GTBank Releases Q1 2021 Unaudited Results, Reports Profit Before Tax Of N53.7Bn

Esan Bolaji
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GTBank Releases Q1 2021 Unaudited Results, Reports Profit Before Tax Of N53.7Bn

Guaranty Trust Bank (GTBank) Plc has released its unaudited Financial Results for the period ended March 31, 2021, to the Nigerian and London Stock Exchanges.

A review of the result shows a resilient performance across all key financial metrics in the face of the unprecedented macroeconomic challenges, reflecting the quality of past decisions and reaffirming its position as one of the best managed financial institutions in Africa.

GTBank Plans Kenyan Acquisition Brandspurng
Photographer: Issouf Sanogo/AFP/Getty Images

The Group reported Profit before tax of ₦53.7billion, representing a drop of 7.8% over ₦58.2billion recorded in the corresponding period of March 2020. Deposit Liabilities increased by 3.0% from ₦3.611trillion in December 2020 to ₦3.717trillion in March 2021, whilst the Group’s Loan book (Net) dipped by 1.4% from ₦1.663trillion recorded as at December 2020 to ₦1.639trillion in March 2021.

GTBank’s Balance sheet remained well structured and diversified with Total assets and Shareholders’ Funds closing at ₦4.993trillion and ₦837.2billion respectively.

Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 26.1%, while Asset quality was sustained as NPL ratio and Cost of Risk (COR) closed at 6.1% (Bank: 5.6%) and 0.11% (Bank: 0.02%) in March 2021 from 6.0% (Bank: 5.9%) and 0.08% (Bank: 0.01%) in March 2020 respectively.

Commenting on the financial results, the Managing Director/CEO of Guaranty Trust Bank plc, Mr. Segun Agbaje, said;

“We have started off the 2021 financial year on a fair footing, and our first-quarter results demonstrate our ability to continue delivering strong and sustainable returns, despite the macroeconomic uncertainties that persist in our business environment. This is a reflection of the resilience of our franchise, our prudent approach to risk management and the efficacy of our digital-first customer-centric business strategy.”

He further stated that;

“Looking forward, we are optimistic about the long-term value that we will continue to create as an organization. We strongly believe that our new growth strategy, together with the enduring loyalty of our customers, the hard work and dedication of our staff and the unwavering support we continue to enjoy from our shareholders, will enable us to drive and deliver best-in-class financial solutions for people, businesses and communities across Africa and beyond.”

Guaranty Trust Bank plc continues to post one of the best metrics in the Nigerian Banking industry in terms of all Financial Ratios i.e. Return on Equity (ROAE) of 26.0%, Return on Assets (ROAA) of 4.3%, Full Impact Capital Adequacy Ratio (CAR) of 26.1% and Cost to Income ratio of 42.6%.

Renowned for its forward-thinking approach to financial services and customer engagement, GTBank was recently ranked Africa’s Most Admired Finance Brand in the 10th-anniversary rankings of Brand Africa 100: Africa’s Best Brands, the pre-eminent survey and ranking of the Top 100 admired brands in Africa.

The Bank was also awarded the Best Bank in Nigeria by Euromoney Magazine for a record-extending tenth time and the Euromoney Excellence in Leadership Africa Award for its swift reaction in responding to the Covid-19 crisis and for addressing the impact of the pandemic on its customers and communities.

Average Price of 1kg of Yam Tuber Increased by 18.77% in March 2021 – NBS

Esan Bolaji
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Average Price of 1kg of Yam Tuber Increased by 18.77% in March 2021 – NBS

Prices of selected food items including eggs, tomatoes, yam, rice increased year-on-year in February data from the National Bureau of Statistics (NBS) have shown.

The NBS in its selected food price watch data for March 2021 reflected that the average price of 1 dozen Agric eggs medium size increased year-on-year by 13.73% and month-on-month by 1.19% to N524.47 in March 2021 from N518.30 in February 2021 while the average price of a piece of Agric eggs medium size (the price of one) increased year-on-year by 21.39% and month-on-month by 2.29% to N48.43 in March 2021 from N47.35 in February 2021.

yam brandspur

According to NBS, the average price of 1kg of tomato increased year-on-year by 4.75% and decreased month-on-month by -0.64% to N267.45 in March 2021 from N269.18 in February 2021.

