Monday, 1 April 2013

US plans new trade, investment deal with ECOWAS

The United States has hinted of plans to explore new opportunities to boost trade and investment with West Africa.

Acting US Trade Representative, Demetrios Marantis, on March 29, 2013 said the US is looking at the possibility of a new Trade and Investment Framework Agreement (TIFA) with the Economic Community of West African States (ECOWAS).

Mr Marantis made the announcement during a visit to Washington by four African leaders – President Bai Koroma of Sierra Leone, President Macky Sall of Senegal, President Joyce Banda of Malawi, and Prime Minister Neves of Cape Verde.

Sierra Leone, Senegal, and Cape Verde are all ECOWAS Member States.

Wednesday, 27 March 2013

Nigerian Stock Exchange to List Five ETFs this Year

Nigerian Stock Exchange to List Five ETFs this YearThe Chief Executive Officer of the Nigerian Stock Exchange (NGSE), Mr. Oscar Onyema, said the exchange would list five exchange-traded funds (ETFs) this year to increase products available to investors.

He also said the exchange is putting strategies in place to increase the number of investors from five million to 40 million by 2016. The NSE had last year listed the first ETF (NewGold).

Speaking at the BusinessDay Capital Market Annual Conference in Lagos yesterday, Onyema said more ETFs would be listed this year, just as he restated the call for the listing of already privatised companies of government on the bourse.

Nigeria: Finance - Elumelu, Task FG to Support Entrepreneurs to Grow Economy

Tony Elumelu
The Federal Government has been advised to support entrepreneurs by providing them with adequate funding and create an enabling environment that will boost their businesses and in turn grow the economy.

Tony Elumelu, the philanthropic entrepreneur whose self-named foundation has been promoting business excellence and leadership across the continent for the last three years said, Nigeria's entrepreneurs should be firmly encouraged to continue making sustainable investments in the local economy, as this will form a new approach toward building competitive industries in +Africa.

In fulfilment of its mandate to promote entrepreneurship and competitiveness throughout Africa, The Tony Elumelu Foundation hosted its Founding Patron, the world's foremost expert on business strategy and competitiveness, Professor Michael Porter, at a series of lectures and events intended to inspire and improve business leaders from around the country.

Who Else Wants to Invest in Nigerian Stocks?

Photo by World Bank
Photo by World Bank
In case you missed it, the Nigerian Stock Exchange is making investors wealthy of late.

Thanks to a raft of reforms and a growing realization of the investment opportunities in Africa’s most populous nation, the MSCI Nigeria Index is up 78.6% over the past 12 months.And this bull run looks like it may have some real legs. The market remains well below its five-year high. The five largest companies on the exchange have an average P/E ratio of 15.4 in spite of them averaging earnings growth of 40.6%. And 23 foreign portfolio managers are poised to dive into the market.
I’m guessing some of you would like to do the same. Unfortunately, the market isn’t as easily accessible as its larger counterpart in Johannesburg. So how exactly can a non-resident invest in Nigerian stocks?
Investing in Nigeria via ETFs and Mutual Funds
The simplest entry point for most US-based investors is through an ETF. This is as easy as buying any other stock listed on the NYSE or NASDAQ. The downside is that your exposure to the Nigerian market will be limited the weight given to it by the ETF’s portfolio manager. The majority of these funds’ holdings are not Nigerian, so you’ll want to take a close look to see if the portfolio as a whole fits with your investment strategy.

NCC Slashes Call Tariffs

The Nigerian Communications Commission (NCC) has released new set of interconnection rates for voice services.

This can be seen as the desired response of many Nigerians, in line with complaints made over the high tariffs charged by these telecoms operators in the country.

The Director of Public Affairs, Mr Tony Ojobo told a news conference in Abuja that the new rates which takes effect from 1st April and will last for the next three years and will significantly favour subscribers.

The review, which will start from April 1, 2013, was agreed on after comprehensive consultations with various stakeholders, the NCC said in a statement on Thursday.

“The new termination rates, which significantly reviewed prices downwards, are informed by the depth of competition in the industry, while taking into consideration the position of new entrants and small operators,” the commission said in the statement.

Nigerian Stock Exchange Launches X-Issuer

The Nigerian Stock Exchange (NSE) has introduced the first ever issuers’ portal in the Nigerian capital market, known as X-Issuer.


