MainOne, the premier connectivity and data center Solutions Company, yesterday announced that its Data Center subsidiary, MDXi is now an SAP-certified provider of Infrastructure Services for SAP® solutions. This new certification confirms the ability of the company to deliver high-quality cloud and infrastructure operations services for customers running SAP solutions and recognises the company as the region’s first SAP Certified Data Center.
The certification will enable MDXi to host and manage SAP applications utilizing the company’s enterprise cloud platforms, across its private, public and hybrid cloud solutions, via a consumption-based delivery model.
As a SAP-certified provider of hosting services, MDXi will offer a cost-effective yet reliable delivery model for mission-critical applications for customers of SAP. SAP customers that rely on MainOne’s data center for hosting services will be empowered to focus on the business value of their solutions and benefit from reduced operational expenses that a commercial data center provides.
Receiving the certificate, the Chief Executive Officer of MainOne, Funke Opeke stated: “We are pleased to receive the SAP certification for Infrastructure Operations Services, as it validates our commitment to providing world-class data center and cloud solutions in Nigeria. With this certification from SAP, it is now possible for Nigerian enterprises and businesses to host SAP applications in-country on MDXi’s Cloud platform and optimise their accounting processes, data analytics and sales chain management. This will improve response times for SAP applications, ensure data security and assure more cost effective subscription charges.”
In his comments during the certificate presentation to MDXi, Managing Director of SAP West Africa, Kudzai Danha said: ”More than ever, SAP Africa is excited about the SAP HANA® certification of partners like MainOne. The current market demand for attractive business applications in the cloud presents great business opportunities and through SAP HANA, customers can innovate and redesign business processes, capitalising on the agility of this unique platform.”
SAP HANA Cloud is an in-memory platform that runs analytics applications smarter, business processes faster and data infrastructures simpler! It is the foundation for all the data needs of a business, removing the burden of maintaining separated legacy systems and siloed data, so business can run simple in this new digital economy.
The SAP certification process is rigorous and culminates with an onsite audit session to determine that the provider meets all the local and global requirements as stipulated by SAP to run its applications. Some of the criteria include quality and knowledge management, data center, network and connectivity, back up and data recovery, IT service management and project management.
In order to meet this certification requirements, MDXi demonstrated its professional competence in all aspects of infrastructure operations including possessing a comprehensive operations manual, system landscape diagrams, security guidelines, OS access, required technical skills amongst others.
MainOne Attains West Africa’s 1st SAP HANA Certification
$81bn Mobilised in 2015 to Tackle Climate Change
Climate finance totalling $81 billion was mobilised for projects funded by the world’s six largest multilateral development banks (MDBs) in 2015. This included $25 billion of MDBs’ direct climate finance, combined with a further $56 billion from other investors.
The latest MDB climate finance figures are detailed in the 2015 Joint Report on Multilateral Development Banks’ Climate Finance, prepared by the Asian Development Bank (ADB) together with MDB partners: the African Development Bank (AfDB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank Group (IDBG), and the World Bank Group (WBG).
This important contribution to the global climate change challenge was reinforced last year by pledges from all of the MDBs to significantly increase their climate finance in the coming years. They made these pledges in the run up to the COP21 Paris Agreement, the world’s first universal climate accord adopted in December last year by 195 countries.
The report covers the 2015 year and shows that MDBs delivered over $20 billion for mitigation activities and $5 billion for adaptation. Mitigation activities involve the reduction of greenhouse gas emissions through energy efficiency measures and the use of clean, renewable energy sources, while adaptation measures reduce climate vulnerability and increase resilience to climate change through, for example, investing in climate-resilient land-use and water resource management. Since 2011, MDBs have jointly committed more than $131 billion in climate finance.
Among the regions, non-European Union (EU) Europe and Central Asia received the largest share of total funding at 20%; with South Asia receiving 19%; Latin America and the Caribbean 15%; East Asia and the Pacific 14%; the EU 13%; Sub-Saharan Africa 9%; and the Middle East and North Africa 9%. Multi-regional commitments made up the other 2% of the total.
On a sectoral basis, the largest recipient of adaptation funding was for water and wastewater systems (27%), followed by energy, transport and related infrastructure (24%), and crop and food production (18%). Renewable energy received the bulk of mitigation finance (30%), lower-carbon transport received 26%, and energy efficiency activities 14%.
In Africa, where basic energy services remain scarce region-wide, countries are increasingly working to develop their substantial renewable resources to help reverse this trend. To support these efforts, in 2015 AfDB has provided $905 million of its own resources in climate change mitigation finance, backed by $58 million in external resources.
As African countries also look to increase their resilience against climate impacts, particularly in the forestry, agriculture and land use sectors, AfDB has provided $305 million of its own resources, bolstered by $91 million in external funding, to support their adaptation efforts. The Bank is continuously looking for concrete ways to catalyze private sector engagement such as through equity financing, partial risk guarantees, and climate risk insurance.
“At AfDB, we believe that Africa stands at the threshold of an exponential shift in clean energy access, and that over the coming decades African citizens can benefit from a widespread increase in climate-friendly energy use and green development. We have set ambitious goals for our institution to help ensure this happens, supporting innovative projects in solar, wind, geothermal, and water,” said Alex Rugamba, Chair of the Bank’s Climate Change Coordination Committee (CCCC). “In line with our member countries’ requests in preparation of the Nationally Determined Contributions (NDCs) regime, we have particularly focused on institutional capacity building, increasing our support for technical assistance (TA) five-fold from seven projects to thirty-five projects in one year. As countries work to align their development goals with their pledged NDCs in the Paris Agreement, we believe this focus on strengthened capacity is an early signal of commitment to meet these goals. Going forward, this could be an important new area of engagement.”
Given the role of MDBs in catalyzing finance, the inclusion in this year’s report of a common tracking approach for climate co-financing is a significant step forward in making the reporting of climate finance flows more robust and transparent.
MDBs have also been working closely together to harmonize reporting on greenhouse gas emissions and the use of proceeds from MDB green bonds.
Moving forward, the report notes that the MDBs will scale up climate finance activities across multiple sectors, in particular in renewable energy and energy efficiency; low-carbon and climate-resilient cities, regions and industries; low-carbon transport; natural resource efficiency; and climate-smart agriculture and food security.
These efforts will help countries meet their commitments under the Paris Agreement, moving to a low-carbon, more resilient future.
