Security of Data/Systems Top IT Priority in Africa, ME

19/09/2016

Ensuring high levels of security of data and systems, and guaranteeing business continuity are the top IT priorities among Middle East and Africa (MEA) decision makers in the healthcare industry for the next year or so, along with integrating siloed systems and advancing analytic capabilities, according to the recent research by International Data Corporation (IDC).

IDC Health Insights looked at the results of event polls conducted among healthcare IT executives attending a series of IDC CIO Summits held across the MEA region during 2015 and 2016. They survey respondents were executive-level representatives of healthcare organisations from Egypt, Saudi Arabia, United Arab Emirates, Turkey, Kenya, Nigeria, Morocco, and South Africa.

The survey results show that managing IT governance and regulatory compliance, meeting the growing expectations of IT users and patients, obtaining budgets for IT investments, and finding the workforce for emerging technologies are the on-going challenges for healthcare CIOs in the region.

As for managing IT security, the key challenges include budget constraints and staff-related issues that range from a lack of qualified personnel to poor adherence to security policies by employees.

Analytic technologies are clearly gaining traction among surveyed organizations: analytics (including business intelligence) was perceived as the most important in terms of supporting digital transformation, followed by mobile technologies. Among applications, analytic solutions represent the top investment priority for the next two years, including business intelligence tools and applications that are based on mobile platforms.

In terms of current adoption rates and near-term investment plans, however, mobility leads still leads the way: Over one third of respondents indicated that they have already introduced enterprise mobility, and another 55% plan to start using the technology within the next two years.

Meeting the growing needs and expectations of patients is the main driver of enterprise mobility among surveyed organizations.

That said, IT security risks and hurdles associated with the management of multiple types of mobile devices and operating systems are slowing down mobility, and this is further aggravated by problems with interoperability and staff compliance with respective IT policies.

“Despite the methodological limitations of the study, especially with regard to the poor representativeness of the sample consisting of the attendees of IDC events, this survey provides some useful insights into the IT trends characteristic to MEA healthcare markets,” says Nino Giguashvili, Senior Research Analyst with IDC Health Insights, IDC CEMA.

“Consistent with other research we perform in the Middle East region, mobility remains the fastest-emerging technology of the four pillars of the 3rd Platform. Private cloud and social media have made moderate progress over the last few years, while Big Data still lags behind, mainly due to uncertainties related to data validity and ROI.”

The first study highlights the results of the survey’s coverage of various IT-related issues, including:

The deployment status of various technologies and solutions, including transformational technologies
The key IT priorities and investment plans related to 3rd Platform technologies (cloud, mobile, social media, and Big Data)
IT challenges and barriers to the adoption of various technologies

The second study takes a closer look at the state of enterprise mobility among the healthcare organizations represented by the event attendees. Specifically, the document covers:

Deployment status of various enterprise mobility solutions among the surveyed organizations
Short- and long-term investment plans with regard to enterprise mobility and state of maturity with regard to mobilizing enterprise applications
Challenges associated with supporting mobility in healthcare

Tech, Media Leaders to Assess Investment/Growth Strategies

Business Journal

16/09/2016

Leading strategy and investment heads from technology and telecom giants including Google, Uber, Intel, Africa Internet Group, Vodacom, Airtel, Nokia and Etisalat are meeting in Lagos on September 20 to discuss strategies for investment and regional growth at TMT Finance Africa in Lagos 2016.

Poised to become the technology and investment hub for Africa – Lagos, Nigeria will play host to the event for the first time, which will see more than 150 regional and international telecom, media and technology leaders, investment bankers, investors, advisers and government representatives meet for a series of panel debates, networking sessions and private roundtable discussions.

“Nigeria is fast becoming one of the most innovative and dynamic places in the world for technology and mobile connectivity, and we are delighted that household names such as Google, Uber, Intel and Africa Internet Group will be represented at the conference alongside some well-known Nigerian tech and media companies such as Sliide, iRoko and Andela, which is backed by Mark Zuckerberg’s Chan Zuckerberg Initiative,” said Ben Nice, Director, TMT Finance Africa in Lagos.

“However, there are still many challenges that some of these companies face, including a lack of access to adequate financing, which is where TMT Finance Africa in Lagos should help to plug the gap and get the dialogue going between the genuine decision makers,” Nice added.

Leading investment banks will be represented by key institutions such as Standard Bank, Citi, IFC, Barclays, Africa Finance Corporation, Access Bank and FNB, while private equity firms speaking at the conference include: Convergence Partners, African Capital Alliance, ECP and Carlyle.

Over 80 C-level speakers are confirmed for the conference, and only a limited number of tickets are still available, and can be purchased on the website.

Innovation and technology investment will form a key part of the agenda, including specific sessions on: Investing in Innovation, eCommerce Africa, Media and Content Strategies, Venture Capital Africa, Connecting the Unconnected, Africa Mobile Payments and Digital Africa.

Travelstart Nigeria Launches Interswitch Payment Gateway

Business Journal

16/09/2016

In a quest to make travel simpler with easy payment methods for its customer, Travelstart Nigeria has launched Interswitch payment gateway, Africa’s leading digital payment and commerce provider to facilitate seamless payments for affordable flights.

Interswitch, with its outstanding records, allow companies like Travelstart to access all major banks in Nigeria as well as over 17,000 ATMs and Nigeria’s most used payment cards. The primary focus of this collaboration is to enable multiple channels of making safe and secure payments. As a result, it will bring even greater convenience to the customer and create more accessible payment channels.

“We are very happy to announce that we now offer our customers to pay for their flights with Verve, Visa and MasterCard on our website. This is just one of many initiatives Travelstart is taking to offer our customers more seamless, faster and convenient shopping experience.” advises Philip Akesson, Travelstart Nigeria’s Country Manager.

Echoing these sentiments, Travelstart Nigeria’s Operations Manager, Olufemi Fakeye said: “It’s the simplest and fastest way our customers can make payments for their bookings at no additional cost, this also gives them an opportunity to avoid booking cancellation and fare increments in the face of the fluctuating exchange rate.”

