Home Blog Page 353

Diamond Bank Reports 78% Decline in Profit

By
Business Journal
-
0
Diamond Boank

Diamond Bank Plc published its audited FY: 2015 and Q1:2016 results recently on the floor of the Nigerian Stock Exchange (NSE).

While gross earnings growth slowed to record low, N55.2bn credit impairment charges also led to a 77.8% decline in net income on account of huge exposure of loan portfolio to Oil & Gas (29.0%) and General Commerce (20.0%).

We present the highlights of the results and our revised estimates for 2016 below.

Impairment Charges Up 109.2%, PAT Crashes 77.8%.

Diamond reported a N217.1bn gross earnings in FY: 2015, a modest 4.2% Y-o-Y growth compared to N208.4bn in FY:2014.

Although we expected performance to come in weaker, Diamond’s topline was lower than Afrinvest Research’s estimate of N243.9bn by 11.0%. Gross earnings growth was broadly driven by non-interest income (27.3% of gross income) which improved 25.3% Y-o-Y to N59.2bn relative to N47.3bn in FY:2014.

Further inspection indicated that non-interest income was boosted by 466.3% jump in Net Gains from Other Financial Instruments to N11.5bn from N2.0bn in previous year. On the other hand, Interest and related income (72.7% of gross income) declined 2.0% as gross loans and advances tumbled 24.2% Y-o-Y to N823.7bn on the back of toucher operating environment. Gross earnings growth remained constrained in Q1:2016, up 1.8% Y-o-Y to N53.5bn as macroeconomic challenges toughen.

In line with earlier guidance, asset quality deterioration took a huge toll on profitability in FY:2015 as the Bank booked a total of N55.2bn in impairment charges (up 109.2% Y-o-Y from N26.4bn). As a result, PBT and PAT crashed 74.8%and 77.8% Y-o-Y to N7.1bn and N5.7bn (vs. N28.1bn and N25.5bn in FY:2014) respectively.

Profitability remains pressured by loan impairment provisions in 2016, with Q1:2016 PBT and PAT further declining 20.0% and 19.6% to N6.7bn and N5.8bn respectively. Gross earnings growth in FY:2016 will be likely subdued by weaker interest income due to asset quality concerns, while loan loss provision is expected to stay ahead of FY:2012-FY:2014 average of N22.2bn.

Consequently, and in addition to a lower base effect, the likelihood of resurgence in double digit growth in PAT by FY:2016 cannot be over-ruled.

Operating Margins Wane despite Restraints in OPEX
The Bank’s Cost to income ratio (CIR) improved to 61.0% from 64.6% in prior year. This was driven by a considerable reduction in personnel expense, general administrative, adverts and promotional expense component of OPEX, which moderated from N58.5bn in 2014 to N57.1bn in 2015 while operating income strengthened 3.9% Y-o-Y.

Improvement in CIR ratio was however not reflected in the profit margin as PAT margin contracted to 2.6% from 12.2% in FY:2014 due to loan impairment charges. Consequently, ROE and ROA settled at 2.7% and 0.3% in FY:2015 in contrast to 14.5% and 1.5% in FY:2014 respectively.

Risk Assets Shrink 24.2%Y-o-Y on Macroeconomic Dictates
As noted above, performance in FY:2015 was weakened by asset quality deterioration which translated into higher cost of risk (CoR) ratio which increased to 6.7% from 2.4% in prior year as impairment charges jumped by 109.2%.

Significant weakness in the assets quality is traceable to poor credit risk management strategy which left loan portfolio outrageously exposed to the Oil & Gas (29.0%) and General Commerce (20.0%) sectors which accounted for 13.0% and 42.0% of non-performing loans respectively as at 9-month results. Unsurprisingly, domestic and global market instability increased the size of bad loans significantly. In response to the above, Diamond ‘soft pedaled’ on loan expansion, as gross loans and advances fell 24.2% from N1.1tn in FY:2014 to N823.7bn in FY:2015.

As at Q1:2016, loan book stood at N879.0bn while total assets settled at N1.8tn, up 3.9% from N1.75tn in FY:2015 but lower than N1.9tn in FY:2014. Against the backdrop of the relentless challenges in the economy as witnessed up to April 2016, we expect Diamond’s risk assets growth to stay modest.

As a result, we project a loan growth of 1.5% for the Bank. In the interim, we maintain that the Bank must fortify its credit risk management framework by reviewing its criteria for loan origination to ensure portfolio diversification and stricter risk expansion requirements to avert future recurrence.

Nigerian Breweries Digital Head Joins Ventra Group

By
Business Journal
-
0
NBC

Full-service Digital Media firm Ventra Media Group has just announced the appointment of Tomiwa Aladekomo in the role of Client Service & Strategy Director.

Tomiwa Aladekomo was most recently Senior Digital Manager at Nigerian Breweries Plc where he led digital marketing strategy and execution for a portfolio of some of the largest beverage brands in the country.

