CIIN, NYSC Partner on Insurance Development

22/11/2017

CIIN Deputy DG; Mrs. Uju Chukwu, CIIN DG; Mr. Tayo Borokini, CIIN Council Member; Mr. Wale Onaolapo, CIIN President, Mrs Funmi Babington-Ashaye, and CIIN Council Members; Sir M.O Oyegunle and Mr. Jide Orimolade during a Press Briefing held by the CIIN President in Lagos.

The Chartered Insurance Institute of Nigeria (CIIN) has initiated a partnership model with the National Youth Service Corps (NYSC) as part of long-term efforts to develop the insurance sector in Nigeria.

Mrs. Funmi Babington-Ashaye, the President and Chairman of Council of the CIIN said in Lagos yesterday that the partnership was part of the Institute’s ‘Catch-Them-Young’ initiative to create more awareness of insurance in the country. She said the Institute has also donated insurance textbooks to schools in 14 states across the country for the purpose of taking insurance education to the grassroots.

The CIIN president explained the Catch Them Young initiative as follows:

“More strategically, we have taken the insurance awareness campaign to the youths, the leaders of tomorrow. Our desire is to catch them young and imbibe in their consciousness the crucial roles insurance plays in human endeavours. As part of this initiative, the Council has developed a roadmap to drive the Institute’s proposed partnership with theNational Youth Service Corps (NYSC). Accordingly, the Institute has established contacts with the national headquarters of the NYSC, the Lagos, Ogun and Oyo state chapters to intimate them of the CIIN’s Catch-Them-Young Initiative. The pilot edition of the programme will kick-off at the Lagos state NYSC Camp during the November 2017 Orientation Exercise which starts today where a career talk will be organised for the benefit of Corps members. To facilitate continuous information dissemination, a CIIN Enquiry and Help Desk will be on ground throughout the duration of the orientation exercise. This initiative, which is designed to help attract young Nigerians into the insurance profession, will be replicated and sustained in other states of the Federation until it achieves a national spread.”

Law Union & Rock Reports N3.5bn Premium in 9 Months

Business Journal

22/11/2017

Harvest of Awards:

L-R: Mr. Olayiwola Olabisi, Chief Financial Officer; Mrs. Eyoanwan, Head, Human Capital Management; Mr. Olasupo Sogelola; Executive Director, Technical & Operations; Mr. Jide Orimolade, MD/CEO; Mrs. Olufolake Afolabi, Chief Technical Officer; Mr. Steve Ajudua; Chief Marketing Officer Law Union & Rock Insurance Plc.

Law Union & Rock Insurance Plc has announced gross premium written of N3.5 billion as at September 30, 2017 just as it has paid out over N1.25 billion as claims to deserving clients in the same period.

Mr. Jide Orimolade, Managing Director and Chief Executive of Law Union & Rock Insurance said part of its corporate objective is to create niche for ‘ourselves in the industry. We are not unmindful of the competition which is characterised with price war in the industry, but we believe we could navigate through by differentiation and best service delivery.’

LAW UNION AND ROCK INSURANCE PLC Q3, 2017 PERFORMANCE

Total Assets		Shareholders Fund		Gross Premium Written
2017 (N’000)	2016 (N’000)	2017 (N’000)	2016 (N’000)	2017 (N’000)	2016 (N’000)
10,355,252.00	9,228,889.00	6,215,604.52	5,027,265.99	3,531,126.93	3,197,325.04
12%		24%		10%

Net Claim Expenses		Underwriting Result		Management Expenses
2017 (N’000)	2016 (N’000)	2017 (N’000)	2016 (N’000)	2017 (N’000)	2016 (N’000)
611,058.41	611,235.01	713,510.34	970,484.60	801,807.27	782,483.41
-0.03%		-26%		0.02

Investment Income		Profit Before Tax		Retained Earning
2017 (N’000)	2016 (N’000)	2017 (N’000)	2016 (N’000)	2017 (N’000)	2016 (N’000)
611,862.29	369,402.91	727,869.34	610,412.98	470,563.15	-53,091.17
66%		19%		786%

Orimolade said the result indicates that the company is on a growth and better path, ‘although we have not reach our goal, but continuous improved result show we are going to get there. We will not relent in this course of getting to that pinnacle. We encourage the media to join us, especially in creating awareness and also marketing insurance. And when you do that you should be fair to keep propagating the company with good service delivery like Law Union where the customers can get best service.’

NITDA Saves N3bn for FG via IT Process

Business Journal

22/11/2017

The National Information Technology Development Agency (NITDA) has saved the Federal Government the sum of N3 billion on a single cleared IT Project of an Agency through its commitment as the government’s clearinghouse for all IT procurement and services in the public sector.

Amid growing concerns about the mismanagement of huge investment of public funds on IT Projects in MDAs, NITDA has offered a glimmer of hope that the Federal Government shall be getting a handle on wasteful and duplicative IT procurement and services in MDAs.