Also, the average price of 1kg of rice (imported high quality sold loose) increased year-on-year by 24.06% and month-on-month by 1.27% to N544.21 in March 2021 from N537.37 in February 2021.

Similarly, the average price of 1kg of yam tuber increased year-on-year by 18.77% and month on month by 0.82% to N244.82 in March 2021 from N242.82 in February 2021.

Motorcycle “Okada” Commuters Paid More (102.46%) in March 2021 – NBS

Esan Bolaji
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Motorcycle “Okada” Commuters Paid More (102.46%) in March 2021 – NBS

According to the National Bureau of Statistics (NBS) report for the month of March 2021 on transport watch, the average fare paid by commuters for journey by motorcycle (Okada) per drop increased by 1.76% month-on-month and by 102.46% year-on-year to N271.44 in March 2021 from N266.74 in February 2021.

Further analysis by Brand Spur revealed that states with the highest journey fare by motorcycle per drop were:

  • Rivers – N420.35
  • Taraba – N420.15
  • Yobe – N420.10
Motorcycle “Okada” Commuters Paid More in February 2021 - NBS Brandspurng
Photo by Tomsadventures

While states with the lowest journey fare by motorcycle per drop were:

  • Adamawa – N90.43
  • Katsina – N147.64
  • Niger – N159.20

Bus Transport Fare

The average fare paid by commuters for bus journey within the city increased by 4.42% month-on-month and by 82.50% year-on-year to N377.27 in March 2021 from N361.31 in February 2021.

  • States with the highest bus journey fare within the city were Zamfara (N618.23), Bauchi (N597.14) and Ekiti (N500.15)
  • States with the lowest bus journey fare within the city were Oyo (N197.55), Abia (N209.87) and Borno (N258.14).

The average fare paid by commuters for bus journey intercity increased by 1.62% month-on-month and by 42.58% year-on-year to N2,411.29 in March 2021 from N2,372.87 in February 2021.

  • States with the highest bus journey fare intercity were Abuja FCT (N4,576.28), Lagos (N3,425.18) and Sokoto (N3,380.20)
  • States with the lowest bus journey fare within the city were Bayelsa (N1,700.19), Enugu (N1,720.45) and Bauchi (N1,725.35).

Air Transport Fare

Average fare paid by air passengers for specified routes single journey increased by 0.10% month-on-month and by 18.71% year-on-year to N36,495.41 in March 2021 from N36,458.11 in February 2021.

  • States with the highest air fare were Anambra/Lagos (N38,600.00), Delta/Jigawa (N38,500.00), Bauchi (N38,450.00)
  • States with the lowest airfare were Akwa-Ibom (N32,700.00), Sokoto (N33,200.00), and Katsina (N35,150.00).

The average fare paid by passengers for water way passenger transport increased by 1.81% month-on-month and by 43.52% year-on-year to N808.38 in March 2021 from N794.02 in February 2021.

  • States with the highest fare by water way passenger transport were Bayelsa (N2,300.80), Delta (N2,300.60) and Rivers (N2,285.67)
  • States with the lowest fare by water way passenger transport were Borno (N250.30), Gombe (N320.15) and Abuja FCT (N350.79).

WaterWay Transport Fare

The average fare paid by passengers for waterway passenger transport increased by 1.81% month-on-month and by 43.52% year-on-year to N808.38 in March 2021 from N794.02 in February 2021.

  • States with the highest fare by waterway passenger transport were Bayelsa (N2,300.80), Delta (N2,300.60), and Rivers (N2,285.67).
  • States with the lowest fare by water way passenger transport were Borno (N250.30), Gombe (N320.15), and Abuja (N350.79).

Nigerian Breweries Q4 2020 Results Review: Cost Pressures Weaken Fundamentals

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Nigerian Breweries Q4 2020 Results Review: Cost Pressures Weaken Fundamentals

…4% Cut To Our EPS Forecasts Over The ’21-22f Period

We have cut our EPS forecasts over the ’21-22f period by 4% for Nigerian Breweries (NB) after a weaker-than-expected set of Q4 ’20 results. We now have a new price target of NGN45.3, down by around 9%. Our forecasts reflect the potential impact of rising input prices and fx devaluation on raw materials. We maintain our Underperform rating on NB.

