General

WHAT THE NUMBERS TELL US It is estimated that agriculture accounts for 80 percent of global deforestation. Out of thousands of plant species cultivated for food, a mere 200 substantially contribute to the world’s food output, according to “THE STATE OF THE WORLD’s BIODIVERSITY FOR FOOD AND AGRICULTURE” by the Food and Agriculture Organization. Furthermore, only nine of those plants constitute 66 percent of total crop production. This concentration in crop variety has detrimental effects. For example, 23 percent of the global land surface has reduced in productivity due to land degradation. This leads to over $577 billion in annual global crops being increasingly at risk from pollinator loss, as highlighted by the National Park Service. Hunger and Malnutrition The statistics regarding hunger and malnutrition are staggering. Over 811 million people go to bed hungry each night. Around 690 million people are undernourished globally, and chronic malnutrition in children stands at 21.3 percent worldwide. This includes an estimated 14 million children under five who are suffering from acute malnutrition, also known as severe wasting. Tragically, only a quarter of these children currently have access to life-saving treatment. The Role of Small Producers What may surprise many is that fishermen, smallholder farmers, and herders, often the most vulnerable to food insecurity, produce up to 70 percent of the global food supply. Hunger and poverty are most acute in rural communities, whether or not you are a farmer, as stated by Action Against Hunger. Conflict and Hunger Conflict leads to hunger. In 2020, just two years ago from the date of this article, conflict was reported to be the primary cause of hunger for 91.1 million people across 23 countries. Obesity, Food Waste, and Environmental Investments Around 30 percent of the global adult population is either obese or overweight. Conversely, approximately 30 percent of all food produced worldwide is wasted or lost. These figures illustrate a grave story of mismanagement, under-management, and a lack of global responsibility. Only 1 percent of the $700 billion given annually to farmers is used to benefit the environment, according to the Food and Land Use Coalition. This last figure corroborates the tale of a lacklustre global approach to saving agriculture, preserving livelihoods, curing world hunger, and protecting our children. CAN ORGANIC AGRICULTURE FEED AFRICA? The query of whether organic agriculture can nourish the African continent isn’t just a theoretical question; it is a matter of immediate necessity and urgency. As a land rich in biodiversity, yet burdened with challenges of malnutrition, poverty, and climate change, Africa’s pursuit of sustainable agriculture isn’t a mere choice; it’s a commitment to the future. The sustainable and organic agriculture movement in Africa is growing, and the reasons for its essentiality are numerous. Unlike conventional agriculture, which relies on synthetic chemicals and often leads to soil degradation, organic farming seeks to build an ecological balance and foster long-term sustainability. Such practices are especially relevant to Africa, where soil fertility and water retention are key to survival for many communities. Some critics argue that organic farming cannot feed Africa, stating that conventional farming methods can produce significantly more food. This leads to the counter-argument for the continued use of genetically modified organisms (GMOs), synthetic chemicals, and other non-organic practices. But can these short-term gains outweigh the long-term environmental impacts and potential health risks? Evidence is emerging that organic farming is not only feasible in Africa but also thriving in many regions. Sustainable farming practices, which include crop rotations, inter-cropping, and the use of organic fertilizers, are being adopted across the continent, contributing to soil health and reducing the risk of groundwater pollution. In Africa, the allocation of arable land for animal feed and the corresponding consumption of water is not as profound as in the Western world. However, the focus on organic farming still addresses key issues like water efficiency, soil fertility, and the overall harmony with the local ecosystem. Challenges such as funding, access, legislature, data collection, and cultural perceptions do exist, yet the urgency of the situation has prompted various governments, NGOs, and community groups to act. Leaders in African agricultural innovation are showing that large-scale organic food production is possible. For instance, the Rodale Institute’s findings can be applied to drought-prone areas in Africa, showing that “organically grown corn has a yield that is 31 percent higher than conventionally grown corn during years of drought.” This research’s significance extends beyond the United States and can guide African nations in creating resilient and sustainable farming systems. The debate around profitability must also consider the environmental and societal costs. Conventional farming may seem profitable in the short term, but the degradation of soil, loss of biodiversity, and potential health risks