Rob Shuter is MTN’s new CEO. This was revealed by the South African firm in a press release published on June 20, 2016.
Still in contract with British firm, Vodafone (as CEO), Mr. Shuter will officially take office in July 2017. He will be replacing Sifiso Dabengwa who left in November 2015, after MTN Nigeria was fined $5.2 billion in Nigeria.
In its statement, MTN explained its choice by highlighting Shuter’s experience in the telecom industry. The new CEO has indeed held significant positions within Vodacom Group before joining Vodafone. “Rob will bring experience and new insights to the CEO role having had many years in the telecoms sector, both in Africa and Europe (…) His expertise will help as MTN continues to develop its new business strategy,” said MTN in its statement.
With Rob Shuter’s appointment, Phuthuma Nhleko’s mission as interim CEO comes to an end, though he will not be leaving immediately. Nhleko, prior to Dabengwa leaving, was the non-executive chief of MTN Group.
He was appointed to replace Dabengwa for six months at the head of the telecom group. Given the experience he gained as he held that position from 2002 to 2011, his task was to end the dispute with Nigeria and appoint a new CEO. That is done.
The $3.9 billion fine imposed MTN Nigeria was reduced to $1.7 billion payable over three years.
MTN Group Appoints Rob Shuter New CEO
Gartner: Worldwide Smartphone Sales to Slow in 2016
Gartner said global smartphone sales will continue to slow and will no longer grow in double digits. Worldwide smartphone sales are expected to grow 7 percent in 2016 to reach 1.5 billion units. This is down from 14.4 percent growth in 2015.
In 2020, smartphone sales are on pace to total 1.9 billion units.
“The smartphone market will no longer grow at the levels it has reached over the last seven years,” said Roberta Cozza, Research Director at Gartner.
“Smartphone sales recorded their highest growth in 2010, reaching 73 percent.”
Slowing Replacement of Phones
Today, the smartphone market has reached 90 percent penetration in the mature markets of North America, Western Europe, Japan and Mature Asia/Pacific, slowing future growth. Furthermore, users in these regions are not replacing or upgrading their smartphone as often as in previous years.
“In the mature markets, premium phone users are extending life cycles to 2.5 years, which is not going to change drastically over the next five years,” said Ms. Cozza.
Communications service providers (CSPs) have moved away from subsidies providing a “free” smartphone every two years, which has led to more varied upgrade cycles. On the other hand, CSPs have introduced financing programs and vendors such as Apple now offer upgrade programs that provides users with new hardware after only 12 months.
“These programs are not for everyone, as most users are happy to hold onto their phone for two years or longer than before. They do so especially as the technology updates have become incremental rather than exponential,” added Ms. Cozza.
In emerging markets, the average lifetime of premium phones is between 2.2 and 2.5 years, while basic phones have an average lifetime of three years and more. “2015 was the year when sales of smartphones overtook those of feature phones for the first time in Sub-Saharan Africa. This region represents an attractive market for vendors that can persuade users to migrate to their first smartphone,” said Ms. Cozza.
India Is the Main Focus for Growth Opportunity
Since mature markets are saturated, the focus for many vendors is on India and China. “India has the highest growth potential,” said Annette Zimmermann, Research Director at Gartner. “Sales of feature phones totaled 167 million units in 2015, 61 percent of total mobile phone sales in India.”
Smartphones are expensive for users in India, but with the average selling prices (ASPs) of low-end models falling, Gartner estimates that 139 million smartphones will be sold in India in 2016, growing 29.5 percent year over year. ASPs of mobile phones in India remain under $70, and smartphones under $120 will continue to contribute around 50 percent of overall smartphone sales in 2016.
After recording growth of 16 percent in 2014, sales of smartphones in China were flat in 2015. “In this saturated yet highly competitive smartphone market, there is little growth expected in China in the next five years,” said Ms. Zimmermann. Sales of smartphones in China represented 95 percent of total mobile phone sales in 2015. Similar to India, falling ASPs for smartphones will make them more affordable for users.”
“The worldwide smartphone market remains complex and competitive for all mobile phone vendors, and we are not expecting the vendor landscape to get smaller,” said Ms. Zimmermann. “In such a fluid vendor landscape, some will exit the market while newcomers, including mobile manufacturers or internet service providers from China and India, could make their debut.”
Gartner forecasts that by 2018, at least one nontraditional phone maker will be among the top five smartphone brands in China.
“Chinese internet companies are increasingly investing in mobile device hardware development, platforms and distribution as they aim to grow their user bases and increase user loyalty and engagement,” concluded Ms. Zimmermann.
