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South African Airways Flies on Bio-kerosene

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southern african

South African Airways have flown their first bio-kerosene fuelled flight from Johannesburg to Cape Town. The kerosene is made from Solaris tobacco. An excellent result of a project partly financed through the Dutch Ministry of Foreign Affairs’ Transition Facility.

Solaris Project is a collaboration involving Boeing, Sunchem, South African Airways and SkyNRG. SkyNRG cultivates Solaris and launched the project with Transition Facility funding.

This project brings the aviation industry one step closer to adopting green kerosene. Besides bringing innovation to the industry, cultivating this crop also has a huge impact on the farmers growing Solaris.

Solaris tobacco is cultivated in the Limpopo region of South Africa. Each hectare of land represents one full-time job.

The project envisages 250,000 hectares of Solaris tobacco cultivation by 2025. That should create huge new employment prospects and opportunities for farmers who have suffered from the drop in demand from the tobacco industry.

Alexandre de Juniac Takes Rein as IATA DG/CEO

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Alexandre de Juniac

The International Air Transport Association (IATA) announced that Alexandre de Juniac has officially taken on the role of Director General and CEO of the organisation. He succeeds Tony Tyler, who served as IATA DG and CEO since 2011 and had announced his retirement.

“I am excited to be taking on this great responsibility. IATA plays a critical role in facilitating safe, efficient and sustainable global air transport. Tony Tyler has raised the bar through his achievements over the last five years. With the guidance of our Board and the support of our membership, my aim is to ensure that IATA continues to deliver the value that our members and partners rely upon,” said de Juniac.

De Juniac was confirmed by the 72nd IATA Annual General Meeting this past June to be the seventh person to lead IATA. He brings diverse experience to the association, including leadership roles in the airline and aerospace sectors as well as in government.

“IATA touches almost every aspect of the air transport industry and interacts with a wide range of stakeholders—especially governments. I will call on all my experience to ensure that IATA meets the needs of our members and plays a leading role in responding to the challenges that the industry faces.

In particular, the accelerating pace of change in the world means that we must be able to move even more rapidly—as an industry and as an association. IATA’s mission is to represent, lead, and serve the airline industry with global standards. For me that means we must use change as a catalyst for innovation to please customers and contribute positively to the business of our members,” said de Juniac.

De Juniac emphasised the need for industry stakeholders, especially governments, to recognise the value that aviation creates.

“The numbers are clear. Air transport supports an impressive 63 million jobs and some $2.7 trillion in economic activity. But that’s only a part of the value that aviation creates. Our industry is in the business of freedom. We help people to explore the planet, to do business globally, to bridge cultures with friendships and understanding, and to enjoy better lives through the prosperity that connectivity creates. Aviation changes our world for the better. And as the industry’s global advocate, my mission is to rally our partners to ensure that nothing impedes the business of freedom,” said de Juniac.

The Abidjan-Lagos Corridor: A Catalyst for Economic Growth in West Africa

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Mamady Souare

Interview with Mamady Souaré, Division Manager, NEPAD Regional Integration and Trade Department

What is the current status of the Abidjan-Lagos Corridor?

The Abidjan-Lagos Corridor is a flagship project of the Programme for Infrastructure Development in Africa (PIDA), which was endorsed by African Heads of States in February 2012 at the 18th African Union summit in Addis Ababa. PIDA is an ambitious initiative which comprised 51 priority projects estimated at nearly US $68 billion to be completed by 2040. The programme is being implemented jointly by the AU, the African Development Bank (AfDB) and the New Partnership for African Development (NEPAD).

The Abidjan-Lagos corridor was selected, by the presidents of the five countries concerned (Côte d’Ivoire, Ghana, Togo, Benin and Nigeria) as one of the most important projects in West Africa in terms of regional integration. To date, under the leadership of the Economic Community of West African States (ECOWAS), a number of physical investments have been made in these countries. In Côte d’Ivoire, for instance, the highway linking Abidjan to Grand-Bassam was opened to traffic on September 14, 2015. The completion of the 42.7 kilometre, at a total cost of US $105 million, is the first part of the corridor connecting Abidjan and Lagos.

Who is taking the lead on the project?

Several stakeholders are involved in the implementation of the project. The World Bank has approved an allocation of US $228 million for the first phase of the Corridor Trade and Transport Facilitation Program which covers Ghana, Togo and Benin while the second phase, estimated at US $89.5 million will cover Côte d’Ivoire and Nigeria. The project entails five components: trade facilitation; improvement of the road corridor’s infrastructure; project management and coordination; HIV/AIDS programs; and corridor performance monitoring. The AfDB, the EU, GTZ, JICA and ECOWAS are currently funding studies to complete the missing links. These studies will focus on transport and trade facilitations, institutional arrangements and the effective implementation of various sub regional texts.

The Abidjan-Lagos Corridor Organisation, a sub-regional intergovernmental organization was set up in 2005 by ECOWAS, with support from the World Bank and the AfDB. The organisation’s mission is to reduce the impact of HIV infection on interregional trade in West Africa. Today, there are discussions around the creation of a Corridor Management Authority like the one we have in East Africa for example.