As an unbiased watchdog of government, the Director General has ensured that there is transparency, accountability, efficiency and effectiveness in the process of obtaining clearance from NITDA targeted at extracting maximum value from MDAs’ investments on IT projects.

President Muhammadu Buhari, GCFR, has called for strict compliance to the IT Project’s Clearance directive by all government establishments to ensure that governments ICT procurements are transparent, align with government’s IT shared vision and policy, save costs through promotion of shared services, avoid duplication, ensure interoperability of IT systems and improve efficiency across government, enforce the patronage of indigenous companies where capacity exist thus fostering digital economy through effective regulation and local content development as well as uphold the highest standards for service delivery.

The President made this declaration at the opening ceremony of this year’s e-Nigeria International Conference and Exhibition held from Tuesday 7^th to Thursday 9^th November, 2017. He also used the event to commend the Agency’s efforts at enforcing Federal Government’s directive on ensuring that all ICT projects are cleared before they are implemented.

The National Information Technology Development Agency (NITDA) is an Agency under the Federal Ministry of Communications. The Agency was created in April 2001 to implement the Nigerian Information Technology Policy and coordinate general IT development and regulation in the country. Specifically, Section 6(a & c) of the Act mandates NITDA to create a framework for the planning, research, development, standardization, application, coordination, monitoring, evaluation and regulation of Information Technology practices, activities and systems in Nigeria; and render advisory services in all information technology matters to the public and private sectors.

Purple Capital Taps $12.5m Funding from Vantage

Business Journal

22/11/2017

Vantage Capital, Africa’s largest mezzanine fund manager, announced yesterday that it has provided $12.5 million of funding to Purple Capital, a prominent Nigerian real estate company and financial service provider.

Purple Capital is the developer of the iconic 6,000m² Maryland Mall, a neighbourhood shopping centre in the Ikeja district of Lagos.
The newly opened Maryland Mall offers one-of-a-kind experiences for adults and children, with over 35,000 visitors experiencing the mall’s varied attractions each week. Entertainment options include one of the only skating rinks in Lagos, a vibrant food court, restaurants and over fifty retail shops.

The centre is home to leading multinational and local brands including Shoprite, Miniso, Uber, Genesis Cinemas, Stanbic IBTC and The Place. Maryland Mall is located on Ikorodu Road, one of the busiest thoroughfares in Lagos, and entices passers-by with one of the largest LED visual display screens in West Africa.
Purple Capital is headquartered in Lagos and has built a high-quality property portfolio, including upmarket residential estates in the Lekki suburb of Lagos.
Warren van der Merwe, Chief Operating Officer of Vantage Capital, said, “The Purple team epitomizes the best of Nigeria’s entrepreneurial spirit with its ability to navigate a demanding operating environment to create market-leading developments. Maryland Mall is one such development, a uniquely inviting family destination for Lagosians of all ages.”
Johnny Jones, Associate Partner at Vantage Capital, added, “Vantage is currently investing over fifty million dollars from its third-generation mezzanine fund in real-estate projects across Sub-Saharan Africa. We have reviewed over fifty real-estate opportunities since we launched our latest mezzanine fund but have only selected four to support. We are impressed with the Purple team’s cost-effective execution and believe their business is an excellent fit for our investment style.”
Laide Agboola, Managing Partner of Purple added, “’We are excited about Vantage Capital’s partnership with Purple on this refinancing and investment transaction which helps us reset, consolidate and gear up for exciting opportunities in the future. It also provides a seal of approval and increased possibilities for growth across our focus areas of financial services and real estate development.”
Obinna Onunkwo, Managing Partner of Purple also added, “Our focus on good corporate governance, high-quality deal origination and execution was a strong attraction for Vantage Capital as an offshore investor. Their investment acts as an enabler to our long-term growth strategy in Africa’s largest economy.”
The Purple investment is Vantage Capital’s sixth transaction in Fund III, a $280 million (R4 billion) fund, with a 55% allocation to countries outside South Africa. Purple Capital represents the 24^th transaction executed by Vantage across three generations of mezzanine funds with aggregate capital deployed to date of $277 million (R4 billion).

Vantage was advised by Adepetun Caxton-Martins Agbor & Segun, one of Nigeria’s top commercial law firms known for its finance and cross-border M&A work, and Werksmans a leading South African corporate and commercial law firm. Purple Capital was advised by Bloomfield Law Practice, a ‘practical and hands-on’ Nigerian law firm with expertise in corporate commercial, private equity, real estate and financing matters.

African Start-Ups Shine at Web Summit 2017

Business Journal

22/11/2017

Legazy returned to the 2017 Web Summit after having attempted to purchase a Web Summit conference in 2016 with $1million letter of intent. Legazy founded by Zuko Tisani one of the world’s top 350 entrepreneurs under the age of 26, according to the Kairos Society, arrived in Lisbon with Africa’s largest TMT company Telkom and their executives prepared to purchase a Web Summit conference to be hosted in South Africa for the next 3-years.

The deal went cold when both parties couldn’t come to an agreement on the numbers. Zuko’s relationship with Web Summit began earlier that year when he attended the Rise conference in Hong Kong and with platinum band was treated to Web Summit’s hospitality and had dinner discussions with the founder of Web Summit Paddy Cosgrave and other tech giants Dave McClure from 500 Startups. It was at dinner where the offer of $1million was given to Zuko.
Instead of giving up on the hopes of bringing the tech world to Africa, Legazy pivoted and took the largest African delegation to the tech world. Twenty startups and two of their board of investors, one being Lebo Gunguluza, South African judge on Dragons Den (networth est. $20mil) and Stephen Newton Former CEO Naspers e-Commerce and Google Africa.
Of the twenty startups that exhibited at the Web Summit, most of the South African entrepreneurs were funded by Standard Bank, Africa’s largest bank and major partner of Legazy. Because Zuko sits on the advisory board of the Chamber of Commerce of Lisbon and South Africa so was able to give intimate engagement to all startups from Business Leaders in Lisbon, Incubators, VC’s etc.
The stories that have come from the entrepreneurs selected for the excursion are amazing, a lot of them had left South Africa only for the first time because of the Web Summit sponsorship. Some of the wins involve upwards of $300,000 in investment (term sheet stage).
Incubation offers to Startup Boot camp London. Partnership with Portuguese bank BNI Banco for one of the Fintechs and valuable connections made for expansion. Startup Lisboa will be incubating a South African startup in February to April 2018.
Legazy continues its pursuit on locking down a major international conference partner for 2018 in South Africa, the market and interest is there to grow the community and improve the ecosystem, from last year’s $1million USD Letter of Intent it seems that the budget is there though too.

Legazy which mainly focuses on sourcing investment-ready startups and getting brokering seed investments from its large pool of investors hopes to be the needed gateway for the world to recognize Africa for its beauty and talent.

Market Statistics: Tuesday, 21st November 2017

Business Journal

22/11/2017

Market Cap (N’bn)	12,738.2
Market Cap (US$’bn)	41.6
NSE All-Share Index	36,600.07
Daily Performance %	(0.5)
Week Performance %	(1.0)
YTD Performance %	36.2
Daily Volume (Million)	257.9
Daily Value (N’bn)	3.3
Daily Value (US$’m)	10.8

Nigerian Equities Market Closes Negative… NSE ASI down 52bps
The Nigerian equities market closed the day negative as the All Share Index shed 52bps to settle at 36,600.07 points; accordingly, YTD return retreated to 36.2%.

Performance today can be largely attributed to losses in NIGERIAN BREWERIES (-3.3%), ZENITH (-3.0%), and GUARANTY (-1.4%). As a result, market capitalization decreased by N67.0bn to N12.7tn. Nonetheless, activity level improved as volume and value traded inched 23.6% and 34.3% higher to 258.0m units and N3.3bn respectively.

Sector Indices Performance Broadly Bearish
Sector performance was broadly negative as 3 of 5 major indices closed in the red. The Banking index led losers, down 1.2% as investors booked profit in ZENITH (-3.0%) and GUARANTY (-1.4%). The Oil & Gas index trailed, down 0.9% on the back of price depreciation in FORTE (-8.9%).

Similarly, losses in NIGERIAN BREWERIES (-3.3%) and FLOURMILL (-5.9%) dragged the Consumer index 0.7% lower. The Insurance and Industrial Goods indices however closed the day flat.

Market Breadth Weakens
Market breadth (advancers/decliners’ ) – which measures investors’ sentiment, weakened to 0.9x from 1.2x recorded the previous day as 18 stocks advanced against 21 stocks that declined. The best performing stocks were CHAMPION (+9.1%), LINKASSURE (+5.2%) and CUSTODYINS (+4.8%) while FORTE (-8.9%), CAVERTON (-5.3%) and FLOURMILL (-5.0%) were the worst performing stocks. Although we expect year-end rebalancing of by portfolio managers to boost performance in December, market will likely continue to trade sideways in the interim due to absence of fundamental drivers of sentiment post-earnings season.

‘AMCON Deserves Commendation for Supporting IDPs’

Business Journal

19/11/2017

Deputy Governor, Yobe State, His Excellency, Engineer Abubakar Aliyu (standing 5^th from left) in a group photograph with some commissioners and senior officials of Yobe State Government and representatives of Asset Management Corporation of Nigeria (AMCON) as well as officials of Education Crisis Response (ECR) during the distribution of AMCON relief materials to Internally Displaced Persons (IDPs) in Yobe State, one of the northeastern states that benefitted in the AMCON intervention…recently.

The Deputy Governor of Yobe State, His Excellency, Engineer Abubakar Aliyu has said a lot still needs to be done in the areas of rehabilitation, reconstruction, resettlement and reintegration of thousands of Internally Displaced Persons (IDPs) in Yobe and other northeastern states that were ravaged by the activities of the Boko Haram activities in the northeast.

