Africa, Middle East PC Market Declines 26% in 1st Qtr

05/06/2016

The Middle East and Africa (MEA) PC market experienced a 25.9% year-on-year decline in shipments in the first quarter 2016, according to global technology research and consulting firm International Data Corporation (IDC).

Shipments to the region fell for the fourth consecutive quarter, to total 3.2 million units. Notebooks recorded a sharp 28.7% decline in shipments to total 1.9 million units, while desktop shipments registered a comparatively slower decline, falling by 21.4% year on year to total 1.3 million units.

“All the largest markets in the region declined in Q1 2016,” says Senior Research Manager, Fouad Charakla, Personal Computing, Systems, and Infrastructure Solutions, IDC Middle East, Africa, and Turkey.

“The reasons differ from country to country, but slowdowns in tourist spending, lower consumer confidence resulting from low oil prices, political and economic instability, currency devaluations, and military conflicts have all played a part in the regional contraction. The on-going shift in end-user spending toward smartphones and, to a lesser extent, tablets in the consumer segment was also a key element in the market’s decline.”

Similar to previous quarters, the positions of the top three vendors remained unchanged in Q1 2016. Despite experiencing a year-on-year decline of 23.4% in shipments, HP remained the market leader, securing the highest market share ever attained by a PC vendor in the region over the past 10 years. Second-placed Lenovo registered a slightly deeper year-on-year decline of 25.2%, while third-placed Dell suffered the sharpest decline of all vendors, recording a 28.9% fall in shipments.

Meanwhile, fourth-ranked Acer was the only vendor to experience growth in the region, with a 2.2% year-on-year increase in shipments.

However, the gap in terms of the market share of the top four vendors remains significant. In fifth place, Asus suffered a year-on-year decline of 7.3% in shipments during the first quarter of the year.

“With the approach of the holy month of Ramadan combined with the usual summer slowdown in activity, the second quarter of 2016 is also expected to record a decline in shipments, albeit a much softer one,” continues Charakla.

“In the longer term, the PC market is expected to recover to some extent in 2017, with modest growth anticipated in the following years. Shipments to Africa are expected to grow slightly faster than shipments to the Middle East. Some substantial desktop orders were secured by local brands in Egypt and Algeria during Q1 2016, and there were also a number of large education sector deliveries that took place in smaller African markets during the quarter, such as in Rwanda, Burkina Faso, and Ivory Coast.”

As highlighted in IDC’s previous forecasts, there will continue to be a gradual shift in the pattern of demand from consumers to commercial customers, as a growing proportion of home users switch from PCs to tablets and smartphones, while commercial end users retain a stronger loyalty to PCs.

The only exception to this trend will be the education sector, where commercial users will transition from PCs to tablets at a much faster rate. Despite this anomaly, commercial demand for PCs in the region is expected to surpass that of home users by 2018.

About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets.

With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries.

IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives.

Founded in 1964, IDC is a subsidiary of IDG, the world’s leading technology media, research and events company.

IDC in the Middle East, Africa, and Turkey
For the Middle East, Africa, and Turkey region, IDC retains a co-ordinated network of offices in Riyadh, Casablanca, Nairobi, Lagos, Johannesburg, Cairo, and Istanbul, with a regional center in Dubai.

Our coverage couples local insight with an international perspective to provide a comprehensive understanding of markets in these dynamic regions. Our market intelligence services are unparalleled in depth, consistency, scope, and accuracy.

IDC Middle East, Africa, and Turkey currently fields over 130 analysts, consultants, and conference associates across the region.

ATCON: ‘No Comment’ on $3. 9bn NCC, MTN Saga

Business Journal

04/06/2016

The Association of Telecommunications Companies of Nigeria [ATCON] has declined to comment on whether MTN Nigeria should pay the $3. 9 billion fine imposed on it by the Nigerian Communications Commission [NCC] or refuse to pay.

Mr. Olusola Teniola, President of ATCON, said in Lagos yesterday that he has ‘No Comment’ on the issue of payment of the fine.

Rather, he said the official position of ATCON is for continous consultation and dialogue between the NCC and MTN Nigeria and other relevant stakeholders to settle the matter amicably.

“Our position is that consultation and dialogue are crucial in resolving all contending issues. ATCON supports our members to operate optimally and we also have our Code of Conduct guiding our members.”

Teniola lamented that most rich Nigerians do not invest in the Information & Communications Technology [ICT] sector in the country.