Brokers work on the trading floor of the Nigerian Stock Exchange
in the commercial capital, Lagos
The new portal, which was formally launched on Tuesday, is one of a number of new regulatory initiatives of the NSE that will allow online information submission for enhanced interaction between the exchange and listed companies.

The portal is expected to encourage transparency and accountability, and will expedite the discharge of issuers’ post-listings obligations relating to structured and continuous disclosures.

The X-Issuer will also offer unique benefits of data capture, form submission validation and other ancillary services such as submission notification mechanisms and tracking of submitted information.
With this, listed companies no longer need to submit hard copies of information to the exchange by post, hand delivery or courier.

FBN Holdings Delights At Resolution Of Tax Issues For Nigerian Bank Holding Companies

FBN Holdings PlcVENTURES AFRICA – The management of FBN Holdings Plc expressed delight at the timely resolution of tax issues which has engendered an equitable taxation regime for Bank Holding Companies in the nation.

The Bank Holding Companies emerged in compliance with the Central Bank of Nigeria’s Regulation on the Scope of Banking Activities & Ancillary Matters, No. 3, 2010 requiring the separation of commercial banking business from other financial services businesses. They include FBN Holdings Plc, Stanbic IBTC, UBA, and FCMB.

Speaking on the issue, the CEO of FBN Holdings Plc, Mr. Bello Maccido said the holding companies at inception faced a major concern over possible interpretation of existing tax statutes that would lead to the double taxation of dividends. There was also a concern about the magnitude of transaction costs that would be incurred by the banks in responding to the change in regulations.

Aig-Imoukhuede, Yuguda may replace Sanusi as CBN gov

Mr. Aigboje Aig-Imoukhuede
Mr. Aigboje Aig-Imoukhuede
Indications have emerged that President Goodluck Jonathan may be considering the Group Managing Director of Access Bank Plc, and Governor Isa Yuguda of Bauchi State to replace Mallam Lamido Sanusi as the Governor of the Central Bank of Nigeria, CBN.

The Governor of Bauchi State, Alhaji Isa Yuguda, is also said to be lobbying to get the plum job and is actively pushing his candidacy through Vice-President Namadi Sambo.

Sanusi, whose tenure end early next year, has said he would not seek reappointment for a second five-year term.

The CBN governor, whose grandfather was Emir of Kano, had openly expressed his interest in becoming the next Emir.

Even before Sanusi’s declaration, Presidency sources had said he was not likely to be nominated for another term despite enjoying a rather successful but controversial tenure.

Sources said top Presidency officials feel that Sanusi’s nomination might become a problem for President Jonathan if he is put forward next year as the CBN governor has become one of the biggest critics of the administration’s huge spending on political office holders and other cronies of those in power.

CBN okays new forex policy on importation

THE Central Bank of Nigeria (CBN) has kicked-off the self-service process in the automation of foreign exchange forms, now known as Electronic Form M (e-Form M) on the trade monitoring system.

It also approved a fee to be paid by importers and traders for accessing the e-Form M on the single window for trade.

The e-Form M automation, which was scripted to aid the apex bank’s cash-less initiative and remove bottlenecks involved in making foreign exchange transactions, especially by importers, would now be initiated by individuals concerned.

In a statement signed by the Director of Trade and Exchange Department, W.D. Gotring, the apex bank noted that following the successful deployment of the forex form on the Nigerian Single Window for Trade portal, it became necessary to commence the self-submission of the form by importers and traders.

NSE to unveil supplementary market makers April 2

    NSE to unveil supplementary market makers April 2THE Nigerian Stock Exchange (NSE) will unveil supplementary market makers on April 2.
Briefing the press yesterday, the Executive Director for Market Operations, Ade Bajomo said that the market makers would complement the activities of primary market makers introduced in September, 2012.

Besides, he said that on that date the circuit breaker for all quoted stocks on the NSE would move 10 per cent upward.

According to him, the aim is to ensure liquidity in the capital market.

He said that the minimum requirement for each supplementary market maker would be N250, 000 and that the exchange had received 20 applications.

Bajomo said that the exchange would ensure there is no limit to the number of supplementary market markers, adding that whoever qualifies would be picked.

NCC registers over 100million telecom lines in Nigeria

Nigeria is the fastest communication growing country in Africa with the National Communication Commission (NCC) registering over 100million communication lines and subscribers. The development amounts to 81 percent telecommunication density which is also the largest in the continent.