The hire, which follows that of Kate Williams (formerly of Fuze.ng) as Head of Creative & Editorial, signals a strong rise in capacity for the agency, which counts the The Guardian, DSTV, Nairabet and Zenith Bank as some of its biggest clients.

As Senior Digital Manager at Nigerian Breweries, Mr. Aladekomo was responsible for the digital execution on campaigns like Star’s “Shine On Nigeria” football campaign, Legend’s #RealManNoFear and Heineken’s Trophy Tour among others.

He also steered the overhaul of the venerable company’s corporate website and digital presence. Mr. Aladekomo has over a decade of media and marketing experience across Nigeria and North America, notably having worked for firms like Atlantic Records and HeadlightVision, where he worked on global strategy briefs for clients like Coca Cola and Unilever.

Ventra Media CEO, Daryn Wober, said of the agency’s new Client Service & Strategy Director, “We’re excited to have Tomiwa join the Ventra Media team. He brings the experience of working on brand’s side for some of the best-known brands in the country. The work he did at Nigerian Breweries showcased a sophisticated understanding of the African digital marketplace and we look forward to putting that skill set to work in service of our clients.”

Ventra Media is a full-service digital marketing and rights agency whose range of services includes digital strategy, growing social media audiences and planning, as well as buying digital media for brands and content owners.

The outfit also specialises in website and apps development, social media management and content production.Ventra’s work on the Guardian was responsible for the site winning the .ng Media Award at the 2016 .ng Web Awards.

Africa: Closing Gap Between Strategy & Execution

By
Business Journal
-
0

Most major corporations struggle with developing a business strategy that works. Fifty percent of business leaders don’t believe they have a winning strategy to begin with and almost all report missing major opportunities in the market.

About two-thirds of business executives say that their company’s capabilities don’t support the way they create value in the market. And 80% of senior executives say that their overall strategy is not well understood – even within their own company.

These problems are not caused by external forces. They are the outcome of the way most companies are managed. These are some of the findings of ongoing global research on senior executives carried out by Strategy&, PwC’s strategy consulting capability.

Jorge Camarate, Strategy& Partner, says: “Worldwide and across the African continent we are seeing companies battle with how to develop strategies that keep them competitive in an increasingly complex global marketplace. All too often companies don’t think about strategy and execution together.

“We have a number of business leaders who understand this problem, but very few who know how to overcome this.”

There are few companies that are able to successfully close the gap between their strategy and their execution. Those companies that are successful – referred to as ‘coherent’ companies – are the ones that are able to bridge this strategy-to-execution gap by applying the unique capabilities that distinguish them from their peers.

Coherent companies usually have the ability to align their value proposition with their distinctive capabilities and their portfolio of products and services. These elements shape a company’s identity, culture and approach to managing resources.

In the process, we see the following acts of unconventional leadership as being of fundamental importance:

1. Commit to an identity: A true identity expresses what a company does best and why it matters. Choosing and developing an identity requires some reflection, where your company can go in the market- what products and services you can offer and to whom – is a function of who you are and what you do well. Companies should only compete in those markets where they believe their identity and distinctive capabilities will give them the edge over their competitors.

2. Translate the strategic into the everyday: In order to achieve its targeted identity, an organisation must create a blueprint of its capabilities. It must integrate diverse processes and technologies while preserving the strategic value of the enterprise.

3. Put culture to work: An organisation’s culture is multidimensional, complex and influential. Most business leaders understand the power of a company’s culture – but it’s not always clear how to harness that culture. A company’s culture should reinforce the distinctive capabilities and strengths that differentiate it from the competition. Africa poses some challenges when it comes to culture, as labour markets usually lack people with the necessary technical skills and relevant industry experience.

Consequently, companies have to develop their own talent. Since relying heavily on expatriates is not financially sustainable or positively viewed by African governments, finding local human capital is essential.

4. Cut costs to grow stronger: Coherent companies tend to invest heavily in activities that support their identity and distinctive capabilities. They will need to regard costs as an investment and focus on investing in those areas that are necessary for executing strategy. In middle-income African countries with strong institutions, aspirational customers demand premium products and services – but these need to be delivered at a lower cost point.

5. Shape the future: Coherent companies acknowledge that their value proposition is never fully achieved and their capabilities system should always be open for further progression.

Although the African continent offers much potential for investors, it also carries a number of risks and challenges. “It takes a coherent company to successfully and sustainably close the gap between strategy and execution in Africa. Conventional leadership practices of seeking growth at all costs have resulted in many unsuccessful attempts at penetrating this market.

“Coherent companies, on the other hand, improve the likelihood of successful expansion and strategy execution in one of the fastest-growing regions in the world,” concludes Camarate.

Red Star Express Appoints New EDs, MDs for Subsidiaries

By
Business Journal
-
0

In its bid to offer more comprehensive logistics solutions that will enhance clients’ optimal satisfaction and reposition the brand to consolidate its leading position in the industry, one of Nigeria’s foremost logistics companies, Red Star Express Group has appointed new Executive Directors for the group and Divisional Managing Directors for its subsidiaries.