How Uber is Localising Taxi Solution in sub-Saharan Africa
Taxi-hailing app Uber entered sub-Saharan Africa four years ago with operations in South Africa’s commercial hub Johannesburg. Today it operates in 11 other cities – Cape Town, Durban, Pretoria, Port Elizabeth, Nairobi, Mombasa, Lagos, Abuja, Kampala, Dar es Salaam and Accra.
But it has not always been an easy ride for Uber in Africa. One of the lessons it has learned is the importance of adapting to local conditions.
When it launched in Kenya, Uber only offered a bank card payment option, essentially locking out some customers who either didn’t have cards or were unwilling to use them. For most Kenyans, mobile money is often the next option when they cannot use cash, and this too was unavailable on Uber’s platform.
The introduction of a cash payment option about a year ago “transformed the business” and currently the majority of Uber riders in Kenya pay in hard currency.
“[It has been] really crucial to our growth in the Kenyan market,” says Alon Lits, Uber general manger for sub-Saharan Africa.
“Given the success we have seen in Kenya, we have actually rolled out cash in all of our markets,” explains Lits.
“What we do see though is someone might take their first trip on the platform with cash, but over time convert into a card user once they trust the system.”
“I think it really comes down to e-commerce [and] online payments not being commonplace across the continent. So people are [initially] often sceptical to upload payment information to an application.”
But with cash payments comes the challenge of how to collect Uber’s service fee from drivers. In most markets, Lits explains, there is a combination of both cash and card trips, so Uber secures its share from those paid for by card. Drivers can also transfer money owed to Uber via mobile money.
Recruiting L ocal T eams
An essential aspect of Uber’s localisation efforts is understanding what works in each city. “It is important we have a local team driving our business,” says Lits.
“We are a global company but we have local teams in every one of our markets – which ensures that we have a team that understands the market.”
Uber has gone to great lengths to recruit new users and build loyalty in the region. It has formed partnerships with local players – particularly in the tech industry – and social media personalities to improve its visibility.
For instance, when it first launched in Kenya, Uber published a blog featuring fashion personality Sharon Mundia and two technology entrepreneurs , Mbugua Njihia and Harry Hare using the app, essentially becoming the country’s first Uber users.
Partnerships to O vercome C hallenges
Another challenge in most African cities is the lack of physical addresses. It is a hurdle that delivery companies, emergency services providers and e-commerce firms also complain about.
“We have tested local mapping solutions,” says Lits, noting Uber has worked with Kenyan startup , OkHi that is mapping homes in Nairobi.
In Kenya and South Africa, Uber is engaging with local financiers that issue vehicle loans to driver partners and investors. It is also exploring teaming up with local internet cafés, where there will be someone to help drivers sign up with Uber.
Less R egulatory H urdles in Africa
Although Uber has faced resistance from traditional taxi drivers in countries such as South Africa and Kenya, Lits says there have generally been less regulatory hurdles in Africa compared with other international markets.
He cites the case of Kenya, noting the government made it clear that any form of violence and intimidation of drivers would not be tolerated and six individuals have been charged for alleged attempted murder and malicious damage of a vehicle.
And in Ghana, Uber said earlier this week it had signed a ‘statement of understanding’ with the M inistry of T ransport, kicking off the process of developing a “regulatory framework that allows for ride-sharing technology and regulates its use and adoption”.
Lits notes Uber’s senior bosses in the US see Africa as an important market and intend to launch more features.
Later in the year, the company will introduce its Uber Everything in South Africa, a service that will enable drivers to provide food delivery and courier services.
–Dinfin Mulupi
‘Insurance Firms Will Not Sack Workers’
Insurance companies in Nigeria will not sack their staff as a means of survival like the banks did recently. Banks such as First Bank, Skye Bank, Diamond Bank, FCMB and Ecobank recently sacked thousands of their staff in a bid to survive the current economic downturn in the country.
Mr. GUS Wiggle, Chairman, Nigerian Insurers Association [NIA] declared in Lagos yesterday that no insurance company operating in the country will follow the example of the banks, saying retrenchment of staff is not the right way to survive.
“Insurance companies will not sack workers. We don’t think it should be the best survival approach. In times like these, your best friend is insurance,” Wiggle declared.
He said the strategy of insurers is to continuously educate people to buy insurance to hedge against tough times and reduce waste.
The NIA chairman expressed optimism that the new flexible forex regime by the Central Bank of Nigeria [CBN] will impact favourably on marine insurance, given that imports have virtually grounded to a halt presently as businesses struggle to access foreign exchange to run their operations.
“We are in a very challenging time. No sector of the economy is finding it impressive. We hope that the new flexible forex rule by the CBN will help improve marine insurance going forward.”
