African Developers Thrill at Facebook’s F8 Conference

17/04/2016

Facebook announced at its annual F8 developer conference held in San Francisco on 12 and 13 April, that the company partnered with many African developers to launch products for the global market. Facebook, with its global reach and scale, is including African developers in its beta testing programme for the launch of new global products and features as it increases its presence and deepens its partnerships on the continent.

F8 hosts more than 2,600 people and hundreds of thousands of people watching via Facebook Live for two days of new products, tools, interactive demos and speakers to help developers build, grow and monetise their apps. And, more than 70% of Facebook’s developer partners are located outside the United States and about a third of the attendees at F8 joined us from abroad.

“We believe that local entrepreneurs and developers will be the ones to meet the needs of their immediate community, and we are working with developers to know how we can support them in doing so,” says Emeka Afigbo, Strategic Product Partnerships Manager at Facebook.

“We are listening to our developer partners in Africa, and the strong showing for F8 is a reflection of our commitment to doing more with our partners across the continent to help them build products and businesses.”

African developers who partnered with Facebook to launch products at F8 include Afrinolly (Entertainment, Nigeria), GumTree South Africa (Classifieds, South Africa), vZikoko (Entertainment, Nigeria), Jobberman (Jobs, Nigeria/Ghana), The Net (Entertainment, Nigeria) and My Music (Media, Nigeria).

In addition, this year Facebook brought F8 to developers around the world through F8 Meetups hosted with tech hubs around the world. In Africa, we hosted F8 Meetups in Nairobi, Lagos, Cape Town and Morocco where participants watched the sessions in San Francisco.

Two developer teams from Malawi won a developer challenge supported by mobile operator TNM Malawi and Facebook, and were featured on F8’s international stage.Maternitech, founded by three 22-year olds – Walter Moyo, Thandie Magasa, and Daniel Mvalo, provides educational information aimed at combating Malawi’s high under-18 pregnancy rate. The team was featured in an international livestream interview.

Talk To Me, an app created by 10-year old Panashe Jere, who learned to code at a Coding for Kids session at Malawi Hub. This app converts input text into voice so children always have someone to talk to.

Both teams were congratulated by Mark Zuckerberg and Sheryl Sandberg personally for their achievements.

Interswitch Partner SlimTrader on MoBiashara Portal for Hotels

Business Journal

17/04/2016

Interswitch, an Africa-focused digital payments and commerce company is excited to partner with SlimTrader, Sub-Saharan Africa’s leading turn-key ecommerce solution provider for businesses, on the deployment of a new Payment Monitoring Portal on the ‘MoBiashara for Hotels’ (MFH) platform.

With this partnership, SlimTrader will be better positioned to facilitate seamless transactions between Hotels and their guests.

Prior to the deployment of this feature on the MFH platform, hotels had no means of verifying payments for walk in guests from bookings on MFH’s partner travel booking sites. The lack of clarity meant that payments had to be verified via phone calls or emails – a very inefficient model.

This is the reason why Interswitch; the brand driven to innovate and push the boundaries of digital payments in Africa for the past 13 years, has partnered with SlimTrader to be the clearing house for payments from online bookings that are facilitated via SlimTrader’s MoBiashara for Hotels platform.

Below are excerpts from a chat with Mr. Akeem Lawal, the Divisional CEO, Switching and Processing, Interswitch Limited.

Hello sir. Please explain what the new Payment Monitoring Portal on SlimTrader’s MoBiashara for Hotels is?
The payment monitoring portal is another milestone in the road map of products and services we have jointly deployed with Slim Trader to enhance the business of local hotels across Africa.

This follows our partnership to enable booking and payments for hotels rooms online and at hotel front desks, the introduction of an integrated hotel management system as a service that allows hotels manage their inventory online and on premises as well as perform other value added services at the front desk like airtime purchase and even providing a prepaid card for foreign visitors to use while they are in Nigeria.

This portal will allow hotels see all bookings and payments made for hotels whether online or on premise, see the settlement due to them as well as reconcile bookings, stays and inventory.

What problems will the Payment Monitoring Portal solve?
The biggest problem that the Payment Monitoring Portal solves is the lack of visibility by hotels (their administrators and managers) into their financial position and condition at any point in time. For hotels connected to SlimTrader’s MFH, the portal provides real time display of all payments made to the hotel; whether those payments were made online on the hotel’s website, on other travel agency sites or in the hotel’s premises.

This means that those customers will no longer be confronted with situations in which a hotel is unable to confirm their payment. It also means that hotels will know exactly how much is in their account for settlement at each point in time, allowing them to plan their business more effectively.

What is Interswitch’s role in this partnership?
Interswitch provides the payment systems that integrate with MFH’s online and on premise platforms. We guaranty that once a payment is confirmed; the hotel will get their settlement the very next business day. We have partnered with SlimTrader to build this platform in a way that fully integrates into the Interswitch payment network, the most reliable payment network in Nigeria today.

