Wednesday, November 26, 2025
25.3 C
Lagos
Home Blog Page 303

Starwood Hotels Ramps up Nigeria Portfolio with New Hotel in Benin

0

POINT 1: Accelerating growth in emerging markets across the globe, Starwood Hotels & Resorts Worldwide Inc. has announced the signing of Four Points Benin City, Nigeria.

Owned by Eagle Hospitality and Leisure Limited, the sleek new Four Points hotel is built for the modern traveler with an emphasis on approachable design and stylish comfort.

Conveniently located in the heart of Benin City – the capital city of Edo State, one of the 36 states in Nigeria – the hotel is situated within a five-minute drive to the airport and no more than 10 minutes from the government and business district.

POINT 2: “Four Points by Sheraton Benin City will further consolidate our strong Nigeria portfolio, opening up yet another emerging destination for international travel,” said Michael Wale, President, Starwood Hotels & Resorts, Europe, Africa and Middle East.

“With five hotels operating and another four in the pipeline, including Four Points Benin City, Nigeria is already one of our strongest markets in the region, and the signing of this hotel reinforces the growing demand for affordable lifestyle brands in rapidly developing markets.”

“We are delighted to introduce the popular Four Points brand to Benin City and expect this new hotel to meet the rising demand for high-caliber lodging in this fast-growing market, soon emerging as a leading choice among business and leisure travelers,” said Mr. Chris Oshiafi, Group Managing Director of Pan African Capital Plc and Chairman of Eagle Hospitality and Leisure Limited.

POINT 3: Four Points Benin City offers 176 spacious guest rooms and suites along with exciting food and beverage options including an all-day dining restaurant, a pool bar and the brand’s signature Best Brews™ program featuring local beers at the lobby bar and lounge – the ideal spot to watch sports matches and unwind with friends and colleagues.

Other hotel facilities include a state-of-the-art 24-hour fitness center, an outdoor pool, 400 square meters of flexible meeting spaces and a fully equipped business center.

The hotel will provide all of the brand’s defining elements including the signature Four Points bed, complimentary bottled water in all rooms and suites, fast and free Wi-Fi throughout the hotel, and an energizing breakfast with fresh coffee that helps guests start and end the day right.

POINT 4: “Responding to the demand for affordable yet innovative lodging options is core to our development strategy,” said Neil George, Senior Vice President Acquisitions & Development, Starwood Hotels & Resorts, Africa & Middle East.

“Four Points has the largest number of rooms in Starwood’s global pipeline and its compelling blend of comfort, style and affordability make the brand increasingly attractive for owners and developers.”
With over 200 hotels in nearly 40 countries around the world, Four Points continues to penetrate new markets, globally.  The brand is on track to expand its portfolio of rooms by more than 50% in the next five years.

Africa, Middle East PC Market Falls 13% in Qtr2

0

The Middle East and Africa (MEA) PC market experienced a 13.3% year-on-year decline in shipments in the second quarter of 2016 to total 2.9 million units, according to global technology research and consulting firm International Data Corporation (IDC).

While this is a continuation of a long-running tend, the overall decline seen in Q2 2016 was the slowest in the past five quarters. When segmenting the market, notebook shipments fell 11.4% to total 1.7 million units, while desktops suffered a sharper decline of 15.7% to total 1.2 million units.

“The speed of the market’s slump was slowed by the growth seen in countries such as Turkey, Egypt, Morocco, and Tunisia,” says Fouad Charakla, Senior Research Manager Personal Computing, systems, and infrastructure solutions at IDC Middle East, Africa, and Turkey.

“But some key markets experienced significant declines, with Nigeria’s shipments suffering the biggest fall at 63.4% year on year, while the Saudi PC market almost halved in size. Other key markets to experience notable declines included the Rest of Middle East sub-region (Iran, Iraq, Syria, Yemen, Palestine, and Afghanistan) and the smaller Gulf markets (Bahrain, Oman, Kuwait, and Qatar). The reasons for these declines vary from country to country but include political instability, currency issues and fluctuations, security concerns, low oil prices, and high levels of inflation.”

Another key reason for the overall decline was a significant slowdown in consumer demand, caused primarily by the on-going shift away from PCs towards tablets and smartphones. This shift is particularly pronounced in the consumer segment, although home users continued to account for the majority of PC demand in the region.

The market continued to see some consolidation in terms of vendor share, with the top five players combined gaining share both quarter on quarter and year on year. Indeed, the top three vendors – HP Inc., Lenovo, and Dell – accounted for over 60% of overall PC market share in Q2 2016, and over 70% of demand stemming from the commercial segment.

Notebook vendor Toshiba has all but exited the region’s PC market, with the vendor recording only a few shipments in just one country during the quarter.