Wiggle expressed sadness over the inability of many insurance firms to pay dividend to their shareholders.
“We feel sad that our shareholders are not benefitting from their investment. The problem is the stringent conditions under which we operate. Part of it is poor pricing. We may not be charging adequate premium. We are also victims of fraudulent claims by some insured persons.”
CTO Appoints First Regional Advisers
The Commonwealth Telecommunications Organisation (CTO) has announced the appointment of two regional advisors on ICTs: Dr Marianne Treschow, Regional Advisor for Scandinavia and Northern Europe and Gisa Fuatai Purcell, Regional Advisor for the South Pacific.
The announcement of the appointments was made last week by Secretary-GeneralShola Taylor.
The CTO’s activities throughout the Commonwealth cross national and regional boundaries, but there is a need for the Organisation to stay abreast of the regional priorities of its members.
“I am delighted to announce the appointment of Dr Treschow and Ms Purcell,” said Shola Taylor.
“The CTO’s mandate to coordinate Commonwealth positions at international ICT events necessitates us staying up-to-date with regional issues, and our Regional Advisors will ensure our engagement in these areas.”
“I am greatly honoured to be appointed as Regional Advisor for Scandinavia and Northern Europe,” Dr Treschow said. “I strongly believe in the work of the CTO, building ICT capacity across the Commonwealth and look forward to working further with the CTO, building on my work as an Ambassador for the Organisation.”
Gisa Fuatai Purcell is the former Head of the ITU’s Division on LDCs, SIDS, and LLDCs; Climate Change Adaption and Disaster Risk Reduction; and Emergency Telecommunication. Gisa was the first woman to lead this division and the first Pacific Island person to have worked at the ITU Headquarters in Geneva.
She successfully managed many projects around the world including early warning systems using ICTs, satellite connectivity, ICT capacity building and ICT infrastructure including submarine cables. She has a Master of Commerce and Administration from Victoria University of Wellington in New Zealand.
Dr. Marianne Treschow is the former Director-General and member of the Board of the Swedish Post and Telecom Authority (PTS). She is also senior advisor to Ericsson Group; advisor, Europe to VoIPSolutions; founder and CEO of TreschowConsulting; European expert to Global Network Women in ICT (WITNET); member of the Royal Academy of Engineering Sciences (IVA); and member of the Swedish Institute of International Affairs.
In addition to a long career in PTS, she has also held a number of important positions in Sweden including director of the Swedish Space Agency; director of the Swedish Natural Sciences Research Council; and Associate Professor in Structural Chemistry at the Stockholm University. Among the many international positions she has held are Member of the Troika Board in the European Commission; Chair of the Radio Spectrum Policy Group (RSPG) from 2006 to 2010; Head of Delegation of the European Regulators Group (ERG) from 2004 to 2010; and Councillor to the ITU and its Council from 2006 to 2010.
About the Commonwealth Telecommunications Organisation
The Commonwealth Telecommunications Organisation (CTO) is the oldest and largest Commonwealth intergovernmental organisation in the field of information and communication technologies.
Although our history can be traced back to 1901 with the establishment of the Pacific Cable Board, the organisation has only existed in its present form as an intergovernmental treaty organisation since 1967.
With a diverse membership spanning developed and least developed countries, small island developing states, and more recently also the private sector and civil society, the CTO aims to become a trusted partner for sustainable development for all through ICTs.
MTN Plans FCFA140bn Expansion in Côte d’Ivoire
MTN Cote d’Ivoire said on 10 June, 2016 that it has raised FCFA140 billion to finance its investments in the country and increase its footprint across it.
The sum, proceeds of a loan arranged by Standard Chartered Bank and Ecobank Development Corporation (EDC) from 10 Ivorian banks and Ecobank’s Senegalese and Togolese subsidiaries, will be paid over 7 years, with a grace period of one year.
Regarding this loan, Managing Director MTN Cote d’Ivoire, Freddy Tchala said: “This year 2016 is a turning point for our company for this is the year where it renewed its license for 17 years, effective from April 2, 2016. The loan will also help pay the license and achieve an ambitious investment programme, meet our targets thus providing the best network and services to Cote d’Ivoire’s residents.”
Moreover, the money will be used by the company to modernise and expand its telecom networks, so as to provide quality services to all.
With it, MTN will grab more customers and snatch from Orange, its main rival, its position of leader of the local telecom market.
FOR THE RECORD
Press Briefing by NIA Chairman, Mr. GUS Wiggle on Monday, June 20, 2016 in Lagos.
