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World Bank: Year in Review-2016 in 12 Charts

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Between the social, political, and economic upheavals affecting our lives, and the violence and forced displacement making headlines, you’d be forgiven for feeling gloomy about 2016. A look at the data reveals some of the challenges we face but also the progress we’ve made toward a more peaceful, prosperous, and sustainable future.

Here are 12 charts that help tell the stories of the year.

1:  The number of refugees in the world increased

At the start of 2016, 65 million people had been forcibly displaced from their homes, up from 60 million the year before. More than 21 million were classified as refugees. Outside of Sub-Saharan Africa, most refugees live in cities and towns, where they seek safety, better access to services, and job opportunities. A recent report on the “Forcibly Displaced” offers a new perspective on the role of development in helping refugees, internally displaced persons and host communities, working together with humanitarian partners. Among the initiatives is new financial assistance for countries such as Lebanon and Jordan that host large numbers of refugees.

About a quarter of the world’s refugees live in camps

Number of refugees by accommodation type and region (end of 2015)

2:  The global climate change agreement entered into force

The pact negotiated in Paris in 2015 was ratified by 118 of the 194 countries that signed it , triggering new commitments to combat global warming. One of the agreement’s major goals is to promote a shift to low-carbon energy. Demand for renewable energy is picking up in developing countries as prices decline. In May, Africa saw its lowest solar price to date when the winning bid to develop large-scale photovoltaic solar plants in Zambia came in at 6 cents per kilowatt hour – or 4.7 cents/kwh, spread over 20 years.  That followed bids as low as 3 cents in the United Arab Emirates and 4.5 cents in Mexico. Renewables are now cost competitive in many markets and increasingly seen as mainstream sources of energy, according to REN21.

3: Global trade weakened

In 2016, global trade growth recorded its weakest performance since the global financial crisis. Trade volumes stagnated for most of the year, with weak global investment playing an important role, as capital goods account for about one third of world goods trade.

Trade has been a major engine of growth for the global economy and has helped cut global poverty in half since 1990. A trade slowdown, therefore, could have implications for growth, development, and the fight against poverty.

4:  More people had access to mobile phones than to electricity or clean water

Access to mobile phones has surged in low- and middle-income countries,  but many of the other benefits of the digital revolution – such as greater productivity, more opportunity for the poor and middle class, and more accountable governments and companies — have not yet spread as far and wide as anticipated, according to the World Bank’s 2016 World Development Report on the Internet, “Digital Dividends.” The report says greater efforts must be made to connect more people to the Internet and to create an environment that unleashes the benefits of digital technologies for everyone.

5:  A third of all people were under the age of 20

In around 40 African countries, over 50% of the population is under 20.  By contrast, in 30 richer countries, less than 20% of the population is under 20. As the 2015/2016 Global Monitoring Reports notes, the world is on the cusp of a major demographic transition that will affect countries along the development spectrum.

6:  600 million jobs will be needed in the next 10 years

One third of the world’s 1.8 billion young people are currently neither in employment, education nor training. Of the one billion more youth that will enter the job market in the next decade, only 40% are expected to be able to get jobs that currently exist. The future of work is changing, and the global economy will need to create 600 million jobs over the next 10 years to keep pace with projected youth employment rates.

7:  1 in 3 people did not have access to a toilet

The UN estimates that 2.4 billion people still lack access to improved sanitation facilities, nearly one billion of whom practice open defecation. Good sanitation is a foundation for development – conditions such as diarrhea are associated with poor sanitation, and left untreated, can lead to malnutrition and stunting in children. This year’s first High-Level Panel on Water brought together world leaders with a core commitment to ensuring the availability and sustainable management of water and sanitation for all.

8:  Most of the world’s extreme poor lived in Sub-Saharan Africa and South Asia.

While over 1 in 10 people lived in extreme poverty globally in 2013, in Sub-Saharan Africa, that figure was 4 in 10, representing 389 million people – that’s more poor people than all other regions combined, according to the World Bank’s Poverty and Shared Prosperity report.