Kaspersky Anti-Ransomware Free for Businesses
Kaspersky Lab has launched Kaspersky Anti-Ransomware Tool for Business –a free software that offers complementary security to protect corporate users from ransomware. To identify ransomware behaviour patterns and protect Windows-based endpoints, Kaspersky Anti-Ransomware Tool for Business leverages two groundbreaking technologies: Kaspersky Security Network and System Watcher [1]. System Watcher’s unique capabilities include the possibility to block and roll-back harmful changes.
Malicious programmes such as ransomware, that infect computers and encrypt critical corporate data, present a serious problem, especially for small businesses.
According to Kaspersky Lab’s global IT Security Risks 2016 survey, nearly 42% of SMBs fell victim to ransomware in the last 12 months. 34% of these paid the ransom and one in five weren’t able to recover their data, even after the demands of cybercriminals were met.
While businesses are encouraged to utilise many additional protection technologies and approaches to achieve efficient security, Kaspersky Anti-Ransomware Tool for Business provides complementary security to those companies that do not have advanced Kaspersky Lab security solutions. Kaspersky Anti-Ransomware Tool for business is a fast, lightweight solution, able to solve one of the greatest security pain points that leads to financial losses for SMBs – ransomware, and in particular, its most dangerous form – Cryptomalware. Cryptomalware activity results in unrecoverable encryption of valuable business documents and forces businesses to pay a ransom to attackers to get their data back. To address this problem and protect Windows-based endpoints, Kaspersky Lab Anti-Ransomware Tool for Business combines two core technologies:
Kaspersky Security Network, a cloud-based service dedicated to processing depersonalised cybersecurity-related data streams from millions of voluntary participants all over the world. With Kaspersky Security Network, delivery of Kaspersky Lab security intelligence happens in a matter of seconds, ensuring fast reaction times and maintaining high levels of protection.
System Watcher is an advanced proactive security technology that scans all important system events, including the creation and modification of operating system files and configurations, programme execution and data exchange over the network. Events are recorded and analysed, and if there is evidence that a programme is performing malicious operations, those actions can be blocked and reversed, preventing further infection.
“In 2015 Kaspersky Lab’s solutions protected 443,920 users and corporate customers worldwide from crypto-ransomware, depriving cybercriminals of nearly $53 million in illegal earnings. Our experts are monitoring the rising problem of cryptomalware and have developed this simple tool, available free of charge, to help combat the increasing threat of ransomware to business-critical assets. Small and medium sized companies do not usually have the profound security expertise required to evaluate or compare dozens of security tools on the market. Kaspersky Anti-Ransomware Tool for Business is compatible with third-party security solutions, and is a complementary measure against ransomware. We decided to distribute it free of charge to give companies the opportunity to evaluate the power of Kaspersky Lab technologies”, said Konstantin Voronkov, Head of Endpoint Product Management, Kaspersky Lab.
The free Kaspersky Anti-Ransomware Tool for Business is compatible with the third-party protection solutions installed on PCs and can serve as second opinion software for the most advanced crypto-ransomware protection.
As a complementary anti-ransomware solution, Kaspersky Anti-Ransomware Tool for Business provides core corporate users with advanced protection from ransomware.
For organisations that demand the best protection for each network level, including security technologies to protect workstations, file servers and mobile devices from all types of malware and today’s sophisticated attacks, Kaspersky Lab recommends using specialised business solutions:
If an organisation has had its data locked, it is worth checking whether it is possible to recover it by visiting the new online portal, No More Ransom.
The No More Ransom project provides users with several decryption tools to help recover files that have been locked by some types of the ransomware, without having to pay the cybercriminals.
Embraer to Sack 4000 Staff
Brazilian plane manufacturer, Embraer announced plans to reduce its workforce by 20% through voluntary layoffs of around 4000 employees, mainly in production and administration units due to global economic recession.
The company noted that around 90% of its revenue comes from exports and the economic crisis has affected demand in mid-sized passenger jets market. In order to reduce the negative impact on the development of new aircraft, such as KC-390 tanker or E190-E2 jet, the reduction of engineering division workforce will be minimal.
Most of the job eliminations will come in Brazil, but there will be layoffs in Embraer’s plants in China and Portugal as well. Through voluntary layoff program, the company expects to save around $200 million per year.
Recently, Embraer lowered its financial results forecast for 2016. The company‘s consolidated revenue will be lower by $200 million and is expected to be $6.2 billion. Planemaker expects delivery of 80 light and 45 large aircraft, compared to 85 and 50 originally planned.
Global Airlines Financial Monitor July
• The initial financial results from Q2 2016 point to another solid quarter for industry profitability and cash flow;
• Global airline share prices increased by 5.9% in July, but they remain well down on where they started the year;
• Brent crude oil prices fell back sharply in July, driven largely by a near-term glut in supply. The futures curve has shifted down in recent weeks, with oil prices now expected to remain below $55/bbl for the foreseeable future;
• Yields have fallen by around 6.5% year-on-year in constant exchange rate terms in 2016. Ongoing downward pressure on yields is expected to provide further stimulus to demand during the rest of the year;
• The premium segment continues to offer an important buffer for overall airline financial performance. Premium airfares have held up better than their economy counterparts on many of the main premium routes so far this year;
• The global air passenger market grew solidly in annual terms during H1 2016. That said, the upward trend has eased in recent months on the back of modest economic growth and cumulative impacts of terrorist attacks;
• The latest freight volumes data point to an improvement from the weak conditions seen earlier in 2016. But familiar headwinds persist, and low freight loads are keeping downward pressure on cargo yields and revenues.
Niger Ins CEO: ‘FG Should Reduce Tax on Insurance Firms’
At the recent Annual General Meeting [AGM] of Niger Insurance Plc in Abuja, Business Journal had a chat with Mr. Kolapo Adedeji, Group Managing Director/CEO of the company on various issues in the insurance sector and national economy.
Kolapo Adedeji, Managing Director/CEO, Niger Insurance Plc
How is Niger Insurance able to pay dividend to shareholders despite the harsh operating environment?
ANS:
To every company, you have important stakeholders. One, the people that have put this company together and give us the opportunity to run it and that is the shareholders. They are very important. Another set of important stakeholders to us are the employees. They are very important set of stakeholders.
Most important are the customers and again the government. When you talk about the customers, it is a subset of the society. So you have to also have consideration for the society and that is why we talk about corporate social responsibility.
