A groundbreaking Public-Private Partnership (PPP) Agreement has been signed between the African Diaspora Central Bank (ADCB), the Republic of Vanuatu Trade Commission – Ghana, and STRATEMA AM GmbH of Germany.
This collaboration focused on Sustainable Economic Development through Diaspora Direct Investments (DDIs), marks a significant step towards achieving sustainable economic growth, social development, and transformative climate action.
Purpose of the agreement
This historic Agreement signed on July 4, 2024, establishes the basis for a broad relationship between the parties, encompassing diverse projects in sustainable development and investments.
The partnership aims to promote mutual success and prosperity by the terms and conditions outlined in the agreement.
Objectives
- Achieving sustainable economic growth
- Fostering social development
- Implementing transformative climate action
- Developing infrastructure in energy, agriculture, and sustainable cities
Principles
The agreement is founded on key principles, emphasizing the integral role of the global African Diaspora as part of the African family and the importance of cooperative efforts to advance climate action within the Sixth Region.
The guiding frameworks include:
- The Treaty Establishing the African Economic Community (1991, Abuja)
- The Treaty of the Economic Community of States, Nations, Territories & Realms of the African Diaspora Sixth Region (ECO-6) (2019, Maroon Territories, Jamaica)
- The Protocol on Relations Between The African Union And The Regional Economic Communities (RECs) (2021, Addis-Ababa)
The parties reaffirmed their commitment to an open African market economy, bolstered by intra-African trade and the strengthening of African nations and peoples.
Immediate actions and financial provisions
Under the terms of the agreement, ECO-6’s treasury within the ADCB will issue funds denominated in African Kingdoms LUMI (AKL), equivalent to US$29,326,500,000 or 27,360,375,000 EURO. These funds will support the development of various projects, with the flexibility to convert some portions into other currencies, including EURO and US$.
Key Highlights:
- Dispersal of Funds: All transactions will be conducted in the respective sovereign currencies of each Party, with a substantial issuance of LUMI to support project development
- Investment Focus: Funds will be invested in regional local entities across sectors, including banks, trade unions, government agencies, enterprises, start-ups, and R&D initiatives contributing to sustainable solutions
- Underwriting of Issuance: A portion of the funds will finance renewable energy reserves, aiming to deliver seven gigawatts (7GW) of solar energy over a 25-year term, aligning with Agenda 2063
- Valuation of LUMI: The monetary value of LUMI is pegged to 100kWh of solar energy or 4 grains of gold (0.2592g), ensuring its role as a stable store of value
HRM King Timothy Macpherson Semako, President of ADCB, said, “This Agreement represents a landmark achievement in leveraging Diaspora Direct Investments for sustainable development. Our partnership will drive economic growth and social progress while addressing climate challenges through innovative energy solutions.”
On his part, HE. AMB. Prof. Hugh Keku Aryee, Vanuatu Trade Commissioner of the Republic Vanuatu to Ghana, said, “We are thrilled to join forces with ADCB and STRATEMA AM GmbH. This collaboration will unlock new opportunities for trade and industrialization, benefiting our regions and contributing to global sustainability goals.”
“STRATEMA AM GmbH is committed to advancing sustainable projects that align with our vision for a greener future. This Agreement underscores the importance of international cooperation in achieving impactful climate action and economic development, said H.E Frank Mosthaf, CEO of STRATEMA AM GmbH.
About STRATEMA AM GmbH
STRATEMA AM GmbH is a Germany-based organization focusing on the development of sustainable projects on a global scale, with particular emphasis on less developed nations. Their expertise spans the entirety of the project life cycle, from conceptualization to realization, allowing them to expedite the gestation process and deploy a higher number of sustainable resources in countries where they are desperately needed. Stratema believes that economic expansion can harmoniously coexist with environmental preservation and societal advancement.
Stratema excels in identifying and cultivating projects emphasizing sustainability, including renewable energy endeavours, ecologically conscious urban development, and critical infrastructure. They integrate advanced technology, future-ready engineering practices, digital innovation, and artificial intelligence for improved performance and efficiency. Stratema’s objective is to support and enable countries committed to fostering a brighter and more sustainable future for the planet and its inhabitants.
About ADCB
The African Diaspora Central Bank (ADCB) represents the financial interests of the global African Diaspora, promoting economic development and financial inclusion across the sixth region.
About the Republic of Vanuatu Trade Commission – Ghana
The Republic of Vanuatu Trade Commission – Ghana facilitates trade and investment partnerships, fostering economic growth and sustainable development in Vanuatu and its partner regions.
Source: My Joy Online