..but extreme poverty is declining worldwide

And while the numbers of extremely poor remain unacceptably high, data in the report reveal the tremendous progress the world has made lifting people out of poverty since 1990:

How Does Extreme Poverty Vary By Region?

The number and percentage of extreme poor by region in 2013

MMM Owner Begs Media: Leave Us Alone

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Sergey Mavrodi , founder of Mavrodi Mondial Moneybox has pleaded with the Nigerian media to leave him and his subscribers in Nigeria alone.

His plea follows strident media reports on the ponzi scheme, especially warnings from Nigerian authorities over the operation of MMM and reports of its payment suspension to members till Janury next year.

The statement from Mavrodi read in part:

capture“Dear journalists, “analysts” and all kinds of “experts”! Please stop using MMM to gain cheap popularity. Leave us alone and let us work without interference. I’m just astonished by your irresponsibility and cynical attitude. Interests of millions of people, your fellow citizens are at stake. Don’t you have any sympathy for them? Why are you fueling hysteria around MMM and provoking a panic? Why are you doing this so diligently and persistently, what is your purpose? “In fact, absolutely all your provocative and worthless articles and “analyses” (I said “worthless” because you do not have any real information about what happens in the System, and might have never had; you simply invent everything, fabricate it) are merely negative: “MMM has collapsed!!!.. MMM will not be working in January!!!..” etc. “Are you intentionally presenting all of it in such a manner and whipping up tension by any means possible in order to increase the ratings of your publications and attract attention to them? Don’t you care about people at all? “So, nothing has collapsed, and MMM will safely resume its work in January, as announced. Suspension of work for holidays is a usual thing, merely working moment, no more than that. It would have remained a normal, just a part of the usual routine, and might have gone almost unnoticed if it were not for your totally cynical and irresponsible attempts to advertise yourself, create a scandal out of nowhere, and make the most of this news topic in any possible way. “Again, leave MMM alone and let us work. Nothing has collapsed, and MMM will perfectly resume its work in January. We Can Change the World!

Reps Issue 11-Day Ultimatum to CBN over Accounts

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Godwin Emefiele CBN Governor

The Central Bank of Nigeria has received 11-day ultimatum from the House of Representative over the failure of the banking regulator to submit its audited accounts for many years running.

The Minister of Finance, Mrs. Kemi Adeosun recently accused the CBN and other government departments of not remitting over N450 billion to the federation account as at when due.

In the current case, the House of Representative Adhoc Committee on Government-owned Development Institutions ked by Mr. Chukwuemeka Anohu has summoned the CBN, Bankof Industry and sundry to appear before it today with comprehensive details of their accounts and financial operations dating from 1999.

“Decades after the institutions were established and despite the huge budgetary provisions made for the agencies over the years, their impact in stimulating economic renaissance was yet to be felt.These institutions were charged with the primary mandate of providing long-term financing to the industrial and productive sectors of the economy and were designed to finance the establishment of large, medium and small industries as well as facilitate the expansion, diversification and modernisation of the existing concerns.”

Global Donors Commit $75bn to End Extreme Poverty

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A coalition of more than 60 donor and borrower governments have agreed to ratchet up the fight against extreme poverty with a record $75 billion commitment for the International Development Association (IDA), the World Bank’s fund for the poorest countries.

This is a pivotal step in the movement to end extreme poverty,” World Bank Group President Jim Yong Kim saidThe commitments made by our partners, combined with IDA’s innovations to crowd in the private sector and raise funds from capital markets, will transform the development trajectory of the world’s poorest countries. We are grateful for our partners’ trust in IDA’s ability to deliver results.”

The funding will enable IDA to dramatically scale up development interventions to tackle conflict, fragility and violence, forced displacement, climate change, and gender inequality; and promote governance and institution building, as well as jobs and economic transformation—areas of special focus over the next three years. These efforts are underpinned by an overarching commitment to invest in growth, resilience and opportunity.

