Vantage Capital Africa’s largest mezzanine fund manager, has announced $20 million of funding to Landmark Africa, one of Nigeria’s leading property developers. Landmark has developed or managed over 130,000 m2 of prime real estate across the continent.

The real estate company is headquartered in Lagos, with offices in several countries including South Africa and the United Kingdom.

Over its nineteen-year history, Landmark has built a high-quality property portfolio, including A-Grade offices for over 100 corporate clients including the Nigerian headquarters for PriceWaterhouseCoopers and Procter & Gamble and provided development management services for one of the largest malls in Nigeria. Investment One Financial Services acted as Lead Corporate Advisor on the transaction.

Landmark Village
Landmark is currently building Landmark Village, which will be an iconic “Live, Work, Play” mixed-use development with breath-taking sea views in the exclusive area of Victoria Island.

They have already completed a cutting-edge, spacious 2,500 person events centre, an unparalleled Japanese Shiro restaurant and a vibey Hard Rock Café just a stone’s throw from the beach. Landmark will soon enhance the development with a state of the art training centre and two extraordinary multi-tiered office buildings with over 20,000 m2 of dynamic office space.

The premises will also encompass a 4-star luxury hotel, fully serviced extended stay apartments and upscale residences for sale, each offering a unique residential experience. Landmark Village will benefit from a vast parking tower providing an abundance of parking space for all residents and guests. The first of its kind Landmark Village precinct will provide preeminent comfort for a demanding office, retail, leisure and residential clientele in Nigeria’s commercial capital.

Warren van der Merwe, Chief Operating Officer of Vantage Capital, said: “We look forward to partnering with Landmark as they develop a world class mixed-use precinct in Victoria Island. We were impressed by the quality of the office buildings, and restaurants they have completed to date in Nigeria.”

Johnny Jones, Associate Partner at Vantage Capital, added: “I’m very impressed with Landmark’s long track-record of operating so successfully in a challenging environment like Nigeria. This type of transaction perfectly illustrates our firm’s investment strategy of supporting strong management teams of Pan-African businesses.”

Paul Onwuanibe, CEO of Landmark added: “We are excited to have Vantage partner with us on our journey to achieving the $5 billion valuation mark over the next decade. Our 19 year global and African real estate experience has keenly sharpened our insight in forging strategic alignments; especially in Africa. We are convinced the advent of Vantage will portend a marked acceleration towards achieving our goals and rewriting the African story.”

The Landmark investment is Vantage Capital’s second transaction in Fund III, which is targeting a final closing of $260 million and has a 60% allocation to countries outside South Africa. A Namibian and a South African transaction are expected to close during the first half of 2016 for a further aggregate investment of over $22million.

Luc Albinski, Managing Partner, said: “Nigeria has received much negative press recently with a number of South African companies running into difficulties there and some announcing their exit. We hope that this mezzanine investment, the twentieth in our history, and one that takes us to the R3 billion invested mark, will help convince investors that the country has much to offer for those willing to take a longer-term, more balanced view of the current challenges facing the country.”

According to Ademola Aofolaju, Managing Director of Investment One Capital Management, “our involvement in this transaction is in line with our strategic drive to structure and arrange long term, flexible capital for Nigerian businesses focused on providing solutions to the country’s real estate and infrastructure deficits.”

Interswitch, an Africa-focused digital payments and commerce company is excited to partner with SlimTrader, Sub-Saharan Africa’s leading turn-key ecommerce solution provider for businesses, on the deployment of a new Payment Monitoring Portal on the ‘MoBiashara for Hotels’ (MFH) platform.

With this partnership, SlimTrader will be better positioned to facilitate seamless transactions between Hotels and their guests.

Prior to the deployment of this feature on the MFH platform, hotels had no means of verifying payments for walk in guests from bookings on MFH’s partner travel booking sites. The lack of clarity meant that payments had to be verified via phone calls or emails – a very inefficient model.

This is the reason why Interswitch; the brand driven to innovate and push the boundaries of digital payments in Africa for the past 13 years, has partnered with SlimTrader to be the clearing house for payments from online bookings that are facilitated via SlimTrader’s MoBiashara for Hotels platform.

