FOR THE RECORD: Unlocking The Potential of Tourism Industry in Africa

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19/10/2016

By Memory Dube

Tuesday, September 27, 2016 marks World Tourism Day, organised by the World Tourism Organisation which is a special United Nations agency dedicated to the promotion of responsible, sustainable and universally accessible tourism. World Tourism Day 2016 will be celebrated under the theme, “Tourism for All: Promoting Universal Accessibility”.

The theme for this year could not have been more apt, given the various sub-themes that it incorporates and what it means to actually ensure universal accessibility of tourism – and particularly, from an African perspective.

It is about getting the tourists to the attraction destination, but, on the flip side, it should also be about ensuring the participation and economic engagement of local communities in the tourism industry.

Looking at the tourism value chain, the potential and opportunities in tourism are endless as this is a very dynamic sector. However, harnessing the potential requires an awareness of the economic linkages and willingness to undertake the necessary policy actions and/or reforms to realize the opportunities.

The African Economic Outlook 2014 notes that tourism is among the three service sectors (together with financial intermediation and business services as well as retail – both of which are have linkages with tourism) in Africa that have massive potential for upgrading in both regional and global value chains. Despite the growth potential, the World Travel and Tourism Council reports that tourism in Africa is already contributing significantly to the economy, with travel and tourism accounting for 8.1% of the GDP in 2015 at USD 180.0 billion, at the same time generating 9,083,000 jobs directly in 2015, which accounted for 3.0% of total employment on the continent.

The graduation of countries like Botswana and Cape Verde from Least Developed Country (LDC) status to developing country, is argued to have been mainly facilitated by the growth and development of the tourism sector.

In considering the economic significance of the tourism sector in Africa, the following can be observed: it is a fast-growing and generally labour-intensive sector, with plenty of opportunities both for skilled and unskilled workers, and especially for women and the youth.

It is also a sector with massive linkage potential with other economic sectors, which, if realized, would encourage diversification of other economic sectors while ensuring the retention of tourism revenue, thus reducing leakage in the sector.

The tourism sector puts African countries at an advantage, particularly when considering Africa’s endowment with natural resources as well as its rich cultural heritage. The cultural heritage creates opportunities for small and medium enterprise (SME) development in small and rural communities.

The development of tourist towns can turn otherwise remote and isolated areas into commercial centres, competing with light manufacturing and attendant service sector development, thus creating more opportunities for local communities.

The sectoral linkages in the tourism value chain are very wide and diverse, for both direct and indirect linkages.

The figure below sets out in detail the various linkages, but, looking at the most basic and most direct linkages, the economic benefits of developing the tourism sector are very clear.

Transport infrastructure development, telecommunications, finance and energy are crucial as these facilitate backbone services for any sector, and are especially essential in the tourism sector to expand both regional and global value chains as well as reduce the costs of access to tourist destinations and services.

Looking at the accommodation aspect of the tourism industry, such industries as construction and manufacturing, agriculture, and food processing play a huge role as suppliers to the tourism industry. Add to that list the utilities, entertainment and art and craft industry. These are but some of the examples of the inter-industry linkages. It is quite clear that tourism is a low-hanging fruit when it comes to economic growth, employment creation and the improvement of social welfare, particularly as Africa struggles with industrialisation and other development challenges.

Accessing this low-hanging fruit has been challenged by a number of factors and a few will be highlighted here.

In its Doing Business 2016 report, the World Bank has given Sub-Saharan economies an average ranking of 143 out of 189 and this has to be improved. In the tourism sector, a conducive business environment is a catalyst for value chain participation and investment.

A difficult business environment punctuated by very high operational costs is partly responsible for keeping the African tourism sector relatively captive and producer driven, with the sector dominated by a few large developed country travel agencies.

Political instability, combined with the regional spillover effects of unrest is another challenge, although the region has made significant progress over the past few years, it still remains fragile. Poor infrastructure and limited connectivity is another issue, especially when it comes to backbone service sectors.

Linked to this, the high costs of road and air transport in Africa, mostly due to market restrictions, are particularly problematic and estimates are that even a moderate opening of the markets could lead to a 25% increase in the number of flights. ICT development is another challenge – access to information technology could assist with such functions and services as marketing, distribution, professional services and various other logistical arrangements that African service providers could undertake and which are currently dominated by international players.

The African Economic Outlook 2014 reports that a higher population of tourists to Sub-Saharan Africa (SSA) use tour operators from other parts of the world because of the complexities involved in making travel arrangements to Africa. Complex visa arrangements, as distinct from, and in addition to, high visa costs, is another barrier to growth in the tourism industry.

Dealing with the challenges above and others will ensure the development of the tourism sector and associated industries in Africa.