Why have you chosen to partner with SlimTrader (MFH)?
Interswitch is constantly looking to partner with innovative companies that are solving payment challenges in Africa. SlimTrader is one of such companies; this is the reason why the company was one of the very first that Interswitch invested its $10million growth fund in to support their growth. We have since worked with SlimTrader to significantly enhance their value proposition in the hospitality space, co-creating several products, the latest of which is this Payment Monitoring Portal on SlimTrader’s MoBiashara for Hotels Platform.

When will this go live and how soon can hotels benefit from this?
The portal is already live and we have started offering it to hotels. Hotels can get this and the other innovative products and services as soon as they sign up for SlimTrader’s MFH platform.

What are the benefits to the end-user i.e. the hotel guests?
With this portal hotel guests never have to worry about discrepancies with hotel records with reservations made online. Paying online would be just as good as paying cash at the hotel premises. In fact, paying online might be better as the hotel guest can find discounts for booking and paying online on www.hotelnownow.com or other SlimTrader partner online travel agencies.

Now that Interswitch is stepping in as the ‘clearing house’ for all payments that come through SlimTrader (MFH) do you think Nigerian Hotels will be confident about receiving timely disbursement of their funds and on the basis of that trust alone, serve guests before they receive payment?

Interswitch is a global brand with a strong focus on Africa. We are trusted as the leading payment brand when it comes to making and receiving payments and settling those payments. This is because we have built and we operate a secure value driven payment systems that banks, governments, corporate organizations across several industry segments (from oil and gas to schools) have been using and trusting for more than 14 years.

This partnership is an opportunity to extend this value proposition to the hospitality industry as well. And like I said earlier this is just another milestone. There is more coming.

Union Bank Spearheads Agric Financing in Nigeria

Business Journal

17/04/2016

The Chief Executive of Union Bank, Emeka Enuwa said Union Bank will keep providing agricultural finance to rural farmers adding that as a member of African Rural Agricultural Credit Association (AFRACA), the Bank remains committed to providing rural finance in Nigeria.

“At Union Bank, we shall continue to provide credit to the agricultural sector and we encourage the other banks to do the same. We remain committed to driving investment in the agricultural sector as an active member of AFRACA and we urge all participants to align with AFRACA’s vision of a rural Africa, where people have access to sustainable financial services for economic development.”

Enuwa went further to say that Agriculture remains the vital tools that can get the country out of the current depleted foreign exchange stressing that agricultural financing and infrastructure development must remain an unbroken chain for economic development.

The Union Bank boss stated this in Abuja at a two day workshop on Catalysing the Diversification of the Nigerian Economy Through Effective Agricultural Finance organised by African Rural Agricultural Credit Association (AFRACA.)

He recounted that Nigeria was a major exporter of Palm oil, cotton and rubber in the 80s but the oil boom drifted the nation to focus on oil which has now become a commodity with a value that cannot drive the economy, saying that most African countries like Angola that are dependent on oil are also going through the same economic challenge, while urging government to increase funding to agriculture to enable more farmers have access to credits.

Enuwa pledged the continuous support of Union Bank to rural farmers through a revolving micro credit.

He said “Nigeria we all know is an oil producing nation as a number of other member nations, and over the last year or so, we find ourselves in a situation where oil revenue has declined approximately to 43% year to year, 2014 to 2015. And when your foreign currency earnings declines, it has a direct impact on the economy.

“There has been a shortage in foreign currency and this has affected sectors like manufacturing and others. It has led to a disparity in the exchange rate. We have also started seeing inflation through our indices.

“Every country needs to diversify its revenue base. Revenue base is production base and that is why agriculture is very important again.

“In the case of Nigeria, we have history. We used to be the highest producer of palm oil, likewise rubber, cocoa, all and we have to get back to such glory even if it is not the same produce, perhaps different ones.

“As it stands, we are the largest producer of cassava in the world and this is an opportunity to do more of that. We have to move away from being a net food importer to a net food exporter.

“One of the challenges facing agriculture sector today is lack of effective agriculture finance. In Nigeria, the banking sector has made some progress. Over the last few years from 2014 to 2015 there has been 36% growth in loan to the real sector, agriculture did not get up to 4% of the total lending in Nigeria.

“In addition to finance, farmers also face infrastructure impediment, roads, power, transport and storage. Those are things that are important to farmers and which remain a challenge.

“What has to happen to elevate agriculture to a top level generating sector is what we are seeing, that is the government is saying that agriculture is the key pillar for our economic development and it is being reflected in the budget. If you look at the capital investment required to further enable agriculture whether it is in infrastructure, transport, roads, those are the things we expect to see more investment within the course of this year and going forward. Across Africa the same thing is being done” he said.

He called on Nigerians to usurp the competitive advantage we have in cassava production to ensure the country become a force in cassava farming and processing.