Gentlemen of the Press, good morning and welcome to this very important press briefing to keep you abreast of developments in the industry
I thank you for coming and I do hope that we will leave this briefing better informed and educated on the issues that relate to the activities of the Association and the insurance industry
First, let me take this opportunity to inform you that the 45th Annual General Meeting [AGM] of the Association will take place by 12.00 noon on Thursday, June 30, 2016 at the Metropolitan Club, Kofo Abayomi Street, Victoria Island, Lagos.
It is important to state also that this year’s AGM marks the end of my two year tenure as chairman of the Association. So, I want to thank you most profoundly for your support through positive media coverage during this two year tenure.
You would recall that in my acceptance speech in June 2014, I outlined the following areas amongst others for special attention:
· To sustain and improve on the good relationship that already exists with our regulator, NAICOM.
· To reach out to other regulators in the financial services sector whose oversight functions impact on our business.
· To strengthen the cordial relationship that exists with other arms of the industry such as NCRIB, ILAN, ARIAN, CIIN etc.
· To enforce market discipline by encouraging peer review among member companies with a view to aligning the market practice with international best practices.
· To sustain the current effort at addressing the laws affecting the growth of the market. The Companies Income Tax Amendment Act (CITA) 2007 amongst others readily comes to mind.
· To increase the support for the Technical Committees of the Association with a view to realizing their potential which will be harnessed for the achievement of the overall goals of the Association
· To fast track the process of re establishing the Oil & Gas Insurance Pool so that the industry can reap the full benefit of the Nigerian Local Content Development Act.
· To Promote Micro insurance as a way of deepening insurance penetration in Nigeria.
Looking back at the agenda we set for ourselves at the beginning of our tenure, we want to say that we have made some modest achievements during the period.
On the relationship with NAICOM, we have continued to engage the Commission on issues that affect the business of our members and this will continue as issues may arise.
There is also an on-going initiative to improve market conduct and market discipline
On the relationship between the Association and other regulatory bodies, the Association has continued to engage other regulators such as SEC, FIRS, PENCOM and NSE on issues bothering on the effect of their oversight activities on member companies.
A representative of the Governing Council met with the Executive Management of the Federal Inland Revenue Service on issues relating to some of the provisions of CITA 2007 as effect on the insurance sector. It is expected that our engagement will resolve the issues observed
Gentlemen of the Press, we have also had very robust and fruitful discussions with the National Assembly in our determination to address holistically the issues that are inhibiting the growth of the insurance sector.
I am also happy to inform you that the Association is strongly represented in the Insurance Industry Consultative Council and in fact, providing the secretariat for this year’s Annual National Insurance Conference in Abuja. Membership of the IICC includes all the trade groups, the CIIN and NAICOM.
In the area of promoting market discipline, the mandate of the Governing Council Disciplinary Committee has been widened to include Conflict Resolution among members. This is to enable the Committee handle disputes between member companies. This will complement activities of the Customer Complaints Bureau.
The Governing Council has also referred many issues to the technical committees to ensure that views are adequately taken into consideration in taking decisions in core technical areas. This is a sure way of strengthening the technical committees which are usually the bedrock of our decisions on technical matters.
Let me also report that the Energy and Allied Insurance Pool (EAIPN) has taken off and 20 companies have already subscribed to the Pool. To ensure high performance and leverage on international experience, Africa Re has been appointed as the manager to the pool.
As a way of promoting Micro insurance in Nigeria, the Association organised a micro-insurance fair in 2015 at the Blue Roof Hall, Agidingbi, Ikeja.
This aim was to bring the stakeholders together and chart the way forward for micro-insurance in Nigeria. I am happy to report that it was a success and we will continue to build on the success of that event to push micro-insurance as a veritable product line for improving market penetration
Although we have made modest progress, there is still a lot to be done.
I thank most profoundly, my colleagues in the Governing Council for their support and urge them to extend even a greater level of support to the in-coming Chairman of the Association.
Thank you and God bless
G. U. S. Wiggle
Chairman, NIA
New Forex Policy: CBN Segregates Banks on Trading
Three weeks after the Monetary Policy Committee’s (MPC) consensus decision to adopt a flexible exchange rate system, the Governor of the Central Bank of Nigeria (CBN) – Godwin Emefiele – at a press briefing on Wednesday, 15th June, 2016 announced the re-introduction of a market driven two-way quote single Interbank Foreign Exchange (FX) Market.
Though ultimately inevitable, reneging of the CBN represents a policy back-flip against the long-held stance of maintaining NGN/USD peg at N197.00/US$1.00.
Afrinvest Research has in recent reports – notably “Price Modulation” of the Downstream Sector …Taking the Bull by the Legs” of 17/05/2016 and “A Change in Market Sentiments… 5 Signs to Watch!” of 08/12/2015 – consistently noted that the erstwhile pegged exchange rate regime adopted by the CBN had a debilitating effect on major sectors of the economy, was unsustainable and was growth inhibiting.
