Nigeria’s Weakness Slows Africa Passenger Growth in Jan

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09/03/2017

The International Air Transport Association (IATA) announced global passenger traffic results for January 2017 showing demand (revenue passenger kilometers or RPKs) rose 9.6% compared to January 2016. This was the strongest increase in more than five years.

Results were positively affected by traffic associated with the Lunar New Year celebrations, which occurred in January this year, compared to February in 2016. IATA estimates the holiday-related travel contributed up to one-half a percentage point in extra demand growth. January capacity rose 8.0%, and load factor climbed 1.2 percentage points to 80.2%.

“2017 is off to a very strong start, with demand at levels not seen since 2011. This is supported by the upturn in the global economic cycle and a return to a more normal environment after the terrorism and political ‘shock’ events seen in early 2016,” said Alexandre de Juniac, IATA’s Director General and CEO.

January 2017 (% year-on-year)	World share¹	RPK	ASK	PLF (%-pt)²	PLF (level)³
Total Market	100.0%	9.6%	8.0%	1.2%	80.2%
Africa	2.2%	5.2%	3.9%	0.9%	70.1%
Asia Pacific	32.9%	14.3%	11.1%	2.2%	81.5%
Europe	26.4%	8.4%	7.0%	1.0%	79.4%
Latin America	5.2%	4.9%	3.7%	0.9%	83.2%
Middle East	9.6%	13.5%	11.2%	1.6%	79.4%
North America	23.7%	3.4%	4.1%	-0.5%	80.0%

¹% of industry RPKs in 2016 ²Year-on-year change in load factor ³Load factor level

International Passenger Markets
January international passenger traffic surged 9.3% compared to the year-ago period. Capacity rose 7.5% and load factor climbed 1.3 percentage point to 80.3%. All regions recorded year-over-year increases in demand led by the Middle East and Asia Pacific.

Asia Pacific carriers recorded an increase of 10.9% compared to January 2016, helped by the impact of Lunar New Year-related travel and solid growth on routes within Asia. Capacity rose 8.9%, pushing up load factor 1.5 percentage points to 81.4%.
European carriers’ international traffic climbed 8.3% in January compared to the year-ago period against a backdrop of moderate momentum in the Eurozone economy. Capacity rose 6.7% and load factor was up 1.2 percentage points to 80.3%.
Middle East carriers had the strongest year-over-year demand growth in January at 14.4%. Capacity climbed 11.4% and load factor rose against the year-ago period for a third consecutive month, up 2.1 percentage points to 79.8%.
North American airlines had the slowest demand growth, with traffic rising 3.2% in January, compared to a year ago. Capacity climbed 3.1%, and load factor was flat at 80.3%. Traffic on the transpacific market has continued to trend upwards but North Atlantic traffic growth has weakened since the middle of 2016, reflecting softer demand on UK-US routes.
Latin American airlines’ traffic climbed 8.2% in January. Capacity rose 5.7% and load factor increased 1.9 percentage points to 83.7%, highest among the regions. Robust international demand within South America is offsetting weaker demand to North America.
African airlines saw January traffic rise 5.6% compared to January 2016. This reflects a recovery on the key routes to/from Europe, despite continuing weakness in South Africa and Nigeria. With capacity up 4.5%, load factor rose 0.7 percentage point to 69.9%.

Kwesé TV Brings ESPN Back to Africa

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09/03/2017

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Econet Media’s Kwesé Sports and ESPN today launched the exclusive ESPN channel on the Kwesé TV bouquet. This collaboration with Africa’s emerging home of premium sports marks the much anticipated return of ESPN to the African continent.

The channel comes after the announcement of the game-changing long-term agreement between the two sports broadcasting powerhouses which confirmed Kwesé Sports as the home of ESPN in Africa.

The channel will deliver the most comprehensive sports coverage on the continent bringing the best in sports to African fans through live coverage of events from across the globe. Along with live sports, the channel introduces unique original programming including an African edition of the popular SportsCenterprogramme, an iconic and hugely popular show with fans across the world. Hosted by ESPN’s Philip Murphy, SportsCenter will cover the latest in sports news, highlights and updates in its signature fast-paced format, which has made it one of the most loved and awarded shows in television.

Since it launched in 2016, Kwesé Sports has continued to shake up the sports broadcasting industry with its unique offering that already boasts an impressive line-up which includes some of the best in American sports, including the NFL, NHL and the NBA. Through this collaboration with the global leader in sports media, Kwesé will exclusively bring thousands of hours of programming to audiences in 19 countries across sub-Saharan Africa.

The channel aims to be the first choice for fans wanting the latest news and updates and promises a diverse programming schedule designed to appeal to even the most discerning sports fan. The exciting launch programming for March includes; March Madness which tips off on the 15^th, X Games action live from Norway, Indy Car 2017 and AFL.

In addition to launching the ESPN channel, Kwesé and ESPN will launch an African edition of the ESPN website and mobile app later this year. Leveraging ESPN’s position as the world’s leading digital sports brand and Kwesé’s pan-African reach and TV everywhere multiplatform distribution, these digital destinations will keep sports fans up-to-date with access to news, scores, features, video, live games and matches wherever they are — putting the best in international sports in their pocket! KweseESPN.com and the new KweseESPN app, coupled with the Kwesé TV Everywhere App, will give its viewers 24/7 access to all the latest in sports from across the globe in a way that has never existed for African sports fans.

Commenting on the launch, President and CEO of Econet Media, Joseph Hundah said: “This is a real game changer. In ESPN we have a collaborator that enhances our offering to our viewers. We have always aimed to deliver premium sports programming and we continue to bring the best to our sports fans, through our acquisitions of top-shelf sports rights and our investment in our platforms and in how we deliver our programming whether through Pay-Tv, Free-to-air or digital mobile platforms. The launch of this channel is significant as it cements our place as a leading provider of sports programming in Africa.”

Added Russell Wolff, Executive Vice President and Managing Director, ESPN International: “We are thrilled to be working with a fellow innovator like Econet to bring ESPN and SportsCenter back to television screens in Africa and expanding the Kwesé and ESPN digital connection with fans. This launch is just the beginning of how these two great companies will serve fans Africa.”

FG Creates Assets Tracking, Management Project

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05/03/2017

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The Federal Government has launched an Asset Tracking and Management Project (ATMProject), through which for the first time, the Government would be able to locate, identify, assess and evaluate all its moveable and immoveable assets, the Minister of Finance, Mrs. Kemi Adeosun, has announced.

