WorldRemit, a leading online remittance provider, is calling for the urgent restoration of money transfers to Nigeria as draconian new rules leave virtually all money transfer operators (MTOs) unable to provide services to the West African country.
Only three companies – Western Union, MoneyGram and Ria – will be able to continue operations, following an extreme and unexpected move by the Central Bank of Nigeria.
WorldRemit, in common with all other international MTOs, has been instructed by its local correspondents that transfers to Nigeria will no longer be processed and is, accordingly, suspending services immediately.
WorldRemit founder and CEO, Ismail Ahmed said: “This move is arbitrary, inexplicable and hugely detrimental to the Nigerian diaspora who rely on hundreds of money transfer companies and banks, providing them with choice, convenience and competitive pricing.
“Even now, as we suspend our service, there is no clarity on why this sudden change has happened. If it is on the basis of new rules, there was no warning. If it is a re-interpretation of old rules, local correspondent networks and banks should have been forewarned.
“This reverses the progress made by the country when the Nigeria Central Bank banned Western Union’s exclusivity agreements that had created a near-monopolistic position in the international money transfer market. Western Union controlled 78% of the market share when CBN outlawed exclusivity agreements with local banks.”
Until now, money transfer operators such as WorldRemit operated via partnerships with licensed local correspondents in Nigeria, enabling transfer of funds to local bank accounts – providing a more efficient service than the SWIFT infrastructure.
WorldRemit has also raised concerns about a 2015 memorandum from the Central Bank of Nigeria, setting out minimum requirements for companies offering international Mobile Money transfer services to Nigeria.
The guidelines specify that any company offering Mobile Money transfers must have minimum net assets of $1bn and have been operating for more than 10 years.
WorldRemit is the world leader in transfers to Mobile Money accounts and had been planning to launch remittances to Mobile Money services in Nigeria.
“It looks like all systems in Nigeria are currently geared against encouraging new entrants and competition in the mobile remittance markets. That is worrying in the extreme,” said Ismail Ahmed.
WorldRemit sends more than 40,000 money transfers to Nigeria every month.
Nigeria received more than $20bn in remittances annual from migrants around the world.
WorldRemit Seeks Urgent Restoration of Money Transfers to Nigeria
Mobile Technology Connects Africa with Global Markets
The growth of mobile phones and services across the African continent has instantly brought many Africans into the digital age and connected them to worldwide knowledge and services. Home to one of the world’s fastest growing middle classes, Africa has seen multiple opportunities emerge for both local and global retailers from this digital growth.
“Currently, more than 60% of individuals in sub-Saharan Africa have access to a mobile phone [1]. As the adoption of mobile technology and increasing internet penetration in these countries continue to grow, so does the opportunity for retailers to reach new customers in the region,” says Hennie Heymans, CEO, DHL Express Sub Saharan Africa.
The World Bank’s 2016 World Development Report, Digital Dividends [2], notes that the increased access to digital technologies brings more choice and greater convenience, and that through inclusion, efficiency and innovation, access to mobile provides opportunities that were previously out of reach.
With an established network of over 5, 500 retail outlets across SSA, DHL Express provides individuals and SMEs greater access to global opportunities.
Heymans also adds that the market opportunities in Africa are ripe. With the rise of mobile commerce and increased competition, this drives the demand for advances in technology and logistics, to ensure real-time supply chain visibility and improved quality, speed and precision of delivery services within African markets.
“To meet this growing demand, we have introduced Motorola TC55 scanner units in 26 countries across Sub-Saharan Africa, as part of our Global Courier Application deployment. These pocket sized Android-based scanners come equipped with touchscreens, built-in location services as well as GPS navigation capabilities, enabling customers to track parcels in real-time. With the new scanner units, customers are able to sign on the device’s touchscreen and within 15 minutes, the electronic proof of delivery will be made available on the DHL.com website.
“As a network business, it is essential that our shipment data is captured accurately and in real-time. This data can also be used to measure customer satisfaction against company KPIs, as well as for process improvements or route adjustments to increase efficiency and improve customer service.
With this new technology, local and global retailers can increase the speed at which shipments are processed and delivered to their clients, thus improving efficiency along the value chain.
“With operations across 51 markets in Sub-Saharan Africa, servicing over 40,000 customers, delivery efficiency is an important factor for us. With our investment in technology and retail touch point strategy across the region, we seek to leverage the huge potential in Africa, to ensure that citizens have access to the opportunities and services that mobile presents to the region,” concludes Heymans.
Africa Pension Awards 2O16: Call for Nominations
Looking for Innovation in Pension
African countries now have the platform to showcase their achievements in pensions!