He said the sector is being driven largely by foreign investment, rather than local funds.

He listed some of the challenges facing the sector as multiple taxation, multiple regulation and foreign exchange hiccups.

He appealed to the Federal Government to declare the ICT industry as priority area in terms of accessing forex at official rate to support robust growth of the sector.

NSE Receives Award for Promoting Financial Literacy

Business Journal

04/06/2016

The Nigerian Stock Exchange on Friday, May 27, 2016, received the “Corporate Achievement Award to a Financial Institution” at the inaugural annual Financial Literacy Excellence (FILEX) Awards.

The Award which is aimed at celebrating and recognising leadership and innovations that promote financial literacy in Nigeria was presented to the Exchange for its annual essay competition and investment education programmes in the capital market.

Speaking at the awards ceremony, Dr. Bola Fajemirokun of DIN Resource Centre said:
“The Awards celebrate the important work by individuals and organisations aimed at improving knowledge and awareness of financial matters among consumers. Financial Literacy can only be achieved through targeted financial education initiatives and these must be grounded in a thorough understanding of the financial behaviours and attitudes of Nigerian consumers”.

On receiving the award, the Head, Corporate Services Division, NSE, Mr. Bola Adeeko expressed the Exchange’s appreciation stating that Financial Literacy and Investor Education remains at the core of the Corporate Social Responsibility Strategy of the Exchange.

“The NSE will continue to ensure that Investors and the citizenry are equipped with the right knowledge to enable them take sound investment decisions.”

“One of the major vehicles for this is the Annual Essay Competition of the Nigerian Stock Exchange which is in its 16th year. It has inspired over 20,000 young people in over 7,000 secondary schools across Nigeria to showcase what they have learned about financial and capital markets”.

In 2015 alone, the Exchange held over 180 free financial literacy workshops across the federation reaching over 17,000 people. The workshops are aimed at enhancing investor understanding of the basics of capital market investment.

These initiatives are localised investor education events driven through The Exchange’s 13 branch offices, and mostly targeted at low-end retail investors (students, retail traders, etc.). The Nigerian Stock Exchange will continue to champion financial literacy and inclusion initiatives in Nigeria.

ABOUT THE NSE
The Nigerian Stock Exchange, a company limited by guarantee, services the largest economy in Africa and is championing the development of Africa’s financial markets.

The Exchange offers listing and trading services, licensing services, market data solutions, ancillary technology services, and more.

The Nigerian Stock Exchange continues to evolve to meet the needs of its valued customers, and to achieve the highest level of competitiveness. It is an open, professional and vibrant exchange, and the Entrepreneurial Growth hub of Africa.

The Nigerian Stock Exchange aspires to be Africa’s foremost securities exchange, connecting Nigeria, with the rest of Africa and the world.

MTN Rwanda Unveils YOLO, Platform for Young Subscribers

Business Journal

04/06/2016

MTN Rwanda just introduced a new platform for youths, 16 to 24 years old, named YOLO.
Yolo offers customised voice and data bundles that aim to improve the telecom experience of the youth on this segment.

A marketing campaign entitled “YOLO, Go Be Great” was in fact launched by the firm.

Explaining the need for this new service, Gunter Engling, CEO MTN Rwanda said: “Yolo is our way of connecting with the youth that represent about 40 percent of the total population of Rwanda. As MTN, we are dedicating our efforts and resources to help nurture the youth, inspire them and drive them to achieve greatness. Therefore want to invest in developing youth who will be proud of themselves and that Rwanda will be proud of.”

According to MTN Rwanda’s Marketing Director, Yvonne Manzi Makolo, Yolo responds to youth’s need for customised products and for offers which correspond to them. She added that MTN Rwanda, with Yolo, was showing youths how to contribute to the firm’s growth.

U.S. Condemns China’s Cyber Rules for Insurers

Business Journal

04/06/2016

Controversial cyber security regulations for China’s insurance industry, now before the World Trade Organisation (WTO), could soon take effect despite efforts by foreign business groups to persuade Beijing to change tack.

Those groups say the draft measures are vague and discriminatory, and industry experts say international insurers could be required to source substandard or insecure technology or software in order to do business in China, or use products incompatible with their global operations.

First announced by the China Insurance Regulatory Commission (CIRC) last year, the draft rules have revived debate over Chinese rules that incorporate contentious data localization mandates and “secure and controllable” provisions for IT products.