The project was initiated a long time ago. How do you explain the delays?

As indicated earlier, several activities have already been undertaken. Countries have renovated the most degraded roads in their respective territories and additional road works are ongoing. In Ghana, on the Agona Junction Elubo road (110 km), over 50% of the widening works on 2×2 lanes was completed in December 2013. Works are also underway on Akatsi- Aflao Road Highway. In Benin, works are underway along the Godomey-Pahou section (17 km) and reinforcing works on Pahou-Ouidah-Hillacondji section (76.5 km) are also in progress. The challenge now is to ensure that technical standards are harmonized in order to give the corridor the character it deserves. The Bank has a pipeline project to address road standardization and the trade facilitation aspects.

Which countries are leading the way in terms of involvement, progress made, financing secured and which are those lagging behind?

All the countries concerned have demonstrated unwavering commitment to implement this major project. We must not lose sight of the complexity of cross-border projects of this nature that require the involvement of different stakeholders namely the Ministries of infrastructure and public works, trade, finance and also health for issues related to the HIV AIDS pandemic, customs administrations… to mention only these. Again, the will and commitment to see this project succeed are all there and experts, financial partners, ECOWAS and NEPAD are committed. In addition, all the heads of state signed a treaty in March 2014 in Yamoussoukro that was ratified by the countries’ parliaments. This further demonstrates the willingness of the member countries to abide by their commitments in order to drive the development of the corridor forward.

The project beneficiaries are not aware of the benefits of the corridor. How do you explain the need for such a project?

The Abidjan-Lagos corridor is the busiest corridor in West Africa, a six-lane 1028-kilometer long highway that will link Abidjan, Accra, Lomé, Cotonou and Lagos, while serving the landlocked countries and ports in the region. The corridor is one of the main economic drivers of West Africa, accounting for more than 75% of economic activities in the ECOWAS region. With a total population of over 35 million inhabitants, the corridor connects some of the largest and economically most dynamic capitals in the region. You can therefore easily understand the benefits for the populations. To list just a few, we can say that the corridor will definitely contribute: (i) to accelerating integration and increasing trade at regional level; (ii) reducing trade and transport barriers in ports and roads along the corridor; (iii) facilitating the implementation of the ECOWAS Protocol on the principle of free movement of people and goods by allowing faster border crossing time and (iv) reducing the cost of trade. For this reduction to be effective, the cost of transport, which represents about 70% of trade costs, also needs to go down. These are just a few benefits that can derive from the corridor and which will contribute to the region’s economic development and poverty reduction.

To what extent has the environmental dimension been taken into account?

Following the adoption of the Bank’s Environmental Policy in 1990, the AfDB published the Environmental Assessment Guidelines in 1992. The new Procedures, entitled Environmental and Social Assessment Procedures (ESAP), were adopted in June 2001. ESAP seeks to improve the decision making process to ensure that the projects and programs funded by the Bank are environmentally and socially sustainable. These rules apply to all the projects funded by the Bank. Besides, NEPAD-IPPF, a Special Fund hosted by the AfDB has allocated a US$2.7-million grant for a study relating to the corridor. This technical study will include environment and social aspects to define mitigation measures to be implemented during and after the project.

COURTESY: African Development Bank [AfDB]

MTN Unveils Brand Ambassadors for 2016-2017

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MTN

In line with its commitment to supporting Nigerian musicians by providing alternative platforms through which they can receive lucrative value for their intellectual property, MTN has announced brand ambassadors for 2016-2017.

According to MTN’s General Manager Consumer Marketing, Richard Iweanoge, this is designed to enable the company continue to support the development of the entertainment industry by financially empowering Nigerian artistes and musicians through the promotion and monetisation of content on its various digital platforms – MTN Music+, Caller Ring Back Tunes (CRBT) and Value Added Services (VAS).

Music ambassadors for 2016-2017are: Praiz(Praise Adejo); Iyanya (Iyanya Mbuk); Chidinma(Chidinma Ekile); Falz(Folarin Falana);Tekno Miles(Augustine Kelechi) and Skales(Raoul Njeng-Njeng). Four other ambassadors are – Saka(Hafiz Oyetoro); Nedu (Steve Onu); Osuofia(NkemOwoh) and Adamu Zango.

Speaking on this, MTN Executive, Amina Oyagbola said: “MTN remains proud to be associated with the growth and development of the careers of all our ambassadors, past and present.

We specially thank all our former ambassadors for their immense contributions to building our brand and making us the network of choice in Nigeria. We will definitely continue to maintain the strong and mutually beneficial relationship with them through the monetisation of their content on all our digital platforms – MTN Music+, CRBT and VAS.”

Iweanoge again said, “With the significant investment made so far in Nigeria’s music industry, MTN remains and will continue to beone of the biggest supporters of the music industry. We have a track record of consistently providing the stage for some of Nigeria’s biggest artistes to shine and express themselves”.

He stated that through its Caller Ring Back Tunes (CRBT), MTN is the largest music distributor in Africa.