However, as stated above, such development also depends to a large part on governments taking the lead in developing the sector and particularly from a policy perspective. African governments need to deal with the regulatory barriers to services trade in their countries, particularly in the key service sectors of transport, communications and business services.

These services are integral to the development of the tourism value chains as well as to investment in the sector.Air transport restrictions in particular are a course for concern. Countries need to implement the Yamoussoukro Decision of 1999 which sought to liberalise air transport in Africa.

Liberalisation of the movement of people is another policy imperative, making it easier for skill to operate across borders as well as for tourists to travel. Some African countries, such as Zambia and Zimbabwe when it comes to the Victoria Falls, have a shared natural asset that is also a tourist attraction.

The importance of harmonised policies cannot be over-emphasised. Africa’s regional economic initiatives are an important vehicle for the achievement of harmonized policies and regulations.

Investment is another important element and governments need to work on policies and strategies that attract investment into the right economic activities and sectors, including the tourism sector, but also in other sectors that feed the growth and development of tourism.

To conclude, most of the interventions above could be seen to support the establishment of large business in tourism that could keep the sector captive. Making tourism sustainable and accessible to all is also about ensuring that the economic benefits trickle down to the communities and also have them involved in the tourism sector.

In Cape Verde, for example, even though tourism accounted for 20% of its GDP in 2014 and managed to integrate into global tourism value chains, there are gaps in the linkages between resort style-hotels and the local economy, which limits the benefits for the locals.

In addition, the World Bank estimates that by 2021, 75% of travelers in SSA will be from Africa. Translating this into a reality involves developing the tourism sector in a manner that is structured by the appropriate policies and regulations, with the improvement of the general welfare of the African people at its heart

Nigeria, 7 Others Plan Special Micro-Insurance Policies

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17/10/2016

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Nigeria and seven other African countries are considering some special policies for micro-insurance in order to speed up its development.

The other countries are Ethiopia, Egypt, Ghana, Kenya, Uganda, South Africa and Zambia.

Professor Festus Epetimehin, an insurance expert said at the 6th Inaugural lecture of Joseph Ayo Babalola University that some African countries are already making efforts to roll out measures and policies that will speed up the wide acceptance of micro-insurance.

Epetimehin whose lecture anchored on ‘Small but Big: Micro-insurance and the Reduction of Social Risk of Poverty’ said: “Currently, some African governments, such as those of Nigeria, Ethiopia, Egypt, Ghana, Kenya, Uganda, South Africa and Zambia, are in the process of considering special policies and regulatory frameworks to spur micro-insurance market development.”

Epetimehin further tasked African governments to learn from policy approaches at the global level, “Across the globe, many governments particularly finance ministries, financial sector regulators and insurance supervisors have recognised that expanding the insurance sector to include broader population segments can spur economic development and welfare.”

He said “the creation of a financial sector characterized by competition, market efficiency and outreach is on the development agenda of numerous governments in Africa. Enabling policies and regulations, along with effective supervision, facilitate the growth of private-sector involvement and enhance the distribution and quality of micro-insurance, he expatiated.”

He said South Africa is the only one so far that has taken definite steps to develop a special policy approach that has helped to improve access to insurance while a good number of governments are yet to take steps towards integrating the poor into the formal insurance sector.

He said the role of governments in insurance provision has undergone a fundamental change in the past decade. For years, governments were direct providers of insurance in many developing and emerging market countries.

Governments in the continent, he put forward should provide enabling environment which he defined as “the set of conditions that promote a sustainable trajectory of market development”

The conditions with which micro-insurance can thrive better, he mentioned, are factors that impact the operation of the market in a country, including the regulatory environment, infrastructure, and availability of information.

“The role of micro insurance as intervention which reduces poverty and the vulnerability of the community ex-post in the event of disaster becomes crucial. Micro insurance as a tool for risk transfer for the poorest community faces a lot of challenges which includes the literacy level of the community to understand and appreciate the importance of micro insurance.”

Governments, he added have increasingly regarded market-led micro-insurance as a serious option for making insurance markets more inclusive and extending their reach to low-income households.

“In many countries, areas such as health coverage for the destitute and agricultural insurance or pensions for the elderly poor are still covered by the government through social assistance such as cash transfers, direct public provision (public healthcare) or subsidised insurance schemes where the market does not reach (often the case with agricultural insurance.”

“The new paradigm is based on a shift towards the government serving as a facilitator of market development, including a clear development mandate for the insurance supervisor based on his role as a facilitator of financial access.”

Insurance regulators, he said, has a lot to do in providing an active balance of stability, soundness and market development that will ensure consumer protection and inclusion

At the same time, he asserted that stakeholders from both the private and public sectors should confirm that good policy solutions are significant in helping to spur and sustain growth while at the same time protecting consumers.