Critics fear the rules could be used to drive preferential treatment for Chinese companies supplying businesses and government departments – as China rolls out its Internet Plus and Made in China 2025 strategies, which aim to make Chinese firms world technology leaders and call for more local components in key industries such as robotics.

Concerns over the draft insurance regulations are likely to add to already rancorous U.S.-China trade relations ahead of the annual Strategic and Economic Dialogue on June 6-7 in Beijing, which will be attended by U.S. Secretary of State, John Kerry and Treasury Secretary, Jack Lew.

“This is much broader than the CIRC measures. It’s about laying down a marker which they will then replicate in other sectors,” said a person with knowledge of the rules and the upcoming talks.

The person said the regulations and the attending “secure and controllable” issue are set to be one of the top items on the United States’ agenda for the June talks.

“This has been raised across the U.S. government at the highest levels … there is a good understanding of what this CIRC play represents and that it’s a big problem,” the person said.

China is considering similar regulations for banking technology, though push-back from industry and the U.S. government last year has slowed their rollout.

Beijing has said repeatedly that foreign businesses have nothing to fear from new measures intended to address what officials say are growing security threats, such as terrorism.

But industry advocates say insurance products are hardly critical to national security and don’t merit such provisions. ‘Secure and controllable’ policies are unworkable for global industry,” said Jacob Parker, Vice President of China operations for the U.S.-China Business Council.

Foreign insurers already face market access barriers in China, including ownership caps and licensing difficulties. Foreign-invested insurers have less than 5 percent market share in China, according to the American Chamber of Commerce.

PURCHASING PRIORITY
More than 20 foreign business lobbies, including the American Chamber of Commerce in China and the American Council of Life Insurers (ACLI), petitioned the CIRC late last year to amend the draft regulations, which state that insurance companies should prioritise buying “secure and controllable” products, including Chinese encryption technologies, hardware and software.

On April 19, the CIRC filed technical barriers to trade (TBT) notification to the WTO, indicating the rules would be approved within 60 days. Trade experts say the WTO has no say in the filing designed simply to alert trade partners.

The foreign groups say the rules have not been substantially changed to address concerns after an initial comment period, and the tight deadline listed in the WTO filing suggests China has little intention to incorporate feedback.

Several groups plan to petition CIRC Chairman Xiang Junbo in writing ahead of the U.S.-China talks, according to documents seen by Reuters.

The CIRC could not be reached for comment on the issue.

The regulations currently require all China data for insurance products be stored in China, and mandate that any international data transfers be conducted according to yet unspecified regulations.

That could also create obstacles to moving information overseas and to third-party service providers, such as accounting firms.

Article 53 requires that insurance providers give purchasing priority to so-called “secure and controllable” products.

Such provisions have appeared in a number of draft Chinese laws and regulations. Though Beijing has not formally defined the term, foreign business groups say they would entail onerous conditions, such as providing authorities access to proprietary source code or incorporating Chinese components.

IATA Names Alexander Juniac as New DG/CEO

Business Journal

04/06/2016

The International Air Transport Association (IATA) announced leadership changes at the conclusion of the Association’s 72nd Annual General Meeting (AGM) in Dublin, Ireland.

Willie Walsh, CEO of International Airlines Group (IAG) succeeds Andres Conesa, CEO of Aeromexico, as Chairman of the IATA Board of Governors (BoG). Walsh, who represents British Airways (BA) on the IATA BoG, takes up his duties immediately for a one-year term until the conclusion of IATA’s 73rd AGM.

Alexandre de Juniac, Chairman and CEO of Air France-KLM, was confirmed to succeed Tony Tyler as IATA’s Director General and CEO. His appointment is effective from 1 September 2016.

Board of Governors Developments
Walsh is the 75th Chair of the IATA BoG and the sixth to fulfil that function while representing BA or its predecessor airlines. He has served on the IATA BoG continuously since 2005.

“I’m honoured to serve in this important role at such a critical time. Our top priority is getting governments’ agreement on a global market-based measure to manage aviation’s carbon emissions at the 39th Assembly of the International Civil Aviation Organisation later this year. This is a once-in-a-generation opportunity which is vital if our industry is to achieve carbon-neutral growth from 2020,” said Walsh.

Walsh also noted a broader IATA agenda with governments, “Too often government policies limit aviation’s ability to be a catalyst for economic growth and development. Excessive taxes rob our industry of its vitality while costly and ineffective infrastructure constrains our ability to support rising demand for connectivity. Regulation often comes with negative consequences for both passengers and airlines. I look forward to supporting Alexandre de Juniac as he takes the reins at IATA. Together we will ensure that IATA has an even stronger voice of leadership on these issues.” said Walsh.