The ‘Africa Pension Awards’ has been introduced to stimulate innovative practices in the administration of pension and social security amongst African countries by recognising excellence, achievements and commitment to the development of pensions and social security in Africa.
This event will create the much needed setting for African countries to showcase innovations and developments in the African pension and social security space.
It offers a unique opportunity for African countries to benchmark their achievements and foster positive local and global perception of the African Continent.
The Award Ceremony, which will herald the opening of the 3rd World Pension Summit ‘Africa Special’, will be held on 27 September 2016 at the Congress Hall of the Transcorp Hilton Hotel, Abuja, Nigeria.
The contest for the Africa Pension Awards 2016 is open to both Pension Fund Regulators and Pension Funds (i.e. Operators) in Africa, who have deployed innovative ideas to record significant achievements in their delivery of pension and/or social benefits.
The Africa Pension Awards 2016 will focus on the following five (5) Award Categories:
Innovation in Corporate Governance Deployment of Innovative Practices to Facilitate Wide Coverage and Inclusion Socio-Economic Impact of the Pension or Social Security System Innovation in Risk Management Innovations on Information, Communication and Technology Platforms
for Improved Customer Service Delivery
DEADLINE FOR ENTRY: 30 AUGUST 2016
Allianz, SOS Children’s Villages Focus on Social Inclusion
Allianz SE and SOS Children’s Villages announced their global partnership at a joint event yesterday.
The initial three-year partnership will see Allianz companies across the globe lend their support to SOS Children’s Villages.
In addition to projects to provide children with individual support, Allianz will be contributing its risk management expertise, for example by helping to turn children’s villages into safe ports of call for local communities in the event of a catastrophe.
Allianz, which operates in 15 countries in Africa has been providing young people with targeted support for more than 20 years now. “As an insurer and investor, we think and plan ahead longer-term than many others do,” said Oliver Bäte, CEO of Allianz SE.
“With our ‘Encouraging Future Generations’ social program, which has now entered into its first global partnership with SOS Children’s Villages, we are seeking solutions for challenges relating to social inclusion. Together with the SOS Children’s Villages, we are encouraging young people worldwide to shape the future in a sustainable manner.”
Richard Pichler, Special Representative of SOS Children’s Villages International, said: “We currently provide 80,000 children and teenagers in 134 countries (47 in Africa) with a safe place to call home. As a result, we are delighted to have secured the support of Allianz, a global partner that shares our values and objectives and can also contribute complementary knowledge and skills. We want to achieve more together by launching training programs for young people, improving the opportunities open to them on the labor market, dealing with risk provisions within communities… to mention only a few of the areas we want to focus on.”
The joint event included a podium discussion on “What contribution can the corporate sector make to social inclusion?” Experts from both organisations had a lively discussion on security and the fulfilment of basic human needs as the fundamental prerequisites for social inclusion, as well as on the need for the corporate sector to show a commitment to social issues.
More than 12,000 Allianz employees worldwide had taken part in the first Allianz World Run to mark the beginning of the partnership. In the period between May and the end of July, they covered a distance of 1.4 million kilometers to raise funds for SOS Children’s Villages, the equivalent of circling the globe 34 times, and raised EUR 600,000 that will be used to finance children’s village projects in twelve countries (Argentina, Austria, China, Colombia, Croatia, Germany, Indonesia, Ivory Coast, Luxembourg, Mexico, Syria, Thailand).
The Group set a new world record in connection with the Allianz World Run: “Longest distance covered by one team in 90 days”. Allianz World Run pictures from across the globe were also used to break the Guinness World Records for the “longest line of photographs” (8,470 images, 1,225 meters).
Lufthansa Reports €15bn Revenue in 1st Half 2016
Lufthansa reported that total group revenue for the first half of 2016 amounted to €15.0 billion euros, a 2.1% decline on the prior-year period.
Despite higher passenger volumes, traffic revenue was down 4.5 per cent due to strong pricing pressures in both the airline and the cargo businesses. The net result for the first half of 2016 amounted to €429 million (prior year: €954 million), slightly below the prior-year result excluding one-off effects.
In the first quarter 2015, the result included a positive effect amounting to €503 million from the early conversion of the JetBlue convertible bond. First-half cash flow from operating activities declined 13% to €2.2 billion, reflecting consumers’ hesitancy to make forward bookings.
But with investments for the period showing an even bigger decline, free cash flow still increased to €1.1 billion (prior year: €1 billion).
Despite significantly higher passenger volumes, traffic revenue was 3.9% down compared to 1Q 2015.