On fundamentals, we expect the average price of NB’s portfolio to be higher in ’21f after management increased prices in March ’21.

We believe further price increases are necessary in ’21 to offset successive years of muted prices. We also expect volumes to rise (+3.0% y/y) due to noticeable improving demand in the premium segment (especially Heineken and Tiger). We consequently project sales of N352.4bn in ’21f, rising by 4.5% y/y.

We would also be closely watching for customer adoption of two products launched by NB in 2020: Desperadoes (tequila infused beer) and Climax (energy drink). We raised our cost of sales forecast to N225.5bn, implying a contraction of 550bps to our gross margin forecast to 36% from a prior estimate of 42%. This follows the significant decline in gross margin to 28% in Q4’20, down -1226bps y/y.

Further down the P&L, we expect interest expense to decline by -23.2% y/y to 14.0bn (-11.8% vs our prior forecast) as prior CPs issued in 2020 mature (NB issued multiple CPs to shore up working capital and refinance short term debts in 2020). We think NB’s CP issuances will be less aggressive in 2021, considering the change in the dynamics of Nigeria’s fixed income market, amidst rising yields. Based on this, ’21f PBT is forecast at NGN18.8bn (+62% y/y and -9.5% vs. prior forecast) while PAT is estimated at NGN12.8bn (-12.1% against prior forecast).

This implies an EPS of NGN1.53 (+78.7% y/y, but a -12.2% cut from prior EPS forecast). We see room for readjustments in our estimates, on the condition that NB delivers a stellar set of operating results in Q1 ’21. At current levels, NB is trading on a ’21f P/E of 32.8x (global average of 23.4x) and EV/EBITDA of 6.7x (vs. global average of 19.2x). Year-to-date, NB shares have shed -10.5% vs. the ASI’s -3.5%. 

Cost pressures weigh on EPS in Q4 ’20

NB’s sales grew by +18.0% y/y to NGN103.0bn (vs. our N89.3bn estimate). However, a 42.1% y/y increase in cost of sales (to NGN74.3bn) and 67.1% y/y increase in interest expenses (to NGN6.5bn) led to an EPS of NGN0.05 (vs N0.48 in Q4 ’19). NB has announced a final dividend of 69kobo. Shareholders could opt to receive shares (scrip dividend) in place of cash. This will result in an increase in shares outstanding. However, on an assumption that all shareholders subscribe to the scrip dividend, NB could save NGN5.5bn in cash which could be channeled to capex and/or working capital needs. NB’s AGM is scheduled for 22 April 2021.

Samsung Named No.1 Global TV Manufacturer for 15 Consecutive Years

Esan Bolaji
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Samsung Named No.1 Global TV Manufacturer for 15 Consecutive Years

New industry report affirms 15 years of industry-leading innovation, positioning Samsung at forefront of the TV industry

20 April 2021 – Samsung has topped the global TV market for the 15th consecutive year, according to the market research firm, Omdia. Newly released data published on February 23 notes that Samsung recorded 31.9% in global TV market share by revenue in Q4 2020 and retained the largest annual category market share by revenue in 2020, at 31.9%.

Samsung Named No.1 Global TV Manufacturer for 15 Consecutive Years Brandspurng

Samsung’s growth across the Visual Display Business reflects a commitment to the most premium at-home viewing experiences, coupled with the fast-growing QLED portfolio, category leadership in the ultra-large screen segment over 75-inches, the introduction and expansion of a Lifestyle TV portfolio, and a series of industry, category and product “firsts” made possible thanks to Samsung’s constant drive for innovation.

“Consumers use screens every day to entertain, connect with loved ones, work, exercise from home and do much more. And we have seen how different lifestyles and routines have not only evolved but converged,” said Nivash Ramsern, Head: Visual Display at Samsung South Africa.

“We continue to be incredibly humbled by the trust placed in our vision and products; it is what drives our relentless pursuit to deliver cutting-edge innovation and a best-in-class screen experience that meets the needs of the modern-day consumer.”

