According to the first Africa Reinsurance Pulse, launched at the 21st African Reinsurance Forum in Dakar, Senegal, the continent’s reinsurance markets are expected to benefit from strong underlying growth, driven by an expansion of its primary markets with insurance premiums of US$ 64 billion.
Based on an abundance of natural resources, the need for infrastructure investments, the emergence of an expanding middle class and a still young and growing population, the region’s GDP is expected to increase by roughly 4% per annum from 2016 – 2020, ahead of the world’s average growth rate of 3.6% for the period. Africa’s low insurance penetration of 2.9%, as a share of insurance premiums to GDP, indicates the enormous potential of the continent in catching up with the global average of 6.23% for 2015.
The Africa Reinsurance Pulse is an annual survey, conducted by Dr. Schanz, Alms & Company, which was facilitated by Africa Re, the Africa Insurance Organisation (AIO), Swiss Re, Casablanca Finance City (CFC) and the Qatar Financial Centre (QFC). The study, based on in-depth interviews with 22 reinsurers and brokers operating in the region, provides a unique overview of the trends and drivers of Africa’s US$ 8.3 billion reinsurance market.
“More than 90% of Africa’s insurance companies have only been created in the past 40 years,” says
Corneille Karekezi, Group Managing Director & Chief Executive Officer of Africa Re.
“As a result, our industry still has to build the awareness for the benefits of protecting and enabling economic progress. The Africa Reinsurance Pulse provides succinct data and information on our continent’s reinsurance markets and contributes to this goal as it demonstrates our industry’s potential and also its challenges.”
The Africa Reinsurance Pulse found that the fundamental strengths of the African reinsurance markets
remain intact, despite the recent economic slump. New, larger and more complex risks have arisen,
requiring insurance protection while the broader African middle class is eager to protect its assets and
make provisions for the future.
Abundant resources, a juvenile and growing population and the need for
investments in infrastructure, energy, health and educational facilities drive the demand for insurance
protection and reinsurance cessions.
However, access to local expertise, reliable data and statistics are regarded as weaknesses of the
market. In addition, frequent foreign exchange trading restrictions and the vulnerability of fragmented
and relatively small markets to sudden swings in export demand, commodity prices and exchange rates
fluctuations may result in unwanted volatility. Also, political instability is still the biggest threat to the
region’s insurance and reinsurance markets and strongly affects growth expectations.
Furthermore, protectionism in the form of priority or compulsory cessions is feared to harm the domestic markets, although it may also limit the impact from global excess capacity.
The majority of the interviewees feel that current reinsurance rates are below the average of the last three years. Risks are still far more adequately priced, but competition is mounting as regional and international players fight for market share. However, on a global scale, markets are still perceived as profitable due to stable loss ratios and the region’s limited exposure to natural catastrophes.
However, profitability is coming under pressure as new capacity enters the market and international reinsurers deploy additional capacity to established markets or to new ones where they intend to expand. In defending their turf and supported by regulatory provisions, domestic capacity is expected to outgrow international capacity in the near term.
Overall, exposure is expected to outpace the region’s GDP as values and risks increase in scope, scale and complexity. However, since rates may decline, 57% of executives polled expect premiums to grow slower than GDP, implying that reinsurers will take on risk at a lower price.
The advent of new technologies has been a key driver for insurance penetration. The fast and vast dispersion of mobile phones greatly facilitated the distribution of policies to the low-income population that still lives quite scattered in remote or difficult to access rural areas. Micro-insurance is the product innovation which greatly contributed to raising the awareness for insurance products.
Finally, the introduction of compulsory cessions is one of the more controversially discussed regulatory developments, whereby domestic re-/insurers are required to keep a portion of premiums and profits within the country and thereby reduce the outflow of hard currency.
While critics point out that retaining the risk within the country reduces the ability to efficiently diversify exposures, its advocates emphasize the need to shelter Africa’s young and small re-/insurance markets from excess capacity and to strengthen domestic markets by encouraging global players to go local and invest part of their risk bearing assets in the national markets.
Africa: Reinsurers Bullish on Future of $8.3bn Market
Hilton Expands Nigerian Presence with 350-Room Hotel
Hilton has announced the signing of a management agreement with Quality Inspection & Testing Services Limited to open a 350 guest-room and suite hotel at Lagos’ Murtala Muhammed International Airport, Nigeria.