“With this innovative package, the world’s poorest countries – especially the most fragile and vulnerable – will get the support they need to grow, create opportunities for people, and make themselves more resilient to shocks and crises,” said Kyle Peters, World Bank Group Interim Managing Director and Co-Chair of the IDA18 negotiations.

“IDA’s focus on issues like climate change, gender equality and preventing conflict and violence will also contribute to greater stability and progress around the world.” 

Financing during the IDA18 replenishment period, which runs from July 1, 2017 to June 30, 2020, is expected to support:

  • Essential health and nutrition services for up to 400 million people
  • Access to improved water sources for up to 45 million people
  • Financial services for 4-6 million people
  • Safe childbirth for up to 11 million women through provision of skilled health personnel
  • Training for 9-10 million teachers to benefit 300+ million children
  • Immunizations for 130-180 million children
  • Better governance in 30 countries through improved statistical capacity
  • An additional 5 GW of renewable energy generation capacity

“IDA is writing a whole new chapter in the story of development,” said Dede Ekoue, IDA18 co-chair and Togo’s former Minister of Development.

“Together with donors, working hand-in-hand with borrower governments, we are putting forward an innovative, ambitious and responsive package of support that gives hope to the poorest. These interventions will help transform the lives of billions of people living in IDA countries.”

To finance this groundbreaking package, IDA is proposing the most radical transformation in its 56-year history. For the first time, IDA is seeking to leverage its equity by blending donor contributions with internal resources and funds raised through debt markets. By blending concessional contributions from donors with its own resources and capital market debt, IDA will significantly increase the financial support it provides to clients.

“The innovative financing package offers exceptional value for money, with every $1 in partner contributions generating about $3 in spending authority,” said Axel van Trotsenburg, World Bank Vice President for Development Finance. “It is one of the most concrete and significant proposals to date on the Addis Ababa Action Agenda—critical to achieving the 2030 Sustainable Development Goals.”

The additional financing will enable IDA to double the resources to address fragility, conflict and violence (more than $14 billion), as well as the root causes of these risks before they escalate, and additional financing for refugees and their host communities ($2 billion). Increased financing will help strengthen IDA’s support for crisis preparedness and response, pandemic preparedness, disaster risk management, small states and regional integration.

Efforts to stimulate private sector development in the most difficult environments, at the core of job creation and economic transformation, will receive a major push in the form of a new $2.5 billion Private Sector Window (PSW).

The PSW, being introduced together with the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA), will help mobilize private capital and scale up private sector development in the poorest countries, particularly in fragile situations.

The funds will also help governments strengthen institutions, mobilize resources needed to deliver services, and promote accountability.

A total of 48 countries pledged resources to IDA; additional countries are expected to pledge in the near-term. The World Bank Group is continuing the tradition of contributing its own resources to IDA.

“One of the extraordinary things about IDA is that it brings different countries together to help the poorest. In this replenishment in particular, we’ve really seen that IDA is truly a global coalition,” said van Trotsenburg.

A total of 75 low-income countries are eligible to benefit from the IDA18 financing package.

4% of Pilots Worldwide Suffer Depression

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According to the findings of a recent study at Harvard, one in eight commercial airline pilots might be suffering from depression. The study also showed that 4% of the 1,850 pilots from all around the world that were surveyed struggled with suicidal thoughts.

The findings have been published almost a year and a half after the intentional crash by a Germanwings pilot in the Alps that took the lives of 150 people.

The unprecedented study glimpses into the mental health of pilots that hide their disorders from their management in fear of losing their jobs. Interestingly enough, an average 7% of Americans suffer from depression, meaning that pilots might actually be twice as likely to have this disorder.

On the 9th of December 2016, EASA has published a proposal to the European Commission on new operational rules to better support pilot mental fitness. EASA’s proposal is part of its Action Plan following the Germanwings Flight 9525 accident.

EASA’s proposal is released in a document known as an Opinion (Opinion 14/2016) and it includes the new requirements on the mental fitness of the pilots, among which is ensuring that all pilots have access to a support programme and mandating airlines to perform a psychological assessment of pilots before the start of employment.