Interswitch’s Divisional CEO for Industry Vertical Markets, Chinyere Don-Okhuofu equally remarked that “Our vision at Interswitch is encompassing and it continues to expand to take cognizance of unique requirements of players in virtually every sector, especially where payment transactions are involved. We continue to identify opportunities, such as this latest partnership with Travelstart Nigeria, to optimise the way payments are made and tracked”.

Travelstart is the leading and fastest-growing online travel agency in Africa. Since launching in Nigeria, it has been providing great travel deals, creating a strategic means that will promote easy and convenient travel solutions for its customers. And now, Travelstart’s strategic partnership with Interswitch, the widely used and trusted payment processing provider, is guaranteed to make you book flight faster and easier than ever!

Finally, the integration of Interswitch solutions & channels on the flight booking platform emphasize Travelstart’s commitment to develop effective payment solutions that makes it simpler than ever for travelers to book and pay for their flight tickets through its website.

Africa’s Growth Slows but Long-term Potential Remains Strong

Business Journal

16/09/2016

Six years ago when the McKinsey Global Institute first looked in detail at Africa’s diverse economies, almost all of them were experiencing accelerating growth.
The picture today is more mixed. MGI’s new report Lions on the move II: Realizing the potential of Africa’s economies finds that Africa’s economies’ growth paths have diverged.

Growth in the 11 economies accounting for 60 percent of African GDP—the continent’s oil exporters and the three countries involved in the Arab Spring (Egypt, Libya, and Tunisia)—slowed sharply.
But the remaining economies generating 40 percent of African GDP accelerated their annual growth rate from 4.1 percent in 2000-10 to 4.4 percent in 2010-15. The overall outlook is positive with the IMF projecting that Africa will be the world’s second-fastest-growing region in the period to 2020.

Four fundamentals are likely to underpin Africa’s economic growth
· The fastest urbanisation rate in the world. Over the next ten years, 187 million more Africans will live in cities—equivalent to half the US population today.
· The biggest working-age population in the world of 1.1 billion in 2034—larger than in either China or India.
· The largest reserves in the world of many key natural resources (e.g., 60 percent of the world’s unutilised but potentially available cropland, and the largest global reserves of vanadium, manganese, and many others).
· The chance to leapfrog old technologies using mobile and digital (e.g., penetration of smartphones expected to hit 50 percent in 2020 vs. 18 percent in 2015).

Big opportunities lie ahead as consumer and business spending continue to grow
The new report identifies opportunities for growth in African economies.
Spending by consumers and businesses in Africa today totals $4 trillion. By 2025, the total could be $5.6 trillion.
Household consumption is expected to grow by 3.8 percent a year to 2025 to reach $2.1 trillion. Spending on discretionary items is likely to grow fastest, reflecting an expanding African consuming class. Just under half of all consumption growth in the period to 2025 will be in 75 cities.
Business spending is expected to grow from $2.6 trillion in 2015 to $3.5 trillion by 2025.
Africa has an opportunity to nearly double manufacturing output from $500 billion today to $930 billion in 2025.
Africa’s economies are no longer a story about exporting commodities—but about tapping into vibrant domestic demand. Three-quarters of this potential could come from Africa-based companies meeting fast-growing demand within Africa.
Today, Africa imports one-third of food, beverages, and similar processed goods it consumes. The other one-quarter of the growth could come from more exports.
Accelerated industrialisation could lead to a step change in productivity and the creation of six million to 14 million stable jobs over the next ten years—making realising this a priority for governments.
Acha Leke, a McKinsey senior partner and report co-author, said:

“Our new research shows how in coming years Africa will benefit from strong fundamentals including a young and growing population, the world’s fastest urbanization rate, and accelerating technological change. These will help drive rapid growth in consumer markets and business supply chains, and will offer opportunities to build large, profitable industrial and services companies. Tapping Africa’s consumer markets will require companies to have a detailed understanding of income, demographic, and category trends. Thriving in business markets will require businesses to offer products and develop sales forces able to target the relatively fragmented private sector. But what our research also shows is how much work needs to be done both by companies themselves and by Africa’s governments to translate opportunity into tangible economic benefits.”

To make the most of the opportunities, Africa needs more large companies
MGI’s new database of corporate Africa—which we believe is the first of its kind—shows that the continent has 700 companies with revenues of more than $500 million, of which 400 companies have revenue of more than $1 billion. Africa’s large companies are growing faster and are generally more profitable than global peers.
However, Africa (excluding South Africa) has only 60 percent of the large firms one would expect if compared with other emerging regions. And average annual revenue of $2 billion is half that of the large firms in Brazil, India, Mexico, and Russia. No African-owned company is in the Fortune 500.
Africa’s top 100 companies have achieved success by developing strong positions at home, staying the course to build their businesses over decades, integrating what other companies would usually outsource, and investing in building and retaining talent.
Further success is possible in six high-potential sectors with high growth, high profitability, and low consolidation: wholesale and retail, food and agri-processing, health care, financial services, light manufacturing, and construction.

Governments need to play a stronger role in unleashing renewed dynamism
Six priorities emerge from this research:
· Mobilise more domestic resources, taking bold steps to mobilize more of its own funding to finance development
· Aggressively diversify economies, encouraging growth in high-potential sectors in close cooperation with business, based on a clear understanding of their countries’ comparative advantages
· Accelerate infrastructure development
· Deepen regional integration
· Create tomorrow’s talent, ensuring that educational and training systems build work-relevant skills, and that students are aware of, and encouraged to enter, these vocations and that the private sector builds on best practice
· Ensure “healthy” urbanisation, so that cities grow with the infrastructure required to make the biggest positive economic and social impact possible
Delivering on these six priorities will require the vision and determination to drive far-reaching reforms in many areas of public life—and capable public administration with the skill and commitment to implement such reforms.