The hotel, which was signed at AHIF 2016 in Rwanda, is set to open in 2023 and joins Hilton’s growing African portfolio of more than 80 properties trading or in the development pipeline, which will see Hilton more than double its presence across Africa in the next 3-5 years.
“With a population of more than 16 million, Lagos is the seventh-fastest growing city in the world and the second largest in Africa, with much of the nation’s wealth and economic activity concentrated here,” said Patrick Fitzgibbon, senior vice president, development, EMEA, Hilton Worldwide. “Strong growth is forecasted in both domestic and international travellers using Murtala Muhammed International Airport, so this exemplary new hotel will be well placed to meet traveller’s needs, offering an unparalleled level of design, comfort and service.”
The hotel will be situated within close proximity to Ikeja, the capital of Lagos State, as well as the passenger terminals at Murtala Muhammed International Airport, which service travellers flying to hundreds of destinations around the world.
Mr. Sam Iwuajoku, Chairman and CEO of QUITS, said: “The signing of the agreement to open Hilton Lagos Airport is testament to a period of exciting growth and development for Lagos. Our plans to build an exceptional hotel at the international airport will revolutionise the traveller experience and also offer a state-of-the-art choice for conferences, meetings and events. We look forward to a very successful collaboration with Hilton Worldwide on this outstanding development.”
Hilton Lagos Airport will comprise 350 guest-rooms, of which 72 are suites, an Executive floor and multiple food and beverage outlets, including; a restaurant serving international cuisine; a speciality restaurant; a fashionable rooftop cocktail bar; and a hip night club. An elevated pool deck, with lavish gardens and a striking horizon pool overhanging the side of the property, provides breath-taking views of the surroundings and a unique leisure experience for an airport property. The hotel will also feature a spa and fitness centre.
Business travellers and event planners will benefit from a wide choice of professional facilities across the 2,600sqm event space, including a 1,350sqm ballroom and 500sqm junior ballroom.
“Hilton Lagos Airport will further solidify our presence in Nigeria and be a great asset to our Hilton Hotels and Resorts properties trading or under development in Africa,” said Jim Holthouser, Executive Vice-President, Global Brands, Hilton.
“We have great confidence in this growing market and are proud to be pioneering exemplary guest experiences across the continent with our range of Hilton brands.”
Hilton is set to more than double its presence in Africa in the next three to five years to more than 80 hotels and is focused on further development prospects across the continent, entering new countries while also growing in areas with an existing Hilton presence.
This signing is in addition to the recent signing of Legend Hotel Lagos Airport, Curio Collection by Hilton, also with QUITS, with an additional 76 guest rooms to be added, bringing the room count up to 130-keys. These properties represent the two most recent hotels signed at Lagos Airport in some time. The Curio hotel, due to open during 2017, will be the first within the airport environment giving guests and airline passengers alike unrivalled ease of access to the airport’s facilities.
Global Commercial Aircraft Market to Reach $209bn by 2022
The world commercial aircraft market is expected to reach $209 billion (€187.095 billion) by 2022, as concluded by a new report published by Allied Market Research (AMR), a market research and business-consulting based in Oregon, the USA, entitled, “World Commercial Aircraft Market by Engine Type, Aircraft Size, and Use Case – Global Opportunity Analysis and Industry Forecast, 2014-2022.”
The turbofan engines segment is expected to dominate the market throughout 2016-2022. Asia-Pacific would probably continue to lead, as it had accounted for around 40% share of the world commercial aircraft market in 2014.
The market growth is driven by various factors such as increasing number of air passengers, improvements in commercial aviation network, development of eco-friendly and fuel-efficient aircraft, rise in tourism, and economic development.
A large number of initiatives have been undertaken by governments from various countries including India, China, UK, Russia, and Brazil to improve the aviation network infrastructure like the flexible regulations for the development of commercial aircraft, lowering the taxes, and investments in R&D. However, congestion and delay in air traffic, lack of security, and threat of terrorism tend to hinder the growth in commercial aircraft market worldwide.
In 2014, commercial aircraft with turbofan engine segment accounted for about 59% of the total market. It is expected to dictate the analysis period with a CAGR of 5.9%, owing to its eco-friendly and low-noise design. Geographically, Asia-Pacific market dominated the world commercial aircraft market in 2014. It is expected to continue its dominance with a CAGR of 6.4% due to an increase in the number of air passengers, significant growth in GDP of prominent countries in Asia-Pacific, supportive government initiatives, and a possible increase in demand for wide-body aircraft.
