Olashore: ‘Economy on Track to Greatness Despite Challenges’

By

-

16/03/2016

The Chairman of Lead Advisory Partners, Prince Abimbola Olashore has restated the underlying strengths and long-term potential of the Nigerian economy, despite the prevailing challenges and inadequate stimulation of the productive sectors of the economy.

In his x-ray of the Nigerian Economy to a global audience at the recent WCF Forum in Davos Switzerland, Prince Olashore rated Nigeria still as one of the fastest growing countries in the world with the largest economy in Africa and 23rd largest in the world.

“The Nigerian economy has grown on the average of about 6% per annum over a 10 year period. Though the economy has slowed down in the last 18 months as the adverse effect of the drop in oil prices is taking root, Nigeria has a far more diversified economy than people realise. It has a lot of untapped potentials, well established democracy, a firm rule of law and an authentic and sustained fight against corruption is taking roots. And even with the upheavals from the foreign exchange rates and the rising cost of certain imported good, Nigeria remains a strong emerging marker with low dangling fruits.”

Despite our seeming over dependence on Oil and Gas, that sector is only about 12% of the Nigeria’s GDP with yet ample opportunities in solid minerals, infrastructure and also in the service sector. He reiterated that the Federal Government of Nigeria has provided many investment opportunities in many sectors of business, some of which are, Manufacturing, Coal, Tourism, Energy Sector, Telecommunications, Export incentives, and Export Adjustment Fund Scheme, among others.

Giving a careful breakdown of the Nigerian Government’s investment in the economy, he highlighted that the government has given industrial incentives to industries with locally sourced raw materials, industries with support on food production programmes through local manufacture of chemicals, equipment and light commercial vehicles, industries with multiplier effects such as flat sheet mills and machine tools industry including foundries and engineering industries for spares parts, investment in research in research institutes particularly in the area of adaptive research institutes and commercialisation of local inventions.

He explained that the Nigerian Government also welcomes investors in areas such as the Coal, Gemstone cutting and polishing, Gold processing, Mineral benefaction plants for gypsum talc, kaolin, marble, dolomite, barite, Lead and zinc, Processing of salt from sea water, Small and medium-scale plant for sheet metal production, and Bottled mineral water.

He further pointed out that all areas of investment in the energy sector are considered to be pioneer product or industry, and as a result, there is a tax holiday of 5 to 7 years for investments in the sector. There has been a deregulation of this sector resulting in the emergence of Independent Power Producers (IPP) that will soon start operation in Nigeria.

“In the telecommunications sector, Government provides non-fiscal incentives to private investors in addition to a tariff structure that ensure that investors recover their investment over a reasonable period of time, bearing in mind the need for differential tariffs between urban and rural areas. Rebate and tax relief are provided for the local manufacture of telecommunications equipment and provision of telecommunication services.

“Export proceeds can also be retained in foreign currency in a domiciliary account with any authorized bank in Nigeria. A special export development fund has been set up by the government to provide financial assistance to private sector exporting companies to cover a part of their initial expenses in some export promotion activities, including training courses, symposia, seminars and workshops, export market research, advertising and publicity campaigns in foreign markets, trade missions, and other items.

There is also an export adjustment fund scheme which serves as supplementary export subsidy to compensate exporters for the high cost of local production arising mainly from infrastructural deficiencies, and other negative factors beyond the control of the exporter.

“Calabar in Cross River State of Nigeria has been designated as the primary Export Processing Zone (EPZ) territory in Nigeria. Incentives within the territory include tax holiday relief, unrestricted remittance of profits and dividends earned by foreign investors; no import or export licenses are required, up to 100% foreign ownership of enterprises sale of up to 25% of production is permitted in domestic market, amongst others.

All exports under the Nigerian value added tax (VAT) system are zero-rated and dividends received from investment in export-oriented businesses are to be free of tax”
He assured the international delegates in Davos Switzerland that “Lead Advisory Partners is able to welcome and work with foreign investors in the Nigerian economy.

As you know, if you want to operate in any foreign economy, you need local knowledge. You must understand the norms, you must also have the understanding of the laws that are applicable in the economy. We are able to work with investors by communicating their intentions so that they can be differentiated in the market place and more especially we are able to work with investors in executing their plans”.

Lead Advisory Lead Advisory Partners is a specialised consultancy providing in-depth strategy, top level advise and sound execution guidelines to discerning corporate clients in Nigeria. It is the first ever strategic partner from Nigeria, to the Davos Switzerland WCF Forum.

