Tshepo Maeko, Agriculture: Absa Regional Operations

There are few things more traditional and widespread than agriculture in Africa. While the continent holds around 60% of the world’s uncultivated arable land, Africa remains a substantial net importer of food and has a growing population to feed. Projections are that, by 2050, Africa will have almost doubled its population to two billion, and it is a given that agriculture will play a central role in sustaining and feeding its people.

Agriculture employs close to 50% of the working labour force on the continent, and in sub-Saharan Africa, the sector contributes 23% of GDP. So, why then is agriculture production and the attendant food security so precarious on a continent where farming is such a key feature of life and livelihoods? The one core systemic challenge of agriculture is one of financing the agri-ecosystem.

According to Shalom Ben-Or, Chief Executive Officer of AvenewsGT, developers of an Agri App in partnership with Absa Bank, there is a need to increase finance to the sector. “Despite the size and contribution of the African agriculture sector, financial institutions such as banks contribute only between 2-7% of all lending to agri-businesses.”

This leads to an annual financing gap of USD 180 billion to the agriculture supply chain in Africa. This state of affairs also plays out in the global picture, as emerging markets require $450 billion annually, but receive only $9 billion in financing from financial institutions, leaving a yawning gap.

Tshepo Maeko, Vice President and Head of Agri-Sales: Absa Regional Operations, believes Africa needs to step up its game. Africa relies on more than USD 47 billion worth of food imports to supplement its own food supply, Maeko said.

The lack of consistent financing and support leads to inconsistent productivity and most African agri players will remain small-scale as they can only access small and medium enterprise funding and will never become commercial farmers, according to Maeko. Now Absa is hoping to help change the landscape of agriculture in Africa and create sustainable and impactful agri-businesses.

During a recent webinar hosted by Absa, participants, including Ben-Or and Maeko, spoke of the challenges the sector faces on the continent, but also of the digital solutions, which could help unlock the immense potential contained in Africa’s fertile soil.

One of areas cited as a large stumbling block is the hassle of paperwork; something no farmer has time to deal with when it’s the season to harvest.

The Avenews App allows for the digitisation of all trade documents such as purchase orders, contracts, inventory, invoices, payments, and business contacts, all in real-time. It also allows finance institutions such as Absa to provide tailored financing solutions based on reliable and accurate data.

According to Maeko, Absa is looking to deploy technology that will help Absa collect data, process information, and make informed decisions, which will help Africa fulfil its agriculture potential.

Ben-Or said the inability to increase yields for African farmers came down to trade engagements all along the agriculture value chain between farmers, buyers, and sellers, all of which were still conducted manually and, in some cases, via handwritten invoices.

If the farming entity approached a financing institution with this documentation wanting it validated, the banker will not be able to do so. The informal and poorly documented nature of agri-trade is one of the primary reasons banks struggle to provide capital, Ben-Or said.

Absa and AvenewsGT have worked together since 2017, with AvenewsGT being part of the Bank’s tech incubator programme, and have launched the digital innovation product in Kenya, with further plans to roll out in Ghana, South Africa, Uganda and Zambia and the other markets in which Absa has a presence. Ben-Or said the Agri finance innovation platform had already seen great results in Kenya and was easily adaptable to unique market situations and factors.

AvenewsGT, in collaboration with Absa, has created a digital infrastructure that allows for the exchange of documents and information governing the flow of goods and capital and making payments. This created business identities for each of the participants within the supply chain, all the way from the farmers to the large agri-businesses. These digital identities evolve over time and earn creditworthiness.

The Avenews App can be used on any feature-rich cellular device and includes mobile payment processes, allowing farmers to become digital businessmen and women with the ability to earn a creditworthiness identity, as well as access suitable financing services from supportive lending institutions such as Absa.

As a digital first bank and with a deep commitment to agriculture enterprise on the continent, Absa is determined to lead the way towards Africa realising the immense growth potential in the sector.

By Sazini Mojapelo – Managing Executive: Corporate Citizenship and Community Investments

The recently launched UN Sustainable Development Goals Report 2021 highlights the toll that the COVID-19 pandemic has taken on the 2030 Agenda. In addition to the almost four million deaths due to the coronavirus, between 119-124 million people were pushed back into extreme poverty for the first time since 1998, while globally, the equivalent of 255 million full-time jobs were lost, the Report indicates.

While the pandemic has halted, or reversed years, or even decades of development progress, it has provided a catalyst for significant improvement. Most people want to see a fairer and more sustainable world post-COVID-19 and the coronavirus has changed the way we engage and associate with others. Social distancing has become the norm, and the pandemic is testing many of the assumptions of our highly interconnected, globalised world.

To continue to meet the expectations of our customers, Absa also had to adapt to the new normal, and we were inspired by the ingenuity we saw on the African continent, the adaptability of our people and the possibilities for growth and development. The first six months of the year saw us continue our work in mitigating the impact of COVID-19 on our vulnerable communities and indeed proceed with great momentum in implementing our refreshed Role in Society strategy.

With the building blocks in place to deliver sustainable development in all our markets, we are well-positioned to drive multi-stakeholder partnerships, acting as an “enabler” and “convenor”; linking role players, ideas, and resources to tackle Africa’s challenges and use our influence on policy and policymakers in a responsible, transparent, and accountable manner.

Supporting key economic sectors to drive sustainable growth in the region

Absa has the responsibility to stimulate the growth prospects of Africa, by making a measurable impact on people society and the planet.  Our business units play an integral role in supporting economic growth by providing relevant products and services to our customers and clients that enable national and regional growth.

In the first half of this year, we supported inclusive economic growth at a national, community and individual level, and some examples, among others, include:

• Closed R1.1 billion multi-option trade facility to facilitate economic expansion in the region.
  Onboarded Zambia’s largest FMCG manufacturer and extended a finance facility of R107 million.
• Supported a Ghana-based agri-business start-up, Green Gold Farms, to raise US$1.6 million.
• Created a digital portal making our supply chain accessible to small and medium enterprises.
• Reached and trained 15 018 people across out markets through financial education and tools to improve their long-term financial wellness.

A just transition to net-zero requires a collective effort

We have not only adhered to the Equator Principles since 2009 but became a signatory to the UN Principles for Responsible Banking (PRBs) in 2019 and published our first standalone Task Force on Climate-related Financial Disclosures (TCFD) Report in 2020.  This ensures that we put environmental and social sustainability at the heart of our culture and operations.

Absa supports the just transition to net-zero in Africa, with a firm commitment to financing or arranging more than R100 billion for environment, social and governance (ESG) projects by 2025.

Our Interim Group CE Jason Quinn recently announced the launch of African Rainbow Energy together with African Rainbow Energy and Power (AREP) as an African-led, world-class, renewable energy investment platform. AREP now has approximately R6.5 billion of gross assets, covering 31 renewable assets, making it one of the largest and most diverse independently owned energy businesses in South Africa.

Some of the other ways we helped to mitigate climate change risk from January 2021 to date, include:

• R1.5 billion towards financing one of South Africa’s largest concentrated solar tower projects, with Absa acting as lead arranger.
• A US$150 million certified green loan with the International Finance Corporation (IFC).
• We financed 33 deals, or 46% of South Africa’s renewable energy projects to date, making us one of the leading financiers and the largest funder of renewable energy in South Africa by megawatts financed.
• We sponsor the Daily Maverick’s “Our Burning Planet” project to stimulate public debate, and shift policy around Africa’s greatest environmental challenges.

Positively impacting the communities that we operate in

One of the key imperatives for the Group is to be an active force for good in the communities we serve. During the first half of this year, our social impact investment activities contributed R93.2 million in support of communities along with significant business investment to aid Africa’s growth and sustainability.

Education and continuous skills development are the means for increasing productivity, social participation, and inclusive growth and we are working with leading specialists to help prepare Africa’s youth for the workplace of the future.

From January 2021 to date, we allocated R54.6 million towards education and skills development in the communities we operate.  This included, among others:

• The launch of the Absa Fellowship Programme focused on developing a cadre of authentic, accountable, and ethical future leaders with the potential to play a shaping role in their respective communities on the African continent.
• A cross-skilling initiative that will see up to 240 young people from the tourism and hospitality industry re-skilled after COVID-19-related job losses. This is being done in collaboration with various partners, including CIB clients in the sector.
• Technical, vocational, and digital skills, and academic support to 1 992 unemployed youth.

In the same period, R15.3 million was directed towards promoting just and equitable societies across all our African markets. Of this, we pledged R10 million and provided leadership support towards the newly established Gender-Based Violence and Femicide (GBVF) Response Fund1.

Launched by President Cyril Ramaphosa, the Fund seeks to bring together all sectors of society and serves as a vehicle to mobilise resources to support and enable scalable programmes, targeting both prevention and response to GBVF across South Africa.

We continue to provide support for colleagues, customers and communities impacted by the COVID-19 pandemic, with a further R16 million provided in the first half of 2021 to protect lives and livelihoods.  We work with various partners such as Reel Life, Food Forward SA, and other grassroots organisations to supply food parcels to 3 800 households, and enabled three mobile rural food depots, as well as delivered 700 000 meals.

We also supported the Solidarity Fund and Pink Drive NPC awareness and vaccination campaigns to boost public health efforts. These relief measures were on the back of existing efforts which saw R9.8 billion in cash-flow relief delivered to 613 000 retail and business bank customers in 2020, and R500 million in pricing relief provided to individual customers in 2021.

And most recently, we have committed a further R12.5 million towards relief, recovery, and rebuilding efforts to assist communities after recent spates of civil unrest wreaked havoc in parts of South Africa.

A commitment to putting our purpose into action

We believe in possibility – in the actions of people who always find a way to get things done.

We are creating opportunities for our customers and clients to make their possibility real, by supporting them every step of the way.

As our new post-COVID-19 world order grows more interconnected and even more complex, Absa will now, more so than ever before, play a key role in unlocking Africanacity – bringing our shared futures and Africa’s possibility to life.

Vusi Fele, Chief Procurement Officer Absa Group Limited

When a number of supply chain reports were released pre-COVID-19, business leaders listed risks such as data breaches, cybercrime, IT downtime and extreme weather conditions as their main concerns  – of course, a global pandemic did not feature on anyone’s radar.

According to the World Bank, formal small, medium and micro enterprises (SMMEs) make up 40% of GDP in emerging economies, and this number is significantly higher when informal SMMEs are factored in. Arguably, the key to a prosperous and sustainable future – with enhanced job creation –  will be the SMME sector, particularly in Africa, and the role of major corporates in helping to guide, support, and shape this vital segment.

Ultimately, especially as we navigate a new and uncertain operating environment, the importance of supplier development (particularly in the current South African socio-economic context) cannot be underestimated. But how exactly can we as corporates make it work?

1.    Create (meaningful) opportunities

Small businesses frequently lament their lack of access to credible domestic and international markets. Large corporations, especially those that spend billions annually procuring products and services, can use their procurement budgets to give SMMEs the  boost they need. Opening up opportunities for these businesses to access prominent supply and delivery chains is one of the most efficient and consistent ways in which established corporates can contribute to sustainable entrepreneurship development.

2.       Transfer knowledge

Skills development and capacity building are fundamental to ongoing business success. Business development support, including assessments, training, mentoring, advisory and information, is also critical in enabling SMMEs to become stronger organisations of the future. When SMMEs interact with large corporates, they are compelled to make changes to increase efficiencies. Being part of corporate supply chains also improves access to information, driving technical proficiency and industry innovation.

3.       Provide financial support – where you can

As a bank, not only has Absa designed innovative financing solutions for small businesses, but also offers SMME suppliers in the bank’s supply chain cash flow finance at favourable interest rates, with no collateral required. In fact, in 2019 alone, we made available about R234 million in funding specifically for the benefit of SMMEs in South Africa that supply the organisation with goods and services. Businesses in other sectors can look at streamlining payment processes to ensure suppliers get paid on time, provide complimentary testimonials and reviews to help with new leads or simply recommend suppliers to others in the industry.

There is no doubt that supply chain leaders are building future-fit supply chains that drive company procurement priorities and advance sustainable and social business agendas, whilst simultaneously opening and strengthening the small supplier ecosystem. This is no easy task, however, supporting entrepreneurship through corporate supply chains delivers material benefits to local economic development and transformation and is, therefore, good business.

The ongoing global crisis wrought by the pandemic has forced each of the supplier development value chain partners, the supply chain practitioners, the business strategists, and the economic development policy technocrats, to think and act differently, respond effectively, and build agile yet sustainable programmes going forward. SMMEs, equally, have a lot of soul searching to do in order to be co-creators of solutions, and for them to remain relevant and participate constructively in rebuilding initiatives.

Nic Swingler, Head: Financial Crime Compliance

The potential benefits of using artificial intelligence and data analytics in making banking safer are a constant theme. In reality, however, it is hard to develop the systems and processes required to turn potential benefit into actual benefit.
Absa’s separation from Barclays — a three-year, multibillion rand programme across 12 countries — presented a rare opportunity to do exactly this.

Financial crime is nothing new: It’s been around since the day people stopped bartering and started using gold as a payment system. However, the way in which financial crimes are committed today is much more sophisticated than shaving some gold off a coin to cheat a seller.

The rules sound simple, but in practice it requires the assessment of many hundreds of thousand transactions or customer activities each day.

Money laundering, tax evasion, embezzlement, forgery, counterfeiting, hacking, phishing, vishing and identity theft are just some of the crimes that banks and authorities fight every day and banks’ systems must evolve constantly to remain a step ahead in ensuring that activities are detected and reported to the appropriate authorities.

In fact, the Financial Intelligence Centre Act (Fica) requires that “intermediaries in the financial system must know with whom they are doing business”. Simply put, banks need to know who their customers are, as well as their banking patterns and behaviours.

Strange activity

This goes well beyond just checking a face against an ID document; it also means ensuring that systems can detect “strange” or unusual account activity, such as large sums of money moving around rapidly without an obvious reason.

The rules sound simple, but in practice it requires the assessment of many hundreds of thousand transactions or customer activities each day, just to be compliant.

The traditional way in which to do this is through automated systems, with a set of behavioural rules that flags suspicious or unusual transactions or activities. These flagged transactions are referred to analysts who review the activity more closely.

However, “false positives” are often raised in cases where transactions are flagged but turn out not to be suspicious or unusual, which wastes time and valuable resources. On the other hand, the behavioural rules need to be comprehensive and complete to guard against the risk of not detecting all suspicious or unusual activities.

Absa’s separation from Barclays — which was substantially completed in June after three years — gave us the chance to consider alternative solutions. We implemented a solution which enabled the use of more sophisticated behavioural rules, AI and network analysis, and which could be customised to ensure it was relevant to each of our operations. There were some significant execution challenges but this solution was implemented on time and within budget.

Importantly, we were able to move from just being compliant to becoming more effective at managing financial crime risk. This goes beyond transaction monitoring and knowing our customers, and calls for proactive risk management, data and network analysis as well as investigative and intelligence gathering capabilities. It’s more than just a system or platform; this risk management approach also requires specific human skill sets, which need to work in tandem with the technology solution.

Absa’s separation programme presented us with a rare and valuable opportunity to bring about a step-change in the quality of our financial crime platform and systems.

The solution we implemented allows for customisation of rules, an improved user interface and a more sophisticated ability to design behavioural profiles. It also enabled Absa to add on plug-ins based on data analytics, derived from behaviour, which refined the system’s ability to flag potential financial crime activities.

With the deployment of artificial intelligence tools, we were able to significantly reduce the time spent in assessing alerts and rather re-invest this time in high value risk management activities.

Continuous learning

The system also takes into account customer behaviour, which further improves efficiency and it produces better-quality alerts using a sophisticated behavioural algorithm that continues learning through AI.

Absa’s separation programme presented us with a rare and valuable opportunity to bring about a step-change in the quality of our financial crime platform and systems, which ultimately benefits our stakeholders and customers. And while it doesn’t mean that all risks have been eliminated, our ability to surface and analyse issues has meant that we are better able to manage and mitigate the risks and threats, helping to make Absa a more efficient and a safer bank.

https://techcentral.co.za/how-absa-is-using-ai-to-fight-financial-crime/101647

By Sazini Mojapelo Absa Group Head: Citizenship & Community Investments

Globally, governments, academics, civil society organisations, and businesses are committed to playing their role in realising the United Nations Sustainable Development Goals (SDGs). Plans, strategies, roadmaps, and action plans are being formulated. Seminars are being held; lectures are being staged and SDG content added to courses. Researchers are researching, planners are planning, and teachers are teaching, all mindful and responsive to the science and knowledge ends of the sustainability agenda.

The world however needs to remain true to the intended transformative nature of this agenda. The value of the SDGs and their targets lie in their actual achievement, and success will only be attained with action.

And it is in the action, that Absa believes business can play an important role.  By shifting the emphasis from focus on profit and promises of a brighter future, to actively demonstrating and partaking in how that future is achieved today.

The children’s continent: Investing in Africa’s youth 

There’s a popular Chinese proverb that says “the best time to plant a tree was 20 years ago. The second-best time is now.”

This wisdom also applies when it comes to nurturing future African leaders and investing in the continent’s youth and improving their prospects of employability and entrepreneurship.

Younger populations are usually considered an economic gift for countries. When the share of the working-age population (15 to 64) is larger than the non-working-age share, there is usually a boost in economic productivity, known as the demographic dividend.

This has unfortunately not been the case in Africa, with rising unemployment, limited access to quality education and a gross mismatch between industry needs and the skills being developed. It is now a state of emergency requiring all sectors of society to act.

Africa’s youth dividend continues to grow at an accelerated pace, surpassing Europe and the United States. The average age of an African is 19 years and rapidly getting younger. According to the World Economic Forum, our continent is growing so quickly that by 2050, two in every five children in the world will be born here.

This is going to present a unique challenge. African stateswoman Graça Machel has expressed concern that Africa could become the continent of a billion “angry, underfed, under-educated and under-employed” young people by 2050, unless African governments act to invest in their children.

“Even though our youth have the potential to transform Africa, if neglected, they could exacerbate poverty and inequality while threatening peace, security and prosperity,” said Machel, who also chairs the international board of trustees of the African Child Policy Forum (ACPF).

A future reimagined

While our young and growing population face some of the most complex economic, political, and social challenges in the world, vast resources and largely untapped markets could provide the foundations for a continent-wide renewal.

The SDGs established that young people are a driving force for the required development – but only if they are provided with the skills and opportunities needed to reach their potential, support development and contribute to peace and security.

With a future reimagined, Africa’s youth have the ability to futureproof the continent and leapfrog the Fourth Industrial Revolution (4IR). Young African leaders have a key role to play, as they have the most to lose if solutions are not enacted.

As we take hands to unlock this dividend, we should be inspired and guided by the words of Nelson Mandela: “Education is the most powerful weapon which you can use to change the world.”

It is, however, up to the current generation of governments, private sector businesses and international organisations to ensure that resources are channelled and investment in Africa’s youth is geared at unlocking the demographic dividend.

What is required from the public sector and state actors is to equip the youth to not only obtain quality education, but to tap into this youth dividend. Translating Africa’s increased development potential from the demographic transition into real dividends will require effective and accountable leadership at all levels of society.

It is with this in mind that we have made a very clear commitment to play our role in developing a new generation of accountable, courageous and entrepreneurial young leaders on our continent.

We believe in unlocking possibility, and the top priority for our business is to play a shaping role in society by putting the basic building blocks in place to ensure that Africans, and more precisely young Africans, have the opportunity to reimagine their futures and bring their possibilities to life.

Developing tomorrow’s leaders today

As a proudly African bank with an extensive footprint in 12 African countries and a rich heritage across the continent dating back more than 100 years, Absa believes that we have a critical role to play in developing tomorrow’s leaders today.

One of the most important things that will move this continent forward, is leadership. We have established robust partnerships with several like-minded institutions like the African Leadership University (ALU) and other networks to equip a new generation of African leaders, as it is in the hands of these leaders that Africa will grow and thrive.

But our young people need more than education, they also require critical work, life, business and thinking skills to help them adapt to this rapidly changing world. Following an in-depth analysis of the African operating landscape, we have refocused our education and skills development initiatives and the focal point now rests on preparing young people for the workplace of the future through collaborative partnerships.

This is done with a demand-led approach, and our initiatives support the development of technical, vocational, social and digital skills in line with the requirements of Africa’s key growth sectors.

We offer a curated Absa Fellowship Programme,  focused on developing a cadre of authentic, accountable and ethical future leaders with the potential to play a shaping role in their respective communities on the African continent.

Rapid advances in artificial intelligence (AI), robotics and other emerging technologies are happening in ever-shorter cycles, changing the very nature of the jobs that need to be done and the skills needed to do them.

The Absa Fellowship Programme therefore focuses on supporting students studying towards an undergraduate degree in the study fields of science, technology, engineering, creative arts, humanities, mathematics and digital design/data (STEAHM_D) – all considered critical skills for the growth of a digital economy.

An Absa Fellow is offered a full scholarship, recognising their unique leadership capabilities and competencies. Above all, they also benefit from exposure to a specially curated Leadership Development Programme as well as being mentored by Absa leadership and other industry experts.

Skills to make young people job-ready and employable

We also introduced young people across Africa to our Absa ReadytoWork (R2W) initiative. This is a flagship programme equipping young people with crucial life skills to improve their employability and self-employment prospects, when moving from life at school to entering a new phase of life at work.

We have also just proudly launched the Absa ReadytoWork app, that provides a free training curriculum that covers work, money, people and entrepreneurial skills to help young people transition from the world of education into the world of work. The app also provides a job search functionality and connects young people with each other.

Through the app, young people can:

• Complete the four modules that cover essential money, work, people and entrepreneurial skills.
• Use the CV template to create a CV that will put them head and shoulders above their competition.
•  Search for their dream job by connecting with recruiters via the job’s portal.
• Connect with like-minded individuals on the chat feature.
• Watch insightful webinars by various experts and leaders.

The 548 100 young people, in the African markets where we have a presence, who have completed the Absa R2W programme from 2016 to date, have hugely benefitted from employability skills, work exposure, internships and job placement opportunities.

Also worth noting is Absa’s involvement in assisting the Technical and Vocational Education and Training (TVET) sector to develop mid-level skills and preparing youth for employment, self-employment, and further study.

A skilled workforce, often trained through vocational education, will enhance Africa’s ability to deliver quality goods and services. The sector has the flexibility to offer demand-driven and tailormade occupational programmes (upskilling/reskilling/cross skilling) designed and delivered in partnership with employers.

However, the capacity of the TVET sector to deliver quality programmes responsive to the labour market vary across various markets and our efforts seek to enhance the responsiveness of the sector to accelerate youth transitions into the labour market.

One such an initiative is WeThinkCode, where unemployed youth are trained for entry level jobs as software developers to help them play a meaningful role in the Digital Economy. With a future-forward approach to learning, this programme uses a peer-to-peer style of skills transfer, project-based and blended learning and workplace-based experience.

Another is the general repairer initiative where unemployed youth are trained for entry jobs as general repairers. This is done in collaboration with the property sector; the public TVET college sector; and government. The initiative unlocks demand in the property sector and provides work-readiness training and structured workplace-based learning.

In addition, we are contributing to improving schooling outcomes by supporting the development of an innovative school-based teacher development model.

The model comprises distance learning and ongoing classroom practice support by experienced teachers and psycho-social support by professional mentors. The model is designed to inform the development of an alternative and scalable teacher development model recognised by the Department of Basic Education.

We are here for the ready

Absa has made a very clear commitment to our continent and its youth. We are here for those who are ready to learn, ready to lead, ready to work, grow, change and partner.

Because it’s only when we make sure that “those who are ready” have what they need to start and flourish, do we ensure Africa’s growth and sustainability for the long term. And we need to use our collective bravery, passion and readiness to find creative, ingenious and audacious ways to make all of this possible.

That’s how Africa, its people and Absa will grow, sustainably.

By Shirley Webber; Coverage Head of the Natural Resources Group at Absa

If you were looking for a silver lining during the COVID-19 pandemic and the havoc it has wrecked worldwide, resources and commodities would be it. In fact, resources have performed well during the economic turmoil due to the impact of COVID-19 with gold, for instance, being seen as a safe haven amid the dollar depreciating against most major currencies. Base metals, especially copper, which is often considered a good indicator of the health of the industrial or “real” economy, is trading higher than it was a year ago.

The strength we see in the resources sector comes despite mines in many countries being closed this year for a brief period before being reopened.

Those who follow the oil price will know that its value has more than doubled after its unprecedented sell-off in March 2020. However, whether it will go up or down in the future will depend on several factors, including fuel demand, US crude inventory levels, the weakening dollar, and hurricane season within the oil-producing parts of the United States.

The diamond market was expected to recover during the first quarter, as the midstream sector reduced its stock holding, activity retrieved in the first two months of the year, and prices gained compared with 2019 levels. However, the recovery was short-lived as the spread of COVID-19 and the potential decline in global retail growth led to a significant decline in producer sales. As a result, the industry effectively came to a halt, and with the retail market slowly opening in the US and China, recovery is expected by mid-2021.

With the exception of diamonds, the resources sector can help pull Africa out of the COVID-19-induced slump as the entire ecosystem will reap the rewards of increased economic activity. In addition, greenfield mining projects are a major catalyst for surrounding communities in job creation and supporting small businesses.

A combination of slowly improving oil prices, recent discoveries, and the push towards use of gas as an environmentally friendly energy source contributes to the renewed investor interest in the oil and gas sector on the continent. Africa is one of the leading regions in terms of oil and gas discoveries, including the considerable gas reserves found in Mozambique, Mauritania, and Senegal, all of which will significantly meet the growing demand for gas globally.

The resources sector has experienced an increase in negative investor sentiment over the past few years because of rising production costs, infrastructural challenges, electricity supply constraints, increasing environmental, social, and governance standards, and political and economic instability in certain regions. Despite this, interest in the resources sector across Africa is picking up once again.

This renewed interest is potentially great news for the African continent, which holds over 30% of the world’s remaining mineral reserves and increasing finds of reserves of oil and gas. All these factors place business leaders under unyielding pressure to deliver superior returns to stakeholders.

Front-of-mind for all investors is a stable political and regulatory environment. One of the positives Absa noted at the Mining Indaba earlier this year was Africa’s positive strides in this regard.

Issues such as climate change are no longer “soft” issues that can be tucked away in a sustainability report somewhere. Shareholders and other stakeholders are demanding that the banking sector adopt a responsible approach to funding new projects, which is driving a change in behaviour for all sector participants. The question will remain whether the industry is doing enough regarding carbon emissions to meet the goals of the Paris Agreement on climate change and its deliverables.

Developing an indigenous resources service sector can be challenging because it is capital intensive. To address some of these challenges, there is a need for international companies to partner with local companies to raise the required capital and in-country capacity building and training. The fiscal framework must also be fair and transparent.

In addition, although mining operations across the continent are becoming more sensitive to the role they play in ensuring economic growth and sustainability, Absa as funding partners help in ensuring sustainability too. We do this through site audits and visits because we believe that sustainability should not be dismissed as a “nice-to-have” but is instead a critical part of the funding journey. We are already seeing shareholder activists pushing back against projects that don’t consider environmental and sustainability-related issues.

Ultimately, all the resources sector participants will need to recognise that the sector can no longer be open to exploitation. As a funding partner, Absa is committed to working with organisations who share our values and are prepared to invest responsibly throughout the value chain. As Absa, we see ourselves as a natural partner to clients active across Africa’s natural resources and energy value chain.

By Dr Lesego Rametsi, Group Head Of Health & Wellness

All doctors can vividly remember two moments in their careers: the first baby they delivered and their first patient that died. I am starting to believe that all of us living through this pandemic will add COVID-19 to their notable and most memorable career moments.

At the beginning of March, who could have imagined the way we are living and working now? Who would have imagined we would be homeschooling our children and that businesses, shopping malls and restaurants would completely shut down in an effort to curb the spread of a deadly virus?

As the Group Head of Health and Wellness, I sit on Absa’s multi-disciplinary task team that is coordinating our organisation’s response to this pandemic. As we work, I have been reflecting on my responsibility to my colleagues during this time, not only as a medical doctor, but as a fellow colleague who recognises my service to the greater society.

In African cultures, community is an integral part of our existence and the people around us are essential to our concept of ourselves. In a public health context, this is also true. Touch provides reassurance and comfort to a sick person that they are not alone; we remain connected and able to provide care.

The COVID-19 outbreak has done more than threaten and affect our health. It has disrupted our lifestyles, put strain on our mental health and personal relationships, wreaked havoc on economies and set the course for a new way of living and working.

It has been months since it was first reported, and there is a lot that we still need to learn about COVID-19. We know that people can easily catch the virus from an infected person and that about one in five people who catch the virus require hospital care. We also know that in the absence of a vaccine, our biggest priority right now is to save lives by slowing the spread of COVID-19, to avoid overwhelming clinics and hospitals with too many patients. At present, the most effective way to prevent infection is through social distancing and the return of concepts familiar from our childhoods.

Who among us didn’t have older relatives who constantly reminded you to wash your hands when you came inside or prepared to eat? Or to cover your mouth when coughing, or stop touching your noses, or rubbing your eyes with dirty hands? Similarly, I cannot remember a time when I was not made aware of the need to care for others as well as myself. The vast majority of us that remain healthy are extraordinarily thankful for our good health right now. We also acknowledge how much our health depends on the health and wellbeing of our families and communities and we have to do whatever is required to not get infected or spread the infection.

But what exactly does this mean?

By the time you read this, many countries would either be under lockdown or emerging from a lockdown with restricted social movement.

For many of us, this period has indicated a frightening loss of power. In these uncertain times, it’s important to focus on what we know and can control. This means avoiding the spread of misinformation or fake news, relying on credible medical and healthcare sources for information and adjusting our behaviour to protect ourselves and others.

