NSIA-ZCG Sign Pact On Infrastructure Investments In Africa

The Nigeria Sovereign Investment Authority (NSIA) and Z Capital Group (ZCG), on Wednesday announced a joint venture partnership to establish a fund focused on infrastructure investments in Africa. This strategic collaboration offers the opportunity to leverage the unique economic and financial opportunities that are currently burgeoning within the African continent. NSIA is an investment institution of the Federal Republic of Nigeria, established by the Nigeria Sovereign Wealth Act (Establishment Act 2011), to manage and invest in a diversified portfolio of medium and long-term funds. While ZCG is a leading, privately held merchant bank comprising private markets asset management, business consulting services, technology development and solutions.  The ZCG-NSIA partnership signifies a significant step toward sustainable and impactful infrastructure investments in Africa, reflecting a shared commitment to economic development, innovation, and climate resilience in the region. This collaboration marks a pivotal moment showcasing NSIA as a partner of choice in leveraging opportunities that align with the African continent’s momentum and upward trajectory in the global economic arena.  Investment Commitment: Under this MoU, ZCG and NSIA will pursue equity, debt, and other blended financial instruments for investments across diverse sectors, including, but not limited to, healthcare, renewable energy, mobility & logistics, energy transition, climate-adaptive infrastructure, digital & social infrastructure, climate-smart agriculture, and green industrialization.  The joint venture is expected to capitalize on the complementary expertise of NSIA and ZCG, combining technical expertise, project management skills, and a deep understanding of the local context to deliver successful infrastructure solutions. In addition, the partnership will prioritize environmentally sustainable and socially responsible practices, aligning with global standards and best practices to ensure long-term benefits. ZCG and NSIA will seek projects that deliver scalable socio-economic impact in Africa, while also generating attractive investment returns and diversification opportunities. Founder, President, and Chief Executive Officer of ZCG, James Zenni “We are pleased to expand our long-standing relationship with the NSIA through this unique partnership that will support our shared investment and socio-economic goals,” said “Given Africa’s rapidly expanding population and its increasing cultural and political influence on a global scale, we see many appealing infrastructure investment opportunities across the continent. We look forward to combining our investing, consulting, and technology expertise with NSIA’s deep expertise in managing large-scale infrastructure projects across multiple verticals as well as pivotal stakeholder relationships to identify and invest in assets that further drive economic development throughout the continent.”  “NSIA is pleased to partner with ZCG on this joint venture that will enable us to pursue compelling investment opportunities in Africa,” “ZCG shares our vision of fostering continued economic growth and innovation across Africa, ZCG also shares our focus on investments in climate adaptive infrastructure to meet the needs of current and future generations of Africans. In collaboration with ZCG, we can deepen existing investments to further support Africans and play a leading role in propelling sustained socio-economic development across Africa,” said, Managing Director and CEO of NSIA, Aminu Umar-Sadiq.

Afreximbank To double Intra-African Trade Financing To $40bn By 2026

African Export Import Bank (Afreximbank) is to double its financing of intra-African trade to 40 billion dollars on a revolving basis by 2026. This bank’s intra-African trade financing stood at billion dollars in 2021. Mrs Kanayo Awani, Afreximbank’s Executive Vice President, made the disclosure at the Intra-African Trade Fair 2023 (IATF) Nigeria High Level Business Roadshow in Lagos. The IATF 2023, scheduled for November 9 to Nov. 15, in Egypt, is organised by Afreximbank, African Union Commission and the Africa Continent Free Trade Area (AfCFTA) Secretariat. The event is a platform for businesses to access an integrated African market of over 1.3 billion people with a gross domestic product of over 3.5 trillion dollars created under the AfCFTA. Awani said that Afreximbank was not only spearheading the IATF to support AfCFTA, but was also at the forefront of supporting African trade and had developed several financing and facilitation instruments to support trade and investments. She said the bank was working with AfCFTA Secretariat to put in place AfCFTA Adjustment Fund to facilitate and provide support through financing, technical assistance, grants and compensation funding to AfCFTA state parties and private enterprises. The official said that this would aid adaptation and effective participation in the AfCFTA. “The Board of Afreximbank has approved and committed one billion dollars to support the funding of the initiative and 10 million dollars grant that will facilitate the establishment and operationalisation of the adjustment fund. “We are also partnering with the AfCFTA Secretariat and AU to ensure a successful implementation of the Pan-African Payments and Settlements System (PAPSS), with the view to facilitating the payment and settlements of trade transactions in local currencies. “This will address the challenge of currency inconvertibility and foreign exchange shortages that hamper intra-African trade,” she said. Awani added that Afreximbank was also leveraging digitalisation through the African Trade Gateway – a digital ecosystem created to facilitate intra-African trade. She said that the ecosystem comprised an integrated and function-specific set of platforms that would help to surmount impediments to cross-border trade. According to Awani, to facilitate the movement of goods, Afreximbank developed the Afreximbank African Collaborative Transit Guarantee Scheme to ensure seamless transportation of goods across multiple borders through issuance of a single technology-enabled transit bond. She said the scheme backed by one billion dollars commitment provided by Afreximbank, would lead to cost saving of more than 300 million dollars yearly. “We have also created an African Trade Facilitation Programme (AFTRAF) through which we are forging strong partnerships with African commercial banks to help them finance intra-African trade. “The Bank is also working with the African Association of Automotive Manufacturers (AAAM), African Union and the AfCFTA Secretariat to develop a viable automotive industry in Africa. “In this context, Afreximbank has developed a one-billion-dollar global automotive financing facility for the automotive industry. “We are also providing support in terms of facilitating the development of regional value chains and the implementation of the Continental Automotive Strategy that was adopted by trade ministers early this year.” She added that the bank was working with the International Trade Centre to train African companies including SMEs on how to export under the AfCFTA. “The training programme provides trade and market information to assist the businesses to identify export opportunities, how to comply with all the export requirements under the AfCFTA as well as how to access finance, payment and settlement, among others,” she said. Awani reiterated the bank’s commitment to working with member-countries to position them to take advantage of the AfCFTA. She said that in an effort to support Nigeria’s industrialisation and export development efforts, Afreximbank had invested over 36 billion dollars in the Nigerian economy since its creation in 1993 through its trade and projects financing. Awani said that the support covered a range of sectors and industries, including energy, transport, financial services, healthcare, manufacturing, and trade infrastructure.