Despite losing market share from Q1 2016, HP Inc. was once again the region’s leading PC vendor by a significant margin, courtesy of its strong distribution and channel network. Lenovo retained its position at number two, dominating the consumer segment with its strong presence in the retail space.

Dell ranked third, experiencing notable growth within both the corporate and SMB segments, while fourth-placed ASUS was the only player among the top five to increase its shipments year on year. The vendor continues to focus on the consumer segment, which is where it experienced gains. Acer suffered the sharpest decline of the leading vendors, after suffering intense competition in the consumer space.

“Demand in the MEA PC market will continue to be inhibited by a variety of factors over the coming quarters,” says Charakla.

“However, the market will decline at a slower rate than previously experienced. It is worth noting that IDC’s forecast for Turkey, the single biggest market in the region, has been revised significantly downwards for the second half of 2016 due to the insecurity and instability that has followed July’s failed coup attempt. Post 2016, the MEA PC market will likely return to a slow growth trend as PC penetration in certain parts of the region is still relatively low and we expect IT adoption in general to continue increasing steadily.”

Standard Bank Predicts Increased M&A Activity in African Telecom, Media, Technology

0

Standard Bank, Africa’s largest bank by assets, is partnering with international news and events provider TMT Finance for the inaugural TMT Finance Africa in Lagos 2016 Conference, which is bringing together the leading decision makers in African telecoms, media and technology (TMT) to Lagos on September 20, 2016.
The event will feature over 60 key C-level speakers from the most active and innovative companies, investors and advisers in Africa, including: IHS Towers, Airtel, Standard Bank, Etisalat, MTN, Vodacom, Africa Internet Group, Ringier, iRoko, MainOne, iPNX, Spectranet, Fibersat, Citi, Convergence Partners, Standard Chartered PE, Carlyle, Africa Capital Alliance and Emerging Capital Partners.
“As one of the leading TMT banks in Africa, we are excited to partner with TMT Finance for this event, which will bring the key telecom, media and technology companies, investors and advisers to Lagos in Nigeria,” said Standard Bank’s Global Head of TMT, Nina Triantis, who will be speaking on the TMT M&A Panel at the conference in one of the key sessions of the day.
The event comes at a time of accelerating investment, innovation and M&A activity across Africa, and in particular Nigeria, with Lagos widely viewed as the central hub for technology innovation and investment in Africa.
“Investment and M&A in TMT continues to be especially active in Africa, with many companies across the continent considering strategic options, growth along diverse verticals, private debt and equity financing rounds, M&A, and public listings,” said Standard Bank’s Triantis.

“The debt markets continue to be supportive for the right companies in Africa, despite macro challenges in many African countries as well as global uncertainty, though the funding currency and medium will inevitably reflect these challenges,” she added.
Current deals in Africa being reported by TMT Finance News include MTN’s Nigerian IPO, the sale of South Africa’s Neotel to Liquid Telecom, Millicom’s strategic review of its African assets, several fibre investment projects and fundraisings, and the potential listing/ sale of Nigerian fintech firm, InterSwitch.
The conference includes five Leadership Panel Debates, five Visionary Keynote Speeches, 8 Peer to Peer Round Tables and Five Networking Sessions.
Key session themes announced include: Telecom Leadership Africa: Broadband Infrastructure Investment; Digital Africa; Mobile Infrastructure Strategies; Mergers and Acquisitions; Private Equity Africa Roundtable; Regulation and Policy; Financing Telecoms; Broadband Infrastructure; Investing in Mobile Data and Services; Mobile Banking, Fintech and M-Health; and Media and Convergence.

Facebook CEO Visits Nigeria to Witness Africa’s Tech Revolution

0
facebook

Facebook CEO, Mark Zuckerberg visited Nigeria this week on his first trip to Africa, using his time in the country to visit the Yaba technology hub in Lagos, meet with developers and partners, and explore Nollywood.
Zuckerberg is in Nigeria to listen and learn and take ideas back to California on how Facebook can better support tech development and entrepreneurship across Africa.
One of his first stops on the trip was to visit a ‘Summer of Code Camp’ at the Co-Creation Hub (CcHub) in Yaba, known as the Silicon Valley of Nigeria.
CcHub opened in 2011 and at the time didn’t even have an office. Five years later, they fill three floors and the roof of a building. At CcHub, people can learn how to code, developers can get help launching their first products and find mentors and funding.
At CcHub, Zuckerberg met with developers like Temi Giwa, who runs a platform called Life Bank that makes blood available when and where it is needed in Nigeria. Life Bank saves lives by mobilising blood donations, taking inventory of all blood available in the country, and delivering blood in the right condition to where it is needed.
After visiting CcHub Mark Zuckerberg, CEO of Facebook, said:
“This is my first trip to sub-Saharan Africa. I’ll be meeting with developers and entrepreneurs, and learning about the startup ecosystem in Nigeria. The energy here is amazing and I’m excited to learn as much as I can.
“The first place I got to visit was the Co-creation Hub Nigeria (CcHUB) in Yaba. I got to talk to kids at a summer coding camp and entrepreneurs who come to CcHub to build and launch their apps. I’m looking forward to meeting more people in Nigeria.”