Aliyu, who spoke in Yobe at the weekend while commending the kind gesture of the management and staff of Asset Management Corporation of Nigeria (AMCON) who donated scholastic materials to Mainstreamed Learners and Parents Caregivers; starter packs for small scale businesses as well as food items for the affected families in the host communities worth millions of naira also called on other organisations to come to the aide of Yobe and other sister states in the northeast.

He said AMCON’s intervention to IDPs in Yobe came at the time the government of Yobe State under the able leadership of the state governor, His Excellency, Alhaji (Dr.) Ibrahim Gaidam is also doing everything possible to bring an end to the sufferings of the displaced persons in the state.

Aliyu said Yobe State remains perhaps, the most coordinated of all the affected states when it comes to dealing with the challenges of IDPs in the country because the government set up a very powerful committee chaired by his humble self to coordinate every activity that has to do with IDPs in Yobe. For effective coordination and smooth handling of all issues, Engineer Aliyu said the committee, which is further broken down into four sub-committees are responsible for all donations, aides, grants amongst others that arrive the state for onward distribution to the beneficiaries.

He said, “On behalf of the government and people of Yobe State, I welcome you to our state and thank you for the items you have donated to the IDPs in Yobe State. I want to let you know that in Yobe, we are very methodological in handling the issues of IDPs. That was why the governor set up what you can call a one-stop-shop that handles anything IDP in the state because we are dealing with over 300,000 IDPs and 14,000 households that the state government allocated lands for the reconstruction of their houses. The figure is huge and so we need interventions like what you have done because the government alone cannot solve all the problems.

“As we speak, through the hard work and commitment of the state government, we have completed the rebuilding of most of the schools and hospitals. What we encourage donors like AMCON to do is to contact the committee so that we can guide you to channel your donations to areas that are critical. We need AMCON to key into our reconstruction plan for the IDPs, which we have already segmented for easy evaluation. We hope this is not the end of your intervention or assistance to us. I thank you for what you have brought to our IDPs and we believe it would go a long way.”

Earlier in his address, Mr. Hassan Tanko, who represented the Managing Director/Chief Executive Officer, AMCON, Mr. Ahmed Kuru in Yobe told the Deputy Governor that AMCON was moved to assist because of the untold hardship the IDPs were going through due to no fault of theirs.

He said, “Your Excellency, what you are witnessing here today is a clear demonstration of our support to the government and good people of Yobe State. We are concerned by the sufferings of Internally Displaced Persons (IDPs) especially the children and indeed the families that were traumatized and distabilised by insurgence in the northeast, where violent attacks by extremists forced more than 2.2 million people to flee their homes including over one million children who are presently out of school.”

Tanko said AMCON designed the IDP intervention programme for three northeastern states that were worst hit by insurgence. He told the Deputy Governor that the programme was flagged-off in Yola Adamawa State on November 2, where 3000 individuals across seven local government areas of the state benefitted from the relief materials. In Yobe, he stated that the items were meant to go round five local government areas.

Tanko again said, “For us as AMCON, everything that needs to be done must be done to provide succor to these children that are forced out of school. We must all join hands to secure their future though education because that is the best gift you can give a child to secure his or her future. There is also need to support their families. We thank the government and people of Yobe State for accommodating and assisting the IDPs to settle down, we also want to commend the management of USAID-Education Crisis Response (ECR) led by Mr. Ayo Oladini, whom the Management of AMCON selected among all the non-governmental organisations working in the northeast to assist AMCON in the distribution of these relief materials. We thank Almighty God for the peace that is gradually returning in the northeast and pray that as a people, we would not face this sort of crisis again.”

Coscharis, Ford Partner on Life Driving Training in Nigeria

Business Journal

19/11/2017

Ford Motor Company in conjunction with its dealer, Coscharis Motors, hosted members of Riders for Health Nigeria (Riders) on Ford’s Driving Skills for Life (DSFL) training programme. The event took place on November 17, 2017 at the Coscharis Motors head office in Lagos.

The DSFL programme is a global programme aimed at educating drivers about road safety and providing them with safety tips on how to stay safe behind the wheel.

Participants got the opportunity to gain insight on departure angles, brake distance on gravel and the anti-lock braking system (ABS) and how to use other four-wheel drive functions such as traction control, hill control and locking differential. The Ford Figo and Ranger were used during the DSFL training.

“Ford and Coscharis Motors are very pleased to be able to offer Riders this proven road safety tool in the form of the Driving Skills for Life programme and expand our efforts in promoting safe driving. The team at Coscharis Motor’s completed Ford’s DSFL train the trainer programme and it’s through the knowledge and skills transferred to us that we can continue educating Nigerians on road safety,” Abiona Babarinde, General Manager – Marketing and Corporate Communications, at Ford’s distributor, Coscharis Motors.