Below are excerpts from a chat with Mr. Akeem Lawal, the Divisional CEO, Switching and Processing, Interswitch Limited.

Hello sir. Please explain what the new Payment Monitoring Portal on SlimTrader’s MoBiashara for Hotels is?
The payment monitoring portal is another milestone in the road map of products and services we have jointly deployed with Slim Trader to enhance the business of local hotels across Africa.

This follows our partnership to enable booking and payments for hotels rooms online and at hotel front desks, the introduction of an integrated hotel management system as a service that allows hotels manage their inventory online and on premises as well as perform other value added services at the front desk like airtime purchase and even providing a prepaid card for foreign visitors to use while they are in Nigeria.

This portal will allow hotels see all bookings and payments made for hotels whether online or on premise, see the settlement due to them as well as reconcile bookings, stays and inventory.

What problems will the Payment Monitoring Portal solve?
The biggest problem that the Payment Monitoring Portal solves is the lack of visibility by hotels (their administrators and managers) into their financial position and condition at any point in time. For hotels connected to SlimTrader’s MFH, the portal provides real time display of all payments made to the hotel; whether those payments were made online on the hotel’s website, on other travel agency sites or in the hotel’s premises.

This means that those customers will no longer be confronted with situations in which a hotel is unable to confirm their payment. It also means that hotels will know exactly how much is in their account for settlement at each point in time, allowing them to plan their business more effectively.

What is Interswitch’s role in this partnership?
Interswitch provides the payment systems that integrate with MFH’s online and on premise platforms. We guaranty that once a payment is confirmed; the hotel will get their settlement the very next business day. We have partnered with SlimTrader to build this platform in a way that fully integrates into the Interswitch payment network, the most reliable payment network in Nigeria today.

Why have you chosen to partner with SlimTrader (MFH)?
Interswitch is constantly looking to partner with innovative companies that are solving payment challenges in Africa. SlimTrader is one of such companies; this is the reason why the company was one of the very first that Interswitch invested its $10million growth fund in to support their growth. We have since worked with SlimTrader to significantly enhance their value proposition in the hospitality space, co-creating several products, the latest of which is this Payment Monitoring Portal on SlimTrader’s MoBiashara for Hotels Platform.

When will this go live and how soon can hotels benefit from this?
The portal is already live and we have started offering it to hotels. Hotels can get this and the other innovative products and services as soon as they sign up for SlimTrader’s MFH platform.

What are the benefits to the end-user i.e. the hotel guests?
With this portal hotel guests never have to worry about discrepancies with hotel records with reservations made online. Paying online would be just as good as paying cash at the hotel premises. In fact, paying online might be better as the hotel guest can find discounts for booking and paying online on www.hotelnownow.com or other SlimTrader partner online travel agencies.

Now that Interswitch is stepping in as the ‘clearing house’ for all payments that come through SlimTrader (MFH) do you think Nigerian Hotels will be confident about receiving timely disbursement of their funds and on the basis of that trust alone, serve guests before they receive payment?

Interswitch is a global brand with a strong focus on Africa. We are trusted as the leading payment brand when it comes to making and receiving payments and settling those payments. This is because we have built and we operate a secure value driven payment systems that banks, governments, corporate organizations across several industry segments (from oil and gas to schools) have been using and trusting for more than 14 years.

This partnership is an opportunity to extend this value proposition to the hospitality industry as well. And like I said earlier this is just another milestone. There is more coming.

The Chief Executive of Union Bank, Emeka Enuwa said Union Bank will keep providing agricultural finance to rural farmers adding that as a member of African Rural Agricultural Credit Association (AFRACA), the Bank remains committed to providing rural finance in Nigeria.

“At Union Bank, we shall continue to provide credit to the agricultural sector and we encourage the other banks to do the same. We remain committed to driving investment in the agricultural sector as an active member of AFRACA and we urge all participants to align with AFRACA’s vision of a rural Africa, where people have access to sustainable financial services for economic development.”

Enuwa went further to say that Agriculture remains the vital tools that can get the country out of the current depleted foreign exchange stressing that agricultural financing and infrastructure development must remain an unbroken chain for economic development.

