South Africa Wealth Fund To Expand Investment In Dangote Group

VENTURES AFRICA – Public Investment Corporation (PIC), South Africa’s biggest sovereign wealth fund, on Monday said last week’s transaction with Dangote Cement will open up new acquisition prospects in Dangote’s other operations.

Head of Resources at PIC, Fidelis Madavo, said these operations included Dangote’s sugar, flour, oil refinery and port operations.

Last week PIC said it had bought 1.5 percent of Dangote Cement, Nigeria’s largest listed company, in a deal valued at $289.3 million. PIC bought the shareholding at 179 naira a share.

Last week, Ventures Africa reported that PIC’s latest move was a sign that the JSE’s biggest investor is now committed to diversifying its geographic investment spread.

PIC made the announcement last week after it had bought 19.58 percent of pan-African bank, Ecobank Transnational, in a transaction worth $250 million.

This was its initial main transaction outside of South Africa.

It is understood that PIC has about $7 billion to be splashed in the African continent.

According to Leadership, the money will be invested in almost 20 listed firms in the consumer, infrastructure, telecommunications and agro business as growth rates in the continent continue on an upward trajectory.

Lanre Buluro, head of research at Primera Africa Securities, told Leadership it would be interesting to check if the PIC will investigate other opportunities outside Dangote in Nigeria.

“That would be positive for our market,” Buluro told Leadership.

Scottish oil and gas industry makes significant strides in Africa

A report released last month by Scottish Development International (SDI), Scotland’s investment promotion agency, revealed a 6 per cent growth in sales of oil and gas exports from Scotland to Africa in 2011/2012, with total international sales from both direct exports and overseas subsidiaries valued at £1,195 million.           

This investment in Africa reflects a +15 per cent swing in the growth rate of total sales into Africa from Scotland witnessed since 2009/2010.

The annual publication, published in conjunction with the Scotland Council for Development and Industry, analyses Scotland’s international activity and contribution to the global oil and gas industry, and examines the value and destination of international sales achieved by Scottish service/supply companies. The latest survey for 2011-2012 revealed:

Scotland’s oil and gas industry has experienced significant growth on the world market over the last 10 years.

76% Of Rural Dwellers Don’t Patronise Banks — NDIC

The Nigeria Deposit Insurance Corporation (NDIC) has said that about 76.8 per cent of rural dwellers in Nigeria do not patronise financial institutions, especially commercial and micro-finance banks in the country.

Managing Director of NDIC, Alhaji Umaru Ibrahim, disclosed this yesterday in Port Harcourt during the opening ceremony of a two-day workshop organised by the corporation for operators in the micro-finance banking sub-sector.

Ibrahim stated that the development showed that there was a huge untapped potential for financial services at the micro level of the Nigerian economy, pointing out that attempts by authorities in the past to fill the financing gap were not successful.“With an estimated population of over 160 million people in Nigeria, 70 per cent of whom are involved in the informal sector, 76.8 per cent of the rural residents are unbanked. It goes without saying that there exists a huge untapped potential for financial servces at the micro level of the Nigerian economy. Attempts by the authorities in the past to fill this financing gap were not successful,” he said.

Sterling Bank Seeks N12.5bn From Shareholders For Business Expansion

Sterling Bank Plc says it intends to raise N12.48 billion through the issuance of rights issue from its existing shareholders between June 24 and July 31.

Mr Yemi Adeola, the bank's Managing Director, announced the plan at a completion board meeting held on Monday in Lagos.

Adeola said that rights issue of 5.89 ordinary shares of 50k each would be sold at N2.12 per share for expansion of business operations.

The News Agency of Nigeria (NAN) reports that the current price of the bank’s stock is N2.66k as at June 17.

He said that the rights would be issued on the basis of three new ordinary shares for every eight ordinary shares held by shareholders as at May 20.

Adeola said that out of the proceeds of N4.24 billion would be used for branch expansion, N1.82 billion for infrastructure upgrade, while N1.21 billion would go for information technology.
According to him, N12.13 billion will be used to increase the bank's working capital.

Margin Loans: SEC Approves 32 Securities, Excludes Banks’ Stocks

In a move to prevent a relapse to the 2008 stock market downturn, the Securities and Exchange Commission (SEC) has approved 32 securities that can be used as collateral for margin loans.
The approved 32 securities contained in the Margin List released by the regulatory authorities on Friday, however, excludes banks’ stocks from being used as collateral for margin transactions, but allowed other stocks in the market to be used in margin trade on the equities market.