Riders is an international organisation working to improve the capacity and efficiency of health care delivery systems in Africa by ensuring that health workers have uninterrupted access to reliable transportation especially to marginalised and rural communities.

“We are pleased to be part of the Ford DSFL training programme. We believe that the training will assist with educating our members on road safety, driving techniques, accident prevention and manoeuvres for urban and off-road driving. It’s important to ensure our health workers are safe on the roads when providing much needed medication to communities in rural Nigeria.” said Ajayi Kayode, Country Director for Riders for Health Nigeria.

Early this year, Ford sponsored two Ford Rangers to Riders in Nigeria as part of the organisation’s Project Better World. The vehicles assure Riders deliver medical professionals and supplies to rural areas, support Riders’ fleet of motorcycles and provide more efficient healthcare to communities.

Riders for Health uses over 70 Ford vehicles across six African countries – Nigeria, Zimbabwe, Lesotho, The Gambia, Malawi, and Zambia.

ITU: Innovative ICTs to Drive Economic Opportunities

Business Journal

19/11/2017

The economic opportunities of innovative information and communication technologies (ICTs) such as the Internet of Things, cloud computing, artificial intelligence and smart data for smart sustainable cities were recognised last week in Hammamet, Tunisia at the 15th edition of the ITU World Telecommunication/ICT Indicators Symposium (WTIS‐17) — the main international forum for telecommunication and information society measurements worldwide. Symposium participants included key ICT stakeholders from around the globe representing governments, telecommunication regulatory authorities, national statistics offices, private companies and research institutions.

“We are very pleased to host WTIS-17 in Tunisia this year,” said H.E. Dr Mohamed Anouar Maarouf, Minister of Communication Technologies and Digital Economy of the Republic of Tunisia. “ICT statistics are key to countries’ development. In Tunisia, for example, we propose to strengthen training programmes on statistical indicators to better respond to the needs and expectations of developing countries.”

“Information and communication technologies are driving global development in an unprecedented way, providing huge opportunities for social and economic development,” said Houlin Zhao, ITU Secretary-General. “WTIS-17 was held after the successful completion of the World Telecommunication Development Conference where participants adopted a forward-looking agenda to advance the use of ICTs to achieve the United Nations’ Sustainable Development Goals. The debates and discussions that took place at this Symposium will also go a long way to unlock the potential of ICTs for development.”

WTIS‐17 featured a high-level panel that discussed the importance of data in creating a healthy investment environment, especially in developing countries. Other sessions at WTIS-17 focused on key topics such as: new metrics for broadband and cybersecurity; new data needs for the digital economy, ICT skills, e-waste, and tracking Big Data; as well as innovative technologies, including the Internet of Things, cloud computing, artificial intelligence and smart data for smart sustainable cities.

Mr Brahima Sanou, Director of the ITU Telecommunication Development Bureau (BDT), said that, “WTIS-17 reinforced the importance of good data on current and emerging technologies and its role in creating economic opportunities.” He added that, “During the Symposium, participants highlighted that collaboration across sectors was equally important for the adoption of metrics measuring different areas that impact everyday life.”

Nominations Now Open for ‘IDC CIO Excellence Awards 2018’

Business Journal

19/11/2017

Global technology research and consulting firm International Data Corporation (IDC) has announced that nominations for the upcoming ‘IDC CIO Excellence Awards 2018’ are now open.

With the winners being crowned during the 11th annual edition of IDC’s Middle East CIO Summit in February next year, the ‘IDC CIO Excellence Awards 2018’ will honor those IT leaders that have excelled in conceptualizing and delivering game-changing digital transformation initiatives for their organizations. The deadline for submissions is Friday, December 15, 2017.

“Progressive CIOs across the region are increasingly leveraging digital technologies to transform their customer-engagement strategies, business operations, and operating models in order to compete and thrive in the new digital economy,” says Jyoti Lalchandani, IDC’s group vice president and regional managing director for the Middle East, Turkey, and Africa. “And with annual spending on digital transformation initiatives in the Middle East and Africa set to top $23 million next year, the time has come to recognize the region’s most successful and innovative digital trailblazers.”

With a focus on the tangible benefits brought about by such initiatives, awards will be handed out in the following categories:

‘Best Customer Experience Transformation’
‘Best Business Operations Transformation’
‘Best Information Transformation’
‘Best IT Service Transformation’
‘CIO of the Year’

All nominees must have held the position of CIO (or equivalent) within an organization based in the Middle East for at least 24 months and must have demonstrated excellence in the fields of innovation, change management, IT governance, business enablement, and cost efficiency.

IDC’s Middle East CIO Summit 2018 will host more than 200 of the region’s most influential ICT leaders at Dubai’s JW Marriott Marquis hotel on February 21-22. Combining an eclectic mix of presentations, panel discussions, focus groups, and workshops, the Summit’s agenda for 2018 has been designed to help the region’s CIOs exploit the transformative powers of innovation accelerators such as robotics, artificial intelligence, next-gen security, and the internet of things.