Ericsson, China Mobile Extend 5G Co-operation

By

Business Journal

-

16/03/2016

0

Ericsson joins China Mobile’s 5G Joint Innovation Center programme to accelerate development of next generation wireless networks, which will be faster, more powerful and offer even greater opportunities.
agreement to broaden 5G co-operation was first announced at Mobile World Congress 2016 in Barcelona.

China Mobile’s 5G Innovation Center initiative aims to accelerate the development of 5G by establishing a cross-industry ecosystem and setting up an open lab to provide a platform for new products and applications, and to foster new business and market opportunities.

In January 2016, Ericsson and the China Mobile Research Institute signed a Memorandum of Understanding (MoU) to collaborate on the development of its Open NFV Lab and the NovoNet. In December 2015 the parties also signed another MoU, covering an extensive range of 5G research and development co-operation.

As part of this agreement, Ericsson jointly demonstrated connected sheep/livestock tracking utilising NB-IoT technology at China Mobile’s booth during MWC 2016.

During MWC 2016, Shang Bing, chairman of China Mobile, paid a visit to Ericsson headquarters in Stockholm, Sweden, where he met Hans Vestberg, President and CEO of Ericsson.

While visiting Ericsson, Shan Bing said:
“China Mobile pays a lot of attention to the developing trends of this industry. We saw at MWC 2016 that the ICT industry will embrace transformation in the following 5 years. It is crucial for China Mobile and Ericsson, as the two ships of this industry, to stride forward in the right direction in the coming 5 years.

Ericsson has been an important partner to China Mobile for a long time. China Mobile values the partnership with Ericsson and hope to have more co-operation with this important partner during the coming 5 year transformative period.”

Airlines Financial Monitor: February

By

Business Journal

-

16/03/2016

0

Key Points:
· Worldwide airline share prices increased by 4.7% in January, recovering some of the decline seen in January;
· The latest airline financial results from Q4 2015 continue to point to a strong end to 2015, led by carriers in North America. By contrast, challenging economic conditions have taken a toll on Latin American carriers’ performance;
· Crude oil prices have rallied in recent weeks, driven by market expectations of a tightening in supply. However, the bigger picture is that oil prices are still some 30% lower than they were this time last year;
· After adjusting for distortions related to the rise in the US dollar over the past 18 months or so, global air fares fell by around 4-4.5% in 2015;
· Further falls in air fares are likely to be seen in 2016 as fuel hedging contracts unwind and the decline in oil prices seen towards the end of last year feed through;
· The global air passenger market made a strong start to 2016, with most regions posting record-high passenger load factors for the month of January. This bodes well for industry-wide financial performance in early 2016;
· The cargo side of the business made a reasonably solid start to 2016 by its standards, although challenges remain. The freight load factor remains rooted near a six-year low, keeping intense pressure on cargo yields.

Headline Inflation Hits 11.4%, 38-month High

By

Business Journal

-

16/03/2016

0

The National Bureau of Statistics (NBS) released the Consumer Price Index (CPI) figures for February 2016 yesterday with the major Headline Index and Sub-indices at record high double-digit levels.

A research report by Afrinvest Research says the February Headline Inflation – measured Year-on-Year (Y-o-Y) was estimated at 11.4%, 1.8% higher than 9.6% reported in January. Headline inflation has been on a steady rise since December 2014 (8.0%) with the only decline in October 2015.

The Report states:
The current inflation level is the highest recorded since December 2012 (12.0%). According to the NBS report, the acceleration in February CPI growth was on the back of faster growths across 11 COICOP divisions, with Restaurants and Hotels the only division that recorded a slower Y-o-Y growth.

Accordingly, the Food sub-Index (Farm Produce and Processed Foods) rose 11.3% Y-o-Y and the Core sub-Index (All items less farm produce) by 11.0% Y-o-Y from 10.6% and 8.8% in January respectively.

Food Inflation at 3-Year High of 11.0% Y-o-Y, Increased by 1.4% M-o-M
Following two months of a stable M-o-M increases in the Food sub index (December and January), the pace of increases in food prices rose in February to 1.4% M-o-M, 0.5% higher than 0.9% in January.

This pushed Y-o-Y growth in the Food Index to a 3-year high of 11.3%, which was 0.7% higher than rate in January. Prices of all major food groups in this category increased at a faster pace save for Potatoes, Yams and Other foods in the Tuber classification.

In the same vein, imported Food items as well as other major inputs for production of key local staples such as bread were the major drivers.

The major price increases were recorded in Fish, Vegetables, Bread and Cereal group for the second consecutive month.