He said with the growing markets and new players coming in, sound regulatory responses to protect micro-insurance consumers that allow valuable and innovative growth are of utmost importance in market development.

SMILE Targets Innovation, Service Excellence to Drive Growth

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17/10/2016

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Dr. Ernest Azudiala-Obiejesi Chairman Smile Communications

Smile Communications Nigeria Limited has reaffirmed its unflinching commitment to innovation, value creation and service excellence.

In line with its service orientation and innovative streak, the company has launched a new SIM proposition on the 0702SMIlLE 4G LTE range as well as unveiled its first Brand Ambassador Steve Onu popularly known as Yaw.

Speaking at the event, the Chairman of Smile Nigeria, Dr. Ernest Azudialu-Obiejesi, stated that Smile Communications is Nigeria’s leading telecommunications network and service provider that is dedicated to providing high-quality, reliable, superfast Broadband access, voice and SMS using the 4G LTE technology. He observed that Smile Nigeria has gone ahead to distinguish itself through innovation, value-creation and service excellence.

Staking Smile’s claim to innovative practices and pioneering efforts in 4G LTE, Azudialu-Obiejesi remarked that Smile, which was the first to introduce 4G LTE technology in Nigeria, came to redefine service quality and standard in the Nigerian telecommunication sector.

“Our goal was to make Nigerians get and gain more from telecommunication services. This inspired our deployment of the 4G LTE, which revolutionised the way Nigerians access the internet and communicate with families and friends, home and abroad.”

Azudialu-Obiejesi stated that in just three years of operation, the company has acquired a reputation as an innovative organization, and one devoted to greater appreciation of its customers ‘pain points’. He enthused that insights gained from positive institutional orientation have helped in scaling up the company’s innovation and creativity.

For instance, Smile Communications Limited provided a reliable connection for web surfing, online movie and music downloads, HD Video streaming and super clear voice calls at the lowest call rate across all networks, which hitherto was a challenge.

As a customer-focused company, Azudialu-Obiejesi said that the company is always desirous to offer the best service at the most appropriate price. Smile Communications is the only telecommunications service provider in Nigeria that offers voice calls and SMS from one data plan. Our call rate is as low as 8kobo per second, on the SmileVoice only plan and lowest call rate when our customers make calls home from anywhere in the world. These propositions further reaffirm our status as a customer-centric organisation”, he noted.

To make the benefits of Smile’s industry-defining service reach a broader segment of the Nigerian population, Azudialu-Obiejesi disclosed that the company has commenced an aggressive network expansion drive which will see it cover all cities in a very short period thereby ensuring that more Nigerians will have access to Smile’s superfast and super reliable 4th Generation Long-Term Evolution (4G LTE) Broadband services.

Commonwealth Candidate, Masambu, Elected DG of ITSO

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17/10/2016

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Commonwealth Candidate, Masambu, Elected DG

Patrick Masambu, a Uganda citizen and former chairman of the Council of the Commonwealth Telecommunications Organisation (CTO) has been elected director-general of the US-based International Telecommunications Satellite Organisation (ITSO).

Mr. Masambu was the only Commonwealth candidate for the position. A former communications regulator for Uganda, he brings to the role over 30 years of experience, including over six years as ITSO’s current deputy director-general and director of technical affairs. He is the first sub-Saharan African to be elected to the position.

During his time as chairman of the CTO Council on behalf of Uganda, Masambu presided over important transformations to turn the CTO into a more member-centric organisation.

“The election was exciting with three strong candidates. I am delighted to see Patrick elected. He brings tremendous experience to ITSO and I look forward to working with him,” said the CTO’s secretary-general Shola Taylor shortly after Masambu’s election.

Shola Taylor (right), secretary-general of CTO congratulating Patick Masambu (left), director-general of ITSO

In his acceptance remarks, Masambu thanked all ITSO members for their support and looked forward to partnerships with international and regional organisations, including the CTO, in areas such as capacity building, to achieve the objectives of ITSO.

The Honourable Frank Tumwebaze, Uganda’s Minister of Information Technology & Communications equally thanked all the member states and also Mr. Taylor SG for the excellent support given to Uganda to improve the ICT sector in Uganda.

ITSO’s mission is to:

Ensure the performance of Core Principles for the provision of international public telecommunications services, with high reliability and quality
Promote international public telecommunications services to meet the needs of the information and communication society
Protect the ITSO Parties’ Common Heritage

For the CTO, it is important that Commonwealth values and shared interests are represented at the highest level in international forums, in order to strengthen the position of the Commonwealth.

Housing Finance in Africa Yearbook 2016 | A Country Overview of Housing Finance Markets in Nigeria

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17/10/2016

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The Nigerian banking sector has grown tremendously over the past few years, both in volume of activity and sophistication.