“Through the platform, we ensured that Nigerian musicians would no longer suffer the scourge of piracy. They are able to make good money as a result of their hard work. Also, as Nigeria’s most innovative telecoms company, we have been able to deploy music as a platform to give other value added services to our teeming subscribers, which have also proved to be a significant source of revenue for the artistes such as theMTN Music+ app and a host of other platforms.”

For MTN, we see the growth of the music industry as a continuum and not a destination. That is why we will continue to engage and support our local artistes so that they can find full expression for their talent. We will also continue to explore other areas of collaboration with ALL artistes through these platforms and many more, as we work to fulfil our vision to lead the delivery of a bold new digital world”

Iweanoge, however, posited that for the purpose of keeping alive the original concept of music brand ambassadorship, MTN decided to retain the services of past winners and participants of its Project Fame music reality TV show, which include Inyanya, Chidinma and Praiz.

“MTN is particularly proud of these musicians because we not only gave them the platform to express their talent through Project FAME, we have consistently supported them over the years by making them our ambassadors. We are proud to have been able to contribute to some of Nigeria’s biggest music acts.”

Beyond the Project Fame alumni, Iweanoge also saidthat in order to nurture other artistes so that they too could attain greater heights, MTN wouldstill retain the services of some of its newly-signed brand ambassadors like Falz, Skales and Tekno who are the faces of its youth segment proposition – MTN Pulse.

He added that there will be a renewed focus on building MTN’s digital platforms.

Starwood Hotels Ramps up Nigeria Portfolio with New Hotel in Benin

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POINT 1: Accelerating growth in emerging markets across the globe, Starwood Hotels & Resorts Worldwide Inc. has announced the signing of Four Points Benin City, Nigeria.

Owned by Eagle Hospitality and Leisure Limited, the sleek new Four Points hotel is built for the modern traveler with an emphasis on approachable design and stylish comfort.

Conveniently located in the heart of Benin City – the capital city of Edo State, one of the 36 states in Nigeria – the hotel is situated within a five-minute drive to the airport and no more than 10 minutes from the government and business district.

POINT 2: “Four Points by Sheraton Benin City will further consolidate our strong Nigeria portfolio, opening up yet another emerging destination for international travel,” said Michael Wale, President, Starwood Hotels & Resorts, Europe, Africa and Middle East.

“With five hotels operating and another four in the pipeline, including Four Points Benin City, Nigeria is already one of our strongest markets in the region, and the signing of this hotel reinforces the growing demand for affordable lifestyle brands in rapidly developing markets.”

“We are delighted to introduce the popular Four Points brand to Benin City and expect this new hotel to meet the rising demand for high-caliber lodging in this fast-growing market, soon emerging as a leading choice among business and leisure travelers,” said Mr. Chris Oshiafi, Group Managing Director of Pan African Capital Plc and Chairman of Eagle Hospitality and Leisure Limited.

POINT 3: Four Points Benin City offers 176 spacious guest rooms and suites along with exciting food and beverage options including an all-day dining restaurant, a pool bar and the brand’s signature Best Brews™ program featuring local beers at the lobby bar and lounge – the ideal spot to watch sports matches and unwind with friends and colleagues.

Other hotel facilities include a state-of-the-art 24-hour fitness center, an outdoor pool, 400 square meters of flexible meeting spaces and a fully equipped business center.

The hotel will provide all of the brand’s defining elements including the signature Four Points bed, complimentary bottled water in all rooms and suites, fast and free Wi-Fi throughout the hotel, and an energizing breakfast with fresh coffee that helps guests start and end the day right.

POINT 4: “Responding to the demand for affordable yet innovative lodging options is core to our development strategy,” said Neil George, Senior Vice President Acquisitions & Development, Starwood Hotels & Resorts, Africa & Middle East.

“Four Points has the largest number of rooms in Starwood’s global pipeline and its compelling blend of comfort, style and affordability make the brand increasingly attractive for owners and developers.”
With over 200 hotels in nearly 40 countries around the world, Four Points continues to penetrate new markets, globally.  The brand is on track to expand its portfolio of rooms by more than 50% in the next five years.

Africa, Middle East PC Market Falls 13% in Qtr2

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The Middle East and Africa (MEA) PC market experienced a 13.3% year-on-year decline in shipments in the second quarter of 2016 to total 2.9 million units, according to global technology research and consulting firm International Data Corporation (IDC).

While this is a continuation of a long-running tend, the overall decline seen in Q2 2016 was the slowest in the past five quarters. When segmenting the market, notebook shipments fell 11.4% to total 1.7 million units, while desktops suffered a sharper decline of 15.7% to total 1.2 million units.

“The speed of the market’s slump was slowed by the growth seen in countries such as Turkey, Egypt, Morocco, and Tunisia,” says Fouad Charakla, Senior Research Manager Personal Computing, systems, and infrastructure solutions at IDC Middle East, Africa, and Turkey.

“But some key markets experienced significant declines, with Nigeria’s shipments suffering the biggest fall at 63.4% year on year, while the Saudi PC market almost halved in size. Other key markets to experience notable declines included the Rest of Middle East sub-region (Iran, Iraq, Syria, Yemen, Palestine, and Afghanistan) and the smaller Gulf markets (Bahrain, Oman, Kuwait, and Qatar). The reasons for these declines vary from country to country but include political instability, currency issues and fluctuations, security concerns, low oil prices, and high levels of inflation.”