We expect the food prices to remain pressured due to 1) security crisis in the North Central region which is a major food belt in the country 2) effect of the start of the planting season 3) pressured imported foods is expected to persist due to overhanging forex challenges.

Core Inflation Up 2.2% Settling at 11.0%
The core index recorded the highest growth, measured both M-o-M and Y-o-Y. The Index grew 2.7% M-o-M (from 0.8% in January) while Y-o-Y growth settled at 11.0% in February from 8.8%.

The jump in core inflation was mainly due to impacts of Imported Food prices, higher prices of Energy & Utilities – Housing, Water, Electricity. Gas and Other Fuel division – which rose 6.7% M-o-M and 13.9% Y-o-Y (the highest across all the COICOP segments on M-o-M and Y-o-Y bases).

This was against the backdrop of higher electricity tariff and exchange rate constraints pressuring prices of imported raw materials and finished goods. The Inflation expectation of Core Index is equally elevated given the increase in electricity tariffs implemented in February and subsisting supply constraints in the FX markets.

Implications and Expectations
The record high Headline and sub-indices numbers were above our forecast but much in line with our expectation that inflation would remain broadly driven by structural supply-side/cost-push factors.

This is likely to cause political backlash on the fiscal side and put question on the current monetary policy thrust of the CBN which appears to have given up the objective of price stability for an “induced” FX stability, trade protectionism and stimulating domestic manufacturing growth.

The fact that this policy thrust, with its mounting opportunity cost of higher domestic prices and tepid FX inflow, is yet to have a knock-on on aggregate growth and development indicators – GDP growth, Credit to the Private Sector, (un)employment rate and Manufacturing PMI – will be an important consideration for the MPC in its 2nd sitting of the year coming up next week, 21st and 22nd of March, 2016.

The implication of the higher inflation rate on the financial markets is also instructive; Nigeria’s 10-year bond yield spread over inflation rate has further narrowed to 0.5% (same as the US 10-year Treasury note) from 3.2%.

The Bond market closed bearish today in reaction to the data but we do not expect the effect to last if the CBN does not tighten monetary policy at its next meeting as the general investors sentiment remains` risk averse and portfolio managers continue to overweight sovereign bonds.

We do not expect the MPC to alter its monetary policy course at the next meeting for 1) a change in monetary policy would do little to rein in inflation/inflation expectation which is more structural than liquidity driven at the moment and 2) readings from the personal statement of Committee members’ at the January committee meeting suggests most members’ remain dovish (with some arguing for a lower SDF rate) and heavily in favour of the current administrative measures adopted by the CBN in the FX market.

Civil Society Groups Support Anti-Corruption Crusade

By

Business Journal

-

16/03/2016

0

A group of Nigerian civil society organisations (CSOs) have called on the Federal Government to ensure transparency in the recovery and management of corruptly acquired assets to stem the vicious cycle of re-looting of previously recovered assets.

In a statement in Abuja at the end of their fifth session, the organisations, meeting under the auspices of the CSO Advisory Committee for the EU funded Project “Support to Anti-Corruption in Nigeria”, which is being partly implemented by the United Nations Development Programme (UNDP), noted that lessons from the looting of previously recovered assets underscored the need for such transparency.

They observed that the lack of transparency so far in the recovery and management of assets had also undermined public and international confidence in the Nigerian Government, resulting in the unhealthy practice of other countries imposing conditions for the repatriation to Nigeria of corruptly acquired assets held in those countries.

Calling for the inclusion of CSOs in any transparency framework, with clearly defined roles, the organisations suggested that any arrangement should enable citizens and members of the public to know how much has been recovered at any point in time, where the assets are domiciled, what authority or agency has control of such assets as well as under what circumstances and for what purposes the assets would be utilised.

The organisations reaffirmed support for the Federal Government’s anti-corruption efforts and commended the political will as well as the tenacity of the Government in fighting the menace of corruption. They expressed their readiness to support the Government’s efforts through advocacy, citizens’ mobilisation and partnership with anti-corruption agencies.

The participating CSOs welcomed the updates provided at the meeting by the Project Team on past and ongoing project activities, including information on the status of the planned grants to support activities by CSOs.

They also exchanged information on on-going anti-corruption initiatives and activities within their respective organisations, and explored opportunities for synergy, collaboration and enhanced partnership among them.

PwC Report: African Retail Prospects Remain Positive

By

Business Journal

-

16/03/2016

0

Africa’s economy has seen modest growth in the wake of falling commodity prices, slowing revenues and volatile currencies. The moderation in growth impacts a range of industries and sectors, including retail and consumer products that must contend with rising costs, and a fall in prices.

