In this interview, our contributor Adebayo Abubakar converses with Zimbabwean business executive Gugulethu Siso, who is a seasoned entrepreneur with a significant portfolio in Fintech and Logistics. She shared her thoughts on issues around monetary policies, as it relates to the Pan African Payment Settlement System (PAPSS) and the AfCFTA.

Please enjoy.

Adebayo Abubakar: Can you please introduce yourself?

Gugulethu Siso: My name is Gugulethu Siso. I am a serial entrepreneur. I co-founded a “Business 2 Business” [B2B] start-up in Namibia which provides retailers with B2B solutions. The start-up investment grew revenue by 700% and counted giants such as Shoprite-Checkers as clients. I am a co-founder, and the Chief Executive Officer (CEO) of Thumeza, a fintech company that provides credit facilities for companies in the Logistics sector. Thumeza currently serves clients in South Africa, Kenya and Uganda.

Adebayo Abubakar: What is your impression on the level of progress made with the AfCFTA?

Gugulethu Siso: I would say, I am hopeful. But I am just a bit worried about the fact that implementation is taking a bit of time, and the limited number of countries that are actually actively trading amongst themselves. A case in point, Rwanda and Kenya that are trading under the Guided Trade Initiative (GTI), which is strictly within eastern Africa. So, some of the larger economies within the continent, like South Africa, and Nigeria; those guys have not fully keyed into the scheme. That makes me a bit worried about whether we are going to be able to implement movement of goods before the deadline that is forthcoming. So, I am worried about our ability to meet those targeted deadlines.

Adebayo Adebayo: The issue of single monetary policy for the entire continent, how practical do you think it is?

Gugulethu Siso: Practical? Well, I do not think it is going to, quite, be able to work out in the way we want to, bearing in mind the fact that we are working with Central Banks across 55 African economies that have got their own unique ways of handling their monetary policies. Being able to reach a consensus among all 55 of those, and expect them to key into one, I think, is a bit of a moonshot. I am quite optimistic, nevertheless, if we can meet the target, of doing it regional bloc, by regional bloc, if we can get something similar to what ECOWAS is doing, as well as ECA, to happen within the northern southern African blocs. Then probably we may be a step closer to getting it done, as opposed to just trying to unite the whole of Africa without trying to deal with what is going on in each of the regions.

Adebayo Abubakar: PAPSS has been launched, do you see it as an answer to the question of Single Monetary Union for the continent?

Gugulethu Siso: Well, it may be an answer. But once again,I still have the same reservations that I had on the issue single monetary policy, that are still going to be faced PAPSS. Secondly, there is also an issue of resource mobilisation. If possibly the AU could do a bit more to support the agenda, instead of just on a policy basis, by focusing on resource mobilisation basis, I think we could be able to do a bit more, much faster than what we’re seeing right now. I am keeping my fingers crossed though. I think many of us who have businesses that are active across Africa would definitely be direct beneficiaries, should PAPSS be able to get up, and going across the continent.

Adebayo Abubakar: Now that the talk about the issue of cashless Policy is gaining traction, do you think Africa is ready for a cashless AfCFTA?

Gugulethu Siso: I would say, the issue of a cashless economy across the different economies is actually active in places such as East Africa, and to a degree, southern Africa, in a country like Zimbabwe, where there has not exactly been an option but for you to go cashless. That has shown that it is an option. It is a question of changing, culturally, how we view cash. I am well aware that most individuals, as well as most business people, especially, on a more informal basis firmly believe in the need to hold their money, and believe that holding their money gives a bit more trust in being able to transact businesses. So should we be able to change those cultural references as well as to provide more options, that are able to transfer the elements of trust, I believe that going cashless is something that is possible. There are mobile wallet operators across the continent, negating [out-competing] those banks that are already providing those particular solutions.

Adebayo Abubakar: In driving the vision of AfCFTA, do you think the issue of entrepreneurs’ access to credit facility through Afreximbank is enough to get AfCFTA going?

Gugulethu Siso: I would say that looking at Afreximbank as a singular entity where entrepreneurs are supposed to be gaining access to credit facility in order to take advantage of AfCFTA, is extremely unfair. We cannot expect an organisation to solve all of the problems that entrepreneurs in Africa are facing. Secondly, access to credit facility is huge problem, and has got sub-sectors within it. Is it credit for trade? Is it credit to buy asset? Is it credit for working capital financing? Is it credit to pay salary? What kind of credit facility are you looking at? So I would say, if we can invest once again in, and promote some of the solutions that are already on the ground, we ae good to go. A case in point is Thumeza that provides loan for transporters that want to pay for fuel, is an alternative solution to some of the problems that are being faced within individual markets, we may be able to get more towards lubricating the AfCFTA from a credit perspectives, instead of just focusing on Afreximbank, or some of these larger institutions. Additionally, some of these institutions have got their own internal policies that may not necessarily gel with what is happening on the plan from, let’s say, a single trader’s perspectives. If, let’s say you want to obtain a credit facility from a bank, I am not talking about Afreximbank right now, you need to have certain due diligence, have some procedures in place, that capacity to pay back in your business plan and all that. So this already negate or cut out huge part of the business population that would also need access to that credit that would be cut out, if we are only focusing on financial institutions. So, I’d say if we also just focus on alternatives, credit providers within those market already and just spotlight them, we will definitely be able to go a long way towards lubricating the AfCFTA from a credit perspective.

Adebayo Adebayo: Do you think global organisations like the World Bank and IMF have got the back of AfCFTA?

Gugulethu Siso: I think from an external point of view, would it be in the best interest of the World Bank and IMF to back the AfCFTA? If we can do ourselves as Africans well, and have got our Financial institutions, why not, instead of looking out of the continent in order to finance or lubricate (economic) activities that are taking place within the continent. I don’t think that is the right path to follow – looking toward the outside instead of looking inward, in order to solve some of these liquidity problems that we have, instead of depending on external bodies to solve those problems.

Adebayo Abubakar is a Nigerian journalist. You can reach him via email: marxbayour@gmail.com

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