The SEC and Central Bank of Nigeria (CBN) had earlier introduced a set of rules to regulate margin lending following the realisation that unsupervised use of margins to fund investment in listed equities contributed to the share price crash in 2008.

Unveiling the list of securities that could be used for margin loan facilities, SEC said the list was not an investment recommendation, but rather a guide to those who wished to engage in margin activities. The approved 32 securities include: Ashaka Cement Plc; Cadbury Nigeria Plc; Conoil Nigeria Plc; Custodian and Allied Insurance Plc; Dangote Cement Plc; Dangote Flour Mills Plc; Dangote Sugar Refinery Plc; Fidson Healthcare Plc; Flour Mills Nigeria Plc; Glaxo Smithkline Consumer Plc; Guinness Nigeria Plc; Honeywell Flour Mill Plc; International Breweries Plc; Julius Berger Plc.

Others are: Lafarge Cement WAPCO Nigeria Plc; Livestock Feeds Plc; Mansard Insurance Plc; Mobil Oil Nigeria Plc; National Salt Company Nigeria Plc; Nestle Nigeria Plc; Nigerian Aviation Handling Plc; Nigerian Breweries Plc; Oando Plc; Okomu Oil Palm Plc; P Z Cussons Nigeria Plc; Presco Plc; Seven-up Bottling Company Plc; Total Nigeria Plc; Trans National Corporation Plc; UACN Property Development Plc; Unilever Nigeria Plc; and UAC of Nigeria Plc. In a statement to the market community, the SEC head of media, Mr. Yakubu Olaleye, said SEC recognised the need to remedy the situation and chart a new course founded on the principles of risk-based supervision.
SEC advised investors to check the Margin List before entering into a margin lending arrangement with a broker or a bank, warning that only persons and entities who are knowledgeable about margin activities should engage in such transactions.

Source: Leadership

True entrepreneurs invest every part of them into building a company - Njoku, CEO iROKOtv

Jason Njoku

Last year, Jason Njoku, CEO of iROKOtv, an internet based business raised $8 million in venture capital from Tiger Global Management. Barely three months after, it closed on a $2 million round of funding from Swedish-based Kinnevik, with the aim of using the new investment from Kinnevik to grow iROKO Partners’ operations in New York, London and Lagos, as well as to purchase more content for iROKOtv, which launched three years ago. In this interview with RUTH OLUROUNBI, Njoku , who was on Forbes’ list of 10 young African millionaires to watch, reveals the process that led him up to this point.

How does it feel being on Forbes’ list of 10 young African millionaires to watch?
It’s a huge compliment, naturally, and I’m flattered to be recognised among other young high achievers, but my first priority each and every day is to build an awesome business. This is where 100 per cent of my time goes – accolades and lists are a welcome addition but I don’t dwell on them too much.

For the sakes of those who don’t know, what does iROKOtv do?
www.irokotv.com - streams Nollywood (Nigerian Hollywood) movies online. We have over 5,000 Nollywood movies in our catalogue and absolutely anyone with internet connection can access the majority of movies for free. You just have to visit the site and click on a movie and it starts playing. For those who are Nollywood fanatics and want the brand new movies as soon as they’re available, then we have iROKOtv PLUS, a subscription service where for only $5 a month, they can access all the latest movies. We have almost one million unique views each month, with people watching iROKOtv from 178 countries around the world.

Banks Frustrating Access To N450b Agric Fund – Agric Minister

Dr Adewunmi Adeshina

The expected gains of the N450billion Nigeria Incentive-Based Risk-Sharing System for Agricultural Lending (NIRSAL) special credit portfolio set aside by the Central Bank of Nigeria is yet to be seen due to high interest rates pegged on it by banks, the Minister of Agriculture and Rural Development, Dr Adewunmi Adeshina has said.

Speaking at the inaugural meeting of the Nigeria Agribusiness Group (NAG), Adeshina said research carried out by the Agric Ministry and stakeholders have revealed that NIRSAL was yet to function proper and discharge its purpose due to the high interest rate pegged on it by banks allotted to disburse the funds to farmers.

He lamented that the high interest rate has continued to obstruct its aim of establishment as the credit risk guarantee and interest drawback fund programme operated by the CBN to stimulate agricultural financing and trigger the nation’s agricultural industrialisation process.

