Pressure On Naira Could Result In Introduction Of Higher Denomination

Brand Spur
-
0
Pressure On Naira Could Result In Introduction Of Higher Denomination

Persistent Naira weakness could result in a fresh introduction of a higher denomination in the coming years, says Ibukunoluwa Omoyeni, Economist at Vetiva Capital.

Brand Spur Nigeria reports that Omoyeni stated this while reacting to MarketForces Africa’s questions on the performance of the local currency in the foreign exchange market.

For most companies in the fast-moving consumers goods, persistent depreciation of the Nigerian naira has continued to deflating performance as operators booked losses. This has also raise foreign currency risks for borrowers while banks with net dollar positions reflate earnings performances.

Weak naira has made importations for productive purposes a burden for the manufacturing sector, rising production costs, sometimes, twice the rate of the local currency depreciation.

Since 2016, Naira has faced several adjustments at the official rate. Six years ago, the Central Bank (CBN) official exchange rate was N197 as against the ongoing autonomous foreign exchange fixing rate of N410, while the parallel market rate print at N520.

Grappling with naira weakness, steep inflation rate, companies have raised prices on several occasions yet manufacturing sector earnings performance remains unimpressive, according to figures reported in the first half of 2021 financial statements.

Analysts at CardinalStone said in the second half of 2021 report that the apex bank’s decision to reduce the number of foreign exchange windows in the country is likely to be positive despite perceived FX illiquidity.

Over the next few quarters, CardinalStone analysts said their base case foreign exchange outlook is less pessimistic (3.3% depreciation to N425) than was initially feared.

“This view is premised on our expectation of an improvement in the current account (CA) deficit position, alongside the country’s Eurobond issuance plans, which could potentially improve the CBN’s ability to defend the currency and boost the financial account”.

The firm recognised that CBN has employed a plethora of unorthodox measures to defend the naira in recent times, such as the creation of multiple foreign exchange markets, restriction of access to FX for the importation of select items, and limitation of FX supply since the start of the pandemic.

Recall the monetary authority took a step towards FX rate unification in May 2021 after its erstwhile official rate was replaced by the relatively more transparent I&E FX rate.

However, analysts at CardinalStone said it appears that this latest drive towards currency unification, alongside higher oil prices, is yet to translate to tangible currency gains, with complaints of FX shortages persisting.

“To this point, we note that several manufacturers and investors have continued to resort to the parallel market to meet their FX needs irrespective of about 23.0% premium over the rate attainable at the I&E window”.

CardinalStone said the FX outlook appears less pessimistic in the second half on the back of the expected improvement in the current account deficit position, $6.18 billion Eurobond raise and a possible clampdown on speculative FX demand after robust GDP rebound.

In May, the CBN announced its decision to adopt the NAFEX rate as the official exchange rate, the decision was followed by weeks of speculation that the Naira could be floated, especially when the de-facto peg was replaced with a note that the official exchange rate was determined by market forces on the apex bank’s website.

“The eventual adoption of the NAFEX rate as the official exchange rate did not come as a surprise, given the Federal Government’s earlier stance on the NAFEX rate as a benchmark for carrying out official transactions”, Vetiva Capital said in a report.

Analysts noted that initially flaunted as a means of de-emphasizing the official exchange rate, data from the CBN reveals that the closing NAFEX rate was adopted as the official exchange rate, signaling both a quasi-currency adjustment and a change in the FX regime, although the CBN has emphasized it is still adopting a managed float scheme.

“We believe the weakness in the parallel market will persist irrespective of the anticipated about N9 billion inflow due to the discontinuation of FX sales to BDCs”, Vetiva Omoyeni told MarketForces Africa.

He also added that while the inflow may influence an appreciation in the NAFEX rate, the exclusion of BDCs from the parallel market erases the positive impact on the parallel market.

“Unless the CBN adopts an alternative arrangement or relaxes the ban on BDCs, the parallel market may remain under severe pressure.

“However, we do not see scope for significant depreciation in the parallel market due to historical concerns, including a possible policy reversal by the CBN, which could see speculators book huge FX losses”, he explained.

Omoyeni said increased FX supply to banks may not literally lead to appreciation in the parallel market unless banks are allowed to service other needs, including the 43 items restricted from FX access.