The subsidiaries are Red Star Logistics, Red Star Support Services, Red Star Freight and the Express arm.

Sola Obabori becomes the Group Deputy Managing Director/Chief Executive Officer.

An astute management professional with long and outstanding Sales and Marketing career, he traversed different spheres in the industry, making landmark contributions in areas of Customer Service and business development, Outsourcing, Logistics, Warehousing and Freight. He was previously the General Manager/Chief Operating Officer of Red Star Logistics Limited.

He is an alumnus of several advanced management and leadership programmes from world class institutions including The School of Business Leadership of the University of South Africa, McGill Executive Institute, Canada, Lagos Business School, Nigeria; Harvard Business School, USA; Haas Business School of the University of California, Berkeley, USA; The University of Westminster, United Kingdom and FedEx Purple Academy, Belgium where he excelled as the Purple Star Award Winner in 2006. He is an Associate member of the National Institute of Marketing of Nigeria (Chartered) and a Fellow of the Institute of Business Development.

Victor Ukwat is the Executive Director, Sales and Marketing for the group. A resourceful professional with strong expertise in revenue expansion and cost reduction through building of a competitive corporate brand, he is passionate about excellent service delivery, building and motivating dynamic teams and creating revenue opportunities.

Victor holds a Bachelor’s degree in Science (B.Sc) from the University of Calabar, M.Sc. from the University of Ibadan and an MBA in Business Administration from the Lagos Business School. He is an alumnus of Senior Entrepreneurship, Management and Leadership Programmes from some Global best institutions, including FedEx Purple Academy Brussel, IESE Business School (Spain), Harvard Business School (USA), Columbia Business School New York , University of Wisconsin (USA) and most recently, Schulich Business School, Toronto Canada.

Auwalu Babura is the Executive Director, Finance and Administration for the group. He holds a first Degree in Accounting (BSc) from Bayero University Kano and an MBA in Business Administration (MBA) from the Lagos State University. He is also an Associate of the Institute of Chartered Accountants of Nigeria. He Joined Red Star Express in 1994, and has served in various capacities as Head of Internal Control and Processes, Head of Treasury and Accounts, Group Accountant, Group Treasurer, Credit Controller among others. He has attended various training programs cutting across Controls, Planning, and Risks& Leadership amongst others both locally and abroad.

Charles Ejekam becomes the Divisional Managing Director of the Express arm of the group. He started his career in Red Star Express as a Commercial Executive in year 2000. He has handled various responsibilities in territorial management, key accounts management, marketing, brand and public relations and regional sales management both in Lagos and Abuja.

He holds a Masters degree in Public and International Relations from the University of Lagos and a Bachelor of Science Degree in Political Science with a Second Class Honours (Upper Division) from the University of Nigeria, Nsukka. He has at various times attended trainings within and outside the country in the areas of leadership, sales and marketing and key account management.

Enoma Ojo is the Divisional Managing Director, Red Star Support Services, responsible for the management of the outsourcing arm of the group. Until recently, he was the Assistant General Manager, Corporate Services, overseeing the recruitment and staffing, learning and development and the management of the group’s fleet and facilities. He has 19 years working experience in the company and has risen through the ranks as a commercial executive, commercial coordinator, assistant commercial manager Port Harcourt, district manager Aba, acting assistant general manager East, and chief operating officer Red Star Support Services.

He is a graduate of Economics & Statistics. He also obtained a Masters of Business Administration (MBA) from the University of Benin. He has attended courses in Management and Leadership, Sales and Marketing, Customer Service, Finance, Manpower Development and Service Management.

Tonye Preghafi, until his appointment to head Red Star Freight Limited was the Head, Learning and Development for Red Star Express Group. He joined the organization in October 2004 and has served in various capacities in both Lagos and Port Harcourt. He started out in Corporate Sales and later on to Learning and Development. In between, he served as President Red Star Express Cooperative and Multipurpose Society. He holds a Bachelors Degree in History from the Lagos State University and a Masters in Business Administration (MBA) from Business School, Netherlands (BSN). He has attended several management and leadership trainings within and outside Nigeria.

Red Star Logistics is headed by Ocholi Etu. Ocholi joined the Red Star group from MDS Logistics where he worked in various capacities, including as a Depot Manager in Calabar in 2007 and later in Kaduna. In 2008, He was transferred to Aba to manage MDS Logistics’ largest distribution center in the eastern region, a position he held for 4 years till 2012. He was twice recognized as ‘The Manager Of The Year’ in 2010 and 2011. In 2012, he was appointed MDS Regional Manager Lagos & West, managing operations spanning 9 states in south south, south west and north central geo political zones of Nigeria.

He holds a Bachelors Degree in Economics from Bayero University Kano and an MBA from University Of Wales, Cardiff in the UK. He is a member of Council of Supply Chain Professionals USA, Chartered Member, Chartered Institute of Logistics and Transport, UK (CMLIT), an Expert in Supply Chain Management (ESCM) from Institute Of Supply Chain Management (IoSCM, UK), a Certified Practitioner in Procurement and Logistics (CPPL) from Institute of Professional Financial Managers, London (IPFM, UK).