Africa, ME Tablet Market Declines 10% in 3rd Qtr

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The Middle East and Africa (MEA) tablet market continues to decline in the face of cannibalisation from larger-screen-size smartphones.

According to the latest Middle East and Africa Quarterly Tablet Tracker from International Data Corporation (IDC), tablet shipments in MEA dropped 10.1% in the third quarter of the year (Q3 2016) when compared with the same period in 2015.

While shipments were down year on year to 3.85 million units, this still marked an improvement on the 3.52 million units shipped in Q2 2016.

“Smartphones with large screen sizes meet most needs of today’s consumers, who are slowly moving their tasks to these devices,” says Fouad Rafiq Charakla, Senior Research Manager for Client Devices at IDC MEA.

“The continuation of low crude oil prices in the Middle East and currency shortages in several African countries are compounding the problem, eventually leading to weaker consumer sentiment.”

Samsung continued to lead the MEA tablet market in Q3 2016 with 17.6% share, despite the vendor’s reduced focus on the category leading to a 34.3% year-on-year decline in its shipments. Lenovo maintained second position with 13.5% share, up from 12.9% in the previous quarter but down 6.8% on Q3 2015. Huawei followed just behind in third place after increasing its focus on tablets in the region. This resulted in year-on-year growth of 102.8% for 13.5% share. Apple finished fourth with 7.9% share, reflecting a year-on-year decline of 34.6% in shipments, while local vendor i-Life took fifth position with 5.5% share, its success stemming from the popularity of its low-priced consumer products.

“Demand for tablets in MEA is primarily being driven by entry-level slate models,” says Nakul Dogra, Senior Research Analyst for Client Devices at IDC MEA.

“This category offers quite low margins, so the focus on tablets from the supply side is also declining. Many vendors have cut their tablet lineups accordingly, and there don’t appear to be any exciting or innovative developments on the immediate horizon to spur purchases in the tablet space.”

“It’s worth nothing that with little difference between older and newer generation tablets, consumers are typically content with their existing hardware and subsequently holding onto it for a longer period of time,” continues Dogra.

“Free operating system updates ensure that these tablets remain essentially as good as new, so there is little or no motivation for consumers to replace their current devices.”

IDC has revised its overall forecast for 2016 downwards, with 14.49 million units now expected to be shipped for the year. This is down from the previous forecast of 15.07 million units and represents a year-on-year decline of 7.5%. The main factor behind this revision is the significant reduction in the quantity of tablets expected to be shipped as part of the Digital Literacy School Program in Kenya.

Detachable tablets are gaining traction in the market, and shipments are expected to grow by 147.9% year on year in 2016, driven by increasing demand from consumers and the education sector. “Detachable tablets are typically better suited for education purposes than traditional tablets, as these devices are primarily based on the Windows operating system,” says Charakla.

“As such, they can smoothly run the Microsoft Office applications typically required by the education sector. There are also numerous low-cost options with this form factor, which is ideal for large education deals where budgets are tight.”

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.

Luanda: Most Expensive African City for Expats in 2016

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Luanda, the capital of Angola is the most expensive city in Africa for expatriates in 2016, according to a survey released on December 14 by ECA International. Worldwide, Angola’s capital moved from the fifth position in this ranking last year to the second this year.

In Africa, Luanda is followed by Kinshasa, capital city of the Democratic Republic of Congo, which is 10th worldwide. Next comes Khartoum (Sudan’s capital), which moved from the 53rd position worldwide in 2015 to 21st in 2016, as inflation in the country soared and due to the Sudanese pound being pegged to the dollar.

Libreville comes 4th in Africa in the ranking which lists 450 cities worldwide, ahead of Pointe Noire, Brazzaville, Conakry, Abidjan and Yaoundé. N’Djamena is the tenth African most expensive city. (See down for Top 20).