The commercial banking sector assets, according to the Central Bank of Nigeria, experienced growth of 13 percent between 2013 and 2014. There has also been on-going acquisition of banks within the sector, contributing to continued consolidation and the increase in competition among players.

In its stability report for 2015, the Central Bank noted an increase in the number of Other Financial Institutions, from 3 734 in June 2015 to 3 905 end December 2015. Included in this, is one Mortgage Refinance Company (the Nigeria Mortgage Refinance Company or NMRC), six development finance institutions, 35 primary mortgage banks, 66 finance companies, 19 registered banks which also offer mortgages, and 958 microfinance banks. However, provisional total assets of this sub-sector, as at end December 2015, decreased by 2.52 percent to N1 841.64 billion (US$ 5.9 billion). And, total loans and advances decreased by 9.31 percent to N1 078.81 billion (US$ 3.4 billion).

Much of the decline can be attributed to a primary mortgage bank which converted to a commercial bank, and the licences of some microfinance banks and finance companies being revoked. The total assets of primary mortgage banks decreased by 6.78 percent to N389.73 billion (US$ 1.24 billion).

Additionally, total loans and advances, aggregate reserves and shareholders‘ funds increased by 12.10, 16.43 and 2.09 percentage points to N168.96 billion (US$ 536 million), N26.51 billion (US$ 84 million) and N138.92 billion (US$ 441 million), respectively.

In 2012, 39.2 million adult Nigerians were financially excluded, of which 54.4 percent were women, 73.8 percent less than 45 years old, and 34 percent had no formal education, while 80.4 percent lived in rural areas. In the same period, the Central Bank of Nigeria (CBN) reported that Nigeria had 21 banks where individuals could deposit money, with 6 000 branches and about 10 000 ATMS.

And, in 2011 it was reported that Microfinance Banks collectively had 3.2 million clients, 65 percent of which using savings products, 14 percent used credit products and four percent used ATM cards.

In its 2012 Financial Inclusion Strategy, the CBN reported that it aims to decrease the number of Nigerians that are excluded from financial services to 20 percent of the population by 2020, and the number of those included in the formal sector to 70 percent, also by 2020.

According to Global Findex (2014), between 2011 and 2014, access to finance grew from 30 percent to 44 percent. The increase has been driven by growth in payments; however there has been a significant lag in the impact on access to bank loans – two percent in 2011 to five percent in 2014.

Mortgage finance is still a small percentage of Nigeria’s GDP, at approximately 0.58 percent.

NCC, ATCON Endorse 2nd Nigeria ICT Festival 2016

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17/10/2016

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The Nigerian Communications Commission (NCC) and Association of Telecommunications Companies of Nigeria (ATCON) have proudly endorsed the 2^nd Nigeria ICT Festival & Exhibition 2016 slated for Thursday, November 24, 2016 at Sheraton Hotel, Ikeja (Lagos).

The theme of the Festival is: ICT: Platform for Growth in a Depressed Economy.

Commenting on the event, Prince Cookey, Chief Executive of the 2^nd Nigeria ICT Festival & Exhibition 2016 said:

“The 2nd edition of the Festival is primed to build on the huge success of the 1st Nigeria ICT Festival & Exhibition held on Thursday, November 27, 2014 at Protea Hotel, Ikeja (Lagos). The 2nd Nigeria ICT Festival & Exhibition 2016 promises to be the single largest gathering of ICT and allied professionals, corporate organisations, consumers of ICT products/services and regulators under ONE PLATFORM to deliberate on the State of the Industry, generate Strategic Plan of Action for future growth in a depressed economy and offer operators a unique opportunity to showcase latest products and services to existing and prospective customers.”

He listed the strategic objectives of the Festival as follows:

Platform for Industry Evaluation & Projection
To Generate Industry Plan of Action
To Showcase Latest ICT Products & Services
Opportunity for Professional Networking

Evaluate Impact of New Technologies

Cookey said the endorsement of the Festival by NCC and ATCON represents a huge testament to the value and importance of the event in the ICT calendar in Nigeria.

“This event presents a unique platform for ICT industry players (professionals and operators) in Nigeria and around the world to meet, assess developments in the sector, plan for tomorrow and showcase their latest cutting-edge products and services,” Cookey added.

He added that the theme (ICT: Platform for Growth in a Depressed Economy), captures the emerging essence of ICT as development-enabler in many economies around the world, in terms of sustainable contribution to Gross Domestic Product (GDP), provision of jobs and rapid development of home-grown technologies for national development.

The high-level speakers expected at the event include:

Umar Danbatta: Executive Vice-Chairman, Nigerian Communications Commission
OlusolaTeniola: President, Association of Telecommunications Companies of Nigeria
Ferdi Moolman: CEO, MTN Nigeria
SegunOgunsanya: CEO, Airtel Nigeria
Mathew Willsher: CEO, Etisalat Nigeria
Joseph Tegbe:Partner, KPMG Nigeria

The final deadline for Expression of Interest to participate at the Festival is Monday, October 31, 2016.