In a new twist for 2018, the Summit will include a series of sessions focusing on the unique challenges and opportunities presented by some of the region’s key country markets, as well as 24 separate focus groups that will explore the industry’s very latest developments in an intimate roundtable setting, thereby enabling delegates to tailor their Summit experience to meet their own individual needs.

Away from the event’s main venue, attendees will be able to participate in various informal activities like golf, seaplane city tours, driving experiences at Yas Marina Circuit, and heritage desert safaris, to name just a few.

There will also be a dedicated awards ceremony to acknowledge the efforts of the Middle East’s most inspirational ICT leaders, confirming the CIO Summit’s status as the industry’s premier platform for networking and professional development.

Ecobank Research: Gas, FinTech to Drive African Economies

Business Journal

17/11/2017

The 2017 version of Ecobank Research’s Fixed Income, Currency and Commodities (FICC) Guidebook, which provides expert knowledge and analysis on African markets for investors and businesses, was launched today at AfricaFICC. Indicating a positive outlook for the continent, three key trends are forecast to take hold during the next 12 months.

The first indicates an economic rebound in sub-Saharan Africa driven by a recovery in the region’s economic heavyweights, Nigeria and South Africa, and on-going growth in the top performers, Ethiopia, Côte d’Ivoire and (more recently) Ghana.

Growth will be driven by a rise in oil production (notably in Ghana, Republic of Congo, Nigeria and Angola), strengthening infrastructure investment across West and East Africa, and improved weather conditions which bode well for crops.

Strengthening economic activity, plus a moderate improvement in oil and mineral prices, will help narrow the current account deficit, but pressure on SSA currencies will remain.

The second emerging trend points to West Africa’s gas sector becoming a hive of activity in 2018 from Senegal to Angola, with the development of gas pipelines, floating liquefied natural gas (FLNG) platforms and major gas field projects.

Governments in the Gulf of Guinea and across West Africa have ramped up efforts to secure gas supply in order to boost domestic power generation and diversify their revenues away from crude oil.

Deregulating the gas market and allowing market-driven gas prices will be key to unlocking further gas infrastructure investment across the region.

The third trend suggests Fintech innovation in Africa picking up speed in 2018 buoyed by a new generation of Africans who are ‘digital natives’. The proliferation of tech hubs across Africa (notably in South Africa, Kenya, Rwanda, Nigeria, Ghana and Côte d’Ivoire) will nurture the next wave of African start-ups and help connect them with investors.

Digital innovation in SSA is being driven by the explosion in mobile phone usage, enabling African consumers to leapfrog existing business models and technologies.

African Fintech firms are increasingly driving this innovation, deploying digital tools to build credit profiles for the previously ‘unbankable’, providing electricity to rural households that were previously off the grid, even using artificial intelligence to diagnose health problems remotely.

Edward George, Head of Ecobank Group Research, said: “The digital world moves apace, and so must we. The AfricaFICC website is a key way that we can deliver our regional market analysis and expert local knowledge of 41 African markets – which is often hard to access – to a much wider audience. We think these three trends are strong evidence that Africa has weathered the storms of late and is very much on track for improved growth in 2018.”

About Ecobank Research
The Ecobank Research Centre is dedicated to providing the highest quality research for clients to help them navigate the complex African marketplace. Areas covered include; Economics, Banking and Financial services, Oil, Gas & Power, Soft Commodities, Trade and Digital Innovation.

A team of seasoned analysts based across Ecobank’s 36-country footprint is able to draw upon on extensive local knowledge to provide insights for clients and identify investment opportunities. The insights focus on Middle Africa – the region between North Africa and the Rand Zone, which has the richest potential for growth but is poorly understood.

Ecobank Research provides regular market updates, briefing notes and detailed studies on the region’s macro-economics, currencies, fixed income, equities, commodities, trade and digital innovation.

‘Aviation Contributes $72.5bn in GDP to Africa’

Business Journal

17/11/2017

The International Air Transport Association (IATA) highlighted five priorities which must be addressed for aviation to deliver maximum economic and social benefits in Africa.

These are:

Enhancing safety efforts
Enabling airlines to improve intra-Africa connectivity
Unblocking airline funds
Avoiding air traffic management re-fragmentation and over-investment
Ensuring that Africa has the professionals it needs to support the industry’s growth

Aviation currently supports 6.8 million jobs and contributes $72.5 billion in GDP to Africa. Over the next 20 years passenger demand is set to expand by an average of 5.7% annually.

“Africa is the region with greatest aviation potential. Over a billion people are spread across this vast continent. Aviation is uniquely placed to link Africa’s economic opportunities internally and beyond. And in doing so, aviation spreads prosperity and changes peoples’ lives for the better. That’s important for Africa. Aviation can help in achieving the UN’s Sustainable Development Goals, including the eradication of poverty and improving both healthcare and education,” said Alexandre de Juniac, IATA’s Director General and CEO, in a keynote address delivered on his behalf by Raphael Kuuchi, IATA Vice President, Africa, to the 49th African Airline’s Association Annual (AFRAA) General Assembly in Kigali, Rwanda.