Director General and CEO Designate
De Juniac will be the seventh person to lead IATA as its Director General.

“I thank my industry colleagues for their confidence in confirming me as IATA’s next Director General and CEO. Aviation is a vitally important industry—connecting economies, facilitating business, creating jobs and linking people. I have big shoes to fill as Tony Tyler has done an excellent job over the last five years,” said de Juniac.

“I know how challenging it is to run an airline and how much airlines depend on IATA to support their business—to safely process industry money, to deliver effective advocacy, to lead global initiatives and to provide relevant products and services. My aim is to help airlines to be even more successful businesses creating even greater economic and social value. I want all of our members to have a future that is even safer, more efficient, sustainable and increasingly profitable.”

De Juniac is a French businessman. He will join IATA from Air France-KLM where has served as Chairman and CEO since 2013. Prior to that, he was the Chairman and CEO of Air France (2011-2013).

From 1995 to 2009, de Juniac held various leadership positions in Thales (the French aerospace, space, defense, and transport company previously known as Thomson-CSF and Thomson SA).

De Juniac has also held positions in the French government, including with the State Council (1988 to 1993), the Department of Budget (1993-1995); and in the Ministry of Economy, Industry and Employment (2009-2011).

Tony Tyler, Director General and CEO
“IATA will be in good hands under the leadership of Willie Walsh as Chairman of the BoG and Alexandre de Juniac as the Director General and CEO. I want to extend my thanks to the membership, the BoG and five exceptional BoG chairmen. They have guided me and the IATA team with wise counsel and tremendous support over the last five years,” said Tyler.

“Working together—IATA with its members—we have made our association stronger with closer partnerships across the industry. And with those partnerships we have made significant progress towards improving safety, modernising distribution, promoting smarter regulation and managing our climate change impact. There is always, of course, more work to do. I am fully committed to my duties until September when I hand over to Alexandre the responsibility of supporting our members to be profitable businesses that are a force for good in our world,” said Tyler.

Aeromexico to Host 73rd IATA AGM in Cancun

Business Journal

04/06/2016

The International Air Transport Association (IATA) announced that Aeromexico will host the 73rd IATA Annual General Meeting (AGM) and World Air Transport Summit. The event will attract the top leadership of the air transport industry to Cancun, Mexico from 4-6 June, 2017.

“Cancun is an excellent choice for the 73rd IATA AGM. Mexico’s Quintana Roo State is world-renowned for its beautiful Caribbean beaches, rich history and culture. And aviation plays a critical role in connecting it to global tourism markets. Cancun’s economic development is a testament to the transformative power of air transport,” said Tony Tyler, IATA’s Director General and CEO.

IATA’s member airlines accepted Aeromexico’s invitation to host the AGM in 2017 at the close of the 72nd AGM in Dublin, Ireland.

Aeromexico has been a member of IATA since 1958. Andres Conesa, the airline’s CEO, has served on the IATA Board of Governors since 2008, including as its Chairman for the 2015-2016 term.

Next year’s AGM will be the third time it is held in Mexico, following the AGMs in Mexico City in 1994 and 1966.

“I look forward to welcoming the aviation world to Mexico next year. Delegates will find a vibrant economy in which aviation plays a key role. The industry’s footprint in Mexico includes some 156,000 jobs and $4 billion in economic activity. Ambitious infrastructure developments supported by a strategic location at the center of the Americas will ensure a growing role for Mexican aviation on the global stage,” said Conesa.

The 72nd AGM and World Air Transport Summit in Dublin attracted nearly 1,000 aviation leaders from IATA member airlines, industry stakeholders, strategic partners and members of the media.

Ex-AIG Chairman, Greenberg, Face Fraud Trial

Business Journal

04/06/2016

New York’s highest court again rejected a bid by former American International Group Inc. Chairman, Maurice “Hank” Greenberg to dismiss the state’s decade-old fraud suit against him, clearing a path for a trial.

Greenberg, 91, stepped down as CEO of AIG in March 2005 after building it into the world’s largest insurer over four decades.

Shortly thereafter, company officials said one of its transactions was improper, restated its earnings by $3.4 billion and paid $1.6 billion to settle claims by regulators.