Reacting to view about currency redenomination, Vetiva economist said this may not be the solution to the Naira’s problem. He added that attempt to make a relatively stronger Naira will be matched by commensurate adjustment in prices and wages.

“Unless structural issues around export diversification and import substitution are addressed, the currency may not benefit from other artificial measures. However, the persistent weakness of the Naira may create the need for higher denominations in the coming years”, he explained.

Can Companies Build On Their Digital Surge?

Brand Spur
-
0
Can Companies Build On Their Digital Surge?

Many businesses have boosted digital sales in the pandemic, but it will take a new commitment to speed to keep up with the digital leaders.

In mid-2020, the CEO of a Fortune 500 company was looking at the spike in the business’s digital sales and the remarkable speed of its growth.

He was pleasantly surprised by how well the digital side of the business had performed, and he complimented his digital leaders. Secure that the digital business was doing well, he turned his attention quickly to the next agenda item.

What this CEO failed to appreciate was that the improvements in digital sales had almost nothing to do with what the company had done and almost everything to do with the realities of life during the pandemic, when people were flocking to digital channels. Rather than invest more in digital capabilities or rethink his business’s strategy, he took its good fortune as validation of its existing digital posture and “business as usual.”

He is not alone. While many are justifiably proud of their enormous accomplishments during the pandemic, we have found that a false sense of their digital capabilities has settled on many companies. Digital traffic and commerce made huge leaps for almost every institution, no matter how good their digital capabilities were—so much so that laggards were able to make up some lost ground on digital leaders.

While market-leading pure plays have grown fast during COVID-19, due to capacity restraints, they have been outpaced in digital growth by Best Buy, AEON, and Tesco, respectively.1 Tellingly, according to McKinsey research, customer satisfaction scores have grown faster at traditional retailers that have stepped up.

While many digital habits are sticking, the easing of constraints where COVID has abated has led, as expected, to a return to some non-digital habits. A recent McKinsey survey suggests that while industries across countries and regions experienced an average of 20 percent growth in “fully digital” users in the six months ending April 2021, the acceleration into digital channels now seems to be leveling off in both the United States and Europe.

Can Companies Build On Their Digital Surge?

This development is likely to lead many beneficiaries of the digital surge to find themselves struggling to build on their digital wins because the slowing pace of digital adoption masks two more fundamental realities: digital is here to stay for many new customers, and the pace of change is continuing to accelerate.

Digital leaders, meanwhile, are keeping their foot on the accelerator pedal. While top economic performers are already significantly ahead of their peers in specific digital capabilities (automation, for example), they are also moving much more quickly than their peers in key business areas.

Top tech companies, for example, share test-and-learn findings across the business, reallocate digital talent, and use multiple sources of insight about customers weekly, while average performers do those tasks monthly.2

These developments underscore the importance of speed as the cornerstone of digital success, as we wrote in Fast Times. In our book, we covered 18 areas where businesses can build transformative speed into their organizations.

For this article, we highlight four of those areas that executives have continually highlighted in our conversations as having acquired particular importance during the crisis: strategy, talent, data, and technology.

Checkout The Most Well-Funded Tech Startup In Every US State

Brand Spur
-
0
Checkout The Most Well-Funded Tech Startup In Every US State

From DataRobot and Olive to Epic Games and Magic Leap, our infographic shows the top private tech company in every state, based on funding totals.

WHERE IS THIS DATA COMING FROM?

The tech boom has diffused beyond the traditional hotbeds of California, New York, and Massachusetts, spreading across the entire US.

In our latest map of the most well-funded tech startup in each state, some companies with the deepest pockets were found in North Carolina (Epic Games, $4.4B), Florida (Magic Leap, $3B), and Georgia (OneTrust, $930M). All together, the companies on this map have raised more than $40B.

Using CB Insights data, we identified the most well-funded technology startups by state based on total disclosed equity funding. The full list of startups is included below the map.

Our analysis ranks private tech companies based on total disclosed equity funding. Companies included have raised at least $1M in equity funding since January 2016. All companies on our map are VC-backed, with the exception of West Virginia.