Looking back over the last 15 years, Samsung’s innovation-led growth agenda has incorporated ground-breaking new technologies, while spanning multiple categories, reaching a wide range of consumers and use cases.

In 2021, Samsung expects to maintain its industry-leading market position with the introduction and expansion of core products and by incorporating proprietary technology and features across all TV line-ups. This includes Samsung’s new Neo QLED line-up along with Samsung’s MICRO LED, Lifestyle TVs and a company-wide alignment of operations through long-term sustainability programs.

Over the next few years, Samsung will also continue to invest in R&D and product development in strategic business areas to strengthen its core and emerging technology offers.

DBN Appoints New Executive Director, Non-Executive Director

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DBN Appoints New Executive Director, Non-Executive Director

The Development Bank of Nigeria (DBN), Nigeria’s primary wholesale development finance institution has announced the appointments of Mrs. Ijeoma Ozulumba and Mr. Kyari Abba Kyari as Executive Director and Independent Non-Executive Director respectively on the board of the Bank.

Chairman of the Board of Directors, Dr Shehu Yahaya who made the announcement recently noted that the appointments of Ozulumba and Kyari would further strengthen DBN’s vision to provide adequate and sustainable financing to Micro, Small, and Medium Enterprises across the country.

He maintained that the organization would continually uphold the highest standards of corporate governance, which have kept the Bank on a steady trajectory of progress.

“We are thrilled to have Ijeoma and Kyari join the Board and we look forward to them applying their knowledge, experience, and expertise in helping to deliver DBN’s core mandate as Nigeria’s primary wholesale development finance institution, providing sustainable financing to MSMEs across the nation,” Dr. Yahaya, stated.

Also, the Managing Director of the Bank, Mr. Tony Okpanachi stated that “I am particularly excited by the depth and quality that both appointees are bringing to the Board and ultimately, the institution. Together, they bring a combined reservoir of knowledge and expertise in the financial services sector that will add immense value to the Bank and significantly contribute to the Bank’s development impact.” He added.

Newly appointed Executive Director, Mrs. Ijeoma Ozulumba once served as Financial Controller at Continental Trust Bank Ltd (Now part of UBA Plc) and MBC International Bank Ltd (Now part of First Bank). She was Chief Financial Officer at FinBank Plc and Basel Risk Consultant and Finance Manager at Bank of Montreal and Scotia Bank, both in Toronto, Canada. Mrs. Ozulumba also managed corporate budgeting and management reporting for Seplat Petroleum Development Company Plc, the largest independent E&P company in Nigeria.

A graduate of the University of Benin, Nigeria, and an alumnus of the Lagos Business School, Mrs. Ozulumba is a fellow of the Institute of Chartered Accountants of Nigeria and a Certified Professional Accountant of Canada. She holds an MBA in International Business from Royal Holloway, University of London, and is a Project Management Professional. She was until her appointment the Chief Financial Officer at the Development Bank of Nigeria.

Mr. Kyari Abba Kyari, newly appointed Independent Non-Executive Director, is the Managing Director/Co-Founder of Trans Sahara Investment Corporation, a Private Equity firm based in Lagos, Nigeria.

He had an outstanding career in Engineering and Technology serving as the former Managing Director/CEO at Central Securities Clearing System Plc, Lagos and ValuCard Nigeria (Unified Payments Ltd), Lagos, respectively. He has also served as an Executive Director in charge of Information Technology at FSB International Bank Plc.

Before joining FSB International Bank Plc, he served in various roles as Manufacturing Development Engineer, Marketing Program Manager, Senior IT Consultant, and as Manager in various sectors of the Hewlett Packard Corporation in the United States of America.

Kyari Bukar was the former Chairman of the Board of Directors of the Nigerian Economic Summit Group (NESG) and currently serves on several other Boards.

He holds a bachelor’s degree in Physics from Ahmadu Bello University Zaria, Nigeria, and a master’s degree in Nuclear Engineering from Oregon State University, Corvallis, Oregon, USA.