We had also argued that a flexible exchange rate regime, together with a devaluation of the currency or the introduction of a Two-Tiered market would bode well for the capital market and the economy.
The CBN surpassed our expectations by not only adopting a single FX market structure without trading limits but also introducing derivative hedging products – Forwards, Futures, Swaps and Options – to ensure orderly transition to a market-based mechanism.
Whilst we laud the bold move by the CBN in instituting a flexible FX market structure, we reiterate our position on the restricted 41 items that are still termed “inadmissible” in the new market framework.
We think that perhaps the CBN should not use monetary policy tools to tackle issues that are better dealt with using fiscal policy tools. We believe as the system becomes more sophisticated through the depth and breadth introduced, market efficiency might convince the CBN to free the excluded items.
Given the above, we expect the financial market to pick up on the back of increased global funds inflow into the system and as investor sentiments favour investible assets in the money and capital market.
As part of the new guidelines for the workings of the new interbank FX market, the CBN is introducing Foreign Exchange Primary Dealers (FXPDs) who will serve as the bulk traders dealing directly with the CBN.
The somewhat stringent conditions (40.0% liquidity ratio, N200.0 billion shareholders’ funds and N400.0 billion foreign currency assets) for qualification as an FXPD will establish a new category in the banking industry.
Based on FY: 2015 and Q1:2016 data, only the Systematically Important Banks (SIBs) excluding Skye Bank would qualify.
This imposes a new element to banking industry’s fundamental competitiveness.
– Afrinvest Research
NIGERIA’S NAIRA DEVALUATION: NOT A DAY TOO SOON
BY AUBREY HRUBY
There was a collective sigh of relief from markets when the Nigerian Central Bank announced on Wednesday that it would, effective June 20,abandon the fixed rate for the naira against the U.S. dollar that it has defiantly held for 16 months and allow the currency to float freely.
The announcement comes amid difficult economic times—the economy contracted for the second quarter in a row, inflation crested 15 percentand security challenges remain in both the north and the Niger Delta regions—but it will not be a panacea.
Robust economic recovery requires a series of difficult reforms around which there are increasingly positive signals.
“Devaluation is definitely policy movement in the right direction as the economy was beginning to hemorrhage,” said Henry Obi, chief operating officer at Helios Investment Partners, an Africa-focused private economic firm with significant Nigerian exposure. The foreign currency crunch that has defined 2016 for Nigeria came as a result of the oil price collapse starting in mid-2014, the empty coffers that greeted the Buhari administration elected in May 2015 and structural dependence on imports.
A recent wave of violence in the oil-rich Niger Delta has exacerbated the country’s budgetary woes by reducing Nigerian oil exports to a 20-year low and leaving foreign reserves in May at $26.5 billion—down by nearly 50 percent since January 2014.
Given shrinking resources and the need to generate growth, managing the spread of naira to the dollar between the official and black markets—while the naira was officially pegged at 197 to the dollar, it traded for upward of 350 outside official channels—was no longer tenable.
The short-term pain is far from over. In the coming days and weeks, volatility will characterize the exchange rate as bankers, traders and investors begin to settle into the new system and test the limits of the Central Bank’s commitment to market forces. The governor of the Central Bank of Nigeria, Godwin Emefiele, has offered assurances that the bank “is determined to make this market as transparent, liquid and efficient as possible,” but it will take a month or two to assuage the concerns that have arisen around the slow-pace of economic policy making within the Buhari administration.
In a leaked letter to President Muhammadu Buhari from Governor Emefiele on the new exchange rate policy, he suggests that the naira could eventually stabilize at 250 to the dollar and that it could take four weeks to process the $4 billion backlog in foreign exchange demands. Nigerian commercial banks, with large unhedged dollar exposures, will also have to scramble to raise capital in order to stabilize their balance sheets that have been heavy with non-performing loans.
Everyday consumers will continue to suffer from steep inflation in the near term. The food segment of the consumer price index increased 2.6 percent from May to June, with the highest spikes seen in fish, fresh produce and cereals. In response to increasing deprivation, the government has taken efforts to stabilize the price of rice and, in April, Buhari ordered the release of 10,000 metric tons from the national strategic grain reserves. The delivery and distribution to those in need has been far from smooth and additional measures are being demanded.
The medium-term outlook is far brighter and it seems as if some of the hard economic reforms are finally starting to be made in Africa’s largest economy. It was a good sign that the country chose broader liberalization over the two-tier system that had been proposed and many see Buhari’s personal anti-corruption campaign behind the decision. Governor Emefiele reiterated the government’s strong stance on corruption in his comments on Wednesday’s devaluation, saying that the central bank “will not allow this system to be undermined by speculators and rent-seekers.”