About Union Bank of Nigeria Plc
Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank of Nigeria Plc is one of Nigeria’s long-standing and most respected financial institutions.

The Bank is a trusted and recognizable brand, with an extensive network of over 320 branches across Nigeria.

In 2012, a new Board of Directors and Executive Management team were appointed to Union Bank and in 2013 the Bank embarked upon a Transformation Programme designed to re-establish it firmly as a respected provider of quality financial services in Nigeria.

The Bank currently offers a variety of banking services to both individual, commercial and corporate clients including Current, Savings and Deposit Account services, Funds Transfer, Foreign Currency Domiciliation, Loans, Overdrafts, Equipment Leasing and Trade Finance.

The Bank also offers its customers convenient electronic banking channels and products including Online Banking, Mobile Banking, Bank Cards, ATMs and POS Systems.

Global Semiconductor Market Slumps in 2015

Business Journal

17/04/2016

Global semiconductor revenues fell by 2 percent in 2015. Sequential quarterly growth was weak throughout every quarter of 2015, especially in the first quarter when the market declined 8.9 percent over the previous quarter the deepest sequential quarterly decline since the semiconductor market collapsed in the fourth quarter of 2008 and first quarter of 2009.

Global revenue in 2015 totaled $347.3 billion, down from $354.3 billion in 2014, according to IHS.
The market drop follows solid growth of 8.3 percent in 2014 and 6.4 percent in 2013.

“Weak results last year signal the beginning of what is expected to be a three-year period of declining to stagnant growth for semiconductor revenues,” said Dale Ford, Vice President and Chief Analyst at IHS Technology.

“Anemic end-market demand in the major segments of wireless communications, data processing and consumer electronics will hobble semiconductor growth during this time.”

Overall semiconductor revenue growth will limp along at roughly 2.1 percent growth compound annual growth rate (CAGR) between 2015 and 2020, according to the latest information from the IHS Semiconductors Service.

Current technology, economic, market and product trends suggest that sometime between 2020 and 2022 new products will come to market that will enable a significant level of growth in semiconductor revenues.

Reshaping the Leader Board
“Of course the big story for the semiconductor industry was the record level of merger-and-acquisition activity last year,” Ford said. “Top players pursued bold, strategic maneuvers to enhance their market position and improve overall revenue growth and profitability.”

Intel retained its number one ranking in 2015, after completing its acquisition of Altera, which allowed the company to offset declining processor revenues and achieve 2.9 percent overall growth in 2015. Qualcomm slipped to number four in the rankings as its revenues fell by 14.5 percent, because the company’s 2015 acquisition of CSR was not enough to counter declining revenues in the wireless markets. The final major deal among the top 10 in 2015 was NXP’s acquisition of Freescale, which boosted it from number 15 in the 2014 rankings to number seven in 2015.

Among the top 20, Infineon’s acquisition of International Rectifier enabled it to jump to number 12 in 2015. Announced deals that are expected to close in the first half of 2016 will continue to reshape the leader board. Avago Technologies continues its aggressive acquisition activity with its purchase of Broadcom. Broadcom is already ranked at number nine in 2015. The combined revenues of the two companies would place them at number five overall. ON Semiconductor’s acquisition of Fairchild Semiconductor should boost it up two notches in the rankings.

Among the top 25 semiconductor suppliers, 14 companies achieved growth in 2015. This stands in sharp contrast to the overall semiconductor market where less than 42 percent of 285 companies tracked by IHS were able to achieve positive revenue results in 2015.

A Reversal of Fortunes
Whereas 2014 was a year of broad-based strength and growth, the market downturn last year left few markets unscathed. Semiconductor revenues for data processing, wired communications and consumer electronics all declined.

Automotive electronics and industrial electronics grew less than 1 percent, while wireless communications — the strongest growth area — only grew 3 percent. Semiconductor revenues in all regions of the world declined, and all seven of the major semiconductor segments (i.e., memory integrated circuits (ICs), micro-components, logic ICs, analog ICs, discrete components, optical components and sensors) experienced revenue declines from 2014 to 2015. In fact, out of 128 semiconductor segments and sub-segments tracked by IHS, 89 declined. Combined, these 89 segments accounted for over 77 percent of semiconductor revenues in 2015.

In 2014, five of the six semiconductor end-market segments grew; only consumer electronics declined. All regions, except Japan, achieved revenue growth and 88 out of 128 semiconductor segments and sub segments accounted for over 83 percent of semiconductor market revenue growth.

In 2014, 195 of 307 companies tracked achieved positive growth. These companies accounted for 83 percent of total semiconductor market revenues. The number of companies achieving growth in 2015 fell to 119 out of 285 companies tracked. These 119 companies only accounted for 64 percent of total semiconductor market revenues.

The Few Bright Glimmers from 2015
Only ten semiconductor market sub-segments worth more than $1 billion in annual revenue grew more than 5 percent year over year in 2015.