We don’t give money to the shareholders. We deliver value to all stakeholders including government in the area of taxation, giving back to the society through Corporate Social Responsibility, for employees, you have to make them happy so that they can bend down and do the work for shareholders- they are the ones that have put the company together and given us the opportunity to have a stake.
So- we have been very consistent in rewarding them over the years because they are diverse; you have retirees, working class people, you also have people that are there for the purpose of growing their businesses.
The Board considers these and tried to maintain the tradition of rewarding them consistently. We try to make their reward unbroken over the years-that is the tradition we have decided to follow. It also makes them to identify with the company and continue to give their support.
We know that times are hard but it is a passing phase. After the rain come the sunshine; so we believe there is still light at the end of the tunnel.
Nigeria is now officially in a recession. How will that affect insurance business in the country?
ANS:
To me, you know in economic circle, you have a period of boom and period of bust. As a country, we had our period of boom when the price of our major source of revenue that is oil went as high as $120 per barrel.
Now, we are in recession and government is facing a major challenge. I believe that running government is about spending money. I believe in making savings but part of the spending should be spent on infrastructure that can also lead to greater generation of income by the masses.
We are in recession and government’s earning is coming down but government is still the biggest spender, meaning that what will flow from government into the economy is driven by what government has been able to save before now and what it is making at present.
But is also a challenge really because whether we like it or not is part of our revenue may be in the short run, because government is still the biggest spender. But to cushion that effect, that is why we said there is need to empower ordinary citizens but again, if the disposable income of the ordinary citizen is also going down because-one, am not saying the salaries are being delayed but what l am saying is that purchasing power is weakened now because there is also inflation, especially if you look at the foreign currency exchange rate, you see that purchasing power has really dropped and if that happens, it will affect insurance business.
You know insurance is always last in the scale of preference. Because- first, you talk about food, children’s school fees, housing, you know today’s landlords among others, before you talk about insurance.
So you have to attend to these basic needs of life. So, if inflation has eroded items one and two, you know what will be left for insurance. So it is going to present a lot of challenges to come out of it because this is a service, now you are trying to project better in terms of awareness, creating new products. So I want to believe that it will really affect the industry because if you look at it, talk about the performance of the budget, all of us are sitting on the national economy now that they have capital vote being released, about N248 billion, if you look at that, is between 55, 60 percent of the budget because of the dwindling revenue, so if budget is not going to perform 100 percent, it is really going to be difficult to set target. The honorable minister has just told us that we should expect a turn-around from third quarter.
The government is looking at alternative ways of growing the economy. How can the government enhance performance of the insurance sector?
ANS:
Well, let me first of all say that government has taken the right step when you talk about repositioning the economy.
You must have read about the creation of municipal pool, this is meant to increase capacity to underwrite big ticket businesses. Also, I want to believe that the local content development policy of the federal government is doing a lot. Most businesses that before now go abroad are now insured here.
But we too must grow capacity, especially as the honorable minister of finance was talking about recapitalisation-because your business terms are sometimes a function of your capital. But I don’t want it to look like contradiction because government is looking at other sources of income other than oil and gas- what they should look at again is the taxation. I don’t want it to look as if we are complaining but government’s taxation regime is not too favorable to attract investors because if you are looking in the direction of this industry, it means that the ones that are supposed to bring in money to grow the industry- the taxation problem is discouraging them. If you have a taxation regime that is too far from ideal, because what we are paying in the industry now is different from what you have in the manufacturing sector. I want to believe that there is an error somewhere and government should look into it.
A member of the Senate has also promised to help us and see that it is looked into. I am not saying that government should not collect tax but if it allows the industry to thrive, government will even make more money from the industry in the area of taxation and the industry will also benefit.
But like I said, the local content policy is working. Our regulator is also trying. What they are doing now is to ensure that every company that is licenced is also participating in all these businesses that must be domesticated. It is not a question of whether a company is weak. If it is weak, you have not withdrawn its licence. It is also not a question of whether a company is not paying claims promptly because you have not even complained.
But it is good to allow everybody that is so licensed to try. So that is what the regulator is doing to ensure that there is a spread. As you know, insurance business is all about sharing of risk. Again, if that happens, you can be sure it will reduce unbridled competition.
For instance, if company A knows that company B is stronger, what will happen is that it will allow company B to bid, especially in oil and gas, without necessarily bringing down the rate knowing fully well that whether you like it or not at the end of the day, the bidding company cannot carry the risk alone.
You must get your share of the business. A larger chunk will still go out going by the structure we have on ground now- majority go offshore, so there is no point charging low risk in order to get the business. So from what they have done now really, there will be a fair spread and again, every company has been so recognised and that will enable many companies to grow. Because you can only grow if you are taking in more and more businesses and gain experience on whatever class of business you are underwriting. After gaining experiences, you can now have capacity and begin to underwrite bigger tickets. Like I said, all we are seeing now is a passing phase. All the pains we are passing through and I know insurance will be better for it at the end of the day.
Are you saying that the municipal pool will stop all the negative practices going on in the industry like rate cutting, unhealthy competition?
ANS:
Yes, I want to believe so because we have pools in the past, oil pool and is helping us to conserve business within each other. Whether you like it or not, all of us can combine, cede all the capacity together to underwrite big businesses.
That is what is happening in the oil and gas business now despite the recession. Because I believe that the price of oil is stabilising-I am sure it will also get back to a point where it will also enable more investors to go back to the risk because now they don’t want to go back to the high sea but as it is now, all these glut from wherever-lam sure is being addressed.
As the president has said, if you can produce little at higher price, why do you want to produce more and sell at lower price? l am sure they are reaching out to the countries in the Middle East concerned because there are some political angles to those countries.
Look at the American companies, still growing and creating new employment. Definitely, we have capacity problem but if things improve, I want to believe in two months time that is the beginning of winter, they will start stockpiling oil-those of them that will not want to be caught up with higher prices and that will also drive the market.
It is left for us to learn lessons from what has happened to us in the past and be more prudent in the management of our resources because our life style has not changed as Nigerians.
We are still wearing expensive things all of which we are not producing, expensive handsets, if they bring in a container load of handsets into the country, it will finish within a short time and you start wandering that salaries have not been paid yet people have money for all these. But I believe that in terms of rot, Africa is not an exception and Nigeria is not alone; because, if you get infrastructure right, the large population is enough to engender growth. Over 100 million people-you can just work on the middle class. Trading among ourselves alone can engender growth. You can travel from here to Jalingo, infact, you can travel on Nigerian roads for 14 hours without a single boarder control.