About Red Star Group
Red Star Express Group is a premium logistics solution provider in Nigeria in area of revenue, network coverage and market share in the domestic and international market. It enjoys a domestic strength of over 240 offices in Nigeria, delivers to additional 1,800 communities, over 2,400 highly trained personnel with over 600 delivery vehicles in its fleet. It operates as the Nigerian licensee of FedEx, which is the world’s largest express transportation company.

7 Ministers Confirm Attendance at Africa Energy Forum 2016

By
Business Journal
-
0

We’re delighted to announce that 7 Ministers of Energy from across Africa and 14 Heads of Utilities are currently confirmed to speak at the 18th Annual Africa Energy Forum. Latest to confirm is H.E. Honourable Adama Toungara, Minister of Petroleum and Energy from Côte d’Ivoire.

This year’s AEF is set to bring 2,000 investors and decision-makers from Africa’s power sector to the Intercontinental O2 Hotel in London from 22-24 June, for a packed programme of industry sessions and seminars, networking functions and entertainment.

Over 170 speakers are confirmed to participate in the Forum, sharing their knowledge, presenting case studies and engaging in productive discussions. Below are some of the African Ministers & decision-makers you can expect to meet in under 8 weeks’ time:

• H.E. Honourable Adama Toungara, Minister of Petroleum and Energy, Côte d’Ivoire
• H.E. Honourable Motuma Mekassa, Minister of Water, Irrigation and Electricity, Ethiopia
• H.E. Honourable John Abdulai Jinapor, Acting Minister of Power, Republic of Ghana
• H.E. Honourable Mamadou Frankaly Keita, Minister of Energy and Water, Republic of Mali
• H.E Honourable Alfa Oumar Dissa, Minister of Energy, Mines and Quarries, Republic of Burkina Faso
• H.E. Honourable Patrick Sendolo, Minister of Lands, Mines and Energy, Republic of Liberia
• H.E. Honourable Onkokame Kitso Mokaila, Minister of Minerals, Energy and Water Resources, Botswana
• Nick Hurd, Parliamentary Under Secretary of State for International Development, Government of the
• United Kingdom
• Brigadier General Emeldah Chola, Permanent Secretary, Ministry of Energy and Water Development, Zambia

Global Smartphone Shipments Decline 3% in Q1 2016

By
Business Journal
-
0
mobile phone

According to the latest research from Strategy Analytics, global smartphone shipments fell 3 percent annually to reach 335 million units in Q1 2016. It is the first time ever in history the global smartphone market has shrunk on an annualized basis.

Samsung maintained first position with 24 percent global smartphone marketshare.

Linda Sui, Director at Strategy Analytics, said, “Global smartphone shipments fell 3 percent annually from 345.0 million units in Q1 2015 to 334.6 million in Q1 2016. It is the first time ever since the modern smartphone market began in 1996 that global shipments have shrunk on an annualized basis. Smartphone growth is slowing due to increasing penetration maturity in major markets like China and consumer caution about the future of the world economy.”

Neil Mawston, Executive Director at Strategy Analytics, added, “Samsung shipped 79.0 million smartphones worldwide in Q1 2016, dipping 4 percent annually from 82.7 million units in Q1 2015. Samsung maintained first position with 24 percent share for the quarter, broadly around the same level as a year ago. Samsung’s new Galaxy S7 flagship and its popular J series models are helping to hold steady its smartphone leadership. Apple fell 16 percent annually and shipped a disappointing 51.2 million smartphones worldwide in Q1 2016. Apple’s global smartphone marketshare has softened from 18 percent to 15 percent in the past year. Apple is facing iPhone fatigue and pressure is mounting for Apple to innovate a new wow design beyond its standard rectangle formfactor.”

Woody Oh, Director at Strategy Analytics, added, “Huawei maintained third position with 8 percent global smartphone marketshare in Q1 2016, up from 5 percent a year ago. Huawei grew 64 percent annually to ship an impressive 28.3 million smartphones worldwide in the quarter. Huawei is closing the gap on Apple, but Huawei itself is now being chased hard by ambitious rivals like OPPO and Vivo.”

Linda Sui, Director at Strategy Analytics, added, “OPPO shipped 15.5 million smartphones and soared to fourth position with 5 percent global smartphone marketshare in Q1 2016. OPPO has been well known in the smartphone industry for several years, but it is finally breaking into the wider public consciousness with its popular range of 4G models like the R9 across Asia and elsewhere.

Xiaomi maintained fifth place with 4 percent global smartphone marketshare in Q1 2016. Xiaomi remains under pressure from OPPO, Vivo and others across Asia, while it is still very weak in North America and Western Europe and the vendor will need to target these regions more aggressively if it wants to catch Huawei and others in the future.”

China Plans $12bn Aviation Investment in 2O16

By
Business Journal
-
0

The Civil Aviation Administration of China (CAAC) reported that this year China is planning to invest $11.9 billion into country’s aviation infrastructure.

According to Feng Zhenglin, Head of CAAC, the money will be spent mainly on airport constructions, including 11 new projects and renovation of 52 existing facilities.

“The general aviation sector, especially aircraft research and manufacturing, has become a hot spot of both industrial upgrading and social concern,” said Feng Zhenglin, Head of the CAAC.

CAAC also stated that China has been putting a lot of effort into improving transportation and increasing employment rates in the service sector.

$7m Prize to Fund African Renewable Energy Projects

By
Business Journal
-
0
Access power

Access Power, a developer, owner and operator of power projects in emerging markets, today kicked off the countdown for applications to the ACF 2016, the second edition of its successful Access Co-Development Facility (ACF) for renewable energy projects in Africa.

Renewable energy developers have less than one month left to submit their applications for a chance to win US$7million in ACF prize funding. The deadline for applications is the 20st May 2016.

ACF 2016 is a competition dedicated to finding local power project developers with credible renewable energy projects in Africa who need access to funding, technical experience, and expertise to bring their plans to life.

Following the competition’s successful launch last year, the ACF increased its funding from US$5m in 2015 to US$7m for this year’s winners. Up to three successful projects will be selected by a panel of expert judges whose decision will be based on commercial, technical and environmental merits, the local regulatory environment, and capability of the project team.

The winners of ACF 2016 will be announced on Tuesday 22nd June 2016 before a live audience during the Africa Energy Forum in London. The winners will enter a Joint Development Agreement with Access Power, which will take an equity stake in the winning projects and fund third-party development costs such as feasibility studies, grid studies, environmental and social impact assessments and due diligence fees. Access Power will also provide technical support, financial structuring and development process management.

Nasir Aku, ACF Program Manager at Access Power commented: “With just one month to go until the application deadline, we want to make sure that all local developers across the African continent are aware of this fantastic opportunity to secure valuable funding and expertise that can turn an idea for a renewable energy project into reality.”

ACF 2016 is leading the way in demonstrating and supporting the type of renewable energy projects that will help meet Africa’s massive and urgent need for electrification.

“Through this unique facility, we hope to encourage innovation and support companies in their efforts to deliver power to places that desperately need it. Last year we received a total of 55 submissions from 18 countries across Africa, including solar, wind, hydro, hybrid and bio-mass projects. The applications are coming in fast so 2016 looks set to build on that success.”

The inaugural ACF in 2015 was won by Quaint Solar Energy from Nigeria and Flatbush Solar from Cameroon. Other competing projects hailed from Cape Verde, Kenya, Madagascar, South Africa, Morocco, Ghana, Rwanda and Tanzania.

One project has already pre-qualified for ACF2016. A 25MW solar project being developed in Sierra Leone by Africa Growth and Energy Solutions (AGES) won the Solar Shark Tank competition at the Making Solar Bankable conference in Amsterdam on 18th February.

In a keenly fought contest, three emerging markets developers competed for a US$100,000 grant to support the development of their solar projects, funded by Access Power and Dutch development bank FMO. Part of the prize, subject to terms and conditions, was pre-qualification for ACF2016.

Global Passenger Traffic Rose 5.3% in March

By
Business Journal
-
0
Aeroplane

The International Air Transport Association (IATA) announced global passenger traffic results for March showing that demand (measured in revenue passenger kilometers, or RPKs) rose 5.3%, compared to the same month last year.

Capacity grew slightly faster at 5.9% which pushed the average load factor down by half a percentage point to 79.6%.

March performance shows a moderate slowdown on the year-on-year growth rates recorded in January (7.2%) and February (8.6%) even after adjusting for the leap-year impact in February. Demand for international traffic grew significantly more quickly (6.2%) than that for domestic travel (3.7%).

“While in line with long-term trends, demand growth in March represented a slow-down compared to January and February. It is premature to say whether this marks the end of the recent very strong results. We do expect further stimulus in the form of network expansion and declines in travel costs.

However, the wider economic backdrop remains subdued,” said Tony Tyler, IATA’s Director General and CEO.

March 2016 
(% year-on-year)
World share¹
RPK
ASK
PLF 
(%-pt)²         
PLF 
(level)³  
Total Market
100.0%
5.3%
5.9%
-0.5%      
79.6%
Africa
2.2%
9.7%
8.2%
1.0%
68.2%
Asia Pacific
31.5%
5.1%
6.7%
-1.2%
78.3%
Europe
26.7%
5.3%
4.6%
0.5%
80.2%
Latin America
5.4%
3.8%
2.8%
0.7%
78.3%
Middle East
9.4%
11.5%
13.4%
-1.3%
76.7%
North America
24.7%
3.0%
3.5%
 -0.4%
83.6%

International Passenger Markets

March international passenger demand rose 6.2% compared to March 2015, which was a decline compared to the 9.1% increase in February. Airlines in all regions recorded growth. Total capacity climbed 6.9%, causing load factor to slip 0.5% percentage points to 78.5%.

· African airlines continued to enjoy strong demand, with traffic up 11.2% compared to March 2015. The turnaround after several difficult years coincides with expansion of long-haul networks by the region’s carriers. Capacity rose 9.7%, and load factor strengthened to 66.6%, up 0.9 percentage points.

The Bottom line
“In just under a month Dublin will become the focus of the global air transport industry, when the 72nd IATA Annual General Meeting and World Air Transport Summit takes place there, 1-3 June. Europe is the world’s largest international market in terms of traffic flown by its carriers. And aviation supports 12 million European jobs and 4.1% of the continent’s GDP. But aviation could do much more if governments would address the triple whammy of high taxes, overly-complex and punitive regulations, and inadequate and inefficient infrastructure. Making Europe an easier place to do business will help aviation deliver even greater benefits to the economy,” said Tyler.

Zain Launches LTE Services in Sudan

By
Business Journal
-
0
Zain

Zain says that it has launched 4G LTE services in Sudan. The launch of the 4G network was announced at a press conference last week in Khartoum.

In the first stage 4G coverage will be extending to the capital Khartoum; Medani; Port Sudan and El Obeid with these central and populated areas being launched in cooperation with Ericsson.

4G services will be extended to other regional centers across the country gradually with the additional cooperation of Huawei.

Zain Sudan initially launched 4G services with nearly 300 sites that are on air now, with 21 other cities in the regions set to gain coverage by the end of 2016, with 15 of them by the end of June. The population coverage of the 4G network will reach over 20% in the first stage of roll out.

Managing Director and CEO, Elfatih Erwa affirmed that the introduction of 4G places Sudan at the forefront of countries providing mobile data services on the continent, and features Sudan in an advanced position technologically. Zain is keen to transport its customers on a journey towards the cutting edge digital world, with 4G also set to bolster the mobile experience of 2G and 3G services by adding additional network capacity.

“Zain remains committed to delivering the highest quality of service to its customers in all the markets in which it operates, and highly appreciates the opportunity to introduce 4G into Sudan. The authorities in Sudan showed wisdom and foresight in granting a 4G licence to Zain at a sensible fee amount, as it allowed Zain to invest more in technology and infrastructure, as well as to offer competitive pricing for 4G services. The Sudanese people are ultimately the beneficiaries of this wisdom.”

IMF: Credit to Private Sector Slows in sub-Saharan Africa

By
Business Journal
-
0
IMF

In its global economy outlook published on May 3, 2016, the International Monetary Fund noticed a slowdown in growth of bank loans to private sector in most sub Saharan African nations since the beginning of the year.

“The recent phenomenon is analyzed using the 2010-13 rapid credit growth as a reference, as at the time, commodities were up and financing conditions more favorable,” the institution said in its report.

To be more precise, IMF points out three cases. First, it talks about nations such as Senegal, Kenya, Togo, and Mozambique, who do not export natural resources, showing risks associated with credit’s rapid growth which exceeded what structural considerations seem to explain and which, at term, could weigh on these countries’ financial stability. In Kenya, the banking system has been experimenting shocks as margins reduced due to saturated market and persisting increase in bad debts.

In most natural resources’ exporting countries, credit’s rapid growth was linked to a recovery process. Most concerned nations moved from a low banking credit to better results. In two of these countries (Mali, Niger), this credit was greater than what structural characteristics should have justified.

Next are some countries where progress in terms of financial deepening is insufficient and where credit’s growth is lower than average and fitting what structural characteristics would recommend.

Things are not likely to improve in the short-term seeing how IMF forecast a growth of 3% for 2016, against 3.4% at the end of 2015. As for oil exporters, they should record a 2.2% growth. Countries with low revenues, poor states excluded, will record 5.8% of GDP. Poor nations will record a 4.8% growth.

IMF believes this trend could be reversed, but before this occurs, sub Saharan African governments should change direction, mobilizing local resources and being more efficient in terms of allocation of collected resources.

However, challenges and needs are many. Sub Saharan Africa which focuses most of its population (1.2 billion) still has a weak productive fabric, mainly dominated by foreign capitals, and a low level of regional integration reducing opportunities for scale profits.

In this context, growth points are driven by a consumption that depends mostly on imports. This translates into a low growth in per capita GDP (+0.6%), gross domestic savings falling to 13.4%, a negative average balance budget of -4.6%, and strengthening of negative goods trade deficit of -3.4%.

Presented this way, GDP does not indicate quality of products, environment or type of goods that characterize economies in the region.

-Idriss Linge

Bribery Soars in Middle East & North Africa

By
Business Journal
-
0
bribery

Nearly one in three citizens who tried to access basic public services in the Middle East and North Africa paid a bribe, a Transparency International report said today, showing that governments across the region have failed to hear their citizens’ voices against corruption.