However, the maximum share in the revenue generation came from narrow-body commercial aircraft segment in 2014. While the wide-body commercial aircraft segment is anticipated to grow at a CAGR of 6.2%, the narrow-body commercial aircraft segment accounted for around 50% of total market in 2014, due to its short-haul transport and cost-saving design.
Among the verticals, government sector generated the maximum revenue in the world commercial aircraft market- around 56% of total revenue in 2014; and is expected to dominate the market with a CAGR of 5.1%. However, private sector may grow at a faster CAGR of 6.6% by 2022 due to lower fuel prices, increasing the number of air passengers for domestic as well as international air travel, and privatisation of airports.
A lead analyst of AMR stated: “Growth in the number of domestic and international air-travel passengers, significant growth in global GDP, technological advancements and tourism sector, are key drivers for growth in commercial aircraft market. Further, innovation in commercial aircraft design, improved features, and eco-friendly approach are catalysts for growth in commercial aircraft with a turbofan engine, while wide-body aircraft are expected to experience huge demand from Asia-Pacific markets as they have the capacity to carry large amount of load over long-haul routes.”
Economic Recovery Policy Will Bring Hope for Nigeria-ICAN
The Institute of Chartered Accountants of Nigeria (ICAN) last Friday renewed its support for the various economic policies of the administration of President Muhammadu Buhari, saying there is hope for Nigeria.
President of ICAN, Deacon Titus Soetan, who led a delegation of the institute’s executives to the Minister of Finance, Mrs. Kemi Adeosun, said the current initiatives of the Minister were capable of taking the nation out of its current economic woes.
The Minister, in her welcome address said: “As professionals, we are taught to be prudent and to be transparent and also to have a lot of accountability and that, in itself, means we have to deal with things which many people will be evading, but we are not going to evade the truth because we know if we do we are only postponing the evil day.”
“We are working with a mission. That mission is driven by the realisation that this economy has to grow. And to achieve the desired growth, we have to invest and spend our money wisely. To attain our goal, we have to do two things. First is to increase the revenue that is available and secondly, redirect expenditure from wasteful things and from corruption into actually growing the economy. This is why we are implementing initiatives that address these impediments and improve control. “
Speaking on the resolve to focus on capital projects, the Minister disclosed that “So far, we have released over N700 billion in capital. All over the country, you will see projects going on. We are dealing with a lot of arrears and a lot of hidden liabilities; some of them unrecorded.
She continued: “We are beginning to see the light at the end of the tunnel. Our salary bill is already going down; our recurrent expenditure is far more controlled than it was.”
Soetan, in declaring the Institute’s support for the current anti-corruption campaign, blamed the structure that made it possible for a few Nigerians to cart away the hard earned funds meant for everybody.
The ICAN President is of the opinion that everything necessary must be done to curtail this unpatriotic act in our society.
“Let me assure you that our institute is in support of your ministry’s effort and the government‘s efforts to fight corruption. We support the government’s implementation of the Treasury Single Account (TSA), the Integrated Payroll and Personnel Information Systems (IPPIS), the International Public Sector Accounting Standard (IPSAS) and the creation of the Efficiency Unit, which you have brought to bear. We support all these measures among others. We believe you are on the right track and they are capable of taking the country out of the doldrums we find ourselves in now.”
He advised the Federal Government to constantly review its policies for effectiveness, saying, “Our view is that these initiatives call for constant evaluation to appraise their effectiveness and reshaping their operations as well.”
As financial advisory is one of our roles, as professional accountants, we are most likely to recommend that sustainable policies including putting idle assets into effective use to generate revenue should be pursued. This challenging economic situation in our country today requires sustainable policies to bring us back on our feet firmly.
There is no doubt that the injection of extra liquidity will stimulate economic activities and lead to productivity. To this end, borrowing on the short time is advisable. We are of the view that the sale of the national assets should be considered as a last option after all alternatives have been considered.”
Shamsudeen: ‘Insurers Should Consolidate for Growth’
Former Minister for National Planning and Minister of Finance, Shamsudeen Usman has advised insurance operators in the country to consolidate for growth in the size of the industry.
Shamsudeen who made this known while operators at an insurance forum in Lagos said the small size of the industry has hindered it from playing the role of a stabiliser in economic crisis.
Citing reports from Agusto and Co., he said the balance sheet of all insurance companies is less than one third of one of the banks.
According to him, there are certain characteristics of the insurance industry that actually makes it more of a stabiliser especially in terms of economic crises like we are going through in the country.