Wireless communications logic application-specific integrated circuits (ASICs) and analog ASICs both grew 30 percent, while radio-frequency (RF) small signal transistors, wired communications logic ASICs and wireless communications application-specific standard products (ASSPs) grew between 10 percent and 20 percent.

FOR THE RECORD

Business Journal

17/04/2016

‘Promoting Sustainable Growth and Inclusive Development of Nigeria’s States’

Presentation on: UN’s Support for Equitable and Sustainable Growth in Nigeria: Emerging Results and Roadmap for the Future.

Ms Fatma Samoura

UN Resident Coordinator and UNDP Resident Representative

Mr. Chairman, let me begin by thanking you for inviting me to this important dialogue session on ‘Promoting Sustainable Growth and Inclusive Development of Nigeria’s States’.

Let me also congratulate you and all the members of the ‘Forum for Inclusive Nigerian Growth (FIND) for taking the initiative of promoting the generation and sharing of ideas on the diversification of Nigeria’s economy and government revenue sources “beyond oil”.

For me, it is nice to be back in this lovely city of Lagos, a city that has registered tremendous growth in the recent past, and together with Kinshasa, is now well poised to be classified as a mega city in the not-so-distant future.

This dialogue session is being held at a time when the whole nation is waiting, with bated breath, the conclusion of the budget making process and subsequent implementation of key development programmes.

The session is also being held at a time when the country is readying itself to host a major ‘Economic Summit’ and has begun, in earnest, to put in place structures, mechanisms and strategies for the mainstreaming of the Sustainable Development Goals (SDGs) into the national and sub-national policies, plans and implementation frameworks, such as the annual budgets.

Mr. Chairman, the coming weeks and months hold great promise for the people of this great nation, but only if action is taken now and importantly if we adopt a business unusual approach to doing the business of development.

Mr. Chairman, since independence in 1960, Nigeria’s overarching developmental goal has been to achieve rapid economic growth; improve material prosperity; and promote peace, harmony and social progress.

Will Islamic Finance Power Growth in Sub-Saharan Africa?

Business Journal

13/04/2016

As home to a quarter of the world’s Muslims, Africa represents a golden, and largely untapped, opportunity for the Islamic Finance sector.

With its burgeoning middle class, rising economic momentum, and a pipeline of large-scale infrastructure projects, the stage is set for the significant growth of Islamic finance and investment in key markets across the continent.

The financial sector in select Sub-Saharan African countries has been growing rapidly recently. New products have been introduced and financial institutions are playing an increasing role in financial intermediation, including cross-border financial flows.

Despite its banking presence in a number of countries, Islamic finance is still at a nascent stage of development in Sub-Saharan Africa.

Against this dynamic backdrop Ethico Live! are delighted to announce the launch of an exciting new initiative in collaboration with ABL Dunamis: The Sub-Saharan Africa Islamic Finance Convention which will be held at the Kampala Serena Hotel in Uganda on the 10th & 11th of May 2016.

The second day of the Sub-Saharan Africa Islamic Finance Convention sees a parallel session led by MISYS Financial Software, the theme of this session is, “Retail & Digital Channels & Risk Disruption” and will focus on bringing together Risk Managers in financial technology from across Africa and Internationally.

The Sub-Saharan Islamic Finance Convention 2016 will take place at the Kampala Serena Hotel in Uganda on the 10th and 11th of May 2016 and will feature some of the most prominent Islamic finance experts from across Africa, the Middle East and internationally.

March Headline Inflation Surges to 12.8%, 44-Month High

Business Journal

13/04/2016

The National Bureau of Statistics (NBS) released the Consumer Price Index (CPI) figures for March 2016 yesterday with the major Headline Index and Sub-indices trending higher.

March Headline Inflation – measured Year-on-Year (Y-o-Y) was estimated at 12.8%, 1.4% higher than 11.4% reported in February. Headline inflation has continued on a steady rise since December 2014 (8.0%) with the only moderation in October 2015.

The current inflation level is the highest recorded since August 2012 (11.7%). According to the NBS report, the acceleration in March CPI growth was driven by faster growth rates across all divisions save for the Restaurants and Hotels division which increased at a slower pace Y-o-Y for the second consecutive month.

In the same vein, the Food sub-Index (Farm Produce and Processed Foods) rose 12.7% Y-o-Y and the Core sub-Index (All items less farm produce) grew by 12.2% Y-o-Y relative to 11.0% growth in February.

Food Inflation at 3-Year High of 12.7% Y-o-Y, Increased by 2.3% M-o-M
The food sub-index grew at a faster pace for the 5th consecutive month as higher transportation costs, which can be broadly attributed to the recurring fuel scarcity, coupled with seasonal changes as well as the lingering foreign exchange challenges, pressured food prices higher in the month under review.