The 2^nd Nigeria ICT Festival & Exhibition is Proudly organised by Business Journal newspaper (Print & Online). www.businessjournalng.com.

CONTACT: Prince Cookey, +234-8023088874, [email protected]

SMILE Unveils 0702SMILE 4GLTE SIM, Brand Ambassador

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13/10/2016

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Godfrey Efeurhobo MD/CEO Smile Communications

Smile Communications Nigeria limited has further pushed the notch of differentiation by giving practical expression to its status as an innovative full telecommunications services provider.

The company which has always had a valid number range and can do voice just like any other Mobile Network Operator has been misconceived by some as an Internet Service Provider (ISP).

However, Smile is the first Telecommunications service provider in West Africa to deploy the 4G LTE that enables it to provide the most advanced telecommunications technologies and standards available anywhere in the world using the 4G LTE network technology.

Its launch of the true 4G LTE network in Nigeria and indeed in West Africa in 2013 revolutionized the way Nigerians access the Internet.

Smile Nigeria, as noted by Godfrey Efeurhobo, the company’s Managing Director, in the recent past has unveiled a number of innovative Voice and Data services and is reinforcing its 0702 number range with the recent introduction of the lowest call tariff that allows its customers to make calls at 8kobo per second to any network from within and outside the country at the same rate, using SmileVoice App on any Smart Phone, and its 4G LTE SIM on Voice over LTE compatible handset. Smile, Efeurhobo stated ‘offers the best value proposition and experience to customers in Nigeria.

He stated that there are multiple benefits of using a Smile 4G LTE sim in the latest phones. “The Nigerian consumers” he stated, “can put their Smile 4G LTE Sim in the LTE handset, use their handset to make calls locally and to anywhere in the world, for Internet, video/music streaming/downloads and SMSs, all using one Smile bundle plan, which is a first in this market.

Beyond innovative practices driven by technology, Smile has also taken another bold step by way of a series of brand building initiatives, the latest of which is the adoption of Brand Ambassadors.

The first to be signed on as a Brand Ambassador for Smile is the versatile Radio/TV personality Mr. Steve Onu popularly known as Yaw. The choice of Yaw as brand ambassador for Smile Nigeria is coherent with Smile’s values for innovation, creativity, versatility and values of reliability, respect and service.

Efeurhobo stated that the new brand-positioning proposition accentuates Smile’s quest to expand its scope of operations, provide its customers with unrivaled quality service and contribute meaningfully to the growth and development of mobile broadband penetration in Nigeria.

These initiatives of Smile are designed to further entrench its position among the leading telecommunications companies in Nigeria. He also added that Smile remains the only telecom provider that allowed Voice calls and sms from a data package and the benefits include 8k / sec from home and abroad on the SmileVoice Only plan, free calls from aboard on the SmileVoice app which is available on the IOS and Google play store and many more and this gives Smile the unique positioning of offering bespoke and affordable propositions for Nigerians.

A multiple award-winning firm, the company is present in key Nigerian cities including Ibadan, Lagos, Abuja, Port Harcourt, Benin, Kaduna, Asaba and Onitsha.

Smile Nigeria was founded in 2008 with the transformative objective of using the best and most innovative technologies to provide its customers with high quality, easy to use and affordable communication services. Its vision and mission is to be the Broadband provider of choice in Nigeria and enable its customers to fully benefit from the Internet world.

Since it launched West Africa’s first true 4G LTE network in Ibadan in 2013, Smile has received accolades for its pioneering and innovative works. In October 2015, Smile became the first operator in West Africa to offer its customers Voice over LTE services thereby ensuring for them access to the growing global standard for voice and video calling.

Recently, the company was adjudged the Best Premium Quality Super Fast 4GLTE Mobile Broadband Service Provider of The Year 2016. This latest award followed in quick succession the earlier recognition of Smile Nigeria as ‘The Most Innovative Broadband Service Provider of the Year’ at the 2016 Titans of Tech Awards.

Adeosun:‘Commitment to Accountability, Transparency Non-Negotiable’

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13/10/2016

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The Minister of Finance, Mrs. Kemi Adeosun has challenged members of the accounting profession to join forces with the current administration in its bid to promote accountability and transparency in governance.

The Minister gave the charge on the day two of the 46th Annual Accountants Conference organized by the Institute of Chartered Accountants of Nigeria (ICAN) in Abuja on Tuesday.