Securing Healthcare Industry: Prevention is Better Than Cure

Business Journal

16/09/2016

By Rick Rogers, Area Manager for East and West Africa at Check Point Software Technologies
The healthcare industry, arguably one of the most technologically advanced considering the gadgets and devices now used to monitor health statistics and perform medical procedures, is ironically among the most ‘unhealthy’ when it comes to network security.
Delegates attending the recent Healthcare Innovation Summit were told that medical records are being increasingly targeted by cybercriminals – data from the US showed that 89% of healthcare institutions suffered a security breach and were twice more likely to be targeted than other organisations.
Healthcare record theft increased a shocking 1100% this year with more than100 million records compromised worldwide. The biggest threat, says KPMG comes from external attackers – at 65% – while malware tops the list of information security concerns.
But why is an industry with the technological ability to perform surgery on patients in other countries so sick when it comes to protecting information?
The answer is multi-faceted:
Valuable data. Data collected and stored by hospitals and other organisations, such as medical aid schemes, is up to ten times more valuable to cybercriminals than credit card information. This is due to the sheer volume of information gathered about individuals – and the fact that we’re seeing an increased shift to digital medical records – which makes it easy to commit fraud and identity theft. Given the value of this data on the black market, cyber-attacks are becoming ever more sophisticated in their attempts to hack healthcare institutions.
Ageing infrastructure. Hospitals are melting pots of outdated infrastructure, old operating systems and state-of-the-art medical technology, all communicating over the same networks. Often, hospitals take an ‘if it’s not broken, don’t fix it’ approach to technology, so devices may not be patched with the latest software versions, for example. The problem, however, is that the system is very much broken. KPMG found that, in terms of technical capabilities, the healthcare industry is behind other industries when it comes to protecting infrastructure and information.
Complex networks. The fact that so many different people, devices and departments need to access a medical institution’s records forces them to adopt open networks. Add to this the increasing number of Internet of Things and the myriad Internet-connected gadgets connecting to the network and it becomes difficult to secure and even more vulnerable to attack.
No budget. Security spending in the healthcare industry is at times as little asone-tenth of what other industries spend. When it comes to technology spending, a new MRI machine will likely win the budget lottery over security software.
Easy targets. Ransomware is one of the biggest methods used by cybercriminals to gain access to medical data. This involves ‘kidnapping’ the data and only releasing it once the hospital pays a ransom. Because medical organisations are generally dealing with crises, they need urgent access to their data and are more willing to pay the ransom to get back up and running as quickly as possible. Cybercriminals know this and are exploiting it.
Lack of understanding and awareness. Although medical institutions are becoming more technologically centric, that’s not to say they’re focusing on technology and there’s a lack of understanding of what’s going on when it comes to cyber security. There needs to be an increased understanding of how to defend against attacks like ransomware, coupled with a bigger focus on educating staff and users on how to spot phishing attacks – people are, after all, the weakest link in the security chain.

Prevention is better than cure
It sounds clichéd but, when it comes to security in any sector, prevention certainly is better than cure.
In order to gain a holistic overview of the network, technology managers need to design the infrastructure from the bottom up, starting with the physical layer, comprising devices and other hardware, and working up to the application layer.
This multi-layered approach to security gives IT managers more visibility into the network so that they can see what data is coming into and leaving the network and can implement controls as required. For example, sensitive patient information can be encrypted as it traverses the network between devices, while less sensitive information, such as that collected by fitness devices, can be subject to less stringent protection measures.
Education of staff members is also critical. They need to be able to identify hacks such as spear phishing and ransomware attempts so that they know not to click on malicious links and to alert the IT department to such attempts.
There also needs to be a general increase in awareness within the healthcare sector of the various methods used by cybercriminals to gain access to medical data. In many cases, medical institutions do not even know that they’ve been infiltrated purely because they don’t know the warning signs. They need to take a more proactive approach to network security and understand how to prevent certain attacks.
Security should not be reactive and should not be done just because organisations want to comply with legislation such as the Protection of Personal Information (POPI) Act.
But unfortunately, this is the case in the healthcare industry and it’s the reason why they are always one step behind the attackers. Rather, security should be about prevention and the desire to ensure the integrity of sensitive information.