Nigeria's mobile money providers to develop standards

Nigeria's central bank has been pushing mobile payments as a mechanism to address the nation's high rate of unbanked consumers. To that end, the country's Association of Licenced Mobile Payment Operators is looking to develop standards and build a framework for mobile financial services.

According to a story on AllAfrica.com, ALMPO will be working with the Central Bank of Nigeria to ensure cooperation among the various stakeholders and viability of mobile payments in Nigeria.
"We want to put the future of our mobile payments industry on a clear and firm footing, and an independent body comprising of all licence stakeholders is the logical first step," said Dara Owolabi, ALMPO chairman, in the story.

Nearly three-quarters of Nigeria's population is unbanked, lacking access to basic financial services. However, more than 100 million out of 170 million Nigerians have mobile phones.

Source: Mobile Payments Today

Vukile pulls back on plan to acquire Wingspan’s retail centres

CEO of Vukile Property Fund, Laurence Rapp.
Vukile pulls back from acquiring Wingspan’s property
portfolio comprising five regional shopping centres.

JSE-Listed Vukile Property Fund Ltd (VKE) on Tuesday announced that its negotiations to acquire Wingspan’s property portfolio comprising five regional shopping centres had been terminated.

In April Vukile announced it had entered into negotiations for the acquisition, either alone or together with a third party, of the Wingspan property portfolio.

Blue-chip retail acquisitions have become a rarity in the sector, with property players looking to hold on to their assets that are in demand.

The Wingspan portfolio, which is Retail Africa’s regional shopping centre fund, houses the Irene Village Mall, Village Mall Hartbeespoort, Weskus Mall, Westwood Mall and Fountains Mall.

The deal would have pushed Vukile’s retail exposure to about 60% of its total portfolio — which is the diversified fund’s target for retail. Vukile was unable to comment further on Tuesday.
While an analyst says this may not necessarily be the result of recent listed-property price declines, general price weakness in the sector has made many potential property deals less attractive than before.

IHS, Wema, Transcorp Boost Trading On NSE

The equities rally being witnessed at the Nigerian Stock Exchange (NSE) continued yesterday as increased trading in the shares of IHS Plc, Wema Bank and Transnational Corporation of Nigeria boosted turnover.

Telecommunication service company, IHS recorded the highest volume of shares exchange with 299.19 million shares valued at N598.4 million in eight deals, having sold at N2.00 per share. It was followed on the activity chart by Wema Bank which had shed 1.67 per cent of its share price to sell at N1.18.

Investors had traded 170.54 million shares of the bank valued at N202.91 million in 50 deals, while 103.9 million shares of Transcorp worth N135.12 million shares were exchanged in 123 deals. At the end of the day, turnover on the bourse stood at 988.08 million shares valued at N5.69 billion that changed hands in 7,842 deals.

Value was also on the rise with market capitalisation closing higher at N12.85 trillion having risen by 0.69 per cent or N88.37 billion. Also, the All Share Index rose by 0.69 per cent to cross to 40,012.66 basis points from 39,737.80 basis points. The bull took over as 50 equities made price appreciations during the day as against 17 that depreciated in price.

Source: Leadership

NSE: Index Appreciates By 0.69% To Cross 40,000 Mark

Transactions on the Nigerian Stock Exchange (NSE) on Tuesday maintained the upbeat trend with the All-Share Index recording a growth of 0.69 per cent to cross the 40,000 mark.

The News Agency of Nigeria (NAN) reports that the index advanced by 274.86 points to close at 40,012.66 in contrast to the 39,737.80 achieved on Monday.

Also, the market capitalisation rose by N88 billion to close at N12.85 trillion against the N12.77 trillion recorded on Monday.

Flour Mills recorded the highest price gain, appreciating by N9.51 to close at N104.67 per share.
Total and Guinness came second on the gainers' table, rising by N5 each to close at N170 and N293 per share, respectively.

Presco gained N3.40 to close at N37.40, while PZ Cussons rose by N3.02 to close at N56 per share.
On the other hand, Nigerian Breweries led the price losers, dropping N3 to close at N174 per share.
Larfarge Cement WAPCO lost N1 to close at N98, while Oando dipped by 90k to close at N14.17 per share.

Portland Paint dropped 47k to close at N4.31, while GT Bank decreased 30k to close at N28 per share.