The theme of the conference is Accountability. Now, Nigeria, and it was attended by dignitaries including the Vice President, Mr. Yemi Osinbajo, Gombe State Governor, Alhaji Ibrahim Hassan Dankwambo, Ogun State Governor, Senator IbikunleAmosun and former Governor of Anambra State, Mr. Peter Obi, among others.

The Minister explained that the accounting body now has greater roles to play in the current dispensation, saying that the era when accountants just offered suggestions was over.

The Minister stated, “When things go wrong in the private sector, it affects just one company, but when things go wrong in the public sector, it affects the whole nation and that is why we must raise the bar for public financial management.

“The days when ICAN stayed in the background are gone. That is why I’m challenging ICAN to move from the background to the forefront. We need more accountants at all tiers of government and I think they have a very big role to play.”

She disclosed that the finance ministry under her watch has begun capacity building for the nation’s accountants by ensuring that larger firms partner with smaller and medium scale firms for any assignment.

“We need to build capacity within the smaller and medium-sized practices. In the Ministry of Finance, we have resolved that a large firm must partner with smaller firms for any assignment and the practice has started.”

She stated that one of the measures put in place by the current administration was to ensure that the nation’s public finance management was better enhanced. According to her, a lot of lessons have been learnt from past mistakes; hence the implementation of a set of robust public finances management policies.

“One of the things we have done since we came to the office was to ensure that our public finance management is better enhanced. We didn’t really have early warning signals from where we were headed. I think if we had better data, we wouldn’t be here today.”

The Federal Government of Nigeria was one of the few countries without risk based independent internal audit. We started with the Presidential Initiative on Continuous Audit. On assuming office, we found there were little controls, no audit and no reconciliation.

These are the basic tools for reconciling expenditure with payroll. As a, result, we found thousands of payroll entries of people who are not supposed to be there. We therefore have to move the Presidential Initiative on Continuous Audit into formal independent-risk based internal audit.

We also set up the Efficiency Unit and I have to thank ICAN for its support. We have been able to drive down our costs considerably. The savings are creating head room clearly needed to be invested to fund capital projects which will grow the economy,” the Minister stated.

Red Star Express Marks 24th Anniversary

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13/10/2016

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Group Managing Director of Red Star Express Plc, Sola Obabori has praised the foresight of those who built the Red Star brand from the scratch saying their tenacity has brought the company to its present state of growth.

Speaking on the 24th year anniversary of the company on 12th October 2016, Obabori stated that the unique vision of Dr. Mohammed H. Koguna, Mazi, Sonny Allison, Mr. Patrick Nwosu, Olorogun Eddy Olafeso and other investors who took the risk to start this company, has survived several seasons and cycles. He also thanked all the tireless efforts of all staff who have served the company both past and present, for the commitment, resilience, passion for excellence and enthusiasm for growth.

“Our focus at this time, despite the challenging business environment, is to build Red Star Express from a Good To Great Company, positively impacting lives and businesses, within and outside the shores of Nigeria”, he said.

He noted that “we must refuse to rest on our oars as there are yet many grounds to conquer and together we would improve our processes in line with global best standards, innovate new products and services to delight and exceed customers’ expectations and invest not only in ourselves but also in this great Company for the future”.

In a related development, TNT has selected Red Star Express as a new service provider in Nigeria as of October 7, 2016, for its international range of services to and from more than 200 countries worldwide. This has also been approved by the management of TNT (Bahrain) E.C effective from October 7, 2016, after assessment of TNT’s existing operations and future market requirements.

“This means that Red Star Express will now offer TNT’s international range of services to and from more than 200 countries worldwide” according to CyrilleGibot, TNT External Communication Manager.

Sola Obabori stated that the appointment has provided a bigger platform that will boost the logistics industry especially in Nigeria because the TNT team members bring 70 years of diverse experience, which, combined with that of Red Star Express with its well-grounded road network will make the selection a success story.

Already, the TNT sales, operational and technological systems integration with that of Red Star Express have been concluded and this has allowed TNT clients in the country to continue to enjoy TNT’s high valued delivery services and at the same time benefit from Red Star Express’ partnership with FedEx that has lasted over 20 years.

China Southern Airline Orders 787 Dreamliners for $3.2B

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13/10/2016

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Boeing and Guangzhou-based China Southern Airlines signed a purchase agreement for 787 Dreamliner aircraft valued at $3.2 billion.

The airline, currently number one by passenger numbers in Asia-Pacific, decided on purchasing the 787-9 version (list price – $271 million). The aircraft will be delivered in the 2018-2020 timeframe, according to a statement from the carrier.

The Guangzhou-based carrier already operates 16 Dreamliners, which make up only a small fraction of the 684-strong fleet, currently the largest in the region.