“The Lufthansa Group achieved a solid result for the first half-year,” says Carsten Spohr, Chairman of the Executive Board & CEO of Deutsche Lufthansa AG. “We are making good progress in implementing our Three-Pillar-Strategy. We see progress in all the areas where we can influence the changes ourselves. And this is particularly true for our cost structures and the growth of Eurowings, the development of which is progressing well.”
“At the same time, our industry has to prepare for a difficult second half-year”, Spohr continued.
“The terrorist attacks in Europe and also the increasing political and economic uncertainties are having a tangible impact on passenger volumes. The forward bookings, in particular for our long-haul services to Europe have declined significantly. We expect the high pricing pressure to continue.”
3rd Annual Africa Bancassurance MasterClass 2016
Theme: Strategy, Marketing and Global Best Practice for Banks and Insurers
We are delighted to use this opportunity to invite organizations to nominate participants to attend this Africa Bancassurance Masterclass, the flagship training programme of Africa Bancassurance Academy (a.k.a. School of Bancassurance). Back for its 3rd year, the Africa Bancassurance Masterclass is Africa’s top meeting place for bancassurance practitioners.
Bancassurance is first and foremost a distribution strategy – for both banks and insurers. Distribution is the most dynamic component of the retail financial services mix, what works today may be obsolete tomorrow and competitors are always looking to gain an edge in the distribution channels that Bancassurers operate in. Taking time to acquire a deeper appreciation on how Bancassurance distribution best practice for both insurers and banks is evolving makes strategic good sense.
Bancassurance continues to develop and remains one of the most exciting and innovative areas in the Banking and Insurance industries across Sub-Saharan Africa and indeed around the world.
The Africa Bancassurance Masterclass features highly experienced international speakers, who will share best practice insight and wisdom, local and regional practitioners participating in daily panel sessions and attendees will also hear from the insurance and bank regulators for an update on their views on the conduct and practice of Bancassurance.
The Africa Bancassurance Masterclass provides bancassurance practitioners across Africa with the opportunity to explore key elements of bancassurance development and management in the region from a global perspective.
This continental financial services industry networking forum presents a significant opportunity for attendees to share knowledge and learn from the very best bancassurance experts from across the globe. You’ll join leading bancassurance practitioners from insurance, banking and non-bank financial institutions from across Africa seeking new ways to develop, manage and make the most of bancassurance distribution channel in the region.
This 2016 edition of the Africa Bancassurance Masterclass will look at how life and non-life insurance companies can unlock the sales potential within the bank branch network to optimize the full potential of insurance sales opportunities.
The programme insights will also provide answers to the questions that are fundamental to success in bancassurance such as: – What is the best bancassurance model? How do you address the issue of lack of ownership on driving insurance target by bank staff? What’s the best way to sell insurance in the branch? Who supplies the agent, the bank or the insurer? What products are best suited for bancassurance? Or, what is the next wave of innovation in bancassurance?
Topics will include:
· The next wave of innovation in Bancassurance
· Sales management in the Bancassurance channel
· Choosing the right products for Bancassurance
In short, it will be a full and exciting program that we are sure will prove to be a milestone in the development of Bancassurance in Sub-Saharan Africa.
KEY LEARNING OUTCOME
At the end of this course, participants will be able to:
· Acquire the necessary skills for selling bancassurance products.
· Increase people development and understanding of Bancassurance Business in sub-Saharan Africa.
· Learn how to leverage the distribution power of bancassurance.
· Improve market share and profitability of your bancassurance channels
· Strengthen strategic planning through global best practice insights
· Recognize the importance of transparency, compliance and customer focus in building sustainable Bancassurance distribution channels
· Aligning company and partner goals for mutual benefit and long term partnership
· Learn about emerging trends and opportunities in bancassurance
· Understand the characteristics of succesful bancassuracne products
· Development and understanding of bancassurance Business in sub-Saharan Africa.
· Learn the basics of banking and insurance and their inter-relationship.
· Understand the current legislative and regulatory framework.
· Acquire the skill to analyze customer’s financial position.
WHO SHOULD ATTEND
• Senior managers, sales leaders, marketing managers, branch management or product managers engaged in the execution of your organisation’s bancassurance strategy.
• Middle level managers and officers in insurance, banking and non-bank organization handling insurance and related matters.
• Officers for who job rotation is planned towards bancassurance.
• Officers who have recently joined the insurance and banking industry.
• Officers in non-insurance, organization handling insurance and related matters.
WHY YOU SHOULD ATTEND
Bancassurance is first and foremost a distribution strategy – for both banks and insurers. Distribution is the most dynamic component of the retail financial services mix, what works today may be obsolete tomorrow and competitors are always looking to gain an edge in the distribution channels that Bancassurers operate in.