He stated that the ability of the sector obviously to play that stabilising role depends on the size relative to the rest of the economy.
“Part of the reasons why the Nigeria insurance industry has not played the stabilising role is about the size of the industry. The balance sheet of all insurance companies is less than one third of one of the banks. This tells the issue of the size. I was Deputy Governor in the central bank when the consolidation exercise happened with credit to Former Central bank Governor, Charles Soludo.
“We went into a room and he made a presentation to the banking industry. Initially there was a lot of opposition. I remember when we were appointed to the Central Bank in 1999, there were 97 banks. The total balance sheet of the 97 banks was less than one of the bank today. A 100 per cent of 1 is 1. 10 per cent of 1000 is 100. So do you prefer a 100 per cent of a tiny little thing or 10 per cent of a big thing which can be 10 times the value of whatever you are getting?
“I believe that the insurance industry itself has to be more forward looking into consolidation like it happened in the banking sector. Yes, many of you are afraid to lose your position of managing Director, executive director of a small corner. But I think the industry will achieve more if you can come together and get bigger.
The former minister however said that the industry has huge potential that it is yet to tap into.
“The potential even from the point of view of the economics theory is that there is a strong link between the growth of an economy and the growth of the insurance industry. This has been a subject of many as even the empirical studies in other countries partly because of the role again that the industry plays in economic growth and stability through improving the investment climate and promoting more efficient volume and mix of activities. A number of research has shown that there is a positive closer relationship between the industry and the wider economy.”
Africa Bribery Case: U.S. Firm, Och-Ziff to Pay $412m Fine
Leading US hedge fund, Och-Ziff has been ordered to pay $412m (£316m) to settle charges that it paid millions in bribes to top officials across Africa to secure mining and investment rights.
It is the first time a fund has been sanctioned under US foreign bribery laws, the US Justice Department said.
Its investigation details bribes of tens of millions of dollars paid to Democratic Republic of Congo officials. It says the bribes secured investments for the fund in diamonds and mining.
Corrupt payment to officials in Libya, Chad, Niger, Guinea and Zimbabwe were also detailed as part of the settlement.
Campaign Group, Global Witness called the fine “a major step forward” in tackling corporate corruption and called for the individuals behind the deals to be jailed.
New York-based Och-Ziff had more than $39 billion in assets under management as of September 2016, making it one of the world’s largest hedge funds.
“Gaining the upper hand in a business venture by engaging in corrupt practices is bribery in its purest form,” said FBI investigator, William Sweeney, quoted in a statement from the US Department of Justice.
FG Plans Lower Taxes for SMMES to Stimulate Economy
The Federal Government is set to reduce the income tax rates payable by Small, Micro and Medium Enterprises (SMMEs) in the country to encourage more start-ups in Small, Micro and Medium Enterprises, boost the profitability of the existing ones, generate new jobs and make higher contribution to the Gross Domestic Product (GDP).
The new incentives for SMMEs are part of the recommendations presented to the Minister of Finance, Mrs. Kemi Adeosun, by the 12-member Committee she established, chaired by Professor Abiola Sanni, to review the current National Tax Policy (NTP) in Abuja, Thursday.
The Committee noted that lowering the taxes payable by Small, Micro and Medium Enterprises would encourage compliance, promote the growth of SMMEs and expand the manufacturing base of the nation through their activities.
Another recommendation suggested for implementation relates to the abolition of minimum tax, which results in loss making companies been required to pay tax.
The Minister assured that a team would be set up by the Ministry to implement the recommendations of the Committee through administrative measures without delay, while those that require legislations would be forwarded to the Federal Executive Council for consideration. “We need to deal with legislations that need to be changed. Nigeria cannot afford to be running with antiquated tax laws,” she emphasised.
The new Tax Policy has also recommended the enactment of a number of legislation amendments including the law to tax treatment the taxation of Real Estate Investment Trusts (REITs).
”In other climes a REIT is seen as transparent or flow through entity that is not different and separate from its unit holders/investors. The income of the REIT is treated as the income of the unit holders or investors and therefore taxed at that level,” the report clarified rather than the current provisions, which amount to double taxation.
Earlier in his remarks, the Chairman of the Committee, Professor Abiola Sanni said that the report contained some innovations in terms of suggestions, including 20 implementation strategies, explaining that some of the strategies required legislations while others could hit the ground running.
“We believe that at the end of the day if the recommendations contained in this report are implemented, Nigeria will witness a transformation of the economy as a whole,” he pointed out.