Meeting Developers at Andela
Mark then went to Andela, an engineering organisation that is building the next generation of technical leaders in Africa.
Andela is a business that recruits the most talented technologists in Africa and shapes them into world-class developers through a four-year technical leadership program.

In the two years since it was founded, Andela has accepted just over 200 engineers from a pool of more than 40,000 applicants. Andela developers spend six months mastering a technical stack and contributing to open source projects before being placed with global technology companies as full-time, distributed teammates, working out of Andela headquarters in Lagos and Nairobi.
Earlier this year, the Chan Zuckerberg Initiative invested in Andela after being impressed by the company’s innovative model of learning and its drive to connect the global technology ecosystem with the most talented developers in Africa.
Seni Sulyman, Director, Andela Lagos, said: “We are excited and honored to welcome Mark Zuckerberg to Lagos. His visit reinforces not only his support of Andela’s mission, but his belief that indeed the next generation of great technology leaders will come out of Lagos, Nigeria and cities across Africa. Andela has created a platform for passionate, driven software developers and engineers to break into the global tech ecosystem, but the barriers to entry are still very high. Mark’s visit demonstrates to all Nigerian developers and entrepreneurs that they’ve caught the attention of the tech world, and they are capable of succeeding on a truly global level.”
At the end of the day, Zuckerberg stopped by an Express WiFi stand in Lagos owned by Rosemary Njoku.

Facebook’s Express WiFi lets entrepreneurs like Rosemary set up a hot spot to help their community access apps and services built by local developers.

Great Nigeria Insurance Settles N700m Claims in 6 Months

0
Cecilia Osipitan, MD/CEO, Great Nigeria Insurance Plc
Cecilia Osipitan, MD/CEO, Great Nigeria Insurance Plc

Great Nigeria Insurance Plc, one of the foremost composite underwriting firms in the country has again shown avowed commitment towards prompt claims settlement. The insurance company recently released its claims record detailing total claims paid between January and June 2016.

According to a statement from the company, over N0.7 billion was paid out in claims settlement in six months. General Business accounted for over 19% of this figure while Life insurance business constituted about 80% of the total claims settled within the period under review.

While commenting on the Claims report, the Chief Technical Officer, Mr. Folusho Alliyu stressed the Company’s affirmed commitment towards claims settlement. He equally mentioned that the continuous existence of any underwriting firm depends largely on its ability to fulfil its obligation to its customers as and when due.

In his words: “Prompt claims settlement is not just an attribute but a culture that has been adopted by all personnel in Great Nigeria Insurance Plc; we do not intend to fall short of this obligation and we will continually strive to make good our promise of exceptional service delivery at every point in time”. Finally, he encouraged Nigerians to imbibe the Insurance culture as a vital part of their daily existence.

Also lending her voice, the Managing Director/CEO, Mrs. Cecilia O. Osipitan said that insurance works on the promise to pay compensation for any insured in the course of any eventuality. She urged all policy holders to ensure the immediate report of any loss experienced to the company to facilitate prompt settlement.

She further mentioned that Great Nigeria Insurance Plc has overtime upgraded on its processes and Information Technology infrastructure having realised that improved real time and cutting-edge technology in pushing the frontiers of its operations cannot be undermined.

Mrs. Osipitan stated that the company has in place a responsive claim process which ensures that customers do not go through any stress in getting their claims settled.

“The processes involved from the moment a claim is reported to the period the customer receives the cheque have been made as seamless as possible.”

She said that it is almost impossible for any genuine claim not to be paid.

Great Nigeria Insurance Plc continues to stay true to its vision of being the insurance company of choice for keeping promises to stakeholders by providing world class insurance services through prompt claims settlement, superior customer service as well as exceptional service delivery.

Great Nigeria Insurance Plc is poised to become the best underwriting firm in the country in the nearest future.

AfDB, Japan Unveil $3bn Anti-Poverty Private Sector Initiative in Africa

0
Akinwumi Adesina, AfDB President

The African Development Bank (AfDB) and the Government of Japan announced today they have set a joint target to provide US$ 3 billion for private sector development in Africa during the next three years, substantially increasing the resources devoted to boosting economic growth and fighting poverty in the region. The resources will be provided under the third phase of the Enhanced Private Sector Assistance for Africa (EPSA) initiative.

Japan will target to provide US$ 1.5 billion over 3 years through the Japan International Cooperation Agency (JICA). The AfDB expects to finance at least an equal amount. On top of this, Japan is ready to provide an additional special allocation of US$ 300 million for co-financing with the AfDB to help African countries access the best low emitting clean coal technologies available.

