment to transparency and service to the Nigerian people.”
The SOP update is one component of a broader reform agenda underway at FIRS, which aims to transform the agency into a fully service-oriented institution.
The changes are also aligned with the ongoing digital transformation within the agency, which is intended to harmonize human and technological systems for faster, more reliable, and taxpayer-friendly service delivery.
Internally, the SOP is expected to enhance operational efficiency and provide a foundation for improved staff training, clearer guidance, and stronger evaluation systems. Omokaro noted that every FIRS employee is expected to study, implement, and embody the procedures outlined in the new document.
“With this rollout, every FIRS staff member has a clear mandate: study it, apply it, and embody it. That’s how we’ll earn the trust of Nigerians,” he said.
The SOP reform is being introduced as part of the Service’s broader mission to reposition itself as a modern tax authority grounded in accountability, consistency, and a shared sense of national purpose.
The move comes as the FIRS continues to modernize its processes, improve tax collection efficiency, and foster a culture of voluntary compliance—all aimed at strengthening revenue mobilization to support Nigeria’s development agenda.
Foreign exchange inflows from domestic sources have reached their highest level in six years, according to a report by the Central Bank of Nigeria (CBN).
The increase reflects a growing confidence in the Nigerian economy and the impact of recent macroeconomic reforms by the federal government.
The CBN’s latest report revealed that foreign exchange inflows into the Nigerian Foreign Exchange Market (NFEM) surged to $5.96 billion in May 2025, representing a 62 per cent increase from $3.67 billion in April. Of this total, 83.2 per cent, $4.96 billion came from domestic sources, marking the highest domestic contribution to forex inflows since 2019.
The growth was primarily driven by a sharp rise in contributions from exporters and importers, which jumped from $655.7 million to $3.11 billion. Inflows from non-bank corporates also rose from $1 billion to $1.11 billion, while individual inflows surged from $15.1 million to $91.4 million. Conversely, the CBN’s own contribution fell significantly from $1.35 billion to $649.8 million over the same period.
Foreign sources accounted for 16.8 per cent of total inflows, rising by 51.7 per cent from $657.4 million to $997.6 million, the highest level in three months. Inflows from foreign portfolio investors climbed by 61.3 per cent to $880.8 million, while other foreign corporates contributed $83.9 million, up 10 per cent. However, foreign direct investments declined slightly by 6.3 per cent to $32.9 million.
The CBN also released its latest Purchasing Managers’ Index (PMI) report, which showed continued business expansion. The composite PMI stood at 52.1 points in May, just below the 52.2 recorded in April. All sectors remained in expansion territory, with agriculture at 53.4, industry at 51.6, and services at 51.7.
Analysts at Cordros Capital said the rise in business activity and forex inflows was due to an improving macroeconomic outlook. “Looking ahead, we expect sustained expansion in private sector activity, underpinned by improving macroeconomic fundamentals such as a more stable naira and moderating inflation. Nonetheless, tight financial conditions remain a potential headwind to broader economic performance in the near term,” the firm stated.
President Bola Tinubu’s macroeconomic reforms have drawn widespread praise from business leaders and international analysts. Africa’s richest man, Alhaji Aliko Dangote, commended the President’s efforts, saying, “Your leadership has been both decisive and reassuring. Your actions have reignited hope for a prosperous Nigeria of today and of the future.”
He highlighted the administration’s removal of fuel subsidies, unification of the naira exchange rate, and pro-Nigeria industrial policy as key achievements. “From the very start of the administration, Your Excellency has worked tirelessly to foster an enabling environment for private sector-led growth,” Dangote added.
Chairman of BUA Group, Alhaji Abdulsamad Rabiu, also praised the administration’s performance. “Under your leadership, we have witnessed real and rapid progress,” he said, pointing to the government’s infrastructure initiatives and policy reforms.
On the global front, credit rating agencies have noted the positive impact of Nigeria’s economic reforms. Moody’s Investors Service recently upgraded Nigeria’s sovereign rating from Caa1 to B3, citing “a more resilient fiscal position, stronger external accounts, and the government’s demonstrated commitment to macroeconomic and structural reforms.”
Fitch Ratings followed suit in April 2025, upgrading Nigeria’s rating from “B-” to “B” and declaring a stable outlook. The agency credited the administration for improved policy coherence, foreign exchange liberalisation, and progress toward eliminating fuel subsidies.
“These have improved policy coherence and credibility and reduced economic distortions and near-term risks to macroeconomic stability, enhancing resilience in the context of persistent domestic challenges and heightened external risks,” Fitch said.
The Office of the Attorney General of the Federation has dismissed reactions trailing the withdrawal of criminal charges against Dr. Nneka Onyeali-Ikpe, the Managing Director and Chief Executive Officer of Fidelity Bank Plc.
In a statement issued on Monday, Kamarudeen Ogundele, Special Adviser to the President on Communication and Publicity, said the decision followed a careful review of the case, which revealed that Onyeali-Ikpe had no direct connection to the alleged fraudulent transactions.
The AGF exercised its constitutional authority to enter a nolle prosequi, effectively discontinuing the prosecution to prevent a miscarriage of justice.
Investigations confirmed that Onyeali-Ikpe was neither the account officer nor the Managing Director of Fidelity Bank when the account in question was opened.
“The decision does not absolve Fidelity Bank Plc from the allegations contained in the charge, which remains pending before the court,” the statement emphasized.
The AGF reaffirmed commitment to justice, fairness, and the rule of law, urging the public to allow the legal process to run its course.
“We urge the public to refrain from speculation or jumping to conclusions. The AGF remains committed to ensuring that all those found wanting will face the full weight of the law,” Ogundele added.
Punch reporters contacted legal analysts and financial experts, who noted that the decision might influence public perception of corporate governance standards within the Nigerian banking sector.
Meanwhile, Fidelity Bank has yet to officially respond to the development.
Beware!, Fraudsters Using our Name to Defraud Investors- NNPCL
FG Plans AgriConnect Initiative Pilot
Human Hacking: When Cyber Criminals Target You
Telcos Hit by Major Outages across Lagos, Enugu, Others
FIRS Launches Revised SOP to Streamline Tax Payment
E-Financial1 day agoCyber Crime: Hackers to Hold Secret Conference 3.0 July 25
General News1 day agoWema Bank Workers, Others Arraigned over Alleged N8.9Bn Cybercrime
Telecom1 day agoGaps on Phone Number Recycling Fuel Identity Theft, Data Breaches- ICIR
E-Financial1 day agoSEC Flags ‘Punisher Coin’ As High-Risk Scheme
E-Business1 day agoFG Enrolls 59,786 Inmates on NIN Platform
General News1 day agoMusic Stars, Comedians Light Up “Evening with Glo” in Ijebu Ode
Telecom3 hours agoTelcos Hit by Major Outages across Lagos, Enugu, Others
News3 hours agoBeware!, Fraudsters Using our Name to Defraud Investors- NNPCL