Taking time to acquire a deeper appreciation on how Bancassurance distribution best practice for both insurers and banks is evolving makes strategic good sense.
World Bank Raises 2016 Oil Price Forecast to $43
The World Bank is raising its 2016 forecast for crude oil prices to $43 per barrel from $41 per barrel due to supply outages and robust demand in the second quarter.
Oil prices jumped 37 percent in the second quarter of 2016 due to disruptions to supply, particularly wildfires in Canada and sabotage of oil infrastructure in Nigeria. The revised forecast appears in the World Bank’s latest Commodities Markets Outlook and takes into account a recent softening of demand and the recovery of some disrupted supply.
“We expect slightly higher oil prices for the second half of 2016 as oil market oversupply diminishes,” said John Baffes, Senior Economist and lead author of the Commodities Markets Outlook. “However, inventories remain very large and will take some time to be drawn down.”
Despite the recovery of oil and many other commodity prices in the second quarter of 2016, most commodity indexes tracked by the World Bank are expected to decline this year.
This trend is due to persistently elevated supplies, and in the case of industrial commodities – which include energy, metals, and agricultural raw materials — weak growth prospects in emerging market and developing economies. However, most of the declines are projected to be smaller than expected in the April outlook.
Energy prices, which include oil, natural gas and coal, are due to fall 16.4 percent in 2016, a more gradual decline than the 19.3 percent drop anticipated in April. Non-energy commodities, such as metals and minerals, agriculture, and fertilisers, are expected to ease 3.7 percent this year, a more moderate contraction than the 5.1 percent retrenchment forecast in the previous outlook.
Metals prices are projected to fall 11 percent in the coming year, a sharper decline than the 8.2 percent drop forecast in April, reflecting weak demand prospects and new capacity coming on line. Agriculture prices are forecast to fall less than projected in April as a result of reduced harvests in South America and plateauing demand for biofuels.
Because energy constitutes more than 10 percent of the cost of agricultural production, movements in energy prices have been a major factor in the path of food prices, a special feature of the Commodity Markets Outlook says.
Energy prices fell 45 percent in 2015 and are projected to drop again this year. About one-third of the likely 32 percent drop in prices of grain commodities and soybeans from 2011 through 2016 is due to energy price declines.
Lower energy prices have also eased pressures to produce biofuels as an alternative energy source. Biofuels production has been an important driver of demand growth for food commodities in the past decade.
“Energy exporting emerging and developing economies have struggled to adjust to persistently low prices,” said Ayhan Kose, Director of the World Bank’s Development Prospects Group. “Partly because of the strong linkages between energy prices and agricultural commodities prices, agricultural producers can expect lower prices in an era of depressed energy prices.
Both energy and agricultural commodity exporting countries need to step up economic diversification efforts to bolster resilience to commodity price fluctuations.”
Interswitch Unveils Financial Inclusion Initiative
Interswitch, Africa’s leading Digital Payments and Commerce Company has formally announced the rollout of its Agent Network Business ‘Quickteller Paypoint’.
Interswitch Financial Inclusion Services (IFIS), trading as Quickteller Paypoint, has a mandate to build an extensive network of agents across Nigeria.
The objective includes improving access to financial services for the unbanked and under-banked Nigerians, by bringing a rich bouquet of these services closer to them.
Commenting on this initiative, Divisional CEO, IFIS, Mike Ogbalu said;
“It is common knowledge that agency banking in Nigeria is currently behind potential. Opportunities for the growth of financial services are in abundance and interestingly, our population remains an untapped strength, Interswitch is on a mission to positively impact the Nigerian economy with Quickteller Paypoint.”
“Beyond bridging the existing gaps in the adoption and availability of financial services for Nigeria’s unbanked and under-banked population, Quickteller Paypoint will be creating sources of consistent and additional income for agents and invariably help create levels of sustenance and economic balance for their families.
This will be achieved with the creation of a vast network of growing businesses to act as agents for the many e-payment services Quickteller offers. Business owners who desire an extra source of income, NYSC members, job seekers, and anyone who is seeking additional income, can all sign up to become a Paypoint agent.”
With currently over 500 – and growing – active agents in Lagos, Paypoint will be expanding to Ibadan, Port Harcourt, Abuja, Kano, and other cities, within the next few months.
Poised to unlock the value of agency banking and financial inclusion in Nigeria, the target is to grow a network of agents to 150,000 by 2020 and increase the availability of digital financial services in financially-excluded locations across the country from 44% to over 70% in the next five years.