Development Bank of Nigeria Plc is a wholesale development finance institution, established by the Federal Government of Nigeria in collaboration with multilateral development partners (The World Bank, AfDB, KfW, AFD, and EIB) to address the major financing challenges facing Micro, Small, and Medium Scale Enterprises (MSMEs) in Nigeria. DBN carries out this function by providing financial institutions, predominantly Deposit Money and Microfinance Banks with on-lending facilities.

Heineken European Volumes Slump in Q1, Premium Portfolio in Nigeria Grew By More Than 40%

Esan Bolaji
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Heineken European Volumes Slump in Q1, Premium Portfolio in Nigeria Grew By More Than 40%

Heineken N.V. publishes its trading update today for the first quarter of 2021. The Heineken® brand had a strong performance, well ahead of the overall market, growing 12.1% in the quarter.

The world’s second-largest beer maker – and owner of brands such as Tiger, Cruzcampo and Amstel stated that volume grew double-digits in more than 40 markets, including Brazil, South Africa, China, Vietnam, Nigeria, Colombia, Argentina, France, Poland and Laos.

Heineken® 0.0 grew double-digits with strong momentum in Brazil, Mexico and the USA. Heineken® 0.0 is now available in 94 markets.

people-are-drinking-less-booze--so-heineken-is-launching-a-00-beer

The brewer reported that the premium volume outperformed growth in the low-teens.

Africa, Middle East & Eastern Europe

  • Beer volume increased organically by 9.9% with most markets contributing, with a particularly strong performance in Nigeria and South Africa. Our premium portfolio grew by double-digits, driven by Heineken®.
  • In Nigeria, total volume grew in the mid-teens, held back by supply constraints. The premium portfolio grew by more than forty percent, led by Heineken® and Tiger. The low- and non-alcoholic portfolio grew more than thirty percent, led by Maltina. Maltina is growing, reinforcing its credentials with the launch of the two new flavours to appeal to the dynamic taste of Nigerians.
  • In Nigeria, Heineken signed an agreement with the Government of Ogun State to carry out water balancing through reforestation at the Olokemeji Forest.

Insider Dealing: Heineken buys more stakes in Nigerian Breweries Plc

  • In South Africa, total volume grew in the high twenties, benefiting from low end-year stocks and the increased output of our Sedibeng brewery after completion of the expansion projects. Alcohol bans were in place during January and over Easter weekend.
  • In Russia, beer volume increased in the mid-teens following destocking last year. The premium portfolio grew in the mid-thirties, led by Dr Diesel.
  • In Ethiopia, beer volume grew by a mid-single-digit, ahead of the market, led by the strong double-digit growth of our premium portfolio, mainly Bedele Special.
  • In Egypt, total volume declined in the high-teens, driven by significantly lower international tourism and a recent price increase on non-alcoholic beverages.

On 19 April the brand launched the latest edition of its #SocialiseResponsibly campaign ‘WE’LL MEET AGAIN’. The campaign celebrates people’s resilience and creativity over the last year and highlights how people found inventive ways to keep the spirit of ‘going out’ alive from the safety of their own homes.

Europe

  • Beer volume declined organically by 9.7%, driven by a decline of around two thirds in the on-trade as lockdowns were in place throughout the entire quarter. The off-trade grew in the low teens, with continued market share momentum in most markets. Third-party volume declined by 60.7% as wholesale operations continued to be impacted by outlet closures. The premium portfolio continued to outperform in the off-trade.
  • In the UK, total volume was down around thirty percent due to on-trade volume close to zero. The off-trade grew ahead of the market in the low-thirties, driven by Heineken®, Strongbow, and Birra Moretti. Pub gardens began to reopen in mid-April.
  • In France, beer volume increased by a low-single-digit. The growth in the off-trade was ahead of the market and more than offset the decline of around ninety percent in the on-trade. The premium portfolio grew by a high-single-digit driven by Desperados.
  • In Spain, beer volume declined in the low-teens, driven by a decline in the on-trade in the high-twenties. The off-trade grew by a mid-single-digit, ahead of the market, led by Heineken®, El Águila and Desperados.
  • In Italy, beer volume increased by a mid-single-digit, with growth in the low-teens in the off-trade more than offsetting a decline in the mid-teens in the on-trade. The premium portfolio grew in the low-teens, driven by the strong performance of Ichnusa and Messina.
  • In Poland, beer volume declined by a high-single-digit, driven by the economic segment. The premium portfolio grew by double-digits, driven by the strong growth of Heineken® and Desperados.
  • In the Netherlands, beer volume was down in the low-twenties as the growth in the off-trade only partially offset the over eighty percent decline in on-trade volume. We launched Birra Moretti in March.
  • Beerwulf, our direct-to-consumer platform in Europe, continued its strong momentum and more than doubled its revenue in the quarter.
  • On 15 March 2021, HEINEKEN announced the launch of Pure Piraña in Europe. The hard seltzer will be available soon in Austria, Ireland, the Netherlands, Portugal and Spain, with other markets joining this year.

