Pix from left: Auwalu Babura, Executive Director, Finance & Administration; Sule Bichi, Non-Executive Director; Frances Ndidi Akpomuka, Company Secretary; Suleiman Barau, Chairman; Olusola Obabori, Group Managing Director/CEO and Victor Ukwat, Executive Director, Sales & Marketing all of Red Star Express PLC during the 27th Annual General Meeting of the company held in Lagos recently.

One of Nigeria’s foremost logistics solutions providers, Red Star Express Plc has again posted profit in its annual turnover. For the year ended in March 2020, the company recorded an impressive turnover of N10.5 billion in the year under review which is a five percent increase over the preceding year. This was announced at the 27th Annual General Meeting of the company held recently in Lagos.

The company revealed its financial statement for the year ended 31 March 2020 which shows an increase in the profit before tax from N743, 469 in 2019 to an impressive N750, 080 in 2020, and profit after tax increase from N466, 248 in 2019 to N 468,989 in 2020.

With the increase in turnover recorded, the Board of Directors have recommended the payment of the sum of N324 million Naira which represents a dividend of 35 kobo per ordinary share, as approved at the Annual General Meeting, which is now subject to deduction of withholding tax at 10% and dividend would become  payable  on  the 15^th of  October  2020  to  all  shareholders  whose  names  appear  on  the Company’s Register at the close of business on the 18^th of September, 2020.

At the Board of Directors’ meeting held on 21 January 2020, the Board passed a resolution to raise additional capital through right issue through creation of additional 336,855,291 ordinary shares of 50 kobo each issued at N4 per share. The share premium increased from N296.4 million to N1.43 billion for the year ended 31 March 2020.

The Company’s initial authorized share capital was N7 million comprising of 7 million ordinary shares of N1.00 each and subsequently increased at various stages. The shares were sub-divided into ordinary shares of 50 kobo each in 2006. In January 2020, the Company raised capital by the allotment of 336,855,291 shares. Presently, the Company’s total allotted shares stand at 926,352,051 ordinary shares of 50 kobo each.

In the period under review no new Directors were appointed and none resigned. The Board of Directors at present is made up of five (5) Non-Executive Directors (which includes the Chairman and an Independent Non-Executive Director) and three (3) Executive Directors.

The directors to retire by rotation at the forthcoming Annual General Meeting in conformity with the Articles of Association, and who, being eligible, have offered themselves for re-election at the meeting are:  Sule Umar Bichi and Suleiman Koguna.

The COVID-19 Pandemic was an unforgettable event that occurred after the reporting date and had an effect on the Consolidated and Separate financial statements of the Group and the Company as at 31 March 2020 and the profit for the year ended 31 March 2020 on that date.

According to the Chairman, Board of Directors, Mr. Suleiman Barau, “Red star Express recorded impressive figures as usual.  I am particularly delighted because the lockdown necessitated by the COVID-19 didn’t affect the financial year and its reports so much. We thank all stakeholders for their usual support and pray this will continue now and always. I am glad to inform you that the last financial year was successful as the company reported impressive figures across all our performance indicators.”

Red Star has consistently posted profits in its annual turnover in the last five years which is based on good leadership, right investments and proper accounting methods. The  Company  maintains  a  cordial  relationship  with  shareholders  and  all  shareholders  are treated  equally regardless  of  number  of  shares  or  social  position.  Financial and other mandatory information are promptly communicated   to   shareholders   through   appropriate   media, including quarterly   publication   of   the   Group performance in the newspapers and requisite filings with the regulatory bodies.

With 166 offices within Nigeria, Red Star Express remains the flagship, continuing pick-up and delivery of express documents and parcels, domestic and international, and its relationship with FEDEX as its sole licensee in Nigeria.

Red star Express subsidiaries remain Red Star Freight, Red Star Logistics, and Red Star Support Services.

In furtherance of efforts to stem the tide of nutrition deficiencies among all age groups in the country, Nigerians have been advised to consciously improve intake of protein in their diets.

Adetunji Lawrence, Professor of Agricultural Economics, College of Agriculture, Osun State University, who made this call in a recent article, noted that the significance of proteins is often understated, whereas they offer tremendous benefits to the body. He revealed that proteins are essential for growth, repairs and replacement of worn-out cells.

According to him “The Recommended Dietary Allowance (RDA) is 0.8 g/kg per body weight per day, which adequately meets the protein requirements of most individuals. Unfortunately, many Nigerians do not eat up to this amount, which accounts for the rising incidences of protein deficiency in many households.”

He explained that the human body needs to consume sufficient amounts of protein daily, noting that the protein consumption must be adequate in both the quantity and quality of its amino acids.

The University Don stated that “Proteins perform regulatory and catalytic functions in the body, as well as provide energy for biological metabolism. Proteins provide amino acids and bio-fuel for organs to function at optimal levels.”

On the types of proteins, he listed food sources such as meat, dairy, soybeans, cowpea, eggs, amongst others, but remarked that many of these foods are left out of meal due to availability and affordability. He said: “The Nigerian Protein Deficiency Report (2019) revealed that 51 per cent of Nigerian respondents do not have adequate protein-rich foods, due to high costs. The report also confirmed that the driving force for foods consumed is availability (91 per cent) and affordability (68 per cent).”

According to Professor Lawrence, “the most crucial determinant of protein consumption adequacy in terms of quantity and quality is the socio-economic class of the population. High-income earners, more than low-income earners, on average, consume a wider variety of protein foods comprising a good mix of animal and plant-based foods. Protein-rich foods are usually expensive and not all households have the purchasing power to acquire them.”

He revealed further that the recent coronavirus pandemic has also crippled many socio-economic pillars, causing malnutrition to soar across the country.

He posited that: “The COVID-19 pandemic has increased the poverty index. Protein deficiency is closely linked to poverty. The National Bureau of Statistics in its poverty and inequality report from September 2018 to October 2019 stated that 40 per cent of Nigerians live below the poverty line. Coupled with the losses or reduced household incomes occasioned by the recent COVID-19 pandemic, this suggests that the essential and more costly protein-based foods will get further beyond the reach of Nigerians.”

Professor Lawrence advised Nigerians to increase the protein intake in their diets, to improve the Digestible Indispensable Amino Acid Score (DIAAS) metric, which is a scale used to determine the quality of the amino acids in food sources.

“Women, children and adolescents need indispensable amino acids in their diet for growth, development and formation of new tissue. Individuals need to turn to complete protein sources that have all the amino acids. A good example of an affordable, available complete protein source, is soybeans.“Soybeans has all the essential amino acids, and it is rich in other micronutrients like potassium, selenium and magnesium,” he added.

Sola David-Borha

Chief Executive, Africa Regions

Standard Bank

 At a time when the rest of the world is re-thinking its approach to commercial agriculture, Africa has a clear opportunity to refresh its approach to the sector and become an emerging force. Big shifts are already happening in food production, land and water use, and the integration of agri-tech and product tracing.

If African firms take an early lead during this transition, they will be well placed to compete globally by building enduring assets and commercial advantages beyond primary production.

The financing of new investments in agriculture has always relied on a healthy financial eco-system: active banks, sound insurers and lively futures markets. The next set of gains will come from new platforms that allow small and large firms to connect to each other and to their shared stakeholders. Reciprocal exchange of market data will make smaller, efficient players more visible to large buyers.

“Without continued advances in agricultural productivity, the whole project of African advancement is at risk,” according to Linda Manda, Sector Head Agribusiness, Corporate and Investment Banking at Standard Bank.”

The stakes are high for all of us”, says Ms Manda,“ because communities in Africa rely on the agriculture industry for much more than food: employment, investment and infrastructure development are all part of the deal.”  Over half (52%) of all people in Sub-Saharan Africa are employed in agriculture (2019).

Three Recent Developments: Higher Value Incentives

Three recent development milestones suggest that African firms are ready to move beyond low-margin primary production while remaining active in agriculture.

According to Sola David-Borha, Chief Executive of Africa regions at Standard Bank, “‘higher-value economic activity is even more likely if finance, technology and trade move deeper into African agriculture. Larger and more open markets, strong supplier networks and technology investments will drive Africa’s growth.”

Trade data, and Standard Bank’s own long experience of trade finance, shows that Africa has been a net importer of food for almost two decades although the trade deficit has narrowed recently. Despite impressive export growth of certain key products, other food imports continue to rise. The covid-induced disruption to imports is a reminder that regional resilience in food supply is a practical imperative, not an intangible aspiration.

A Larger, More Open, Internal Market in SSA

First, the African Continental Free Trade Area (AfCFTA) should create a much larger internal market that gives producers access to a larger and more open market. Local production can better compete with the current import-and-distribute model.