Similarly, a Central Asset Register would be created and domiciled in the Federal Ministry of Finance for recording the actual quantity, value, condition and location of all the capital assets belonging to the Federal Government. Under the International Public Sector reporting Standard (IPSAS) Government is expected to record both its assets and liabilities.

“For the first time a central and Unified National Database of Assets ( Asset Register) would be generated and maintained for the purpose of recording, tracking and managing the huge investments in capital assets owned by Government,” the Minister explained.

According to a statement by Salisu Na’inna Dambatta, Director of Information, Federal Ministry of Finance, the Assets Tracking and Management Project and the creation of the Assets Register were new initiatives of the Federal Ministry of Finance designed to enhance accountability, promote transparency and deepen efficiency in line with the change agenda of the Administration of President Muhammadu Buhari.

“The Asset Tracking exercise and Register will make planning and control easier and improve accountability for assets. With the increased allocation to capital expenditure to 30%, it is important that all assets are recorded and accounted for. Where disposals occur, they must be in line with the laid down procedures and must be transparent.”

The Asset Register would afford the Government to know and monitor in real time online information on the inventory of Government Assets.

A Project Coordinator has been appointed by the Minister for the immediate take-off of the Asset Tracking and Management Project and the creation of the first Central Asset Register for the Federal Government.

Meanwhile a circular signed by the Minister of Finance has been dispatched to all Federal Ministries, Departments and Agencies (MDAs) requesting their Accounting Officers to prepare an inventory of all fixed assets held as at 31^st December 2016, to facilitate physical verification by the Project Team.

The circular further requested all heads of MDAs “to ensure that any assets held by current and former staff are fully accounted for. In this regard, you may find it necessary to contact any former staff and /or political office holders to avail them the opportunity to return relevant assets in their possession.”

The circular emphasised that “all inventory records submitted will be cross-checked to capital releases and project account purchases to ensure completeness. Where assets have been sold or otherwise disposed of, they must be recorded with supporting authorization for sale and evidence of payment, where applicable.”

The Circular drew the attention of Heads of MDAs to Chapter 26 of the Financial Regulations, with regards to disposals of assets and warned that “any asset not accessible for physical inspection and not disposed of in accordance with financial requirements will be deemed to have been illegally withheld or converted. Please record such assets so as to enable the investigative agencies to be notified.”

The records of the assets disposed of should cover the last five years and all accounting officers of the MDAs were to submit their reports not later than three weeks from the date of receipt of the circular.

It could be recalled that the Independent Corrupt Practices Commission (ICPC) delivered 40 vehicles to the Federal Ministry of Water Resources which it recovered from some retired Directors of the Ministry; and also the Economic and Financial Crimes Commission (EFCC) announced the recovery of 40 Sports Utility Vehicles from a retired Permanent Secretary who served in the Federal Ministry of Power.

GDP Contracts 1.3% in Q4: 2016; February PMI Data Shows Further Weakness

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05/03/2017

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Capture

The National Bureau of Statistics (NBS) released Q4:2016 GDP estimates during the week alongside FY: 2016 GDP report.

The report showed economic output declined in real terms for the fourth consecutive quarter by 1.3% Y-o-Y in Q4:2016, much in line with Afrinvest’s projection of -1.2%, thus bringing FY: 2016 GDP growth to -1.5% Y-o-Y: the first annual GDP contraction in 25 years.
Oil sector was the major drag to aggregate GDP performance against the backdrop of renewed militancy in the Niger Delta region which kept oil production below optimal and medium term trend level for much of 2016.

This culminated in a 12.3% Y-o-Y decline in Oil GDP in Q4:2016 despite an 8.1% Q-o-Q growth which was driven by improvement in oil production volumes from 1.6mb/d in Q3:2016 to 1.9mb/d in Q4:2016.

Non-Oil GDP also contracted 0.3% Y-o-Y in Q4: 2016, reversing the 3bps Y-o-Y growth in Q3: 2016, following a steeper and extended contraction in Services sector output to third consecutive quarter (-1.5% Y-o-Y in Q4:2016 from -1.2% Y-o-Y in Q3:2016) which offset sustained outperformance of the Agriculture sector which grew +4.0% Y-o-Y in the period and moderation in Industrial sector weakness (from -12.2% Y-o-Y in Q3:2016 to -6.7% in Q4:2016).
Sectoral breakdown for full year numbers indicates the Industrial Sector recorded the worst performance (-8.4% Y-o-Y compared to -2.2% in FY:2015) due to weaker oil production volumes and lingering FX challenges which weighed on Manufacturing sector activities. Similarly, the Services sector contracted 0.9% Y-o-Y from 4.7% Y-o-Y in FY: 2015. The Agriculture sector was the only outlier as it strengthened 4.0% Y-o-Y from 3.8% Y-o-Y in FY: 2015.
Our outlook for growth in FY: 2017 is more sanguine than our last forecast update. Of the three cyclical/structural factors we listed as important in influencing Nigeria’s business cycle – oil production, oil prices and policymaking, we have seen substantial improvement in two. Oil production has improved to peak level of 2.2mb/d according to government officials, while oil prices have also stabilized above US$50.0/b with outlook still bullish. The combination of higher oil production and oil prices is positive for FX earnings, government revenue, oil GDP and ultimately aggregate growth. Consequently, we expect a sub-1.0% contraction in Q1:2017 but forecast GDP numbers to swing positive from Q2:2017 due to low oil GDP base in the last 9 months of 2016. Hence, we have revised our FY: 2017 growth forecast upward from an earlier flattish projection to 0.85%.
Yet, rekindling the animal spirit in investors and consumers to achieve high and sustainable growth requires a boost in confidence which at the moment remains ebbed by FX liquidity challenges amidst other structural constraints. February PMI data released by the CBN earlier in the week is a pointer of the subsisting weak level of confidence in the economy.

Manufacturing and Non-Manufacturing activity of the private sector fell for the second consecutive month at a faster rate with the indicators declining from 48.2 and 49.4 in January to 44.6 and 44.5 respectively in February.

Manufacturing production level fell in the month (from an expansion in January), while new orders, employment level and inventories declined at a faster rate. Non-manufacturing business activity, inventory level, level of employment and new orders also declined. The data reinforce our conviction that despite rebound in some key cyclical growth drivers, policymaking (fiscal and monetary) could remain the major downside risk to growth in the short to medium term.

