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Africa’s options if ‘Finance COP’ falls short of expectations

Africa’s options if ‘Finance COP’ falls short of expectations

By Msizi Khoza, Managing Executive for ESG at Absa Corporate and Investment Banking

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By Msizi Khoza, Managing Executive for ESG at Absa Corporate and Investment Banking

In mid-November, world leaders will gather in Baku, Azerbaijan to try agree on a new climate finance target for assisting developing countries in their fight against global warming. African nations will rightly push for a substantially more ambitious goal than the first one – but should nevertheless consider alternative paths forward should COP29 fail to live up to expectations.

At the 2009 climate summit in Copenhagen, wealthy countries committed to mobilising at least $100 billion per year by 2020 to help developing nations adapt to climate change and decarbonise their economies. That promise was notoriously missed, although it was finally reached in 2022, according to OECD estimates.

From the outset, the goal, though welcome, had come under criticism because it lacked ambition. According to the Climate Policy Initiative (CPI), African countries alone would require $277 billion a year in the decade to 2030 to implement their climate plans, which themselves are understated.

The gap between what is currently being provided and what is required is wide and, worse still, growing. Despite contributing the least to climate change – yet being most exposed to its effects – Africa receives only around 2% of total global climate finance flows, CPI data shows.

At 2021’s COP26 in Glasgow, nations promised to decide on a new goal no later than 2024 — which means COP29 in Baku is the time and the place. This makes the upcoming climate conference a pivotal moment in the race to net zero emissions. For the first time in 15 years, wealthy nations will need to agree to a new funding mobilisation target, known as the new collective quantified climate finance goal (NCQG).
This is a clear source of tension that will dominate this year’s COP. Another is how the support is structured. Building off of the just energy transition programmes underway in South Africa, Indonesia and a handful of other countries, there are calls for more international public climate finance to be provided in the form of grants, rather than loans that have the potential to exacerbate debt crises in climate-vulnerable countries.

It is clear that the quantum on offer must be raised substantially, and this will no doubt be at the very top of Africa’s agenda for the summit.
However, there is a real possibility that the negotiations will disappoint, partly because wealthy nations are grappling with other priorities and domestic issues. At the same time, elections in key markets pose risks to sustained climate action in almost every region.

The US, for example, is bracing for a tight election result. If Donald Trump returns to the White House, he is expected to withdraw the US from the Paris Agreement and vastly scale back climate-related spending at home and abroad. Similar political developments are taking place in other major economies.

With this in mind, African countries need to consider how to plug the finance gap in a worst-case scenario. Regardless of what comes out of COP29, climate change continues to advance, and Africa is on the frontlines of the crisis.

A recent study estimates that climate change could reduce incomes on the continent by 30% by 2050 as extreme weather takes its toll on infrastructure, agriculture, productivity, and health. Moreover, as advanced nations move to cheaper and cleaner energy sources, Africa risks becoming less competitive in the global market.

It is therefore critical that the continent finds a way to ramp up investments in climate adaptation and mitigation – irrespective of the level or external support on offer.

This implies the need to innovate by tapping into pools of domestic capital. By developing clear climate action strategies and robust project pipelines, the continent’s pension funds could be incentivised to invest deeper in the emerging green economy, for instance.

Governments could also consider mobilising funding for climate action by placing surcharges on luxury items and fossil fuels, and by redirecting the billions of dollars in annual fossil fuel subsidies. This is by no means a definitive recommendation, but a question worth considering in light of the massive climate financing gap.
In short, Africa may have to become more self-reliant when it comes to climate action.

That said, if the continent presents a compelling vision for itself, it will be better placed to attract global funding flows as well.

Doing so would require strengthening key institutions and planning frameworks, creating an enabling policy environment, developing attractive project pipelines, and refining and enhancing national climate commitments – known as national determined contributions (NDCs). All countries are expected to submit revised NDCs in 2025.

Africa could also push for a global enforcement mechanism for climate finance commitments to ensure they are fulfilled.

This is a critical moment in our collective efforts to avert a full-blown climate disaster. Bold action is needed, and hesitancy will only stall progress right at the moment when it matters most.

Msizi Khoza, Managing Executive for ESG at Absa Corporate and Investment Banking

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Absa Group once again sponsors BEN-Africa Conference on business ethics

Absa Group to once again sponsor BEN-Africa Conference on business ethics

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Absa Group is proud to sponsor, for the second year, the Business Ethics Network (BEN) Africa Conference, taking place from 7-8 November in Accra, Ghana.

This year’s edition of the BEN-Africa Conference takes place at Ghana Communications Technology University under the theme “Agenda 2063 and a sustainable Africa: the role of ethical businesses”.