EVERGREEN HIGHLIGHTS

On 10 February 2021, we introduced our new company strategy EverGreen. EverGreen builds on our unique strengths to ensure we emerge stronger from the COVID-19 crisis, deliver superior and profitable growth in a fast-changing world, with consumers and customers at the forefront of everything we do.

In addition to the relevant developments on the growth component of EverGreen included in our volume performance, further relevant highlights of EverGreen are included below.

We have started to deploy our productivity improvement programme. In particular, the organisational redesign of the head office became effective on 1 April this year. The programme will continuously develop productivity initiatives and cultivate a cost-conscious culture.

We reached an important milestone in our digital transformation. In April we executed the first transactions on our new standardised transactional finance backbone for Europe in two operating companies. The roll-out to the rest of Europe will continue until the end of 2022.

As part of EverGreen, we are raising the bar with our Brew a Better World 2030 ambitions on environmental sustainability, social sustainability and responsible consumption of alcohol.

For example, we announced a new ambition to decarbonise our own production by 2030 and a full value chain by 2040. All our production sites will become carbon neutral by maximising energy efficiency and renewable energy use by 2030. For more details, please refer to our press release of 15 April 2021. This is the first in a series of refreshed Brew a Better World 2030 ambitions, with more to come shortly.

REPORTED NET PROFIT

The reported net profit for the first three months of 2021 was €168 million (2020: €94 million; 2019: €299 million). The effect from lower on-trade volume in Europe was more than offset by the performance of other regions and continued cost mitigation efforts.

BUSINESS OUTLOOK

The outlook statements shared on 10 February 2021 remain unchanged. Our business continues to be significantly impacted by the consequences of the COVID-19 pandemic. We expect market conditions to gradually improve into the second part of the year, depending on the roll-out of vaccines.

Our highest priority throughout the COVID-19 crisis has been and continues to be the health and safety of our people. Our teams have demonstrated great resilience and agility as the crisis prolongs and recovery levels vary market-to-market. We continue to support our employees, customers, suppliers and communities most impacted by the pandemic. For example, in the UK, we continue to support our customers financially and waived €19 million in rental payments last quarter. In Brazil, we joined the “Salvando Vidas” match-funding initiative of the Development Bank of Brazil (BNDES), to invest in 4 oxygen plants and aid more than 40 philanthropic hospitals with medical supplies in the fight against COVID-19.

In March 2021 we began to lap the first round of severe lockdowns in March 2020. Beer volume in the first quarter was in line with last year, organically (2.1% below the first quarter of 2019). We delivered strong growth in the Africa, Middle East & Eastern Europe and Asia Pacific regions and modest growth in the Americas, offset by the decline in Europe where the on-trade remained largely closed throughout the quarter. At the start of April less than 30% of the on-trade in Europe was operating.

We are bringing our EverGreen balanced growth strategy to life across the business, focusing on delivering superior and profitable top-line growth. We are amplifying our strong premium position to capture the growing opportunity of premiumisation. We are expanding our portfolio by stretching and moving beyond beer into products such as ciders, hard seltzers and other beverages to better serve consumers. We are shaping and strengthening our digital route to consumer. Throughout our volume update below we share some of the most relevant developments.

Do’s And Don’ts For Successful Online Trading

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Do’s And Don’ts For Successful Online Trading

Dany Mawas, Regional Director at INFINOX Capital says there are several factors that are required for successful online trading, and this is especially important for beginner traders to take note of.