ECA’s cost of living survey is based on a set of basic consumption goods and services such as food, household items, costs of leisure, clothing, restaurants, alcohol and tobacco. Calculations are made in U.S dollars. Rent, public services, car purchase and school fees are excluded as they are usually covered by separate allocations.

Worldwide, Tokyo is the most expensive city for expats, ahead of Luanda, Zurich, Geneva, Yokohama, Basel, Nagoya, Bern, Osaka and Kinshasa.

Top 20 of most expensive African cities in 2016:

1- Luanda
2- Kinshasa
3- Khartoum
4- Libreville
5- Pointe Noire
6- Brazzaville
7- Conakry
8- Abidjan
9- Yaoundé
10- N’Djamena
11- Malabo
12- Freetown
13- Accra
14- Dakar
15- Harare
16- Bamako
17- Cotonou
18- Ouagadougou
19- Addis-Ababa
20- Nairobi

Inside Buhari ‘s N7.298tr 2017 Budget of Recovery

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Buhari

President Muhammadu Buhari yesterday presented a N7.298 trillion 2017 budget proposal to a joint session of the National Assemby in Abuja.

‘The people who voted for us are waiting for us to change the course of this nation.”

Buhari said the 2017 budget has a benchmark of N305 to the dollar ($1) and 2.2 million barrels of oil per day at $42.5 per barrel.

The key provisions of the 2017 budget include:

  • Capital Expenditure: N2.24trillion
  • Judiciary: N100 billion
  • Health: 51 billion,
  • Industry: N81 billion
  • Defence: N140 billion.

Total breakdown of the 2017 budget would be presented on Monday, December 19 by the Minister of National Planning, Senator Udoma.

FG Unveils 10-Point Fiscal Roadmap to Grow Economy

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Kemi Adeosun

Mrs. Kemi Adeosun, Minister of Finance has unveiled a 10-Point Fiscal Roadmap to grow the Nigerian economy in 2017 and beyond. The roadmap is presented below:

Fiscal Roadmap 2017

  Fiscal Policy Initiative  Expected Impact 
1. Recognise inherited debt profile after a robust audit process:

§  Introduce promissory note program to finance verified liabilities

§  Issue debt certificates to contractors, Ministries, Departments & Agencies (MDAs), and State Governments

§  Improve cash flow of businesses

§  Improve Banks’ Non-Performing Loans
(NPLs)

§  Free up Banks’ balance sheet for lending to private sector

§  Improve Government’s business interaction with the private sector

 

2. Mobilise private capital to complement Government spending on infrastructure:

§  Roads Trust Fund

§  Family Homes Fund

§  Extend infrastructure tax relief to a collective model to attract clusters of corporate entities

 

§  Expand the provision of infrastructure

§  Drive growth of non-oil sector.

§  Drive economic growth

3. Strengthen fiscal/monetary handshake:

§  Replace administrative measures on list of 41-items with fiscal measures to reduce demand pressure in parallel market

§  Encourage domestic food production through specific incentives e.g. accelerated depreciation on food manufacturing equipment and Zero (0%) duty on green houses

§  Planned revitalisation of refineries

§  Increase Diaspora remittances via participation in the buyer support scheme for the Family Homes Fund

 

§  Reduce demand for US Dollars

§  Increase supply of US Dollars

 

4. Incentivise exports:

§  Restructure the Export Expansion Grant (EEG) to a tax credit system

§  Rationalise tariffs and waivers in key export sectors

 

§  Encourage/incentivise non-oil exports

§  Drive import substitution

5. Encourage investment in specific sectors through fiscal incentives:

§  Accelerated depreciation on equipment in strategic sectors e.g. food processing, mining and power

§  Rationalise tariffs and waivers in priority sectors

 

 

§  Drive investment in strategic sectors

 

6. Continue expansion of fiscal space through revenue  enhancement and cost consolidation:

§  Customs Single Window (being implemented through a Private Public Partnership (PPP) scheme)

§  Template for non-allowable expenses for Government Agencies.