The conference brings together organisations, leaders and other stakeholders from private, public and non-profit organisations who have a shared passion for ensuring ethical decision-making in all aspects of business practice in Africa. The conference will explore opportunities to leverage the commitment and competence of organisations and leaders in Africa to do business with moral integrity. There will be a specific focus on how ethical business practice can support the African Union-driven Agenda 2063.

According to Absa Group Chief Compliance Officer Akash Singh, Absa’s support for the conference is in line with its commitment to being an active force for good by promoting ethical business practice across Africa. “We recognise that in keeping with Agenda 2063, we believe in Africa’s agency to co-create ethics-based business practices across the continent as we aspire for the Africa we want,” he said.

“On a continent that is currently being ravaged by corruption – according to the African Union, Africa loses more than $140 billion to corruption – ethical businesses that operate in accordance with sound governance principles and integrity stand as one of the strongest weapons against this scourge and other illicit dealings that undermine Africa’s progress,” he added.

As a pan-African business that has presence in 12 markets across Africa, and more than 20 000 Third Party value chain partners, Absa promotes the creation of an enabling environment where businesses with integrity can grow and thrive even as they contribute to the economic growth of Africa. “It is for this reason that we are pleased to be associated with a platform that allows all those committed to the success of Africa to engage and reinforce the importance of business ethics as a foundation for sustainable value creation and growth,” Singh said.

President of the Business Ethics Network of Africa Dr Bryan Robinson said he was pleased to once again partner with Absa as they host what promises to be an insightful and impactful conference. “It is an honour to collaborate with Absa once again as we drive conversations about reinforcing the moral fabric of African communities and businesses, thus promoting moral integrity in all our business dealings in Africa. Once again, we are proud to be associated with Absa as we continue our journey to promote an environment of trust and integrity through dialogue,” he said.

The Conference will also include the Absa BEN-Africa Ethics Supplier Day on 6 November 2024; an event where small businesses will be given an opportunity to participate in the Ethically Aware Supplier Induction Programme. Developed by the Ethics Institute, the training programme aims to help SMEs make sense of the increasing ethical demands on their business and to ensure that they are ethically aware of issues such as bribery, anti-corruption, environmental and human rights practices. It also aims to give them the tools to promote ethics in their organisations.

According to Absa Group Chief Procurement Officer, Vusi Fele, the SME supplier day forms part of the Group’s commitment to ethical business practices and to being an active force for good in Africa by equipping its communities with the tools to operate with moral integrity.

“There is continued pressure on big businesses to ensure that they themselves, along with their suppliers, uphold sound governance principles. At Absa, we endeavour to collaborate with our suppliers to achieve high corporate governance standards,” Fele said.

“This training programme will therefore enable us to support SMEs, whilst demonstrating our commitment to promoting ethically aware businesses that can contribute to building a sustainable economy in Africa, in keeping with Agenda 2063.”

To attend the conference virtually, please register here

For more information about the BEN-Africa Conference, please visit [https://www.benafrica.org/]

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Increased Competition is Redefining Luxury and Affordability in the SA Automotive Sector

Increased Competition is Redefining Luxury and Affordability in the SA Automotive Sector

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South African consumers are experiencing a paradigm shift in the automotive market, with emerging players disrupting traditional notions of luxury by blending in one key aspect – affordability.

For the average South African, this key distinction has proven significant over the past few years as the cost of living, fuel price, and inflation figures continue to escalate unabated, placing a squeeze on household budgets and finances.

The latest Consumer Pulse Survey by credit bureau, Transunion, points to hope on the horizon. Despite the odds, the report notes that consumer optimism rose three percentage points from last quarter, and 27% of survey respondents considered a new car loan or lease. This signals both resilience and renewed confidence in making significant financial commitments, even in a challenging economic climate.

It also suggests that, while macroeconomic pressures persist, there is a growing appetite for investment in personal mobility as consumers navigate the path forward. Consumers are aspirational and are not looking to automakers to reinvent the wheel but keep the basics – innovation, reliability, and advanced technological features.

Charl Potgieter, Managing Executive at Absa Vehicle and Asset Finance said: “The South African automotive market is fundamentally transforming, and the emergence of new brands willing to be at the nexus of affordability, cutting-edge technology, and reliability is proving to be a significant differentiator. The existing and well-established brands aren’t taking this emergence lightly and have responded with better value offerings that offer consumers increased choice.”

According to insights from Absa’s equity research, while 12-month rolling new vehicle sales declined 6% year-on-year in August. Asian Original Equipment Manufacturers (OEMs), that include India, China, Japan and South Korea, have made remarkable strides in capturing the South African market, with their share of new vehicle sales volumes surging by 21% — from 47% in August 2015 to an impressive 68% in August 2024.

This growth, driven predominantly by Chinese brands leading the category, underscores their capacity to democratise access to new vehicles. By offering products that resonate with the needs of an increasingly discerning and value-conscious consumer base, these brands have successfully positioned themselves as key players in making new car ownership more accessible, relevant, and sustainable in the evolving automotive landscape.

Chery, GWM-Haval, Foton, Omoda & Jaecoo and BAIC, are brands making headway as consumer favourites, gaining significant inroads in the market.

It’s not just the price that sets these vehicles apart. New players have recognised that South African consumers want more than just affordability — they expect reliability, comfort, and advanced technology. By delivering on these expectations, these brands have carved out a niche for themselves, offering vehicles with cutting-edge technology, such as advanced safety systems and infotainment options, at a price where this level of luxury and features were not previously available. The established competitors boast more extensive dealer networks, longstanding reputations and lower maintenance costs that will take time for new brands to build.

“The entry of new competitors into the market bodes well for the industry standard as a whole, with intensifying competition compelling all players to continuously elevate their offerings, driving a dynamic cycle of improvement that benefits the consumer while accelerating the pace of technological and design advancements across the automotive sector,” Potgieter said, on the sidelines of South African Autoweek (SAAW) 2024.

In terms of new vehicle sales, Chinese and Indian automotive players are closely followed by Japanese, and South Korean OEMs, which are making notable gains in market share.

As the anchor sponsor of SAAW, which took place last week at the Cape Town International Convention Centre, Absa remains committed to supporting the sector as it navigates this new terrain. Organised by Naamsa | the Automotive Business Council, this prestigious event coincides with the 100th anniversary of South Africa's automotive industry—an important milestone for one of the country’s most vital economic sectors.

Speaking at SAAW President Cyril Ramaphosa underscored the global shift towards decarbonization as both a challenge and an extraordinary opportunity for South Africa's automotive sector. Cultivating private-public partnerships that accelerate the production and adoption of New Energy Vehicles (NEVs) are critical to driving long-term growth, enhancing South Africa's global competitiveness, and contributing meaningfully to the global climate agenda.

NEVs (which include battery electric vehicles, traditional hybrid electric vehicles and plug-in hybrid electric vehicles) accounted for 3% of new vehicle sales volume in August 2024, up 40bp M/M and 150bp Y/Y.

As the automotive industry observes this shift in purchasing dynamics and the evolving paradigm, Absa, a leading pan-African bank and financial services group, is meeting the sector and consumers where they are.

 

Managing Executive at Absa Vehicle and Asset Finance Charl Potgieter delivered the keynote address at the Absa-sponsored Captains of Industry Dinner, held during SA Autoweek 2024 in Cape Town, celebrating a century of innovation and growth for South Africa’s automotive industry. The three day conference also included a range of though-leading panel discussions on various topics of pertinence to the industry, as well as an address by President Cyril Ramaphosa.

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Widespread progress in African financial markets

Widespread progress in African financial markets

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Absa Africa Financial Markets Index scores rise for majority of the countries

There have been clear improvements across countries in the Absa Africa Financial Markets Index 2024. Scores have risen for 23 countries (82%), which is the highest share since the index was first published in 2017.

In its eighth year, the Absa Africa Financial Markets Index evaluates countries’ financial development based on measures of market accessibility, openness and transparency. With support from the United Nations Economic Commission for Africa, coverage in the index has grown to 29 countries this year with the addition of Benin, encompassing approximately 80% of the population and gross domestic product of Africa.

To construct the index, OMFIF conducted quantitative analysis and surveys of over 50 organisations across Africa, including central banks, securities exchanges and regulators, for their data and insights. The aim is to provide the investment community with a benchmark of market infrastructure across the continent, as emphasised by Yasmin Masithela, interim chief executive, Absa Corporate and Investment Banking: ‘The core of the Absa AFMI is about African countries actively building a fit-for-purpose financial market ecosystem, and perhaps the most important developments, are those that reflect direct changes in policy-making and regulation’.

Key findings from the 2024 index include:

  • ESG has been introduced into market frameworks for 23 AFMI countries to broaden their investment appeal.
  • Rwanda is the highest riser in the index this year, as new ESG assets and climate-related financial regulation was introduced in the country alongside an improving macroeconomic environment.
  • Major foreign exchange reforms have been implemented in Egypt, Ethiopia and Nigeria to move towards more market-based regimes. While this does not directly improve scores for the 2024 index, these reforms – if sustained – are likely to bolster transparency and activity in FX markets in the coming years.
  • New assets are becoming available on domestic exchanges, including ESG assets, sukuk bonds and diaspora bonds.

This year, the breadth of improvement can also be seen at the pillar level. In each of the six pillars, more countries improved than reduced their scores. Taking a longer view, there is evidence of notable improvement in Africa’s financial markets, as 20 countries have higher scores this year than when they were first introduced to the index. According to survey participants, key developments since the index was first introduced in 2017 include expanded domestic markets, better access to financial services and enhanced market infrastructure.

As David Marsh, chairman and chief executive officer, OMFIF highlighted ‘anxieties about Africa’s vulnerability have not disappeared, but have been mitigated by strong evidence of robustness in capital market structures’. Despite recent global economic challenges, the continued advancement in developing local financial markets suggests a promising outlook for Africa’s economic resilience and its ability to attract investment.

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22nd Absa Champagne in Africa Festival: A Feast for the Senses

22nd Absa Champagne in Africa Festival: A Feast for the Senses

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Join us for an unforgettable experience at the 2024 Absa Champagne in Africa Festival on 8 November 2024 at the exquisite Summer Place in Sandton. As the title sponsor of this sophisticated event, Absa proudly invites champagne aficionados, culinary enthusiasts, and those who appreciate the finer things in life to join us for a day filled with elegance, and unforgettable experiences.

“The Absa Champagne in Africa Festival is a true celebration of the artistry and elegance that champagne brings to our lives,” shares Sydney Mbhele, Group Chief Marketing and Corporate Affairs Officer at Absa Group.

He continues: “This festival not only showcases the finest French champagnes but also highlights the stories that unite us all, reminding us that at Absa, your story matters.”

The Absa Champagne in Africa Festival is the largest French Champagne festival in Africa, curated in collaboration with the Ambassadeur Dignitaire of L’Ordre des Coteaux de Champagne, members of the centuries-old French order tasked with extolling the virtues of Champagne globally.

This festival is a celebration of this trusted partnership and serves as a world-class and proudly African platform, allowing guests to discover the finer things that embody excellence and “joie de vivre” —an exuberant enjoyment of life.

Step into a world of luxury as they showcase over 40 authentic and distinguished French champagne houses, each offering a unique taste of their finest selections. This festival is not just about sipping champagne; it’s an opportunity to explore the rich heritage and craftsmanship behind each bottle. Guests will be treated to a vibrant atmosphere that brings together the best of the champagne and luxury lifestyle, making it the ultimate destination for enthusiasts and novices alike.

What to expect at the event:

  • Savour Champagne: Delight in the exquisite offerings from renowned French champagne producers, ranging from iconic names to artistic and boutique houses. This is a rare chance to taste, compare, and discover your new favourites.
  • Culinary Delights: Experience an expertly curated gastronomic menu that perfectly complements the French champagnes. Prepare to embark on a culinary journey that will tantalise your taste buds.
  • Cultural Experience: Immerse yourself in a feast for the senses with art installations, live music, and fashion showcases that reflect the elegance of the event. Enjoy the ambience and make memories while mingling with fellow champagne lovers. Each interaction at the festival helps weave the stories of our diverse community
  • Public Access: The Absa Champagne in Africa Festival is open to the public allowing French champagne enthusiasts to be a part of this extraordinary celebration. Come and enjoy an evening of indulgence and entertainment.

A Legacy of Excellence

As the title sponsor, Absa has proudly supported this prestigious festival for over 22 years, previously known as The Absa Champagne Festival.

“In 2021, the event rebranded to the Absa Champagne in Africa Festival, reflecting our commitment to inclusivity and our Pan-African footprint,” says Mbhele. “This year’s festival aims to honour not only the luxury of French champagne but also the stories of resilience and triumph that resonate with our communities.”

He continues, “We are delighted to host the 22nd Absa Champagne in Africa Festival, a true reflection of our legacy and commitment to excellence. This festival embodies the spirit of enjoyment, bringing together the community to appreciate superior experiences, delectable cuisine, and great conversations. We look forward to creating unforgettable moments with our guests.”

Every glass poured and every story shared contributes to a tapestry of experiences that defines who we are. We look forward to celebrating our guests' stories.

Prepare to sip, savour, and indulge with us at this exquisite event! For the latest updates and ticket information, visit Quicket at http://bit.ly/40dZUe5. Tickets for this exclusive joie de vivre are priced at R2250 per person. Don’t miss your chance to be part of this remarkable celebration.

Stay connected with the event and share your experience by using the hashtag #AbsaChampagneinAfrica2024 when posting content. Follow us on social media at X @Absa and Instagram - @absa.africa to stay updated on the festival and join the conversation!

Please click here to find out more

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Absa Group Advances Digital Empowerment and Gender Equality in Tech

Absa Group Advances Digital Empowerment and Gender Equality in Tech

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Absa Group continues to strengthen its commitment to digital innovation and community upliftment through strategic initiatives that deliver tangible, long-term impact. A key component of this commitment is Absa’s ongoing collaboration with Women in Tech South Africa, through which it proudly sponsors the Philippi Village Learning Centre, empowering women and youth with cutting-edge digital skills.

“We aim to be a catalyst for transformation, empowering Africa’s tomorrow, together… one story at a time. Our goal is to help women thrive in tech and shape a future defined by innovation, inclusivity, and shared success,” said Dr. Philile Mkhize, Chief Operations Officer at Absa.

Located in Cape Town’s Cape Flats, the Philippi Village Learning Centre provided crucial resources to over 9,600 individuals in 2023. The centre offers free access to computers, digital skills training, and a safe environment for studying and academic support to residents from Philippi, Gugulethu, Nyanga, Crossroads, and Mandalay.

Philippi Village hosted a hands-on robotics workshop for 25 students aged 10 to 13 on 18 October 2024. This interactive session introduced young learners to the world of programming, robotics, and sensor technology, fostering creativity and critical thinking while inspiring the next generation of leaders in technology.

Through Women in Tech, Absa has also extended its partnership with Amazon Web Services (AWS) to increase women’s access to careers in technology. In 2023, 50 unemployed women achieved AWS Cloud Practitioner certification through this initiative. For 2024, Absa has more than doubled its efforts, upskilling 130 women across South Africa, Zambia, and Kenya, while offering advanced certifications to past graduates seeking to deepen their expertise.

Commenting on the ongoing partnership with Absa, Melissa Slaymaker, Global Partnership Director for Women in Tech South Africa, said, “By 2030, we aim to empower five million women and girls, and Absa stands shoulder to shoulder with us in this mission, actively collaborating to turn this vision into reality.”

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Absa Group and Business Unity South Africa Lead Critical Roundtable on Just Energy Transition: Exploring CBAM’s Impacts and Opportunities to Shape Africa’s Trade and Economic Future

Absa Group and Business Unity South Africa Lead Critical Roundtable on Just Energy Transition: Exploring CBAM’s Impacts and Opportunities to Shape Africa’s Trade and Economic Future

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Absa Group in partnership with Business Unity South Africa hosted a hybrid Carbon Border Adjustment Mechanism (CBAM) roundtable that brought together key industry stakeholders, policymakers, and thought leaders to discuss the implications of the European Union’s (EU’s) CBAM on Africa’s exports, supply chains, and economic sectors.

The discussion highlighted how CBAM presents both opportunities and challenges for African markets as it aims to impose carbon tariffs on imports of carbon-intensive goods such as cement, steel, aluminium, fertilisers, and electricity from countries with less stringent climate regulations than the EU. The policy incentivises sustainable production by ensuring that imports are subject to the same carbon costs as EU-made products.

“Africa accounts for only 4% of global carbon emissions, yet it remains the most climate-vulnerable region. A fair and equitable just energy transition is crucial for Africa to mitigate the economic impact of CBAM, ensuring the continent can transition sustainably without disproportionate financial burdens on its industries and communities. For this transition to happen, governments must create policies and incentives that promote green technologies and enhance carbon reporting.  Strengthening public-private partnerships to develop regional carbon markets will facilitate emission offsets and align with global carbon pricing mechanisms,” said Xolelwa Mlumbi-Peter, Deputy Director-General in the International Trade and Economic Division, Department of Trade, Industry and Competition.

“At Absa, we understand the critical importance of CBAM for our clients and the broader economy. This is a defining moment for African industries to innovate and attract green finance, requiring collaboration among businesses, governments, and financial institutions. While we recognise Africa’s particular vulnerability to climate change, our Net Zero declaration underpins our belief in and support for a Just Transition,” said Punki Modise, Absa Group Chief Strategy and Sustainability Officer.

“Our commitment is to use our financial expertise as an active force for good, empowering Africa’s tomorrow while addressing climate-related risks such as climate finance and green loans. Through our Sustainability, Social, and Ethics Committee, we are dedicated to managing these risks and advocating collectively to ensure a sustainable future for all,” she added.

CBAM presents African businesses with a compelling opportunity to unlock Africa’s potential by strengthening intra-African trade through the Africa Continental Free Trade Area agreement and fostering sustainable regional supply chains. Embracing forward-thinking strategies now, will enable Africa to align with future compliance standards and play a significant role in advancing the global sustainability agenda.

Speaking at the event, Saliem Fakir, Executive Director of the Climate Foundation, said: “Critics argue that CBAM primarily protects the EU’s competitiveness in green industrial development, but its impact will vary across African countries. For example, Africa could face a significant economic hit of up to €25 billion due to the exposure of sectors like steel, cement, and fertiliser.  Lower-income countries like Mozambique face different challenges as half of the aluminium from Mozambique’s Mozal smelter, which exports to the EU, would be affected. Meanwhile, countries like Kenya, Nigeria, and Egypt will experience varying degrees of impact depending on carbon pricing scenarios, though the overall effect on Africa’s GDP is estimated at around 1%. This variation underscores the complexity of CBAM’s implementation and the need for nuanced solutions, as the EU seeks to lead in global carbon pricing while balancing the interests of its industries.”

Insights shared during this discussion concluded that though CBAM presents challenges, it offers African economies a unique opportunity to modernise industries and embrace a greener future. With the right strategies, Africa can leverage CBAM to drive sustainable growth, attract new investments and strengthen its integration into global green supply chains.

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African Development Bank and Absa unveil multi-billion rand financial package to expand sustainable capital markets, boost economic growth for women and youth

African Development Bank and Absa unveil multi-billion rand financial package to expand sustainable capital markets, boost economic growth for women and youth

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The African Development Bank and Absa Group, one of Africa's leading financial services providers, today celebrated a landmark agreement to mark the execution of a transformative financial package aimed at increasing funding for underserved segments, across South Africa and the continent. The target audience includes women-owned businesses, youth entrepreneurs, and small and medium-sized enterprises (SMEs).

In addition to enhancing Absa's regulatory capital, the facility will promote access to finance, deepen domestic capital markets, and ensure continued access to global supply chains for issuing banks in regional member countries, including low-income and fragile states.

The financial package includes:

  • A subordinated sustainability-linked (Tier 2) loan amounting to R1.7 billion, complemented by a non-financial support package of R18 million for capacity building and technical assistance targeted at SMEs, youth, and women-owned enterprises.
  • Subscription of R1 billion into Absa’s inaugural social (Tier 2) bond issuance, with proceeds earmarked for providing affordable housing loans to female homeowners.
  • A trade finance Risk Participation Agreement (RPA) facility valued at $150 million, designed to underwrite the risks of trade transactions originated by African issuing banks, reinforcing Absa’s role as a regional bank.

Several components of the package have already been executed, including the successful issuance of Absa's first Tier 2 social bond on the Johannesburg Stock Exchange in July 2024. The R1 billion proceeds from this bond will be allocated towards affordable housing loans specifically targeting women, empowering them as first-time homeowners in low-income segments.

Leila Mokaddem, Director General of the African Development Bank’s Southern Africa Region, stated: ”This partnership with Absa Group underscores our commitment to driving sustainable and inclusive economic growth across Africa. Through this financial package, we are not only fortifying Absa's capital base but also ensuring that essential funding reaches women, youth, and entrepreneurs, fostering a more equitable and prosperous continent. This collaboration aligns seamlessly with our strategic priorities of supporting Africa’s industrialisation and enhancing the quality of life for its people.”

Absa has secured a R1.7 billion sustainability-linked Tier 2 loan aimed at general corporate business purposes while incentivizing the extension of finance products to women-owned SMEs as a key performance indicator. As part of this agreement, Absa is collaborating with the African Development Bank to enhance skills among both Absa staff and women business owners. A capacity-building training program has been launched to address the unique challenges faced by female and youth entrepreneurs, by providing mentorship and financial solutions.

Charles Russon, Absa Group interim CEO designate remarked: “The finalisation of this package concludes a three-year process that significantly enhances our capacity to fund social initiatives aligned with our commitment to being a force for good. This partnership enables us to increase funding for women and youth in South Africa while facilitating greater trade opportunities across the continent.”

“This partnership aligns with the African Development Bank’s strategic objectives of advancing green, social, and sustainability instruments in the domestic capital markets, supporting African capital market development and regional financial integration,” said Ahmed Attout, Director of the Financial Sector Development Department at the African Development Bank. He emphasised that it is designed to empower Absa to effectively disburse funds for highly impactful social and sustainable economic development initiatives.

The $150 million trade finance facility will drive trade support across Africa, addressing the continent's annual trade finance gap of over $100 billion. This initiative will enhance access to financing for key sectors such as agriculture, transport, and manufacturing, while fostering financial sector development and regional integration.

Left to Right: Ahmed Attout, Director, Financial Sector Department, AfDB; Leila Mokaddem, Director-General, Southern Africa, AfDB; Charles Russon, Absa Group Interim CEO Designate; and Deon Raju, Absa Group Financial Director

Left to Right: Leila Mokaddem, Director-General, Southern Africa, AfDB; Charles Russon, Absa Group Interim CEO Designate and Deon Raju, Absa Group Financial Director

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Bridging the cybersecurity skills gap: Absa Cybersecurity Academy provides 33 students with internationally recognised cyber certificates after 3-year immersive programme

Bridging the cybersecurity skills gap: Absa Cybersecurity Academy provides 33 students with internationally recognised cyber certificates after 3-year immersive programme

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Absa Group, a leading financial services provider in Africa, is proud to announce the graduation of two cohorts comprising 33 talented students from the Absa Cybersecurity Academy. Amidst a global shortage of nearly 4 million cyber professionals, according to the World Economic Forum, this milestone represents not only the accomplishments of these young individuals, but a crucial step in growing the cyber sector.