“AfDB and Japan have agreed today to upgrade the joint EPSA initiative, which has been at the core of our long-standing partnership, helping boost private sector-led growth in Africa”, said Japan’s State Minister of Finance Taku Otsuka. “We look forward to continued close collaboration with the AfDB so as to further accelerate the development of the African private sector, by delivering resilient and high-quality infrastructure and strengthening the health system.”

“This is a significant expansion of our support to the private sector, which will play a critical role in Africa’s economic transformation,” said AfDB President, Akinwumi Adesina.

“The scaling up of the Enhanced Private Sector Assistance for Africa Initiative will help increase access to electricity, boost the industrialization of the continent and improve the quality of millions of lives in Africa. These are all key components of our High 5s. We are proud to partner with Japan, one of our key strategic partners, in this endeavor.

The High 5s are the Bank’s five areas of focus to advance the agenda of Africa’s economic transformation over the next 10 years: Light up and Power Africa, Feed Africa, Integrate Africa, Industrialize Africa, and Improve the quality of life for the people of Africa.

Announced at the first-ever TICAD Summit held on African soil, the third phase of EPSA will focus on economic infrastructure (transport, energy, etc.) as well as social infrastructure (health, education, nutrition). EPSA was launched at the G8 Summit in Gleneagles in 2005.

Its scope has been expanded to include sectors such as education and health, which also contribute to promoting private sector development. Japan provided the equivalent of US$ 1 billion of concessional loans under EPSA-1 (2005-2011) and is providing US$ 2 billion under the current EPSA-2 (2012-2016).

The Enhanced Private Sector Assistance for Africa Initiative has played a key role in the development of regional infrastructure. It has helped increase the AfDB’s private sector operations, which have expanded nearly ten-fold over the lifespan of the first phase and almost doubled since the start of EPSA 2.

 

Background

The Enhanced Private Sector Assistance for Africa (EPSA) Initiative is a framework to support implementation of the AfDB’s Strategy for Private Sector Development. Designed in partnership with the Government of Japan, it draws on successful experiences in Asia and around the globe. It is built around three components:

  • The Accelerated Co-Financing Facility for Africa(ACFA) is a sovereign co-financing arrangement between AfDB and JICA, where JICA lends on preferential terms to borrowers under this scheme.
  • The Non-Sovereign Loan (NSL) is a line of credit from JICA to AfDB on concessional terms to help fund the Bank’s private sector operations.
  • The Fund for African Private Sector Assistance(FAPA) is a Multi-Donor Trust Fund for technical assistance and capacity building for the Bank’s public and private sector clients. The Government of Japan is the major contributor to the Fund, which is managed by the AfDB.

World Bank, Partners Launch $24bn Universal Health Coverage in Africa

0
un

The Sixth Tokyo International Conference on African Development (TICAD-VI), African heads of state and partners vowed to accelerate progress toward universal health coverage (UHC) in Africa.

To help countries implement their health reforms, the World Bank and the Global Fund to Fight AIDS, TB and Malaria (Global Fund) committed to invest $24 billion in Africa over the next three to five years.

The announcement was made ahead of the two-day TICAD conference, which is Japan’s flagship program for African development. One of the focal points at this year’s conference is expanding UHC in Africa.

African countries can become more competitive in the global economy by making several strategic investments, including investing more in their people, their most prized resource,” said Jim Yong Kim, President of the World Bank Group“A critical part of this commitment is to accelerate progress on universal health coverage—ensuring that everyone, everywhere has the opportunity to live a healthy and productive life.”

The World Bank and the World Health Organisation (WHO), together with the government of Japan, Japan International Cooperation Agency, the Global Fund, and the African Development Bank also launched UHC in Africa: A Framework for Action, which provides a big-picture view of UHC in the region and identifies key areas that will be critical to achieving better health outcomes, such as financing, service delivery, targeting vulnerable populations, mobilizing critical sectors and political leadership.

At the G7 Ise-Shima Summit in May, bearing this TICAD in mind, I took initiative in leading the discussion on reinforcing the global health architecture, which will strengthen responses to public health emergencies, and on promoting UHC, which will also contribute to crisis preparedness,” said Shinzo Abe, Prime Minister of Japan.

‘UHC in Africa’ will present guidelines and concrete framework for action that will serve as references for achieving UHC under the ownership of respective countries, as well as by cooperation among the international society.”

The funding announcements by the World Bank and Global Fund are one of several steps in the years ahead toward UHC in Africa. To that end, the government of Japan will support the World Bank and WHO’s annual report to track UHC progress in Africa.

The World Bank and WHO have agreed to hold in 2017 in Tokyo a high-level annual meeting on monitoring progress toward UHC in Africa.

Through its International Bank for Reconstruction and Development and International Development Association windows, the World Bank Group expects to contribute $15 billion in the next five years to investments that are critical to UHC, including through the Global Financing Facility, the Power of Nutrition, early childhood development, pandemic preparedness, targeting the poor, crisis preparedness and response, and leveraging the private sector. The commitment assumes a successful IDA 18 replenishment.

The Global Fund’s $9 billion commitment for 2017 through 2019 includes $6 billion of investments in programs that treat and prevent HIV, TB and malaria, and also includes $3 billion of investments in systems for health such as strengthened procurement systems and supply chains, improved data quality and data management systems, and strengthened human resources for health. The commitment assumes a $13 billion Global Fund replenishment, which launches in September 2016.

“Reducing and preventing HIV, TB and malaria is critically important to alleviate the burden on health systems, but in order to accelerate universal health coverage and all of the health SDGs, we also are actively investing to build resilient and sustainable systems for health,” said Mark Dybul, Executive Director of the Global Fund to Fight AIDS, Tuberculosis and Malaria.

Although the evidence is clear that investing in health pays dividends for countries, challenges remain in the delivery and financing of health care.

In 2014, African countries spent about $126 billion of domestic funding for health, and WHO estimates that an additional $65 to $115 billion in domestic funding can be mobilised annually over the next ten years,” said Margaret Chan, Director-General of the World Health Organization.

WHO is working with countries in Africa to generate those funds and help them shape the policies that will put them to best use.”

The World Bank Group, government of Japan and private sector partners recently launched the Pandemic Emergency Financing Facility, an innovative, fast-disbursing global financing mechanism designed to protect the world against deadly pandemics, which will create the first-ever insurance market for pandemic risk. It also will promote greater global and national investments in preparing for future outbreaks and strengthening national health systems.

IEI Anchor Pension: N55bn Pension Assets, 90,000 RSAs, 23 States

0

L-R: Mr. Modestus Anaesoronye, President, National Association of Insurance and Pension Correspondents [NAIPCO], Mr. Glory Etadiovue, Managing Director/CEO, Jolaade Oduntan, Head, Business Development & Strategy and Mr. Cyril Ojo, Regional Manager; all of IEI Anchor Pension Managers Limited at NAIPCO AGM in Lagos yesterday.
L-R: Mr. Modestus Anaesoronye, President, National Association of Insurance and Pension Correspondents [NAIPCO], Mr. Glory Etadiovue, Managing Director/CEO, Jolaade Oduntan, Head, Business Development & Strategy and Mr. Cyril Ojo, Regional Manager; all of IEI Anchor Pension Managers Limited at NAIPCO AGM in Lagos yesterday.
IEI Anchor Pension Managers Limited is currently managing pension assets of over N55 billion in its portfolio from 90, 000 Retirement Savings Account [RSA] holders in 23 states of the federation.

Mr. Glory Etaduovie, Managing Director/CEO, IEI Pension Managers Limited said the company’s growth pace is faster now as it continues to gain more ground in the pension market. He said the growth plan of the company is aggressive increase in the number of RSAs.

“Effective market delineation, deployment of our marketing philosophy and drilling down, marketing tools to promote presence and efficiency and presence and importantly, good staff motivation and a sense of security are also part of the growth plan.

Investment wise, the regulator plays a key role. We have major investment guidelines. This ensures relative fund safety. This is the future of many people. So, there is no room for un-necessary adventure.

However, the market presents good opportunities and initiatives – a good blend of Bonds, Treasury Bills, Money market and other safe investments. Private Equity and Infrastructure development are new areas of gradual action.”

On market spread, the IEI Anchor Pension CEO said:

“We have good presence in 23 states of the federation. The market presently has two major strata – private and public sectors.

The public sector includes the states and federal. Not many states have latched on to the Contributory Pension scheme, though. We are also positioning in areas with strong potentials. Our RSA client size is over 90, 000 contributors.”

He added that IEI Anchor Pension is competing effectively in the market. “One thing stands out, the customer remains the ultimate and determinant of direction. Our size makes us nimble and smartly responsive.

This is one advantage we wield. Everyone gets deserved attention. This we pursue to achieve through training and retraining of staff. An informed and engaged staff is a real asset.”

He described the pension industry as interesting and exciting. “Regulation is strong. The market is only about 30 percent  explored. It is also a form of social service. You also derive strong satisfaction when you support the aging with good service, as well as prepare them for graceful retirement. The industry is not over – populated.

This is good for control and sanity. If there is ease of entry and exit, it would create grave danger for it. Contributory pension activities are relatively new. It presents its own challenges. But the collaborative style of the industry makes responses better put together. It is getting stronger and stronger.

It is going to be a critical tool for development shortly. It is positioning. The government is aware of this and seeing it as a partner in progress. It is thus cautiously positioning for collaborative activities. There is a serious gap in infrastructure. This affects other growth and development.”

Etaduovie listed ICT as having a critical role in the success of the pension industry due to the large number of people, records, funds and other statistical details for analysis and decision making.

“This greatly reduces human errors and increases efficiency and effectiveness. It also creates respect for the industry at large, if there are less complaints.The industry regulator recommends at different intervals, new ICT needs. This is apart from individual corporate initiatives

We have deployed much of the needed ICT needs. Presently, we are focused on this for further improvements and action. This enhances customer service, enquiries and enhanced interaction for better satisfaction. People want constant up-dates as to the safety of their money and what the money is doing.”

On the challenges facing the new pension scheme, Etaduovie said:

“These are acceptability, transition, harnessing the informal sector and the economy. Some persons of the old scheme are yet to come to terms with the contributory scheme. Such ones, if in good position stand in the way of implementation. Transition challenges for states because of the old scheme and backlogs.

In other instances, we have the bureaucracy of domesticating the PRA in the states.  The poor business environment is also affecting private section adoption and implementation. Some who do, do not remit the staff deductions or theirs as well. This is immoral and they risk penalty from the regulatory body.

All of these challenges and others are constantly being reviewed by the industry. The Director General and her team are keeping close eyes on details, as the industry matures.”

Nigeria Seeks $21bn China Loan to Finance Budget

0
Udoma Udo Udoma, Minister of National Planning
Udoma Udo Udoma, Minister of National Planning

Nigeria’s Minister of Budget and National Planning and Senator Udoma Udo Udoma announced following its visit to China last July, that the country was in talks with the Chinese import-export bank China Exim Bank for a $21 billion loan to finance its 2016 budget and develop new infrastructure projects.

The loan, if secured, should allow the country to plug its budget deficit which has been estimated at $11.1billion and finance infrastructure projects to boost economic growth.

According to the same source, the Chinese bank has already granted Nigeria a loan of $1.8 billion. Moreover, in April 2016, during President Buhari’s visit to China, Beijing agreed to lend the West African nation $6 billion to finance its infrastructure development programme.

Nigeria, which recently lost its position of leading economy of the continent, is presently facing an economic crisis fostered by Naira’s plunge, the drop in oil prices, sabotaging of oil infrastructures, capital outflow and terrorism.

The nation’s overall debt stood at $55 billion on December 31, 2015 of which $10.9 billion of external debt and $44 billion of internal, according to the country’s debt management Bureau.

The financial aid which is part of China’s commitment to invest $60 billion in Africa to support 10 cooperation progammes over three years, at the last Forum on China-Africa Cooperation (FOCAC) held in Johannesburg in December 2015.

Alain Okpeitcha

FG to Invest $1.5bn in National Transmission Power Network

0

The Federal Government of Nigeria said it will inject in its national power transmission network $1.5 billion by 2019.

The investment falls under a 5-year extension programme implemented by the Transmission Company of Nigeria (TCN) and which aims to increase the network’s transmission capacity to 11,500 MW.

This will be achieved through the step-by-step implementation of 59 projects. TCN has indeed increased in 2016, its capacity from 5,500 MW to 6,000 MW. It now wishes to raise intermediate transmission capacities from 7,500 MW in 2017, to 8,200 MW in 2018.

Cost for associated works was estimated to $7.5 billion. Besides government’s contribution of $1.5billion, the TCN hopes to secure around $3.4 billion from international institutions, and via loans and subsidies. It will add to these, $2.6 billion from its own revenues.

The various contributions are part of a collective effort by actors of the Nigerian power sector to improve it.

To this end, the Nigerian Bulk Electricity Trading and the Central Bank of Nigeria are currently in talks for an additional funding of about $547 million which will be used to boost revenue of power developers that serve the nation.

Nigeria recently lost its position of largest African economy, and presently produces around 4,100 MW for an estimated demand of 12,000 MW.

Gwladys Johnson

Business, Risk Leaders to Meet in Lagos Oct 2O

0

Leading risk management and insurance players, including key regional insurance regulators, from across West Africa will be taking part in Commercial Risk Africa’s Risk Frontiers – West Africa: Driving the risk management agenda one-day seminar in Lagos on October 20th, 2016.

Economic growth in Sub Saharan Africa (SSA) has been one of the defining trends in frontier markets. Economies that had been dormant for years have emerged to attract billions of pounds of foreign investment into their natural resources, infrastructure and consumer goods sectors.

Despite declining oil prices and an economic slowdown in China, the economy of SSA is still set to grow. It is also the fastest growing insurance region, behind emerging Asia, with premium growth of 4.5% to 5% expected in 2016 and 2017.

However, as the business environment changes at a rapid pace, it is essential for business to maintain a disciplined risk management approach. This unique one-day event provides an unparalleled opportunity for risk practitioners to interact with specialists from across the world.

Led by insurance regulator, Mohammed Kari from NAICOM, the event will focus on the challenges for businesses in maintaining compliance in a fast changing regulatory environment.