We can recall that in December 2015 at the last Committee Of E-Business Heads Conference, which held in Uyo, IFIS was introduced to stakeholders in the e-business industry, and Head of e-Banking, Fidelity Bank, Adedeji Olowe had this to say;
“If there is a Nigerian organization capable of taking this on, it’s Interswitch. Just like they have been able to do with switching and linking the banks, I expect them to be able to make this work.”
Modelled to empower thousands of Nigerians, the initiative, which is open to all, will provide a source of income for the unemployed and an additional source of income for the employed.
NahcoAviance Reports N8.5bn Turnover in 2O15
The Nigerian Aviation Handling Company Plc [NahcoAviance] has reported turnover of N8.5 billion in the financial year ended December 31, 2O15. This compares with N8.1 billion realised in the same period of 2O14. The Profit Before Tax rose from N769.5 million in 2O14 to N796.8 million in 2O15.
Mr. Suleiman Yahyah, Chairman, NahcoAviance said at the company’s 35th Annual General Meeting AGM in Abuja that NahcoAviance remains profitable, maintained stability in its performance ratios with a sustained reasonable buffer and cash reserves to meet short-term challenges.
“In 2O15, Nahco maintained relative stability in its performance and operations. We handled a total of 39, 699 flights compared o 35, 557 flights handled in 2O14. This is an improvement of 11 per cent.”
Yahyah added: “The board therefore remains confident that with the consistent execution of our planned actions in 2O16 and strengthening our footprints in West Africa, Nahco will return to its double-digit growth path inspite of the short-term challenges of the Nigerian economy.”
The company proposed a dividend of N324.8 million which was duly approved by shareholders.
Tech Revolution: The Sage Vision for African Businesses
Sage, a market leader in cloud accounting software used its global Sage Summit 2016, held this week in Chicago, to outline its strong commitment to future technologies, with a focus on new and existing initiatives that power business growth.
At the world’s largest gathering of entrepreneurs and business builders, Sage CEO Stephen Kelly spoke about how Sage is levelling the playing field for entrepreneurs – and it’s just the start of the technology revolution all entrepreneurs and business builders of all sizes need to be a part of to compete and grow.
Investing in the Future with the Introduction of Sage Cloud
Following the investment of £139m on research and development during FY15, the Sage CEO used the keynote as a platform to set out how all Sage products will now be connected to the cloud, with new mobile, social, chatbot and the Internet of Things offerings in the pipeline for the entire portfolio.
“In a time of seismic technological change and digital invention, our smart people are using the smartest technology to reinvent and simplify business accounting,” says Anton Van Heerden, EVP and Managing Director, Sage South and Southern Africa.
“Our research teams are working on making concepts like the Internet of Things, machine learning, blockchain and data sciences into a reality for African businesses, accountants and partners. We are committed to helping African entrepreneurs exploit these game-changing technologies to win and grow.”
Industry Firsts – Leapfrogging the Competition
Another highlight was the official launch of Sage’s new accounting admin bot, Pegg a smart assistant that allows users to track expenses via their chosen messaging app – which currently boast more than 2 billion users worldwide – such as Facebook messenger and Slack.
Pegg removes the complexities and enables entrepreneurs to manage finances through conversation. By digitising information at the point of capture, it takes away the pain from receipts and expenses, eradicating the need for paper and data entry.
Pegg is available now in Beta, new users can register at HelloPegg.io.
Creating a Path to the Mobile Future
Sage also announced that Sage One, the online payroll and accounting software, is now optimised for iOS – Apple’s mobile operating system, and that it has become part of the Apple Mobility Partner Program. The iOS-optimised versions will enable customers using iPhone, iPad and Apple Watch for day-to-day business processes to work while on the move.
Sage has worked with Apple to completely redesign user interfaces to make the most of key iOS features like 3DTouch Location Services and TouchID. Sage will continue to work on including new iOS features to enhance user experience, interactions and usability.
Full-speed Ahead for Sage X3
Sage also highlighted the continued success of the Sage X3 business management solution with the launch of the new Sage X3 cloud release Update 10 and a growing ecosystem of cloud applications. Sage X3 saw its customer base grow by more than 29% globally since last year’s product update.
The new Sage X3 Update 10, available to Cloud customers further improves the solution functionality and user experience, reinforcing Sage’s commitment to help mid-size enterprises regain responsiveness and agility in managing complex operations.
Empowering Accounting Professionals with the Office 365 and Sage 50
Sage also announced an extension to its existing partnership with Microsoft. As part of the extended relationship, Sage will integrate Sage 50 with Microsoft Office 365.