According to a public opinion survey by the international anti-corruption group of nearly 11,000 adults in 9 countries and territories, the majority of people (61 per cent) across the region think that the level of corruption has gone up over the last 12 months. The 30 percent who paid a bribe for a basic service represent the equivalent of nearly 50 million.

“It’s as if the Arab Spring never happened. Leaders who fail to stop secrecy, fail to promote free speech and fail to stop bribery also fail to bring dignity to the daily lives of people living in the Middle East and North Africa. Peoples’ human rights are seriously affected,” said José Ugaz, Chair of Transparency International.

Public dissatisfaction with corrupt leaders and regimes was a key catalyst for change in region, notably with Arab Spring protests. Five years on, the survey finds governments have done little to enforce laws against corruption and bribery, nor have they done enough for transparency and accountability through the promotion of freedoms of the press, civil society and for individuals.

In Lebanon, numbers are alarming as nine in ten people (92 per cent) say that they think corruption has increased.

Government officials, tax officials and members of parliament are perceived to be the most corrupt groups in the region.

Based on the findings of the survey, here are our four top recommendations:

· Governments in the region must speak out immediately and publicly about their commitment to end corruption. They must also finally deliver on their anti-corruption commitments made globally and regionally, such as under the United Nations Convention against Corruption (UNCAC) and the Arabic Convention for Combating Corruption.

· Governments must eradicate impunity and bring the corrupt to justice so they can take responsibility for the consequences of their acts.

· Governments must create a safe and enabling environment for civil society and the media to fight and report corruption.

· Governments must involve their citizens in the fight against corruption and create the space to hold institutions to account and to help law enforcement institutions. This is especially important when the majority of citizens (58 per cent) believe they have the power to make a difference.

WSIS Unveils 18 2016 Prize Winners

By
Business Journal
-
0
ITU

ITU Secretary-General, Houlin Zhao yesterday announced the 18 winners of the WSIS Prizes 2016 at the WSIS High-Level Opening Segment, which was held at the Geneva International Conference Centre (CICG).

The WSIS Prizes 2016 contest provides a platform to identify and showcase success stories across the 11 WSIS Action Lines defined in the Geneva Plan of Action.

The awards are conferred through an open online voting process, which this year engaged over 245,000 stakeholders from around the world. A total of 311 projects were nominated for the 2016 contest, a significant increase on the number of nominated submissions in 2015, reflecting both the prestigious nature of the award and the growing importance of ICTs in national development strategies.

In line with the inclusive, multi-stakeholder character of the WSIS Process, the prizes recognize the outstanding achievements of a wide range of organisations in strengthening implementation of the vision and targets set by the World Summit on the Information Society in 2003 (Phase 1) and 2005 (Phase 2).

“ITU and its WSIS partners strongly believe in the critical importance of ICTs in achieving the 17 UN Sustainable Development Goals,” said ITU Secretary-General Houlin Zhao.

“The WSIS Prizes recognise all players in the effort to improve global connectivity, from governments and global ICT companies to grassroots NGOs leading innovative ICT-oriented projects at the local level. All of these stakeholders are equally vital to the success of the WSIS Process.”

WSIS Project Prize winners include government departments, international organizations, private sector companies, NGOs and academia. An innovation in the WSIS Prizes contest this year is the nomination of 70 ‘WSIS Prize Champions’.

This new award category recognises outstanding projects that were among the most-voted entries and which also received the best reviews by the members of the Expert Group.

Of these 70, 18 winners were selected to receive the coveted WSIS Prize, with the remaining projects to be celebrated at a special event to be held on Wednesday 4 May entitled: Implementing Best Practices and Addressing Challenges: Meet the Winners and Champions.

This year’s 18 winners are:

Action Line C1 The role of government and all stakeholders in the promotion of ICTs for development
Winner: Fostering integration of Argentine Academia in the activities of ITU, Ente Nacional de Comunicaciones (ENACOM), Argentina
Action Line C2 Information and communication infrastructure
Winner: Data Centres for Government Agencies, National Information Technologies JSC, Kazakhstan
Action Line C3 Access to information and knowledge
Winner: Connected Homes, Presidential Social Council, Costa Rica
Action Line C4 Capacity building
Winner: Smart Online SMEs (S.O.S.) by Thaitrade.com, Department of International Trade Promotion (DITP), Thailand
Action Line C5 Building confidence & security in the use of ICTs
Winner: Certification Programme for Better ICT Services, Office of Electronic Communications, Poland
Action Line C6 Enabling environment
Winner: Life Long Learning and Employment for People with Disabilities, Ministry of Communications and Information Technology, Egypt
Action Line C7 E-government
Winner: e-National Judicial System, Ministry of Justice of Turkey, Turkey
Action Line C7 E-business
Winner: ATTA’A System, Atta’a for Helping Charity Organizations, Saudi Arabia
Action Line C7 E-learning
Winner: MexicoX-Platform of Massive Open Online Course (MOOCS), National Digital Strategy, Mexico
Action Line C7 E-health
Winner: Informatization of the Public Health System, SOFTEL, Cuba
Action Line C7 E-employment
Winner: Technology for Education, Employment, Entrepreneurs, and Economic Development Project, Information and Communications Technology Office, Philippines
Action Line C7 E-environment
Winner: Asia Pacific Green Data Center Farm, Green Data Center LLP, Malaysia
Action Line C7 E-agriculture
Winner: Harmonized Information of Agriculture, Revenue and Irrigation for a Transformation Agenda – Precision Technology for Agriculture, Centre for Development of Advanced Computing, India
Action Line C7 E-science
Winner: R-package to compute confidence intervals for heritability, reliability, and heterogeneity, Ilia Vekua Institute of Applied Mathematics (VIAM) of Ivane Javakhishvili Tbilisi State University (TSU), Georgia
Action Line C8 Cultural diversity & identity, linguistic diversity
Winner: Connectivity is Productivity, Bridge Africa, United States of America
Action Line C9 Media
Winner: Youth Women in Community Media and Journalism – the beginning of a new era in rural broadcasting journalism, Bangladesh NGOs Network for Radio and Communication, Bangladesh
Action Line C10 Ethical dimensions of the Information Society
Winner: EmpoderaLive, Cibervoluntarios Foundation, Spain
Action Line C11 International & regional cooperation
Winner: ICT Development in Arab Region, ICT Development in Arab Region, United Arab Emirates