China, India: World’s Largest Internet Markets

Business Journal

16/09/2016

India has overtaken the United States to become the world’s second largest Internet market, with 333 million users, trailing China’s 721 million.
But a new report released by the UN Broadband Commission for Sustainable Development also confirms that just six nations – including China and India – together account for 55% of the total global population still offline, because of the sheer size of their populations.
While Internet access is approaching saturation in richer nations, connectivity is still not advancing fast enough to help bridge development gaps in areas like education and health care for those in poorer parts of the world, according to the 2016 edition of The State of Broadband report.
Globally, an estimated 3.9 billion people are not using the Internet. But the Commission’s new report estimates that, between them, China, India, Indonesia, Pakistan, Bangladesh and Nigeria account for 55% of all unconnected people, while 20 countries – including the US – account for a full 75% of those not using the Internet.
These findings suggest that targeted efforts in just a few key markets could help enormously in redressing the gaping ‘digital divide’ between those who are online and those still offline.
Released just ahead of the 14th meeting of the Commission in New York on September 18, The State of Broadband 2016 is optimistic about the potential of mobile broadband, with 165 countries now having deployed ‘4G’ high-speed mobile networks. As smartphone penetration reaches near-saturation in the US, Europe and mature markets in Asia like Japan and Korea, India and Indonesia in particular are expected to drive future growth. India also recently overtook the US to become the world’s second-largest smartphone market, with an estimated 260 million mobile broadband subscriptions.
The Commission argues that if today’s near-universal basic mobile phone access could be converted to high-speed mobile broadband access, mobile phones could serve as a major accelerator of development, driving rapid progress towards the UN Sustainable Development Goals.
“There is a large body of economic evidence for the role of affordable broadband connectivity as a vital enabler of economic growth, social inclusion and environmental protection,” said ITU Secretary-General Houlin Zhao, who serves as co-Vice Chair of the Commission with UNESCO Director-General Irina Bokova. “The Sustainable Development Goals for education, gender equality and infrastructure include bold targets for information and communication technology. The SDGs are achievable, but require urgent efforts and progress in the speed, degree and equality of development. The Commission believes this can be realized through broadband.”
“Broadband technologies can be powerful development multipliers,” Director-General Bokova added, “but this requires combined investments in access and in skills and in education. This is about opening new paths to create and share knowledge. It is about enhancing freedom of expression and about widening learning opportunities, especially for girls and women. This is about developing content that is relevant, local and multilingual.”
Issued annually, The State of Broadband report is a unique global snapshot of broadband network access and affordability, with country-by country data measuring broadband access against key advocacy targets set by the Commission in 2011.
The report confirms that according to latest ITU figures, by end 2016 3.5 billion people will be using the Internet, up from 3.2 billion last year and equating to 47% of the global population. Progress in the 48 UN-designated Least Developed Countries has been encouraging, with the Commission’s target of 15% of the LDC population onlineexpected to be reached by the end of this year.
This year’s figures show that, once again, the top ten developing countries for household Internet penetration are all located in Asia or the Middle East. The Republic of Korea continues to have the world’s highest household Internet penetration, with 98.8% of homes connected; Qatar (96%) and United Arab Emirates (95%) rank second and third, respectively.
Iceland continues to have the highest percentage of individuals using the Internet (98.2%), while Luxembourg (97.3%) has surpassed Norway to take second place, and Andorra (97%) takes third place from Denmark.
Monaco remains very slightly ahead of Switzerland as the world leader in fixed broadband penetration, at over 47 subscriptions per 100 inhabitants compared with the Swiss figure of 45%. There are now seven economies (Monaco, Switzerland, Liechtenstein, Denmark, the Netherlands, France and the Republic of Korea) where fixed broadband penetration exceeds 40%, up from six countries in 2014 and just one nation (Switzerland) in 2012.
Finland has the world’s highest percentage of active mobile broadband subscriptions, with 144 subscriptions per 100 people, followed by Singapore (142) and Kuwait (139). The Asia-Pacific region accounts for nearly half (48%) of all active mobile broadband subscriptions.
In total, there are now 91 economies where over 50% of the population is online, up from 79 in 2015. But whereas in 2014 the top ten countries for Internet use were all located in Europe, this year sees Bahrain (ranked 7th) and Japan (ranked 9th) join the group. The lowest levels of Internet usage are found in sub-Saharan Africa, with less than 3% of the population using the Internet in a number of countries including Chad (2.7%), Sierra Leone (2.5%), Niger (2.2%), Somalia (1.8%) and Eritrea (1.1%).

NIA Chairman, Efekoha, Lists Path to Insurance Sector Growth

Business Journal

12/09/2016

Mr. Eddie Efekoha, Chairman, Nigerian Insurers Association [NIA] says creation of employment to increase the purchasing power of Nigerians, curbing inflation and implementation of economic policies to stimulate economic growth as well as tax incentive for certain insurances are key paths to sustainable growth of the insurance sector in Nigeria.

Efekoha said in a paper titled ‘THE INSURANCE INDUSTRY IN NIGERIA AND CAPACITY FOR BUSINESS EXPANSION’ that the federal government and the National Insurance Commission [NAICOM] should also support the industry through enforcement of compulsory insurances, creation of stricter solvency regulation, implementation of risk based supervision,

review of Insurance Act 2003 for industry growth, increase accessibility to credit and broaden distribution channels.

He listed industry/market strategies to grow the market as human capital development to address emerging insurable risks from agriculture, solid minerals, infrastructure, housing and power;

operators to grow reserve from annual operational profits in other to increase their financial / underwriting capacity, a more aggressive industry-wide awareness and publicity campaign, collaborative investment in technology to improve insurance distribution to reduce management expenses and thus increase profitability.

The NIA chairman added that right pricing of insurance products, development of innovative insurance solutions/products to increase penetration, review of reinsurance arrangement for better coverage, reduce risk volatility and cover new risks such as sabotage, kidnap as well as formation of strategic alliances to increase capacity and deepen insurance penetration will also support the growth of the insurance sector in the long-term.

Reviewing the journey of the industry over the years, Efekoha said:

“The industry in the 90s and well into 2005 was characterized by under-capitalisation, fragmentation and negligible size preventing it from taking on larger risks. In September 2005, a new capitalisation requirement was announced for insurers and this was concluded in February 2007. This recapitalisation exercise changed the playing field for insurance operators.

The consolidation exercise also brought in its wake increased capital market activities in the insurance sector of the Nigerian Stock Exchange [NSE] with many new companies coming on stream to the capital market to raise funds, thereby deepening capital market activities and further lending credence to the Nigerian capital market as one of the best performing emerging markets outside Africa.

Between 2007 and now, the market has witnessed several mergers and acquisitions which have grown the local capacity. Also, the industry has been a toast of foreign investors with a direct investment estimated at $750 million as at December 2014.”

He lamented the challenges facing the industry, saying the growth of a particular sector in any given economy is directly related to the performance of the economy of that country. He said from a rebased Gross Domestic Product [GDP] of $500 billion, the country’s GDP went down to $296 billion, making Nigeria the second largest economy in Africa after two years at the top.

“A quick look into our national dailies would reveal the dire situation of the economy-terrorism, insecurity & kidnapping amongst other social maladies: With the Boko Haram terrorist group ravaging the North-East, the militants in the South-South vandalising oil and gas facilities, this has affected the economic growth thereby reducing national income, power generation and leading to budget deficit.”