§  Overhead cost control by the Efficiency Unit

§  Continuous risk based audit by the Presidential Initiative on Continuous Audit

 

§  Revenue enhancement

§  Cost containment

7. Improve fiscal discipline at Sub-National level:

§  Extension of efficiency unit at Sub-National level

§  Fast track municipal bond issues to deepen the bond market

§  Conversion to International Public Sector Accounting Standards by all State Governments.

 

§  Improved fiscal position at Sub-National level

 

8. Enable and accelerate Recoveries process:

§  Whistle-blower scheme

§  Centralised database on recovered assets

§  Asset tracing

§  Professional management of recovered assets

 

§  Increased efficiency of Recoveries process

§  Increased budgetary funding availability from Recoveries

 

9. Rebalance debt portfolio to extend maturity and optimise debt service cost:

§  Rebalance public debt portfolio with increased external borrowing (60:40 target)

§  Extend maturity profile of public debt portfolio

§  Deploy long-term debt instruments including Infrastructure and Retail Bonds

§  Maximise use of concessionary loans

 

§  Rebalanced debt profile withimproved debt service to revenue ratio
10. Catalyse Micro, Small and Medium Enterprise (MSME) growth            through specific measures to improve capacity and access to finance:

§  Development Bank of Nigeria (US$1.3bn)

§  Increase share of business awarded to MSMEs from Government contracts

§  Tax harmonisation and tax incentives

§  Accelerated depreciation

 

§  Acceleration of MSME growth

 

Nigeria to Sell N20bn of Green Bonds in 1st Half of 2017

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Nigeria plans to sell N20 billion ($63 million) of green bonds in the first half of 2017 to finance renewable energy projects, Bloomberg reported on December 9, citing official sources.

“We are on track to sell the bond in the first quarter, a sovereign, and could have another by the end of the year,”Environment Minister Amina Mohammed said. “The sale will also help fund an electric-vehicle commuter project in the city and tree-planting in the country’s arid north,” she added.

Nigeria, Africa’s most populous nation, needs more than six trillion naira, the equivalent of its annual budget, to overcome its infrastructure deficit, according to data from the Budget and National Planning Ministry.

The government directed a third of the 2016 State budget to infrastructure projects in order to plug this deficit and revive its economy which should contract by 1.7% this year.

STACO Insurance Settles N1.445bn Claims in 3rd Qtr

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The third Quarter results released by STACO Insurance Plc revealed that the company has paid the total sum of N1.445 billion claims to her various clients between January and September 2016. This is about 9.1% increase in claims paid compared with the corresponding period of 2015 where the sum of N1.324 billion was paid as claims.

The 2016 claims figure showed that N596.55 million was paid on Fire business as against N436.38 million paid in 2015. This is the class of business with the highest claims paid. This is closely followed by General Accident class of business where the sum of N389.96 million was paid on claims as at the third quarter of the year. Total claims of N197.32 million and N119.83 million were paid on Marine and bond respectively, while the sum of N82.70 million and N46.10 million were paid on Oil and Gas business and Motor business respectively amongst other claims.

The company assured its numerous customers of its commitment to promptly payment of claims as at when due.

The Head of Finance and Accounts of the Company Mr. Jaiye Fatungase reiterates that the company’s strength lies in its passion for high standards and prompt settlement of claims. In the same vein, the company has reported an increased shareholders fund of N3.626 billion as against N3.409 billion reported in the corresponding period of last  year.

Fatungase asserts that the company will continue to grow its shareholders fund to enable it play bigger in the Insurance Industry and particularly in the Oil and Energy sector of the economy, he further said that STACO is committed to providing exceptional service to her numerous customers.

The notable quality services delivery by the company every time has enabled it to win numerous awards amongst others, the latest being the Insurance Personality Leadership Award for year 2016 conferred on the Group Managing Director / Chief Executive of the company Dr. Sakiru Oyefeso by African Prize for Leadership Excellence.

The company was recently rated BBB+ by the Global Credit Rating Co (GCR) and is poised to maintain its rating among brokers and clients alike.