Background
WSIS Project Prizes is an international contest developed in response to requests from WSIS stakeholders to create an effective mechanism to evaluate and recognise individuals, governments, civil society, local, regional and international agencies, research institutions and private sector companies for outstanding success in implementing development-oriented strategies that leverage the power of ICTs.

The WSIS Project Prizes contest is an integral part of the WSIS stocktaking process.

The contest was held for the first time in 2012, and rapidly gained attention and popularity within the ICT for Development (ICT4D) community.

IATA Holds 72nd AGM in Dublin June 1

By
Business Journal
-
0
IATA

The 72nd IATA Annual General Meeting (AGM) and World Air Transport Summit will take place in Dublin, Ireland, from Wednesday, 1 June to Friday, 3 June 2016.

This year’s AGM takes place against a backdrop of generally rising industry financial health but also a growing regulatory burden. Security, safety, and environment issues, however, remain top of the industry agenda.

The long-term trend shows safety is steadily improving, but recent tragedies reinforce the importance of working together to fully understand and reduce the risk of future occurrence.

The industry also faces a vital year at ICAO with the decision in September on whether to implement a global market-based measure for aviation.

These issues will be addressed by the industry’s top leaders at the IATA AGM, which is open to accredited media.

Program highlights will include:

• The IATA Director General’s Report on the Industry
• Updated Economic Outlook
• CEO Insight Panel
• Panel Discussions on Cyber Security and the Environment
• Media Briefings on key industry topics

The IATA Annual General Meeting (AGM) and World Air Transport Summit is the world’s largest gathering of airline leaders.

The 71st AGM in Miami in June 2015 attracted close to 800 attendees including CEOs from 85 airlines, as well as high level executives from OEMs, airports, governments, ANSPs, IT providers and other stakeholders.

In 2016, the 72nd AGM will be hosted by Aer Lingus and will take place in one of Europe’s most welcoming cities, Dublin, Ireland.

Air transportation plays a vital role in the social and economic life of Ireland and the Irish have a proud history of contribution to the development of aviation.

The IATA AGM and World Air Transport Summit is a unique opportunity to hear first-hand the views of the industry’s top chief executives and leaders.

CTO Unveils Plan of Action to Promote ICTs for Dev

By
Business Journal
-
0

The Secretary-General of the Commonwealth Telecommunications Organisation (CTO), Mr. Shola Taylor, has outlined how the Organisation plans to aid the development of ICTs in the Commonwealth and beyond.

Speaking at a moderated high-level panel session on the 2030 Agenda for Sustainable Development taking place at the World Summit on the Information Society Forum 2016 (WSIS), Taylor outlined the CTO’s plans work to promote broadband, ICT applications and cybersecurity to deliver the benefits of ICTs to peoples around the world.

“The CTO’s new strategic plan for 2016 to 2020 seeks to contribute to the promotion of ICTs for development by prioritising its interventions in key areas,” Taylor said.

“In addition to working on broadband, applications and cybersecurity, we will also assist our members to create forward-looking regulatory environments that will encourage investment, facilitate innovation and maximise resources.”

As the Organisation mandated by ICT Ministers to coordinate Commonwealth engagement in international ICT fora, the CTO will work with international and regional stakeholders in pursuit of the common goals of the 2030 Agenda for Sustainable Development.

“We, the ICT stakeholders, need to work collectively and collaboratively to ensure that the benefits of ICTs are maximised and equitably distributed,” Taylor said.

“This is of particular importance to the Commonwealth, a unique collective of 53 countries with a combined population of 2.2 billion, whose membership includes both well-endowed and less-endowed countries, in various stages of ICT development.”

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.

1...352353354...393Page 353 of 393