The FX pass-through is evident in the 15.1% Y-o-Y and 2.6% M-o-M growth in Imported Food index. The Food index rose 12.7% Y-o-Y which is the highest level since May 2012 (12.9%), 1.4% higher than 11.4% recorded in February and also grew 2.3% M-o-M.

The fastest increases were recorded in the Fish, Bread, Vegetables and Cereals groups for the 3rd consecutive month.

The current pressures facing food prices are expected to persist on account of 1) effect of the start of the planting season and 2) higher prices of imported food items driven by overhanging Forex challenges.

Core Inflation Rate up 1.2%settling at 12.2%
The Core index rose to a 3-year high of 12.2% Y-o-Y from 11.0% recorded in February but slowed to 1.9% M-o-M from 2.7% in February.

The rise in core inflation is also linked to the Forex issues which have driven importation costs of both food and non-food items northwards as well as the scarcity of petrol which persisted through the month and lower base impact of the adjustment of electricity tariffs done in February.

All key divisions under the core sub-index increased at a faster pace except the Restaurants and Hotels division which slowed for the 3rd consecutive month (from 9.0% Y-o-Y in January to 8.7% in March).

The fastest increases were recorded in the Imported Food and prices of Energy & Utilities – Housing, Water, Electricity, Gas and Other Fuel division – which rose 15.1% and 15.9% Y-o-Y; 2.6% and 2.2% M-o-M respectively.

The Inflation expectation of Core Index is equally elevated given lower base impact of higher electricity tariffs implemented in February and subsisting supply constraints in the FX markets.

Implications and Expectations
Although the recorded higher headline and sub-indices inflation level for March is in line with our expectation for the month, but broadly lagged analysts’ forecasts. We reiterate that the current inflation trend remains primarily driven by cost–push factors.

However, the surprising twist in monetary policy objectives to inflation-targeting at the last MPC meeting and aggressive OMO mop-ups raise further questions on the potency of the tools currently being deployed in taming inflationary pressures.

Moreso that the only potential benefit of the current tightening of policy – increase in portfolio capital inflows – is being undermined by subsisting capital controls in the FX market and weak fundamentals of companies due to low productivity and energy shortages.

These have combined to weaken overall sentiment of investors in the capital market. The Minister of Finance and the Central Bank Governor have repeatedly mentioned plans to reform the FX market and we do not expect any major reaction by the CBN to the data until such plans are communicated. Regardless, we think investors in the fixed income market will continue to price-in tighter monetary policy expectations (especially via OMO instrument) into valuation.

Will Africa be Digitally Relevant in Next 10 Years?

Business Journal

13/04/2016

By 2025, jobs which were common place in 2015 will no longer exist. Students graduating in 2016, will have obsolete qualifications for which there will no longer be a profession by 2025.

Front-line military personnel will be replaced with robots
Private bankers and wealth managers will be replaced with algorithms
Telemarketers, data entry capturers, tax preparers, lawyers, accountants, actuaries, statisticians and consulting engineers will be replaced with Artificial Intelligence (AI).

New business models, like those of Uber and Alibaba, are already industry-shaping disruptors, and each day, new Digital innovators are emerging to cause disintermediation and disruption across every industry imaginable.

Traditional enterprises, whilst presently successful by today’s standards, are scrambling to make sense of Business Digitisation in order to stay relevant in the Digital future. Many are attempting to create new Digital business models which will eventually cannibalise their traditional business, rather than capitulating to new disruptive Digital start-ups. Companies are also digitising their products and services, along with operational processes and customer channels.

Over 70% of top fortune 500 companies have plans to offer their products as a Digital service by 2020. Presently, the 10 most valuable start-ups globally are estimated to have a value of $172.7 billion – all embracing Digital platform based business models. Around 90% of the business models in 2020 will be driven by the cloud.

Globally, the number of connected devices will nearly quadruple by 2025, significantly altering the skills employers hold most valuable. Increasing connectivity will change how employees choose to work (for example: remotely, part-time, independently, or dispersed), and provide employers with a spectrum of hiring options.

Millennials, most of whom are Digital Natives, will comprise an estimated 48.3% of the global labour force in 2025, while those aged 60 and older will comprise 9.9% (compared with 7.9% in 2015).

The line between what has traditionally been business and IT is becoming more and more blurred. Largely due to the early adoption and impact of Digital marketing, The Chief Marketing Officer or CMO, now controls a bigger “IT” budget and influence than the CIO. This is only set to increase and expand across the organisation, as Digital Natives become future business leaders.

What new skills and expertise will be required to lead and manage the Digital enterprise of the future?

As robots, AI and Digital algorithms continue to replace many jobs and professions; new and emerging professions by 2025 will focus more on human interaction, augmented through Digital mechanisms. Jobs requiring uniquely human characteristics, such as cultural deftness, caretaking, or empathy, and creative thinking, are those least threatened by automation.

The ability to work anywhere, anytime is fuelling the Digital nomad trend, which is highly appealing to millennials, but will also blur political and economic boundaries, and test national labour codes.