In this new Nigeria under Buhari, pragmatism reigns—slow as it might be to materialize. Papa Ndiaye, chief executive officer of fund management company AFIG Funds and current investor in Nigeria, sees the devaluation as part of a larger reform process: “While some may say that the government took too long to abandon the legacy exchange rate system, the Buhari administration has shown their resolve in taking many structurally important, and politically difficult, steps to sanitize the Nigerian economy and address root causes of waste and market distortions.”
Some of the critical reforms on the horizon include a cleaning up of the national petroleum company, addressing customs inefficiencies, and building out domestic agricultural supply chains. To promote self-sufficiency and spur growth, the central bank set aside $200 million in 2015 for low-interest loans for rice and wheat farmers. Additionally, the cabinet agreed this week to borrow additional funds on the international market to reduce lending costs and continue to invest in critical infrastructure.
In a recent op-ed in The Wall Street Journal, President Buhari stated his view that his government is taking “actions that are providing the breathing room Nigeria needs during this period of fundamental change.” Now that the inevitable devaluation that dominated discussions around Nigeria over the past six months has come to pass, the pace of change can, hopefully, match the expectations around the country’s enormous economic potential.
NB: Aubrey Hruby is the co-author, with Jake Bright, of The Next Africa and a Senior Fellow at the Atlantic Council.
World Telecom Labs Survey: USF Offers Huge Potential for Connectivity
World Telecom Labs (WTL) unveiled the findings of its recent survey about the management and rollout of voice and/or data deployments in Africa that have been financed by Universal Service Funds (USF).
WTL invited people from across the telecoms ecosystem including vendors, operators and ISPs, NGOs and Government Officials to share their experience and opinions about USF and to identify where improvements could be made in the management of USF.
25% of the respondents had been directly involved with a network built using money from USF and were extremely well-informed and open to sharing their thoughts.
The key findings of the survey included:
96% of survey respondents see USF as offering huge potential to solve connectivity and service delivery issues in rural environments.
Operators, NGOs and Government Agencies all expressed an interest in delivering connectivity to unconnected areas with 86% of respondents feeling strongly that a combination of all three is required in order to unlock investment.
This implies that connecting the unconnected requires a coalition – a collaborative approach between all relevant stakeholders, including vendors who can offer technology to deliver the connectivity required.
The main obstacles blocking the building of networks using USF funds were identified as excessive bureaucracy and inflexibility of USF rules.
Concerns were raised about the sustainability of rural investments. However, many respondents were unfamiliar with the handful of companies – including WTL – which provide equipment specifically designed to build commercially viable networks in rural villages.
Leigh Smith, MD of WTL, said: “People were very open and eager to share their experiences and opinions – and most were extremely positive about the economic benefits of providing voice and data to areas which are still unconnected. Connecting the unconnected continues to be a hot topic with companies such as Facebook and Google investing heavily in their own initiatives.
At WTL we will continue to develop our portfolio of award-winning equipment to help operators, ISPs and NGOs build sustainable rural networks.”
WTL has built a number of networks in rural Africa partly financed by USF and has seen for itself the immense benefits USF can bring, irrespective of its challenges. In particular, the deployment of WTL’s Vivada (Village Voice and Data) system in rural Tanzania is an example of a strong and productive use of USF funds.
AMOTEL, Tanzania’s first MVNO operating through Tanzania Telecommunications Company Limited (TTCL), the country’s national telecom company, is initially deploying WTL’s Vivada system to build low OPEX, low-CAPEX networks in three villages that are not currently covered by any kind of network.
The proof of concept project is being financed by the Universal Communications Service Access Fund (UCSAF) as part of its US$9.6 million investment to improve connectivity in Tanzania, which was announced last year.
Royal Exchange Confirms Auwalu Muktari as Group CEO
The Board of Directors of Royal Exchange Plc has confirmed the appointment of Alhaji Auwalu Muktari, as the substantive Group Managing Director/CEO with effect from June 15, 2016.
Mr. Ken Odogwu, Chairman, Royal Exchange Plc, Mr. Kenneth E. Odogwu commended Muktari’s esteemed service and contributiuon towards the continous expansion of the Group. He also affirmed the Board’s belief in Muktari’s ability to drive the Group towards greater profitability and growth in the years ahead.
Odogwu added that with Muktari’s extensive experience and knowledge of the insurance industry, his primary assignment would be to drive the continuous growth and profitability of Royal Exchange and make the company a market leader in the financial services industry in Nigeria.