The Union Bank boss stated this in Abuja at a two day workshop on Catalysing the Diversification of the Nigerian Economy Through Effective Agricultural Finance organised by African Rural Agricultural Credit Association (AFRACA.)

He recounted that Nigeria was a major exporter of Palm oil, cotton and rubber in the 80s but the oil boom drifted the nation to focus on oil which has now become a commodity with a value that cannot drive the economy, saying that most African countries like Angola that are dependent on oil are also going through the same economic challenge, while urging government to increase funding to agriculture to enable more farmers have access to credits.

Enuwa pledged the continuous support of Union Bank to rural farmers through a revolving micro credit.

He said “Nigeria we all know is an oil producing nation as a number of other member nations, and over the last year or so, we find ourselves in a situation where oil revenue has declined approximately to 43% year to year, 2014 to 2015. And when your foreign currency earnings declines, it has a direct impact on the economy.

“There has been a shortage in foreign currency and this has affected sectors like manufacturing and others. It has led to a disparity in the exchange rate. We have also started seeing inflation through our indices.

“Every country needs to diversify its revenue base. Revenue base is production base and that is why agriculture is very important again.

“In the case of Nigeria, we have history. We used to be the highest producer of palm oil, likewise rubber, cocoa, all and we have to get back to such glory even if it is not the same produce, perhaps different ones.

“As it stands, we are the largest producer of cassava in the world and this is an opportunity to do more of that. We have to move away from being a net food importer to a net food exporter.

“One of the challenges facing agriculture sector today is lack of effective agriculture finance. In Nigeria, the banking sector has made some progress. Over the last few years from 2014 to 2015 there has been 36% growth in loan to the real sector, agriculture did not get up to 4% of the total lending in Nigeria.

“In addition to finance, farmers also face infrastructure impediment, roads, power, transport and storage. Those are things that are important to farmers and which remain a challenge.

“What has to happen to elevate agriculture to a top level generating sector is what we are seeing, that is the government is saying that agriculture is the key pillar for our economic development and it is being reflected in the budget. If you look at the capital investment required to further enable agriculture whether it is in infrastructure, transport, roads, those are the things we expect to see more investment within the course of this year and going forward. Across Africa the same thing is being done” he said.

He called on Nigerians to usurp the competitive advantage we have in cassava production to ensure the country become a force in cassava farming and processing.

About Union Bank of Nigeria Plc
Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank of Nigeria Plc is one of Nigeria’s long-standing and most respected financial institutions.

The Bank is a trusted and recognizable brand, with an extensive network of over 320 branches across Nigeria.

In 2012, a new Board of Directors and Executive Management team were appointed to Union Bank and in 2013 the Bank embarked upon a Transformation Programme designed to re-establish it firmly as a respected provider of quality financial services in Nigeria.

The Bank currently offers a variety of banking services to both individual, commercial and corporate clients including Current, Savings and Deposit Account services, Funds Transfer, Foreign Currency Domiciliation, Loans, Overdrafts, Equipment Leasing and Trade Finance.

The Bank also offers its customers convenient electronic banking channels and products including Online Banking, Mobile Banking, Bank Cards, ATMs and POS Systems.

As home to a quarter of the world’s Muslims, Africa represents a golden, and largely untapped, opportunity for the Islamic Finance sector.

With its burgeoning middle class, rising economic momentum, and a pipeline of large-scale infrastructure projects, the stage is set for the significant growth of Islamic finance and investment in key markets across the continent.

The financial sector in select Sub-Saharan African countries has been growing rapidly recently. New products have been introduced and financial institutions are playing an increasing role in financial intermediation, including cross-border financial flows.

Despite its banking presence in a number of countries, Islamic finance is still at a nascent stage of development in Sub-Saharan Africa.

Against this dynamic backdrop Ethico Live! are delighted to announce the launch of an exciting new initiative in collaboration with ABL Dunamis: The Sub-Saharan Africa Islamic Finance Convention which will be held at the Kampala Serena Hotel in Uganda on the 10th & 11th of May 2016.