The Executive Vice Chairman of NCC, Mr Eugene Juwah, made these disclosures Friday at the ongoing Enugu International Trade Fair. He was Sunday Atuh who added that through the Universal Access Programme, the Commission had ensured deployment of telecommunication services to the rural areas.

“Our mobile number portability initiative will commence by March 26. This is a new platform where a subscriber can move from one network to another using his or her mobile number,’’ he said.
The Chairman, Senate Committee on Communication, Sen. Gil Nnaji, at the occasion, criticised the spate of destruction on telecommunication facilities, saying it will affect services.
Nnaji, representing Enugu East Senatorial zone, called for restraint, saying the senate would continue to collaborate with the Ministry of Communication to provide adequate infrastructure to aid efficient services.

“We are worried by the state of bombings and motiveless destruction of telecommunication facilities and installations. I plead with every individual and groups to refrain from acts capable of disrupting the smooth operations of telecommunication services,’’ he said.
Source: Daily Times

Unilever calling in on Africa

Project Shakti is unleashing the potential of rural India. Unilever is now kicking off the experiment in Nigeria and Kenya.

Project Shakti is unleashing the potential of rural India. Unilever is now kicki

Consumers throughout the western world are used to those famous two words ... "Avon calling". Now the people of Africa will be exposed to the same selling technique, but instead of just cosmetics it will be shampoos, cleaning fluids and detergents they can buy – courtesy of multinational giant Unilever.

The first countries to benefit from the company's direct to consumer distribution scheme – known as shakti – which has already been a huge hit in India, will be Nigeria and Kenya.

And another major difference from Avon is that the army of Shakti vendors in Africa won’t comprise solely of women, as men are being recruited too.

Unilever’s move into shakti comes on the back of increased disposable income in India and certain parts of Africa, but where distribution is made difficult by poor road and rail networks.

“We are kicking off the experiment as we speak in Nigeria and Kenya,” said Frank Braeken, head of the Anglo-Dutch conglomerate’ in Africa.

“Women work full-time in Africa; they are the ones who really carry the agricultural economy. The men decide on the crop to plant and the women do the work. So that can make it more challenging for us to hire women,” he says.

Nigerian teams are more likely to be a combination of men and women.

Unilever, producers of Dove skin care and Flora margarine, are developing the model of employing tens of thousands of vendors that it started in India in 2000.

There, the Shakti programme employed women to sell to friends and family in remote villages. It began with just 17 women in two states but now has 45,000 women serving more than 3m households.

In Africa, though, Frank Braeken believes it will be tougher to recruit sufficient women.
Nestle already runs similar schemes in parts of Africa. It has over a thousand ice cream vendors in South Africa – who are given bikes, uniforms and even washing machines – as well as 5,500 individual vendors in the central part of west Africa.

A similar scheme in the Democratic Republic of Congo is targeting 100 first-time women entrepreneurs selling Nestle products in the streets of Kinshasa by the end of the year.

Unilever provides microfinance for its vendors and Mr Braeken sees this as a potential difficulty in Africa where banking infrastructure is less well-established than in India.

While the Shakti programme allows Unilever to distribute its products to far-flung places it could not otherwise reach, the conglomerate points out that it also provides a livelihood for people – especially women – who might otherwise struggle to find work. Instead, the scheme allows them to make a monthly profit of $15-$22, Unilever says.

Unilever generates annual sales of more than €5bn ($7.2bn) in Africa.

Understanding Business & Social Culture In Sub-Saharan Africa

Business in AfricaVENTURES AFRICA – Sub-Saharan Africa consists of 48 countries and is more than three times the size of the USA. With the Democratic Republic of Congo as large as all of Western Europe, sub-Saharan Africa presents immense investment potential.

Africa has 90 percent of the world’s cobalt reserves, 80 percent of the chrome, 50 percent of the gold, 50 percent+ platinum, 33 percent uranium. Nigeria, Africa’s second-largest economy, is the fifth largest supplier of oil globally.

In Africa, social and business culture reflects the past colonial history, which divides this vast land into three groups:

▪ Anglophone countries (English speaking)
▪ Francophone countries (French speaking)
▪ Lusaphone countries (Portuguese speaking)

How 'outsider' Fletcher clinched major deal to fight disease in Nigeria

Fletcher Rae's plans for the massive facility in Port Harcourt, Nigeria.
Fletcher Rae's plans for the massive facility in Port Harcourt, Nigeria.
By Eric Jackson
With an office that is literally in the shadow of the Beetham Tower, one of the tallest, most recognisable buildings in the UK, Manchester architect Bob Fletcher could be forgiven for feeling a tad envious.

