Visa Inc. Chairman Alfred Kelly said the US could go through a small downturn despite global consumer resilience.
(Bloomberg) — Visa Inc. Chairman Alfred Kelly said the US could go through a small downturn despite global consumer resilience.
“I do not know if we avoid a recession, but we will be on the edge,” Kelly said in an interview at the Bloomberg New Economy Gateway Africa forum in Marrakesh, Morocco. “If we have one, it will be very narrow and very short.”
Kelly also criticized a fresh attempt to reform US credit-card networks, which would require banks to ensure their cards offer alternatives to Visa and Mastercard Inc. to process electronic transactions. “The legislation is quite flawed” and could harm consumers as well as providers, he said.
Sovereign Wealth Funds Urged to Fund African Digital Infrastructure (June 14, 12:28 p.m.)
Africa needs money from sovereign wealth funds to build digital infrastructure on the continent, said Strive Masiyiwa, founder and executive chairman of African telecom company Econet Group.
“We’ve probably raised about $1 billion now for data centers, of which about $300 million came from the US sovereign fund,” he said. “And we’re still raising it, so if any sovereigns are ready, just give it to me. I’ll bury it in cables right here.”
Visa to Fund Africa Fintech Startups (June 14, 12:15 a.m.)
Visa Inc., which is investing $1 billion in Africa over the next five years, plans to fund and train financial technology startups to help it tap businesses amd consumers in a continent where McKinsey & Co. estimates that up to 90% of financial transactions are conducted using cash.
The San Francisco-based technology firm plans to train 40 startups and fund a few each year, Andrew Torre, Visa’s president for Central and Eastern Europe, Middle East and Africa, said in an interview at the forum.
Read More: Visa to Aid Fintech Startups to Help Expand Its Reach in Africa
Continent’s Youth Potential (June 14, 11:49 a.m.)
Africa’s very young population presents “great investment potential,” said Roberta Annan, co-founder of the Impact Fund for African Creatives.
Governments need to provide grants, opportunities and access to capital for the youth, which can help reduce risk and persuade the private sector to co-invest with them, Annan said at the Moroccan forum on Wednesday.
Developments in green technology, fintech and farming innovation are emerging as the biggest job creators in Africa and globally, Brian Tippens, senior vice president and chief social impact officer at Cisco Systems Inc., said at the forum.
Africa’s Forests Key to Slowing Global Warming (June 13, 6:05 p.m.)
Africa, home to the vast Congo Basin tropical forest and almost a quarter of the world’s mangroves, needs to monetize its trees to help slow global warming, the head of AFC Capital Partners said.
Forests absorb carbon dioxide from the atmosphere, mitigating against the effects of greenhouse gases by creating so-called carbon sinks. Not enough has been done to monetize their natural assets, Chief Executive Officer Ayaan Zeinab Adam said in an interview Tuesday at the forum.
“When you look at Africa and say what’s the biggest bang for your buck on mitigation, it’s really not energy because we are energy starved. It’s our forest, mangroves,” she said.
Read more: Africa Needs to Monetize Its Trees to Help World Reach Net Zero
Morocco Sees Post-Gray List Boost (June 13, 6 p.m.)
Morocco’s removal from the Financial Action Task Force’s so-called gray list in February will “definitely” make it easier and cheaper to raise debt, Finance and Economy Minister Nadia Fettah Alaoui told the forum. Countries are included on the list due to shortcomings in tackling money laundering and terrorist financing, and are subjected to greater oversight.
Investors have already rewarded Morocco for what Alaoui termed the strong reforms it has enacted and its medium-term agend, she said. Among the steps it has taken is expanding access to social welfare in a country with a large informal economy.
“The moment they see that they can benefit from social security and go to hospital they definitely are willing to pay for their own taxes,” she said.
–With assistance from Antony Sguazzin, Abeer Abu Omar, Matthew Hill, Jennifer Zabasajja, Janice Kew, Souhail Karam, Farah Elbahrawy and Amogelang Mbatha.
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