Global Market Review and Outlook
Sentiment in the global equities markets under our coverage was mixed this week as the dollar slid on Friday but stayed on track for a W-o-W gain on growing anticipations that the U.S. Federal Reserve will raise interest rates at its mid-March meeting. All indices in the developed market closed higher as the US S&P rose 0.6% W-o-W while the NASDAQ recorded 0.3% W-o-W gains. The UK FTSE was up 1.6% W-o-W.
In the Euro-Asian region, performance was largely bullish as all indices closed northwards save for the Hong Kong HANG SENG which depreciated 1.7% W-o-W. European equities were led by gains in banking and mining stocks with the France CAC advancing the most, up 3.0% W-o-W while the German DAX followed with a 1.9% W-o-W uptrend. Similarly, the Japan Nikkei close 1.0% higher.
BRICS markets recorded a bearish week as all indices closed in the red save for the South African FTSE which added 0.1% W-o-W. Conversely, the Russian RTS topped decliners, shedding 2.1%W-o-W while the China Shanghai followed suit, losing 1.1% W-o-W. Similarly, the Brazil IBOVESPA and the Indian BSE also slid 0.6% and 0.2% W-o-W.
African markets posted mixed performance with 2 indices closing higher and two lower. The Egyptian EGX and Ghana GSE rose 0.6% apiece while the Kenya NSE tumbled 2.0% W-o-W. Contrary to the previous week, the Nigerian All Share Index was unable to sustain gains as it recorded a 0.9% loss W-o-W on account of DANGCEM.

Equities Market Review and Outlook
Unable to sustain previous week’s uptrend, the All Share Index (ASI) was down 0.9% W-o-W dragged by decline in DANGCEM which fell 5.0% despite FY: 2016 earnings published during the week. The index trended southwards on all trading days of the week save for Monday and Friday.

ASI rose 0.5% on Monday following an exciting FY: 2016 result submitted by ZENITH which triggered a rally in Tier-1 lenders. ZENITH’s gross earnings advanced 17.4% Y-o-Y to N508.0bn while PAT rose 22.7% Y-o-Y to N129.7bn. YTD loss settled at -6.3% while market capitalization depreciated N82.5bn to close at N8.7tn. Activity level improved as average volume and value traded jumped 82.8% and 41.3% to 277.5m and N2.7bn respectively.
During the week, a mixture of largely impressive FY: 2016 earnings submitted by DANGCEM(Gross Revenue and PAT grew 25.1% and 2.9% Y-o-Y to N615.1bn and N186.6bn respectively) as well as a “not-so-surprising” Q4:2016 GDP report published by the NBS, which confirmed Nigeria’s 2016 GDP to have contracted 1.5% Y-o-Y, left sentiment for equities soft by mid-week.

Meanwhile, NESTLE’s FY: 2016 result released on Thursday echoed overall weakness in the economy as a 20.3% Y-o-Y growth in gross revenue to N181.9bn was more than offset by a 66.6% decline in PAT to N7.9bn. The Company however declared a N10.00 dividend for the reporting period.
Performance across sector was largely bullish, save for the Industrial Goods Index which closed southwards, down 2.3% as a result of sell offs in DANGCEM (-5.0%) and PAINTCOM(-4.6%). On the flip side, the Oil & Gas index bounced back from last week’s decline, with a 4.5% W-o-W gain on account of bargain hunting in SEPLAT (+8.1%) and OANDO (+5.3%).

The Banking and Consumer Goods indices added 0.8% apiece owing to gains in GUARANTY(+3.1%), UBA (+2.0%), NESTLE (+10.2%) and VITAFOAM (+9.9%) while the Insurance index advanced 0.4% against the backdrop of declines in AIICO (+9.1%) and NEM (+2.5%).
Investor sentiment improved, as market breadth settled at 1.0x – from 0.5x in the previous week following 23 stocks that advanced against 22 declining stocks. The gainers’ chart was topped by NESTLE (+10.3%), OKOMUOIL (+10.2%) and VITAFOAM (+9.9%) while CADBURY (-13.3%), 7UP (-10.8%) and TRANSCORP (-8.0%) led the list of laggards. We expect the performance to be shaped by further influx of corporate earnings releases in the coming week.

Money Market Review and Outlook
Rates in the money market traded within a band of 13.1% -16.2% for Open Buy Back (OBB) and 14.1% – 17.3% for Overnight (O/N) rate as liquidity levels remained tight during the week. On Monday, the OBB and O/N rate settled at 12.7% and 13.3%, lower than the previous Friday as liquidity levels improved to N73.8bn (from a negative position of –N45.6bn on Friday).

The CBN auctioned OMO bills on Monday offering a total of N60.0bn. Of the N60.0bn on offer, only N16.3bn was subscribed while N15.8bn was allotted. Our view is that lesser allotment relative to subscription is tied to higher marginal rates quoted by investors. To keep liquidity in check, the CBN auctioned OMO on all days save for Wednesday. OBB and O/N settled at 16.7% and 17.3% respectively on Friday, up 3.6% and 3.3% W-o-W.
Activity in the T-Bills market opened the week soft as investors awaited primary market auction slated for Wednesday. Accordingly, average yield steadied at 18.6% from Monday to Wednesday. A total of N310.2bn worth of T-Bills was rolled over at the auction on Wednesday, and investors continued to show strong appetite for these instruments which were all over-subscribed. Average yield settled at 19.1% on Friday, up 2.2% W-o-W.
In a circular released by the DMO during the week, the minimum amount required for participation in T-Bills PMA was revised from N10, 000.0 to N50.0m naira. We believe this could potentially slow activities in the market.

Foreign Exchange Review and Outlook
Following the implementation of the New CBN directive last week, parallel market rate appreciated to N455.00/US1.00 on Monday from N460.00/US$1.00 the previous Friday. The local unit further improved to N450.00/US$1.00 on Tuesday as the CBN continued its intervention to the official market to fulfil bids for Personal and Business Travel Allowance, School fees as well as Medical and Tourism Allowance. Interestingly, this trend was reversed on Thursday as street rates depreciated to N458.00/US$1.00 and to N465.00/US $1.00 on Friday. At the official market, rates marginally improved from N305.50/US$1.00 on Monday to N305.25/US$1.00 on Friday.
Total value of open contracts at the FMDQ OTC FX Futures market settled at US$3.96bn similar to the prior week. The APRIL 2017 instrument remains the most subscribed at US$0.8bn of the US$1.00 on offer for the instrument. Since the introduction of the market in 2016, no instrument is yet to be fully subscribed and as such the liquidity need for which the market was created is yet to be fully realised.
We expect official market rates to continue to trade within a tight band as the CBN sustains its intervention program, parallel market rate is however expected to pull southwards until demand and supply dynamics establishes new short term rate.

Bond Market Review and Outlook
Activities in the local bonds market remained soft this week as investors’ concentrated on shorter term money market instruments. Nonetheless, benchmark bond yields trended southward, with fair buy interest observed during the week (save for Monday when average yield rose 13bps). Average bond yield across benchmark instruments opened the week at 16.3% and had dipped to 16.2% by Thursday, before settling at 16.2% at the end of the week, indicating a flat W-o-W performance. We expect the scheduled commencement of the FGN savings bonds on March 13 2017 to deepen retail penetration and involvement in the local bonds market and also buoy activity level in the market.
Contrary to last week when positive sentiment filtered across Sub-Saharan African sovereign Eurobonds, performance was mixed this week.

The re-pricing of instruments led to an increase in yields on the Nigerian, Ghanaian and South African sovereign bond instruments whilst the Gabon, Senegal, Ivory Coast and Zambian sovereigns enjoyed buy sentiment. Nonetheless, Nigeria’s FGN 2023 Eurobond remains the best performing sovereign Eurobond with a YTD return of 5.5%.
Similarly, performance of the Nigerian corporate Eurobonds was mixed as yield fell on the ZENITH 2019 (down 47bps W-o-W) and FIRST BANK 2020 (down 12bps W-o-W) instruments. All Access Bank Plc’s instruments enjoyed positive sentiment with yield on ACCESS 2017, ACCESS JUN 2021 and ACCESS OCT 2021 declining 32bps, 46bps and 45bps respectively.

On the flip side, sell sentiment was apparent on the FIDELITY 2018 (up 8bps W-o-W), GUARANTY 2018 (up 12bps W-o-W) and DIAMOND 2019 (up 29bps W-o-W). The DIAMOND 2019 and ACCESS 2017 Eurobonds remains the best & worst performer amongst the Nigerian corporate Eurobonds with YTD return of 13.2% and -0.1% respectively.

Afrinvest Research

UN Security Council Visits Nigeria on Fact-finding Mission

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05/03/2017

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As part of its mission to the countries of the Lake Chad Basin (Cameroon, Chad, Niger, Nigeria), the United Nations Security Council (UNSC) will be visited Nigeria yesterday and today (Maiduguri and Abuja).

The mission to Nigeria is aimed at enabling the UN Body get first-hand information on the various issues affecting the country. This will be the first time the Council is visiting Nigeria.

With the on-going crisis in the North East and other challenges faced by the country, the delegation will use the mission to engage with Federal and State Authorities, actors on the ground supporting national response efforts and visit selected affected population.

Recession: MainOne Keeps Nigerian Businesses Profitable with Data/Cloud Solutions

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05/03/2017

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For companies in Nigeria currently battling the recession, the challenges are slowing sales and reduced earnings due to spiraling costs from high inflation and forex rates. To manage cash flows, businesses may have had to reduce or halt spending totally.

However, the companies that will come out of the recession stronger must master the delicate balance between cutting costs to survive today and investing to grow tomorrow. According to a survey by the Harvard Business Review, companies that deploy a specific combination of conservative and progressive strategies have the highest probability—37%—of breaking away from the pack.

These companies reduce costs selectively by focusing more on operational efficiency than their rivals do, even as they invest comprehensively in the future by spending on marketing, R&D, and new assets. This multipronged strategy is believed to be the best approach to surviving a recession and growing stronger into the future.
How can businesses enhance their operational efficiency, while investing selectively? What options does digital technology offer African Enterprises? What impact does outsourced technology have on businesses, especially on cost-savings and efficiency? How is colocation and cloud computing a business optimisation strategy?
West Africa’s leading connectivity and data center services company, MainOne notes that managers must aim at achieving the right balance between the technologies they want and the ones they need.
MainOne has outlined some of the ways outsourced data center and cloud services have helped their clients to maintain long term profitability:

Adopting digital technologies is a cost effective strategy to optimize processes and drive new and improved measurable business results.
Outsourced data center and cloud services speeds up a company’s time to market and improves service delivery.
Companies can be reassured that their data is protected according to the highest standards thus minimizing their risk.

Leading enterprise businesses in Nigeria have confirmed how MainOne’s data center service has helped reduce their operational and capital expenses while enhancing flexibility and agility.

About MainOne:
Few companies in West Africa can provide the right data center services for always-on enterprise businesses today; MainOne is the clear leader in Nigeria, offering secure and reliable outsourced data center services for enterprises in-country.

MainOne’s MDXi Tier III Data Center is the only Data Center in Nigeria certified to PCI DSS, ISO 9001, ISO 27001 and SAP Infrastructure standard. MainOne’s MDXi Data Center also recently announced a partnership with the Nigerian Internet Exchange (IXPN) which will boost internet performance in Nigeria by enabling traffic originating and terminating on any network in Nigeria to remain in-country.

‘Aviation Can Drive Economic Growth via Govt Support’

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05/03/2017

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The International Air Transport Association (IATA) urged governments to support the vital role aviation plays in connecting people and commerce around the globe.

“Our world has grown much wealthier through trade and travel. Air travel liberates people to live better lives and makes our world a better place,” said Alexandre de Juniac, IATA’s Director General and CEO. In the US, the aviation sector contributes $680.1 billion dollars to GDP and supports 6.2 million jobs. “Aviation is the business of freedom and we must continue to work together to make it so,” said de Juniac.

Looking to the agenda for the Trump Administration, de Juniac called for a reduction in the tax burden on aviation and air travelers, and a new approach to the provision of air traffic services.

Taxes:

“The tax burden needs to be reduced. Airlines for America estimates that taxes account for more than a fifth of the cost of the average domestic ticket. In a country as big, beautiful and full of opportunity as the US, why have a taxation policy that discourages travel? Travel stimulates the economy with tourism dollars and business development. We hope that the Trump Administration will create jobs by dramatically reducing the tax burden on travel.”

Air Traffic Services:

“Airlines and their passengers suffer the impact of the unpredictable federal budget process on the Federal Aviation Administration’s (FAA) provision of air traffic services. The US is falling behind in the introduction of new and more efficient technology. Now is the time to move forward with innovation in the provision of air traffic services. IATA supports the creation of an independent, corporatized non-profit entity to manage US skies. IATA hopes that this will be one of the achievements of the Trump Administration and the 115th Congress.”

De Juniac also urged the Trump Administration to return the country to the principles of airline deregulation.

“The Airline Deregulation Act of 1978 unleashed competition and spurred innovation by letting market forces drive commercial decisions. And today consumers benefit from more travel choices than ever. Deregulation has benefited travelers, the US economy and the competitiveness of its airlines. I hope that the Trump Administration will keep that in focus.”

De Juniac made his remarks at the US Chamber of Commerce 2017 Aviation Summit on 2 March, where he also focused more broadly on the need for industry and government to align to support innovation. “Delivering the benefits of an ever safer, efficient and sustainable air transport system in the face of a doubling of demand by 2035 will require quick, constant innovation. At the industry level, governments play a particularly important role as partners and regulators.”

He highlighted three areas where airlines and governments need to innovate together:

Safety
“Safety is our top priority, which is why flying is the safest way to travel. Innovation plays a role in helping make it safe and it is most successful when industry and government work together. The IATA Operational Safety Audit (IOSA), which is a requirement for membership in IATA, is an example of such innovation. IATA worked with government safety regulators, including the FAA, to develop IOSA. And it is always evolving to make sure that the latest global best practices and technology advancements are incorporated into IOSA’s 900+ standards,” said de Juniac.

Security
“Security is the responsibility of states but the industry is playing a role. The threat is real and is constantly evolving. We must innovate to be more effective and more efficient,” said de Juniac.

IATA has partnered with Airports Council International (ACI) to promote Smart Security, which aims to reduce the hassle factor while making security more efficient and effective. Last year, IATA and ACI signed a Memorandum of Understanding with Hartsfield-Jackson Atlanta International Airport to deploy Smart Security concepts.

“Partnership with governments is critical for the success of Smart Security. And collaborative innovation is the only way to stay a step ahead of those intent on doing aviation harm. It is the only way to secure our vulnerabilities—landside, overflying conflict zones, insider threats or our IT infrastructure,” said de Juniac.

Distribution
The New Distribution Capability (NDC), launched by IATA and supported by industry—is an innovation that will bring greater transparency to the air travel shopping experience when using a travel agent or online site.

Based on XML, rather than the pre-internet standard common today, NDC standards will enable airlines to deliver much more information about their products through the agency channel.

But a regulation proposed in the last days of the Obama Administration to require airlines to display certain ancillary information through the travel agent channel could have the unintended consequence of locking consumers into the older, less flexible and less transparent distribution model.

“I hope Secretary of Transportation, Elaine Chao will take a fresh look at whether the US government should be dictating to airlines how and where they must display their products,” said de Juniac.

Linkage Assurance Strengthens Tie with Brokers for Bigger Market-Share

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02/03/2017

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Capture — L-R: Sola Tinubu, Deputy President, Nigerian Council of Registered Insurance Brokers (NCRIB); Bola Onigbogi, Vice President, NCRIB; Pius Apere, MD/CEO. Linkage Assurance Plc; Emmanuel Okunoren, President, NCRIB; Feyisayo Soyewo, Past President, NCRIB, and Joyce Ojemudia, GM, Marketing, Linkage Assurance Plc during the February 2017 members evening of NCRIB hosted by Linkage Assurance Plc in Lagos.

Determined to increase its market share and compete effectively for growth, Linkage Assurance Plc has moved to strengthen its relationship with insurance brokers.
Brokers according to industry statistics control over 70 percent of the market share, particularly in the corporate, private and public sector businesses.
The Linkage chief executive says coming to work with brokers more closely is in line with its vision to increase visibility, deepen penetration and provide insurance to nook and crannies of the country.
Dr. Pius Apere, Managing Director, Linkage Assurance Plc speaking at the February 2017 Members Evening of the Nigerian Council of Registered Insurance Brokers (NCRIB) said brokers have a big role to play in helping to ensure that insurance takes deeper root in the economy of Nigeria.

L-R: Sola Tinubu, Deputy President, Nigerian Council of Registered Insurance Brokers (NCRIB); Bola Onigbogi, Vice President, NCRIB; Pius Apere, MD/CEO. Linkage Assurance Plc; Emmanuel Okunoren, President, NCRIB; Feyisayo Soyewo, Past President, NCRIB, and Joyce Ojemudia, GM, Marketing, Linkage Assurance Plc during the February 2017 members evening of NCRIB hosted by Linkage Assurance Plc in Lagos.

Apere said insurance sector is the backbone of any economy, and that without insurance no economy can grow because insurance sector help other business to survive, particularly in a period of economic recession.
“Without insurance, many businesses will die in this recession, that means we have a role to play by ensuring that we help businesses remain on the part of growth and sustainability, Apere stated.
The Linkage boss further stated that the company recently launched seven new products targeted at low income earners to enable them to manage their risks and enhance their standard of living. There is economic recession, so these products have been considered to alleviate the plight of ordinary citizens such that they are affordable with a lot of benefits for individual and small businesses.
While thanking the brokers for their patronage in the past, he urged them to support the company to have an exciting and beneficial journey in 2017 and going forward.
Among the products recently launched by the Company are Linkage Purple Motor Plus; Linkage Third Party Plus; Linkage Shop Insurance; Linkage Event Insurance; Linkage Estate Insurance and Linkage SME Comprehensive.

Ecobank Vital to Needbank’s African Growth Strategy

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02/03/2017

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South Africa’s Nedbank says that Ecobank Transnational Incorporation (ETI) remains vital to its expansion elsewhere on the African continent despite booking a $293 million write-down on the value of its stake in the sub-Saharan lender. Ecobank has operations in nearly 40 countries outside its home market. Nedbank Chief Executive, Mike Brown, told reporters ““It’s obvious that we would be disappointed. But we still, however, remain optimistic on the long-term growth prospects in the rest of Africa.”
ETI’s operations in Central and West Africa are exposed to some economies that have been pressured by the commodity price slide and unfavourable currency swings since Nedbank bought a 20 per cent stake for $500 million in 2014.
Brown forecast another tough year for Ecobank, which makes the bulk of its earnings in Nigeria, before improving in 2018 and beyond. Nigeria, Africa’s biggest economy, has been hit by a currency crisis and its first recession in 25 years following the slide in oil prices since the middle of 2014.
Nedbank, a subsidiary of Anglo-South African conglomerate, Old Mutual, said its diluted headline earnings per share rose 4.8 per cent to 2,350 cents in 2016, the slowest pace of growth since 2009 when its EPS fell by nearly a third. Headline EPS is the main measure of profit in South Africa as it strips out certain one-off items.
Nedbank also said its results were affected by slack demand for loans as slowing economic growth and higher interest rates hit consumption and investment spending across Africa.
Brown forecast at least 7 per cent growth in 2017 annual headline EPS, saying a peak in interest rate cycle in South Africa would lift demand or loans.
Old Mutual is in the middle of an overhaul in which it will carve itself into four parts and cut its 54 per cent stake in Nedbank to a minority holding to simplify its structure.
Nedbank competes with Standard Bank, FirstRand, Barclays Africa and Capitec.

Red Star Commences Food Delivery Services

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02/03/2017

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Red Star Express Plc, on March 1^st, 2017 commenced a food delivery service through its subsidiary, Red Star Support Services. Aptly known as the “Express Food Delivery Services”, the product has been designed to create a seamless process for people with time constraints and limited opportunity to order for breakfast, lunch or even dinner at the comfort of their offices or homes with guaranteed delivery within the shortest period.

At the click of a button, you can make orders for any food of your choice (from various eateries and Restaurants) without initial payment and then wait for just 10 minutes of ordering, you get your order right at your door step, then you can make payment once the food is delivered.

Already, some of the prominent eateries and fast food companies in Lagos are on board as they have the EFDS delivery men stationed around their delivery-request hubs on the Island and on the Mainland.

The EFDS, as a product, is divided into two forms; the Corporate account and Individual orders. The Corporate accounts include requests from fast food outlets, restaurants and hotels, while the individual orders include requests from private persons who simply call the EFDS office and make order from participating restaurants of their choice.

Red Star Express Group is a premium logistics solution provider in Nigeria with an unrivalled local network coverage and a large market share in the domestic and international market. It enjoys a domestic strength of over 240 offices in Nigeria, delivers to additional 1,800 communities, with over 2,400 highly trained personnel and over 600 delivery vehicles in its fleet.

The company has four business units including The Red Star Express which is a licensee of FedEx, the world’s largest express transportation company with over 650 aircrafts and more than 250 delivery destinations globally.

FedEx has consistently been rated among the top 10 most admired companies in the world over the past 10 years. Red Star Express has four subsidiaries – Red StarFreight, Red Star Logistics and Red Star Support Services.

Adeosun: DBN Will Catalyse Growth of SMEs in Nigeria

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01/03/2017

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The Minister of Finance, Mrs. Kemi Adeosun has stated that the Development Bank of Nigeria (DBN) is being positioned to galvanise the Small and Medium Scale Enterprises sector for the overall development of the nation’s economy.

According to her, the present administration is aware of the role of SMEs in national economy, hence the resolve to position the DBN as a catalyst for the development of the SMEs. The wide range of SMEs is a reflection of our economic diversity.

The Minister, who spoke during a Board/Management/Development partners’ retreat of the DBN in Abuja, also assured the Board that the Federal Government is ready to provide support for the new development financial institution.

The DBN had convened its Development Partners and incoming management team and Board of Directors for an inaugural strategy retreat, in order to ready itself for immediate operation upon the issuance of its licence by the Central Bank of Nigeria (CBN).

She decried the present situation where SMEs account for 45 per cent of the Nigeria’s Gross Domestic Product (GDP) but just 10 per cent of bank credit.

She pointed out that currently, Nigeria’s financing of MSMEs lagged significantly behind other countries, including Brazil (63 per cent), Ghana (36 per cent), China (30 per cent), Kenya (24 per cent), and South Africa (21 per cent).

However, the Minister who disclosed that the operating licence for DBN is expected imminently also believed that through the activities of the DBN, some of the problems currently discouraging the growth of the SMEs sector would be effectively tackled.

She stated that DBN would lend to microfinance banks, which will in turn develop specific products for specific markets at a lower interest rate than currently available to SMEs.

She stated that the Finance Ministry is in discussion with the Central Bank of Nigeria on the need to use the Development Bank as a vehicle for any of its subsequent SMEs intervention.

The Development Bank of Nigeria (DBN) is a wholesale financial institution, which aims to increase access to finance for Micro, Small and Medium Enterprises (MSMEs) through eligible financial intermediaries (“participating financial institutions”).

The DBN will have access to US$1.3bn (N396.5 billion), which will be provided by the World Bank (WB), KfW (German Development Bank), the African Development Bank (AfDB) and the Agence Française de Development (French Development Agency).

Nigeria’s 2016 GDP Contracts 1.5% …NSE ASI Down 17bps

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01/03/2017

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The National Bureau of Statistics (NBS) released its Q4:2016 GDP report yesterday. In line with expectation, Nigeria’s FY: 2016 GDP contracted 1.5% Y-o-Y, beating our projection of -1.6% for the year. Despite the continued rally in select financial services stocks, the Nigerian equities market closed lower amid more FY: 2016 earnings releases. The All Share Index slid 0.2% to 25, 329.08points while YTD loss worsened to 5.8%. Major drags to performance were NIGERIAN BREWERIES (-2.1%), GUINNESS (-3.9%) and FORTE (-5.0%) while market capitalisation trimmed N15.3bn to N8.8tn. Activity level strengthened as volume and value traded rose 74.5% and 43.7% to 444.5m units and N3.6bn respectively.

DANGCEM Releases Impressive FY: 2016 Result
Performance across sectors remained mixed today. The Insurance index advanced the most, up 0.3% on account of AIICO (+3.4%) and CONTINUSRE (+1.0%). Similarly, the Oil & Gas and Banking sector indices advanced 0.2% apiece. On the flipside, the Consumer Goods index declined 1.4% following sell offs in GUINNESS (-3.9%) and NIGERIAN BREWERIES(-2.1%). The Industrial Goods index closed flat for the second consecutive trading session notwithstanding the impressive FY: 2016 result submitted by DANGCEM. The Cement maker’s Gross Revenue and PAT grew 25.1% and 2.9% Y-o-Y to N615.1bn and N186.6bn respectively and proposed an N8.50 dividend per share for the reporting period.

Investor Sentiment Strengthens
Market breadth (advancers/decliners ratio) improved to 1.3x (from 1.0x yesterday) as 15 stocks advanced while 12 declined. UACN (+5.0%), OKOMUOIL (+5.0%) and VITAFOAM (+4.9%) topped the gainers’ list while FORTE (-5.0%), HONYFLOUR (-4.8%) and TRANSCORP (-4.2%) led the losers’ chart. In line with our equity recommendation report published earlier today, we see significant 12-month upside potentialin ACCESS, UBA, ZENITH, MANSARD, DANGCEM, DANGSUGAR, NESTLE and CONTINSURE.

NASD OTC Exchange Market Activities
In the NASD OTC exchange, the total volume of trades fell 78.2% to settle at 152,943 units while total value fell 91.5% to N7.6m. CSCS PLC was the most traded stock, representing 65.3% total volume traded.

Stock Market Statistics: Tuesday, 28th February, 2017

Market Cap (N’bn)	8,765.9
Market Cap (US$’bn)	28.7
NSE All-Share Index	25,329.08
Daily Performance %	(0.2)
Week Performance %	0.3
YTD Performance %	(5.8)
Daily Volume (Million)	444.5
Daily Value (N’bn)	3.6
Daily Value (US$’m)	11.9

Reps Commend NEXIM over Ladgroup Shea Butter Initiative

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01/03/2017

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“…the interest of NEXIM Bank in Shea Nut processing for export was borne out of the very high demand for Shea Butter with the impressive potentials for foreign exchange revenue stream as well as massive job creation at various levels of its value chain.” – Bashir Wali

The House of Representatives’ Committee on Banking & Currency led by its Chairman, Honourable Sir Jones Chukwudi Onyereri visited the Ladgroup Limited as part of their ‘Oversight Functions’ to Ladgroup Limited in Ikenne, Ogun State.

Ladgroup is the foremost indigenous Nigerian conglomerate with a state of the art Oil Mill Extraction factory, which is the largest Shea Nut processing factory in Africa, with an intake capacity of 40,000 Metric tons per annum.

The factory is dedicated to sourcing of Shea Nuts and processing them into Shea Butter of the highest quality, for sale to both domestic and export markets, but with a special bias for the export market. The firm has set its target on major European importing companies in the Confectionary/ Chocolate industry and Cosmetics/ Pharmaceutical industry based in Netherlands, Denmark, Sweden and the UK that import well over 95,000 MT annually.

Commending the NEXIM Bank for its relentless contribution to the Nigerian non-oil export sector, especially in funding factories such as Ladgroup Limited, Hon. Sir Jones Onyereri stated that “…the current economic recession facing the country has opened our eyes to the immense opportunities and abundant blessings God has heaped on Nigeria, not just in oil and gas, but more especially in agriculture and solid minerals….”

He called on the Federal Government to increase funding support to institutions like NEXIM Bank, promising that the House Committee on Banking and Currency, which he is the Chairman, would continue doing all within its jurisdiction and mandate to ensure that such funds are applied very judiciously.

The Acting MD/CEO, Mr. Bashir Wali said NEXIM Bank had in March 2015 approved the sum of $5,786,163.00 (Five million, seven hundred and eighty six thousand, one hundred and sixty three US Dollars) only to Ladgroup Limited to set up a Shea Nut Processing factory. The facility was made up of Equipment Finance of $2,786,163.00 and Working Capital Facility of $3,000,000.00 and has enabled the Company to purchase and install a Shea Butter Refining Unit, a step down transformer and augment its working capital base.

Addressing the occasion, Wali stated that “…the interest of NEXIM Bank in Shea Nut processing for export, was borne out of the very high demand for Shea Butter with the impressive potentials for foreign exchange revenue stream as well as massive job creation at various levels of its value chain.”

Citing available statistics, Wali said that nearly 2 billion Shea trees grow naturally on parklands in 21 African countries stretching from Senegal to South Sudan with more than 16,000,000 women living in rural communities individually collecting the fresh fruits and the kernel which they process to extract a healthy vegetable oil known as “Shea Butter.” With approximately 600,000 tons collected each year, the industry provides a critical source of jobs and incomes to millions of often poor and underserved communities.

Responding to concerns on the viability of the Bank’s intervention, Wali stated that the global demand for Shea Butter is worth about $10billion and is projected to be more than $30billion by 2020, hence the interest of NEXIM in providing funding for increased proactive measures to reposition agricultural products such as Shea as part of its non-oil export sector interventions in the agro-processing sub-sector. According to him, it has been estimated that over 680,000 metric tons of Shea Nuts are produced annually in West Africa, with about 56% of the Nuts exported, while the remaining is consumed locally. Available data shows that Nigeria is the world largest producer of Shea with the wildly grown Shea trees predominant in 21 states across the country.

This accounts for over 53 percent (or 370,000 MT) of the production in West Africa as confirmed by the reports of the Central Bank of Nigeria (CBN) and Oil Seeds Association of Nigeria (OSAN). Sadly, nearly N345 million is lost in the smuggling of Shea products out of the country every year.

The Chairman, Prince (Dr.) B. A. Onafowokan, expressed immense appreciation to NEXIM Bank for the quality of loan given to Ladgroup Ltd; and also thanked the House Committee on Banking & Currency for their ‘Oversight Function’ stating that more of such activities is required to curtail misapplication of such funds provided by the Government to assist local entrepreneurs keen on manufacturing for export.

According to him, “…Ladgroup’s relationship with NEXIM Bank has been very cordial from the onset; and the level of professionalism displayed by the Bank and its staff in disbursing the loan underscores its commitment to contributing to Government’s effort in diversifying the revenue base, especially through promotion of export-oriented investments in the non-oil sectors.” Continuing, he indicated that the Company will create at least 300 direct jobs and more than 600 indirect jobs; and earn USD5million in the first year, and USD100million in the next 5 years. He disclosed that in addition to its traditional uses such as cosmetics, soap, moisturizer, oil, wax, ointments and candles, Shea Butter is commonly used in the production of Cocoa Butter equivalents or improvers; and up to 5% content by weight is allowed under EU regulations in chocolate, other confectionaries and margarine, creating even larger international markets for Shea products.

Besides the Ladgroup Limited, NEXIM Bank has also provided working capital for Shea Butter processing to Karite Oil Limited (formerly Fagow Oil & Gas Nigeria Limited) in Akure, Ondo State. The Company has a 20-22MT Shea Butter processing plant.

About NEXIM Bank –

The Nigerian Export-Import Bank was established by Act 38 of 1991 as an Export Credit Agency with the broad mandate of promoting the diversification of the Nigerian economy and deepening the external sector, particularly the non-oil export sector through the provision of credit facilities in both local and foreign currencies; risk-bearing facilities through export credit guarantee & export credit insurance as well as business development and financial advisory services etc.