Below is a profile of Muktari:
Auwalu Muktari – Group Managing Director, Royal Exchange Plc
He completed his 1st degree in Business Administration and later his Masters Degree in Banking and Finance at Bayero University Kano in 1993 and 1995 respectively. He also attended Ahmadu Bello University Zaria where he obtained a Diploma in Insurance at Credit Level in 1983.
He started his working career with the Kano based insurance company, Kapital Insurance Limited and rose through the ranks to become Head of Re-insurance Department.
Muktari joined Royal Exchange Assurance Nigeria (as it was then known) in 1995 as Branch Manager in Kano, with direct oversight and responsibility over the activities of Bauchi, Maiduguri and Yola offices of the company. In 2003, he became the Regional Director, Abuja.
He left Royal Exchange Plc to become the Managing Director/Chief Executive Officer of Yankari Insurance Co. Ltd in 2008, (later called Fin Insurance to Co. Ltd) and returned to Royal Exchange as the Group Executive Director, Marketing and Sales in 2010.
Muktari was elected in 2010 as an associate member of the Institute of Directors, Nigeria; and is also a professional member of the following bodies: Associate Member, Institute of Management Specialist, UK; Member, Chartered Insurance Institute of Nigeria; Associate Member, Institute of Management and is currently the President of the Institute of Sales and Marketing Management of Nigeria.
He is an alumnus of Harvard Business School, USA and has attended various Executive Management & Development programmes.
About Royal Exchange Plc
Royal Exchange Plc started operations in 1921 and continues to be driven by innovation and a determination to offer services that are of exceptional value to its customers.
Following the recapitalisation exercise in 2007, the company was reorganised into a group structure comprising Royal Exchange Plc as the holding company and five strategic subsidiaries namely:
· Royal Exchange General Insurance Company Limited (Non-Life Insurance Services)
· Royal Exchange Prudential Life Plc (Life Assurance Services)
· Royal Exchange Finance and Investments Limited (Financial Advisory Services)
· Royal Exchange Healthcare Limited (HMO and Health Insurance)
· Royal Exchange Microfinance Bank Limited (Banking Services)
TU Focus Group Makes Progress on 2bn Unbanked People
The International Telecommunication Union (ITU) Focus Group on Digital Financial Services has published the first of a series of thematic reports on Digital Financial Services, or DFS.
The DFS Focus Group is looking at helping local policy and decision makers to accelerate their work on financial inclusion by providing practical tools, guidelines and recommendations on issues that are currently preventing the DFS market to develop organically.
This represents the first step in developing an international roadmap of best practice guidelines for regulators, operators and providers in the telecom and financial services sectors and serving the unbanked in a sustainable manner.
Specifically focused around two of the four working groups, DFS Ecosystem and Consumer Experience and Protection, the four background documents were endorsed at the Focus Group’s recent meeting in Washington DC.
ITU Secretary-General Houlin Zhao said: “What makes this Focus Group different is its holistic approach. After more than a year of intensive work, experts are completing some preliminary analysis and have started to develop a robust and relevant framework together with very pragmatic recommendations that will hopefully deliver real change and opportunity.”
Sacha Polverini, Chairman of the Focus Group and Senior Programme Officer of the Bill & Melinda Gates Foundation’s Financial Services for the Poor (FSP) programme, said: “Our initial observations provide two things: firstly, the publication of the Digital Financial Services Ecosystem report provides an agreed understanding between all relevant parties; secondly, our analysis of key elements of the process, such as issues around merchant acceptance and the role that national identity schemes can play, has helped provide a better understanding of how we can facilitate greater access to DFS in emerging markets. We made some surprising findings.”
Carol Coye Benson, Managing Partner at Glenbrook Partners and Working Group Co-Chair for DFS Ecosystem, added: “The key challenge in reaching digital liquidity is to balance both sides of the equation.
To get real value it’s important to drive money into the system and to keep it in. The way to do that is to enable bulk (G2P) payments into transaction accounts and simultaneously enable merchant electronic payment acceptance, so that consumers have a place to spend their e-Money.”
Africa Insurance & Reinsurance Conference for Kenya
The 6th Annual Africa Insurance & Reinsurance Conference 2016, is scheduled to be held in Nairobi Kenya on the 28th – 29th June 2016.
Come meet and network with industry leaders who encounter – and solve – the same challenges you face every day.
Learn how to gain a competitive advantage, benchmark your strategies, deliver a better customer experience, and so much more!