Despite the decline in growth, the long-term outlook remains positive. The economic growth predicted for 2016 and beyond in some African countries and the growth expected in Africa’s consumer market provides major opportunities for retail and consumer companies looking to the future.

These are some of the highlights from a report released by PwC yesterday.

“As Africa has risen to prominence as an investment destination over the past several years, so the role of retail and consumer goods has taken on greater significance,” says Anton Hugo, Retail and Consumer Industry Leader, PwC Africa. “Sub-Saharan Africa (SSA) remains one of the fastest growing regions in the world and the successful expansion of a number of global and African retailers and consumer goods companies across the region speaks to the opportunities that exist.”

“However, Africa’s fortunes are very much tied to those of the global economy. Pressure on emerging market currencies coupled with a decline in oil and other commodity prices has seen pressure on government revenues and the ability of governments to increase social expenditure and wages in the public sector. African retailers will need to focus their efforts on operational efficiency and managing the effect on their operations of volatile currencies,” adds Edafe Erhie, PwC Partner in Nigeria.

PwC’s inaugural publication entitled ‘So much in store’, is an in-depth study into the make-up of SSA’s retail and consumer goods industries, and provides an outlook for the coming five years by focusing on 10 African economies that we believe offer some of the most compelling opportunities for retail and consumer businesses looking to expand into Africa: Cameroon, Ethiopia, Ghana, Côte d’ Ivore, Kenya, Nigeria, South Africa, Tanzania and Zambia.

Trends Shaping the Retail and Consumer Sector in SSA
Significant global megatrends will help drive the retail and consumer goods industries and create future opportunities. Africa’s demographic dividend, its growing middle class and rising income levels, and rapid urbanisation will all have a part to play in the continued growth of the retail sector across the continent.

Currently, Africa is home to more than one billion people which is expected to increase to more than two billion by 2050Africa’s working age population is forecast to grow at a faster rate than its overall population.

When the labour force grows more rapidly than the population dependent on it, resources become available for investment in economic development and personal consumption. This offers an opportunity for rapid economic growth.

More Informed and Healthier Consumers
Changes in consumer lifestyles and ambitions are influencing purchasing behaviour and patterns, according to leading retailers. Overall, consumers in SSA are becoming more aspirational and brand-conscious. “Africans are becoming more connected to global trends than ever before as a result of growth in internet penetration and travel,” explains Hugo.

Those that can afford it are also becoming more health-conscious, favouring nutritious and healthy foods.

Home-grown Champions Make their Mark
Closer to home, African organisations are becoming dominant players in local markets and expanding their presence across the rest of the continent.

Informal Trade Continues to Lead
For the foreseeable future informal retail will continue to dominate sales in SSA. With the exception of South Africa and Angola, it is estimated that upwards of 90% of sales in the focus countries is through informal channels such as markets, kiosks, table-top sellers and street hawkers.

“However, the industry is in the process of modernising with a number of western-style shopping centres taking shape in countries like Nigeria, Kenya and Ghana.

It is also interesting to note that in some countries such as Ghana, Nigeria and Zambia, many of the malls are anchored by South African retailers. For some countries, the building of shopping malls is a challenging and expensive business due to the difficulties in securing land, resources, and the costs associated with building,” says Michael Mugasa, PwC Partner in Kenya.

Local Production on the Rise
Increasingly there is a growing movement towards local production. This trend is driven by a number of factors. These include, amongst others, political stability and government incentives to boost local manufacturing. Despite the opportunities, manufacturing in Africa comes with numerous challenges.

Supply Chain Optimisation
A critical success factor for retailers and consumer goods companies moving into many African countries has been their ability to implement supply chains that deal with the operational challenges that exist. “Given the size of Africa, supply chains tend to be complex and expensive,” says Hugo. “Other obstacles include poor transport, inadequate local supply capacity and the dominance of informal retail trade.”

Distribution
The dominance of informal trade and Africa’s large rural population makes distribution a complex exercise. However, as 90% of sales are made through informal channels, those that ignore this segment are missing out on a significant share of potential revenue. There are also many examples of companies that have introduced innovative ways of improving their distribution in various countries.

Hugo concludes: “Each country in Africa has its own value proposition. Smart investing in Africa means investors need to understand key regions and local markets. Despite these risks, investors and retailers will continue to see the African market as a huge opportunity.”