Efekoha, who is also the CEO of Consolidated Hallmark Insurance Plc, said the aggregation of such negative factors will naturally impact the insurance sector adversely and stunt its growth. “Devaluation of the Naira and its effect on insurance stock price and capital base-our ability to underwrite is a function of our financial strength which in turn is a function of the prevailing economic realities.Other very disturbing issues about our economy include: slump in the global price of crude oil & crude oil over-supply, weakening of the country’s external reserves position, rationing of forex amongst eligible applicants, poverty/reducing consumer purchasing power, inconsistent economic policies and volatile capital market.”

He said technology will continue to be vital element of business growth and expansion just as the inability of insurers to become digitally responsive and provide clients with quick, efficient and prompt services has in past years made the industry to lag behind. He added however such challenge cannot be beyond the control of the industry, if only it can embrace technology to drive growth as that could also be the reason for poor innovation in the industry.

Efekoha warned that huge and rising claims eat deep into the reserves of insurance companies, forcing them to reduce risk appetite and also reject certain classes businesses deemed volatile. He was emphatic that should claim costs continue to rise, insurance companies could be at the risk of having little capital to do business.

“Insurance is all about sharing of risks guided by laid down principles and given our population, right leadership that is focused on the issues of power, infrastructural development/renewal, broadening of revenue base, the dogged stance of NAICOM to drive growth and ensure strict compliance with relevant laws and operators who are determined to play according to the rules then insurance industry cannot but be the toast of investors and grow at double digits.”

CBN Plans BVN Registration for MfB, PMI Customers

Business Journal

12/09/2016

The Central Bank of Nigeria (CBN) has disclosed on-going plans to extend Bank Verification Number (BVN) registration project to customers of Other Financial Institutions (OFIS) such as Microfinance Banks (MfBs), Primary Mortgage Institutions (PMIs), among others.

CBN Director, Banking and Payment Systems Department, ‘Dipo Fatokun who disclosed this at the Finance Correspondents Association of Nigeria (FICAN) Bi-Monthly Forum hosted by the apex bank in Lagos, at the weekend, said the OFIS operators are already angling to have their customers included in the BVN project.

He said the CBN is considering having the OFIS customers enroll through deposit money banks, because of the high cost of procuring the machines.

“We are considering using commercial banks as registration points for the OFIS customers. We also expected that many of the OFIS customers, who already have their BVNs will supply the data to their banks, while others without BVN will register afresh,” he said.

Fatokun said the BVN project, which is being coordinated by CBN, commercial banks and Nigeria Interbank Settlement System (NIBSS) has helped reduce the number of bank frauds in the industry.

The CBN director explained that that before the coming of the BVN, identifications previously used in the banking industry were not foolproof, with fraudsters easily go unidentified.

However, BVN has now made it easier for the CBN and banks to uniquely identify every customer or to be able to trace transactions when frauds are committed. He explained that no bank customer, including Nigerian bank customers in Diaspora, is authorised to have more than one BVN.

“I want to assure you that the BVN has assisted us a lot in the banking system. It has assisted us to check frauds, and we are working on a framework, that will enable us if not to blacklist customers, because of some legal implications, but at least to watch-list a customer that is identified to have been fraudulent, or have done what he is not supposed to do across the banking sector,” he said.

Fatokun, who spoke on the theme: ‘Recent Developments in the Electronic Payments System and Implications for Consumers of Electronic Payment Services’ said the CBN has been at the forefront of the transformation of the payments system in the country which has been demonstrated through the development of the Payments System Vision (PSV) 2020 document in 2007, which was reviewed in 2013.

The CBN Director said the number of BVN linked to customers’ accounts as at August 23, this year was 36.7 million while the total number of individual customers in the banks was reported as 59.9 million as at the same date.

“Any bank customer resident in Nigeria without a BVN would be deemed to have inadequate KYC while effort is on-going to ensure that customers of Other Financial Institutions (OFIs) such as Microfinance Banks (MFBs) and Primary Mortgage Institutions (PMIs) are brought into the system begin to get their BVNs,” he said.

Fatokun said the e-Payment remains an initiative of CBN under the Payments System Vision 2020 as part of the overall FSS 2020 Strategy adding that one of the CBN mandates is the promotion of a sound financial system (Section 2 (d) of the CBN Act 2007).

He disclosed that Section 47(2) of the CBN Act 2007, stipulates that the CBN shall continue to promote and facilitate the development of efficient and effective systems for the settlement of transactions, including the development of electronic payment systems, adding that the promotion of a sound financial system entails active support for the effectiveness, efficiency and systemic safety of the payments system.

Okowa –First Nigerian Gov to Receive e-Government Certification

Business Journal

12/09/2016

His Excellency, Senator Dr. Ifeanyi Arthur Okowa of Delta State of Delta State make history recently as perhaps the first and only state governor in the Federal Republic of Nigeria to acquire the e-Government certification.

In line with Global standards, 21st century leadership and century leadership and governance is incomplete, inadequate and indeed governance is incomplete, inadequate and indeed unproductive without digital proficiency in e-Government.

Global assumptions on the emerging information society (IS), point to the fact that the ICT Policy and e-Government Domain will be the main battle field for 21st Century globalization, democratic government and national survivability.

This “paradigm shift” makes the education of future leaders is of high priority and a strategic imperative for all nations – as we approach the critical path of the 21 st century. This e-Government Leadership Certificate Program for the Political Class is designed to assist policy and decision makers achieve a dynamic and positive solution to crisis-prone challenges in governance.

According to UNESCO, ‘Government’ refers to the exercise of political, economic and administrative authority in the management of a country’s affairs, including the articulation of citizens’ interests and the exercise of their legal rights and obligations. ((CAFRAD), and UNESCO)

‘e-Government’ should therefore be understood as the art of implementing governance by adopting, deploying and applying Information and Communications Technology to enhance productivity and effective performance – using electronic media facilities and devices to accelerate the efficient, speedy and transparent delivery of information content and Data to business sector, the public and other agencies, and above all, for carrying out government-to-government administrative activities.

e-Government is therefore a new way of formulating, organising and implementing decisions and policies relating to administration, services, public inclusion, participation and citizens safety using ICT as a tool for building trust in governments and improved transparency and service delivery. ((CAFRAD) and UNESCO).

e-Government Certificate Training at Delta State Innovation Hub is a facility for world class e-Government certification training. In order to accelerate the speedy access and diffusion of the benefits of the knowledge economy, it has become critical for both Federal and State governments – through the Independent Electoral Commission (INEC) – to make e-Government Certification process mandatory for all current and intending policy makers, civil servants in MDAs and others.