Do’s And Don'ts For Successful Online Trading-Brand Spur Nigeria
Dany Mawas, Regional Director at Infinox -Brand Spur NIgeria

“Trading is increasing in popularity in Africa, with more people spending time online and seeking additional incomes as a result of COVID-19, however many don’t know where to begin,” he says.

In order to assist these potential traders, Mawas points out some key do’s and don’ts that beginner trader should consider starting successfully trading:

Do have a game plan: Without a decisive game plan in place, trading can be considered exceptionally high risk and more of a gamble instead of a smart investment strategy. It is important to research and develop an approach that works based on the financial markets. For example, traders should consider rules that must be satisfied before entering into a trade such as ‘is the trade following the same trajectory as the greater market’, amongst others.

Do join a community: Another way to develop a strategy is to join a community trading app, such as IX Social. This allows traders to access key financial markets while sharing knowledge, trades and experiences with like-minded traders. Essential for beginners, IX Social allows traders to auto-copy top traders, with options to source the most followed, best live trades, most copied trades, and the most profitable trades – all instrumental in building trading acumen.

Do your research, and then do some more: The internet is full of valuable information available at the touch of a button. As such, online traders should always do their due diligence when it comes to the broker they plan to partner with, including the markets they plan to invest in.

Don’t fall victim to scams: Trading scams have been around since the advent of the practice, and while the schemes may be evolving, beginner traders should equip themselves with adequate knowledge and education before entering the market. Adding to this, traders should only partner with reputable brokers that offer a variety of investment opportunities, coupled with complying and being recognised by legitimate and prominent regulatory authorities. It’s also important to note that brokers with a physical presence in the countries they operate in can offer an additional layer of client service and assistance to traders.

Do set a budget: As with the majority of investments, online trading comes with a high risk of losing money due to poor investment choices. Unless a trader has an endless supply of funds, they should instil a budget they can afford to lose without it impacting their direct livelihoods.

Don’t put your eggs in one basket: It’s important to have a well-diversified portfolio to take advantage of any market condition. Those looking to diversify their portfolios can start by investing in asset classes that have low or negative correlations so that if one trade falls the other can potentially counteract it. Furthermore, ETFs and mutual funds are easy ways to select asset classes that will diversify your portfolio.

Don’t let emotions take over: While many beginner traders fall privy to this, trading based on an emotional impulse often results in traders buying and selling at inopportune times. One needs to understand the motivations behind emotional trading to mitigate the risk of making poor trading decisions.

“While trading offers great benefits, it is vital for traders to follow a set of guidelines and helps bring consistency to their strategy. This will ensure their longevity, and prosperity, in the game,” concludes Mawas.

Airtel Africa Signs USD500M Loan Facility

Esan Bolaji
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Airtel Africa Signs USD500M Loan Facility

Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, today announces the successful signing of a new $500m loan facility with a group of relationship banks.

The new committed facility consists of a combination of a revolving credit facility and term loans with tenor of up to 4 years. The facility will be used to partially refinance the Group’s 750m Euro-denominated bond (c.$880m) due 20 May 2021. The balance of the Euro-denominated bond will be repaid with existing Group cash to reduce gross debt and associated interest costs.

The new loan facility further strengthens the core liquidity of the Group. It also has prepayment flexibilities that will allow the Group to optimise the efficiency of its capital structure with the free cash flows and cash receipts anticipated over the next 12 months following the recent announcements related to tower sales and mobile money minority investments.

The banks which participated in the facility include a diverse group of existing global relationship banks, Bank of America, BNP Paribas, Citibank, HSBC, J.P. Morgan, Standard Chartered Bank and two Indian relationship banks, Axis Bank and Kotak Mahindra Bank.