Enugu State Investment Summit Set for April 12

By

Business Journal

-

16/03/2016

0

The inaugural Enugu State Investment Summit with the theme “Beyond Oil: Fostering Inclusive Economic Growth and Sustainable Development” is scheduled to hold from April 12 – 14, 2016 at the Michael Okpara Square, Independence Layout, Enugu.

Tagged ‘Oganiru’ meaning ‘progress’, the three-day summit will bring together local and international business leaders and investors, bankers, financiers, the diplomatic community and the academia to explore Enugu’s rich potentials – and indeed the potentials of the entire South-East – in a wide range of industries including agriculture, solid minerals, trade and tourism; and how the private sector can partner with government to leverage the state’s competitive advantage, for inclusive economic growth and sustainability.

A statement from the State Government says the summit represents a unique opportunity for local, regional and international investors to tap into the abundant business potential in Enugu State and the entire South-East region.

10 African Nations in Top 100 Countries with Biggest Gold Reserves

By

Business Journal

-

16/03/2016

0

According to a report published by World Gold Council on March 11, ten African countries are listed in the Top 100 of countries with largest gold reserves.

Algeria (25th worldwide) is first in Africa with a reserve of 173.6 tons. South Africa (29th worldwide) with 125.2 tons, Libya (31st worldwide with 116.6 tons), Egypt (41st with 75.6 tons), Morocco (59th with 22 tons), Nigeria (61st with 21.4 tons), Mauritius (70th with 8.9 tons, Ghana (71st 8.7 tons), Tunisia (77th with 6.8 tons) and Mozambique (86th with 3.4 tons) follow.

The report which is based on data collected in December 2015 and updated March-beginning, states that U.S. with 8,133.5 tons is first in the world. Germany (3,381 tons), IMF (2,814 tons), Italy (2,451.8 tons) and France (2,435.6 tons) are the four remaining closing the top five.

What About Cuba as an Insurance Market?

By

Business Journal

-

16/03/2016

0

There may be opportunities for some businesses including insurers in Cuba as the U.S. restores diplomatic ties but there are also significant cultural and regulatory challenges, according to a report from the industry’s Insurance Information Institute (I.I.I.).

The most immediate obstacle is the current U.S. embargo on doing business in Cuba, which has been in effect for more than five decades and only Congress can lift. Beyond that, there will be significant challenges in overcoming the impediments set by many years of communist rule, according to the paper, “Reopening for Business: What Renewed Ties between the U.S. and Cuba Mean for Property/Casualty Insurers,” co-written by I.I.I. President and economist Robert Hartwig and Lynne McChristian, I.I.I.’s Florida representative, who is also on the teaching faculty at Florida State University in Tallahassee.

The Obama Administration cannot list the embargo on its own but it has restored diplomatic relations with Cuba that were cut off in January 1961.

The administration has also taken steps to ease some economic sanctions by allowing U.S. exports of telecommunications, agricultural and construction equipment, permitting expanded travel to Cuba and authorising some banking relations.
To further his goal of improved relations with Cuba, President Barack Obama is going to Havana on March 21.

It will be the first visit by a U.S president since Calvin Coolidge spoke there in 1928.

According to Hartwig, if the obstacles can be overcome, there is reason to believe the Cuban people would welcome the benefits private insurers can provide.

“The reopening of U.S. diplomatic relations with Cuba may in the future present intriguing commercial opportunities for U.S. businesses, including property/casualty insurers,” said Hartwig.

“Cuba’s current economic and political situation may not create an ideal business environment for insurers today. But given Cuba’s risk profile, which we detail in the paper, the country needs the type of financial protection from natural disasters and other risks that insurers can provide.”

Cuba is vulnerable to a potent mix of catastrophes, including hurricanes, storm surge and earthquakes and the state generally takes responsibility for any resulting property losses. But the Cuban government is limited in its financial ability to mitigate against natural disasters or rebuild impacted communities after a significant event, Hartwig noted.

The insurance market that exists in Cuba in 2016 is limited. Two insurance companies are currently operating in the country, organized under the banner of the Caudal Group, which is owned and operated by the State.

The two companies are Empresa de Seguros Nacionales (ESEN), which writes auto, liability and travel insurance, but draws 70 percent of its premiums from agricultural concerns; and Seguros Internacionales de Cuba, S.A. (ESICUBA), the provider of coverage to Cuban businesses like transportation and construction firms.

ESICUBA also insures foreign-owned interests situated in Cuba, such as hotels and resorts.

“The challenge for U.S. insurers will be to dissuade Cubans from the idea that the Cuban government owns and insures almost everything,” said McChristian.