Nigeria Ranks 127 in WEF 2016-2017 Global Competitiveness Report
Mauritius remains Africa’s most competitive nation (45th worldwide), World Economic Forum (WEF) said in the 2016-2017 global competitiveness report it released on Sept 28, in Geneva.
In Africa, the island is followed by South Africa (47th in the world), Rwanda (52nd), Botswana (64th), Morocco (70th), Namibia (84th) and Algeria (87th). Tunisia (95th), Kenya (96th), Cote d’Ivoire (99th) come next in the Top 10 of most competitive African nations.
Progress over the continent in terms of competitiveness is mixed compared to the 2015-2016 ranking. While some nations such as Rwanda, Sierra Leone and Ghana jumped 6, 5 and 5 places respectively, others like Zambia, Lesotho, and Nigeria fell respectively 22, 7 and 3 places in the global 2016-2017 ranking. Zambia thus moved from being 96th worldwide in 2015-2016 to 118th in 2016-2017.
WEF’s report provides a global ranking of most competitive nations by using a hundred economic indices including infrastructures, macroeconomic environment, market size, development of technology and information.
Worldwide, the top three nations of 2015-2016 namely Switzerland, Singapore and the United States kept their places. Next come Netherlands, Germany, Sweden, the United Kingdom, Japan, Hong Kong and Finland.
Among emerging economies, China remains at the top and is at the 28th position worldwide while India impresses greatly soaring 16 ranks, to the 39th position.
The WEF’s ranking for Africa’s most competitive economies in 2016-2017:
1-Mauritius (45th)
2-South Africa (47th)
3-Rwanda (52nd)
4-Botswana (64th)
5-Moroccoa (70th)
6- Namibia (84th)
7-Algeria (87th)
8-Tunisia (95th)
9-Kenya (96th)
10-Cote d’Ivoire (99th)
11-Gabon (108th)
12-Ethiopia (109th)
13-Cape Verde (110th)
14-Senegal (112th)
15-Uganda (113th)
16-Ghana (114th)
17-Egypt (115th)
18-Tanzania (116th)
19-Zambia (118th)
20-Cameroon (119th)
21-Lesotho (120th)
22-Gambia (123rd)
23-Benin (124th)
24-Mali (125th)
25-Zimbabwe (126th)
26-Nigeria (127th)
27-Madagascar (128th)
28-DR Congo (129th)
29-Liberia (131st)
30-Sierra Leone (132nd)
31-Mozambique (133th)
32-Malawi (134th)
33-Burundi (135th)
34-Chad (136th)
35-Mauritania (137th)
IFC: Africa’s Agribusiness Industry Could Earn $1tr by 2030
The African agribusiness sector should generate a trillion dollars by 2030, International Finance Corporation estimates.
The World Bank indicated that an annual investment of a little above $10 billion should be poured into the sector to achieve this result.
Taking for example Africa’s second largest economy, IFC’s Director for Processing, Agribusiness and Services in Sub-Saharan African Mary-Jean Moyo, said:
“Agribusiness is the sector that employs the most in Nigeria. Investing more in agro-food processing firms will help the nation diversify its economy and improve nutrition of its people by making food products more available, at affordable cost”
IFC’s investments in agribusiness will boost productivity across Africa where the average farm is exploited at only 40% of its potential, the official added.
IFC just invested $25 million (N8 billion) in the Nigerian subsidiary of the dairy company, Promasidor which owns the famous brand, Cowbell.
–Aaron Akinocho
Epetimehin to deliver inaugural lecture on Micro-insurance @ JABU
Chairman, Mofes Insurance Brokers Limited, Prof Festus Mobolaji Epetimehin will deliver an inaugural lecture on Mircro-insurance to hundreds of scholars and residents in Osun State.
Epetimehin who is also a Professor of Insurance and Risk Management, Dean College of Management Sciences of the institution will lecture on ‘Small But Big: Micro-insurance and the reduction of social risk of poverty’ at Joseph Ayo Babalola University in Akure, Osun State mid-next month
According to him, “Micro-insurance is considered as one of the most effective means of reducing the vulnerability of the poor from the impacts of disease, theft, violence, disability, fire and other hazards. Insurance protects against unexpected losses by pooling the resources of the many to compensate for the losses of the few, the more uncertain the event the more insurance becomes the most economical form of protection.”
The 65 year-old insurance expert with experience spanning over 35 years explained that there is an unjust paradox that the poor are the most vulnerable to hazard but have little or no access to efficient risk management strategies.