By integrating Sage 50 with Microsoft Office 365, Sage has enhanced the power of its business solution with greater mobility, analytics and cloud capabilities. Now customers can manage their businesses with Sage 50 and Office 365, across multiple devices and multiple locations—with confidence that their information is live and up to date.
Microsoft CEO Satya Nadella, who joined the Sage Summit via a video message, said:
” Together, with partners like Sage, we’re focused on empowering professionals to get more out of every moment and for small and medium businesses to grow and seize the opportunities ahead.”
The Sage Foundation—One Year On
Kelly also spoke about the success of the Sage Foundation’s ‘2+2+2’ model for philanthropy. Through this model, Sage Foundation donates: 2% of employee time each year (5 volunteer days), 2% of free cash flow and 2 of Sage’s technology products.
Sage Foundation Chairman, Ivan Epstein, and President for Sage International said:
“I have seen our colleagues change lives and communities over the last year – from volunteering at The Invictus Games, to helping businesses rebuild themselves in the wake of natural disasters and assisting local communities to help them build a future for themselves and those around them.”
“We’ve all invested in our vision and the announcements show just how committed we are to what Sage Foundation can do to build on these achievements.”
Champion of Business Builders
Sage’s commitment to supporting entrepreneurs at every stage of their growth was underlined at the Summit. Kelly reiterated his criticism of ‘out of touch’ events like the World Economic Forum in Davos and announced a series of policy events around the world. “At Sage, we believe that the voices and views of Small & Medium Businesses are underrepresented in the corridors of power,” says Van Heerden.
“Sage in Africa will be working hard to get the issues Small & Medium Businesses face onto the agenda for the continent’s economic leaders and decision makers. Addressing these challenges at the highest levels could help unleash the potential of Africa’s entrepreneurial wealth creators.”
BREXIT: Future of UK Airlines Remain Uncertain
Traditionally, aviation agreements have been negotiated on a bilateral basis between countries, regulating carriers rights to operate on new routes.
However, since the 1990s, the European Union has liberalised the aviation market and has taken a prominent role in negotiating aviation agreements among member states. Currently, any UK airline can operate to EU country without additional legislation process, but the situation will change after Brexit.
“Once the UK leaves the EU, and absent an agreement being put in place, those traffic rights would cease,” claims Sue Barham, Partner at law firm Holman Fenwick Willan.
Aviation experts claim the United Kingdom has three aviation regulatory options after the Brexit. The UK could remain a part of European Common Aviation Area (ECAA) like Norway, negotiate a separate Open Skies agreement with the EU like Switzerland or revert to bilateral agreements that were common before the liberalisation of the market.
Three Regulatory Options
Membership in the ECAA would provide the United Kingdom access to single aviation market, allowing conduct of flights as usual. However, this option requires acceptance of EU aviation laws and would limit freedom of the UK’s own aviation policy.
“A model based on the ECAA requires the UK to adopt and apply the suite of regulations, such as safety, economic, consumer protection, etc. by which it is currently bound,“ explained Sue Barham.
An alternative to membership of the ECAA would be a bilateral treaty between the UK and EU – similar to what Switzerland has – its air transport agreement regulates freedom of the movement between the parties.
“This option would preserve some policy freedom on UK-law makers, but the UK would have no influence over policy making in Brussels”, explains Anaelle Miriam, Corporate Communications Assistant at IATA.
Lastly, the UK could have a full freedom of discretion and negotiate bilateral agreements that would be limited to market access with member states. However, experts claim that the option is least likely to happen.
“There is simply too much EU regulation of aviation – most of which is beneficial and provides a cohesive, uniform system of international regulation – to unpick it all and try to revert to legislating on a national level,“ concludes Sue Barham.
No Decision Soon
However, the referendum has brought a large portion of uncertainty, therefore the government should consider, how much leverage the country wants to have in the new aviation treaties, as well as the timing of the signings.
“UK aviation will benefit from a timely solution which sets out clear positions. In this light, adopting a strategy of negotiating multiple bilateral arrangements may result in extending the uncertainty,“ says Keith Beattie, Partner at law firm Burges Salmon.
In theory, the UK will be able to start from the scratch when negotiating new arrangements. Perhaps, new treaties will be more advantageous to UK airlines? Law experts claim that the carriers may push the government towards an agreement that would benefit the airlines, rather than their customers.
One example is regarding consumer rights regulation. At the moment, carriers have to pay large amounts in compensations for flight delays. Sometimes, they do not have the control over the matter, but have to pay nevertheless, therefore UK airlines may push the government towards lower consumer rights protection regulation.