may result in long-term costs that Africa cannot afford. Furthermore, the genetic diversity inherent in traditional and adapted seeds in Africa offers a robust foundation for organic farming. The use of these seeds, coupled with indigenous knowledge and practices, can create a more resilient system against climatic stress. In conclusion, to question whether organic agriculture can feed Africa is to question our collective will to invest in a sustainable future. The evidence suggests that not only is it possible, but it’s a pathway that aligns with Africa’s unique environmental conditions and societal needs. Through collaboration, innovation, and a shared commitment to the earth and its inhabitants, organic agriculture in Africa can be more than a dream; it can be a thriving reality. The task ahead is immense, but the rewards – a nourished continent, preserved biodiversity, and a sustainable legacy – are surely worth the pursuit. WHY ARE WE GOING ORGANIC? Organic farming has gained significant momentum over the past few years. While the popularity is often attributed to the improved taste and higher nutritional value of organic produce, the benefits of organic farming extend far beyond consumption and nutrition. Suminter India Organics outlines the five key environmental benefits of organic farming, demonstrating why it can be considered a step towards sustainable agriculture. 1. Reducing Exposure to Harmful Chemicals Conventional farming relies heavily

Definition of Credit Bureau Agencies Credit bureau agencies are specialised organisations that gather, maintain, and share credit information about individuals and businesses. They play a vital role in the financial ecosystem by giving lenders insights into a borrower’s credit history, outstanding debts, payment behaviour, and overall creditworthiness. These agencies thus form a bridge between borrowers seeking credit and lenders needing assurance about the risks involved. Importance of Credit Information in Modern Economies In modern economies, the smooth functioning of credit markets is fundamental. Credit fuels investment, stimulates growth, and enables individuals and businesses to pursue opportunities that might otherwise be out of reach. Accurate credit information helps lenders make informed decisions, reducing the uncertainty associated with lending and encouraging more economic credit flow. It is the glue that holds together the vast and complex world of finance, ensuring trust and transparency. Brief Overview of Credit Bureau Agencies in Ghana In Ghana, the role of credit bureau agencies is gaining prominence. With a growing middle class, expanding business sector, and increasing integration into global financial markets, Ghana’s demand for credit is on the rise. Credit bureau agencies in the country operate under regulatory oversight, working with banks, non-banking financial institutions, and other stakeholders to facilitate responsible lending and borrowing. They have become essential to Ghana’s financial infrastructure, providing the necessary data and analytics to support its evolving credit landscape. THE EVOLUTION OF CREDIT BUREAU AGENCIES IN GHANA Historical Background The history of credit bureau agencies in Ghana can be traced back to the early 2000s when the need for structured credit information became apparent. With a growing economy and expanding financial sector, the limitations of informal credit assessments began to surface. Establishing formal credit bureau agencies marked a significant step towards a more transparent and efficient credit market in Ghana. Regulatory Changes and Legal Framework Crucial regulatory changes marked the journey towards formalising credit information in Ghana. The passage of the Credit Reporting Act in 2007 laid the legal foundation for credit bureau agencies’ operations in the country. It defined their roles, responsibilities, and the parameters they could operate. Subsequent regulations, guidelines, and collaborations with the Bank of Ghana reinforced a robust legal framework that ensured compliance, accuracy, and ethical handling of credit information. These legal provisions fostered an environment that promoted trust, accountability, and professionalism in the credit information sector. Progress and Current Status Over the years, credit bureau agencies in Ghana have shown remarkable progress. From a nascent stage with limited coverage, they have evolved into sophisticated entities, embracing technology, expanding their reach, and refining their methodologies. As of this writing – and I just checked the Bank of Ghana website – Ghana has two licensed credit bureau agencies that offer comprehensive services to financial institutions and businesses. They support various financial products and services catering to Ghana’s population’s diverse needs. The integration of modern data analytics, collaboration with international credit information providers, and alignment with global best practices has further elevated the status of credit bureau agencies in Ghana. They are vital pillars in the country’s financial landscape, actively contributing to economic growth, financial inclusion, and responsible lending. FUNCTIONS OF