According to the Executive Governor of Delta State – Senator Ifeanyi Okowa in his special remarks, “In driving the State’s economy, we are developing an innovation and science agenda as a key component in bridging the huge gaps and deficiencies in our education, health, industry, entertainment, governance, social and state security systems. The State aims to achieve this through a Private-Public-Partnership model strategy on innovation development. In this regards, we have resolved to partner with Mobile Software Solutions Limited, a renowned content solutions provider in the Information and Communications Technology industry and the winner of World Summit Award 2014 for Africa Best Mobile Content Developer in the Life-Style and Entertainment category. Delta State Innovation Hub – DS-IHUB – can attain noble heights if we put our minds to work. In moving this project forward, we will rely on the support and patronage of Delta State citizens at home and in the Diaspora, entrepreneurs, the academia, students, industry leaders, stakeholders, and indeed, all friends of Delta State, to ensure that this enviable knowledge venture is not only successful, but significantly beneficial to all concerned and sustainable for generations yet unborn. We realize that our success story will be dependent on how much support and partnership we get out there. We must pay glowing tributes as a State to Zenith Bank Plc, for donating this complex, and look forward to partnership with as many that may wish to develop positive minds for our greater tomorrow. Going forward, we will need a framework for innovation development and upscaling.

We will therefore:

I Establish a Delta State Innovation Development Fund – IDF. All donors to this fund will be recognized and honoured.

Encourage all youths to acquire computer skills.

iii. Encourage e-governance and digital literacy skills in the civil service and other institutions.

iv. Our land administration is being fully digitalized, with greater ease of doing business.”

Africa Pension Awards 2O16: Call for Nominations!

Business Journal

12/09/2016

The Africa Pension Awards was introduced in 2015 to benchmark Africa’s pension industry and promote innovation in pension administration amongst pension fund managers and regulators on the Continent.
This year’s award is open to pension fund managers and regulators from all African countries, who will compete in the following categories:

Innovations in Corporate Governance
Deployment of Innovative Practices to FacilitateWide Coverage
Socio-economic Impact of Pension System
Innovations in Risk Management
Innovations in Communication Strategy for Improved Customer Service Delivery.

All entries should be emailed to: [email protected]
Closing date for the submission of entries is 15th September, 2016

AWARD CEREMONY: 27 SEPTEMBER 2016
VENUE: Congress Hall, Transcorp Hilton
CITY: Abuja COUNTRY: Nigeria TIME: 07.00

Root Capital, The MasterCard Foundation to Raise Income for 300,000 Farmers in West Africa

Business Journal

12/09/2016

Impact investing pioneer, Root Capital announced at the African Green Revolution Forum a new partnership with The MasterCard Foundation that will help raise incomes for over 300,000 smallholder farmers in West Africa.

The Foundation has committed $5.2 million to Root Capital over five years to support early-stage agricultural businesses that generate transformational impact in rural communities in Côte d’Ivoire, Ghana, and Senegal.
“With Root Capital we will help to bring much-needed financing and capacity building to businesses in West Africa that work with farmers otherwise excluded from the formal economy,” said Ann Miles, Director of Financial Inclusion and Youth Livelihoods at The MasterCard Foundation. “We see this as a good avenue to help increase incomes and opportunities for 4,000 employees of agricultural businesses, 300,000 smallholder farmers, and over two million farm family members.”
Without access to predictable markets for their crops, small-scale rural farmers are often forced to accept lower prices for their crops and find themselves trapped in a cycle of poverty. While the global credit supply for smallholders has grown in recent years, it is geographically skewed with less than 10 percent of financial flows reaching sub-Saharan Africa.
Over the seven years that Root Capital has worked in West Africa, it has provided loans of between $50,000 and $2 million to 52 agricultural businesses that have raised incomes for nearly 12,000 employees and over 190,000 smallholder farmers.

Root Capital has also scaled its advisory program in the region, offering agricultural business leaders a suite of training modules to develop the leadership and financial management skills they need to grow and sustain their businesses.
“With the support of The MasterCard Foundation, Root Capital will be able to increasingly target earlier-stage businesses in West Africa that operate on the fringes of financial inclusion – businesses that demonstrate potential to grow and generate increased impact,” said Diaka Sall, Root Capital’s General Manager for West Africa.
Specifically, Root Capital will collaborate with The MasterCard Foundation to:

Accelerate the bankability and growth of more than 100 high-impact, early-stage agricultural businesses with capital needs under $150,000 and/or business revenues under $300,000;
Pilot an expanded set of advisory services, including leadership development of agribusiness employees; financial literacy training for smallholder farmers; mobile technology and mobile money; and empowering local microfinance institutions to better serve the agricultural sector; and
Contribute to sector learning by developing a framework for documenting and analysing the costs and impacts associated with early business growth in the agricultural sector.

This initiative will help address the urgent need of early-stage West African agribusinesses for capital and capacity building. With an estimated 48 million small-holder farmers in sub-Saharan Africa, however, who remain disconnected from such businesses and the stable sources of income they offer, a great deal of work remains to be done.