This year marks five years of the pivotal collaboration between the Absa Group and the Maharishi Invincibility Institute (MII), and three years with the Hein Wagner Academy. By newly partnering with the Hein Wagner Academy, Absa has helped visually-impaired youth become internationally recognised cybersecurity professionals – working as a force for good and increasing diversity and inclusion in the cyber industry.

“When you are visually impaired in the workplace, you have to work twice as hard as the other person who has sight. But now with the right tools, like AI and advanced technology, we can do more things – just as much as a sighted person can do,” said Ncebakazi Tyalisi, Hein Wagner Academy graduate.

The Absa Cybersecurity Academy's comprehensive three-year academic curriculum encompasses formal technical education, practical hands-on experience, intensive personal mastery, real-world workplace skills and soft skills development. In partnership with MII, the curriculum also prioritises conscious-based learning.

"This programme is deliberately holistic, offering not only a technical component. At MII, we prioritise mindfulness, such as transcendental meditation and yoga, to help students regulate their stress and cope with anxiety, fast-paced or high-pressure work environments,” said Taddy Blecher, CEO and Co-founder of the Maharishi Invincibility Institute.

This is the third cohort to graduate from MII, with another cohort of 22 students currently undergoing cyber training. However, this is the inaugural graduation for the Hein Wagner Academy cohort – fostering critical skills development within the visually impaired community.

“South Africa’s visually impaired community is often overlooked, yet it holds immense talent, especially in the realm of technology,” said Hein Wagner, Founder of the Hein Wagner Academy. “Together with Absa, we are committed to building a future where accessibility and inclusion are at the forefront. Through this programme, we have empowered these graduates to step boldly into the future, equipped not only with technical skills but the confidence to inspire.”

Students who graduate from the Absa Cyber Academy will leave with internationally recognised certifications in cybersecurity – providing access to worldwide job placement. This year, Absa has committed to providing internships for 23 individuals from the programme and is actively brokering partnerships with other institutions to help place the remaining graduates for internships and eventual employment.

“This programme equips you in more ways than one. I would really recommend it someone else. I didn’t know anything when I came to the Academy but look at me now. I was the first African blind woman to pass the A+ Network+ Certification Training. I'm a blind pro in the technical space, and I'm confident in my abilities,” said Ncebakazi Tyalisi, Hein Wagner Academy graduate.

The Academy's significance goes beyond helping individual students; it tackles the critical shortage of cybersecurity skills in South Africa. According to the World Economic Forum, 52% of public companies globally say they lack the proper resources and skills as it relates to cyber resilience. In line with its strategic intent to be a digitally powered business, Absa is both creating a resource pool for South African business and meaningfully contributing to the communities Absa serves in by upskilling underrepresented youth.

Manoj Puri, Group Chief Security Officer at Absa Group, commented,"As we look to the future, we remain committed to empowering South Africa's youth by providing opportunities in the cybersecurity field—an industry that can be challenging to enter, but holds immense potential. In an increasingly interconnected digital world, cybersecurity is not just important, it’s essential. We need a new generation of skilled, forward-thinking guardians to protect our digital landscape and ensure a secure cyberspace for all."

A career in cybersecurity provides these graduates with highly sought-after skills and opportunities to work across various industries and countries. In alignment with Absa's commitment to be a force for good in the communities it serves, the Absa Cybersecurity Academy continues to cultivate a robust cybersecurity resource pool within South Africa and international markets.

 Absa Group celebrates the graduation of 33 talented students from the Absa Cybersecurity Academy – in partnership with the Maharishi Invincibility Institute and the Hein Wagner Academy.

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A collaborative journey towards the Sustainable Development Goals

A collaborative journey towards the Sustainable Development Goals

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By Punki Modise

In today’s world, sustainability is no longer a choice but a necessity. The United Nations Sustainable Development Goals (SDGs) represent a global call to action, urging all sectors of society to work towards a more sustainable and equitable future by 2030. South Africa has been making steady progress on this journey, and the 2024 Voluntary National Review (VNR) report, recently published by the United Nations Global Compact Network, highlights the private sector’s pivotal role in achieving these goals.

This is the second edition of the VNR, highlighting how businesses across various industries are contributing to global sustainability efforts. It also reaffirms that the road to a sustainable future is best traveled through strong collaboration between the private and public sectors.