In pursuit of its mandate of promoting export diversification and deepening the non-oil export sector, the Bank’s current strategic initiatives are targeted towards boosting employment creation and foreign exchange earnings in the Manufacturing, Agro-processing, Solid Minerals and Services (Tourism, Transportation and Entertainment) sectors. NEXIM Bank embraces the exchange of information on best practices in trade and project finance as an important value addition to its operations.

Nigeria Applauds Take-off of WTO Trade Facilitation Agreement

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01/03/2017

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Nigeria received with great excitement the announcement by Roberto Azevêdo, Director General of the World Trade Organisation of entry into force of the Trade Facilitation Agreement (TFA) on February 22, 2017.

Mr. Olusegun Awolowo, Executive Director/CEO of the Nigerian Export Promotion Council said:

“This is particularly gratifying as Nigeria submitted its ratification earlier in January through the Honourable Minister of Industry, Trade and Investment, Dr. Okechukwu Enelamah. The ratification of the TFA is indeed a major milestone for global multilateral trade. I am optimistic that Nigeria would go ahead to domesticate and implement the agreement to the letter.”

He said the NEPC expects remarkable outcomes for international trade through TFA, which aims to expedite the movement, release and clearance of goods including goods in transit. It will reduce bureaucracy at the borders for faster, cheaper and easier trade and is expected to increase trade and investment.

The agreement promotes trade by establishing harmonised rules to further expedite the movement, release and clearance of goods crossing borders, including goods in transit. It offers opportunities especially for SMEs to engage in formal export of goods, which have so far, been informally traded across borders. With TFA, a larger number of exporters to partake in global value chains, thereby enabling all businesses to tap into the huge potentials of trade.

Of particular importance for non-oil export is the commitment to accept electronic documentation (SW), test procedures and method of handling perishable/rejected goods.

For Nigeria, the much-advocated National Single Window (NSW) initiative would bring about faster services at the borders for both imports and exports. It will also ensure correct revenue collection and create room for transparency in governance, better public service and modernization through e-legislation, thus creating a win-win situation for both government and business.

‘NEPC is therefore committed to support and work closely with the relevant government agencies, private sector and international organizations to ensure full implementation of the Agreement. We will maximise the benefits of TFA especially to make export trade the catalyst for achieving national economic turn-around for sustainable development, enhanced annual GDP growth job creation, higher incomes, improved welfare, reduced trade costs, and ultimately landmark improvements to the ease of doing business index for the country. It is hoped that many small businesses that hitherto have found it impossible to trade internationally due to complex regulatory requirements will henceforth be able to be part of global trade which leads to sustainable growth; and growth that results in prosperity.’

Cross-border e-Commerce Target $900bn in Sub-Saharan Africa

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01/03/2017

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Cross-border online retail predicted to grow at twice the rate of domestic e-commerce (CAGR: 25%) until 2020

Retailers can grow 60% faster with a premium service offering

DHL Express, the world’s leading international express services provider, has published research highlighting the significant growth opportunity for retailers and manufacturers with an international online product offering.

The report – The 21st Century Spice Trade: A Guide to the Cross-Border E-Commerce Opportunity – looks in detail at the markets and products that offer the highest growth potential, the motivations and preferences of customers making international online purchases and the success factors for online retailers that wish to expand overseas. It focuses in particular on the opportunity for premium products and service offerings, with higher basket values accounting for a significantly higher proportion of orders in cross-border transactions.

The report reveals that cross-border e-commerce offers aggregate growth rates not available in most other retail markets: cross-border retail volumes are predicted to increase at an annual average rate of 25% between 2015 and 2020 (from $300 Billion to $900 Billion) – twice the pace of domestic e-commerce growth.

Online retailers are also boosting sales by 10-15% on average simply by extending their offering to international customers. An additional boost comes from including a premium service offering: retailers and manufacturers that incorporated a faster shipping option into their online stores grew 1.6 times faster on average than other players.

“Contrary to what many retailers think, cross-border shipping is actually simple and retailers in Sub Saharan Africa are perfectly positioned to take advantage of international opportunities. ‘Brand Africa’ is something that has increased exponentially in popularity in recent years and it’s time for retailers to remove the boundaries and open up their business to seamless international trade. Often, retailers choose not to promote their businesses internationally, and worse yet, will turn down international sales interests due to the misconception that it’s too difficult to manage and deliver,” says Hennie Heymans, CEO for DHL Express Sub Saharan Africa.

“Globally, our experience is that virtually every product category has the potential to upgrade to become premium, both by developing higher quality luxury editions and by offering superior levels of service quality to meet the demands of less price-sensitive customers. The opportunity to ‘go global’ and ‘go premium’ is available to retailers in all markets and our global door-to-door time definite network is well-positioned to support retailers looking to develop a premium service offering or directly reach new international markets without the need to invest in distribution or warehousing. In Sub Saharan Africa, the opportunity for Intra Africa trade should not be ignored. ‘Going global’ does not only mean trading outside of the African continent, Africa is home to one of the world’s fastest growing middle class, with an appetite for quality products and services. There are also a number of trade blocs in place to support Intra Africa trade growth and retailers should take advantage of this captive market.”

The report is based primarily on research and in-depth interviews conducted by a leading global management consultancy, as well as more than 1,800 responses to a proprietary exporter survey of retailers and manufacturers in six countries.

It casts a light on the evolving face of e-commerce, with both supply and demand becoming more sophisticated Manufacturers are increasingly taking advantage of e-commerce to move to direct retail models – bypassing the ‘middleman’ and offering their products online to the end customer – and expect to grow 30% faster in cross-border e-commerce than other retailer groups. Customers in many markets are also becoming more discerning, citing product availability and trust, as well as attractive offers, as the motivating factors for shopping with overseas online retailers.

The main challenges highlighted by consumers to cross-border purchases relate to logistics, trust, price and customer experience. At the same time, online retailers can take a number of relatively easy steps to identify, cultivate and service demand from abroad.

The report noted that the e-commerce trend has given birth to a new eco-system of facilitators and off-the-shelf solutions (such as payment providers and programs that localize a website’s check-out experience for the visitor), helping retailers to adapt their offering to the digital world and to transact with customers in foreign markets.

Global logistics partners can provide support in identifying the right trade-off between centralized and local warehousing and fulfillment, while fast, reliable and flexible delivery options can be an important tool in turning speculative interest into long-term customer loyalty.

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