Greenberg and former AIG Chief Financial Officer, Howard Smith were sued the next month by then Attorney General, Eliot Spitzer under the State’s Martin Act, an almost century-old law that gives prosecutors the power to probe investment frauds, Ponzi schemes and other forms of white-collar crime.

Spitzer alleged Greenberg and Smith were responsible for transactions to hide a decline in the company’s loss reserves and mischaracterise underwriting losses.

Since then, Greenberg has faced off against three successive attorneys general in the case, which was set to go to trial in June 2015 before an appeals court in Manhattan sent it to the state’s high court in Albany for review.

The lawsuit will return to New York State Supreme Court Justice Charles Ramos in Manhattan for trial.

Greenberg said in a statement that Thursday’s decision fails to address his main argument on appeal—that the relief sought by the Attorney General is barred by settlements with AIG and the Securities and Exchange Commission.

Considering Options
Greenberg “is considering his options in light of this decision, which he believes flies in the face of both the court’s own precedent and federal law.”

In a statement, Attorney General, Eric Schneiderman said he was “very pleased the people of New York will finally have a chance to obtain justice at trial.”

“We look forward to demonstrating that Greenberg and his associates orchestrated two major frauds that caused massive losses to AIG’s shareholders,” he said.

Greenberg had argued that the Martin Act and another state law didn’t allow the attorney general to seek to bar him or Smith from the securities industry, ban them from serving as officers or directors of public companies, and ask for repayment of wrongfully obtained profits.

The court in Albany disagreed, saying the relevant laws allow the attorney general to seek a range of remedies including repayment.

“The Martin Act contains a broad, residual-relief clause, providing courts with the authority, in any action brought under the act, to ‘grant such other and further relief as may be proper,’” the Court of Appeals said.

Powerful Allies
State prosecutors dropped their demand for monetary damages after AIG shareholders settled claims against the company for $115 million.

But they continued seeking to force Greenberg and Smith to disgorge any performance-based bonuses that may be related to the transactions and to have the two men barred from the securities industry and from serving as corporate directors.

Greenberg has been supported by high-powered allies in his fight against the attorney general, including former New York governors George Pataki and the late Mario Cuomo.

The case stems from two reinsurance transactions: a deal with Berkshire Hathaway Inc.’s General Reinsurance Corp. used to reverse a decline in loss reserves at AIG and an agreement with CAPCO Reinsurance Co.

Four former Gen Re executives and one from AIG were convicted of accounting fraud charges in 2008 but won reversals in 2011. Federal prosecutors agreed to drop charges in 2012 under deferred-prosecution agreements after the former executives admitted “aspects” of the Gen Re deal were fraudulent.

Meanwhile, Greenberg sued the U.S. government over the 2008 bailout of AIG, claiming the company’s equity was wrongfully taken.

His Starr International Co. is currently appealing a Federal Court ruling from last year that found the bailout was illegal but didn’t award any of the $40 billion in damages that Greenberg sought. The court said he wasn’t entitled to compensation because AIG likely would have filed for bankruptcy if not for the rescue.

The case is State of New York v. Greenberg, 401720-2005, New York State Supreme Court.

SEMINAR REPORT

Business Journal

04/06/2016

5 Tips for Successful Digital Transformation

New digital technologies are transforming the way business is done across the enterprise.
The potential benefits of a successful digital transformation are compelling. What business would pass up the chance of delivering a better service for customers, improving efficiency and cutting costs? However, realising that potential requires careful consideration and planning.
While 92 percent of IT decision-makers surveyed for Fujitsu’s “Walking the Digital Tightrope” report classed their organisations as “somewhat” or “extremely mature” with regards to digital maturity, 70 percent felt that digital projects were a gamble and 65 percent admitted their digital projects were not aligned.
For any insurance organisation working up a digital strategy, there are clearly challenges to overcome, but they’re not insurmountable.

1: Gather Feedback, Discuss and Plan
One of the main reasons digital transformation strategies fail is because they aren’t properly planned out. The pressure to compete, or the fear of falling behind, can lead to bad decisions.
Almost half of insurers don’t think they have a realistic plan for digital transition, and 60 percent report that they’re missing key elements like clear vision, compliance and risk processes, according to Bain & Co.’s “Global Digital Insurance Benchmarking Report 2015.”
To avoid this problem, you need to get all the key stakeholders involved in the planning process. You need to look at internal and external feedback to identify key areas to target for improvement. It’s vital to choose new technologies for the right reasons.
Get all the cards on the table, discuss the merits of different strategies, and make sure that everyone agrees on the right path forward. Once you have a plan, lay out a clear roadmap for delivery. Set up metrics that allow you to measure the progress and impact of your new processes and tools.