At the AGM, you talked about foreign investment into the company. Have you identified a particular investor and what level of equity are you likely to hand out?
ANS:
When you are talking about foreign investors, let me tell you, the minister said that all of us will recapitalise.
You know that your retention is a function of your capital. Don’t forget that we attempted to go to the market in 2008 but what happened at the capital market happened. We had put together all parties concerned, planned to have the first meeting, sequel to August 14, 2009, it was Friday, the market started having issues.
If you look at our balance sheet, because of the job, because of our equity and portfolio, it just created a kind of imbalance, so the business we do, liquidity is key. If you look at companies that are doing very well, just check their balance sheet, you will see they have huge capital.
Some of them are very lucky because they went to the market just immediately before the problem. Why am I saying they were lucky, they would have invested the money in the capital market and the shares would have also lost value.
But we have been around before some of them- several years and we have seen all these kinds of businesses together with regulations. So when the crisis happened, that time, even if you had wanted to sell, nobody was ready to buy.
Because you can buy Cadbury at N50 and you know tomorrow it is going to be N48, so someone can say why do I have to buy when I know tomorrow, it will come down to N48.00. So we were having more offers than people who were ready to buy.
Honestly, we had thought that the period of drop in value of shares would have been for a short period. Nobody had thought that it will extend for so long-not that it can still not go back because before the confidence will come back, it will take time.
So that has happened. Talking about foreign investment, liquidity is very key. If you look at Niger Insurance, historically, we have not done anything public, or special placement or what you call IPO, what we have been doing over the years is rights issues to the existing shareholders.
But when the market went the way it did, they became fatigued and if you want to raise big capital, you find it difficult to get it from them. So that is why the Board is looking at foreign investors for two reasons.
You know if you are still looking for money from Nigeria outside the existing shareholders, if you are not going to make it rights issue, you can still get significant figure but we have looked at the trend in the industry, what competition is doing.
If you look at image, you look at the likes of AXAMansard when you just mention the name, they are global, they are multinational, they have better technology, if you look at Custodian & Allied before IFC came in, if you look at Leadway, now you have Swiss Re coming into the company.
So in terms of visibility, to be very visible, it will be good to also have foreign linkage. It is a Nigerian company agreed, probably acting globally and thinking Nigerian. What the Board is looking out for in a nut shell, is capital.
Yes, we want to raise capital but let it be both capital and expertise. But if you are looking for money, in Nigeria, we can get good investors but we are saying okay, if anyone is bringing money, what else-because for Nigerians, if they bring in the money, they might not have the kind of skill and knowledge required.
Aligning with foreign investors has a lot of advantages, in the area of product development, the skill set, knowledge, we want them to blend and we need greater exposure so that we can innovate. We can’t do it on our own but I must tell you there is a lot of interest in Nigerian insurance industry from outside the world-a lot.
Anytime you go out you meet enquiries. So the Board decided that we bring in foreign investors for reason of more exposure.
GLO Leads with 26.6m New Internet Subscribers in June
Globacom, Nigeria’s data grandmasters, has again bested other operators to the top position in the segment of acquisition of new Internet subscribers in the month of June.
This is conveyed in the latest figures released by the industry regulator for the month of June.
According to the figures, Globacom ended the month of June with a total of 26,628,065 Internet subscribers up from 26,355,391 in May. This showed that the operator added a total of 272,674 new subscribers during the month.
The figure represents a remarkable improvement from the total number of subscribers gained between April and May. Glo recorded 49,124 new subscribers in April.
Airtel is the closest operator to Globacom with 45,334 new Internet subscribers by recording a total of 17,325,423 subscribers in June, up from 17,280,089 recorded in May.
Conversely, Etisalat had a total of 15,253,513 Internet subscribers at the end of June, down from the 15,508,024 Internet subscribers the operator had in May, effectively losing a total of 254,511 Internet subscribers in one month.
MTN Nigeria on its part recorded a total of 32,974,177 in June, down from the 33,108,786 Internet subscribers that the operator had in May.
Consequently, MTN lost a total of 134,609 within a month.
Generally, a total of 318,008 new Internet subscribers were gained in the industry and Globacom alone had 272,674 new Internet subscribers out of this figure.
From the foregoing, Globacom is responsible for about 86 percent of the total Internet subscriber acquisitions in the industry in the month of June.
Observers believe that Globacom’s consistent rise in the area of acquisition of new Internet subscribers may be attributed to the recent introduction of panoply of innovative products and services by the company.
Among the offerings currently exciting subscribers is Jollific8 which gives subscribers eight times the value of their recharge. It is widely acclaimed to be the best value for money in the industry.
NCC Fine Impacts MTN Result Ending June 2016
MTN, a leading emerging markets mobile operator, connecting 233 million people in 22 countries across Africa and the Middle East has unveiled its financial results as at June 30, 2016. The company said it is committed to continuously improving customers’ experience and delivering a bold, new Digital World to them.
Financial results snapshot for the six months ended 30 June 2016
• Group subscribers remained flat at 232,6 million from 31 December 2015
• Revenue increased by 14,0% (1,5%*) to R78 878 million
• Data revenue increased by 32,2% (19,7%*) to R19 849 million
• Voice traffic and data traffic increased by 7,9% and 135,3% respectively
• EBITDA decreased by 3,3% (25,9%*) to R29 273 million
• EBITDA margin decreased 6,6 percentage points to 37,1%
• Headline loss per share of 271 cents**
• Interim dividend of 250 cents per share
• Capex increased by 26,9% (15,4%*) to R13 772 million
• Nigeria regulatory fine re-measurement impact of R10,5 billion
The Group’s results are presented on a regional basis in line with the Group’s new operational structure. This is comprised of South and East Africa (SEA), West and Central Africa (WECA) and Middle East and North Africa (MENA).
The SEA region includes: South Africa, Uganda, Zambia, Rwanda, South Sudan, Botswana (joint venture – equity accounted) and Swaziland (joint venture- equity accounted). The WECA region includes: Nigeria, Ghana, Cameroon, Ivory Coast, Benin, Congo Brazzaville, Liberia, Guinea Conakry and Guinea Bissau. The MENA region includes: Iran (joint venture – equity accounted), Syria, Sudan, Yemen, Afghanistan and Cyprus.
Although Iran, Botswana and Swaziland form part of their respective regions geographically and operationally, they are excluded from their respective regional results due to being equity accounted for by the Group.