Saudi Job Reform, Falling Confidence Dent ME Handset Market

Business Journal

12/09/2016

Falling consumer confidence and Saudi employment reforms continue to dampen the Middle East’s once booming handset market, according to new figures from International Data Corporation (IDC).
The global technology research and advisory services firm’s latest ‘Quarterly Mobile Phone Tracker’ shows that shipments in the Middle East fell 8.0% quarter on quarter in Q2 2016, the second successive quarter of decline for the region. Shipments totaled 23.9 million units for the quarter, representing a 15.9% slump when compared with the corresponding period in 2015.
“Low oil prices, reduced government spending, and ongoing political instability continue to hamper demand in the region,” says Nabila Popal, Research Manager for mobile phones at IDC Middle East, Africa, and Turkey.
“Furthermore, consumers now expect much more from new devices before opting for an upgrade, a factor that has significantly lengthened the mobile refresh cycle and led to flagging spending in the consumer segment. Even the relative success of the Samsung S7 Edge could not halt the slump in the overall industry. Compounding all of this was the traditional slowdown in demand that accompanies the holy month of Ramadan, which coincided with the end of the second quarter.”
The UAE and Kuwait saw their mobile phone shipments decrease 15.1% and 4.4%, respectively, in Q2 2016 when compared with the previous three months, while Bahrain was the only GCC state to see growth in the quarter, recording a marginal increase in shipments of 0.8%. Saudi Arabia suffered a particularly sharp decline of 22.3% over the same period, largely due to regulatory changes that severely impacted the channel’s performance.
“The introduction of a new government stipulation that only Saudi nationals can be employed within the Kingdom’s mobile phone industry – covering sales, maintenance, and accessories – took a heavy toll on shipments in Q2 2016,” says Popal.
“This regulation has created panic across the industry, as independent retailers make up 80% of the Saudi mobile phone market and are traditionally run by foreigners. A large number of these independent retailers have now closed their doors, causing a sudden drop in orders. The market will eventually adjust, as there will be a shift towards major chain retailers; but the slump will continue until the channel adjusts to the changes.”
IDC’s latest figures show that this new consumer purchasing environment has caused quite a stir among the market’s leading players.
“The past two quarters have been particularly tough going for Apple,” says Saad Elkhadem, a research analyst at IDC Middle East, Africa, and Turkey. “The iPhone 6s and 6s Plus models have failed to gain the level of traction enjoyed by the 5s, while the newly released iPhone SE has so far not had the impact required to pick up the slack. All of these means Apple’s regional shipments were down 6.6% quarter on quarter in Q2 2016, giving the vendor a share of 13.3%.”
Samsung continues to lead the way with 37% share of the Middle East smartphone market, but suffered a sharp 19.6% decline in shipments quarter on quarter in Q2 2016. Intriguingly, Huawei is now the brand to watch in the Android space, with the vendor’s shipments up 17.6% quarter on quarter in Q2 2016, proving that opportunities to grow and gain share still exist in the smartphone market.
“Top-end Android devices continue to sell well in the region,” says Elkhadem. “But beneath this tier, purchases are increasingly veering towards value models, even in the more affluent Gulf states. Huawei’s portfolio is well positioned to capitalise on this trend, with a strong mid-level lineup complemented by the vendor’s new upper-level P9 model, which itself is priced low for a flagship device. The vendor is actively raising awareness of its brand by engaging in lots of promotional activities across the region, while also giving the channel the important care it deserves.”
The region’s retailers and distributors remain hopeful that ownership of the latest flagship device has not completely lost its allure in the Gulf markets. With the recent launch of Samsung’s Note 7 and Apple’s next set of iPhones expected to hit local stores soon, the market should indeed see a recovery of sorts.
“However, the speed of that recovery remains to be seen,” says Popal.
“Given the slower rate of innovation and change in each new smartphone iteration, consumers are finding it increasingly difficult to justify expensive upgrades. So while IDC expects mobile phone sales in the Middle East to stop contracting soon, the turn-around anticipated for the fourth quarter of the year is likely to be more muted than the industry might hope.”

CBN Hosts FICAN Bi-Monthly Forum on e-Payment

Business Journal

07/09/2016

The Central Bank of Nigeria (CBN) will be hosting the September Edition of the Finance Correspondents Association of Nigeria (FICAN) Bi-Monthly Forum in Lagos.

The event, with theme: ‘Development in the Electronic Payment Industry in 2016’ will hold on Saturday, September 10 at the FICAN Centre, Onipanu Lagos.

The Guest Speaker, Mr. ‘Dipo Fatokun, CBN Director, Banking & Payment System Department, will ex-ray the key issues that have defined the electronic payment industry within this year.

Fatokun will be speaking on the implementation of the cash-less banking policy, its impact on the payment system, Bank Verification Number (BVN), mobile banking, Internet banking and banking security.

The CBN director will also address issues around electronic payment frauds, and the need for bank customers to protect their account details.

A statement from the Association says it is aware that banking in Nigeria is becoming totally dependent on Information Technology initiatives. It believes that any financial journalist that aspires to survive the current hyper-competitive and highly dynamic business environment must devise effective ways of acquiring resourceful electronic banking knowledge to support his work.

“We enjoin all members of the Association to take part in this forum to enhance their capacity to deliver on their work. Through this training, there would be information exchange and knowledge sharing on electronic banking, that would restore public confidence on electronic payments,” it said.

“FICAN believes that the introduction of electronic banking services have shifted the system from the era of ‘face-to-face’ banking relationship to ‘man-to-machine’/’machine-to-man’ banking relationship. Now customers can enjoy the benefit of performing banking services at the comfort of their home anytime without carrying load of cash around. However, as stakeholders in the banking system, financial journalists must have the knowledge to report and interpret banking activities in this era,” the statement added.

Africa, Middle East Tablet Market Shrinks 13.3% in Qtr2

Business Journal

07/09/2016

Sluggish demand from consumers across much of the Middle East and Africa (MEA) saw the region’s tablet market shrink 13.3% year on year in Q2 2016, according to the latest ‘Middle East and Africa Quarterly Tablet Tracker’ from International Data Corporation (IDC).

The global ICT research and advisory services firm’s latest data shows that the overall market totaled 3.52 million units for the quarter, with Middle East shipments declining 18.8% year on year. By contrast, Africa performed much better, with shipments increasing 2.0% over the same period.