Delegates will also hear from the experts about how to manage the rapid depreciation of African currencies, both from a local and international perspective.

Other issues to be explored include:

  • Political risk & political violence;
  • Global legacy and sustainability issues;
  • Broad financial risk;
  • Operational risks; and
  • Risks around human capital and the skills gap.

The unique event will bring together risk practitioners from across the region to meet with both local and international experts, to share best practices and exchange their knowledge.

To ensure you don’t miss out on this free to attend event at the Four Points by Sheraton, Victoria Island, register at: http://www.commercialriskeurope.com/rfwestafrica16.

BREXIT and the African Sunset!

0

Theresa May was sworn in as Prime Minister of the UK and her opening speech resounded around the world and the British Pound recovered against the SA Rand and most currencies but was this just a blip.

So what does this mean to us in South Africa and what impact will this have on our struggling economy or Africa as a whole?

Well- Boris Johnson was appointed UK foreign Minister

If you recall, The Africans For Britain Group, who supported the Brexit because the group had argued that Britain leaving the EU would encourage trade with African and Caribbean nations and make it easier for people from those countries to travel to the UK.

So- where are they now? And what is their response? Silence is deafening.

So- can we expect the same see-saw or will the Pound make a brief comeback as decisions get made and more UK announcements are made?

What is for certain is that we will see more announcements being made on trade in the African continent from both the EU and I suspect the UK changes will happen too.

Some analysts have stated that the Brexit would surely weaken trade ties between the U.K. and African countries and with their over 100 trade agreements, this will result in lengthy processes, which could cause a decrease in trade volumes with the UK, but an increase in trade volumes with the EU.

We need to keep in mind that statistics from the UK’s Office for National Statistics and the United Nations Conference on Trade and Development for 2014, only 18 months back, it is calculated that exports from Africa to the UK represent about 5% of Africa’s total exports and that Africa is actually more worried about China’s slowdown, its biggest trading partner by far, than that of the UK.

So- Africa itself needs to focus on the EU as an export partner.

We know that the East African Community and the EU are due to sign an Economic Partnership Agreement in October and there are probably other agreements in the pipelines for countries.

South Africa has the UK based agreements in the Mining and Financial sector but these are in themselves not self-sustaining and job creation which is what is needed, more likely they are self-gain based.

So, financial- the bet lies on the EU and Africa – we need to manage this and watch the growth and changes, if the UK makes a move, the effect lies externally and not on us, we will flinch, but remain resilient.

About the Author

Chris Green – Financial Entrepreneur
[email protected]
A forerunner with Mortgage Origination in South Africa.

Established the first mortgage independent company in the UAE – Middle East.

Managed lead generation in the Money transfer industry internationally.

Studied Marine Radio, IT and Finance. Has expertise in IT technology background consulting in Database Management and Software Design.

Introduced the first artificial intelligence testing system for computer programmers into South Africa.

Has presented various papers and products in Dubai, New York, Boston, London, Dublin, Milan, Turin and Paris on subjects ranging from Darkroom Operations for IT to Creating Finance modules for Property Letting.

Currently an avid blogger, gatherer of information and loves politics, finance and the future.

His hobbies include making grappa, being a sous chef (foodie) to his chef wife and reads everything he can.

‘Why Old Mutual is Investing Millions in Nigerian Property & Agriculture’

0

This month, South African financial services firm, Old Mutual Investment Group announced a partnership with Nigeria’s sovereign wealth fund for the investment of US$700m in real estate and agriculture.

According to Diane Radley, CEO of Old Mutual Investment Group, $500m will focus on developing commercial real estate assets, while $200m will be allocated to farming. Both parties have equally committed $100m towards the real estate fund and $50m for the agriculture investment.

“We’ve put the initial capital into both the funds on a 50-50 basis… and we will look to source international and other local investors to come into the fund to make up the balance,” she toldHow we made it in Africa.

The fall in global oil prices has hit the West African powerhouse hard – oil exports make up the majority of government revenue. In June, the Central Bank of Nigeria was forced to unpeg the naira from the dollar and adopt a market-driven exchange rate system due to a scarcity of the US currency in the country. The naira has since lost around a third of its value.

However, despite these struggles, Radley said Nigeria’s long-term outlook presents an “enormous opportunity” for investors.

“There is an incredible will at a federal level to open up the economy to start growing and to attract investors into the economy. And that bodes very well for anybody who is looking at the long-term investor horizon.

“The demographics and fundamentals of Nigeria in the long term are a no-brainer.”

Radley added Nigeria’s commercial real estate space offers high-yield investment opportunities and the fund will look at properties with a dollar-income yield of about 8%.