Another key reason for the overall decline was a significant slowdown in consumer demand, caused primarily by the on-going shift away from PCs towards tablets and smartphones. This shift is particularly pronounced in the consumer segment, although home users continued to account for the majority of PC demand in the region.

The market continued to see some consolidation in terms of vendor share, with the top five players combined gaining share both quarter on quarter and year on year. Indeed, the top three vendors – HP Inc., Lenovo, and Dell – accounted for over 60% of overall PC market share in Q2 2016, and over 70% of demand stemming from the commercial segment.

Notebook vendor Toshiba has all but exited the region’s PC market, with the vendor recording only a few shipments in just one country during the quarter.

Despite losing market share from Q1 2016, HP Inc. was once again the region’s leading PC vendor by a significant margin, courtesy of its strong distribution and channel network. Lenovo retained its position at number two, dominating the consumer segment with its strong presence in the retail space.

Dell ranked third, experiencing notable growth within both the corporate and SMB segments, while fourth-placed ASUS was the only player among the top five to increase its shipments year on year. The vendor continues to focus on the consumer segment, which is where it experienced gains. Acer suffered the sharpest decline of the leading vendors, after suffering intense competition in the consumer space.

“Demand in the MEA PC market will continue to be inhibited by a variety of factors over the coming quarters,” says Charakla.

“However, the market will decline at a slower rate than previously experienced. It is worth noting that IDC’s forecast for Turkey, the single biggest market in the region, has been revised significantly downwards for the second half of 2016 due to the insecurity and instability that has followed July’s failed coup attempt. Post 2016, the MEA PC market will likely return to a slow growth trend as PC penetration in certain parts of the region is still relatively low and we expect IT adoption in general to continue increasing steadily.”

Standard Bank Predicts Increased M&A Activity in African Telecom, Media, Technology

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Standard Bank, Africa’s largest bank by assets, is partnering with international news and events provider TMT Finance for the inaugural TMT Finance Africa in Lagos 2016 Conference, which is bringing together the leading decision makers in African telecoms, media and technology (TMT) to Lagos on September 20, 2016.
The event will feature over 60 key C-level speakers from the most active and innovative companies, investors and advisers in Africa, including: IHS Towers, Airtel, Standard Bank, Etisalat, MTN, Vodacom, Africa Internet Group, Ringier, iRoko, MainOne, iPNX, Spectranet, Fibersat, Citi, Convergence Partners, Standard Chartered PE, Carlyle, Africa Capital Alliance and Emerging Capital Partners.
“As one of the leading TMT banks in Africa, we are excited to partner with TMT Finance for this event, which will bring the key telecom, media and technology companies, investors and advisers to Lagos in Nigeria,” said Standard Bank’s Global Head of TMT, Nina Triantis, who will be speaking on the TMT M&A Panel at the conference in one of the key sessions of the day.
The event comes at a time of accelerating investment, innovation and M&A activity across Africa, and in particular Nigeria, with Lagos widely viewed as the central hub for technology innovation and investment in Africa.
“Investment and M&A in TMT continues to be especially active in Africa, with many companies across the continent considering strategic options, growth along diverse verticals, private debt and equity financing rounds, M&A, and public listings,” said Standard Bank’s Triantis.

“The debt markets continue to be supportive for the right companies in Africa, despite macro challenges in many African countries as well as global uncertainty, though the funding currency and medium will inevitably reflect these challenges,” she added.
Current deals in Africa being reported by TMT Finance News include MTN’s Nigerian IPO, the sale of South Africa’s Neotel to Liquid Telecom, Millicom’s strategic review of its African assets, several fibre investment projects and fundraisings, and the potential listing/ sale of Nigerian fintech firm, InterSwitch.
The conference includes five Leadership Panel Debates, five Visionary Keynote Speeches, 8 Peer to Peer Round Tables and Five Networking Sessions.
Key session themes announced include: Telecom Leadership Africa: Broadband Infrastructure Investment; Digital Africa; Mobile Infrastructure Strategies; Mergers and Acquisitions; Private Equity Africa Roundtable; Regulation and Policy; Financing Telecoms; Broadband Infrastructure; Investing in Mobile Data and Services; Mobile Banking, Fintech and M-Health; and Media and Convergence.