“The reality is that the risk management process of the poor has to be transformed or completed by giving access to new opportunities. In this way the poor become more empowered through the possibility to make choices.”
The Professor noted, “Micro-insurance could be such a new opportunity. It is a system that protects poor people against specific shocks, using risk pooling, in return for regular affordable premium payments proportionate to the likelihood and cost of the risk involved.”
He expatiated that Micro-insurance does alleviate poverty by reducing the impact of hazard in rural areas but protects the clients from risk, reduces MFI loan default, and earns additional income for the MFIs, enhancing outreach and scalability.
“Micro-insurance is thus a useful complement to, rather than a substitute for, savings and credit in protecting the poor against risk and allows them to retain and develop financial, social and human capital in the long term.”
Interswitch Acquires Vanso to Boost Service Delivery
Interswitch Limited, Africa’s leading digital payments and commerce company has successfully completed 100% acquisition of Value Added Network Solutions Limited (VANSO).
VANSO is a market leading mobile and security-focused financial technology provider, delivering cutting-edge and innovative solutions in Africa. The transaction has received all relevant regulatory and shareholder approvals, including the approval of the Securities and Exchange Commission.
The transaction will result in VANSO’s highly successful mobile banking, SMS and security business lines being fully integrated into Interswitch’s digital commerce and technology operations in Nigeria, and across the continent where they can leverage on Interswitch’s geographic expansion.
Key highlights of the acquisition include:
- The current management team of VANSO will be absorbed into the Interswitch management organisation. VANSO CEO, Denis O’Brien will lead the Interswitch mobile payment’s business unit with a mandate to drive aggressive organic and geographic growth. Denis brings nearly two decades of financial technology experience in Africa.
- VANSO’s existing shareholders will become shareholders of the Interswitch Group, aligning the long-term interests of both companies towards long-term growth.
- The acquisition will enhance the Interswitch mobile financial services offering, bringing fast growing segments like virtual airtime top-up, bills payments, remittance and transfers, banking and e- commerce in house, with rapid geographic expansion opportunities and across multiple delivery mechanisms including USSD, SIM toolkits and advanced mobile applications.
This acquisition of VANSO is the latest in a series of strategic integrations designed to improve Interswitch’s product and service offerings, extending its reach into new markets as the financial technology sector in Africa expands rapidly.
Interswitch acquired Paynet Group of Kenya in September 2014, in a deal that resulted in the creation of a combined network of over 150 financial institutions, deepening Interswitch’s footprint in East Africa. Paynet Group rebranded to Interswitch East Africa in October 2015. The VANSO suite of business lines offers highly complementary opportunities that can be leveraged through this existing platform.
Interswitch intends to continue with its expansion aspirations whilst refining its offering, creating innovative payment solutions that are individually tailored to the demands of the African market.
The integration with VANSO, whose core strengths lie in mobile technology, will allow Interswitch to provide comprehensive solutions leveraging fast growing subscriber bases for regional and international businesses looking to take advantage of growth opportunities in Africa.
Commenting on the transaction Mitchell Elegbe, Group Managing Director and Chief Executive Officer of Interswitch, said:
“The acquisition of VANSO, both a market leader in the mobile financial services industry and a strong and profitable business, is a great opportunity to combine our respective technology offerings and skill sets, driving growth in our business. By integrating operations, we not only secure access to new payment channels, but a highly skilled leadership team as well, while VANSO now has access to new markets, a mutually beneficial step for both our companies.
“The mobile banking sector in particular is experiencing rapid growth, with the number of mobile banking customers projected to rise exponentially across the continent within the next 3-5 years. Alongside VANSO, Interswitch is even more strategically placed to capitalise on growth in the payment solutions industry and to continue delivering innovative solutions for Africa.”
Commenting on the acquisition transaction, VANSO CEO Denis O’Brien said:
“Having secured a market leading position in Nigerian mobile financial services over the last 13 years, we are excited that the integration with Interswitch will enable our technology to go further, transforming payment solutions across borders and remaining at the forefront of development in the industry.”
“In Interswitch, we have found a partner with ambitions aligned to our own, and the institutional backing and scale to rapidly accelerate their attainment. I would like to thank our Board, executive management team and all our staff, who have worked tirelessly over the last 18 months to identify the most appropriate growth option for us. We look forward to working with the Interswitch management and board over the coming years to deepen and broaden financial services across the continent.”