Overview
MTN continued to operate in a challenging environment for the six months ended 30 June 2016. The financial performance for the period reflects the confluence of a number of material issues, which created the “perfect storm”. The Group has made strides towards resolving these challenges although many of these factors fall outside of its control.
The Group’s reported results were significantly impacted by the Nigerian regulatory fine. On 10 June MTN Nigeria resolved this matter with the Federal Government of Nigeria (FGN) and agreed to pay the FGN a total cash amount of 330 billion Nigerian naira (US$1,671 billion, using the exchange rate prevailing at the time) over three years in a full and final settlement.
This was agreed in addition to complying with certain other regulatory conditions imposed as part of the settlement reached. The 50 billion naira (US$250 million) paid in good faith and without prejudice by MTN Nigeria on 24 February 2016 forms part of the monetary component of the settlement, leaving a balance of 280 billion naira (US$1,418 billion, using the exchange rate prevailing at the time) outstanding. In June 2016 the first scheduled payment of 30 billion naira (US$124 million) was made. The remaining cash payable at 30 June 2016 amounted to 250 billion naira (US$882 million).
The Group has accrued the present value of 280 billion naira (US$1,418 billion, using the exchange rate prevailing at the time), which in total had a negative impact of R10 499 million on reported earnings before interest, tax, depreciation and amortisation and impairment of goodwill (EBITDA) and a R8 632 million negative impact on the Group’s reported headline losses, or 474 cents on reported headline losses per share.
The reported impact on the Group’s statement of cash flow for the period amounted to R5 870 million, which equates to the 80 billion naira paid during the period.
During the period, R1 324 million costs were incurred on a range of professional services relating to the negotiations that led to a reduction of R34 billion in the Nigerian regulatory fine to 330 billion naira (US$1,671 billion, using the exchange rate prevailing at the time).
The Board has exercised its judgement and approved the quantum of the professional fees incurred taking into account global benchmarks and the value delivered culminating in the final settlement of the Nigerian fine.
Apart from the Nigerian regulatory fine, the depreciation of local currencies against the US dollar had a substantial impact on the Group’s results. This resulted in foreign exchange losses amounting to R3 606 million during the period.
MTN South Sudan reported an impairment on property, plant and equipment (PPE) of R259 million** (using a Rand/ Sudanese pound exchange rate of 0.376). When the impairment write-off is presented on an organic basis the impairment amounts to R2 632 million* (using a rand/Sudanese pound exchange rate of 3.837). This organic impairment write-off had a significant negative impact on organic EBITDA.
The Group’s underlying performance was impacted by weak macro-economic conditions affecting consumer spending, the withdrawal of regulatory services in MTN Nigeria from July 2015 until May 2016 and disconnections of subscribers related to subscriber registration requirements, mainly in Nigeria.
MTN Nigeria disconnected the last batch of 4,5 million subscribers in February 2016. MTN Uganda and MTN Cameroon were also impacted by subscriber registration requirements. This resulted in significant free minutes provided for subscriber re-registration campaigns,
contributing to a 12,2%* decline in the effective voice tariff. The Group’s performance was further impacted byaggressive price competition and under-performance of MTN South Africa.
MTN Irancell (joint venture – equity accounted), MTN Ghana and MTN Cyprus delivered strong operational and financial performances for the period.
EBITDA reconciliation
EBITDA, excluding the impact of the Nigerian regulatory fine (R10 499 million), hyperinflation (R90 million) and the realisation of the deferred profit from the sale of towers in Ghana (R18 million), declined 3,3%.
This was positively impacted by foreign exchange movements (23%). Organic EBITDA declined 25,9%*, negatively impacted by R1 324 million in costs incurred on a range of professional services relating to the negotiations that led to a reduction of R34 billion in the Nigerian regulatory fine and the impairment of PPE in South Sudan of R2 632 million*.
The impairment for PPE of South Sudan impacted organic EBITDA by 8,7%*. MTN South Sudan’s full results impacted organic EBITDA by 9,8%*. Excluding the impact of professional fees relating to the Nigerian regulatory fine negotiations and the MTN South Sudan impairment, EBITDA declined 12,8%*.
The Group EBITDA margin declined 6,6 percentage points (pp) to 37,1%. This excludes the impact of the Nigerian regulatory fine, hyperinflation and the realisation of the deferred profit from the sale of towers in Ghana.
Losses from joint ventures and associates amounted to R1 692 million**. This included a charge of R1 039 million** incurred by MTN Irancell, mainly relating to the depreciation and amortisation of hyper-inflated assets that were historically written up under hyperinflation reporting.
Upon the discontinuation of hyperinflation accounting in Iran, effective 1 July 2015, hyperinflation adjustments are limited to the depreciation and amortisation charges on previously hyper-inflated assets until 2033.
The Group reported losses of R2 463 million in relation to MTN’s share of Nigerian TowerCo losses, which were mainly as a result of foreign exchange losses incurred on US dollar-denominated loans. In addition, the Group also reported short-term losses on MTN’s share in Africa Internet
Holdings (AIH), Middle East Internet Holdings (MEIH) and Iran Internet Group (IIG)(R494 million).
The Group reported a headline loss per share of 271 cents**, which was mainly as a result of the Nigerian regulatory fine (474 cents**).
Excluding the impact of the Nigerian fine, headline earnings per share (HEPS) declined 69% to 203 cents. In addition, the headline number was negatively impacted by losses from joint ventures and associates, which were negatively affected by hyperinflation of 20 cents** (positive impact of 40 cents** in 2015), losses from the TowerCo’s of 136 cents** (3,5 cents** in 2015), AIH, MEIH and IIG of 27 cents** (18 cents** in 2015) and net forex losses of 135 cents** (52 cents** in 2015).
This was further negatively impacted by a range of professional services relating to the negotiations that led to the reduction in the Nigeria regulatory fine (73 cents**). Excluding the impact of the fine, hyperinflation, losses from the TowerCo’s, AIH, MEIH and IIG, forex losses and a range of professional fees relating to the fine negotiations, basic HEPS declined 11,7% to 594 cents.
Financial performance summary
The Group continued to benefit from its significant scale and footprint, maintaining its leadership position in 15 markets. Group subscriber numbers remained flat at 232,6 million following 6,6 million subscriber disconnections over the six month period in Nigeria, Uganda and Cameroon.
Since October 2015 approximately 18 million subscribers across the Group were disconnected to ensure compliance with the subscriber registration processes. MTN South Africa reported a decline in subscriber numbers mainly as a result of strong competition and economic pressure in a highly penetrated market.