NSE Admits N6.3bn 17-Year WEMA Bond

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Segun Oloketuyi, MD/CEO, Wema Bank

The Nigerian Stock Exchange has announced the Listing by Introduction of N6,295,000,000 Series 1:7-Year 18.50% Fixed Rate Bond Due (2023) under the N50,000,000,000 Wema Funding SPV Plc Debt Issuance Programme.

Commenting on the listing, Oscar N. Onyema, Chief Executive Officer, NSE, said: “We are pleased to be listing the Wema Fund SPV PLC bond, a further affirmation of our unique platform to help businesses access capital. Despite the challenging macro environment, this bold step by Wema Bank is indeed commendable as only businesses that continue to execute on their strategy will be at a vantage position to benefit when the economy rebounds.”

Speaking at the Bond Listing ceremony, Managing Director of Wema Bank, Segun Oloketuyi noted that the bank’s turnaround plan which began in 2009 is now in its growth phase, hence the raising of tier II capital to ensure availability of long-term capital to support growth.

“We remain committed to our growth plans and to constantly upgrading our services to give our customers a delightful banking experience,” Oloketuyi said. The Wema Bank MD also highlighted the importance of listing Wema SPV bond on the NSE platform.

“The Nigerian Stock Exchange provides a unique platform which enhances the liquidity of bonds traded on it. Thus, bondholders can easily monitor the value of their investments,” he said.

The Bonds issued will be used to fund the acquisition of the relevant Wema Bonds issued by Wema Bank Plc and FGN Bonds (where applicable) issued by the Debt Management Office.

Gross proceeds of the Bonds under the Programme is factor to purchase Wema Bonds from the Sponsor pursuant to the Master Bonds Purchase Agreement entered into between the Sponsor, the Issuer and the Trustee, and/or FGN Bonds issued by the Federal Government of Nigeria.

Tana Africa Offloads 25% Stake in Promasidor for $399m

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Investment firm, Tana Africa Capital sold its 25% stake in agrofood group, Promisador to Japanese Ajinomoto Co. for $399 million.

In a statement reported by Africa Capital Digest, Duncan Randall, Tana Africa’s Managing Director said:

“Tana Africa Capital and its shareholders have enjoyed a positive, decade long relationship with the Promasidor Group…We have highly valued the collaborative and constructive partnership that we have enjoyed with Promasidor over all these years”.

Tana Africa Capital said on its website it plans, under its strategy, to invest $20-$75 million to buy minority stakes in companies that are already well established in their markets. If it successfully achieves this, the company which is the product of a JV between family investment group Ernest Oppenheimer & Son and Singapore sovereign fund Temasek, would generate a plus-value of $324 million.

The sale also falls in line with Ajinomoto Co’s strategy to acquire 33% of Promisador. The latter is present in nine African nations and sells its products in 33 countries of the region. In 2015, it generated a turnover of $673 million.

Nigerian Forex Crisis Impacts Africa PC Market

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After posting annual declines for six quarters in succession, the Middle East and Africa (MEA) PC market finally exited the third quarter of 2016 close to flat, with year-on-year growth of 0.4% based on shipments of 3 million units, according to global technology research and consulting firm International Data Corporation (IDC).

Desktop shipments suffered a significant decline of 16.9% to total 1.1 million units, while notebooks shipments grew 14.5% to reach 1.9 million units.

“The recovery witnessed in Turkey, the largest single market in the MEA region, was the biggest contributor towards this growth, due to unusually low shipments in Q3 2015 and a faster-than-expected recovery from the failed military coup,” says Fouad Charakla, Senior Research Manager for client devices at IDC MEA.

“At the same time, some recovery from instability in the North African markets, when compared to last year, also contributed towards PC shipment growth, while deliveries as part of large education deals in the UAE and Kenya were other notable market drivers.”