Key takeaways from the top tech startups in the US

    • The most well-funded US tech startup is California-based e-cigarette company JUUL Labs, with a whopping $15B in disclosed equity funding. Most recently, the company raised a $700M mega-round in February 2020, earning it a $12B valuation.
    • After JUUL, the most well-funded startups on our map are North Carolina-based video game developer Epic Games ($4.4B in equity funding) and Pennsylvania-based delivery service goPuff ($3.4B).
    • Our map features 19 unicorn companies valued at $1B+, including cybersecurity company Tanium (WA, $9B valuation), healthcare-focused RPA company Olive (OH, $4B valuation), and corporate training platform Articulate (NY, $3.8B valuation).
    • New York-based Articulate is the most recently minted unicorn on our map: the online training platform hit a $3.8B valuation following its $1.5B Series A round in July 2021.
    • 7 companies on the map have raised over $1B in total disclosed equity financing: JUUL Labs, Epic Games, GoPuff, Magic Leap, Articulate, Tanium, and DataRobot. All of these companies are valued at over $1B.
    • Including the 7 startups mentioned above, 35 companies on the map have raised $100M or more in equity funding.
    • 11 of the startups on our map have raised $50M or less in equity funding. The venture capital-backed startup with the least funding on the map is Alaska’s 60Hertz Energy, which develops energy asset maintenance software.
    • The bulk of these companies (31) have raised funding in 2021; just 8 last raised prior to 2020.

Since our last update of the map in February 2021, there have been 4 exits: Maryland’s Xometry, New York’s UiPath, and Virginia’s Privia Health each made their IPO, while Oregon’s Vacasa is going public via a SPAC.

List of top-funded tech startups in the US

TOP-FUNDED US TECH STARTUPS
State Company Total Equity Funding ($M)
California JUUL Labs 15,047
North Carolina Epic Games 4,375
Pennsylvania goPuff 3,397
Florida Magic Leap 2,984
New York Articulate 1,500
Washington Tanium 1,170
Massachusetts DataRobot 1,051
Georgia OneTrust 931
New Jersey Attentive 865
Ohio Olive 850
Texas Workrise 723
Illinois Avant 684
Michigan StockX 520
Minnesota Arctic Wolf Networks 498
Utah MX Technologies 454
Virginia Mission Lane 407
Colorado DispatchHealth 403
Kansas C2FO 400
Missouri EquipmentShare 364
Nevada Sightline 353
Wisconsin Fetch Rewards 339
DC Pie Insurance 306
Oregon Dutchie 253
Nebraska Hudl 226
Connecticut Cedar Gate Technologies 220
Arizona CampusLogic 193
Vermont DealerPolicy 190
Tennessee Monogram Health 180
Maryland Immuta 160
Rhode Island Virgin Pulse 125
Indiana Greenlight Guru 124
Louisiana Ready Responders 111
Maine Tilson Technology Management 109
Arkansas One Country 100
Kentucky Climavision 100
Iowa Involta 80
Delaware Locus 79
North Dakota Bushel 77
New Mexico Descartes Labs 58
Idaho Tackle.io 56
New Hampshire Senet 48
South Carolina Commerce Guys 46
Hawaii Terraformation 35
Alabama Meazure Learning 30
Montana Submittable 28
West Virginia Skylake Wireless* 19
Oklahoma Carpay 10
Wyoming Language I/O 5.5
South Dakota Query.ai 4.6
Mississippi SchoolStatus 4
Alaska 60Hertz Energy 2

 

Why African Tech Startups Fail And How To Mitigate Risk

Brand Spur
-
0
Why African Tech Startups Fail And How To Mitigate Risk

Technological Startups in Africa are innovative about providing solutions to challenges that exist in Africa. However, with these solutions come several bottlenecks which eventually create a barrier to the survival and sustainability of the business.

There are several factors that contribute to the failure of start-ups in Africa and the ability to learn from these failures would support a new way of thinking to help mitigate these risks.

In this publication, I would be sharing risk factors from working with not less than 100 companies in the technological, FMCG, retail, agro, fashion, events, confectionary and manufacturing in providing consultancy services and some of the patterns I found led to the business failure.

  1. Huge Injection of Capital Without Traction

Generating and implementing an idea has to go through several stages of design thinking to ascertain the viability of such a product before it is released into the marketplace based on the feedback from prospective end users.

 

Due to the fact that some early stage entrepreneurs have already built a name in the ecosystem can easily make them access funding even when an idea is still just an idea that has not been properly researched but because entrepreneurs sometimes are also very emotionally attached to an idea sometimes, they can make several assumptions without considering the facts and then begin to seek capital inflow to kick-start this idea. 