“The three most-significant cities – Lagos, Port Harcourt, and Abuja – offer the biggest opportunities, with Lagos and Abuja being the two biggest areas of opportunity. So we will naturally concentrate our interest on those two. And partnering with the Nigeria Sovereign Investment Authority gives us a local player on the ground who will also be able to identify where opportunity arises and point us in that direction.”

The joint investment in agriculture will look at everything from dairy to citrus to beans, and Radley said there is significant opportunity to improve the country’s farming yields and better address rising consumer demand domestically, regionally and globally.

“For example, we are looking at a farm at the moment, which is fairly substantial in size, where less than 25% of the land is actually productive. So you’ve got an enormous opportunity to expand the level of productivity from that 25% to 80% or 90%.”

Radley added the dual investment in Nigeria’s agriculture sector is anticipating returns of around 20% – which is not easily found in Old Mutual’s home market.

“If you want to get close to the 20% yield, investing in South African farmland is not going to get you there,” she explained.

“One of the things about African agriculture is you need to diversify your investment… We are not going to put all our money into one farm.

“So it is not without risk, but the returns are very reasonable relative to that risk.”

Kate Douglas

Flydubai at Dubai Tourism East Africa Roadshow

0

Dubai-based airline flydubai is participating in Dubai’s Department of Tourism and Commerce Marketing’s (Dubai Tourism) first-ever East Africa roadshow joining 14 Dubai-based partners in showcasing a wide range of services and upcoming attractions.

flydubai will take part in the roadshow in Kampala on 24 August, where it will then continue to Dar es Salaam on 30 August.

The roadshow is a great platform for local operators to meet directly with the airline and learn first-hand about the services and choices passengers from the market have when choosing to fly directly to Dubai for business or leisure.

Commenting ahead of the roadshow, Issam Kazim, CEO at Dubai Tourism, said: “The potential of Uganda and Tanzania as a source market is positive, and this roadshow provides us with the opportunity to directly interact with the operators here and showcase what Dubai has to offer. We look forward to making long-lasting and fruitful trade relationships during the trip to further grow the tourism market in Uganda for the benefit of all.”

flydubai was launched in 2009 to help create free flows of trade and tourism in the region and further support Dubai’s vision to become an internationally recognised aviation and tourism hub. flydubai’s reliable, affordable and high quality product offering with both business and economy classes, makes it possible for more people to travel more often to Dubai.

Sudhir Sreedharan, SVP Commercial Operations at flydubai (GCC, Africa & Indian Sub-Continent), said: “We are very pleased to take part in Dubai Tourism’s first-ever roadshow to East Africa and to showcase brand Dubai and flydubai. We are committed to opening up underserved markets and providing reliable, direct air links to destinations that previously had no or very few connections to Dubai.

East Africa is a very important market that has shown significant growth over the past few years. We currently operate 82 weekly flights to 11 points in Africa, including 3 weekly flights to Entebbe and 4 weekly flights to Dar es Salaam and Zanzibar. These weekly frequencies will increase to 4 flights to Entebbe and 7 flights to Dar es Salaam and Zanzibar from October.”

flydubai currently flies to 11 destinations in North and East Africa: Addis Ababa, Alexandria, Asmara, Dar es Salaam, Djibouti, Entebbe, Hargeisa, Juba, Khartoum, Port Sudan and Zanzibar.

Business Class is available on most of the routes on the flydubai network and the carrier has recently introduced WiFi and Live TV on select flights.

The carrier, which is the second largest operator out of Dubai International, has built a network of 90 destinations in 44 countries and operates more than 1,700 flights a week out of it is home in Dubai International (DXB), Terminal 2 and the newly opened Al Maktoum International- Dubai World Central (DWC)

Global ICT Capacity Building Symposium for Human Dev

0

Local and international journalists are invited to submit their credentials for official media accreditation for ITU’s upcoming Global ICT Capacity Building Symposium (CBS-2016), which will take place in Nairobi, Kenya, from 6 to 8 September 2016.

The symposium is organised by ITU, the UN specialised agency for information and communication technologies (ICTs) and hosted by the Government of Kenya under the theme “Embracing Capacity Building Opportunities in the Digital Era”.

It brings together thought leaders from all over the world including government ministers, Directors-General of regulatory authorities, heads of UN organisations, CEOs of private sector companies, representatives from universities and research institutions, human capacity building executives and other experts in ICT capacity building.

The programme focuses on how education and training in the field of ICTs will contribute to the timely attainment of the SDGs across all sectors, including:

  • New skills requirements in a changing world – investing in tomorrow’s workforce
  • Innovative tools for education and learning
  • New digital learning methodologies, including online learning, social media tools and massive open online courses (MOOCs)
  • The central role of academia in building skills in the digital era.Day One(6 September) will feature a Ministerial Roundtable on ICTs, Sustainable Development Goals and future priorities for capacity building, and a Leaders’ Dialogue on public policies, industry skills requirements, and the role of academic institutions as providers of education and skills.