Group revenue increased by 14,0% to R78 878 million, benefiting from the average exchange rate movement of the rand against the naira.
On an organic basis, Group revenue increased by 1,5%*, impacted by a decline in outgoing voice and data revenue in Nigeria following the withdrawal of regulatory services from MTN Nigeria until May 2016.
This had a significant negative impact on MTN Nigeria’s revenue growth for the first four months of the period. This was partly offset by higher revenue growth by MTN South Africa, supported by strong device sales and an increase in data revenue during the period.
The Group benefited from healthy double digit data revenue growth in the majority of the markets in which it operates.
Group data revenue increased by 32,2% (19,7%*) and contributed 25,2% to total revenue despite a 46,9% decline in the effective data tariff (in constant currency US dollar terms). Digital revenue, including Mobile Financial Services revenue, contributed 32,1% to data revenue. This was supported by a 135% increase in data traffic and the increased take up of digital lifestyle services.
Outgoing voice revenue increased by 8,0% and decreased by 5,4%* on an organic basis. This was negatively impacted by a 12,2%* decline in the effective voice tariff (average price per minute, in constant currency US dollar terms) as a result of continued price competition, subscriber disconnections and free minutes used for subscriber re-registration campaigns.
The use of multiple SIM cards, increased substitution for data services and increased pressure on consumer spending also negatively impacted outgoing voice revenue.
MTN Nigeria’s competitiveness was compromised by the mandatory disconnection of subscribers and the suspension of regulatory services until May 2016.
Nigeria: Hospitality to Generate $500m by 2020- PwC
Nigeria’s hospitality revenue should reach $507 million by 2020 thus beating 2015’s $321 million. This was revealed in a report on Nigeria’s tourism from PricewaterhouseCoopers (PwC) released last week, local media said.
In its report, PwC associates the increase to that of overnight stays and of corresponding average price. In addition, new hotels are being built across the nation. Nigeria is in fact expected to get 4,700 additional hotel rooms within the next five years.
It should be recalled that PwC has reviewed the Nigerian tourism industry in the 5th edition of its “Hospitality Outlook: 2015-2019” released in May 2015. In the report, the American firm said Nigeria’s hospitality market had been greatly affected by the Ebola-related health crisis and the 2014’s terrorist attacks. Earnings from room booking thus fell 2% while the three-four star hotels market recorded a 7.7% decrease in revenues.
However, according to the report, due to its economy growing, Nigeria’s hospitality sector attracted many investors and the number of hotel rooms should double in the next five years with most part of this growth coming from Lagos.
Also, overnights stays should record an average annual growth of 6.6% reaching 2.2 million in 2019 against 1.6 million in 2014.
MainOne Launches SME-in-a-Box Solution
In delivering on its commitment to meet the needs of small and medium enterprises in Nigeria, MainOne has introduced into the market a new service called SME-in-a-Box, a converged solution of high-speed internet, fixed-voice and cloud solution designed to offer its world class services to smaller businesses in affordable packages.
SME-in-a-Box is a simple, plug and play service poised to drive business growth, productivity and profitability without compromising quality and value for money. It will help businesses deliver robust services to their clients because of the high quality experience and value the solution offers. This service is especially practical in today’s economic environment where businesses have to adapt to the new financial regime in order to remain viable.
Speaking during the product launch, the Product Manager, Value Added Services, Adeyemi Tanimomo, discussed the value of SME-in-a-Box.
“MainOne understands the challenges small businesses face especially in terms of costs and quality of service. You will find that the typical business is always changing service providers because of these two issues. This is why we created this solution, to enable businesses increase their operational efficiency and ultimately their bottom-line. SME-in-a-Box provides business owners a viable solution to meet their objectives of growth, improved efficiency and good service delivery.”
Tanimomo further explained that from MainOne’s perspective, SMEs are key drivers of the economy because of the vital role they play in alleviating poverty, providing job opportunities and building wealth. However, an SME is unlikely to be able to fully attain its potential without being powered by reliable internet connectivity.
“SME-in-a-Box is an expression of MainOne’s commitment to constantly innovate as we continue to provide the best connectivity and data network services in West Africa. We also want to provide SMEs access to the same quality of services enjoyed by big organisations to drive their growth and sustainability. The service is especially recommended for startups, professional services companies, architectural firms, law firms, schools, hotels, hospitals, e-commerce firms, retail malls and other businesses that require business support connectivity solutions from one, single provider.”
SME-in-a-Box is affordable and currently available in Ikeja and Apapa, with planned phased launches throughout Nigeria.
China’s Forex Reserves Fall to $3.20tr in July
China’s foreign exchange reserves fell to $3.20 trillion in July, central bank data showed on Sunday, in line with analyst expectations.
Economists polled by Reuters had predicted reserves would fall to $3.20 trillion from $3.21 trillion at the end of June.
China’s reserves, the largest in the world, fell by $4.10 billion in July. The reserves rose $13.4 billion in June, rebounding from a 5-year low in May.
China’s gold reserves rose to $78.89 billion at the end of July, up from $77.43 billion at end-June, data published on the People’s Bank of China website showed.
Net foreign exchange sales by the People’s Bank of China in June jumped to their highest in three months, as the central bank sought to shield the yuan from market volatility caused by Britain’s decision to leave the European Union.
China’s foreign exchange regulator recently said China would be able to keep cross-border capital flows steady given its relatively sound economic fundamentals, solid current account surplus and ample foreign exchange reserves.
China’s foreign reserves fell by a record $513 billion last year after it devalued the yuan currency in August, sparking a flood of capital outflows that alarmed global markets.
The yuan has eased another 2 percent this year and is hovering near six-year lows, but official data suggests speculative capital flight is under control for now, thanks to tighter capital controls and currency trading regulations.
However, economists are divided over how much money is still flowing out of the country via other channels, with opaque policymaking and some inconsistency in the data raising suspicions that the fall in the yuan may be masking capital outflow pressure.
After the yuan slipped to below the psychologically important 6.7/dollar level on July 18, it has seen a mild rebound as the central bank stepped in to control the pace of its depreciation.
Still, most China watchers expect it will resume its descent soon, risking a renewed surge in outflows.
A Reuters poll on Wednesday showed analysts believe the yuan may fall more than 3 percent against the dollar by a year from now, more than expected just a month ago, as the economy struggles to maintain momentum and as the dollar edges up on views of an eventual U.S. rate rise.