CREDIT BUREAU AGENCIES Collecting and Maintaining Credit Information Credit bureau agencies collect credit information from various sources, including banks, non-banking financial institutions, utility companies, and other creditors. They compile this data into credit reports containing detailed records of an individual’s or business’s credit history, payment behaviour, outstanding loans, and more. The accuracy and up-to-date maintenance of this information is paramount for its reliability. Analysing Creditworthiness One of the primary roles of credit bureau agencies is to analyse the creditworthiness of borrowers. They generate credit scores by assessing factors like repayment history, debt level, income, and financial stability. These scores represent a numerical summary of the borrower’s credit risk and provide lenders with a quick and standardised evaluation tool. Facilitating Credit Access for Individuals and Businesses Credit bureau agencies facilitate credit access by making credit information available to lenders. In a context where trust is vital, these agencies bridge the gap between borrowers and lenders, allowing more efficient decision-making. By providing detailed credit reports and scores, they support individuals and businesses in obtaining loans, mortgages and other financial products tailored to their needs. Supporting Banks and Financial Institutions in Risk Assessment Risk assessment is a critical part of the lending process for banks and financial institutions. Credit bureau agencies assist in this process by offering insights into the borrower’s financial behaviour and potential risks associated with lending. Their data-driven approach enables financial institutions to make informed lending decisions, balance their portfolio risk, and optimise their lending strategies. IMPACT ON INDIVIDUAL BORROWERS Credit bureau agencies play a substantial role in the financial life of individual borrowers. By objectively assessing creditworthiness, they directly influence various aspects of personal finance in Ghana. Below are the significant areas where their impact is most evident: Home Loans Obtaining a home loan is a significant financial decision for many individuals. Credit bureau agencies facilitate this process by providing banks and lenders with accurate credit information. For example, a strong credit score can lead to a lower interest rate, making homeownership more affordable for many Ghanaians.  Personal Loans Personal loans often provide essential financial support for education, medical expenses, or other personal needs. Credit bureau agencies play a vital role by helping lenders assess an individual’s lending risk. This ensures that loans are provided to those who have the means to repay them, thereby reducing default rates.  Education Loans Education loans are crucial in empowering the youth to pursue higher studies. In Ghana, where education is seen as a pathway to a better life, credit bureau agencies ensure these loans are accessible to deserving students. By analysing the creditworthiness of the applicant or their family, lenders can make informed decisions, contributing to the overall development of the nation’s human capital. Entrepreneurial Initiatives Many individuals aspire to become entrepreneurs, and access to credit is often a critical factor in realising this dream. Credit bureau agencies assist

You will undoubtedly find humility woven into your business journey in Africa. Africa will indeed ground you. It has taught me humility, keeps me down to earth, and my entrepreneurial journey has brought me lessons in modesty, remaining unassuming in the estimation of anyone’s abilities, for the most unassuming person you meet in Africa can wield the greatest of powers. Basically, doing business in Africa will humble you. The sprawling continent of Africa, with its diverse economies, rich natural resources, promising markets, and unique challenges, paints an intriguing picture for entrepreneurs and businesses around the globe. It is a land where potential and pitfalls walk hand in hand, a landscape where each interaction tests one’s resilience, shatters assumptions, and offers immeasurable lessons in humility and growth.  The lure of Africa as a commercial frontier lies in its size, being the second-largest continent with 54 varied nations, and its rapidly changing demographics. The continent’s population is set to double by 2050, making it the region with the youngest and fastest-growing populace worldwide. This signifies a vast consumer base and an ever-increasing labour force, presenting unique opportunities and challenges. Doing business in Africa is akin to navigating through a complex maze. The game’s rules continually evolve, shaped by rapid urbanisation, technological advancements, a rapidly growing middle class, and geopolitical influences. Yet, at the heart of it all lies a central, humbling truth: to succeed in Africa, one must understand Africa. This understanding transcends mere statistics and projections; it involves immersing oneself in the African people’s culture, history, socio-political climate, and aspirations. The Business Landscape in Africa The business landscape in Africa is