Global Airlines Financial Monitor: September 2016

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13/10/2016

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The latest financial results indicate that industry profitability and cash flow remained solid in Q2 2016, although the industry profitability cycle is showing signs of peaking;
Global airline share prices rose by 0.9% in September, but remain well below where they started the year;
Brent crude oil prices rallied towards the end of September following an agreement by OPEC to cut oil output. A rebalancing in the market is slowly taking place, with prices expected to trend upwards weakly in the years ahead;
The intense downward pressure on passenger yields looks to have eased during the middle months of 2016, in keeping with the change in the trend of oil prices;
The premium segment continues to offer a buffer for overall airline financial performance. Premium airfares have held up better than those in economy on many of the main premium routes so far this year;
Developments in passenger traffic continue to reflect the net influence of a number of factors. The upward trend in traffic has eased, but the seasonally-adjusted industry-wide load factor remains at historically high levels;
Conditions for air freight have improved from earlier in the year, but wider weakness in world trade volumes continues to present a stiff headwind. Low loads continue to keep cargo yields and revenues under pressure

‘World Bank Must Expand Capacity to Tackle Global Challenges’

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11/10/2016

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The World Bank Group must become “better, stronger, and more agile” to confront major global challenges over the next 15 years, while also working to end extreme poverty, boost shared prosperity, and achieve the Sustainable Development Goals and the Paris Climate Change Agreement.

That was a key message of the Development Committee, a ministerial-level forum of the World Bank Group and the International Monetary Fund, in a communiqué released at the close of the institutions’ Annual Meetings.

The committee representing the Bank Group’s 189 member countries said the global development landscape will face “critical shifts” in the future, driven by climate change, natural disasters, pandemics, migration, and fragility, conflict and violence, urbanization and demographic changes. Addressing these changes will require more collaboration with others and more resources, it said.

Acknowledging an environment of “sluggish” global economic growth and geopolitical and economic uncertainties, the committee also called on the Bank Group and the International Monetary Fund (IMF) to work with countries to “enhance synergy among monetary, fiscal and structural reform policies, stimulate growth, create jobs, and strengthen the gains from multilateralism for all.”

The committee’s message capped two days of meetings of the Bank and IMF shareholders – including most of the world’s countries. Ahead of the meetings, the Bank Group released a flagship report on poverty, shared prosperity, and inequality, and World Bank Group President Jim Yong Kim outlined his vision to accelerate development and the fight against poverty for his second term in a speech at the Brookings Institution.

Kim said the Bank is increasingly involved in development challenges beyond its traditional mandate, including major new initiatives to address the refugee crisis, climate change, and the threat of pandemics.

Challenges, he said, include technological change and the automation of work, which could impact jobs and the ability of developing countries to compete globally. By 2030, it’s projected that almost half of the world’s poor will live in countries affected by fragility and conflict. Emerging markets and low-income countries currently face an annual infrastructure financing gap of up to $1.5 trillion, said Kim.

He asked member countries at the Annual Meeting plenary session to give the Bank flexibility to “solve the most important problems and make sure we have the financial capacity to change the world for the poorest and the most marginalized.”

Over the last 70 years, the World Bank has been able to leverage $15 billion in paid-in capital to provide $600 million in loans, and so increase the amount of assistance available to developing countries. The Bank Group’s private sector focused arm, IFC, leverages its capital 20 times, and the Multilateral Investment Guarantee Association (MIGA) leverages its shareholder equity 39 times, according to a paper on the Bank’s “forward look,” submitted to the Development Committee.

The committee said that it would consider options to strengthen the financial position of the Bank no later than the 2017 Annual Meetings October 13-15, 2017, in Washington.

It urged the Bank Group to “help create markets, particularly in the most challenging environments, and to mobilize private resources, including through guarantees, especially for quality infrastructure, and for small and medium enterprises.”

Kim, who was appointed last month to a second term as president of the Bank, outlined a plan to accelerate inclusive and sustainable economic growth, increase investments in human capital, and foster resilience to global shocks and threats.

He said private sector financing will be critical and the Group would aim to mobilize private sector investment in the most challenging sectors and countries, and do “much more to tackle some of those risks that constrain the private sector in these markets.”

“I want you to know that going forward, we will be much more aggressive in putting on the table, capital and specific instruments that can reduce risk. In doing so, we feel that we can create new markets and encourage investors to venture into countries and projects that they never would have considered before,” Kim said.

NSE Organises First Market Data Workshop

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Business Journal

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11/10/2016

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Oscar Onyema, CEO, Nigerian Stock Exchange

The Nigerian Stock Exchange in collaborationwith Independent Software Vendors (ISVs) and Market Data Vendors (MDVs) is set to host its inaugural Market Data Workshop, on Tuesday, October 18, 2016 at The Civic Center, Victoria Island, Lagos. The workshop aims to increase awareness on the critical role of Market Data in making sound investment decisions on both the buy and sell sides.

The workshop themed “Understanding Market Data for Savvy Investing and Wealth Creation”

coincides with the 3rd anniversary of X-GEN, a next generation trading platform that has

contributed to increasing market access, order flow and market transparency.

Attendees at the

workshop will include investors, market data aggregators, exchanges, market regulators,

government agencies, dealing members, telecommunication operators and other stakeholders

from the capital market ecosystem.

According to the Chief Executive Officer, NSE, Mr. Oscar N. Onyema, the delivery of market

data to users is highly time-sensitive and requires specialized technologies designed to handle the

collection and throughput of the massive data streams.

“At the NSE, this effort is underpinned by our ‘next generation’ trading engine, X-Gen, which was built in collaboration with NASDAQ in 2013. X-Gen is not only built to trade a wide range of securities, it is extendable to multiple interfaces for the consumption of market data.

It is this system that we rely on daily to deliver approximately 2.5GB worth of data to our various domestic and global market data consumers.”

Speaking on the event, the Executive Director, Market Operations and Technology, NSE, Mr. Ade

Bajomo, said “the conference brings to fore the critical application of market data in making sound

investment decisions whilst highlighting the various data products available in the Nigerian

marketplace, thereby allowing investors to maximize their wealth creation opportunities. This is a

must attend event for all market participants.”

Some of the confirmed speakers for the event include: Dr. Yemi Kale – Statistician General of the

National Bureau of Statistics of Nigeria, Uwa Agbonile – Managing Director, Infoware Limited,

Obiora Anyichie – Global Trybe Solutions, Natasha Punwani – Business Manager, Bloomberg; and

Kemi Oluwashina – Director, ARM Securities.

Ade Ewuosho, Head of Market Services Department, NSE noted that, “the Exchange in

collaboration with technology driven institutions and stakeholders in Nigeria will continue to

provide business solutions that will thrive on market data, technology and innovation, to meet the

diverse business needs. We are hopeful that attendees will gain valuable insight that will help

them realise the significance of data to decision making.”

This event is sponsored by Bloomberg, Infoware, Global Trybe Solutions, ARM, Samsung, GTI,

Wapic Insurance, Zanibal and Ntel.

About NSE

The Nigerian Stock Exchange services the largest economy in Africa, and is championing the development of Africa’s financial markets.

The Exchange offers listing and trading services, licensing services, market data solutions, ancillary technology services, and more.

The Nigerian Stock Exchange continues to evolve to meet the needs of its valued customers, and to achieve the highest level of competitiveness.

It is an open, professional and vibrant exchange, and the Entrepreneurial Growth hub of Africa. The Nigerian Stock Exchange aspires to be Africa’s foremost securities exchange, connecting Nigeria, Africa and the world.

$300m Fund Created to Support Africa’s Energy Sector

By

Business Journal

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11/10/2016

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Standard Bank of South Africa (SBSA), the Overseas Private Investment Corporation (OPIC) and Wells Fargo Bank announced the creation of a $300 million fund which focuses on financing energy and infrastrcuture projects in Africa.

The fund will invest at least $150 million in the Power Africa initiative developed by President Barack Obama while about $100 million will be used to develop strategic infrastructure projects in the energy sector.

“Power and infrastructure played a crucial role in the economic development of Africa. We are delighted to be part of such an important initiative and look forward to working with OPIC and Wells Fargo to promote sustainable economic growth and to make a real difference to the lives of the people of Africa,” said Sim Tshabalala, SBSA director.

—Gwladys Johnson

Boeing, Qatar Airways Ink $18.6bn 100 Aircraft Deal

By

Business Journal

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11/10/2016

0

Boeing and Qatar Airways announced an order for 30 B787-9 Dreamliners and 10 B777-300ERs, valued at $11.7 billion (€10.47 billion) at list price. The airline also signed a Letter of Intent for up to 60 737 MAX 8s, valued at $6.9 billion (€6.17 billion) at list prices.

The announcement builds on Qatar Airways’ current fleet of 84 Boeing aircraft, a combination of 787s and 777s, all delivered over the last nine years. With this new order, Qatar Airways increases its firm order backlog of Boeing wide-body airplanes from 65 to 105, including 60 777Xs.

The Boeing Company announced deliveries across its commercial and defense operations for the third quarter of 2016. During the third quarter, the Seattle-based company sold 188 commercial airplanes, dominated by the narrow-body B737 family of 120 deliveries, followed by 36 B787 family.

Qatar Airways’ relationship with Boeing was renewed in 2006. The airline was the first to operate the 787 in the Middle East and is a launch customer for the 777X. With the commitment for the 737 MAX 8, it would be the first Boeing single-aisle airplane model to join Qatar Airways’ fleet in more than 15 years.

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