Artificial Intelligence, its subfields, and automation will create some specific reflecting trends associated with new and emerging technology advances. Career gains from AI and automation include:

· Artificial Intelligence technology and automation salesperson
· Specialist programmers
· Cybersecurity experts
· Engineering psychologists
· Robot and automation technology manufacturer, distributor, servicer, and refurbisher
· Technology-specific trainer
· Neuro-implant technicians
· Virtual health care specialist
· Virtual reality experience designer

Conclusion:
Digital transformation cannot be ignored without becoming irrelevant, and an adaptive Digital strategy is imperative.

The Digital workforce will be largely millennial, and significantly different from today in terms of culture, leadership style and skills. Artificial Intelligence, robots and Digital algorithms will automate many professions, but jobs requiring uniquely human characteristics – or are critical to the development of Digital solutions – will be in great demand by 2025.

A holistic Digital transformation strategy, which considers the Digital workforce along with the business model, process and customer channel dimensions, will be imperative for organisations wishing to remain relevant in the next 10 years.

Global Smartphone Growth Slowing in 2016

Business Journal

13/04/2016

Gartner said global smartphone sales will for the first time exhibit single digit growth in 2016. Global smartphone sales are estimated to reach 1.5 billion units in 2016, a 7 per cent growth from 2015. The total mobile phone market is forecast to reach 1.9 billion units in 2016.

Worldwide combined shipments for devices (PCs, tablets, ultramobiles and mobile phones) are expected to reach 2.4 billion units in 2016, a 0.6 per cent increase from 2015. End-user spending in constant US dollars is estimated to decline by 1.6 per cent year on year.

“The double-digit growth era for the global smartphone market has come to an end,” said Ranjit Atwal, Research Director at Gartner.

“Historically, worsening economic conditions had negligible impact on smartphone sales and spend, but this is no longer the case. China and North America smartphone sales are on pace to be flat in 2016, exhibiting a 0.7 per cent and 0.4 per cent growth respectively.”

Emerging Markets Continue to Grow, but at a Slower Rate
While smartphone sales will continue to grow in emerging markets, the growth will slow down. Gartner predicts that, through 2019, 150 million users will delay upgrades to smartphones in emerging Asia/Pacific, until the functionality and price combination of a low-cost smartphone becomes more desirable.

“Prices did not decline enough to drive upgrades from low-end feature phones to low-end smartphones,” said Annette Zimmermann, Research Director at Gartner. “Vendors were not able to reduce the price of a ‘good enough to use’ smartphone lower than $50.”

Countries such as India will help generate new mobile phone user growth. Sales of smartphones in India are on pace to reach 29 per cent in 2016 and will continue to exhibit double-digit growth in the next two years.

Mature Markets to Increase Mobile Phone Lifetimes
In the mature markets of North America, Western Europe, Japan and mature Asia/Pacific, Gartner analysts expect to see an extension of phone lifetimes among users.

“As carriers’ deals become more complex, users are likely to hold onto phones, especially as the technology updates become incremental rather than exponential,” said Ms Zimmermann.

“In addition, the volumes of users upgrading from basic phones to premium phones will slow, with more basic phones being replaced with the same type of phone.”

PC Shipments to Bottom Out in 2016
The global PC shipment market is expected to total 284 million units in 2016, a decline of 1.5 per cent year on year. Traditional PCs are on pace to decline 6.7 per cent in 2016. “In 2016, the PC market will reach its last year of decline before returning to growth in 2017,” said Atwal.

“The biggest challenge, and potential benefit for the PC market, is the integration of Windows 10 with Intel’s Skylake architecture. It has the potential for new form factors with more attractive features.”

In addition, the frustration with the capabilities in tablets will drive some consumers and businesses to review new form factors.

“However, to draw their interest the PC manufacturers need to ensure that they meet demand with the right products at the right price,” added Atwal.

Demand for ultramobiles (basic and utility tablets) will continue to weaken, with a decline of 3.4 per cent in 2016. Users are not only extending lifetimes, but also some will fail to replace these devices at all through 2016.

Insurance Fraud Management Forum Set for Berlin May, 12

Business Journal

13/04/2016

An insurance fraud management forum is set for Berlin, Germany from May 12, 2O16.

Benefits of Attending
The gathering will bring senior professionals together in one place mainly to debate the increasing prevalence and complexity of insurance fraud;

It will prepare those fighting against fraud for the challenges of the digital age.

You will meet industry leaders from Zurich Insurance, AXA, GENERALI, RSA Group, Baloise, Achmea, Warta, Dekra, Swiss Re, e.t.c. and learn the most progressive strategies to detect, investigate and prevent insurance fraud for maximum competitive advantage.

You will have the opportunity to build valuable business relationships at our interactive sessions.

you can share your experiences and ideas with our high level attendees through networking.

Don’t get left behind. Register here today to take advantage of this opportunity.