Such edifices, especially when they attract tenants like the Hilton and are quirkily top heavy, pick up awards and bestow glamour and fame, but the joint MD of the architects Fletcher Rae, whose studios nestle in the renovated Castlefield area of the city and employs 18 people, takes pride that most of his projects are a lot larger but a little bit more down to earth – as low as one storey, in fact, and are now helping third world progress.
“I was originally branded as a bit of a shed-head,” says the ebullient north Manchester-born father of two about one of his company’s specialities for major manufacturing and logistics facilities.
“But if something functions well, it’s delivered on time and on budget and people like it, that’s the real satisfaction. I’m not too worried about the publicity.”
Bob, though, who at 60 doesn’t look a day over 50 with thick, dark hair, has reason to hold his ‘shed- head’ high.

Zenith hits new Nigerian banking peak with London Stock Exchange listing

Zenith Bank, one of Nigeria’s largest banks, has officially listed on The London Stock Exchange.
The bank, which was listed on the Nigerian Stock Exchange in 2004, has subsidiaries in the UK, Ghana, Sierra Leone, The Gambia and representative offices in South Africa and China.

With a customer base of over two million accounts at 366 branches and total assets of $27bn, it is the biggest Nigerian bank in terms of Tier 1 capital and shareholders' funds.
Mr Godwin Emefiele, managing director and chief executive officer of Zenith Bank, said: “We are delighted with the success of our inaugural GDR listing.

Thursday, 21 March 2013

IPSAS: An African odyssey

By: Sylva Okolieaboh

Compared to the West, African nations seem to be in a hurry when it comes to implementing International Public Sector Accounting Standards. We’ll know soon whose model works best

If you are an African, a friend of Africa, a public financial management practitioner of African descent or a good governance and public accountability crusader in Africa, this is your time to rejoice. Your homeland is on to something new, noble and bold, as a wave of awareness sweeps through our continent.

From the banks of the South Atlantic bordering the Cape of Good Hope through the rough hard tops of Zuma Rock to the wide, wild expanse of Tahir Square, change has met Africa in an unusual, unexpected but pleasant place. International Public Sector Accounting Standards (IPSAS) have made a triumphant entry into Africa. And Africa has, in turn, embraced IPSAS.

IPSAS are a collection of public sector accounting standards issued by the International Public Sector Accounting Standards Board (IPSASB). Fashioned after International Financial Reporting Standards (IFRS), their private sector predecessor, IPSAS seek uniformity and consistency in public sector financial reporting across jurisdictions.

Nigerian Naira Weakens as Central Bank Reduces Dollar Supplies

The naira depreciated to the lowest in almost a week as the Central Bank of Nigeria offered fewer dollars at an auction, offsetting its decision to hold the key lending rate at a record high to support the currency.
The currency of Africa’s biggest oil producer fell 0.2 percent to 158.95 per dollar by 4:19 p.m. in Lagos, the commercial capital, according to data compiled by Bloomberg.

The Abuja-based bank sold $280 million at a foreign-currency auction today, less than the $300 million given out at the previous sale on March 18, it said in an e-mailed statement. The Monetary Policy Committee kept its benchmark interest rateat a record high of 12 percent for a ninth consecutive meeting yesterday to support the naira.

“Traders reacted to lower dollar supply by the central bank amid rising demand,” Sewa Wusu, an analyst at Lagos-based Sterling Capital Ltd., said by phone. “The policy rate should boost naira overtime as it checks liquidity of the local unit.”

In the next week, the naira should trade at about 158.7 per dollar with monetary policy support, Kunle Ezun and Kenneth Asenime, analysts at Ecobank Transnational Inc. in Lagos, wrote in an e-mailed note to clients today.

The yield on the country’s 16.39 percent domestic bonds due January 2022 declined 34 basis points to 11.26 percent in the secondary market, according to yesterday’s data compiled on the Financial Markets Dealers Association website. Yields on the $500 million of Eurobonds due January 2021 declined 10 basis points to 4.232 percent.

Ghana’s cedi weakened 0.1 percent to 1.9373 per dollar in Accra, the capital.