Cuba’s 11 million citizens have had little need to buy auto or property insurance because the Cuban government controls vehicle ownership, she said. “Cuban workers are restricted to one vehicle,” she said. “The Cuban real estate market has its own restrictions as well, and that has hampered the formation of a vibrant homeowners or renters insurance market.”

Despite the formidable regulatory and cultural obstacles they’d face before doing business there, U.S. property/casualty insurers may be attracted to the Cuban market.

“Many U.S. insurers are interested in growing overseas, particularly in nations that are nearby and offer significant economic potential,” Hartwig said.

“As Cuba’s economy potentially opens itself to private investments from around the world, insurers and reinsurers will carefully monitor developments and seek opportunities as economic, political and regulatory considerations allow.”

The Obama administration’s relaxed regulations also allow more Americans to travel to Cuba for family, education and religious reasons, which may open the door to the sale of life, health and travel insurance policies for those traveling to Cuba.

Starr Companies announced last month it is offering trip cancellation and trip interruption insurance as well as accident and sickness benefits for travel to Cuba. The plans also provide for the co-ordination of medical and assistance services for travelers during their travel and visit to Cuba.

“With the easing of travel restrictions to Cuba, we expect that an increasing number of U.S. citizens will visit the country. Starr is offering plans that meet both traveler demand and the U.S. legal requirements,” said Bridget Whalen, Vice-President at Starr.

AccorHotels Africa Joins Jovago.com Booking Platform

By

Business Journal

-

16/03/2016

0

Accor Hotels and pan African hotel booking platform Jovago.com announced in a statement published March 14, the signing of a partnership agreement to incorporate all Accor hotels in Africa into the platform.

According to the terms of the contract, 30 hotels located in 13 countries will be first incorporated into the platform. The remaining hotels of the group will later be incorporated.

“The partnership with Jovago highly contributes to establish our distribution strategy in Africa,” said Souleymane Khol, Vice-President, Sales Marketing Distribution & Revenue Management for Africa & Indian Ocean “AccorHotels is in a continuous process of dynamic innovation aiming to always mix more efficiently the digital experience with our hospitality know-how,” he added.

Subsidiary of Africa Internet Group (AIG), a group owned by German firm Rocket Internet, MTN, Milicom and Insurer Axa, Jovago is active in more than 40 African countries and counts more 25,000 referenced hotels.

AccorHotels has 94 establishments located in 17 African countries.

Etisalat’s CEO Resigns with Immediate Effect

By

Business Journal

-

15/03/2016

0

Etisalat Group’s CEO, Ahmad Julfar has resigned from the company with immediate effect.

No reason was given by the company, which simply said that he had left for “personal reasons.”

However he had been thought to be ill for some time, after pulling out of a speech at the Mobile World Congress last month at short notice.

Etisalat has named its Chief Operating Officer, Hatem Dowidar as acting CEO pending the hiring of a permanent Chief Executive, which is expected to occur by June.

Mobile Phones Fast Track Financial Inclusion in Sub-Saharan Africa

By

Business Journal

-

15/03/2016

0

Even as mobile money services become part of daily life for millions in Sub Saharan Africa, many potential customers face basic barriers to accessing the services on their own mobile phones. Lack of awareness and basic prerequisites, and low appreciation of the benefits are some of the hurdles.

More than half of consumers in Sub-Saharan Africa are using mobile money services through an agent, and some 20 percent use mobile money themselves on a mobile phone.

However, among the lower socioeconomic groups, four out of 10 people do not meet the basic requirements for independent access – such as a valid form of ID or ownership of a mobile phone. Others simply do not know about the services or consider mobile money unnecessary or too complicated, according to the new report, Financial Services for Everyone, from Ericsson ConsumerLab.

The report presents insights from a sample of 6,215 respondents aged 17-59, representing 150 million people across five countries: Angola, Democratic Republic of Congo, Ghana, Nigeria, and Uganda.

According to the findings, 63 percent of adults in the region have no bank account.

Patrik Hedlund, Senior Advisor, Ericsson ConsumerLab, says that for this large, unbanked proportion of society, cash is the predominant way of receiving and making payments, as well as saving and borrowing. Yet, since more people have mobile phones than bank accounts, mobile financial services offer a stepping stone to financial inclusion.

According to the report, consumers find cash easy to use, but the study shows that they also recognize the risk of theft and loss.

“Consumers have to make long journeys to reach the location where they can pay their bills,” Hedlund says.