Traction is important because it signifies growth and growth could be seen in the form of demand which eventually leads to cash flow. Investing in an idea is too risky and even riskier for an early-stage entrepreneur with limited experience and exposure.
In order to ensure an idea would scale, it is important to employ design thinking to limit assumptions. 

  1. Not Working With the Right Team

Not Working with the right team has huge consequences in itself. A start-up should have one core, and it is in the ability to execute with the team. Because most start-ups bootstrap at their early stage, they tend to work with whoever is available and not necessarily the skilled and competent professionals who would hit the ground running and deliver the required expectations.

I remember working in a pharmaceutical start-up where mislabeling of medications occurred because the professional involved was not aware of the procedures as a pharmacist would.

This could have been a huge mistake if it was unnoticed until it reached the retailer who did checks and found out.

The right time would limit the time a task is expected to be done. Start-ups should never play down on experience, proficiency and competence. In fact, it is necessary to develop specific in-house procedures for hiring that suits the company’s culture.

  1. Lack of Product-Market Fit

A product could be a fantastic one, but if the market is not ready, then its sustainability is questionable. A very innovative start-up that came with the idea of solving the challenges of travel is GoMyWay, this Start-up was launched in Nigeria but did not thrive.

Was the product fit for the market in terms of providing the needed solution to the already existing challenges, I would say yes, however factors such as kidnapping, assault, killings have created trust in the mind of travelers and so this traveling application that was supposed to connect a traveler with a car with another traveler going in the same direction could not survive because safety of travelers was in question? 

  1. Government Regulations

Several administrations of government have worked tirelessly to make the business environment conducive, however there are still gaps to ensure that the start-ups do not get gagged as their benefits are very key to economic development.

The recent move to create a start-up bill to ensure that the interest of start-ups can be protected is one to secure sustainability and increase interactions with regulators in such a way that regulations understand the peculiarities of these businesses and work around policies that would not see capital investments go down the ground with just a regulation.

I believe the start-up bill would create stakeholders in the overall value-chain and then ease how business is done.

There are other factors that contribute to business failure and the listed are some common ones that affect businesses based in Africa.

I however believe that as there is an ongoing conversation to create a roundtable for stakeholder’s interaction, there would soon exist synergy in the ecosystem.

 

Emmanuel Otori, the writer has worked on the GEM Project of the World Bank Bank, Conducted training for entrepreneurs and professionals at the Abuja Enterprise Agency and has over 8 years of experience of working with over 50 SMEs across Nigeria.

Access Bank Launches Anti E-Banking Fraud Campaign

Brand Spur
-
0
Access Bank Launches Anti E-Banking Fraud Campaign

As part of its continued commitment to educate and protect customers from e-banking fraud, Access Bank Plc has launched an awareness campaign aimed at sensitizing customers on measures they can take to protect themselves.

The campaign, themed ‘Banks Don’t Ask’, focuses on three key activities that account for most fraud incidents in Nigeria, phishing, SIM card fraud, ATM fraud and POS fraud.

From all indications, the rates of phishing, SIM card fraud, ATM fraud and POS fraud in the country have tripled in the past few years.

Also, the sophistication with which these activities are carried out has evolved, resulting in unsuspecting customers being highly susceptible to these criminal activities.

Access Bank Launches Anti E-Banking Fraud Campaign

Brand Spur Nigeria reports that Victor Etuokwu, ED Retail Banking stated, “In the past few years, there has been a significant increase in the rate of internet-based and technology-perpetrated fraud”.

He added “We want to ensure that our customers are not only protected but are also aware of the tactics employed by fraudsters. Access Bank will never request personal banking information such as your 16-digit card number, password, PIN, BVN, CVV, or One-Time Password (OTP). So, customers are also advised to never share this information with anyone even if they claim to be from the Bank”.

To report suspicious activities (phone calls, emails or text messages), customers can call Access Bank on 01- 2712005 or send a mail to contactcenter@accessbankplc.com.

To prevent SIM card fraud in cases of lost or stolen devices, customers can simply *901*911# from any phone deactivate their USSD profile.