as diverse as the continent itself, with each of its 54 countries harbouring unique economic climates, growth trajectories, and entrepreneurial ecosystems. Africa is not monolithic but a patchwork of distinct economies with distinctive strengths, weaknesses, opportunities, and threats. One common myth about Africa is the notion of ‘The African Market’ as one homogenous entity. Such a view can be misleading and not reflect the continent’s economic diversity. Each African country has its unique blend of resources, infrastructure, regulatory systems, and consumer behaviour. For instance, whereas Nigeria’s economy mainly depends on oil exports, Kenya’s is more diverse, including agriculture, manufacturing, construction, and the service industry. Yet, despite this diversity, shared challenges transcend national boundaries: infrastructure deficits, regulatory complexities, political instability, and access to finance. These challenges necessitate a degree of innovation and adaptation often unseen in more developed markets. African entrepreneurs have demonstrated an impressive capacity for innovation and adaptation. From leapfrogging technologies to pioneering unique business models, the entrepreneurial spirit across Africa is alive and thriving, driven by a persistent urgency to cater to the deficiencies of our people, today’s and tomorrow’s. Mobile banking serves as a prime example of this innovative spirit. In areas where traditional banking infrastructures were scant, mobile banking emerged to fill the void, providing financial services to millions of unbanked Africans. This ability to adapt and innovate according to local needs has been a critical factor in African businesses’ successful growth and expansion. The diversity and dynamism of Africa’s business landscape offer challenges and opportunities. Success in this landscape requires humility, a deep understanding of local contexts, and a willingness to learn from and adapt to ever-changing circumstances. Learning through Navigating Diverse Markets One of the most salient examples of how businesses have navigated and succeeded in Africa’s diverse markets is the story of mobile money, epitomised by M-Pesa in Kenya. M-Pesa, a mobile money transfer service launched by Vodafone for Safaricom and Vodacom in 2007, is a testament to understanding and adapting to local needs. Within a decade, M-Pesa transformed the financial inclusion landscape in Kenya, reaching the unbanked populations and serving as a lifeline for small businesses. The success of M-Pesa is grounded in its response to a local challenge: the high number of unbanked people coupled with high mobile phone penetration. Safaricom identified this gap and crafted a solution that bypassed the need for traditional banking infrastructure. This isn’t just a business success story – it’s a parable of adaptation, innovation, and the value of understanding the unique needs of diverse markets. However, navigating these diverse markets is not without challenges. Language barriers, cultural differences, regulatory issues, and infrastructure are among the hurdles international businesses may face. For example, Africa’s linguistic diversity can be daunting for companies, with over 2000 languages spoken across the continent. Similarly, cultural nuances and different ways of conducting business can be challenging for businesses accustomed to Western methods of operation. Regulatory complexities can create bureaucratic hurdles, while infrastructure, particularly within rural areas, can be a barrier to delivering goods and services. Yet, these challenges present their lessons. They teach humility, resilience, and the importance of local knowledge. They compel businesses to listen, learn, and adapt rather than imposing preconceived business models or strategies. Overcoming these obstacles often results in more substantial, robust companies well-integrated into their local markets. The Power of Partnership and Collaboration Building successful ventures in Africa often hinges on the power of partnership and collaboration, a lesson embodied by the e-commerce platform, Jumia.  Jumia, often dubbed the “Amazon of Africa”, has built a vast network of partnerships with local sellers across the continent. This has expanded Jumia’s product offering and allowed local businesses to reach broader markets. Jumia’s model recognises the importance of local players, leveraging their knowledge, networks, and capabilities. By partnering with local sellers, Jumia navigates the logistical challenges of Africa’s vast geographical diversity. They utilise local knowledge to understand consumer behaviour and preferences better, allowing them to provide more personalised services. However, the key to establishing these partnerships is humility. Doing business in Africa is not about imposing pre-existing models or ways of thinking. Instead, it requires understanding the intricacies of each market and acknowledging that local businesses, regardless of their size, bring invaluable insights and knowledge to the table. Therefore, humility becomes a critical business component, fostering partnerships that lead to mutual growth and success. The Jumia story underscores