Facebook CEO Visits Nigeria to Witness Africa’s Tech Revolution

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facebook

Facebook CEO, Mark Zuckerberg visited Nigeria this week on his first trip to Africa, using his time in the country to visit the Yaba technology hub in Lagos, meet with developers and partners, and explore Nollywood.
Zuckerberg is in Nigeria to listen and learn and take ideas back to California on how Facebook can better support tech development and entrepreneurship across Africa.
One of his first stops on the trip was to visit a ‘Summer of Code Camp’ at the Co-Creation Hub (CcHub) in Yaba, known as the Silicon Valley of Nigeria.
CcHub opened in 2011 and at the time didn’t even have an office. Five years later, they fill three floors and the roof of a building. At CcHub, people can learn how to code, developers can get help launching their first products and find mentors and funding.
At CcHub, Zuckerberg met with developers like Temi Giwa, who runs a platform called Life Bank that makes blood available when and where it is needed in Nigeria. Life Bank saves lives by mobilising blood donations, taking inventory of all blood available in the country, and delivering blood in the right condition to where it is needed.
After visiting CcHub Mark Zuckerberg, CEO of Facebook, said:
“This is my first trip to sub-Saharan Africa. I’ll be meeting with developers and entrepreneurs, and learning about the startup ecosystem in Nigeria. The energy here is amazing and I’m excited to learn as much as I can.
“The first place I got to visit was the Co-creation Hub Nigeria (CcHUB) in Yaba. I got to talk to kids at a summer coding camp and entrepreneurs who come to CcHub to build and launch their apps. I’m looking forward to meeting more people in Nigeria.”

Meeting Developers at Andela
Mark then went to Andela, an engineering organisation that is building the next generation of technical leaders in Africa.
Andela is a business that recruits the most talented technologists in Africa and shapes them into world-class developers through a four-year technical leadership program.

In the two years since it was founded, Andela has accepted just over 200 engineers from a pool of more than 40,000 applicants. Andela developers spend six months mastering a technical stack and contributing to open source projects before being placed with global technology companies as full-time, distributed teammates, working out of Andela headquarters in Lagos and Nairobi.
Earlier this year, the Chan Zuckerberg Initiative invested in Andela after being impressed by the company’s innovative model of learning and its drive to connect the global technology ecosystem with the most talented developers in Africa.
Seni Sulyman, Director, Andela Lagos, said: “We are excited and honored to welcome Mark Zuckerberg to Lagos. His visit reinforces not only his support of Andela’s mission, but his belief that indeed the next generation of great technology leaders will come out of Lagos, Nigeria and cities across Africa. Andela has created a platform for passionate, driven software developers and engineers to break into the global tech ecosystem, but the barriers to entry are still very high. Mark’s visit demonstrates to all Nigerian developers and entrepreneurs that they’ve caught the attention of the tech world, and they are capable of succeeding on a truly global level.”
At the end of the day, Zuckerberg stopped by an Express WiFi stand in Lagos owned by Rosemary Njoku.

Facebook’s Express WiFi lets entrepreneurs like Rosemary set up a hot spot to help their community access apps and services built by local developers.

Great Nigeria Insurance Settles N700m Claims in 6 Months

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Cecilia Osipitan, MD/CEO, Great Nigeria Insurance Plc
Cecilia Osipitan, MD/CEO, Great Nigeria Insurance Plc

Great Nigeria Insurance Plc, one of the foremost composite underwriting firms in the country has again shown avowed commitment towards prompt claims settlement. The insurance company recently released its claims record detailing total claims paid between January and June 2016.

According to a statement from the company, over N0.7 billion was paid out in claims settlement in six months. General Business accounted for over 19% of this figure while Life insurance business constituted about 80% of the total claims settled within the period under review.

While commenting on the Claims report, the Chief Technical Officer, Mr. Folusho Alliyu stressed the Company’s affirmed commitment towards claims settlement. He equally mentioned that the continuous existence of any underwriting firm depends largely on its ability to fulfil its obligation to its customers as and when due.

In his words: “Prompt claims settlement is not just an attribute but a culture that has been adopted by all personnel in Great Nigeria Insurance Plc; we do not intend to fall short of this obligation and we will continually strive to make good our promise of exceptional service delivery at every point in time”. Finally, he encouraged Nigerians to imbibe the Insurance culture as a vital part of their daily existence.

Also lending her voice, the Managing Director/CEO, Mrs. Cecilia O. Osipitan said that insurance works on the promise to pay compensation for any insured in the course of any eventuality. She urged all policy holders to ensure the immediate report of any loss experienced to the company to facilitate prompt settlement.

She further mentioned that Great Nigeria Insurance Plc has overtime upgraded on its processes and Information Technology infrastructure having realised that improved real time and cutting-edge technology in pushing the frontiers of its operations cannot be undermined.

Mrs. Osipitan stated that the company has in place a responsive claim process which ensures that customers do not go through any stress in getting their claims settled.

“The processes involved from the moment a claim is reported to the period the customer receives the cheque have been made as seamless as possible.”

She said that it is almost impossible for any genuine claim not to be paid.

Great Nigeria Insurance Plc continues to stay true to its vision of being the insurance company of choice for keeping promises to stakeholders by providing world class insurance services through prompt claims settlement, superior customer service as well as exceptional service delivery.

Great Nigeria Insurance Plc is poised to become the best underwriting firm in the country in the nearest future.

AfDB, Japan Unveil $3bn Anti-Poverty Private Sector Initiative in Africa

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Akinwumi Adesina, AfDB President

The African Development Bank (AfDB) and the Government of Japan announced today they have set a joint target to provide US$ 3 billion for private sector development in Africa during the next three years, substantially increasing the resources devoted to boosting economic growth and fighting poverty in the region. The resources will be provided under the third phase of the Enhanced Private Sector Assistance for Africa (EPSA) initiative.