Sad Day In Brand Spur As Founder And CEO, Bolaji Esan Passes On

Brand Spur
-
1
Sad Day In Brand Spur As Founder And CEO, Bolaji Esan Passes On

Bolaji Esan, the founder and Chief Executive Officer (CEO) of Brand Spur Media and Marketing Services Limited (Brand Spur Nigeria) passed away on Monday, August 23rd after a brief illness.

Bolaji Esan was a man with big dreams and it is sad to see him gone. Bolaji was driven, passionate, and committed to everything his mind was set on.

Sad Day In Brand Spur As Founder And CEO, Bolaji Esan Passes On- Brand Spur Nigeria
Brand Spur Founder And CEO, Bolaji Esan

He was easy going and he believed in doing good deeds to everyone around him. A visionary and an award-winning entrepreneur whose passion for developing businesses and talents knew no bound.

Bolaji was a firm believer in community building and the innate ability of every individual. He treated everyone with love and respect irrespective of class.

His presence would be greatly missed by his family, friends, and everyone he touched including the Brandspur team who loved his leadership style and charismatic qualities.

He is survived by his wife, daughter, siblings, and aged parents and would be greatly missed

BBNaija Update: Liquorose Emerges Head Of House Week 5

Brand Spur
-
0
BBNaija Update: Liquorose Emerges Head Of House Week 5

Liquorose emerged as the Head of House (HoH) in the fifth week of Big Brother Naija, BBNaija ‘Shine Ya Eye’.

Liquorose secured 21 points during the ‘Game of Balls’ at The Arena.

This gives her immunity from eviction and nomination this week.

Maria was the Head of House last week and was exempted from participating in the HOH game this week.

She chose Boma as her deputy but was banned from sleeping in the lounge.

Cholera Outbreak: FG To Inaugurate National Response Intervention

Brand Spur
-
0
Cholera Outbreak: FG To Inaugurate National Response Intervention

The Federal Government says it will soon inaugurate National Environmental Sanitation Response Intervention to a cholera outbreak in Kubwa, Abuja, currently the epi-center in the FCT.

The Minister of Environment, Dr. Mohammad Abubakar, disclosed this while briefing the newsmen on the cholera outbreak on Monday, in Abuja.

Abubakar said that the latest situation report from Nigeria Centre for Disease Control (NCDC) released on Aug. 10, indicated a total number of 33,661 suspected cases including 938 deaths in 22 states and FCT.

He said that the ministry in collaboration with relevant stakeholders including Environmental Health Officers (EHO’s) in the states and local government areas would embark on nationwide intervention response activities.

He also said that the ministry had activated sanitation desks in the 36 state offices of the ministry, including the FCT, adding that the effort was for effective response to the outbreak.

Cholera Outbreak: FG To Inaugurate National Response Intervention-Brand Spur Nigeria
Cholera Outbreak: FG To Inaugurate National Response Intervention-Brand Spur Nigeria

He urged the head of the desks to carry out environmental sanitation activities in their various states aimed at containing the outbreak.

“The purpose of this briefing is to sensitise the media and general public on the cholera outbreak in the country and the efforts being made by the ministry to contain the scourge.

“As you are aware, Nigeria is currently experiencing cholera outbreak in several parts of the country with reported cases of fatalities.

“The ministry had requested the EHOs in the states and local governments across the country to intensity their efforts in carrying out sanitary inspection of premises and abatement of nuisances,” he said.

According to him, the ministry with the relevant stakeholders in the states and local government areas will embark on nationwide intervention response activities.

He said that this would cover the areas such as sanitary inspection of premises/environmental health surveillance of hotspot communities.

“Sanitary inspection of schools primary and secondary in affected communities as well as training of community volunteers on safe water handling, environmental sanitation and hygiene practices.

“Also, a sanitary inspection of food business premises of affected communities advocacy, sensitization and community town hall meetings on control of open defecation practices and its health impact, among others,’’ he said.

Abubakar urged all levels of government, including the Commissioners of Environment, across the country to step up their sanitation and hygiene programmes to control and prevent further outbreaks and spread of cholera.

He, however, gave assurance that the ministry remained committed to ensuring a clean and healthy environment for all Nigerians.

According to him, this is a collective responsibility that requires concerted efforts of all and sundry.

“This is the only way we can prevent and curtail incidences of cholera outbreak and other communicable diseases. I, therefore, call on all members of the public to keep their environment clean.