“It may be possible that UK airlines can benefit from a more relaxed regime in relation to consumer protection but it would be a bold political move for the government to push through weaker consumer protection in favor of the commercial positions of the airlines,” says Keith Beattie.
While the fate of the UK‘s aviation policy may be clouded, the near future does not suggest of any sudden changes.
“Until we negotiate the terms of our exit from the European Union and look at all of the detailed arrangements, we remain an EU member state with all of the rights and obligations and there will be no immediate changes,“ states Jack Griffith, Communications Director at UK‘s Department for Transport.
The Micro-Insurance Acceleration Conference 2016
The Micro-insurance Acceleration Conference 2016 is scheduled to take place on the 13th -14th October 2016 at the Sarova Panafric Hotel, Nairobi, Kenya.
Key Benefits of Attending:
This Micro insurance Acceleration Program was created to inform the participants on all the latest developments of micro insurance in Africa and beyond. During these 2 days’ program one will be able to learn:
· The micro insurance client
· The most profitable micro insurance products for this market
· Delivery models for this specific market and product
· Role of technology in enabling easy distribution and ensuring higher client access
· Impact of micro insurance using microfinance and how to increase it
· Latest strategies to make distribution doable and marketing strategies
· Particularities of African micro insurance market
· The Regulatory Environment
Topics to be Covered:
· Introduction to Insurance and Micro insurance (includes Regulations)
· The Micro insurance Client
· Micro insurance Products
· Marketing, Communication and Financial Literacy
· Sales and Distribution (Partnerships)
· Client Relations Management and how to ensure client access (role of technology)
· Creating New Business Models and Partnerships to Increase Market Penetration
Who Should Attend?
Micro insurance consultants, Client managers, Micro insurance managers, Operations managers, Business Development managers, Strategic development managers, Life Portfolio managers, Policy makers, Regulators and also Stakeholders in the Agricultural industry, Insurers, Reinsurers, Microfinance Institutions, NGOs, Banks, International Organisations, Development Partners and Academics.
ADB Report: ‘Poverty, Inequality Growing in Africa’
African economies have grown substantially over the past decade, but poverty and inequality reduction has remained less responsive to growth successes across the continent, says the 2015 edition of the African Development Bank (AfDB)’s African Development Report, that was officially launched on 26 July, 2016 at the Bank’s headquarters in Abidjan, Côte d’Ivoire by the AfDB President Akinwumi Adesina, represented by Kapil Kapoor, Acting Vice President, Sector Operations.
The theme of this edition is on “Growth-poverty and inequality nexus: overcoming barriers to sustainable development”.
Despite earlier periods of limited growth, African economies have grown substantially over the past decade. However, poverty and inequality reduction has remained less responsive to growth successes across the continent.
How does growth affect poverty and inequality? How can Africa overcome contemporary and future sustainable development challenges? This 2015 edition of the African Development Report (ADR) offers analysis, synthesis and recommendations that are relevant to these questions.
The objective of the Report is to guide policy processes by contributing to the debate analysing what has happened during recent years, what has worked well, what hasn’t worked well, and what needs to be done to address further barriers to sustainable development in Africa?
Africa’s recent economic growth has not been accompanied by a real structural transformation. As a result, millions of Africans, especially women and youth, have been left behind.
The Report highlights the intermediating role of various forms of inequality that limit the transformation of Africa’s growth into prosperity for all.
Unequal access to economic resources and opportunities is mirrored in the continent’s high income inequality, gender gaps in earnings and opportunities, the rural-urban divide, youth under-employment and in the limited priority given to key poverty-reducing sectors like agriculture, agro-industries, and manufacturing.
In his Forward remarks, AfDB President, Akinwumi Adesina says: “I firmly believe that development is about delivering real improvements in living conditions right across society. This analysis shows that widespread inequality is limiting both growth and poverty reduction across Africa. These income disparities have remained persistently high over decades, leaving Africa one of the world’s most unequal regions.”
Union Bank Reports Unaudited PBT of N9.1bn
Union Bank of Nigeria Plc has announced its unaudited results for the half year ended 30thJune 2016.
Bank’s Financial Highlights for the Half Year:
· Profit before tax(PBT)of ₦9.1bn(₦10.2bn inH1 2015); excluding gain on sale of
subsidiaries, PBT isup23%to ₦8.3bn(₦6.7 inH1 2015).
· Gross earnings up3% to ₦59.0bn(₦57.1bnin H1 2015); excluding gain on sale of
subsidiaries*,gross earnings increased by9% to ₦58.2bn (₦53.7bn inH12015).