Japan will target to provide US$ 1.5 billion over 3 years through the Japan International Cooperation Agency (JICA). The AfDB expects to finance at least an equal amount. On top of this, Japan is ready to provide an additional special allocation of US$ 300 million for co-financing with the AfDB to help African countries access the best low emitting clean coal technologies available.

“AfDB and Japan have agreed today to upgrade the joint EPSA initiative, which has been at the core of our long-standing partnership, helping boost private sector-led growth in Africa”, said Japan’s State Minister of Finance Taku Otsuka. “We look forward to continued close collaboration with the AfDB so as to further accelerate the development of the African private sector, by delivering resilient and high-quality infrastructure and strengthening the health system.”

“This is a significant expansion of our support to the private sector, which will play a critical role in Africa’s economic transformation,” said AfDB President, Akinwumi Adesina.

“The scaling up of the Enhanced Private Sector Assistance for Africa Initiative will help increase access to electricity, boost the industrialization of the continent and improve the quality of millions of lives in Africa. These are all key components of our High 5s. We are proud to partner with Japan, one of our key strategic partners, in this endeavor.

The High 5s are the Bank’s five areas of focus to advance the agenda of Africa’s economic transformation over the next 10 years: Light up and Power Africa, Feed Africa, Integrate Africa, Industrialize Africa, and Improve the quality of life for the people of Africa.

Announced at the first-ever TICAD Summit held on African soil, the third phase of EPSA will focus on economic infrastructure (transport, energy, etc.) as well as social infrastructure (health, education, nutrition). EPSA was launched at the G8 Summit in Gleneagles in 2005.

Its scope has been expanded to include sectors such as education and health, which also contribute to promoting private sector development. Japan provided the equivalent of US$ 1 billion of concessional loans under EPSA-1 (2005-2011) and is providing US$ 2 billion under the current EPSA-2 (2012-2016).

The Enhanced Private Sector Assistance for Africa Initiative has played a key role in the development of regional infrastructure. It has helped increase the AfDB’s private sector operations, which have expanded nearly ten-fold over the lifespan of the first phase and almost doubled since the start of EPSA 2.

 

Background

The Enhanced Private Sector Assistance for Africa (EPSA) Initiative is a framework to support implementation of the AfDB’s Strategy for Private Sector Development. Designed in partnership with the Government of Japan, it draws on successful experiences in Asia and around the globe. It is built around three components:

  • The Accelerated Co-Financing Facility for Africa(ACFA) is a sovereign co-financing arrangement between AfDB and JICA, where JICA lends on preferential terms to borrowers under this scheme.
  • The Non-Sovereign Loan (NSL) is a line of credit from JICA to AfDB on concessional terms to help fund the Bank’s private sector operations.
  • The Fund for African Private Sector Assistance(FAPA) is a Multi-Donor Trust Fund for technical assistance and capacity building for the Bank’s public and private sector clients. The Government of Japan is the major contributor to the Fund, which is managed by the AfDB.

World Bank, Partners Launch $24bn Universal Health Coverage in Africa

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un

The Sixth Tokyo International Conference on African Development (TICAD-VI), African heads of state and partners vowed to accelerate progress toward universal health coverage (UHC) in Africa.

To help countries implement their health reforms, the World Bank and the Global Fund to Fight AIDS, TB and Malaria (Global Fund) committed to invest $24 billion in Africa over the next three to five years.

The announcement was made ahead of the two-day TICAD conference, which is Japan’s flagship program for African development. One of the focal points at this year’s conference is expanding UHC in Africa.

African countries can become more competitive in the global economy by making several strategic investments, including investing more in their people, their most prized resource,” said Jim Yong Kim, President of the World Bank Group“A critical part of this commitment is to accelerate progress on universal health coverage—ensuring that everyone, everywhere has the opportunity to live a healthy and productive life.”

The World Bank and the World Health Organisation (WHO), together with the government of Japan, Japan International Cooperation Agency, the Global Fund, and the African Development Bank also launched UHC in Africa: A Framework for Action, which provides a big-picture view of UHC in the region and identifies key areas that will be critical to achieving better health outcomes, such as financing, service delivery, targeting vulnerable populations, mobilizing critical sectors and political leadership.

At the G7 Ise-Shima Summit in May, bearing this TICAD in mind, I took initiative in leading the discussion on reinforcing the global health architecture, which will strengthen responses to public health emergencies, and on promoting UHC, which will also contribute to crisis preparedness,” said Shinzo Abe, Prime Minister of Japan.

‘UHC in Africa’ will present guidelines and concrete framework for action that will serve as references for achieving UHC under the ownership of respective countries, as well as by cooperation among the international society.”

The funding announcements by the World Bank and Global Fund are one of several steps in the years ahead toward UHC in Africa. To that end, the government of Japan will support the World Bank and WHO’s annual report to track UHC progress in Africa.

The World Bank and WHO have agreed to hold in 2017 in Tokyo a high-level annual meeting on monitoring progress toward UHC in Africa.