2: Put the Customer First
A customer-centric approach is the key to securing loyalty and attracting new business. Consider how expectations have changed. Customers want easy access to their products 24/7, and they expect personalized service.
Provide an accessible web portal and convenient apps. If customers want to update their contents inventory at 11 p.m. or upload a photo of some damage from their phone, enable them to do that.
You can also harvest the data you collect for useful insights that allow you to develop new, innovative products and better serve your customers. It’s not about sweeping away the old.
The digital technologies you choose should support and complement your current services, building on your existing foundations. Always keep the customer in mind and ask—what will this new technology deliver for them?

3: Equip Claims Pros with the Right Tools
You can free up claims adjusters from laborious, time-consuming tasks and make life more convenient for your customers by employing the right tools. A cloud-based claims management system enables mobility and provides an efficient and clear workflow.
With the right data and intelligence working behind the scenes, possibly fraudulent claims are automatically flagged for investigation. Self-service portals allow customers to capture inventories and check on claim progress at a time that suits them, and they cut the workload for adjusters.

4: Keep Security Tight
The risk of a data breach for any company is severe. The average consolidated total cost of a breach is $3.8 million, according to Ponemon Institute research. But for an insurance carrier, the reputational damage is incalculable. Customer concerns about privacy must be treated seriously. Security has to be baked into any digital transformation plan.
Hire a qualified CISO and consider engaging some security experts to test your system, help you find the weak spots and plug them. Ensure that data is always encrypted. Protect all data at rest and in transit with the latest encryption technologies.
This will drastically lower the odds of any malicious activity exposing any customer data. Security is an on-going concern, not a task that can be ticked off, so make sure you provision for regular checks and updates.

5: Find a Balance
It can be difficult to juggle all of these considerations. You want to deliver tangible improvements for your customers as well as for all of your internal departments. You’ll need to balance and integrate new technologies with legacy systems. You also need to make sure that data is secure without sacrificing convenience for employees and customers.
Finding the right balance will be different for every carrier, and your digital presence will have to evolve and adapt. Drawing up an initial digital strategy is about starting a conversation that will continue for years to come—that’s why measuring your progress is so important. You need to know what’s working and what isn’t, so that you can change direction when you need to.
The beauty of digital transformation done right is that it’s mutually beneficial for your business and for your customers.

-Robert Chase

$600m Airline Funds Trapped in Nigeria

Business Journal

02/06/2016

The International Air Transport Association (IATA) has called on governments to respect international agreements obliging them to ensure airlines are able to repatriate their revenues.

“Air connectivity is vital to all economies. The airline industry is a competitive business operating on thin margins. So the efficient repatriation of revenues is critical for airlines to be able to play their role as a catalyst for economic activity. It is not reasonable to expect airlines to invest and operate in nations where they cannot efficiently collect payment for their services,” said Tony Tyler, IATA’s Director General and CEO.

Venezuela and Nigeria
IATA monitors blocked funds globally, the sum of which exceeds $5 billion. The top two countries blocking the repatriation of airline funds are Venezuela and Nigeria.

Venezuela: Airline funds blocked from repatriation in Venezuela total $3.8 billion. Currency controls implemented in 2003 necessitate government approval to repatriate funds. By 2013, approvals were not keeping pace with the amount of funds requiring repatriation and significant airline revenue accumulated in Venezuela. The situation became critical in 2015 when only one request to repatriate funds was approved. So far in 2016 only one request to repatriate funds has been granted.

Nigeria: Total airline funds blocked from repatriation in Nigeria are nearing $600 million. Repatriation issues arose in the second half of 2015 when demand for foreign currency in the country outpaced supply and the country’s banks were not able to service currency repatriations. Nigerian authorities are engaged with the airlines and are, together with the industry, seeking possible measures to make the funds available.

“Blocked funds are a problem in a diverse group of countries, some of them undergoing significant economic challenges particularly with a fall-off in oil revenues. But one thing all five nations have in common is the urgent need for robust air connectivity that is being hampered by airlines’ difficulty in repatriating funds. Strong connectivity is an economic enabler and generates considerable economic and social benefits–something that struggling economies need more than ever. It is in everybody’s interest to ensure that airlines are paid on-time, at fair exchange rates and in full,” Tyler said.