Business Opportunities in Sustainability

The private sector has a crucial role to play in realising the SDGs, but sustainability also presents significant business opportunities. According to the United Nations Business and Development Commission, aligning business strategies with the SDGs could unlock an estimated $12 trillion in market opportunities across various sectors.

This potential for growth is particularly relevant as businesses explore new ways to innovate and tap into untapped markets. The SDGs should be considered not just as a global commitment but as an opportunity for businesses to drive economic growth while creating a positive social and environmental impact.

Companies that fail to embrace sustainability as a core part of their strategy risk falling behind. Investors, consumers, and regulators are increasingly demanding responsible practices, and businesses must adapt to these new expectations or face obsolescence.

Challenges and Strategic Approaches

While the potential rewards of aligning with the SDGs are vast, the journey is not without its challenges. Companies must navigate competing priorities, resource constraints, and the complexities of balancing global goals with the immediate demands of their business environments.

The key to overcoming these challenges lies in a strategic approach. To fully realise these business opportunities, companies must first identify the SDGs most relevant to their operations, set clear targets, and integrate these goals into their governance and decision-making processes. This requires strong leadership, clarity of purpose, and a commitment to continuous learning and adaptation.

Data: Driving Accountability and Innovation

In this journey toward sustainability, data plays a crucial role. As businesses align their strategies with the SDGs, robust data analytics are essential for tracking contributions, identifying areas for improvement, and making informed decisions. A data-driven approach not only enhances accountability but also drives innovation, ensuring that business efforts are scalable and impactful.

The VNR report emphasises the importance of improving the measurement and reporting of sustainable practices. By leveraging data, businesses can better understand their impact on the SDGs and adjust their strategies to maximise positive outcomes. This approach is especially critical as the private sector works to align global goals with local realities.

The Power of Public-Private Collaboration and Stakeholder Engagement

Public-private collaboration, powered by effective stakeholder engagement and data-driven insights, is central to advancing the SDGs. One of the standout themes of the 2024 VNR report is the critical role of public-private partnerships in achieving sustainability goals. The ongoing cooperation between South Africa’s Department of Planning, Monitoring, and Evaluation (DPME) and the Global Compact Network South Africa exemplifies the success of such collaboration. Businesses are working closely with government to drive sustainability initiatives, align operations with societal needs, and leverage public resources to advance environmental, social, and governance (ESG) goals.

Effective stakeholder engagement is central to this approach. The private sector frequently leads or participates in multi-stakeholder partnerships, leveraging collective expertise, resources, and networks to address complex sustainability challenges. By fostering collaborative relationships with government, civil society, and other private sector players, companies like Absa can meaningfully contribute to the SDGs.

Absa played a significant role in South Africa’s 2024 VNR submission, underscoring our commitment to the 2030 Agenda. We are proud to sponsor this collaborative process by creating platforms for stakeholders to share insights, case studies, and prioritize actions that advance the SDGs.

Despite these successful partnerships, the report also acknowledges the challenges posed by policy shifts and bureaucratic inefficiencies that sometimes hinder sustained collaboration. A key recommendation from the private sector is the creation of a dedicated platform for ongoing dialogue between public and private sectors to enhance joint effectiveness and ensure long-term success.

Absa’s Role in the SDG Journey

At Absa, one of our core strategic pillars is to be an Active Force for Good. Our climate strategy is anchored on four key pillars, one of which is promoting sustainability and decarbonization efforts. We are committed to finding a careful balance between environmental stewardship, social equity, and economic growth, while reducing our carbon emissions.

Absa plays a leading role in financing the transition to green solutions by empowering clients to adopt sustainable practices. Our sustainable financing initiatives focus on local communities, enabling them to access capital for green solutions that contribute to the broader sustainability agenda.

In addition to this, climate risk management is a key focus area for Absa. We actively manage both current and emerging climate-related risks through our Enterprise Risk Management Framework. By embedding climate risk assessment and governance into our business processes, we ensure that our operations remain resilient in the face of a changing climate. The 2024 VNR report highlights the role of green financing and inclusive finance products in driving sustainable development, particularly within the financial services and fintech sectors.

Conclusion: A Call to Action

As the 2024 VNR report illustrates, the private sector must see itself as a catalyst for achieving the SDGs. By embedding sustainability into core business strategies, companies can drive innovation, create shared value, and contribute to a more resilient, equitable world.

Absa is proud to be part of this movement, championing sustainability through our commitments and partnerships. As we continue to work together with government, civil society, and other stakeholders, businesses across all sectors must step forward to embrace sustainability, ensuring we accelerate progress toward the 2030 SDGs.

Collaboration and strategic engagement are essential as we chart the path to a sustainable future—one where the private sector, in partnership with the public sector, plays a transformative role in achieving the United Nations’ ambitious goals.

 

Punki Modise is the Chief Executive Strategy & Sustainability at Absa Group