In all, investors exchanged 988.04 million shares valued at N5.70 billion in 7,844 deals.
This was against the 735.29 million shares worth N50.95 billion traded in 6,897 deals on Monday.
IHS emerged the most traded stock, accounting for 299.19 million shares valued at N598.40 million.
Wema Bank trailed with 170.55 million shares worth N202.92 million, while Transnational Corporation of Nigeria sold 103.91 million shares valued at N135.13 million.

NAN also reports that Resort Savings and Loans sold a total of 48.20 million shares worth N24.10 million.

Source: Leadership

Budding entrepreneurs deliver on new mobile app for the District

The District has long been an area with a booming tech start-up industry and a vibrant entrepreneurial scene.

And local young African Americans are taking advantage of the rapidly expanding opportunities, developing tech LLCs, support groups and ventures to nurture their dreams.

 

Enter Ron Cade and Adrienne Sheares, two budding entrepreneurs who this week launched a delivery service mobile app for the Washington area.

Urban Delivery allows users to request carriable items for pickup or purchase and then have them delivered. Need your dry cleaning picked up before a business meeting but can’t get away? Urban Delivery will send a bike messenger to bring it to you. Need a small item, say an iPhone charger, bought and delivered? Tap the app on your iPhone or Android-powered device and request a courier.
Sheares, 26, a graduate of Spelman College, used her experience in communications to create the app. She and Cade met while playing on a kickball team and worked on the app for seven months last year. She said the idea started with a question.

Nigeria Diamond Bank asks BNP to market $550mn bond

LAGOS: Nigeria's Diamond Bank has asked France's BNP Paribas and Afrexim Bank to lead an investor road show to Europe, the US and Asia for a Eurobond that could go up to $550 million, a banking source with knowledge of the deal said on Tuesday.

The amount the bank raises will depend on market conditions, the banker said, noting that the mid-tier lender was aiming for yield of between 6-8 percent. Pricing for the bond was expected next week, he said told Reuters.

Diamond Bank CFO Abdulrahman Yinusa told a Reuters Africa Investment Summit in Nigeria's commercial hub of Lagos in April that the bank would use funds from the debt issue to increase lending to the oil and gas, power and infrastructure sectors in Africa's second biggest economy.

Last month, rival lender Fidelity Bank issued a $300 million 5-year Eurobond paying a 7 percent yield.

Source: Reuters

Tackling liquidity challenges in Nigeria’s capital market

Mr Oscar Onyema

The place of liquidity in the survival of any capital market cannot be over emphasised. This is why the issue has continued to occupy the front row in the scheme of things in the nation’s capital market.
This also stemmed from the fact that the importance of the capital market in any economy cannot be undermined and so, for Nigerian economy to achieve its full potential, there is the need for the capital market to be strong, sustainable and function very well.

At some point earlier in the year, the Chief Executive Officer (CEO) of the Nigerian Stock Exchange (NSE), Mr Oscar Onyema, called for a concerted effort to drive improvements in market participant experience.

This, he said, was necessary because according to him, “the Nigerian Capital market will continue to face challenges around liquidity and depth in 2013.

Tribune business gathered from the Exchange that a number of measures had been put in place by the management of the NSE to increase liquidity and investors’ confidence in the market.

Dangote Group subsidiaries pay N59bn dividend in 2012

Shareholders of three Nigerian Stock Exchange (NSE) listed subsidiaries of the Pan-African conglomerate, Dangote Group, are currently basking in the euphoria of good harvest as the companies made bumper returns on their investments.

Aliko Dangote

As at end of December, 2012 fi nancial year, Dangote Cement, Dangote Sugar Refinery and National Salt Company of Nigeria (NASCON) altogether paid a jumbo N59 billion as dividends.

The Group’s flagship, the Dangote Cement led the pack with a total dividend payout of N51 billion, Dangote Sugar rewarded the shareholders with N6billion while Dangote Salt (NASCON) paid out N2.3 billion as dividends.

As for Dangote cement, the dividend approved by the shareholders at the 2012 Annual General Meeting (AGM), held in Abuja translated to an unprecedented 300 kobo per share.

As for Dangote Sugar Refi nery enriched shareholders with 50 kobo for every one ordinary share of 50 kobo.

Structural deficiency in Nigeria’s budgeting system assailing economic plans, says Alufohai

Agele Alufohai is the President of the Nigerian Institute of Quantity Surveyors who holds the belief that the competitiveness in Nigeria’s economic structure is currently being undermined by mediocrity and corruption. In this interview with Business Editor, ADE OGIDAN, he prescribed options capable of bailing the country out of the quagmire. Excerpts:
HOW would you assess the practice of quality surveying in the country today?