Topics
Insurance fraud today & tomorrow: Evolving trends and the challenge to manage them
Who are the fraudsters? Advanced profiling techniques for fraud mitigation
Ensuring compliance to developing regulatory requirements whilst successfully mitigating fraud
Effectively countering insurance fraud at the cross-border level
Excellence in fraud mitigation through raising public awareness of the consequences of insurance fraud
Bringing fraud investigation to the next level by leveraging the most advanced technologies
Promoting an anti-fraud culture at all levels of the organisation for improved fraud prevention
Operational excellence for successful mitigating Internet fraud

Nokia Plans More Job Cuts over Alcatel Acquisition

Business Journal

13/04/2016

Nokia has announced sweeping job losses as the consequence of its acquisition of Alcatel Lucent.

The scale of the job cuts has not been confirmed yet though.

The company aims to cut EUR 900 million from its costs, to be achieved in full year 2018. At the same time, Nokia is taking steps to adapt to market conditions and to shift resources to future-oriented technologies such as 5G. As part of the program, the company also continues to target worldwide savings in real estate, services, procurement, supply chain and manufacturing.

The headcount reductions are expected to take place between now and the end of 2018. Reductions will come largely in areas where there are overlaps, such as research and development, regional and sales organizations as well as corporate functions.

Nokia outlined these areas on October 29, 2015, when updating its synergy target.

“These actions are designed to ensure that Nokia remains a strong industry leader,” said Nokia President and CEO Rajeev Suri.

“When we announced the acquisition of Alcatel-Lucent we made a commitment to deliver EUR 900 million in synergies – and that commitment has not changed. We also know that our actions will have real human consequences and, given this, we will proceed in a way that that is consistent with our company values and provide transition and other support to the impacted employees.”

Global Airlines Financial Monitor [March 2O16]

Business Journal

13/04/2016

Key Points:
· Global airline share prices continued their recovery in March from January’s decline;

· The latest airline financial results from Q4 2015 further cemented the picture of a strong end to 2015, driven by carriers in North America. Financial performance improved in all regions relative to Q4 2014 except Latin America;

· Crude oil prices gained in March, although the market currently expects them to stay below $50/bbl until late-2019;

· Further falls in air fares are likely to be seen in 2016 as fuel hedging contracts unwind and the decline in oil prices seen towards the end of last year feeds through. Exchange rate-adjusted fares fell by 6.2% year-on-year in January;

· While the leap year may have flattered things, the global air passenger market is enjoying a strong start to 2016. Passenger loads have slipped in recent months, though, which will require monitoring;

· Air freight volumes in the first two months of 2016 fell by 1.5% year-on-year, although the comparison is complicated by the one-off boost last year from disruption at US west coast seaports. The freight load factor in January and February combined was well below average for the time of year, keeping cargo yields under pressure.

QG Africa Acquires InterContinental Hotel in Lusaka

Business Journal

13/04/2016

QG Africa Hotel LP, a Mauritius-based fund managed by QG Investments Africa Management Limited, a company of the Quantum Global Group, has acquired 100% interest in the InterContinental Hotel Lusaka from Kingdom Hotel Investments for a gross consideration of $35.9 million. The transaction closed on 31 March 2016.

Considered a city landmark, the InterContinental Hotel Lusaka is situated at a prime location in Zambia’s capital. The 244-room hotel benefits from a strong image amongst international travellers, and offers significant repositioning and expansion potential.

Commenting on the acquisition, Jean-Claude Bastos de Morais, Founder of Quantum Global said “I’m very pleased with this first acquisition of QG Africa Hotel LP. It underlines our commitment and investment strategy for the hotel sector in Sub-Saharan Africa. The InterContinental Lusaka is strongly established locally and will benefit from the planned refurbishment that will expand and reposition the asset, thereby generating value added returns for our investors.”

Strong economic growth supported by a more transparent and relatively stable political climate has been attracting an increasing number of international business travellers to Africa, while also boosting cross-regional business traveling. These trends are driving up steady demand for increased and better business hotel accommodation across sub-Saharan Africa. QG Africa Hotel LP is a USD 500 million investment vehicle, which aims to capitalize on the emerging opportunities in the hospitality sector. As a long-term direct equity investor in hotel projects across sub-Saharan Africa, the investment structure targets real estate and real estate-related investments in midscale to upscale business hotels.

These are built to high quality international standards, with modern construction and design, and aim to respond to the growing need for hotel accommodation in sub-Saharan Africa.

The investment structure seeks investment opportunities in established growth markets, with a particular emphasis on prime locations within the continent’s major cities and airports.

Africa, Middle East Hardware Market Flat in 2O15

Business Journal

13/04/2016

A new research report released yesterday by International Data Corporation (IDC) shows that the Middle East and Africa (MEA) enterprise hardware market (comprising servers and external storage) remained flat in 2015 when compared to the annual revenues seen in the previous year.