China will keep the yuan basically stable and continue with market-based interest rate reform, the central bank said on Wednesday.
The country’s economy expanded slightly faster than expected in the second quarter but private investment growth shrank to a record low, suggesting future weakness that could pressure the government to roll out more support measures.
Check Point Unveils 1st Real-Time Zero-Day Protection for Web Browsers
Addressing the exponential growth in web-based malware, phishing and social engineering attacks, Check Point Software Technologies Limited recently announced SandBlast Agent for Browsers with Zero Phishing technology.
As the newest member of its industry-leading SandBlast family of solutions, SandBlast Agent for Browsers is designed to protect users from these evolving threats by seamlessly incorporating key components of the security model into the browser.
It provides real-time protection, all while reducing the resources required to prevent today’s most advanced attacks.
To optimise business results and innovation, users now expect unconstrained internet access and immediate delivery of downloaded content and email.
At the same time, enterprises must contend with the changing threat landscape, as they strive to prevent the theft of sensitive customer information and their own intellectual property, while maintaining the efficiency of their critical business systems.
Files downloaded from the web represent a leading entry point for malware today, and data shows this threat is growing. Web-based malware and social engineering attacks targeting organisations are increasing in volume and sophistication, with cyber attackers using the latest evasion techniques and persuasive scams to infect their victims. A preview of an upcoming SANS survey, Exploits at the Endpoint: SANS 2016 Threat Landscape Study, reveals:
41% of the respondents experienced their most impactful security events through attacks that used drive-by downloads of malicious programs.
80 percent of organisations have been impacted by phishing attacks over the past 12 months, with 68 percent witnessing an increase in this type of attack.
Coupled with the fact that 63 percent of data breaches involved some form of credential theft through either weak, default or stolen passwords, according to Verizon’s 2016 Data Breach Investigations Report, it becomes clear preventing the full-range of web-based attacks from reaching end users is critical to maintaining business security.
“Within our expanding business, we’ve increasingly been challenged to maintain the security of our endpoints, especially as employees are targeted by hackers using more and more clever social engineering techniques,” said Saul Schwartz, Enterprise Security Manager, se2.
“Having a simple, easy-to-use browser extension that prevents attacks without slowing users down, will be a game-changer for our increasingly mobile workforce – particularly from threats such as phishing attacks.”
In this on-going struggle to protect their endpoints, enterprises want maximum protection, while minimizing the footprint of running, managing and deploying multiple endpoint products on every system. SandBlast Agent for Browsers addresses these requirements with features that include:
Proactive, real-time protection from advanced malware delivers safe reconstructed content within seconds
Dynamic analysis blocks unknown and zero-day phishing attacks targeting user credentials
Simple, easy-to-deploy browser plugin for Internet Explorer and Chrome that installs in minutes and operates with minimal overhead
Highest malware catch rate in the industry, utilising advanced sandbox technology and patented CPU-level detection
“As cyberattacks are growing in their complexity and frequency, enterprises are increasingly at risk of falling victim to a wide range of browser-based attacks,” said Rick Rogers, Area Manager for East and West Africa at Check Point Software Technologies.
“Existing technologies ask users to wait for content to be evaluated, or require multiple, intrusive software installations on every system. SandBlast Agent for Browsers brings the highest level of protection to users in a simple browser plug-in that blocks unknown and zero-day malware delivered via web downloads, while quickly delivering safe content within seconds.”
About Check Point Software Technologies Limited
Check Point Software Technologies Limited is the largest network cyber security vendor globally, providing industry-leading solutions and protecting customers from cyber-attacks with an unmatched catch rate of malware and other types of threats.
Check Point offers a complete security architecture defending enterprises – from networks to mobile devices – in addition to the most comprehensive and intuitive security management. Check Point protects over 100,000 organisations of all sizes.
Social/ Emotional Learning Software, The Social Express, Touches Down in Africa
The Language Express, Inc., developers of the Award winning programme, “The Social Express has announced its partnership with Prognari, an Africa-focused education value-add organisation that seeks to develop social, emotional intelligence capabilities and life skills in children and young adults.
This strategic partnership supports both companies’ objective of equipping the 21st century African child with the skills required to be successful in school and life.
The Social Express® is an animated Social and Emotional Learning (SEL) software designed to teach children and young adults how to think about and manage social interaction situations. It helps them develop meaningful social relationships and ultimately succeed in life.
Marc Zimmerman, CEO of The Language Express, Inc. while commenting on the partnership, said:
“We are excited to bring The Social Express to the African market. Through user testimonials, we have seen positive results in over 70 countries. Prognari will bring the knowledge, reach and expertise that we wanted in a strategic partner for Africa.”
The World Economic Forum, in its March 2016 report titled, ‘New Vision for Education: Fostering Social and Emotional Learning through Technology,’ noted that “In order to thrive in the 21st century, students need more than traditional academic learning. They must be adept at collaboration, communication and problem-solving, which are some of the skills developed through SEL. Coupled with mastery of traditional skills, social and emotional proficiency will equip students to succeed in the swiftly evolving digital economy.”
Emmanuel Udoro, the Corporate Communications Director at Prognari said:
“Our overriding vision at Prognari, has always been to proactively equip African children and young adults for life in the 21st Century and beyond through experiential and targeted learning. Our partnership with The Language Express, Inc. moves us closer to achieving our objective and will see us taking The Social Express to the length and breadth of the African continent. The Social Express® is a digital and innovative learning program that aligns with the trend shifts in our digital world.”
The Social Express® which is accessed via the internet on mobile devices (currently available only on iPads) and desktop platforms, runs a series of interactive web episodes (webisodes) and mobile apps that can be used by the learner independently, or with a teacher in a group.
In addition to equipping children with SEL abilities, Prognari is working with The Language Express to reduce the incidence of bullying in schools through the Cool School programme. Cool School is an interactive and animated anti-bullying programme designed for elementary school learners; Cool School’s six week curriculum has been designed to teach young students about bullying through interactive videos and offline activities.
The program also addresses bystander behavior and how it can contribute to increase bullying within the school environment.
About Prognari
Prognari facilitates the acquisition of social, emotional intelligence and other life skills by children and young adults across Africa, thereby laying the foundation for their future success in life and work.
Prognari is dedicated to helping African students, parents, educators and the wider education ecosystem improve educational effectiveness and ultimately student outcomes to create the world leaders of tomorrow.