“Market saturation continues to inhibit the growth of tablets in Middle Eastern countries, while poor consumer sentiment caused by the effects of low crude oil prices is compounding the issue,” says Fouad Rafiq Charakla, Senior Research Manager for Personal Computing, Systems, and Infrastructure Solutions at IDC.

“In light of these circumstances, the commercial sector – spurred by some large-scale education deals – holds the key to driving growth in the region’s tablet market over the coming quarters.”

In terms of vendor rankings, Samsung continued to lead the tablet market in Q2 2016 with 20.8% share, despite seeing its shipments decline 35.3% year on year. Lenovo remained in second place with 12.9%, having suffered a 15.1% decline in shipments.

Huawei leaped above Apple to rank third in the market after its shipments increased 179.3% year on year to give it 10.0% share. Apple followed closely behind in fourth place with 9.3% share, having seen its shipments decline 28.1%.

“Tablets have traditionally been used for content consumption rather than content creation, and as consumers have gradually transitioned to bigger smartphones, the majority of content consumption activities have shifted in the same direction and away from tablets,” says Nakul Dogra, a Senior Research Analyst for Personal Computing, Systems, and Infrastructure Solutions at IDC.

“Looking forward, the rise of detachable tablets will help to boost the use of tablets for content creation purposes, something that has traditionally been limited to PCs for the majority of consumers.”

Partially compensating for the continuing slowdown in consumer demand is a massive order for Windows-based detachable tablets that has been placed as part of Kenya’s Digital Literacy Programme. The size of this deal has led IDC to revise its growth forecast for shipments of Windows tablets in 2016 upwards from 78.2% year on year to 232.3%. It has also resulted in a slight upwards revision of IDC’s forecast for the overall MEA tablet market’s performance in 2016, although shipments will still be down 7.0% year on year to 15.07 million units.

“The pace of innovation in the tablet market has slowed considerably, and consumers are now holding onto their tablets for longer due to the minimal differences between their existing devices and the new-generation of tablets being pushed by vendors,” says Dogra.

“This trend of longer replacement cycles is likely to continue as there are no innovative products lined up for the foreseeable future.”

IDC’s ‘Middle East and Africa Quarterly Tablet Tracker’ provides insightful analysis of key market developments, covering vendors, operating systems, screen sizes, user segments and distribution channels, quarterly market share data, and a comprehensive 5–8 quarter and five-year forecast.

African Airlines Record 7.4% Passenger Growth in Qtr 2

Business Journal

07/09/2016

The International Air Transport Association (IATA) announced global passenger traffic results for July, showing acceleration in demand growth over the previous five months.

Total revenue passenger kilometers (RPKs) rose 5.9%, compared to the same month last year, with all regions reporting growth. Monthly capacity (available seat kilometers or ASKs) increased by 6.0%, and load factor was 83.7% – just 0.1 percentage point below the record July high achieved in 2015.

“July saw demand strengthen, after a softening in June. Demand was stimulated by lower fares which, in turn, were supported by lower oil prices. And near record high load factors demonstrate that people want to travel. But, there are some important sub-plots to the narrative of strong demand. Long-haul travel to Europe, for example, suffered in the aftermath of a spate of terrorist attacks. And the mature domestic markets are seeing demand growth stall while Brazil and Russia contract,” said Alexandre de Juniac, IATA’s Director-General and CEO.

July 2016 (% year-on-year)	World share¹	RPK	ASK	PLF (%-pt)²	PLF (level)³
Total Market	100.0%	5.9%	6.0%	-0.1%	83.7%
Africa	2.2%	6.8%	5.3%	1.1%	72.7%
Asia Pacific	31.5%	9.6%	8.2%	1.0%	81.2%
Europe	26.7%	3.4%	3.6%	-0.2%	86.5%
Latin America	5.4%	2.9%	0.5%	2.0%	85.1%
Middle East	9.4%	12.5%	15.1%	-1.9%	78.6%
North America	24.7%	2.8%	3.8%	-0.9%	86.7%

International Passenger Markets
July international passenger demand rose 7.1% compared to July 2015, which was an increase over the 5.0% yearly increase in June. Airlines in all regions recorded growth. Total capacity climbed 7.3%, causing load factor to slip 0.2% percentage points to 83.5%.

Middle East carriers posted the strongest growth in July, with a 13.1% year-over-year increase; demand had dipped in June owing to the timing of Ramadan. Capacity rose 15.5%, causing load factor to drop 1.7 percentage points to 78.6%.

Asia-Pacific airlines’ July traffic rose 9.8% compared to the year-ago period. Capacity increased 8.6% and load factor climbed 0.9 percentage points to 81.7%. Reports suggest that Asian passengers are putting off traveling to Europe in favor of regional trips owing to terrorism fears: while traffic on Asia-Europe routes fell by 0.9% in June, international traffic within Asia rose 8.1%, which was a four-month high.

European carriers saw July demand increased by 4.1% compared to a year ago, which was the slowest among the regions. Demand has been affected by the recent terrorist attacks as well as political instability in parts of the region: traffic has grown at an annualized rate of just 1.4% since March. Capacity climbed 4.7% and load factor dipped 0.5 percentage points to 86.7%, which was still the highest among regions.

North American airlines’ traffic climbed 4.8%, while capacity rose 5.1% with the result that load factor fell 0.3 percentage points to 86.1%. Seasonally adjusted volumes have risen at an annualized rate of more than 8% since March helped by transpacific and leisure traffic to Central America and the Caribbean.

Latin American airlines’ demand rose 7.5% compared to July 2015 as the upward trend in traffic resumed following a soft patch in the first quarter of 2016. Capacity increased by 4.2%, boosting load factor 2.6 percentage points to 85.3%.

African airlines experienced a 7.4% increase in traffic compared to a year ago but this relates mainly to the strong upward trend in seasonally-adjusted traffic during the second half of 2015. Capacity rose 5.9%, and load factor climbed 1.0 percentage point to 72.4%, lowest among regions.

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