Referencing its latest Quarterly Server and Disk Storage Systems Tracker, the research firm announced that enterprise hardware revenue in MEA totaled $2.31 billion in 2015, describing the year as transitionary in nature with organisations gradually moving towards convergence and datacenter optimisation.

“The region’s enterprise hardware landscape has transformed significantly in recent times, with organisation’s across MEA now increasingly focusing on converged systems and cloud solutions,” says Swapna Subramani, Research Manager for enterprise infrastructure at IDC Middle East, Africa, and Turkey.

“Given the challenging economic and political conditions now characterising much of the region, convergence and optimisation are becoming key.”

In line with this trend, the region is seeing increasing adoption of new technologies like converged systems, while procurement of infrastructure for cloud environments is also on the rise. The converged systems market, which includes hyper-converged appliances, grew by 6% year on year in 2015, and IDC expects this growth rate to reach 12% in 2016.

“New datacenter investments will leverage converged/hyper-converged infrastructures to support both public and private cloud deployments,” says Subramani.

The MEA external storage market declined 3% year on year in 2015. ”The region’s storage dynamics are swiftly moving in two different directions,” says Subramani.

“First is the movement into low-cost, scalable storage, while second is the growth of internal storage, which includes the value of storage enclosed within application servers containing three or more mass storage devices.”

IDC expects the high-end storage market to witness considerable uptake in the region during 2016, primarily bolstered by projects within the government, telecommunications, and oil & gas sectors. “The availability of alternative modes of storage such as flash, internal storage, converged systems, and cloud storage are the key driving factors for the ongoing shift we are seeing within the MEA storage market,” says Subramani.

Year on year, the MEA x86 server market witnessed 2% growth in value but a 4% decline in volume in 2015. “IDC witnessed an increased focus on high-end servers in 2015 as a result of investments increasingly being directed towards datacenter and cloud infrastructure projects,” says Victoria Mendes, Senior Research Analyst for enterprise infrastructure at IDC Middle East, Africa, and Turkey.

“This trend has resulted in an increase in the market’s value despite the decline in server shipments.”

The UAE enterprise hardware market grew 3% in value year on year in 2015. “The UAE was not hugely affected by the oil crisis in 2015 with a number of projects underway in the telecommunications, government, and banking sectors,” says Mendes.

“However, in line with the prevailing economic sentiment of the wider region, 2016 is expected to see a minor decline in the enterprise space as a number of key projects are postponed and budgets are cut.”

Saudi Arabia is expected to be heavily impacted by the oil crisis and the ongoing conflict in Yemen. The Kingdom’s enterprise hardware market suffered a 12% decline in value year on year in 2015 and IDC forecasts a further 17% decline for 2016.

However, the longer-term picture is far less gloomy, with IDC expecting the Saudi enterprise hardware market to stabilise and exhibit a five-year compound annual growth rate (CAGR) of 5% through to 2020.

The Africa enterprise hardware market suffered a 5% year-on-year downturn in value in 2015. The continent was rattled by currency depreciation in key markets like South Africa and Nigeria, along with political instability in several pockets of Africa.

Stability is expected to return this year, however, with IDC forecasting year-on-year growth of 3% for the continent as a whole. Egypt was the sole bright spot in 2015, showing good signs of recovery with year-on-year growth in enterprise hardware spending of 25%.

The release of pent-up demand from the political turmoil of the 2013–2014 period was the key factor driving the strong performance of the Egyptian market in 2015, and the market is expected to remain relatively flat in 2016 with cautious investments moving forward.

With 35.4% share, HP retained top spot in the overall MEA server market for 2015 despite suffering a 5% year-on-year decline in revenue. Dell moved up to second spot and was followed by IBM in the third place.

Boko Haram: Nigeria Lost $9bn Since 2011

Business Journal

11/04/2016

A study conducted by the Federal Government of Nigeria and various investors revealed that terrorist attacks Boko Haram has been carrying out in the 6 states in North-Eastern part of Nigeria since 2011 have cost the country $9 billion.

The study is yet to be released however its first figures were disclosed in a statement published on April 4 by the office of Nigeria’s vice-president, Yemi Osinbajo.

The study is the produce of the Nigeria Recovery and Peace Building Assessment, an intervention program in the six North-Eastern states involving World Bank, European Union and the United Nations. “At least $6 billion is needed for immediate and near-term stabilisation,” Osinbajo’s office said in its statement.

The on-field damage assessment which was carried out in each of the six States was based on education, water, housing, sanitation, public building, energy, environment, transport, economy and trade.

Boko Haram up till now killed more than 20,000 and caused close to 3 million Nigerians to leave their homes.
The jihadist insurgency has for goal the adoption of sharia and establishment of caliphate.

The sect which is led by Abubakar Shekau and was categorised as a terrorist organisation by the United Nations Security Council in May 2014, pledged allegiance in March 2015 to the Islamic State (IS).

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