Rio Olympics 2016! The Aviation Factor
Olympic Flame was Delivered in Four Lamps
The Olympic torch has been transported to Brazil from Switzerland by the official carrier of the games – LATAM Airlines. On May 3, 2016, the carrier flew Boeing 767 from Geneva to the host nation’s capital Brasilia, escorted by two F-5 fighters from the Brazilian Air Force.
The Olympic flame was transported in a passenger cabin and was kept in four separate lamps, fuelled by kerosene in order to avoid the extinguishment. A special structure was developed to secure the lamps in airplane‘s seats. As a safety precaution, they, along with carpets, were made from non-flammable fabric.
In all, the Olympic flame has been carried by 12,000 people, for the last 95 days. It also has visited 320 cities, covered 20,000 km byon land, and over 16,000 km by air.
Even Horses Require Special Air Transportation
The Olympic torch was not the only item that was specially delivered to the Olympic games by airplane. More than 300 horses from all around the globe were flown to Brazil on a uniquely fitted aircraft for equestrian events.The horses were loaded into special containers that were later put on the main cargo deck. The containers are able to fit up to three horses, but there is a common joke that two horses in one container fly in a business class, while one – in the first class.
It is no surprise that horses, just like human beings, have to have their documents cleared before the boarding.
“Documents are full of important data, such as a detailed physical description, with diagrams, a list of competitions competed in and a list of vaccinations taken,” said Alex Titan, Rio 2016 Sport Competition Manager.
During the transportation, the horses wear special traveling boots and protective bandages to avoid injuries. They are accompanied by professional flying grooms and vets, and may even require medication to cope with stress.
Great Honour for Airlines to Carry Athletes
Over 11 000 world’s best athletes from 205 countries will be participating in Rio 2016. It is a great honor for carriers to transport national teams, they try to create the most comfortable trip possible and even dedicate special liverys to the games. In return, some athletes, for instance, US sportsmen, advertise their carrier.
Even though the governments and carriers put special attention for athletes journeys, not every national team‘s trip has been safe and sound. The Nigerian soccer team missed its original flight from Atlanta, U.S. to Brazil, because of payment issues between the government and a charter company. Once they were solved, it turned out that another aircraft sent to carry the team was too small to transport the whole squad.
Luckily, the airport‘s managers contacted Delta‘s representatives, who were able to provide them with an airplane, normally used to transport NBA teams. The Nigerian soccer team arrived in Brazil with only 13 hours to rest before their first game with Japan.
Operation Hours Extended for Private Jets
The Olympic games attract not only world-class athletes but also crowds of fans, heads-of-states as well as, businessmen, many of whom travel by their own aircraft. In order to cope with arrivals of private jets, Rio airports have extended their operation hours.
Private aircraft will be able to land at city’s main Galeão International airport from 08:00 until 02:00, while Santos Dumont airport will accept arrivals from 06:00 until 00:00, allowing an additional 180 business jet flights per night.
The airspace cannot be opened for private jets all the time due to safety precautions. Rio‘s officials are preparing for the worst case scenario when aircraft crashes into one of the stadiums. In order to provide the maximum air security, F-5 fighters will be patrolling the skies of Rio.
Galeão International Airport has been Expanded
The Brazilian government expects around 2.5 million visitors during the period of the Olympic and Paralympic Games. Usually, Galeão International Airport handles around 40,000 passengers per day, but on the opening night, the airport expects the number reach 90,000.
To cope with passenger flow during the Olympics, and increasing travel demand in the country, the airport has opened South Pier in Terminal 2 that is 1 km long and is equipped with 26 boarding bridges.
As a result of the expansion Galeão’s annual capacity has risen from 17 million to 30 million passengers per year. The airport has also added 68 check-in desks, opened “eGates” to speed up customs and border control and expanded its car park capacity.
It has been over one hundred years since aviation sport – hot air ballooning was featured in the Olympic games. Despite not being in the official program, the aviation industry will have its significant input into the games and Rio 2016 without a doubt will be a sports event to remember.
African Economic Outlook 2016 Launched in Nigeria
The 2016 African Economic Outlook (AEO) was launched by the Nigeria Country Office of the African Development Bank at an outreach event held at the Ahmadu Bello University in Zaria.
The theme of the 2016 AEO is Sustainable Cities and Structural Transformation. The report looks closely at Africa’s distinctive pathways towards urbanisation, and how this is increasingly shifting economic resources to more productive activities.
The publication covers all 54 African nations, with individual country notes and corresponding statistical annexes. Nigeria’s case formed the basis for exchange of views on the AEO, as well as deliberations on prospects for the Nigerian economy.
The July 29, 2016 event started off with a brief meeting with the university’s senior management, which expressed appreciation of the Bank’s efforts in reaching out to academia and encouraging scholars to engage in public policy space. In his remarks, the Country Director of AfDB’s Nigeria Office, Ousmane Dore, emphasised the importance of the report. “It significantly informs policy dialogue and feeds into the design of Bank’s projects to support government priorities,” Dore said.
AfDB Lead Economist, Barbara Barungi outlined the main findings of the report. According to the publication, Africa’s economic performance had been steady and was expected to remain moderate in 2015 and strengthen in 2016 against the backdrop of a fragile global economy.
The continent remained the second fastest-growing economic region after East Asia. The report predicts the continent’s average growth at 3.7% in 2016, increasing to 4.5% in 2017, provided the world economy strengthens and commodity prices gradually recover.
Urbanisation, the report states, is a megatrend that is transforming African societies profoundly. However, this is not accompanied by structural transformation, and therefore industrialisation remains rather slow. Two-thirds of the investments in urban infrastructure until 2050 are yet to be made, the report adds.
If harnessed by adequate urban planning policies, urbanisation can help advance economic development through higher agricultural productivity, industrialisation, services and foreign direct investment in urban corridors.
According to the report, Nigeria has had a sluggish economic growth of 2.8% since the end of 2015. At the time of the report launch, Barungi reported that the economy had contracted further by 0.36% in the first quarter of 2016, while inflation continued to rise, standing at 16.5%.
Policy reforms by the new administration are highlighted, and they include strong fiscal policy, improvements in public sector transparency and accountability, as well as adoption of a more flexible exchange rate.
Nigeria has been rapidly urbanising, with fast-growing cities such as Lagos and Kano facing increasing unemployment and income inequality due to poor urban planning and weak links between structural transformation and urbanisation.
About the report:
The African Economic Outlook is produced annually by the African Development Bank (AfDB), the OECD Development Centre and the United Nations Development Programme (UNDP).