Top Five Country’s Blocking Repatriation of Airline Funds

Country	Amount US$ Million	Months Held
Venezuela	3,780	16
Nigeria	591	7
Sudan	360	4
Egypt	291	4
Angola	237	7

IATA (International Air Transport Association) represents some 264 airlines comprising 83% of global air traffic.

Nigeria Imports N1bn of Rice Daily

Business Journal

02/06/2016

N1billion. That is, according to the Arewa Consultative Forum’s former president, how much rice Nigeria imports every day.

Addressing shareholders of Jamaiyar Matan Arewa during a meeting, Alhaji Aliko Muhamed said spending so much on rice imports was needless given Nigeria’s assets. Comparing to China, he said: “China has a population of around 1.3 billion people but they don’t import food. They are able to feed themselves while Nigeria which has a population lower can’t feed its people without imports.”

He then called on government at all levels in the country to take necessary measures to reverse the trend. Muhammed also asked Nigerian women to urge their husbands to turn to agricultural activities.

This speech comes as Nigeria’s economy presently experiences some turmoil resulting from fall in price of oil. The situation which has driven authorities to turn to other sources of revenue places agriculture as a valid alternative to oil and gas.

– Aaron Akinocho

Insurance Capital: U.S. Federal Reserve Meets Today

Business Journal

02/06/2016

The U.S. Federal Reserve will hold an open meeting today on proposals, in the works for more than five years, for capital requirements and other rules for insurance companies.

The central bank’s announcement last Friday came a week after Fed Governor Daniel Tarullo previewed the proposals in a speech to insurance commissioners.

Requirements for the amount of capital regulators say a company must have on hand to ward off excessive borrowing or insolvency will apply to a large swath of the insurance industry. The Fed will also release proposed rules for the few insurance companies deemed “too big to fail” that are intended to head off risks to U.S. financial stability.

The industry has waited more than five years to see the rules, which are tied to the Dodd-Frank Wall Street reform law passed in 2010 after the financial crisis.

According to Tarullo, the capital level proposals will follow two tracks: one for smaller holding companies that own banks and one for systemically important companies.

For insurance holding companies, the Fed is looking into a “building block approach,” in which it would aggregate the capital across a firm’s different units to calculate a single requirement.

For systemically important companies, the Fed is working on a “consolidated approach” that would categorize assets and liabilities into risk segments, assess each segment and then set a minimum ratio of the consolidated capital requirement to capital resources, Tarullo said.

Dirk Kempthorne, President of the American Council of Life Insurers Trade Group, said it has “questions about an approach that would put in place two distinctly different capital regimes for insurance entities overseen by the Board, and so we will be looking extremely closely at the details of the proposals once they are released.”

AXA, Jumia Unveil Insurance Policy for Mobile Phones

Business Journal

02/06/2016

The insurer, AXA Côte d’Ivoire and Jumia, the ecommerce leader, launched on Monday, May 30th, the first online sales service for mobile phones insurance in Côte D’Ivoire. Two products under the name “ASSUR’MOBILE” are now available through Jumia at annual flat rates.

Taking advantage of the Mobile Week that started yesterday on www.jumia.ci, AXA and Jumia Côte d’Ivoire have launched two insurance products for mobile phones named ASSUR’MOBILE S001 and ASSUR’MOBILE S002.

The two policies are affordable device insurance plans offered to Jumia customers. They provide the policyholder, cover against accidental breakage of screens for a period of one year. The first, ASSUR’MOBILE S001 is reserved for phones with a value between 40,000 and 100,000 CFA francs and costs only 2,500 CFA francs (4 USD).

The second, ASSUR’MOBILE S002, protects phones costing between 100 000 CFA francs and 200 000 CFA francs for a flat premium of 3,500 CFA francs (6 USD).

The subscription to ASSUR’MOBILE is easy and convenient. The customer will select the appropriate insurance plan while buying a new phone on Jumia. He will receive a concise contract form with the phone to fill out and sign without moving. The signed form will go back with the delivery agent.

“This new service offered by Axa and Jumia is a big step forward for consumers! It now becomes extremely simple to insure against a very common and very costly damage, I think our customers will take advantage of it during the Mobile Week” commented Francis Dufay, Managing Director of Jumia Côte d’Ivoire.

According to a study by Love2recycle and confirmed by one from Motorola, screen breakage is well ahead of mobile phone failures and 50% of smartphone users worldwide have already experienced a broken screen.