“Africa also faces great challenges and many airlines struggle to break-even. And, as a whole, the African aviation industry will lose $1.50 for each passenger it carries. Governments should be aware that Africa is a high-cost place for aviation. Taxes, fuel and infrastructure charges are higher than the global average. Additionally, insufficient safety oversight, failure to follow global standards, and restrictive air service agreements all add to the burden that stands in the way of aviation’s economic and social benefits,” said de Juniac.

Safety
Safety in Africa has improved. In 2016 there were no passenger fatalities or jet hull losses in Sub-Saharan Africa. When turbo-prop operations are included, Sub-Saharan Africa recorded 2.3 accidents per million flights against a global average of 1.6 accidents per million flights.

“African safety has improved, but there is a gap to close. Global standards such as the IATA Operational Safety Audit (IOSA) are the key. Performance statistics for IOSA show that the accident rate of the 33 IOSA registered carriers in Sub-Saharan Africa is half that of carriers not on the registry. That’s why I urge African Governments to use IOSA in their safety oversight,” said de Juniac.

De Juniac also called for improved government safety oversight, noting that only 22 African states have reached or surpassed the implementation of 60% of the International Civil Aviation Organization’s (ICAO) standards and recommended practices (SARPs) for safety oversight. “The Abuja declaration committed states to achieve world class safety in Africa. ICAO SARPs are critical global standards. And governments must not fall behind in delivering on important revised Abuja targets such as the establishment of Runway Safety Teams,” said de Juniac.

Intra-Africa Connectivity
IATA urged the 22 states that have signed-up for the Yamoussoukro Decision (which opens intra-Africa aviation markets) to follow through on their commitment. And it further urged governments to progress the African Union’s Single Africa Air Transport Market initiative.

“African economic growth is being constrained by a lack of intra-Africa air connectivity. Opportunities are being lost simply because convenient flight connections are not available. While we cannot undo the past, we should not miss out on a bright future,” said de Juniac.

Blocked Funds
Airlines experience varying degrees of difficulty repatriating revenues earned in Africa from their operations in Angola, Algeria, Eritrea, Ethiopia, Libya, Mozambique, Nigeria, Sudan and Zimbabwe. “Practical solutions are needed so that airlines can reliably repatriate their revenues. It’s a condition for doing business and providing connectivity,” said de Juniac.

Air Traffic Management
IATA called on African governments to avoid air traffic management re-fragmentation in the face of decisions by Rwanda to leave the Dar-Es-Salamm Flight Information Region (FIR) and South Sudan to leave the Khartoum FIR. “ASENCA, COMESA and the EAC upper airspace initiatives improve the efficiency of air traffic management by working together. I urge Rwanda and South Sudan to reconsider their decisions,” said de Juniac.

IATA also urged industry consultation on air traffic management investment decisions. That will ensure alignment with airline operational needs and avoid over-investment. “Investments must improve safety and efficiency from the user’s perspective. If not, they are just an additional cost burden,” said de Juniac. The ICAO Collaborative Decision Making (CDM) framework is a practical guide for such consultations.

Human Capital
Supporting that growth will need a much expanded labor force. “African Governments need to collaborate with the industry to better understand the industry’s future needs. That will guide the creation of a policy environment to support the development of future talent needed to deliver the benefits of aviation growth,” said de Juniac.

Market Statistics: Thursday, 16th November 2017

Business Journal

17/11/2017

Market Cap (N’bn)	12,750.3
Market Cap (US$’bn)	41.7
NSE All-Share Index	36,634.89
Daily Performance %	0.0
Week Performance %	(1.1)
YTD Performance %	36.3
Daily Volume (Million)	217.8
Daily Value (N’bn)	11.7
Daily Value (US$’m)	38.3

Market Rebounds after a 2-Day Selloff… NSE ASI up 5bps
The equities market clawed back gains after a 2-day selloff as the All Share Index (ASI) rose by a marginal 5bps to close at 36,634.89 points while YTD return improved to 36.3%. As a result, market capitalization increased by N77.1bn to settle at N12.8tn.

Today’s market performance was bolstered by price appreciations in GUARANTY (+1.4%), INTBREW (+3.6%) and PZ (+5.0%). Likewise, activity level improved as volume traded advanced 18.2% to 217.8m units while value traded surged 252.1% to N11.7bn.

The surge in activity level is largely due to NIGERIAN BREWERIES which accounted for 31.4% and 81.1% of total volume and value traded respectively.

Insurance Index Leads Losers
Performance across sectors was mixed as 3 of 5 indices closed in the red. The insurance Index was the biggest loser, down 0.8% as LINKASSURE (-3.4%) and AIICO (-1.8%) recorded losses. Similarly, the Oil & Gas index fell 0.2% – largely on the back of price depreciation in SEPLAT (-1.0%).