“Saving money and taking loans also becomes problematic in unbanked Africa, with many hiding cash in their homes and relying on informal lenders who charge high interest rates. So, mobile money is really beneficial to them – if they can use it.”

The barriers to adoption of mobile money are basic.

“Lower income people and the unbanked are the ones who are least involved in the formal financial system, due to factors such as distance to banks, education, and the inability to authenticate their identity,” Hedlund says.

Many turn to agents to access mobile money services. The report states that 52 percent of the total population uses mobile money through agents, who help with registration and transactions such as cash-in and cash-out.

Agents also play a role in driving demand for self-sufficiency. Of the 20 percent who use mobile money themselves on their own phones, one in four were encouraged by an agent to start using the services independently.

The survey data was collected in July and October 2015 and compiled during face-to-face interviews, each lasting 40 minutes.

Interviews were also conducted with experts from the World Bank’s Consultative Group to Assist the Poor (CGAP) and the Bill & Melinda Gates Foundation.

IATA to Africa: Adopt Global Carbon Emissions Standard

By

Business Journal

-

15/03/2016

0

The International Air Transport Association (IATA) is urging African governments to support the adoption of a global offsetting scheme for carbon emissions at the 39th tri-annual Assembly of the UN’s International Civil Aviation Organisation (ICAO) in Montreal later this year.

IATA’s call comes seven months ahead of the ICAO summit where governments from 191 Member States will meet to agree on matters which set the worldwide policy on aviation for the upcoming triennium. Top of the agenda will be the proposed adoption of a global offsetting scheme for international aviation. Achieving agreement on this will be essential if the aviation sector is to meet its goal of carbon neutral growth from 2020 (CNG2020) which was adopted at the 37th ICAO Assembly in 2010.

The alternative is an increasing patchwork of taxes, charges and regulations, implemented nationally and regionally, that will restrict the value air transport can bring to the world.

Michael Gill, Director Aviation Environment said: “The industry has taken impressive steps to reduce CO2 emissions, with representatives from airlines, airports, air traffic management and manufacturing all playing their part. New technologies have been developed, alternative fuels have proved themselves to be a viable option and more efficient operating procedures are being established. Collaboratively the industry has exceeded its annual goal of a 1.5% increase in fuel efficiency. Additionally, significant steps have been made towards achieving the industry’s two further environmental goals, stabilising net emissions by 2020 and cutting emissions by 2050 to half of what they were in 2005.”

“Positive progress has been made but now the time has come for aviation to call on leadership from governments if we are to find a common solution to meet the goal of CNG2020. Only through the agreement of a global offsetting scheme will it be possible to establish a framework for aviation that is fair, transparent, practical and cost effective. That is why we are urging nations to agree on a global offsetting scheme at this year’s ICAO Assembly. We really wish to ensure that the momentum created by the recent ICAO agreement for a CO2 efficiency standard for commercial aircraft is not lost. A positive outcome at ICAO will support the sustainable future of aviation.”

IATA is holding a series of regional workshops across the globe to help raise awareness for the need for a market-based-measure in the lead up to the ICAO Assembly in September.

A number of these meetings in Africa started off with the first in Lagos on March 10 and Nairobi on March 11. In parallel ICAO is hosting a series of Global Aviation Dialogues (GLADs) on market-based-measures to address climate change in five regions including one in Dakar, Senegal on March 23-24.

Aviation has taken a proactive approach to reducing its climate impact and is committed to working to fulfil its ambitious climate change objectives. Air transport currently supports over 58 million jobs and $2.4 trillion in global GDP.

The industry is forecast to support 103 million jobs and $5.8 trillion in GDP by 2032. Having a global framework in place to achieve the industry’s environmental goals is essential to the sustainable growth of the industry.

Jumeirah Zabeel Resort Delights Customers with Special Offers

By

Business Journal

-

15/03/2016

0

As part of its 5th anniversary celebration since its operation, Jumeirah Zabeel Saray has announced plans to wow its customers with special offers.

Located at Dubai, the resort is set to offer customers a long-room offer, spa, lifestyle and restaurant offerings.

This was made known by the Senior Sales Manager, Jumeirah Zabeel Saray, Mr. Cesar Habib, at a function recently held in Lagos.

The offer also includes special discounts on treatments and retail products at the Talise Ottoman Spa on every fifth (5th) of each month throughout 2016, with the celebrations extending further to the resorts leisure and children’s facilities, with special offers and activities happening every 5th of the month at its Sinbads Kids Club and watersport’s area, these will change on a monthly basis.

At the resorts portfolio of restaurants, there will also be a dedicated 5th anniversary dessert and special themed beverages available to purchase throughout the year for just AED 55.