About Interswitch
Interswitch is an Africa-focused integrated electronic payment and commerce company that facilitates the electronic circulation of money as well as the exchange of value between individuals and organisations on a timely and consistent basis.
Interswitch also provides technology integration, advisory services, payment infrastructure and transaction processing across multiple channels to organisations across various sectors, including but not limited to: aviation, government, health, education, banking, insurance, SME, religious bodies, FMCGs etc.
Interswitch is present in 4 countries across the continent and has connected East and West Africa with an unequalled network of more than 100 financial institutions.
Interswitch has demonstrated consistent, strong and profitable growth since the business was founded in 2001 and in the five years to 2014, Interswitch’s revenue grew by 1,226% according to the Deloitte Technology Fast 50 Africa Report, making Interswitch the fastest growing technology business in Africa. This strong growth has further accelerated Interswitch expansion strategies in Africa.
IDC Hosts Annual IT Forum in Lagos, Dakar
International Data Corporation (IDC) last week launched the 2016 edition of its annual IT Forum for Africa, with events hosted in Dakar and Lagos on September 20 and 21, respectively.
More than 100 IT professionals attended the opening two editions, with similar numbers expected at upcoming events to be held in Tunis on September 29 and Nairobi on November 10.
“With a focus on enabling true digital transformation across the entire scale and breadth of the modern enterprise, the road-show provides a perfect platform for IT executives looking to gain a clearer understanding of the wave of digitally-empowered technologies and processes that are currently sweeping across Africa,” says Jyoti Lalchandani, IDC’s Group Vice-President and Regional Managing Director for the Middle East, Africa, and Turkey.
The IDC IT Forum is targeted at IT professionals from across the region’s financial services institutions, telecommunications, government, oil and gas, manufacturing, and construction verticals, to name just a few, with senior IDC thought leaders presenting expert advice on the game-changing opportunities that exist for organisations willing to embrace the very latest digital transformation best practices.
And with the world’s leading IT vendors displaying their pioneering new products and services, this groundbreaking series of events provides an ideal opportunity for direct interaction between the providers of cutting-edge tech solutions and the IT professionals tasked with championing their implementation.
The IT Forum’s agenda explores strategies for improving efficiency, fostering innovation, reducing costs, and increasing business competitiveness, with a host of respected industry thought leaders taking to the stage.
These include the likes of Akin Banuso, Country Manager for Dell Nigeria; Roland Habre, MEA Sales Manager at Honeywell Sensing and Productivity Solutions; Dafe Gnabaly, Security Solutions Manager at Orange Business Services; Rufus Magbegor, IT Manager at Afren Energy; Oladimeji Kazeem, Head of ICT at PAL Pensions; Justice Anyai, Senior Security Consultant at Check Point; Ejike Osisioma, Group Head of ICT at Royal Exchange; and Alpha Oumar Diallo, IT Manager for MEA at Maersk Group.
A number of leading technology vendors have partnered with IDC for the IT Forum 2016, including Dell and Intel as Platinum Partners. Gold Partners include Orange Business Services, Honeywell, and Check Point, while Sophos, Fujitsu, and Oracle are participating as Exhibit Partners.
[wp-rss-aggregator limit=”5″]
‘Power Sufficiency to Make Nigeria Best Investment Destination’
Last week, EnergyNet’s Managing Director, Simon Gosling joined CNBC in Lagos to discuss the forthcoming Powering Africa: Nigeria Investment Forum, taking place in Abuja from 12-14 October, where over 300 government leaders, project developers and private investors will meet to highlight the successes, challenges and investment opportunities in Nigeria’s power sector and strategies to promote sustainable energy development in the country.
“Nigeria is a different market compared to any other country on the planet. If the challenges in the power sector, such as distribution and payments, can be resolved, Nigeria can be one of the best investment opportunities in the world,” he said.
The meeting will provide a platform to share not only global success stories that Nigeria can learn from, but will also shine the light on the development projects currently achieving positive results at the national and regional levels.
“In the last five years, innovation in off-grid and solar solutions has seen impressive growth. This hot topic is likely to encourage investors to look kindly on the country once again. Solutions beyond just the transmission network are good for Nigerians” he illustrated.
Topics addressed at the meeting include diversification of Nigeria’s future energy mix, energy infrastructure, project financing, IPPs, gas for power and captive power development.