The second day of the Sub-Saharan Africa Islamic Finance Convention sees a parallel session led by MISYS Financial Software, the theme of this session is, “Retail & Digital Channels & Risk Disruption” and will focus on bringing together Risk Managers in financial technology from across Africa and Internationally.

The Sub-Saharan Islamic Finance Convention 2016 will take place at the Kampala Serena Hotel in Uganda on the 10th and 11th of May 2016 and will feature some of the most prominent Islamic finance experts from across Africa, the Middle East and internationally.

The National Bureau of Statistics (NBS) released the Consumer Price Index (CPI) figures for March 2016 yesterday with the major Headline Index and Sub-indices trending higher.

March Headline Inflation – measured Year-on-Year (Y-o-Y) was estimated at 12.8%, 1.4% higher than 11.4% reported in February. Headline inflation has continued on a steady rise since December 2014 (8.0%) with the only moderation in October 2015.

The current inflation level is the highest recorded since August 2012 (11.7%). According to the NBS report, the acceleration in March CPI growth was driven by faster growth rates across all divisions save for the Restaurants and Hotels division which increased at a slower pace Y-o-Y for the second consecutive month.

In the same vein, the Food sub-Index (Farm Produce and Processed Foods) rose 12.7% Y-o-Y and the Core sub-Index (All items less farm produce) grew by 12.2% Y-o-Y relative to 11.0% growth in February.

Food Inflation at 3-Year High of 12.7% Y-o-Y, Increased by 2.3% M-o-M
The food sub-index grew at a faster pace for the 5th consecutive month as higher transportation costs, which can be broadly attributed to the recurring fuel scarcity, coupled with seasonal changes as well as the lingering foreign exchange challenges, pressured food prices higher in the month under review.

The FX pass-through is evident in the 15.1% Y-o-Y and 2.6% M-o-M growth in Imported Food index. The Food index rose 12.7% Y-o-Y which is the highest level since May 2012 (12.9%), 1.4% higher than 11.4% recorded in February and also grew 2.3% M-o-M.

The fastest increases were recorded in the Fish, Bread, Vegetables and Cereals groups for the 3rd consecutive month.

The current pressures facing food prices are expected to persist on account of 1) effect of the start of the planting season and 2) higher prices of imported food items driven by overhanging Forex challenges.

Core Inflation Rate up 1.2%settling at 12.2%
The Core index rose to a 3-year high of 12.2% Y-o-Y from 11.0% recorded in February but slowed to 1.9% M-o-M from 2.7% in February.

The rise in core inflation is also linked to the Forex issues which have driven importation costs of both food and non-food items northwards as well as the scarcity of petrol which persisted through the month and lower base impact of the adjustment of electricity tariffs done in February.

All key divisions under the core sub-index increased at a faster pace except the Restaurants and Hotels division which slowed for the 3rd consecutive month (from 9.0% Y-o-Y in January to 8.7% in March).

The fastest increases were recorded in the Imported Food and prices of Energy & Utilities – Housing, Water, Electricity, Gas and Other Fuel division – which rose 15.1% and 15.9% Y-o-Y; 2.6% and 2.2% M-o-M respectively.

The Inflation expectation of Core Index is equally elevated given lower base impact of higher electricity tariffs implemented in February and subsisting supply constraints in the FX markets.

Implications and Expectations
Although the recorded higher headline and sub-indices inflation level for March is in line with our expectation for the month, but broadly lagged analysts’ forecasts. We reiterate that the current inflation trend remains primarily driven by cost–push factors.

However, the surprising twist in monetary policy objectives to inflation-targeting at the last MPC meeting and aggressive OMO mop-ups raise further questions on the potency of the tools currently being deployed in taming inflationary pressures.

Moreso that the only potential benefit of the current tightening of policy – increase in portfolio capital inflows – is being undermined by subsisting capital controls in the FX market and weak fundamentals of companies due to low productivity and energy shortages.

These have combined to weaken overall sentiment of investors in the capital market. The Minister of Finance and the Central Bank Governor have repeatedly mentioned plans to reform the FX market and we do not expect any major reaction by the CBN to the data until such plans are communicated. Regardless, we think investors in the fixed income market will continue to price-in tighter monetary policy expectations (especially via OMO instrument) into valuation.