· Interest income up3% to ₦43.3bn (₦41.9bnin H1 2015). Improved asset yields:
16.1% in H12016from14.6% in H12015.
· Interest expense down20% to ₦13.4bn (₦16.6bn inH1 2015). Continued optimization of funding costs, resulting in a reduction in primary cost of funds to4.8% in H12016, from6.3%inH2 2015and 6.3% in H1 2015.
· Non-interest revenue up 3% to₦15.7bn (₦15.2bnin H12015); excluding gain on sale of subsidiaries up 27%to ₦14.9bn(₦11.8bnin H12015), driven by e-business fees, gain on securities trading and some revaluation gains.
· Operating expenses of ₦28.0bn (₦27.3bn inH12015); in line with planned investments in technology and network infrastructure.
· Customerdepositsup6%to ₦604.5bn(₦569.1bnDec 2015); expanded/improved
Service offerings continue to generate customer confidence.
· Gross loans up 33% to ₦491.9bn (₦370.9bn Dec2015); core volume growth of 13% to ₦417.6bn; additional growth to ₦491.9bndriven by the impact of currency devaluation on foreign currency loans.
Commenting on the Bank’s half year results, Emeka Emuwa, Chief Executive Officer said:
“Our sustained focus on executing Union Bank’s strategic transformation objectives during the first half of 2016 has delivered growth in our core business, notwithstanding a difficult economic environment.
The Bank recorded 9%year-on-yeargrowthincoregrossearnings,driven primarily by balance sheet optimisation. With the combination of an improved retail portfolio of product and service offerings ,securities trading and efficient cost management, the Bankwasabletodeliver₦8.2bnincorePBT,up 23%whencomparedto ₦6.7bnin the same period in 2015.
Our core business remains resilient in these challenging times and we maintain our commitment to delivering value to all our stakeholders. We also remain confident that our profit retention strategy will adequately support the Bank’s medium term growth
Objectives and continue to strengthen our risk management to mitigate risk and losses.”
Speaking further on the Bank’s numbers, Chief Financial Officer, Oyinkan Adewale said:
“We are pleased that our focus on building the business fundamentals is yielding significant value across the Bank. With increasing consumer confidence in our products and services, we have increased our low cost deposits, making us less reliant on more expensive alternative funding sources. This has led to a 20% reduction in cost of funds year-on-year. We are also seeing impact on non-interest revenue, which grew during the period. Excluding one-time gains on sale of subsidiaries, non-interest revenue is up by 27% to ₦14.9bn in H12016 compared to H1 2015.
Notwithstanding an inflationary environment, our operating costs remain in line with expectation as our investments in technology continue to yield improved efficiency across the Bank.
Our liquidity ratio at 39%remains well in excess of the regulatory minimum. With a coverageratioof188%, we believe that the loan book is well provisioned, given the current economic climate.
NSE Unveils Recruitment Portal to Target Top Talent
The Nigerian Stock Exchange (NSE) has launched an online portal to attract top talent and optimize its recruitment process.
The recruitment portal which is expected to enhance the Exchange’s recruitment capability, increase turnaround time and provide a consumer-friendly candidate experience, will handle all aspects of recruitment, from application, to scheduling interviews and on-boarding of new hires.
Speaking on this development, Pai Gamde, Head, Human Resources, NSE, noted that “technological advances have streamlined almost all business functions and the Human resource function is not an exception. By taking our recruitment process online through our website, we have developed a secure platform to capture, reach out and engage with qualified candidates who can support our continuing drive for growth in the Nigerian capital market”.
“The entire recruitment process is automated from start to finish. This in turn allows for rapid feedback and real time updates on whether an applicant has been successful or if the vacancy has already been filled. The platform also provides a fully responsive design, optimizing the site for mobile and desktop to provide a consistent, user-friendly experience on any device”, she added.
On her part, Chinelo Chukuma-Onwujei, Team Lead, Talent Management, NSE said: “The portal which can be accessed from the careers section of the NSE website supports the Exchange’s position on diversity and equal opportunities. Through the portal, job seekers interested in joining the NSE team can efficiently search for jobs suited to their interests and capabilities, create resumes and submit applications for specific open positions listed on our website, in addition to submitting resumes for future general or specific consideration.”
The Exchange strives to sustain its employment value proposition by creating and maintaining a culture that develops talent, increases internal competition, promotes innovation, diversity, and provides opportunities for every employee to succeed to the full extent of their abilities.
The Nigerian Stock Exchange recently received the 2016 Employer of Choice award in the Under 1,000 Employees category from the HR Peoples Magazine.
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.