Source: Bloomberg

Wednesday, 20 March 2013

The Secrets of What Makes a Product Go Viral

The Secrets of What Makes a Product Go ViralTen years ago, had you ever heard of the hand sanitizer Purell? It existed, but nobody really used it. Then one day, it was everywhere. Grocery stores placed dispensers at the door, nail salons gave it to clients, and people started carrying travel size bottles in their bags. With little advertising, how did Purell catch on?

Jonah Berger, an assistant professor of marketing at the University of Pennsylvania’s Wharton School of Business, has dedicated his career to answering that question. As he explains in his new book, Contagious: Why Things Catch On (Simon & Schuster, 2013), every viral product has six key features in common -- features that can be replicated to make any product go viral.
"People often think that contagious products just get lucky," Berger says. "But it's not luck and it’s not random. It's science."

According to Berger's research, specific circumstances and attributes empower consumers to share a given product. Any business can leverage those insights to create a viral hit. "You don't need a huge advertising budget," Berger says.

As many as half of consumers' purchasing decisions are driven by word of mouth marketing -- it's trustworthy and far more targeted than traditional advertising. Plus, the majority of those interactions happen offline, where advertisements can't reach. "Authenticity is a big reason word of mouth impacts behavior," Berger says.

To create a viral product that consumers are inspired to share authentically, incorporate these key elements.

1. Social currency. Consumers are more likely to adopt a product if it makes them feel special or ahead of the curve. For example, Gilt's exclusive sales helped it become one of the hottest online shopping sites.

2. Triggers. Products that catch on become part of our everyday lives, so successful products create reasons and reminders to return on a regular basis. For example, Facebook and Twitter drive you back to their sites every time they email you to say you have a new message or mention.

3. Emotional impact. People tend to evangelize a product if it affected them emotionally, whether it solved a stressful problem or brightened a bad day. For example, if a Buzzfeed article makes you laugh, you’ll likely share it with friends who need a lift.

4. Visibility. Giving a product a distinctive feature, such as a standout logo or color, helps consumers notice when others are using it. For example, you immediately recognize iPods because Apple made the headphones white when other companies all used black.

5. Practical value. A truly useful product that helps the user become more effective is more likely to be recommended often. For example, Evernote is very good at helping users remember and organize information, so it's often recommended for research.

6. Stories. If people are going to share your product, they need to be able to tell its story. That can be as simple as a clear statement about what the product does, or as complicated as a really interesting origin story. For example, people who buy TOMS shoes love telling others how one pair is donated for every pair you buy.

Nigeria’s Central Bank Governor Won’t Renew Contract

Lamido Sanusi
Nigeria’s central bank Governor Lamido Sanusi said he won’t renew his contract when his five-year term expires next year.

Sanusi, who has led the bank of Africa’s biggest oil producer since June 2009, said it was never his intention to stay longer than one term. He was speaking in an interview with CNBC Africa in Abuja, the capital.

Appointed in the midst of a debt crisis that threatened the collapse of the nation’s banking system, Sanusi, 51, fired the chief executives of eight lenders within four months of taking office. An audit of banks at the time found evidence of mismanagement and reckless lending.

In 2011, he was named central bank governor of the year by London-based The Banker magazine.
Nigerian inflation probably won’t accelerate too far above 10 percent this year, Sanusi told CNBC. The inflation rate rose to 9.5 percent in February from 9 percent in the previous month.

“We don’t think we are going to see inflation above double digits this year,” he said.

How to Win a Business Negotiation

How to Win a Business NegotiationIf you're in business, you're a negotiator. You have no choice. Business doesn't happen unless two or more people enter into a transaction.
This can be as simple as buying inventory or as complicated as a merger of two public companies.
Without transactions, business doesn't happen, and every transaction involves a certain amount of negotiation.
When you're in business, negotiating the best possible deals is a high, if not the highest, priority. As a business owner, you can't know enough about negotiating.

It's a lot easier to describe what negotiation “isn't” than what it is. Let's get some things straight upfront. Negotiation is not:
  1. A search for truth, justice and the American way.
  2. A friendly discussion at the corner of Starbucks.
  3. A quest for the perfect solution to a business problem.
Make no mistake: Negotiation is a game. The goal in negotiation is to win -- to get the best deal you can. Period.
To get ready for any negotiation, you must do three things: