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AMCON: ‘We Need More Women in Financial Services’

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Executive Directors of Asset Management Corporation of Nigeria (AMCON), Mr. Aminu Ismail and Dr. Eberechukwu Uneze (standing middle) in a group photograph with AMCON female staff as part of the activities marking the commemoration of the 2019 International Women’s Day (IWD).

In commemoration of the International Women’s Day (IWD) the Managing Director/Chief Executive Officer, Asset Management Corporation of Nigeria (AMCON), Mr. Ahmed Lawan Kuru has called on parents to educate the girl child to enable them stand the opportunity to compete with their male counterparts in the financial services industry and other fields of employment hitherto dominated by men.

Addressing the staff at the brief ceremony to mark the day at the corporate head office of the Corporation in Abuja at the weekend, Kuru who was represented by Mr. Aminu Ismail, AMCON’s Executive Director, Operations, noted that the financial services industry is fast expanding just as the population is growing meaning that over the next decade there would be critical need for skilled professionals in the sector, and that women must play a significant role in ensuring that these needs are effectively met.

He said: “Nigeria is a big market for financial services and as the most populous country in Africa; it is also the choice investment destination for forward-looking investors. From projections, the country in the years ahead would require professionals in all aspects of financial services and it is my wish that we have increased women participation in the sector. It is not accidental that the theme for this year’s International Women’s Day is ‘Balance for Better’. It has come at a time when women in the industry need to step up participation and contribution in order to achieve this desired goal.

“As far as our Corporation is concerned, we remain committed to ensuring that more women are given the opportunity to pursue their ambitions. We are not afraid to put women in positions of authority because they are women, it is rather based on the competence and value they have added and would continue to add to our resolution and recovery strategy. Aside that, we continually ensure that we train our women and also encourage them to put in more efforts into self-development for effective capacity building.”

The AMCON boss disclosed that the “bad bank” has women who are taking the lead in resolution strategy, administrative and managerial areas of the Corporation’s work. He said, AMCON remains committed to investing in both her female employees and their male counterparts as capacity and efficiency have been at the core of the corporation’s focus.

While commending the efforts of other groups who have pushed for more women participation in the financial industry, he commended associations contributing largely in taking the message to the grassroots, which have encouraged more female participation including young girls in these areas.

Also speaking at the event, Mrs. Modupe Wigwe, a renowned counsellor and Managing Director/Chief Executive Officer of Peak Performance Academy, who was appointed guest speaker at this year’s edition of the celebration at AMCON, challenged the ladies in the corporation to always ensure that they are bold, qualified and competent enough to compete with their male counterparts on professional grounds around the office space.

Executive Directors of Asset Management Corporation of Nigeria (AMCON), Mr. Aminu Ismail and Dr. Eberechukwu Uneze (standing middle) in a group photograph with AMCON female staff as part of the activities marking the commemoration of the 2019 International Women’s Day (IWD).

She said it was not enough for women to be shouting equal rights when indeed most of them are not ready professionally, mentally and emotionally to assume such positions they fight for.

Ecobank Nigeria Unveils Female Entrepreneurs Initiative on IWD

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Managing Director, Ecobank Nigeria, Patrick Akinwuntan (middle) celebrates with female staff to commemorate the International Women’s Day 2019 at the bank’s head office in Lagos.

Ecobank Nigeria has unveiled a special initiative for female entrepreneurs as part of activities to mark the International Women’s Day, 2019.

The Ecobank Female Entrepreneurs Initiative is a platform designed to recognise women as special and unique customers who require tailor-made service offerings. The concept is designed to provide women with the necessary support to help them excel in their endeavours, promote and grow their businesses and generally position them for increased participation, validation and contribution within the society.

Unveiling the initiative at the bank’s head office in Lagos, Managing Director, Patrick Akinwuntan,  said  “increasingly, we are seeing the change in the attitudes of women, and their economic viability as individuals and leaders in their fields. Their banking and financial services as a whole therefore present vast opportunities, if properly understood and managed”.

According to him, the launch is a charge to the society in line with the theme of the International Women’s Day 2019, to challenge the status quo and strive for a balance by empowering females in their immediate environments and subsequently, on a macro level.

In his words “Our female customers will become our flagship ambassadors and we have created this platform for them in line with the sustainability requirements of the Central Bank of Nigeria (CBN). These women will be provided with free health checks, training and empowerment sessions and other support tools from Ecobank. The Ecobank Female Entrepreneurs Initiative aims at empowering women by helping them build capacity to grow their businesses”

Managing Director, Ecobank Nigeria, Patrick Akinwuntan (middle) celebrates with female staff to commemorate the International Women’s Day 2019 at the bank’s head office in Lagos.

Some of the benefits include access to credit facilities with little or no collateral, network opportunities across Africa, financial advisory services, wealth management resources and loyalty schemes.

Also speaking, Executive Director, Commercial Banking, Mrs. Carol Oyedeji stated that Ecobank as a Group is proud to join the rest of the world to commemorate the IWD 2019, with the special theme #BalanceforBetter. For her, this year’s theme leaves no one in doubt as to the dire need to raise more awareness that gender balance is not a women’s issue but a human issue that must be tackled for us to have a better society and that it should not be mistaken for a battle between the sexes.

She called on all in the corporate world to join hands to ensure that “our women attain their full potential in all areas of society, including the workplace, which is vital for our communities and economies to thrive. A balanced world is a better world. We must help forge a more gender-balanced world by celebrating and recognising women’s achievements, raising awareness against bias and taking action for equality”.

Nestlé: ‘More Women in the Workplace Make Business Sense’

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Nestle

Nestlé has launched an ambitious Gender Balance Acceleration Plan ‘From Aspiration to Action’ as part of its activities to highlight International Women’s Day 2019.
The world’s largest food and beverage company believes that a gender balanced workforce makes business sense as it helps to boost innovation and performance, which as a result, better serves the needs of its consumers.
Nestlé’s Global CEO Mark Schneider announced the company’s acceleration plan to make gender balance a priority, based on three pillars: bold leadership, an empowering culture and a set of enabling practices.
In the Central and West Africa Region (CWAR), Nestlé aims to bring the Gender Balance Acceleration Plan to life through its multi-pronged initiatives, such as trainings to raise awareness on gender biases, career development and mentoring programmes for women, gender-sensitive succession planning, offering breastfeeding rooms and nurseries at work, as well as the implementation of its Maternity Protection Policy

Driving Innovation
At Nestlé CWAR, increasing the number of women in the workforce and boosting gender balance is helping to drive innovation.
Bunmi Etty-Mfon, Total Performance Management Manager for Technical at Nestlé CWAR, who has led factory efficiency for over eight years to deliver safe, quality products in Nigeria, Ghana, Senegal, Cameroon and Côte d’Ivoire, has encouraged and experienced this herself.
“When there’s a good mixture of men and women, team-building activities tend to be more balanced, helping to develop greater empathy among individuals and teams. Diversity stimulates greater effort from everyone, leading to improved decision-making.
“Also, as the majority of consumers in our region are women, it gives us great perspective to lead in innovation,” she said.
Rahamatou Palm, Category Manager for our Nescafé business in Burkina Faso, Mali, Niger, Togo and Benin – and a member of the Cluster Management Committee of which half are women – agrees that diversity is key for the company’s growth.
“Gender balance is important to complement the thinking between men and women, leading to more productive debates and innovative decisions. It also fights against discrimination to ensure a better, and more dynamic workplace,” she emphasised.

Improving the Company’s Performance
Nestlé CWAR is also actively enhancing the company’s performance by increasing the number of women in departments that traditionally hire men.
To close the current gender gap, the Technical and Supply Chain Management departments are looking to recruit a majority of women as graduate trainees, and include at least one female candidate in the final interview stage. Efforts are also being made to increase the number of women working in factories across the region.
Ibukun Ipinmoye, Factory Manager of the Flowergate Factory, which includes the first 100% female production line in Nestlé Nigeria, has noted an increase in productivity.
“We soon realised that the female production lines are very productive thanks to their highly committed and collaborative spirit and their careful handling of the equipment. Gender diversity has helped to boost productivity,” he said.
“As a result, we plan to introduce female operators to more complex lines to utilise their multitasking skills, and aim to hire female management trainees to 80%.”
Gbenga Oladunjoye, Factory Manager for Nestlé Ghana, has also seen improved performance in his team.
“My team is more productive, with readily available good talent and a wide diversity of ideas. Women have helped to ignite creativity, offered various perspectives and improved our business,” he said.
Gbenga, who oversees the Tema facility and is part of the Country Management team, added: “They mostly make the decisions to buy products for their families so having women at Nestlé makes business sense.”

Overcoming Biases
However, creating gender balance on the factory floors or in offices does not come without some obstacles. Pressure to conform to gender stereotypes, resistance from men, adapting work patterns to family life and maternity commitments, and the shortage of females in certain fields like engineering, are just some of the gender balance challenges that working women face.
Julia Atta, Production Manager for Milks in Nestlé Ghana, was appointed as the first female production manager for Nestlé CWAR last year – marking a milestone for the company in the region.
She explained that she went into this ‘non-traditional’ line of work for women to change mind-sets and make an impact. But this came with its challenges.
“For any women in a male-dominated environment, even a genuine reason can become a woman’s excuse. For example, I felt I had to turn down an opportunity to go into production because I got pregnant, even though factory management made me an offer. At the time, I was unsure it was the right decision to join, as production was not seen as an ideal environment for my ‘condition’,” Julia said.
“Thanks to the support of management, I had another opportunity to take up a role outside of the country for five months. However, others made me feel like I had made the wrong decision to leave my young child behind – but I was determined to make it work.”
Today, Julia heads the milk production and technical team, leading the production, quality, safety, cost and delivery of 130 tonnes of evaporated milk a day, while also developing her team of junior and senior employees.

Women Leaders Inspiring other Women
Creating a solid pipeline of female talent across all levels enables more women to climb up the career ladder to top positions, which has a ripple effect of encouraging other women to achieve their goals.
“Being a career woman is never a burden or added responsibility, but a platform to inspire and motivate the people you are lucky enough to impact,” Julia continued.
“When a woman is appointed in a leadership role, some people believe this is because of a gender balance strategy and not based on merit. It must be based on non-discrimination, equal opportunities, competence and providing the right support for both men and women in the workplace. This is how we will be genuinely able to highlight and remove the roadblocks to career advancement at work,” she added.
Gbenga Oladunjoye, Factory Manager at the Tema facility in Nestlé Ghana, emphasised that women at Nestlé inspire other women to follow suit, and said: “They enhance inclusiveness, advance opportunities and give hope to women worldwide that they can achieve the same too.”

Building a Strong Pipeline of Talent is Key to Gender Balance
Embracing diversity and increasing the number of women in leadership roles and in the workforce all make business sense at Nestlé CWAR – and for the company worldwide. This is part of its commitment to enhance gender balance in its workforce and empower women across the entire value chain.
But this just doesn’t stop here. To help achieve this across the board, organisations need to build a solid and balanced pipeline of talent and invest in women’s education and training to create and instil diversity at all levels, and in all functions.
“We recognise that gender balance, women’s rights, education for women and women’s empowerment are critical to Creating Shared Value– our approach to how we do business in creating value for both our shareholders and for society,” said Rémy Ejel, Market Head for Nestlé CWA Ltd.
“It is also key to contributing to Sustainable Development Goal 5: Achieve gender equality and empower all women and girls – and we encourage other companies to also make gender balance a priority,” Mr Ejel concluded.

Nigeria Ranks 3rd in Mobile Malware Attacks in 2018

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Four African countries made the list in terms of top 10 countries by share of users attacked by mobile malware; Nigeria climbs from fifth place in 2017 to third in 2018.
Kaspersky Lab researchers have seen the number of attacks using malicious mobile software nearly double in just a year. In 2018 there were 116.5 million attacks, compared to 66.4 million in 2017, with a significant increase in unique users being affected.

Despite more devices being attacked, the number of malware files has decreased; leading researchers to conclude that the quality of mobile malware has become more impactful and precise. These and other findings are unveiled in Kaspersky Lab’s report Mobile malware evolution 2018.
As the world becomes more mobile, the role of smartphones in business processes and day to day life is growing rapidly. In response, cybercriminals are paying more attention to how they are distributing malware and the attack vectors used.

The channels through which malware is delivered to users and infects their devices is a key part of the success of a malicious campaign today, taking advantage of those users who do not have any security solutions installed on their phones.
The success of the distribution strategies is demonstrated not only by the increase in attacks, but also the number of unique users that have encountered malware. In 2018 this figure rose by 774,000 on the previous year, to 9,895,774 affected users.

Among the threats encountered, the most significant growth was in the use of Trojan-Droppers, whose share almost doubled from 8.63% to 17.21%. This type of malware is designed to bypass system protection and deliver there all sorts of malware, from banking Trojans to ransomware.
“In 2018, mobile device users faced what could have been the fiercest cybercriminal onslaught ever seen. Over the course of the year, we observed both new mobile device infection techniques, such as DNS hijacking, along with an increased focus on enhanced distribution schemes, like SMS spam.

This trend demonstrates the growing need for mobile security solutions to be installed on smartphones – to protect users from device infection attempts, regardless of the source,” said Viсtor Chebyshev, Security Expert at Kaspersky Lab.
Four African countries made the list in terms of top 10 countries by share of users attacked by mobile malware – Nigeria in 3rd place at 37.72%, Algeria in 5th place (35.06%), Tanzania in 8th place (31.34%) and Kenya in 9th place with 29.72%.

Other findings in the mobile malware evolution 2018 report include:

  • In 2018 Kaspersky Lab products protected 80,638 users in 150 countries against mobile ransomware, with 60,176 mobile ransomware Trojans samples detected
  • In 2018, a fivefold increase in attacks using mobile malicious crypto currency miners was observed
  • In 2018, 151,359 installation packages for mobile banking Trojans were detected, which is 1.6 times more than in the previous year

In order to protect your devices, Kaspersky Lab security experts advise the following:

  • Only install mobile applications from official app stores, such as Google Play on Android devices or the App Store on iOS
  • Block the installation of programmes from unknown sources in your smartphone’s settings
  • Do not bypass device restrictions as this might provide cybercriminals with limitless capabilities to carry out their attacks
  • Install system and application updates as soon as they are available — they patch vulnerabilities and keep devices protected. Note that the mobile OS system updates should never be downloaded from external resources (unless you are participating in official beta-testing). Application updates can only be installed through official app stores

Use reliable security solutions for comprehensive protection from a wide range of threats, such as Kaspersky Security Cloud.

MTN, Seacom Lead Africa’s Future Digital Infrastructure Tech

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Digital and Broadband infrastructure investment is clearly one of the top priorities for Africa’s key telecom operators and investment firms in 2019. In this article, leaders from MTN, C-Squared, Seacom and Convergence Partners discuss the critical issues ahead of their speaking roles at TMT Finance Africa in Cape Town 2019.
With the huge and increasing demand for data and increasing opportunities for 5G and fibre, digital communications companies including mobile and fixed operators, as well as a range of digital infrastructure specialists and investors, are targeting significant investments in new digital infrastructure.
Byron Clatterbuck, CEO Seacom, one of Africa’s leading submarine and terrestrial broadband operators, sees a really opportunity in making the case for fibre in Africa: “Fibre penetration is still very low in most African countries, so huge opportunities exist to get involved in the rollout of intra-regional projects, national projects, and even international subsea infrastructure projects.  The global cloud services companies are now putting Africa on their development roadmap, and committing significant investment to several African markets.”
For Clatterbuck, this presents a big opportunity for other investors to leverage these investments and to cooperate with these global giants in delivering new services to the business and home markets.

Envir Fraser, CSO & Partner at Convergence Partners, an impact investment management firm focused on the telecommunications, media and technology sector in Africa, expects broadband to continue offering investment opportunities as the need for high quality broadband increases with step changes in prices. “This does mean that the opportunities are shifting from pure greenfield builds and opportunities to brownfield expansion and consolidation in the sector. The needs for “big pipes” to realise the 5G reality will also need increased investment in connecting towers and high sites to high-speed fibre or wireless backhaul networks”, says Fraser.

Working with governments on digital infrastructure investment
To help maintain a high level of investment, Kholekile, Ndamase, Executive: Group Mergers and Acquisitions at MTN, Africa’s biggest mobile telecommunications operator, warns Governments should have a careful plan when considering the licensing questions such as coverage obligations vs license fees vs a fund to finance rural connectivity.
“If government could forego the immediate remuneration of a license fee and opportunity costs of localisations, but instead placed reasonable coverage obligations on operators, it may be more beneficial in the long run to have all their citizens connected to digital and have them participating in the digitally-enabled economy. Making more spectrum available in certain markets would also reduce network congestion and Capex expenditure which will allow the much-needed capital to be spent in the more underserved areas”, Ndamase explains.

Expect consolidation in digital and fibre infrastructure 

Consolidation in the sector is also to be expected, according to Alexander Kiel, CFO, at CSquared, the Google-backed African fibre network operator. “Fibre, like other infrastructure, is a game of scale, we do expect some consolidation to happen over time, with it most likely to start with transfer of management of public fiber assets to private operators.” Over time, as fibrecos increase in scale and expertise, Kiel also expects to see more sale and lease-back deals between the fibrecos and the mobile operators.
For Seacom’s Clatterbuck, “whether it is MNOs trying to bring together a number of African “OpCos” under one brand with synergies at the group level, or it is “fixed” fibre operators consolidating to control and manage as much of the end-to-end network as possible, there is no shortage of M&A and funding opportunities in Africa.  “Consolidation will continue as markets grow and possibly shrink, and as global players look for market entry vehicles going forward,” he says.

Who will be leading fibre investment?
In the next 12 to 18 months, CSquared’s Kiel expects a number of greenfield projects to come out, with multiple roll-outs, “especially in the metro areas where there is still a gap… these deployments will be driven by mobile operators and independent fibrecos”, he comments.
In about five years time, Convergence’s Fraser foresees a market with a limited number of scale players offering a broader set of offerings to operators. He expects “a shift to customer focused services and product offerings as well as continued increase in bandwidth speeds.”
As for MTN’s Ndamase, “fibre and 5G will open up a whole new experience for consumers with particular benefits will not necessarily be seen with the way we currently experience the digital world.” He reckons industries such as Autonomous Vehicles, Automation of business processes, VR & AR and a whole host of other industries that are yet to appear will primarily benefit from this shift.
Leaders from the largest African telecom, media and technology companies, investment banks and investors are meeting to assess the latest investment opportunities at the annual TMT Finance Africa in Cape Town 2019conference on March 28.
Over 75 key speakers have been announced for the event, which features CxOs and senior executives from Vodacom, MTN, Rand Merchant Bank, Vumatel, Helios Towers Africa, ENSafrica, CSquared, Dark Fibre Africa, Convergence Partners, Seacom, Angola Cables, Standard Bank, IFC World Bank, DLA Piper, WIOCC, Paix Data Centres, BCX, European Investment Bank, Investec Asset Management, GreenWish Partners and others.

Sustained Profit Taking Drags Local Bourse… ASI Down 0.2%

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Losses in the local bourse extended into the second consecutive day as the All Share Index (“ASI”) inched southwards by 0.2% following sustained declines in DANGCEM (-0.8%), NIGERIAN BREWERIES (-2.3%) and GUARANTY (-0.8%).

Consequently, market capitalisation fell by N26.9bn to N11.9tn while YTD return moderated to 2.0%. On the other hand, activity level was mixed as volume traded advanced by 4.9% to 218.5m units while value traded fell 1.7% to N2.7bn.

The top traded stocks by volume were ZENITH (34.8m units), ACCESS (29.2m units) and FBNH (29.0m units) while top traded by value were ZENITH (N859.7m), GUARANTY (N850.1m) and FBNH (N235.9m).

Negative Sector Performance 
Performance across sectors was bearish as all sectors under our coverage closed in the red. The Insurance and Oil & Gas indices led declines, retreating 1.0% apiece due to losses in CORNERSTONE (-8.0%), MBENEFIT (-8.0%), AIICO (-1.4%), OANDO (-1.8%) and MOBIL (-5.6%).

Similarly, the Industrial Goods index extended losses, down 0.4% due to sustained profit taking activities in DANGCEM (-0.8%) while the Consumer Goods index lost 0.2% based on price depreciation in NIGERIAN BREWERIES (-2.3%), PZ (-8.3%) and FLOURMILL (-4.8%).

Also, the Banking index reversed prior-day trading gains, down 0.1% as investors sold position in GUARANTY (-0.8%), ACCESS (-1.6%) and DIAMOND (-2.4%).

Investor Sentiment Worsens
Investor sentiment as measured by market breadth (advance/decline ratio) fell to 0.3x from 0.4x recorded the previous trading session.

The top gainers for the day were CADBURY (+7.8%), DANGFLOUR (+4.1%) and STANBIC (+3.0%) while the least performing stocks were UPL (-9.8%), UCAP (-9.1%) and ROYALEX (-8.6%).

We maintain our outlook for a positive close to the benchmark index tomorrow based on investor’s bargain hunting and positioning ahead of dividend announcements.

Microsoft Opens 1st Data Centres in Africa with Availability of Azure

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Yesterday, Microsoft announced the opening of its first data centres in Africa, with the general availability of Azure from the new cloud regions in Cape Town and Johannesburg, South Africa.

This makes Microsoft the first global provider to deliver cloud services from data centres on the continent, which will help companies securely and reliably move their businesses to the cloud while meeting compliance needs.
“Microsoft Azure is now available from our new cloud regions in Cape Town and Johannesburg. The combination of Microsoft’s global cloud infrastructure with the new regions in Africa will create greater economic opportunity for organisations in Africa, accelerate new global investment, and improve access to cloud and internet services,” says Yousef Khalidi, Corporate Vice President, Azure Networking, Microsoft.
Ibrahim Youssry, General Manager, North, West, East, Central Africa, Levant & Pakistan, Microsoft said, “Today is a milestone moment in bringing the global cloud closer to home for African citizens and businesses. Enterprises across Africa can now take full advantage of the many benefits of Microsoft Azure, using cloud services to maintain security and meet compliance standards.”
According to the Cloud Africa 2018 report, cloud use among medium to large organisations in Africa has more than doubled between 2013 and 2018. Due to the benefits of cloud in offering efficiency and scalability, more than 90 percent of surveyed companies in South Africa, Kenya and Nigeria have plans to increase their spending on cloud computing in the next year.
However, a secure offering remains important in maintaining this momentum, with many African CEOs concerned about cyber threats.
“Microsoft has deep expertise in protecting data and empowering customers around the globe to meet extensive security and privacy requirements, including offering the broadest set of compliance certifications and attestations in the industry,” adds Khalidi. “We look forward to supporting more African enterprises in their cloud journeys and offering a trusted path to digital transformation.”

An Investment in Africa
With a network of over 10,000 local partners – and a nearly 30-year history of operating on the continent – the new data centres form part of Microsoft’s on-going investment to enable digital transformation across Africa.
In 2013, Microsoft launched its 4Afrika Initiative working with governments, partners, start-ups and youth to develop more affordable access to the Internet, 21st century skills, and locally relevant technology. Recently, this included a partnership with FirstBank Nigeria to expand cloud services and digital educational platforms to SME customers.
In Kenya, Microsoft is expanding FarmBeats, an end-to-end approach to help farmers benefit from technology. FarmBeats strives to enable data-driven farming, bringing together traditional knowledge, intuition and data to help increase farm productivity and yields.
On the skills development front, Microsoft has established a network of over 800 Microsoft Imagine Academies, offering students of various age groups direct training in the technology field. Together with the African Development Bank, Microsoft is also rolling out `Coding for Employment` to create 25 million jobs and reach 50 million youth and women across Africa.
“We’re working with partners to accelerate cloud readiness and adoption in Africa, ensuring enterprises can deliver services to market faster, businesses can make more data-driven decisions, and governments can better connect with citizens,” adds Youssry.

“As we connect more businesses to Azure, we’re seeing heightened innovation in the cloud and start-ups expanding their services to new markets. The combination of Microsoft’s global cloud infrastructure with the new regions in Africa will now connect businesses with even more opportunity and customers across the globe.”
Azure is the first of Microsoft’s intelligent cloud services to be delivered from the new data centres in South Africa. Office 365, Microsoft’s cloud-based productivity solution, is anticipated to be available by the third quarter of calendar year 2019, while Dynamics 365, the next generation of intelligent business applications, is anticipated in the fourth quarter.

Nestle Nigeria: Strong Earnings Growth in 2018FY Masks Weakness in Q4-18

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Nestle

NESTLE published Q4-18 and 2018FY results after close of market yesterday, with EPS decline of 7.9% y/y in Q4.

According to Cordros Capital, the y/y EPS decline was weighed by significantly higher operating expenditure, higher effective tax rate, both of which offset the increase in gross margin and net finance income. On the 2018FY EPS of NGN54.26 (+27.5% vs. 2017FY), the board has proposed a final dividend of NGN38.50/s, in line with our estimate, and equates to a yield of 2.55% on yesterday’s closing price. 
Q4-18 revenue grew by 9.1%/ y/y, but was below our estimate by 4%. Compared to Q3-18 however, revenue declined by 6.9%, and surprisingly so, given that Q4 has historically been the strongest quarter for NESTLE, from both revenue and earnings perspectives.
The quarterly revenue trend from Nigeria, specifically, is kind of revealing of stagnating volumes; +1.5% in Q2, -0.8% in Q3, and -6.7% in Q4. This suggests that barring a major improvement in the macros, the company would have to raise prices to achieve a meaningful revenue growth in 2019. Looking closer at product segments, NESTLE’s q/q revenue decline in Q4 is linked to the Food segment where volume declined by 11% q/q (+9% y/y), from 4% q/q (12% y/y) growth in Q3-18.  Elsewhere, the Beverage segment returned to growth (+9% y/y and 1% q/q) in Q4-18, following a marginal decline in Q3-18 (-1% y/y).
In Q4-18, CoGs grew at slower rate of 4.3% y/y, consequently producing gross profit growth of 11.1% y/y. Gross margin during the period came in line with our estimates of 44.0%, 156 bps higher y/y but below the record high 45.1% in Q3-18.
OPEX surged 33.2% y/y in Q4-18, with the ratio-to-revenue coming in at 26.1% (the highest on record). OPEX is typically high in the final quarter, but last year’s increase beat historical Q4 growth rate (8% average, with a peak of 17% in Q4-17).

The full year result shows a huge 50% increase in advert spending (8% of total OPEX), which is not clear at this stage, what period of the year it was incurred. Other OPEX (26% of total OPEX), with no breakdown yet, also increased by c.16%. This offset the higher revenue growth and stronger gross margin, resulting in EBITDA declining by 9.1% y/y.
NESTLE recorded net finance income of NGN381.57 million (from NGN990.79 million net finance cost in Q3-18) in Q4-18 with 124.6% y/y increase in interest income and 99% y/y decline net FX loss (NGN96 million).

The balance of the USD loan from parent, Nestle S.A, is now significantly low at NGN5.6 billion (USD15.5 million), from NGN18 billion (USD49.7million) in 2017FY and NGN46.5billion (USD152.5 million) in 2016FY, representing 67% of total outstanding borrowings, from 74% and 92% respectively in 2017FY and 2016FY.

Positive is that this significantly immunizes the P&L from FX loss provisions in the event of currency volatility.
Operating cashflow (+194% vs. 2017FY) got a boost from higher net payables (NGN21.7bn), depreciation (75%), and earnings (+28%).
Compared to Q3-18, EPS was down 15.2%, driven by higher OPEX (+23.4%) and much weaker gross margin (-9.2%). Effective tax rate in the quarter was 15.2%, down from 28.1% and 29.5% respectively in Q3 and Q2, resulting from c. NGN3.4 billion accruing to PAT from the recognition of previously unrecognised tax credits.

Stock Market Bullish Run Halts… ASI Down 0.2%

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In yesterday’s trading session, the three-day bullish run in the domestic equities market was halted as the All Share Index (“ASI”) fell 16bps to settle at 32,121.74 points following profit taking in SEPLAT (-3.6%), ZENITH (-0.8%) and ETI (-2.1%).

As a result, investors wealth decreased by N19.4bn to N12.0tn while YTD return moderated to 2.2%. Also, activity level weakened as volume and value traded declined 48.0% and 19.6% to 208.3m units and N2.8bn respectively.

The most active stocks traded by volume were ZENITH (45.4m units),GUARANTY (23.1m units) and FIDELITY (20.2m units) while ZENITH (N1.1bn), GUARANTY (N872.9m) and DANGCEM (N171.3m) led by value.

Bearish Sector Performance
Sector performance was largely bearish as 2 of 5 stocks under our coverage closed in the green. The Banking and Insurance indices gained a marginal 3bps and 2bps respectively, buoyed by modest price appreciation in GUARANTY (+0.9%) and ACCESS (+1.7%).

On the flip side, the Oil & Gas index extended losses as sell-offs in SEPLAT (-3.6%) dragged the index by 1.7% while the Industrial Goods index trailed, depreciating by 1.3% on the back of declines in CCNN (-5.0%).

Similarly, the Consumer Goods index fell 0.1% based on losses in DANGFLOUR (-0.9%), HONYFLOUR (-3.7%) and CADBURY (-1.9%) which dragged the index.

Investor Sentiment Softens
Investor sentiment as measured by market breadth (advance/decline ratio) fell to 0.4x from 0.8x recorded yesterday.

The top outperforming stocks were JAIZBANK (+5.0%), ACCESS (+1.7%) and UCAP (+1.5%) while the laggards were led by MCNICHOLS (-10.0%), ETRANZACT (-9.9%) and CCNN (-5.0%).

Despite yesterday’s bearish performance, we expect the benchmark index to post a positive close for the week as investors position in fundamentally sound securities ahead of dividend announcements.

Unbanked Africans to Reap from Paxful, Bitmart Partnership

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Paxful, a peer-to-peer Bitcoin marketplace has announced integration onto BitMart, a premier global digital asset trading platform in the crypto-currency market with over 600,000 users worldwide.

This partnership comes at a pivotal time for the crypto community and serves as a step the two entities have taken together in the hopes of increasing liquidity and scalability.

The integration will allow users to make payments via Paxful on the BitMart platform, marking the first efforts of the latter in joining the fast-growing peer-to-peer financial revolution.
Paxful promotes a global peer-to-peer payment logistics platform for the future, allowing direct bitcoin transactions to be made from user to user, which eliminates the need for third-party interactions. With a focus on emerging markets and the unbanked, they provide a space for users to send, receive and store bitcoin.

With this partnership, users will now have direct access to one of the world’s largest digital asset trading platforms, providing increased visibility and over 180 additional trading pairs. Furthermore, integrating Paxful positions BitMart as one of the only exchanges in the world entering the peer-to-peer financial ecosystem, providing people with easier access to the entire financial world.
Features such as zero-cost listing fees and monetarily-backed ratings give room for Paxful technology to serve a vital role in facilitating seamless and rapid transactions throughout the entire platform. This means traders can make globally scaled transactions to obtain bitcoin on Paxful, which can then be exchanged for different types of currency or even reinvested into other assets on the exchange.
“We’re excited to integrate with BitMart in efforts to bring more trading options to emerging markets,” said Ray Youssef, CEO and co-founder of Paxful. “It has always been our mission to provide financial freedom worldwide and we see this as the next big step in the financial revolution.”
According to the World Bank’s Global Financial Inclusion database based on information from more than 140 countries:

  • Two billion people worldwide are completely unbanked.
  • 20% of unbanked adults receive wages or government transfers in cash.
  • Women make up just over half (55%) of unbanked people worldwide.
  • The proportion of people with bank accounts worldwide grew from 51% to 62% between 2011 and 2014.

The goal of this integration is to provide education, opportunities, and allow the unbanked, under-banked, and overbanked to participate in a growing peer-to-peer financial ecosystem.
“BitMart has always been a mission to offer convenient and secure financial services in the crypto market,” said said Sheldon Xia, Founder & CEO of BitMart.

“An integration with a revolutionary company such as Paxful allows us to bring digital asset trading to those who would otherwise not have had the access. With this partnership, investors will now have direct access to multiple payment approaches including bank transfers, gift cards, debit/credit cards, and cash deposits, lowering the barriers to entry for new adopters of digital currency investment.

Domestic Bourse Sustains Positive Streak… ASI Up 14bps

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The equities market maintained a positive performance at the close of trade yesterday as price upticks in GUARANTY (+1.1%), UBN (+4.5%) and ZENITH (+0.8%) drove the benchmark index 14bps higher to 32,173.66 points.

Consequently, market capitalisation increased by N16.3bn to N12.0tn while YTD return improved to 2.4%. Activity level also strengthened as value and volume traded advanced by 32.5% and 75.8% to N3.5bn and 400.5m units respectively.

The most active stocks for the day by value were GUARANTY (N1.2bn), ZENITH (N65.0m), FBNH (N359.0m) while DIAMOND (119.8m units), FBNH (44.3m units) and UBA (40.8m units) led by volume.

Mixed Sector Performance 
Sector performance was bearish as only 2 of 5 indices we cover closed in the green. The Banking index rose 92bps as GUARANTY (+1.1%), UBN (+4.5%) and ZENITH (+0.8%) continued to experience buying interests.

Similarly, the Consumer Goods index advanced 0.3% higher following gains in DANGFLOUR (+5.8%), DANGSUGAR (+1.0%) and HONYFLOUR (+2.3%).

On the flip side, the Insurance index declined by 0.3% on the back of losses in CUSTODIAN (-2.5%) and MBENFITS (-7.4%).

Similarly, the Industrial Goods and Oil & Gas indices fell by 0.3% and 0.1% respectively due sell offs in DANGCEM (-0.5%), REDSTAREX (-9.1%), OANDO (-0.9%) and JAPAUL OIL (-8.7%) .

Investor Sentiment Weakens
Investor sentiment weakened as market breadth (advance/decline ratio) stood at 0.8x, declining from 2.5x in the previous trading session. DANGFLOUR (+5.8%), UBN (+4.5%) and NASCON (+4.2%) were the top performing stocks for the day while REDSTAREX (-9.1%), JAPAULOIL (-8.7%) and MBENEFITS (-7.4%) led laggards.

We expect a moderation in gains as we believe investors will begin to book profit in subsequent trading session.

DHL Renews Sponsorship of eCommerce Africa Conference 2019

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DHL Express in Sub-Saharan Africa (SSA) has announced that the company has once again signed on as lead sponsor for the 2019 DHL eCommerce Africa Conference and Exhibition, which will be held at the Cape Town International Convention Center on the 19thand 20thof March 2019.
The eCommerce Africa Conference and Exhibition, delivered by DHL, is hosted by South African conferencing company, Kinetic, and is one of Africa’s biggest opportunities to bring stakeholders in the ecommerce sector together. Later in the year, Kinetic will also bring the conference to Kenya, with the eCommerce East Africa Edition, also delivered by DHL, set to take place in Nairobi on the 12thand 13th of June 2019.
This year’s event offers participants an opportunity to learn from world-class thought leaders, both from Africa and the rest of the globe, on the innovative strategies that will unlock e-commerce opportunities over the years to come. Delegates from some of the continent’s biggest tech, retail, banking and legal firms will be in attendance to share their experience and engage with attendees to exchange knowledge.
According to the McKinsey Global Institute’s report, Lions Go Digital, e-commerce and fintech represent two of Africa’s biggest growth opportunities, with the growth of the mobile technology market driving both of these sectors. “More than half of urban African consumers already have Internet-capable devices and this number is increasing. Online shopping in Africa could account for up to $75 billion in retail sales by 2025.”
Steve Burd, Vice President Sales for DHL Express Sub-Saharan Africa, explains that the ongoing partnership between DHL and eCommerce Africa is a good fit. “As the market leaders in express logistics in Africa, we have extensive first-hand experience of the positive impact that ecommerce has on the continent. The massive growth in cross-border and international ecommerce in Africa sees DHL working with thousands more customers across the continent each year, helping them to expand their brand across borders.”
He adds that the development of ecommerce in Africa continues to unlock major opportunities for growth. “E-commerce allows entrepreneurs and SMEs to connect with a large customer base and scale up rapidly, which accelerates the need for support services. E-commerce growth therefore has a ripple-effect on many other industries on the continent.”
“DHL’s partnership with eCommerce Africa provides us with an additional platform to connect with organisations and help them to understand key logistics considerations, and learn how to plan for and overcome any logistical challenges,” adds Burd.
Terry Southam, Kinetic Managing Director, says that the collection of thought leaders and the topics under discussion this year are aimed at creating an immediate impact for African ecommerce companies.
“From marketing to fulfilment, the world’s best will be on stage sharing best practice and innovative hacks to drive online growth. It is quite remarkable to have all of these industry leaders on the same stage – not only willing to share but actively working to grow the industry and ensure African customers receive a world-class online shopping experience. This year’s theme for the conference is ‘Conquering Scale’ and we couldn’t be happier to have a market leader like DHL on board, to help us deliver 2 key e-commerce events on the continent this year,” he concludes

BudgIT Charges Buhari to Prioritise Oil Sector Reform

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President Buhari

Following the outcome of the Presidential Election, which returned President Muhammadu Buhari to Aso Rock, BudgIT calls on the Buhari government to assign a higher priority to oil and gas sector reforms in the second phase of the administration.

Recall that President Buhari rejected last August the Petroleum Industry Governance Bill (PIGB) passed by the National Assembly after 16 years of back and forth.

Needless to reiterate, the PIGB would liberalise the governance structure of the oil industry, strengthen institutions and entrench transparency. For these critical reforms, we ask that the Bill should be reconsidered.

Also demanding dire attention is the issue of beneficial ownership. BudgIT notes that a lot of oil companies seem to operate under fake identities.

A lasting example is the case of Malabu Oil Scandal in which Dan Etete, petroleum minister under the Abacha regime, acquired “OPL 245” through Malabu Oil and Gas Limited, a camouflage of his personal company, to perpetuate one of the biggest frauds in the history of Nigeria’s oil sector.

Besides, our analysis of NEITI’s last audit report revealed: Losses arising from crude oil theft and sabotage in the upstream and downstream sectors amounted to $869.02 million and $3.55 billion respectively in 2016.

“If properly structured back into the economy, the whopping amount that goes down the drain, courtesy of these lapses, will go a long way in contributing to the economic recovery and growth plan of the government,” noted Gabriel Okeowo, BudgIT’s Principal Lead.

Lack of transparency and accountability remains the biggest challenge in the oil and gas sector. To solve this, ensuring capacity building as well as the development of effective business models that are profit-driven, calls for decisive reforms can no longer be ignored.

Moreso, we strongly believe that the reforms will go a long way in enhancing good governance and processes that are flexible to the peculiarities of Nigeria’s oil and gas industry.

‘Africa Has GDP of $3.4 tr,1bn Population’

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Equatorial Guinea will host the African Development Bank’s next Annual Meetings in June 2019, following the signing of a memorandum of understanding between the two parties. The Annual Meetings will take place from 11th to 14th June, 2019 in the country’s capital city, Malabo.

The theme of the African Development Bank’s Annual Meetings this year is  ‘Regional integration’ –  one of the Bank’s five strategic priorities, known as the High 5s: Light up and power Africa, Feed Africa, Industrialise AfricaIntegrate Africa and Improve the quality of life of the people of Africa.
With 1 billion people, Africa has a combined GDP of more than $3.4 trillion. Such a market could create huge opportunities for producers on the continent. But to make it a reality, African governments and regional economic communities should intensify efforts aimed at facilitating the free movement of goods, services, people and trade across borders.
The Government and people of Equatorial Guinea are ready and look forward to hosting the African Development Bank’s flagship event in 2019,” said Mr. Bernardo Abaga Ndong, general coordinator of the National Technical Committee in charge of the Annual Meetings.
We are determined to make the Annual Meetings in our country a most resounding success that will definitely bolster our national prestige, because an event with over 3,000 participants is not a small affair,” Ndong emphasised. An aide-memoire on the country’s preparedness to host the event was signed on 27th February 2019. The signing took place on the sidelines of regional consultative meetings between the Bank and its African shareholders, held in Abidjan from 25th February to 1st March, 2019, and attended by Equatorial Guinea’s finance minister Lucas Abaga Nchama.
Speaking at the signing, André Basse, the African Development Bank’s Chief of protocol, who signed on behalf of the Bank, commended the host country for its commitment to the success of the Annual Meetings, returning this year to African soil after being held in Korea and India respectively.
The Bank’s Annual Meetings represent a unique opportunity to discuss challenges and ways to advance the continent’s regional integration agenda.
Some 3,000 participants are expected in Malabo, including finance ministers, governors of central banks, policy makers, civil society groups, heads of international organisations and business leaders from the Bank Group’s member states.

Buying Interest Buoys Positive Performance… ASI Up 1.0%

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The domestic bourse kick-started trading activities for the week on a positive note as gains in GUARANTY (+4.8%), ZENITH (+2.3%) and INTBREW (+8.0%) bolstered the All Share Index (ASI), up 95bps to settle at 32,129.94 points.

As a result, market capitalisation increased by N112.9bn to N12.0tn while YTD performance improved to 2.2%. However, activity level weakened as volume and value traded dipped 33.0% and 30.3% to 227.8m units and N2.6bn respectively.

The most traded stocks by volume were DIAMOND (33.0m units), UBA (31.1m units) and ZENITH (28.9m units) while the top traded stocks by value were ZENITH (N703.1m), DANGCEM (N510.8m) and GUARANTY(N391.0m).

Mixed Sector Performance 
Across sectors, performance was mixed albeit positively skewed, as 3 of 5 stocks under our coverage closed in the green. The Banking index was up 2.7% on the back of buying interests in GUARANTY (+4.8%) and ZENITH (+2.3%).

Similarly, the Consumer and Industrial Goods indices posted moderate gains, advancing 0.4% and 0.3% respectively based on price upticks in INTBREW (+8.0%), DANGFLOUR (+5.1%),DANGCEM (+0.2%) and WAPCO (+0.8%).

On the flip side, the Insurance index closed in the red, declining 0.2%, dragged by losses in NEM (-2.4%) while the Oil and Gas index closed flat.

Investor Sentiment Strengthens
Investor sentiment as measured by market breadth (advance/decline ratio) improved today to 2.5x as 25 stocks advanced against the 10 stocks that declined.

The top outperforming stocks were CUTIX (+9.8%), NPFMCRFB (+9.7%) and WEMA (+9.1%) while PZ (-9.6%), LIVESTOCK (-9.0%) and LAWUNION (-5.5%) were the least performing stocks for the day.

We believe that the positive performance recorded yesterday will persist into subsequent trading sessions as investors continue to take positions in fundamentally sound stocks.