Mondelēz And Olam Food Ingredients Announce Partnership to Create World’s Largest Sustainable Commercial Cocoa Farm

Esan Bolaji
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Mondelēz And Olam Food Ingredients Announce Partnership to Create World’s Largest Sustainable Commercial Cocoa Farm

  • Leading chocolate maker and largest cocoa supplier aim to strengthen sustainable cocoa sourcing in Indonesia

  • 2,000-hectare cocoa farming model of the future to restore environmental productivity, improve farmer livelihoods and empower local communities

Mondelēz International, Inc., a global leader in snacking, and Olam Food Ingredients (OFI), a leading supplier of cocoa beans and cocoa ingredients, have today announced a new collaboration in Indonesia to create the world’s single largest sustainable commercial cocoa farm.

Olam Cocoa launches new business for professional chefs, bakers and pâtissiers

The model builds on Mondelēz International’s experience with the company’s signature sustainable sourcing program, Cocoa Life, and OFI’s ambition for sustainable cocoa, Cocoa Compass, to test a scalable approach for the future of commercial cocoa farming.

From sensors in fields to irrigation systems, the project will use advanced climate-smart and plant science technology – rarely used to grow cocoa at this scale – as innovations included in this 2,000-hectare cocoa farm on Seram, the largest island in Maluku province in Indonesia.

The model tests a modernised and professional blueprint for best practice cocoa farming, optimal land usage and farming community planning which will be explored as a potential model for replication across the region.

Demand for cocoa is growing across Asia, which is set to become the second-largest consuming region of cocoa ingredients in the world. Indonesia is a key cocoa-producing country in the region, but farmers have struggled with rising temperatures, low yields and crop disease.

Combining their respective expertise in cocoa-growing research and development, sustainable cocoa farm management, and good agricultural practices, Mondelēz International and OFI will tackle these problems by improving the livelihoods of partner cocoa farmers, empowering communities and restoring the environmental productivity of a previously deforested landscape.

The partnership aims to deliver:

  • The creation of 700 jobs for local residents in an area that has limited income opportunities due to its isolated location. Nearly half of these employment opportunities will go to women.
  • 2,000 hectares of previously deforested brownfield land, which will be planted with cocoa, shade trees, forest and fruit trees to promote biodiversity and carbon capture. More than 1,080 hectares have already been planted across the total plantation area of 3,380 hectares.
  • An area of 47 hectares has been identified as a High Conservation Value forest and is being fully protected as a vital habitat for flora and fauna.
  • A seedling nursery that can grow up to one million high-yielding cocoa seedlings each year.
  • Access to healthcare and education for all employees and their families, as well as housing, electricity, water, daycare for the 200 families who live on site.

Quentin Roach, SVP Supply Chain & Chief Procurement Officer, Mondelēz International comments:

“As one of the world’s leading chocolate makers, we’re on a mission to make a cocoa right and to secure a sustainable future for an ingredient essential to our business. With nine years of measurable impact demonstrating improved farmer’s livelihoods and reduced environmental impact of cocoa farming through our signature sustainable sourcing program, Cocoa Life, we’re excited to leverage our know-how in a collaborative approach to sustainable raw material sourcing with a geographically customized solution.

Creating opportunities to innovate, in partnership with our suppliers, and exploring the ability to scale high-yielding, forest-positive, income-generating approaches to commercial cocoa farming on the single largest farm of its kind offers attractive potential and is an important step forward on our journey to lead the future of a sustainable and resilient cocoa supply.

This initiative sits alongside Mondelēz International’s existing Cocoa Life program in Indonesia and our cocoa crop science technical centre in Pasuruan, established to support sustainable cocoa farming practices and drive positive change for farmers and communities in the region.”

Gerard A. Manley, CEO of OFI’s Cocoa Business, comments:

“This could be truly game-changing for the future of cocoa in Indonesia and beyond. We would like to thank the regional and national governments of Indonesia for their support. Ever since we launched our first sustainability program in the country more than 16 years ago, we have been committed to supporting Indonesian cocoa farmers while also protecting the environment.

We reaffirmed this commitment through our acquisition in 2019 of the country’s largest cocoa processor, BT Cocoa, to connect the full supply chain from cocoa beans to cocoa ingredients. We’re now combining our expertise and knowledge with Mondelēz International, a steward of some of the world’s most iconic snack and chocolate brands.

Having just announced the achievement of our 2020 sustainability goals, we believe this partnership is a further significant step towards our Cocoa Compass ambition to have a positive impact on the future of cocoa.”

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