In addition, Microsoft no longer groups the Gulf Cooperation Council (GCC) countries with its emerging markets when it comes to setting prices for its operating systems. As such, these countries are now charged slightly more for Windows OS on PCs than was previously the case, which resulted in a few vendors pushing their sell-in orders prior to the change coming into effect. This was one of the factors driving notebook shipments across the six Gulf countries.

The regional PC space continued to consolidate further in terms of market players, with the top five vendors accounting for around 77% of PC shipments during Q3 2016, compared to around 67.5% for the same quarter last year. Market share rankings for the top five vendors in the region also remained unchanged compared to the previous quarter, with all five maintaining their respective positions. Meanwhile, local assemblers continue to lose market share due to stiff competition from refurbished PCs and aggressively priced notebooks from multinational brands.

HP recorded significant growth both quarter on quarter and year on year in Q3 2016, accounting for the highest market share ever secured by a single PC vendor over the past decade. Lenovo maintained its position at number two; a large delivery in the UAE education sector helped the vendor boost its position in the overall commercial segment. Dell’s shipments declined year on year in each of the vendor’s three biggest country markets – South Africa, the UAE, and Saudi Arabia. Asus was the fastest growing vendor in the region, while Acer also recorded some shipment growth.

“IDC’s forecast for the MEA PC market has been revised downwards owing to a range of factors that are expected to cause the regional PC market to decline over the coming two quarters,” says Charakla.

“These vary from country to country, but primarily include currency issues, which are affecting key markets such as Nigeria, Egypt, Turkey, and South Africa, and the constriction of government initiatives caused by low crude oil prices. Such factors are expected to lead to project delays or even cancellations across the GCC, as well as in Nigeria and other African countries.”

With the above-mentioned macroeconomic inhibitors expected to persist beyond this year, IDC does not predict any significant overall improvement in PC shipments in 2017. In 2018 and beyond, however, MEA markets are expected to record marginal growth each year until 2020 (the end of the forecast period), primarily stemming from the less mature markets of the region where PC penetration stands at some of the lowest levels – specifically Nigeria, Pakistan, and Egypt. These growth forecasts also depend on these countries gradually and partially recovering from the present economic challenges they face.

IATA: Air Cargo Connectivity Enhances Global Trade

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IATA

The International Air Transport Association (IATA) released a study identifying a quantitative link between a country’s air cargo connectivity and its participation in global trade. A 1% increase in air cargo connectivity was associated with a 6.3% increase in a country’s total trade.

“Air cargo is key in supporting the current global trading system. In 2015, airlines transported 52.2 million metric tons of goods, representing about 35% of global trade by value. That is equivalent to US $5.6 trillion worth of goods annually, or US $15.3 billion worth of goods every day. We now have quantitative evidence of the important link between air cargo connectivity and trade competitiveness. It’s is in the economic interest for governments to promote and implement policies for the efficient facilitation of air cargo,” said Brian Pearce, Chief Economist at IATA.

Key policy level and practical industry modernisation priorities to improve countries’ air cargo connectivity identified in the study encompass:

Legislative priorities include the ratification and implementation of:

  • 1999 Montreal Convention to enable countries to adopt e-freight World Trade Organisation (WTO) Trade Facilitation Agreement and World Customs Organisation (WCO) revised Kyoto Convention to implement smart border solutions that reduce complexity and costs

The practical industry modernisation priorities include:

  • Facilitation of electronic processing, through electronic Air Waybills (e-AWB) and e-freight
  • Implementation by governments of “single window” processing – ultimately enabling submission of all regulatory documents for trade via one channel
  • Coordinated border agency procedures to reduce duplicative controls
  • Implementation of risk management controls at borders to combat illicit activities and facilitate compliant traders
  • Implement processes to approve release of shipments in advance of their actual arrival

“Facilitating trade with efficient air cargo processes requires a strong partnership between governments and industry. Governments have the important role of implementing global standards and agreements to facilitate trade and make it possible for airlines to modernise processes. In turn, the industry needs to embrace these opportunities to improve competitiveness and provide customers with enhanced shipping quality, service and better predictability,” said Glyn Hughes, Global Head of Cargo, IATA.