Participants at the forum will have the opportunity to hear from and meet with public and private sector thought-leaders within the sector, including:
- His Royal Highness Mai Borgu, Emir of Borgu Kingdom, Federal Republic of Nigeria
- E. Darius Dickson Ishaku, Executive Governor,Taraba State, Federal Republic of Nigeria
- Yesufu Longe Alonge, Head Power Procurement and Power Contracts, Nigerian Bulk Electricity Trading PLC (NBET)
- Ebipere Clark, Acting Senior Special Assistant on Energy And Power, Central Bank of Nigeria
- Jonathan Okoronkwo, Principal Manager (Tariff & Rates), Market, Competition and Rates Division and Technical Assistant to the Acting Chairman/CEO, Nigerian Electricity Regulatory Commission
- Bart Nnaji, Chairman and Founder, Geometric Power
- Marcus Heal, Chief Executive Officer, Pan Africa Solar
- Emmanuel Katepa, Chief Executive Officer, Copperbelt Energy Corporation (CEC) Africa
- Nasir Giwa, Country Head, Power and Gas, Siemens Nigeria
- Mohammed N. Mijindadi, Managing Director, GE Gas Power Nigeria
- Eme Essien Lore, Country Manager, International Finance Corporation Nigeria
- Olivier Follin, Country Manager, Proparco Nigeria
- Nicolas Pitiot, Investment Director, Debt Investments, CDC Group
Almond Insurance Consumers Forum Set for Oct. 26
Almond Productions Limited, promoters of the Annual Insurance Consumers Forum is set to host the programme once again in Lagos.
The Insurance Consumers Forum (ICF) which started in 2013 provides a robust platform for interaction between insurers and the insuring public in a no-holds-barred atmosphere, on issues that bother on excellent customer service delivery.
Following the success of the previous editions, the stage is now set for the 2016 edition.
The Forum with the theme: The Place of Technology in Excellent Customer Service in the Nigerian Insurance Industry is scheduled to hold on Wednesday, 26th October at Lagoon Restaurant, Ozumba Mbadiwe Street, Victoria Island commencing at 9:00am prompt.
The forum this year will be chaired by Ven. Olusola Ladipo Ajayi, Group Managing Director LASACO ASSURANCE Plc, Guest Speaker is Mr. Alex Chidi Anameje, Consultant Corporate Skills Bridge Limited and former Head Directorate of Consultancy, Training and Research Chartered Institute of Bankers of Nigeria (CIBN) while discussant is Mr. Jide Orimolade, Managing Director, Law Union and Rock Insurance Plc.
Other highlights of the forum this year is the open forum which is as always no- holds -barred.
focus this year will be on the following issues but not limited.
> Is the Insurance Customer Really King in Nigeria
> 48 hours Claims Payment in Nigerian Insurance Market: Facts or Fiction
> Customer Demand VS Business Requirement.
> Mobile/ E- Insurance: Mechanism put in place for Conflict Resolution .
> Training & Retraining of Insurance Agents and Marketers for the Sake of the Customers.
The forum according to Faith Ughwode, CEO Almond Productions Limited is bigger and better this year because of the scope of participants who are drawn from trade groups, formal and informal as well as officers of the various law enforcement agencies who have dealings with the enforcement of insurance in Nigeria.
MTN Denies Improper Repatriation of $13.92bn
MTN has vigorously denied lingering allegations of improper repatriation of $13.92 billion from Nigeria via fronts.
A statement from MTN on the issue read as follows:
MTN’s attention has been drawn to various media reports containing allegations of improper repatriation of money out of Nigeria by the company.
The reports refer to allegations made on the floor of the Senate that MTN had illegally repatriated $13.92 billion out of Nigeria over a period of 10 years in collusion with a number of commercial banks.
According to MTN Nigeria CEO, Ferdi Moolman, “The allegations made against MTN are completely unfounded and without any merit.”
About MTN Group
Launched in 1994, the MTN Group is a leading emerging market operator, connecting subscribers in 22 countries in Africa, Asia and the Middle East. The MTN Group is listed on the JSE Securities Exchange in South Africa under the share code: “MTN.”
As of 30 June 2016, MTN recorded 232.6 million subscribers across its operations in Afghanistan, Benin, Botswana, Cameroon, Cote d’Ivoire, Cyprus, Ghana, Guinea Bissau, Guinea Republic, Iran, Liberia, Nigeria, Republic of Congo (Congo-Brazzaville), Rwanda, South Africa, Sudan, South Sudan, Swaziland, Syria, Uganda, Yemen and Zambia.