We cannot stop COVID-19 immediately – all we can do is try to slow it down and see this play out. Globally, there is an urgent effort being made to avoid the devastating scale of infections and fatalities through the observance of social distancing and enhanced hygiene protocols, and to find a vaccine. While individual actions matter, we have to take collective action to contain the disease. Every one of us, wherever we live and work, whatever we earn and believe, must act to stop this virus and influence those within our social circles to do the same.

My hope is that beyond the immediate crisis, we will reflect more deeply on the importance of good health, wellness, sustainable living, and showing care and compassion for one another. In addition, I hope that we learn to be proactive in preventing infection rather than curing disease. We need to guard our bodies and our minds: eat well, rest and look after our physical and mental health. Lean on your families and friends. We will need exceptional resilience during this time, as we re-learn how to engage and adjust to our new way of living.

Even pandemics pass. Let’s continue with acts of service, care and compassion to one another. Let’s use the time available to minimise the effects and care for ourselves and one another in every way possible. One day, we may look back on this crisis as the catalyst for a stronger focus on health and wellness and sustainable living.

Until then, ask yourself: am I doing enough to flatten this curve and limit the possibility of infection? Am I playing my part? I hope so.

Stay safe. Stay informed. Stay home.

Ina Steyn, Absa Group’s Head of Resilience

“Business resilience is now more important than ever before,” says Ina Steyn, Absa Group’s Head of Resilience. “There are so many good stories of how collaboration allowed us to respond to this unprecedented pandemic, over the past couple of months.”

What is business resilience?

A business is resilient when it is prepared and equipped to manage unexpected disruptions to its operations, ensuring continuity for its people and customers. Today, our interconnected world – with its increasingly complex global value chains, frequent natural disasters and rapidly advancing technology – faces a set of new and diverse risks to business continuity.

The new COVID-19 pandemic is an extreme example: a highly infectious pandemic that has massively disrupted global demand and supply. In the past few months, businesses have been forced to switch to remote working. While business leaders across the globe have scrambled to keep in touch with one another and employees remotely, employees have had to figure out how to work from their homes, with their children home from school, internet connectivity issues and limited external supplies. In this context, a clear resilience plan is priceless.

Building Absa’s resilience

Over the past few years, Absa’s resilience team has been building its capabilities and skills, fit for the African Continent. Between the 20 strong team they have more than 100 years of business continuity management experience, and all are accredited members of the Business Continuity Institute.

This experience is supported by the strong relationships developed with senior leaders, business units and other functions across the organization and the continent.

Responding to COVID-19

McKinsey advises that, in a crisis, organisations should appoint a small, cross-functional team that is headed by a respected and experienced internal leader to manage responses from the organisation and stakeholders. But COVID-19 represents a more complex, deeper crisis than the usual reputational problem. It requires coordination not only across the organisation but also across the industry with the Banking Association South Africa, regulators at the South African Reserve Bank and Prudential Authority, government, the National Institute for Communicable Diseases and other stakeholders, such as customers, suppliers and investors.

Regardless of this pandemic, the bank is an essential service that needs to continue operating, which means protecting frontline colleagues and enabling others to work from home. To manage this complexity, it requires cross functional teams to focus on solving problems and making decisions.

This combination of flexibility, cross-functional expertise and leadership support has encouraged a bold, speedy response.

Executing beyond expectations

It’s easy for a crisis of this scale to overwhelm. There’s no previous case study to learn from – nothing like this has happened in modern business history. A resilience team has to be prepared for events like protest marches and drought – not a global pandemic. In this situation, Ina says that collaboration is paramount to keeping the business running smoothly.

“This incident proves that, regardless of your business model, it requires teamwork. Every member of the resilience team and partner in the business has pulled their weight, showing dedicated focus on doing what needs to be done. It’s something to be proud of.” It is one thing to plan for a scenario and quite another to put these resilience plans into effect. Yet, considering the circumstances, the transition to remote working during lockdown in South Africa has been remarkably smooth. Absa’s virtual private network effectively hosts thousands of remote employees at a time.

Without calm, committed teamwork, an effective response to this pandemic would not have been possible. “Ina is understandably proud of the results. “What doesn’t break you makes you stronger”.

“A disaster is something like having to change engines mid-flight – that’s essentially what we’ve done here.”