“Jumeirah Zabeel Saray marked its fifth year in operation on 4th January 2016. The resort commenced operation in 2011, and to mark the 5th anniversary, special offers will be put in place to celebrate the occasion including a year-long room offer, as well as spa, lifestyle and restaurant offerings. To mark the birthday in January, the resort arranged a Big Brunch with VIPs, loyal guests, media and partners of Jumeirah Zabeel Saray for 5 hours with music and prize give aways.

The venues used were priced at 455 AED, 555 AED and 655 AED for different packages. Every 5th of each month throughout 2016, the Talise Ottoman Spa will be offering special discounts on treatments and retail products with the celebrations extending further to the resorts leisure and children’s facilities, with special offers and activities happening every 5th of the month at its Sinbads Kids Club and watersport’s area (these will change on a monthly basis).

At the resorts portfolio of restaurants, there will also be a dedicated 5th anniversary dessert and special themed beverages available to purchase throughout the year for just AED 55.”

Jumeirah Zabeel Saray is the most luxurious resort on Palm Jumeirah, inspired by the imperial palaces of the Ottoman era offering an extensive list of 5-star exclusive amenities and facilities including the Talise Ottoman Spa; one of the largest and most luxurious spas in the Middle East spanning 8,000m² with 42 treatment rooms and 3 traditional hammam’s and home to 38 private luxurious Royal Residences. It is a family friendly destination which resort offers several activities which enhances the family holiday experience without compromise to its luxuriousness.

Jumeirah Zabeel Saray is one of the divisions of Jumeirah Group. It is a six floor beachside hotel with 405 elegantly appointed guest rooms, including 26 luxurious suites, and 38 opulent Royal Residences.

It offers an abundance of leisure activities across the resort, unique selection of award winning restaurants and bars, each offering a distinct culinary concept and an exciting nightlife ranges.

Mahindra Comviva Strengthens Leadership Position in Digital Music Portfolio in Africa

By

Business Journal

-

15/03/2016

0

Mahindra Comviva, the global leader in providing mobility solutions, has announced a partnership with Mondial Multimedia, a leading partner of mobile media platforms in Africa.

This tie-up with Mondial Multimedia will further strengthen Mahindra Comviva’s digital music content portfolio in the continent.

With this partnership, Mondial Multimedia will provide the most popular content from local artists like Josey, Serge Beynaud, Force One, Arafat DJ, Zouglou Makers, Abou Nidal, Rico Amaj, TNT, DJ Leo, Molare. With over 300,000 tracks on board and over 200 Content Providers, Mahindra Comviva is one of the largest Content aggregator in Africa, Middle East and Asia. In Africa alone, the company has collaborated with over 150 content partners including local and international content providers/copyright bodies/ local artists and production houses in the region.

Speaking on the partnership, Atul Madan, Head of Digital Services, Mahindra Comviva said:
“We are constantly working towards revolutionising the music market in Africa by providing localized content, identifying independent artists and labels, and disseminating music across the region. Our partnership with Mondial Multimedia is a testament of our efforts in emerging as the leader in the digital music space.

Mondial Multimedia works closely with a number of local artists to source an extensive selection of digital music content that cater to the diverse tastes of consumer’s in the region.”

He added “This partnership coupled with our proven expertise in deploying and managing music services for operators across multiple growth markets, will further drive the success of managed music services and infotainment services in Africa.”

Olivia Sandrine A. BRAUD – Mensah, Excutive Director, Mondial Multimedia said:
“We are pleased to partner with Mahindra Comviva in bringing a platform to empower the youth. Mahindra Comviva’s unrivalled expertise in digital music, VAS Technologies and deep understanding of the African market helped us bring this initiative to life. We bring a diverse range of content from Africa that will allow mobile operators to drive the quantity of users on their networks and meet the growing needs of subscribers across markets.”

.st0{fill:#FFFFFF;} .st1{fill:#E52E2E;} BJ

.st0{fill:#FFFFFF;} .st1{fill:#E52E2E;} BJ

BJ .st0{fill:#FFFFFF;} .st1{fill:#E52E2E;}

Hot topics

Business

ICT

Capital Market

Insurance

.st0{fill:#FFFFFF;} .st1{fill:#E52E2E;} BJ

Hot topics

Business

ICT

Capital Market

Insurance

.st0{fill:#FFFFFF;} .st1{fill:#E52E2E;} BJ

Company

Headlines

Newsletter

BJ

BJ

BJ

BJ

BJ