“l as well, urge all media organizations to join the ministry and other stakeholders, in controlling and preventing the spread of the outbreak, by sensitising and educating the public on cholera preventive and control measures,” he said.

Omisore Foundation Commissions Borehole Project In Osun

Brand Spur
-
0
Omisore Foundation Commissions Borehole Project In Osun

Omisore Gabriel, a stalwart of the All Progressives Congress over the weekend commissioned a borehole water project to residents of Olode, Ife South, Osun State with a charge to residents to always ensure maintenance of public utility among others.

Before the arrival commissioning, elders of the community and other guests were all gathered and seated and were waiting for the arrival of Honourable Omisore Gabriel, who would cut the ribbon for the commissioning of the water project.

Omisore Foundation Commissions Borehole Project In Olode, Ife South

When the Omisore arrived at the event, the entire people stood up and welcomed him and he blessed them and the ceremony began.

Meanwhile, the news that a borehole was successfully drilled with good water gushing out to the surface was received with ecstasy. This water project is a dream come true for the people of Olode community.

Omisore Foundation Commissions Borehole Project In Olode, Ife South

Omisore Foundation Commissions Borehole Project In Olode, Ife South

 

PepsiCo Pledges To Be “Net Water Positive” By 2030

Brand Spur
-
0
PepsiCo Pledges To Be “Net Water Positive” By 2030

PepsiCo has made a pledge to become “net water positive” by 2030, as it aims to replenish more water than it uses in its operations. 

The new commitment will see the beverage giant placed among the most water-efficient food and beverage industry manufacturers that operate in high-risk watersheds.

The PepsiCo Foundation is also launching a $1 million programme with NGO and long-term partner WaterAid in a bid to bring safe water to families in sub-Sarahan Africa, expanding its 15-year $53 million+ safe water project that reaches over 20 countries and has supported over 59 million people since 2006.

“Time is running out for the world to act on water. Water is not only a critical component of our food system, it is a fundamental human right – and the lack of safe, clean water around the world is one of the most pressing issues facing our global community today,” said Jim Andrew, chief sustainability officer at PepsiCo.

PepsiCo WaterPositiveHe added: “Water scarcity is directly linked to the climate crisis, and at PepsiCo we believe a global effort to be ‘net water positive’ is essential. We’re focused not only on making sure people around the world have access to this vital resource, but ensuring that we are also prioritising water stewardship in our operations everywhere.”

To reach this goal, PepsiCo will employ “best-in-class water-use efficiency standards” covering more than 1,000 company-owned and third-party facilities. It is hoped the programme will enable the company to reduce water usage by 11 billion litres per year – a 50% reduction in the water currently at PepsiCo’s sites.

PepsiCo also hopes to adopt the Alliance for Water Stewardship Standard in all high-water risk areas where it operated by 2025.

The Foundation’s investment will help improve water infrastructure, build new water supply systems and sanitation facilities, and promote hygiene education. “It will also empower women and girls to become water, sanitation and hygiene stewards in their communities by providing them with the funding and training to maintain water access points and sanitation facilities for years to come,” a company statement said.

“We learned quickly at the onset of the pandemic that handwashing and proper hygiene were critical to slowing its spread, but for millions around the world, access to water remains a luxury. As a result, millions of lives remain in jeopardy and until we address this crisis the region will remain especially susceptible to viruses like Covid-19,” said CD Glin, VP global head of philanthropy at PepsiCo.

“Not only does this disparity in water access contribute to the severity of the pandemic, but it also affects many other developmental goals of the region, including food production, gender equality, climate resilience and poverty alleviation. We’re proud of our continued partnership with WaterAid to bring this programme to the region and are excited to be investing in the water-scarce areas that need this resource most.”

“The PepsiCo Foundation is a stalwart partner of WaterAid across three continents,” says Kelly Parsons, CEO, WaterAid America.

“They are funding critical programmes, providing flexibility to respond to the pandemic, and shouting loudly and clearly about the importance of safe water access for the billions who lack it.”

She continued: “We are proud to partner with The PepsiCo Foundation and are committed to doing all we can to support their goal of reaching 100 million people by 2030. Their aspiration helps us reach further and work harder on behalf of those in need.”

1...1,8231,8241,825...3,983Page 1,824 of 3,983