Through its International Bank for Reconstruction and Development and International Development Association windows, the World Bank Group expects to contribute $15 billion in the next five years to investments that are critical to UHC, including through the Global Financing Facility, the Power of Nutrition, early childhood development, pandemic preparedness, targeting the poor, crisis preparedness and response, and leveraging the private sector. The commitment assumes a successful IDA 18 replenishment.

The Global Fund’s $9 billion commitment for 2017 through 2019 includes $6 billion of investments in programs that treat and prevent HIV, TB and malaria, and also includes $3 billion of investments in systems for health such as strengthened procurement systems and supply chains, improved data quality and data management systems, and strengthened human resources for health. The commitment assumes a $13 billion Global Fund replenishment, which launches in September 2016.

“Reducing and preventing HIV, TB and malaria is critically important to alleviate the burden on health systems, but in order to accelerate universal health coverage and all of the health SDGs, we also are actively investing to build resilient and sustainable systems for health,” said Mark Dybul, Executive Director of the Global Fund to Fight AIDS, Tuberculosis and Malaria.

Although the evidence is clear that investing in health pays dividends for countries, challenges remain in the delivery and financing of health care.

In 2014, African countries spent about $126 billion of domestic funding for health, and WHO estimates that an additional $65 to $115 billion in domestic funding can be mobilised annually over the next ten years,” said Margaret Chan, Director-General of the World Health Organization.

WHO is working with countries in Africa to generate those funds and help them shape the policies that will put them to best use.”

The World Bank Group, government of Japan and private sector partners recently launched the Pandemic Emergency Financing Facility, an innovative, fast-disbursing global financing mechanism designed to protect the world against deadly pandemics, which will create the first-ever insurance market for pandemic risk. It also will promote greater global and national investments in preparing for future outbreaks and strengthening national health systems.

IEI Anchor Pension: N55bn Pension Assets, 90,000 RSAs, 23 States

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L-R: Mr. Modestus Anaesoronye, President, National Association of Insurance and Pension Correspondents [NAIPCO], Mr. Glory Etadiovue, Managing Director/CEO, Jolaade Oduntan, Head, Business Development & Strategy and Mr. Cyril Ojo, Regional Manager; all of IEI Anchor Pension Managers Limited at NAIPCO AGM in Lagos yesterday.
L-R: Mr. Modestus Anaesoronye, President, National Association of Insurance and Pension Correspondents [NAIPCO], Mr. Glory Etadiovue, Managing Director/CEO, Jolaade Oduntan, Head, Business Development & Strategy and Mr. Cyril Ojo, Regional Manager; all of IEI Anchor Pension Managers Limited at NAIPCO AGM in Lagos yesterday.
IEI Anchor Pension Managers Limited is currently managing pension assets of over N55 billion in its portfolio from 90, 000 Retirement Savings Account [RSA] holders in 23 states of the federation.

Mr. Glory Etaduovie, Managing Director/CEO, IEI Pension Managers Limited said the company’s growth pace is faster now as it continues to gain more ground in the pension market. He said the growth plan of the company is aggressive increase in the number of RSAs.

“Effective market delineation, deployment of our marketing philosophy and drilling down, marketing tools to promote presence and efficiency and presence and importantly, good staff motivation and a sense of security are also part of the growth plan.

Investment wise, the regulator plays a key role. We have major investment guidelines. This ensures relative fund safety. This is the future of many people. So, there is no room for un-necessary adventure.

However, the market presents good opportunities and initiatives – a good blend of Bonds, Treasury Bills, Money market and other safe investments. Private Equity and Infrastructure development are new areas of gradual action.”

On market spread, the IEI Anchor Pension CEO said:

“We have good presence in 23 states of the federation. The market presently has two major strata – private and public sectors.

The public sector includes the states and federal. Not many states have latched on to the Contributory Pension scheme, though. We are also positioning in areas with strong potentials. Our RSA client size is over 90, 000 contributors.”

He added that IEI Anchor Pension is competing effectively in the market. “One thing stands out, the customer remains the ultimate and determinant of direction. Our size makes us nimble and smartly responsive.

This is one advantage we wield. Everyone gets deserved attention. This we pursue to achieve through training and retraining of staff. An informed and engaged staff is a real asset.”

He described the pension industry as interesting and exciting. “Regulation is strong. The market is only about 30 percent  explored. It is also a form of social service. You also derive strong satisfaction when you support the aging with good service, as well as prepare them for graceful retirement. The industry is not over – populated.

This is good for control and sanity. If there is ease of entry and exit, it would create grave danger for it. Contributory pension activities are relatively new. It presents its own challenges. But the collaborative style of the industry makes responses better put together. It is getting stronger and stronger.

It is going to be a critical tool for development shortly. It is positioning. The government is aware of this and seeing it as a partner in progress. It is thus cautiously positioning for collaborative activities. There is a serious gap in infrastructure. This affects other growth and development.”

Etaduovie listed ICT as having a critical role in the success of the pension industry due to the large number of people, records, funds and other statistical details for analysis and decision making.

“This greatly reduces human errors and increases efficiency and effectiveness. It also creates respect for the industry at large, if there are less complaints.The industry regulator recommends at different intervals, new ICT needs. This is apart from individual corporate initiatives

We have deployed much of the needed ICT needs. Presently, we are focused on this for further improvements and action. This enhances customer service, enquiries and enhanced interaction for better satisfaction. People want constant up-dates as to the safety of their money and what the money is doing.”