Agele Alufohai

My name is A. Alufohai. Today, we have very capable quantity surveyors handling the practice in the country. Quantity survey has grown tremendously from what it used to be decades ago. What is gratifying is that the quantity survey business in Nigeria is commendable. In the 60s to the 80s, quantity surveying fared considering other fields where you still have the domination of foreign firms. This is because of our hardwork and drive in terms of skills and capacity building both in Nigeria and Abroad.

What do you have to say about collaborations between Nigerian firms and foreign consortium?
Neigbouring countries and South Africa are seeking reciprocity in terms of issuance of certificates so that foreign firms can come and practice and are well acceptable in Africa with many Nigerians. Africans have not relented in their quest to obtain Nigerian certificates in order to make them practice here in the country. Nigerians abroad also go the extra mile to obtain international certifications, especially that of the Royal Institution of Chartered Surveyors and that has also been our strength. The emphasis is the background, knowledge that we acquired there.

Nigeria retires matured bonds, plans to curb rising local debt

Dr. Ngozi Okonjo-Iweala

THERE were indications that the nation’s rising debt profile may have raised serious concerns, as plans are now underway to reduce projected borrowing, while matured bonds are retired.

Specifically, Nigeria retired matured bonds worth N75 billion, which matured in February and unfolded plans to cut domestic borrowing to N500 billion ($3.1 billion) in 2014, as part of a move to reduce growing debt.

The Finance Minister and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, who made the disclosure in an e-mailed statement to Bloomberg at the weekend, said this year’s local borrowing target of N577 billion is expected to decrease next year.

She said that this was part of the strategies Africa’s biggest oil producer is using to retreat from the height reached in 2010, when it exceeded a target of N867.5 billion and sold N1.1 trillion of bonds, adding that the country will continue to do so to reduce debt.

SA losing to Kenya in tech race

South Africa appears to be losing its status as the preferred investment destination on the continent for international technology companies. By Duncan McLeod.

Duncan McLeod

South Africa appears to be losing its status as the preferred investment destination on the continent for international technology companies. That honour, increasingly, is going to Kenya, which may be on the cusp of a technology-fuelled era of economic growth.

When apartheid ended in 1994, there was a flood of investment into South Africa by international technology companies. Microsoft, IBM, Intel, Motorola, Xerox, Hewlett-Packard: they all poured millions into establishing local offices to serve not only South Africa but often markets across Southern Africa and even sub-Saharan Africa. The view was that South Africa was the gateway to the continent.

Twenty years later, and perceptions are shifting.
In South Africa, economic growth has flat-lined. In the technology space, a weak policy making and regulatory environment where fast and smart decision making just doesn’t happen, coupled with a disastrous education system that appears incapable of giving youngsters a solid grounding in foundational subjects such as mathematics and science, are undermining prospects.

Hope of Bumper Half-Year Results Spurs Rush for Banks’ Stocks

As investors await the release of the 2013 half-year unaudited results of quoted banks, investigations have revealed an increased appetite for bank stocks in the nation’s capital market.

The popularity of banks’ equities was also attributed to the impressive 2012 results of banks, which investors regarded as one major proof of the recovery of the banks after the 2008 fiasco.

 

THISDAY checks showed that the increase in share prices of banks is largely driven by the increased demand for banks stocks by institutional investors based on the half-year dividend history of some of the affected banks.

 

An analysis of the market performance in the last five months showed that chief among the banks, which performed creditably, are GTBank Plc and Access Bank Plc. The two stocks witnessed tremendous price appreciations in recent times.

Microsoft rolls out white space Internet in Africa

Africa hides a huge technological potential that, with support from the private sector and cooperation between African regions, can transform the continent into a more competitive player in the global market, concluded speakers at the introduction of Microsoft 4Afrika Initiative in Brussels on 5 June.
The project was launched in February aiming to improve Africa's competitiveness worldwide, by focusing in three areas: world-class skills, access and innovation.





Credit: Microsoft 4Afrika



Fernando de Sousa, General Manager for Africa Initiatives at Microsoft, explained that by 2018 Africa will have a workforce of 500 million people. A big part of them will probably be entrepreneurs and will come up with new ideas, which can be turn into real projects and businesses if they have access to the necessary tools.

Microsoft's 4Afrika facilitates online and offline educational platforms, gives access to technology and cloud services, and works together with African entrepreneurs who want to innovate in their country of origin.