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Nigerian Fertilizer Firms to Benefit from $2.2m Financing

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The Africa Fertilizer Financing Mechanism (AFFM) has kick-started a $2.2 million project to provide fertilizer suppliers in Nigeria with financial support to improve supply for 200,000 smallholder farmers.
The trade credit guarantee project is AFFM’s first in the West African nation and will involve 10 fertilizer suppliers, 12 hub agro-dealers and 120 retail agro-dealers. The project will also train farmers in proper fertilizer use and other agricultural best practices.
A project launch held on 3 March in the capital Abuja, was attended by senior director of African Development Bank’s Nigeria Regional Office, Ebrima Faal and government and industry partners.
Participants discussed the project and its implementation with AFFM’s local partner, the Africa Fertilizer and Agribusiness Partnership, or AFAP.
“We will leverage on existing networks and look for creative solutions to increase the availability of fertilizer in the country,” said Nana-Aisha Mohammed, AFAP’s representative at the ceremony.
Umar Musa, Assistant Director of FMARD’s Farm Inputs Support Services Department who represented the Nigerian Federal Ministry of Agriculture and Rural Development (FMARD) said AFAP should work with the Nigerian government and other actors in the fertilizer value chain to ensure that the project complies with Nigeria’s policies and sector strategies.
“We expect this project to support smallholder farmers and improve their productivity in order to help the country increase its local production and consumption of fertilizer,” he said.
“We are confident that the project will increase access to quality and affordable fertilizer by smallholder farmers and hence contribute to the transformation of the agriculture sector in Nigeria,” said Marie Claire Kalihangabo, AFFM Coordinator.
Kalihangabo expressed her gratitude to the Government of Nigeria for their financial support to the Africa Fertilizer Financing Mechanism.
The Bank’s Nigeria Regional Officer, Faal, said the National Fertilizer Quality Control Act 2019 further serves to reinforce the government’s commitment to the sector.
“This program is timely because the government has placed measures to encourage local production of fertilizer,” he said.

Danbatta Spotlights Centrality of Consumers to Telecoms Industry

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As the World Consumer Rights Day (WCRD) was celebrated globally yesterday, the Executive Vice Chairman (EVC) and Chief Executive Officer of the Commission, Prof. Umar  Garba Danbatta, has described telecoms consumer as the central factor in the organising principles of the Commission’s regulatory activities.

Prof Danbatta, who spoke in Abuja, said through riding on its tripartite principle of fairness, firmness and forthrightness, the NCC will continue to advance the course of protecting telecoms consumers from unwholesome practices by the service providers.

According to him, the Commission celebrates the telecom consumer every day of the year, and it is a self-evident truth that consumer is the lifeblood of the sector, adding that the efforts will be sustained in line with the theme of this year’s WCRD: ‘The Sustainable Consumer.’

“In keeping with its commitment to the tradition of celebrating the telecom consumer, the NCC is reiterating its commitment to safeguarding the interest and ensuring the satisfaction of the consumer as the central factor of the telecom ecosystem,” he explained.

Speaking further, Prof Danbatta said that the NCC has strengthened initiatives to educate and inform consumer and the Commission declared 2017 as the Year of the Telecom Consumer.

“Some of those consumer-centric initiatives, programmes, directions, policies and regulations, include the Do-Not-Disturb (DND) 2442 Short Code, to which over 24 million subscriber have subscribed to in order to be able to control unsolicited text messages; the Toll-Free Number 622 as a second level mechanism for escalating consumer complaints not satisfactorily resolved by the service providers to the Commission for effective resolutions. Over a million complaints have been successfully resolved for the consumers through these channels,” he said.

In the same vein, Danbatta said, “We have also put in place regulations to combat e-waste in the country, working in collaboration with other agency to combat influx of fake and substandard phone sin the country, developed guidelines on disaster recovery to ensure consumers do not face the negative impact of network problem on service delivery for long.

Realising that telecom consumers increasingly rely on telecom platforms to carry out financial transactions, Danbatta said the NCC has inaugurated a 26-member multi-sectoral committee to develop modalities for protecting telecoms consumers from being vulnerable to e-frauds, while it has also taken measures to review its Consumer Complaints and Service Level Agreement (CC/SLA) by the operators.

According to Prof Danbatta, the Commission developed the 112 Emergency Communication Number, which can be dialed by a telecoms consumer in an emergency situation to get help from emergency response agencies through the Emergency Communications Centres built by the Commission.

Currently, 17 states and the Federal Capital Territory (FCT), Abuja, have ECCs while efforts are ongoing to build ECC in other remaining states of the federation.

The EVC explained that the Commission has issued directions to protect telecoms consumers from being shortchanged by the service provider. Prominent among these are the direction on forceful subscription to valued-added services (VAS) and direction on data-roll over.

 

AERC Sets Agenda for Tackling Nutrition, Food Challenges in Africa

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(L-R) Prof. Njuguna Ndung’u, Executive Director, African Economic Research Consortium; Alhaji Sani Nanono, Honourable Minister of Agriculture and Rural Development and  Mr. Isaac Okoroafor, Director, Corporate Communications, Central Bank of Nigeria at the opening session of the 22nd Senior Policy Seminar in Abuja.

Food and nutrition security dominated discussions at the just concluded Senior Policy Seminar hosted by the African Economic Research Consortium (AERC), in partnership with the Central Bank of Nigeria (CBN).

The two-day conference which held from March 9 to 10, 2020 and was supported by the Bill and Melinda Gates Foundation, had the theme: ‘Agriculture and Food Policies for Better Nutrition Outcomes in Africa’.

Prof. Njunguna Ndung’u, the Executive Director of AERC, in his opening address, emphasised that the seminar focused on Agriculture, Food Security and Nutrition Outcomes in Africa because agriculture is the main stay of most economies and contributes to wealth, economic activity, employment and nutrition welfare outcomes.  He added that most policies and initiatives in this area have tended to focus on, and to target, agricultural production metrics, and do not directly relate to nutrition outcome and targets or actual food consumption.

“Global Panel of Agriculture and Food Systems for Nutrition points out that there is a dearth of quality data to properly inform policies on nutrition. This has tended to limit the effectiveness of agricultural policies in improving nutrition outcomes.  In addition to data challenges, there has been lack of high-quality policy analyses that explore the effect of agricultural policies on nutrition.  We need now to combine forces to achieve the best nutrition outcomes,” he said.

Ndung’ualso reiterated that AERC will continually focus on quality research and strengthen policy influence.  The AERC, known for training policy makers across Africa, is dedicated to strengthening capacity building for conducting policy-oriented research, policy analyses and informed policy.  Currently, the organisation has select universities that run their programmes in Policy Making for students at both Masters Degree and PhD levels.  Some of these partnering institutions are University of Ibadan, University of Benin, University of Dare Salaam, University of Cape Town and University of Nairobi.

There were various paper presentations, discussions and floor discussions on relevant topics such as agricultural growth patterns, nutrition transitions, the triple burden of malnutrition in Africa, diet diversity and how to combat malnutrition through food policies.

Although it was agreed that Africa was not yet winning the war against acute hunger and malnutrition, the policy makers commended governments across Africa for realizing the importance of increasing shares of national budgets to agriculture, health and nutrition.

There was also a Policy Roundtable where it was resolved that increasing household income can help address malnutrition.  It was also said that science, technology and innovation were key in improving malnutrition.

The Senior Policy Seminar had in attendance senior policy makers and thought leaders from around the continent.  They included: Alhaji Sani Nanono, Honourable Minister of Agriculture and Rural Development; Otunba Adeniyi Adebayo, Honourable Minister of Industry, Trade and Investment; Mr. Isaac Okoroafor, Director, Corporate Communications, CBN; Hon. Issa-Toure Salahaddine, Deputy Speaker, National Assembly, Togo; Hon. Onyoti Adigo Nyikwac, Minister of Agriculture and Food Security, South Sudan and Hon. Marcos Alexandre Nhunga, Minister of Agriculture and Forestry, Liberia.

Others were Prof. Osita Ogbu, former Minister for Planning and National Development; Hon. Lucious Kanyumba, former Minister for Education, Malawi; Ms. Barbra Barungi, former Lead Economist, AfDB and Dr. Esi Colecraft from the University of Ghana.

Photo: Anchor Insurance Company of the Year Award

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Right is Mr. Ebose Augustine, Managing Director, Anchor Insurance Company Limited receiving the award for the company as the Insurance Company of the Year from Mr. Sonny Irabor (m) while the MC looks on with keen interest

Anchor Insurance Bags Insurance Company of the Year award

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Austin Ebose

Managing Director/CEO

Anchor Insurance Company Limited

Anchor Insurance Company Limited, a fast rising risk-bearing organisation, has emerged the Insurance Company of the Year at the annual Independent Newspapers Awards 2019 held in Lagos recently.

Mr. Steve Omanufeme, Managing Director/Editor-In-Chief of the newspaper who described Anchor Insurance Company as the “fastest growing insurance company of the year 2019, noted that “the selection committee specifically recognised the Company for its giant stride in the past one year, especially in its risk management and claims administration approach which have always been a source of delight for its teaming policyholders.”

He noted further that “we are also impressed by the company’s turnaround record of performance in the last one year. It is noteworthy to say that the company under the new Management team generated the highest premium income after 29 years of its existence, recording 72 per cent growth in one calendar year.”

According to him, “the new Management team’s ability to revitalize the Anchor Insurance brand and reposition the company for the statutorily induced recapitalisation has further proven the organization as one that is ready to shock the insurance sector of the nation’s economy.”

“It is for the foregoing reasons, among others, that we have bestowed on the company, the richly deserved award of the Insurance Company of the Year 2019,” Omanufeme noted.

Making his speech after receiving the award on behalf of the company, the Managing Director, Mr. Ebose Augustine, expressed his joy that his company was being celebrated after just a little above a year in office with his new team, stating that “we were just doing what we felt should be done to take the company to another level but we never knew people were taking records.”

He used the occasion to call on governments at the state and federal levels not to shy away from subscribing to the relevant insurance covers, pointing out that their patronage will go a long way in helping to grow the insurance business and its contribution to the national gross domestic product.

WEF Convenes Global Business for COVID Action Platform

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The dramatic spread of COVID-19 has disrupted lives, livelihoods, communities and businesses worldwide.

But the sum of many individual actions by stakeholders around the world will not add up to a sufficient response. Only co-ordinated action by business, combined with global, multi-stakeholder cooperation can mitigate the risk and impact of this unprecedented global health emergency.
In response to this emergency, the World Economic Forum, acting as partner to the World Health Organisation (WHO), has launched the COVID Action Platform. The platform is intended to catalyse private-sector support for the global public health response to COVID-19, and to do so at the scale and speed required to protect lives and livelihoods, aiming to find ways to help end the global emergency as soon as possible.
The COVID Action Platform will focus on three priorities:

  • Galvanise the global business community for collective action
  • Protect people’s livelihoods and facilitate business continuity
  • Mobilise cooperation and business support for the COVID-19 response

The COVID Action Platform is open to all global businesses and industry groups, as well as other stakeholders, including governments that wish to team up with the private sector on their response. The platform will operate a network where CEOs, organisational leaders and designated COVID-19 corporate responders can offer their help and team up on specific projects, launch actions and keep each other informed of best practices.

“COVID-19 is causing health emergencies and economic disruptions that no single stakeholder can address,” said Klaus Schwab, Founder and Executive Chairman of the World Economic Forum.

“Our best and only response to it should be to take concerted action. The COVID Action Platform is at the centre of our mission and we draw upon all our members and partners, communities and capabilities to make it a success.”
“The private sector has an essential role to play in combating this public health crisis through their expertise, innovation and resources,” said Tedros Adhanom Ghebreyesus, Director-General of WHO. “We call on companies and organisations around the world to make full use of this platform in support of the global public health response to COVID-19.”
The COVID Action Platform was conceived after a World Economic Forum conference call with over 200 corporate leaders from all over the world. It is supported by WHO and the Wellcome Trust and is the first initiative of its kind, operating globally. The Forum has established a special team to support the platform’s work.
Working with the Pandemic Supply Chain Network, one of the projects which will initially be launched on the Platform aims to strengthen supply chains to ensure that COVID-19 essential health commodities are available, accessible, affordable and of good quality.

Other actions will include supporting mechanisms for business donations to the public health response and the development of available and accessible vaccines, diagnostics, treatments and protective equipment, as well as tracking the economic impact of the virus, while pursuing collaboration to address disruptions.

Olam Grains Champions Girls to Achieve their Full Potential

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L-R: Mr. Anurag Shukla, Managing Director, Crown Flour Mills Limited with female staff during the commemoration of 2020 International Women’s Day at Crown Flour Mills headquarters in Lagos recently.

International Women’s Day is celebrated annually on March 8, and the theme for the 2020 edition is ‘Each For Equal.’

As a part of activities to mark this year’s International Women Day, Olam, a leading player in the Nigerian agricultural value chain, celebrated its female employees as well as female students of the Lagos State Progressive Junior Secondary School, Surulere, Lagos State.

Mr. Anurag Shukla, Managing Director, Crown Flour Mills Ltd, a subsidiary of Olam, described the female employees of the company as a very important part of the workforce whose contributions have been monumental. The company, whose products include ‘Supreme Lite Flour’, is an equal opportunities employer and Mr. Anurag Shukla expressed his excitement that a lot of women occupy senior leadership positions in the company. He further pledged that the organization would continue to promote gender equality, adding that Olam would continue to make the environment more conducive for female employees.

Addressing the students of the Lagos State Progressive Junior Secondary School, Surulere, Mrs. Bola Adeniji, Category Head, Marketing, Crown Flour Mill Limited, said that women are now emerging as leaders in various spheres of life, adding that traditional barriers for girls are being challenged and girls are now gaining access to greater opportunities.

Also speaking at the event, Mrs. Juliet Keshinro, a Girls Coach and educator took the audience through the journey of advocacy for equality of girls. Inspiring the girls to believe that they can ascend to whatever heights they desire to attain; she reiterated the need for them to have a resolve to overcome all limitations and challenges in their way.

Mrs. Keshinro further motivated the girls to stay focused in school.

 

 

African Energy Chamber Terminates Partnership with Africa Oil & Power

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The African Energy Chamber announces its termination of its partnership with Africa Oil & Power, which it has had since 2018. Under this partnership, the Chamber has supported Africa Oil & Power in the organisation of several highly-successful international events and investment conferences.

The termination of the partnership reflects a new strategy for the Chamber to focus on key issues pertaining to the industry and implement its own investment outreach strategies.
“We sincerely thank Africa Oil & Power for their hard work until now,” declared Nj Ayuk, Executive Chairman at the African Energy Chamber and author of ‘Billions At Play: The Future of African Energy and Doing Deals’.

“Under our partnership, we have been able to work on very important projects and strategic conferences in South Sudan, Angola, South Africa, Equatorial Guinea and the United Kingdom. We believe their journey is only the beginning and wish them the best for the future.”
The African Energy Chamber remains open and committed to supporting initiatives and efforts that are focused on pushing an agenda beneficial to all Africans.

From 2020 onwards, the Chamber will be allocating increasing resources to key issues that we believe are important to the oil industry such as creating an enabling environment for the energy industry to grow, attracting investment into Africa,  implementing lower  taxes and better fiscal regimes, supporting gas monetisation, promoting women in energy, developing local content, fighting energy poverty and  developing opportunities for the African diaspora to play a role in developing our natural resources at home.

About the African Energy Chamber:
The African Energy Chamber works with indigenous companies throughout the continent in optimizing their reach and networks. Our partnerships with international dignitaries, executives, and companies allow for relevant servicing to other international entities looking to operate within the continent.
The African Energy Chamber brings willing governments and credible businesses together to continuing growth of the African energy sector under international standard business practices.

Access Bank Unveils TraderLite Product for Micro SMEs

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In the bid to stimulate the growth of the economy, Nigeria’s leading retail bank, Access Bank Plc has launched TraderLite, an account that enables micro businesses, with turnover between N50, 000 – N1Million, operate their businesses with their individual name or registered business name.

Speaking at the launch of the new product, Victor Etuokwu, Executive Director, Retail Banking, Access Bank Plc, said the bank looks at its customers beyond being just customers but also as partners.

In his words: “The future of Nigeria’s economy is Small and Medium-Scale Enterprises because they can provide more than enough jobs to the unemployed if empowered. And that is why the bank’s passion is to offer more than financial services to its customers and also work with them in growing and expanding their businesses. Whichever category you fall into; we are here to work with you to take your business to a whole new level.”

TraderLite , a variant of the Diamond Business Advantage account within the Bank’s emerging businesses portfolio, is specially designed for micro businesses with the aim of providing financial inclusion for businesses in that segment while equipping them with the required skills to grow their businesses.

The product has two variants namely: DBA TraderLite Individual, which is for individuals with unregistered businesses and DBA TraderLite Business, for registered businesses.

The Diamond Business Advantage proposition from Access bank has been designed to add value to Micro, Small and Medium scale business owners so that they can grow their businesses with smart banking. The proposition provides SME’s market linkages, increased referral base and networks that enable them scale the hurdles of accessing new markets for their products.

Networking sessions such as Business Clubs, Business clinics, and Business seminars enable MSME customers expand their referral base through interacting with other MSMEs.

Access Bank is the leading retail bank in Nigeria with over 600 branches and more than 40 million customers. The Bank offers products and services tailored to suit the lifestyle of every Nigerian irrespective of age and demographic.

 

Unity Bank Introduces USSD in Nigerian Languages

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Unity Bank Plc has launched an Unstructured Supplementary Service Data (USSD) banking in Nigeria’s three major languages – Yoruba, Hausa and Igbo.

This makes Unity Bank the first Nigerian commercial bank to offer USSD in a local language.

USSD transactions have gained traction over the past five years among bank customers, compelling Nigerian financial institutions to make it a core component of their e-payment solutions.

According to the Nigeria Inter-Bank Settlement System, NIBBS USSD transactions grew by 35 per cent in 2018 to N261 million from 25 per cent in 2017.

The introduction of Nigerian languages is an added feature to the Unity Bank’s USSD Platform and by dialling the Short Code: *7799# on any mobile phones, Unity Bank’s customers will now have the option to continue their transactions in any of their preferred languages.

A statement by the Bank adds that “the upgrade in the features of the transaction platform is part of Unity Bank’s initiatives aimed at achieving an optimal level of interaction on the USSD banking channel. It is targeted at market segments at the lower level of the pyramid intended to drive greater financial inclusion in the country as well as deploy more solutions for fast, efficient and convenient banking, whilst targeting the under-banked.”

Commenting on the initiative, the Group Head, Retail, SME & E-Business, Unity Bank Plc, Olufunwa Olugbenga Akinmade said that the solution will boost the existing e-payment channels available to the bank’s customers to further drive customer experience.

He stated that it would also help to deepen mobile payment and contribute to Nigeria’s drive to meet the 80 per cent financial inclusion target this year.

“What we have done is to expand the channel of access to our offerings. Nigeria’s teledensity, according to the Nigeria Communications Commission, NCC, is at 91.1 per cent as of 2019. This means that a solution like this will resonate with millions of Nigerians who are more comfortable transacting in their local languages,” he said.

He added: “This solution has now added to the bouquet of mobile solutions the bank has introduced recently to cater for the youth, mass market and MSMEs as we move to promote retail and SME business by enhancing mobile payment solutions to meet the needs of our customers.”

About Unity Bank Plc 

We are one of Nigeria’s leading retail banks with over 200 business offices spread across the 36 states and Federal Capital Territory of Nigeria. 

The Bank offers wide-ranging financial services to individuals, businesses and the public sector of the nation’s economy. As a further commitment to the growth of the nation’s economy, Unity Bank focuses on SMEs and Agribusinesses. We are driven by the vision to be the retail bank of choice for all Nigerians and this is at the core of all that we do.

NCC EVC: ‘We’ve Deactivated All Improperly-registered SIM Cards’

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Prof. Umar Danbatta

Executive Vice-Chairman/CEO

NCC

“By our records, all improperly-registered Subscriber Identification Module (SIM) cards across Mobile Network Operators (MNOs) in Nigeria have been completely deactivated,” the Executive Vice Chairman (EVC) of the Nigerian Communications Commission (NCC), Prof. Umar Garba Danbatta, has said.

The Commission’s effort in this regard is in line with one of the key agenda of President Muhammadu Buhari to strengthen security of lives and property for all Nigerians.

The EVC said over the years, the NCC has tenaciously worked with determination and through various policy initiatives, to rid mobile networks of improperly or invalidly-registered SIM cards to ensure that all the current over 184 million registered SIM cards/mobile lines across MNOs’ networks have valid data that are traceable and not anonymous.”

Danbatta, who spoke at the weekend in Abuja, said “our efforts received a boost, following the implementation of a September 12, 2019 ministerial directive that the NCC should compel service providers to block all improperly-registered SIM cards, pending when their owners regularise their registration.”

As at the time the ministerial order was issued, the Commission, through its Compliance Monitoring and Enforcement team, had reduced the number of improperly-registered SIM cards on mobile networks in the country to 9.2 million.

As part of the Commission’s on-going regulatory interventions such as the setting up of the SIM Registration Industry Task Force, which led to several resolutions including the Industry Working Group (IWG) on harmonisation of SIM registration process with the National Identity Management Commission (NIMC) to ensure a clean SIM database, the Commission had, in June 2019, commenced the second round of comprehensive verification audit of MNOs’ SIM card registrations. This audit exercise was concluded in August 2019. The audit was specifically to ensure strict adherence by telecom operators to the provisions of the Telephone Subscribers Registration Regulations 2011.

Following the September 2019 ministerial directive, however, the NCC, within a week, intensified efforts by reducing the number of improperly-registered SIM cards from 9.2 million to 2.2 million.

“We have since initiated the second phase of SIM deactivation based on the Ministerial directive and as at today, we have completely deactivated the remaining 2.2 million lines on the networks. This is contrary to reports by a section of the media, suggesting that nothing has been done with respect to the issue of improperly-registered SIM cards,” he said.

The EVC assured all stakeholders that the Commission will continue to aggressively pursue the national objectives of delivering an accurate database of telephone subscribers in Nigeria, stating that the SIM data submitted to the Commission is constantly being validated for higher efficiency to support the national security objectives of the SIM registration exercise through NCC’s zero tolerance for deviations from the proper registration process.

“I also use this opportunity to restate the Commission’s commitment to the periodic SIM data audit, continuous compliance monitoring exercise on the MNOs, as well as constant consumer education and engagement against using improperly-registered SIM cards. With this, we would be able to, collectively, address national security concerns, especially kidnappings, banditry, armed robberies, cattle rustling and other crimes associated with SIM cards across the nation and to ensure that all SIM cards are traceable to their real owners,” he added.

 

 

PwC: African Capital Market Declined in 2019, Lowest in 10 Years

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Overall, African equity capital market (ECM) activity in 2019 declined sharply both in volume and value from 2018, with 2019 posting the lowest proceeds raised in ten years.

The general slowdown in equity markets was largely driven by a series of macro-economic factors including an ECM deceleration in global markets, caution in the period leading up to key local elections, which took place in both Nigeria and South Africa in 2019, and more specifically in South Africa, growing political gridlock and economic stagnation.
These are some of the key findings from PwC’s 2019 African Capital Markets Watch publication issued today, which analyses equity and debt capital market transactions on an annual basis. This report lists all new primary market equity initial public offerings (IPOs) and further offers (FOs) by listed companies, in which capital was raised on Africa’s principal stock markets and market segments.

The report also includes IPO and FO activity on international exchanges or non-African companies on African exchanges.
Andrew Del Boccio, PwC Africa Capital Markets leader, notes:
“A state of uncertainty seems to have become the ‘new normal’, and we expect some degree of volatility and caution to continue to affect Africa’s capital markets activity in 2020.
“This sentiment is also reflected in PwC’s annual 2019 Global CEO Survey, in which African CEOs noted their expectations for a slowdown in economic growth as well as their top concerns, which included political risk, over-regulation, and worries about finding top talent to fill the skills-gap.”

African Equity Markets
2019 ECM value was the lowest seen over the past decade, while the volume of deals was only lower in 2012. Overall ECM activity in 2019 declined in value and volume by 44% and 29% respectively, compared to 2018.

The decline was mainly related to activity in South Africa, where ECM activity dropped by 69% in terms of value and 46% in terms of volume compared to 2018, and where Africa’s largest bourse saw no capital raised through IPOs in 2019.
Between 2010 and 2019, there were 927 African ECM transactions, raising a total of $88 billion. The highest volume of transactions was recorded in 2015 and 2017, with 125 deals each, while 2012 recorded the lowest volume of transactions with 65 deals.

African IPO Market
Over the past ten years, there have been 215 IPOs by African companies on both African and international exchanges, raising $16.9 bn. 2019 saw the lowest volume in IPO activity over the past ten years, recording a decline of 47% compared to 2018 activity.
No capital was raised via IPOs on the JSE in 2019. However, South Africa still dominated during the decade under review, with seven of the top ten IPOs between 2010-2019, and accounted for the two largest IPOs by value – the $1.2 billion Steinhoff Africa IPO in 2017 and the $819 million Vivo Energy dual listing on the Johannesburg Stock Exchange (JSE) and London Stock Exchange (LSE) in 2018.
Aside from the decreased levels of activity in 2019, there were some other notable events in specific markets. IPO activity resumed in Nigeria after four years, with Airtel Africa Plc’s dual listing on the Nigerian Stock Exchange (NSE) and the LSE, raising $687 million. Mozambique also recorded its first IPO in six years with the listing of Hidroeléctrica de Cahora Bassa on the Bolsa de Valores de Moçambique.
Between 2010 and 2019, total IPO proceeds of $15.9 billion were raised on exchanges in Africa in 202 IPOs. Sub-Saharan African exchanges accounted for 133 IPOs (or 66%) and $12.3 billion (or 77%) of the value raised.  The remainder was raised on the North African exchanges.
Of the amount raised on the sub-Saharan African exchanges, the JSE accounted for 71% or $8.7 billion, while the NSE accounted for 13% or $1.5 billion.

In terms of IPO volume, the JSE and the Botswana Stock Exchange recorded 64 IPOs and 10 IPOs, respectively, while the Ghana Stock Exchange, Bourse Régionale des Valeures Mobilières (BRVM) and the Dar es Salaam Stock Exchange each had 9 IPOs. The Egyptian Exchange accounted for the largest proportion of the IPO proceeds raised on North African exchanges, at 60% or $2.2 billion raised from 23 IPOs.

African FO Market
In 2019, FO activity declined significantly in terms of transaction volume and value, by 25% and 44%, respectively, over the prior year. Low levels of activity in South Africa fueled the decline, with the volume of FOs on the JSE decreasing by 42% from 38 deals recorded in 2018 to 22 deals in 2019, and the value decreasing by 58% from $3.8 billion in 2018 to $1.6 billion in 2019.

Over the past ten years, a total of 712 FO deals were recorded on African exchanges and by African companies on international exchanges with a total of $71.1 billion raised.
2019 saw the lowest FO proceeds raised on African exchanges in the past ten years with $3.5 billion from 59 FOs. Over the past decade, a significant proportion of FO activity took place in South Africa, with the JSE accounting for 58% and 79% of total FO volume and value, respectively.

Egypt accounted for the next-largest amount of FO volume and value at 10% and 6%, respectively, followed by Nigeria with 4% of both FO volume and value.

African Inbound, Outbound, Domestic and Cross-border Activity, 2010-2019
African ECM activity in 2019, similar to prior years, was led by domestic deals, comprising 71% of both ECM volume and value. Outbound ECM saw a marginal increase in the value of transactions between 2018 and 2019, with 11 transactions raising $225.4 million in 2018 versus 11 transactions valued at $244.9 million in 2019.
The JSE led inbound activity in 2019, with ECM funding raised largely by global companies with primary South African operations or historical market ties.

African Debt Markets
Egypt was the largest sovereign issuer of non-local currency debt in 2019, raising a total of $8.2 billion. South Africa was the second-largest sovereign issuer, raising $5.0 billion in September in its largest ever Eurobond issuance, as the country seeks liquidity to address budget deficits and broader systemic issues stifling economic growth.
African issuers have raised $245.9 billion of non-local currency debt from 759 issues over the past ten years, with almost 50% of that value raised in the past three years.

South African corporate issuers accounted for 52% of non-local currency corporate debt issued between 2010 and 2019, including energy utility, Eskom, which accounted for the largest cumulative non-local currency debt value raised by a single issuer over the past decade at $5.5 billion, largely intended to fund the company’s capital expansion programmes, such as the construction of its coal-powered Medupi and Kusile power stations.

The Outlook
Consistent with prior years, we expect governments across the African continent to continue to implement strategies towards building robust capital markets. Some recent examples include Ethiopia’s plan to launch a local stock market during this year, and Angola’s roadmap to privatise its state-owned companies by 2022. In addition, we can expect to see other announced privatisations in Nigeria, Malawi and Ghana.

Alice Tomdio, PwC Africa Capital Markets Director, says:
“Despite the lacklustre activity in 2019, we saw significant progress in various capital markets initiatives during the year, including the drive for sustainable finance through the issuance of social, green and infrastructure bonds in South Africa, Kenya, and Nigeria. Together with a move towards more local currency and blended financing, we expect this trend to continue, and to unlock new sources of capital for African issuers.”

 

 

Coronavirus: 290m Students Stuck at Home in 13 Countries

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School closures in 13 countries linked to the COVID-19 virus epidemic have disrupted the education of more than 290 million students, a record number, the UN education agency UNESCO said on Thursday.

The global scale and speed of the current educational disruption is unparalleled Audrey Azoulay, Director-General, UNESCO

Disadvantaged children are the worst-hit by the emergency measures, declared UNESCO Director-General Audrey Azoulay: “While temporary school closures as a result of health and other crises are not new, unfortunately, the global scale and speed of the current educational disruption is unparalleled and, if prolonged, could threaten the right to education.”

A further nine countries have implemented localized school closures: UNESCO estimates that, if these countries close schools nationwide, a further 180 million children will be prevented from attending school.

Official UNESCO figures show that the vast majority of learners affected are in China (over 233,000,000), followed by Japan (almost 16,500,000), and Iran (more than 14,500,000).

The agency warns that school closures are problematic for several reasons. They negatively impact learning achievement; decrease economic productivity, as parents struggle to balance work commitments with childcare; and compound inequality, as disadvantaged families tend to have lower levels of education, and fewer resources to fill learning gaps.

Other negative consequences include poor nutrition (many children rely on free or discounted school meals), unintended strains on health-care systems (women represent a large share of health-care workers in many countries, and often have to miss work when schools close, in order to take care of their children), and lead to higher school dropout rates (it is a challenge to ensure children return to school following closures).

Ms. Azoulay said that UNESCO is working with countries to ensure continuity of learning for all. The agency is helping to implement large-scale distance learning programmes and plans to convene an emergency meeting of education ministers next week.

 

5G to Contribute $2.2tr to Global Economy by 2034

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According to a new report The Mobile Economy 2020’ by GSMA Intelligence, the research and consulting arm of the Global System for Mobile Communications (GSMA), 5G is forecast to contribute $2.2 trillion to the global economy by 2034, with key industries such as manufacturing, utilities, and professional and financial services benefitting the most from the new technology.

5G has gained significant traction over the past year and is now live in 24 markets worldwide, supported by an expanding roster of 5G devices and growing awareness among consumers. The Report also states that 46 operators in 24 markets have launched commercially available 5G networks by January 30, 2020. One in five mobile connections is forecast to be running on 5G networks by 2025.

“The mobile operator worldwide investment forecast will be more than a trillion dollars over the coming years, focused on rolling out advanced networks to serve both consumer and enterprise customers,” said Mats Granryd, Director General of the GSMA.

“Over the last 12 months we have seen the 5G ‘hype’ make way for reality: millions of consumers are already migrating to 5G, while enterprises are beginning to embrace 5G-enabled network slicing, edge computing and low-latency services.”

 

ICT Industry to Reduce Gas Emissions by 45% in 2030

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A new ITU standard highlights that compliance with the Paris Agreement will require the information and communication technology (ICT) industry to reduce greenhouse gas (GHG) emissions by 45 per cent from 2020 to 2030.

The standard will support ICT companies in reducing GHG emissions at the rate necessary to meet the United Nations Framework Convention on Climate Change (UNFCCC) Paris Agreement’s goal of limiting global warming to 1.5°c above pre-industrial levels.
The recommended emission-reduction targets are the first targets specific to the ICT industry to be approved by the Science Based Target Initiative (SBTi).
The ITU standard – ITU L.1470 “GHG emissions trajectories for the ICT sector compatible with the UNFCCC Paris Agreement” – was developed in collaboration with the Global Enabling Sustainability Initiative (GeSI), GSMA and SBTi. It is supported by associ​ated Guidance for ICT Companies setting Science-Based Targets.
ITU L.1470 puts forward emission-reduction trajectories for operators of mobile networks, fixed networks and datacentres. The standard and associated guidance will support operators in setting targets aligned with the latest climate science, the ‘science-based targets’ recognized by SBTi.
“This new ITU standard offers authoritative guidance on the pathway towards net zero emissions for the ICT industry,” said ITU Secretary-General Houlin Zhao.

“The standard is an example of what can be achieved with good collaboration between key partners. It represents a significant contribution to the international effort in pursuit of the United Nations Sustainable Development Goals.”
29 operator groups representing 30 per cent of the mobile connections worldwide are already committed to science-based targets, reports GSMA.

​These groups include América Móvil, AT&T, BT, Bharti Airtel, Deutsche Telekom, Elisa, Far Eastone, KPN, Magyar Telekom, NTT DOCOMO, Orange, Proximus, Reliance Jio Infocomm, Safaricom, Singtel, SK Telecom, STC, Swisscom, T Mobile USA, Taiwan Mobile, TDC, Tele2, Telefónica, Telekom Austria, Telenor, Telia Company, Telstra, Verizon and Vodafone.