On the challenges facing the new pension scheme, Etaduovie said:

“These are acceptability, transition, harnessing the informal sector and the economy. Some persons of the old scheme are yet to come to terms with the contributory scheme. Such ones, if in good position stand in the way of implementation. Transition challenges for states because of the old scheme and backlogs.

In other instances, we have the bureaucracy of domesticating the PRA in the states.  The poor business environment is also affecting private section adoption and implementation. Some who do, do not remit the staff deductions or theirs as well. This is immoral and they risk penalty from the regulatory body.

All of these challenges and others are constantly being reviewed by the industry. The Director General and her team are keeping close eyes on details, as the industry matures.”

Nigeria Seeks $21bn China Loan to Finance Budget

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Udoma Udo Udoma, Minister of National Planning
Udoma Udo Udoma, Minister of National Planning

Nigeria’s Minister of Budget and National Planning and Senator Udoma Udo Udoma announced following its visit to China last July, that the country was in talks with the Chinese import-export bank China Exim Bank for a $21 billion loan to finance its 2016 budget and develop new infrastructure projects.

The loan, if secured, should allow the country to plug its budget deficit which has been estimated at $11.1billion and finance infrastructure projects to boost economic growth.

According to the same source, the Chinese bank has already granted Nigeria a loan of $1.8 billion. Moreover, in April 2016, during President Buhari’s visit to China, Beijing agreed to lend the West African nation $6 billion to finance its infrastructure development programme.

Nigeria, which recently lost its position of leading economy of the continent, is presently facing an economic crisis fostered by Naira’s plunge, the drop in oil prices, sabotaging of oil infrastructures, capital outflow and terrorism.

The nation’s overall debt stood at $55 billion on December 31, 2015 of which $10.9 billion of external debt and $44 billion of internal, according to the country’s debt management Bureau.

The financial aid which is part of China’s commitment to invest $60 billion in Africa to support 10 cooperation progammes over three years, at the last Forum on China-Africa Cooperation (FOCAC) held in Johannesburg in December 2015.

Alain Okpeitcha

FG to Invest $1.5bn in National Transmission Power Network

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The Federal Government of Nigeria said it will inject in its national power transmission network $1.5 billion by 2019.

The investment falls under a 5-year extension programme implemented by the Transmission Company of Nigeria (TCN) and which aims to increase the network’s transmission capacity to 11,500 MW.

This will be achieved through the step-by-step implementation of 59 projects. TCN has indeed increased in 2016, its capacity from 5,500 MW to 6,000 MW. It now wishes to raise intermediate transmission capacities from 7,500 MW in 2017, to 8,200 MW in 2018.

Cost for associated works was estimated to $7.5 billion. Besides government’s contribution of $1.5billion, the TCN hopes to secure around $3.4 billion from international institutions, and via loans and subsidies. It will add to these, $2.6 billion from its own revenues.

The various contributions are part of a collective effort by actors of the Nigerian power sector to improve it.

To this end, the Nigerian Bulk Electricity Trading and the Central Bank of Nigeria are currently in talks for an additional funding of about $547 million which will be used to boost revenue of power developers that serve the nation.

Nigeria recently lost its position of largest African economy, and presently produces around 4,100 MW for an estimated demand of 12,000 MW.

Gwladys Johnson

Business, Risk Leaders to Meet in Lagos Oct 2O

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Leading risk management and insurance players, including key regional insurance regulators, from across West Africa will be taking part in Commercial Risk Africa’s Risk Frontiers – West Africa: Driving the risk management agenda one-day seminar in Lagos on October 20th, 2016.

Economic growth in Sub Saharan Africa (SSA) has been one of the defining trends in frontier markets. Economies that had been dormant for years have emerged to attract billions of pounds of foreign investment into their natural resources, infrastructure and consumer goods sectors.

Despite declining oil prices and an economic slowdown in China, the economy of SSA is still set to grow. It is also the fastest growing insurance region, behind emerging Asia, with premium growth of 4.5% to 5% expected in 2016 and 2017.

However, as the business environment changes at a rapid pace, it is essential for business to maintain a disciplined risk management approach. This unique one-day event provides an unparalleled opportunity for risk practitioners to interact with specialists from across the world.

Led by insurance regulator, Mohammed Kari from NAICOM, the event will focus on the challenges for businesses in maintaining compliance in a fast changing regulatory environment.

Delegates will also hear from the experts about how to manage the rapid depreciation of African currencies, both from a local and international perspective.

Other issues to be explored include:

  • Political risk & political violence;
  • Global legacy and sustainability issues;
  • Broad financial risk;
  • Operational risks; and
  • Risks around human capital and the skills gap.

The unique event will bring together risk practitioners from across the region to meet with both local and international experts, to share best practices and exchange their knowledge.

To ensure you don’t miss out on this free to attend event at the Four Points by Sheraton, Victoria Island, register at: http://www.commercialriskeurope.com/rfwestafrica16.