Large-scale production will arise when the returns are not stifled by trade friction. As an African bank, Standard Bank’s role is to put our strong balance sheet to work, lending to the new crop of agri-entrepreneurs.

Multinationals are already active cross-border distributors, but we expect new African producers to be attracted to the intra-African produce-to-trade and value addition opportunity. Africa also needs to be ready for the next disruption in trade. Some global imports will always be required but it would be wise to ensure that key inputs can also be sourced regionally.

Fading Distinctions Between Suppliers

Second, the contrived distinction between the produce of small-holder farmers and very large commercial producers is beginning to fade. The new financial platforms being offered by Standard Bank will confirm the extent which large and small farming operations can complement one another. Out-grower programmes offered by large global firms allow smallholders to establish themselves as suppliers to the biggest and most profitable value chains. Tobacco, sugar and sorghum are all good case studies.

Our banking platform is a place where buyers can meet producers, surrounded by market data on inputs, crop prices, volumes, regulations, trade advice and currency movements.

From the top of a tall grain silo, the neat polygons of mono-crop plantations appear to be the only advanced outposts of progress. By contrast, small-holder farmland can seem rough and rudimentary remnants of a pre-industrial age. Our own experience is quite different. Smallholder farmers that have access to the right platforms and better yields are also able to compete on quality and cost. Local knowledge of weather, grains, indigenous varieties, insects, and soil has accumulated over many years in Africa and is becoming a treasure of indigenous competence and resourcefulness. The huge expansion of biological patents attests to the large commercial value of small, local insights.

 Adoption of Technology and Optimisation Logistics

The third recent milestone is the broad acceptance across Africa that advances in technology are not peripheral to growth. Grudging acceptance has given way to enthusiastic adoption. Healthy livestock, fertile plantations, productive greenhouses and efficient cold chains all require technology partnerships to keep them productive and profitable.

Two decades of smartphone penetration in rural communities has probably eased the transition from guesswork and speculation to data-driven decisions and GPS mapping.

To make the most of this milestone, every hectare of land, every seedling and every bag of fertiliser must be used optimally. On-farm losses and unreliable methods are simply unaffordable during health pandemics and economic recessions.

Private investment in telecoms, machinery and pipelines will eventually work alongside publicly funded infrastructure: roads, rail and bulk water supplies. Policy reforms need to support more public-private partnerships that have shown they can build and maintain high-quality infrastructure assets.

Consumer demand for less waste and more conservation will support investments in new systems that supply micro-nutrients to digitally-mapped crops and livestock.

Food-insecure communities in Africa can cheer this development as much as time-starved households in wealthy countries: a regular surplus of well-priced food is the best guarantee of the social stability in which economic growth can best be cultivated.

By Elvis Eromosele

Migrants leave home to escape. Across the world, more and more people are willing to move. For many, migration is an escape from poverty and other political or religious persecution. But the goal is the same, to seek and find a place of rest; to be able to live free.

Warsan Shire in the poem Home- aptly captures the feeling of migrants when they leave home. “no one leaves home unless home is the mouth of a shark.” When migrants leave home, they are running from the mouth of a shark. They are seeking refuge.

Many times, even though they have left home, home doesn’t leave them. They think of home, they talk to those still behind and maintain the connection. Then they look for how to make life bearable for those left behind at home. They seek the earliest option to begin to send money home.

First- in bits for upkeep. Initially, they seek to address small everyday issues and gradually move to more pressing issues offset house rents, pay school fees, finance a small business and to build a house. As time goes, the list grows and the amount grows.

Remittance is Born

There are a million and one stories around and about remittance. Many good, some great and a few-bad.

In Africa, the reason people leave home is not usually far-fetched. The continent is perhaps easily the most misgoverned capital of the world. Thieving leadership breeds poor countries, zero infrastructure, lack of jobs and political persecution. It also breeds people eager to leave and try their fortune elsewhere.

Escape via migration becomes the only options open to many, especially those who can’t get or are unwilling to secure a foothold in the corruption laden governments. It becomes necessary to escape from the mouth of a shark.

No, Africa is not the migration capital of the world. There are 25 million African migrants across the world. This is a little less than 10 per cent of the total migrant figure of over 258 million.

The African Report indicates that the continent received over $82bn in personal remittances in 2019 alone. This figure is almost double the amount to foreign direct investment (FDI) flows of the same period $46bn.