Topics at 6th Annual Africa Insurance & Reinsurance Conference 2016
· The Regional Macroeconomic Environment and Trends
· Assessing the Business Drivers for Insurance & Reinsurance Opportunities in Africa: Re-thinking Growth Strategies
· The Regulatory Environment-National Issues Likely to Impact Insurance Business
· Strengthening the Human Capital – Training & Development
· Distribution Strategies for Unleashing Growth across the Region
· Insurance and Financial Inclusion
· Framework – Cyber Risk Insurance
· Life Reinsurance – Areas of Growth and Opportunity
· The Landscape of Africa’s P&C Sector
· Capitalizing insurance / re-insurance companies – Investment Landscape
· Leverage the Opportunities in Technology for Growth and Maturity Key
· Development for commercial insurance products – What Industries – FMCGs, real estate, telecoms, and health
· Environmental liability & Weather Index Insurance
· Livestock and agri-business Insurance
· Pensions & Retirement Solutions
China Mobile Awards $1.5bn Contract to Nokia
Nokia has won an order worth just over $1.5 billion to supply network upgrades to China Mobile.
Under the agreement, Nokia will deploy its AirScale Base Station, which allows multiple radio technologies to operate simultaneously in one base station and offers scalability to support 5G speeds and IoT demand.
Nokia will also provide additional elements of its mobile radio access and core portfolio in addition to fixed access, IP routing and optical transport, customer experience management, operational support system (OSS) and third party products as well as its global Services expertise.
Going forward, Nokia and China Mobile will work to define the products and services that will enable the operator to meet ever-growing demands in a country where the majority of Internet users – 620 million of a total 688 million – use mobile devices to connect. Mobile phones were the most popular choice for 71.5 percent of new users accessing the Internet in China during 2015.
Mike Wang, President of the joint management team of Nokia Networks China and ASB, said: “This is a highly significant agreement with our longstanding partner; it strengthens Nokia’s position as a leading provider of next-generation technologies in China, and reflects our larger footprint in the country following the acquisition of Alcatel-Lucent.”
Digital Transformation Sets Agenda at IDC Summit
The region’s most influential ICT leaders recently gathered in Nairobi for the third annual installment of International Data Corporation’s East Africa CIO Summit.
With more than 100 CIOs, technology decision makers, and government advisors in attendance, the event examined the latest trends shaping tech adoption across the region and stressed the need for CIOs to take on a leadership position in their organisations’ digital strategies.
In the buildup to the highly regarded event, a senior delegation from IDC met with Joseph Mucheru, Kenya’s cabinet secretary for the Ministry of Information, Communications, and Technology, to discuss the current state of digital literacy in Kenya and share insights into the growth and development of ICT across the wider region.
Following these discussions, the East Africa CIO Summit was officially inaugurated with a speech from Matunda Nyanchama, a Senior Advisor to Kenya’s ICT Authority and Ministry of Information, Communication, and Technology.
Running under the theme of ‘Leading Your Organisation’s Digital Transformation’, the Summit saw a series of expert speakers explain how a hugely disruptive digital revolution is sweeping across East Africa.
Together, they stressed the need for the region’s end-user community to infuse a culture of innovation, integration, and incorporation into the very fabric of their organisations in order to not just survive but thrive in the new digital economy.
“For those of us responsible for enterprise technology, the emergence of this digital revolution brings with it challenges and opportunities in equal measure,” said Jyoti Lalchandani IDC’s Group Vice President and Regional Managing Director for the Middle East, Africa, and Turkey.
“Successful leaders are judged by their ability to effect change, and in this new digital world, change will be driven by a leader’s ability to manage the three connected disciplines of innovation, integration, and incorporation. These three disciplines underpin IDC’s new ‘Leading in 3D’ model for business success and represent the critical competencies required to drive true digital transformation across the entire scale and breadth of the modern enterprise.”
Mark Walker, IDC’s associate vice president for Sub-Saharan Africa, broadened the discussion by stressing the need for greater collaboration between CIOs and their finance counterparts in order to smooth the journey to a state of true digital transformation.
“As business transformation strategists and guardians of the balance sheet, CFOs have long been champions of new ICT technologies that open up new market opportunities, minimise operational expenditure, and facilitate improved risk mitigation practices,” said Walker.
“As such, they should be seen as important allies in the quest for digital transformation, particularly at a time when the demand to facilitate greater levels of innovation through technology investment must be balanced against the growing need to rationalize costs.”
The event’s agenda built on this theme, with respected industry thought leaders examining the changing role of the CIO and offering advice to the assembled ICT leaders on taking a leadership position within their organisation’s digital transformation journeys, enabling comprehensive connected security, and driving innovation through the use of converged infrastructure.
They also detailed strategies for securing enterprise data through the use of hosting and co-location services, and helped paint a clearer picture of the foundations that must be in place to ensure a smooth transition to the 3rd Platform.