About JUMIA
JUMIA is Africa’s leading online shopping destination. Customers across the continent can shop amongst the widest assortment of high quality products at affordable prices – offering everything from fashion, consumer electronics, home appliances to beauty products. JUMIA was the first African company to win an award at the World Retail Awards 2013 in Paris as the “Best New Retail Launch” of the year.

India Tablet Shipments Sluggish in Q1 2016

Business Journal

02/06/2016

According to International Data Corporation (IDC), Indian tablet market in CY Q1 2016 remained flat over previous quarter with total shipments of 0.86 million units (including slate and detachable form factors).

However, shipments grew by a marginal 1.3 percent over the same period last year. Declining consumer interest in the slate tablet form factor and rapid growth of large screen smartphones (phablets) causing the tablet market to slow down.

Detachables traction continued in Q1 2016 with triple digit year-over-year growth, although it was on low base as uptake in this form factor began mainly from Q2 2016.

“Windows based detachables continue to account over 70 percent share, however Apple’s recent foray into this segment has garnered them to clock decent numbers given the premium price of their products. Although, continued long-term success may prove challenging as it plays in higher entry price point and iOS is yet to prove its enterprise-readiness unlike Microsoft” says, Karthik J , Senior Market Analyst, IDC India.

Micromax continued to lead detachables category accounting for more than one-third of total shipments in Q1 2016.

“Smartphone vendors constitute more than half of detachables. Their strong understanding of mobile ecosystem and the volume achieved from their smartphone product lines would allow them to aggressively compete in this new computing segment”, adds Karthik.

Top 5 Vendor Highlights:
Datawind: Datawind withstood its top position with 27.6 percentage share as shipment grew at a healthy 33.5 percent over previous quarter. Vendor’s shipments doubled year-on-year showing a sharp trajectory in last one year. Vendor’s television channel partners played pivotal role in this quarter’s growth through their aggressive marketing and selling during mid-quarter.

Samsung: Samsung sustained its 2nd place with vendor share of 15.2 percentage in Q1 2016. Shipments dipped marginally by 3.7 percent over previous quarter but grew 5.1 percent over Q1 2015. Entry level Galaxy Tab models continue to be volume runners for Samsung in Slate tablets.

However, vendor began to face stiff competition in premium detachable segment from Apple and Microsoft in Q1 2016.

Lenovo: Lenovo being the only PC vendor in Top 5 moved up to 3rd position in Q1 2016 with a market share of 13.6 percentage. Q1 2016 shipment grew at a healthy 30.5 percent over the same period last year while dipped marginally over Q4 2015. While commercial segment continued to drive volumes for the vendor, its new product Phab saw some healthy shipments in consumer segment.

Micromax: Micromax slipped to 4th place as shipments dip further in Q1 2016 by 27 percent over previous quarter to hold the market share of 11.3 percentage.

However, vendor managed to post 16.2 percent growth over the same period last year owing to healthy contribution from its Laptab detachable.

iBall: iBall manages to be in Top 5 with vendor share of 8.7 percentage in Q1 2016. iBall shipments dip approximately by 12 percentage both sequentially and year-on-year. While the vendor was one of the first few who introduced low cost detachables in the Indian market, it has somewhere lost out opportunity to capitalise the growth in detachable category.

Sarovar Hotel Group Plans 1O Hotels in Africa

Business Journal

02/06/2016

In a statement published on May 23, the Indian hotel management firm, Sarovar Hotels said it planned to operate 1O hotels in Africa in the next five years.

Sarovar Hotels Pvt ED Ajay K Bakaya said: “This is a major step in our growth and expansion strategy and we are looking to operate 10 hotels in Africa in the next five years.”

The Mumbai-based group also announced its entry in South Sudan by taking over the management of Panorama Hotel. Located in Juba, the building which counts 73 rooms and suites will be renamed Panorama Sarovar Portico.

“This is a major step in our growth and expansion strategy and we are looking to operate 10 hotels in Africa in the next five years,” said Sarovar Hotels Pvt ED Ajay Bakaya.

Sarovar Hotels presently operates more than 75 hotels worldwide under the Sarovar Premiere, Sarovar Portico, Hometel, Park Plaza and Radisson brands.

In Africa, the group manages three hotels: the Heron Portico in Nairobi, the New Africa Hotel in Dar-es-Salaam and the Zehneria Portico in Nairobi.

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