Also, the Consumer Goods index shed 0.1% due to selling pressure in NIGERIAN BREWERIES (-0.6%) and DANGSUGAR (-2.1%). However, the Industrial Goods index closed the day flat.

Investor Sentiment Strengthens
Investor sentiment strengthened, albeit still negative, as market breadth (Advance/Decline ratio) rose from 0.6x the previous session to 0.7x today as 17 stocks advanced against 25 which declined. Top performers were BOCGAS (+9.9%), PZ (+5.0) and AGLEVENT (+4.7%) while CAVERTON (-9.0%), ETERNA (-5.8%) and UPL (-5.0%) led laggards.

The marginal rebound recorded today was in line with our expectation after the large selloffs in prior trading sessions. We expect the market to further claw back gains in tomorrow’s session on bargain hunting.

NITDA Threatens MDAs over .GOV.NG Compliance

Business Journal

16/11/2017

The management of National Information Technology Development Agency (NITDA) has observed the disregard to the use of .gov.ng domain in the transaction of government business despite previous press statements by the agency.

NITDA will henceforth ensure strict compliance with the directive by ensuring that all government business transactions are strictly carried out on the Country Code Top Level Domain of the Nigerian government (ccTLD.ng). To this end, the management of NITDA has put in place measures to ensure that all government MDAs (Federal, State, and Local Government) operate within the .gov.ng.

These measures include:

Ensuring that all request for .gov.ng domain are verified and approved within 24hours provided all conditions are met.
Provision of a Special Purpose 24/7 mobile phone number (+2348140504418) for responses to enquiries and technical support;
Regular evaluation of government websites in collaboration with relevant agencies of the government; and
Blacklisting of all MDA sites running on Generic Top Level Domain (gTLD), other than the .gov.ng.

For the avoidance of doubt, the National Information Technology Development Agency (NITDA) is an Agency of the Nigerian Government tasked with the implementation of the Nigerian Information Technology Policy and co-ordination of general IT development and regulation in the country. Section 6(l) of the NITDA Act mandates that NITDA renders advisory services in all Information Technology matters to the public and private sectors. NITDA is also mandated “To ensure Internet governance and supervision of the management of the country code top-level domain (cctld.ng) on behalf of all Nigerians.”

Furthermore, .gov.ng domain names are free with no rental or renewal cost attached. We therefore call on MDAs and service providers to support the Federal Government effort of moving Nigeria up on the scale of “ease of doing business” by ensuring that all government websites are ONLY hosted on the .gov.ng as this will promote Government service delivery in Nigeria.

BPE Earns Kudos from Ondo Gov for Privatisation Drive

Business Journal

16/11/2017

Alex Okoh Director-General BPE — Alex Okoh, Director-General, BPE

Ondo State Governor, Arakunrin Oluwarotimi Akeredolu, has commended the Bureau of Public Enterprises (BPE) for its reform and privatisation transactions in the country, especially in the telecom sector which has deepened and transformed the Nigerian economy.

Speaking when he received the Director General of the BPE, Mr. Alex A. Okoh, in his office in Akure, Ondo State recently to discuss the divestment of the Federal Government’s equity in the Nigerian-Romanian Wood Industry (NIROWI), the Governor urged Nigerians to appreciate the Bureau for “its far reaching reforms achievements also in the pension and ports sectors”.

He commended the Director General for the proposal to divest the Federal Government’s interest in NIROWI to the Ondo State Government, stressing that he was particularly happy that the DG’s visit would dispel the wrong impression by people of the state that “NIROWI belongs to the state government which has abandoned it.”

He added that “it is now clear that the state is a minority shareholder of a moribund, to be charitable, but actually, a dead company.”

Akeredolu said the state would apply to the Federal Executive Council (FEC) to donate the Federal Government’s 30.10% equity in the company to the state, noting that “a 49 hectare company is not what any government will toy with, if not for nothing, at least for the strategic value and location of the land”.

According to him, the company could be revived, rehabilitated and used for another manufacturing company or converted to an industrial/skill acquisition park in Ondo town. He appealed to the Bureau to advise the State Government of other interests in the company which the state was ready to accommodate and work with.

Earlier, the Director-General of the BPE, Mr. Alex A. Okoh, had said the meeting was a follow-up to the approval by the National Council on Privatisation (NCP) to divest the Federal Government’s 30.10% in NIROWI to the Ondo State Government.

Giving the history of the company, the DG said it was incorporated in 1974, began production of wood, furniture and plywood in 1979 and shut down in 1997 due to mismanagement, inadequate working capital and frequent breakdown of plant and equipment.

Okoh noted that transferring the company to the Ondo State Government would stop the deterioration of the asset coupled with the unhelpful disposition of the private shareholder which has delayed the privatisation of the company.

He advised the Ondo State Government to consider the divestment proposal which is in the spirit of the cooperation between the Federal and State Governments with a view to putting moribund or abandoned enterprises to better use for the benefit of Nigerians.

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