Remittance has thus emerged as the largest source of incoming capital.

Take Nigeria. The country received an estimated $24bn in personal remittances in 2019 compared to about $3bn in FDI. Indeed, among, what is termed, the major African economies, only South Africa received more FDI than personal remittance.

There are reports that remittance in 2020 will not reach the 2019 level. The reason is obvious to the discerning – the coronavirus pandemic. Right now, many of the top remittance-sending countries including Germany, United Kingdom, Saudi Arabia, France and the US are struggling under the impact of the coronavirus and attendant prevention protocol especially the lockdown and movement restriction. These economies are currently seeking to restart.

The World Bank, in its recent report, “COVID-19 Crisis Through a Migration Lens,” predicts that remittance flows will decline by 20 per cent globally as the coronavirus pandemic and associated control protocols have rendered millions of people unemployed across the world.

The truth be told, when migrants seek greener pastures abroad, it is not just for themselves. It is also for family members, especially those left behind. And many times, the funds needed to leave are sourced through these family connections.

So; as soon as they find their feet, they begin to earn. Comfort is hardly the first thing that comes to mind. It is sending money home. It is paying back for the support.

Another essential driver of remittance is that the flow of money is not connected to bank accounts. The Western Unions and MoneyGram’s of this world make it possible to receive money without owning a bank account. This is important because many beneficiaries of remittance do not have bank accounts.

Studies indicate that there is a positive correlation between remittance on one hand and GDP, gross capital formation, domestic saving and household final consumption expenditure in the other.

The use of remittance income in Mexico (2007) Jim Airola notes that “…remittance-receiving households spend a greater share of total income on durable goods, healthcare, and housing.”

Flory Anette Dieck-Assad, Ernesti F. Peralta et al. explained in The Importance of Remittances Income in Mexico (1995 to 2017) that “there is a causal relationship between remittances and the service sector GDP, but not for industrial GDP.”

Undoubtedly, remittances are today a major financial resource. While it may be debatable just how much remittance contributes to a country’s economic growth there is no argument that it does – in a big way.

Sadly, in Nigeria, there are plenty of reports of how remittance is mismanaged, misappropriated and misused.It is clear that for citizens to be able to build assets with remittances there has to be greater money management and formal financial tools training.

Maybe it is time for Nigeria to take deliberate steps to on one hand seek to maintain an increasing trend of remittance in the coming years and on the other work to grow it. This may prove an indispensable key for the nation’s socio-economic development.

Some questions need answers. What sort of policies can enable a country to increase its remittance inflow? In what way can recipients be educated on improving the use of remitted monies? How much of an influence can sender have on the ultimate usage of the funds? Why are migrants so successful?

We can only attempt to answer the latter question here. There are so many reasons why migrants are successful, but two stand out.

Migrants understand the power of education. They literally jump on it. Through access to education, they can prepare to take advantage of the culture and opportunities of the new country. Nigerians in America have been identified as perhaps the most read groups with many possessing multiple degrees.

Migrants are relentless in the pursuit of education. They sacrifice; they invest and very literally give themselves to it.

Secondly, they are prepared to work, sometimes twice as hard as everyone else. They are equally willing in the short term to take on all sorts of odd jobs while pursuing their goals. They are usually anxious to quickly find their feet and be able to send something home.

The unintended consequence of remittance is more migration. Others want to follow suit. The rise in remittance over the years is therefore unsurprisingly tied to the increase in the number of people seeking the proverbial Golden Fleece.

Besides, experts point to the growth of digital and mobile penetration across the continent as a huge contributing factor to the growth in remittances.

The truth is that today, remittance may well be the magic bullet that is sustaining the poor across the continent. The impact of remittance of the poverty index can be appreciated but maybe not quite totally calculated or calculatable.

There is one noticeable drawback in the remittance tale – this is the remittance gap among African countries. It is difficult to send money across Africa, from one African country to another. The culprits include a lack of African owned and dedicated platforms, currency exchange challenges and governments. Homegrown, Africa remittance solutions are needed, urgently.

Remittance provides a means of escape from poverty for those left behind. It fills the gap. It provides relief. Access to remittance in many instances is the start of asset building for many.

In the foreseeable future, migration will continue to grow. It will continue to drive remittance. The quest for a better life and to help others will continue to spur migration. It is a closed-loop.

Elvis Eromosele, a Corporate Communication professional and public affairs analyst lives in Lagos.