Mobile Money Accounts Grow To 1.2 Billion In 2020

Anifat Ibrahim
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Mobile Money Accounts Grow To 1.2 Billion In 2020

The GSMA has today published its annual ‘State of the Industry Report on Mobile Money’. It reveals a dramatic acceleration in mobile transactions during the COVID-19 pandemic as lockdown restrictions limited access to cash and financial institutions.

The report found that the number of registered accounts grew by 13 per cent globally in 2020 to more than 1.2 billion – double the forecast. The fastest growth was in markets where governments provided significant pandemic relief to their citizens.

Providing More Opportunities In The Formal Economy

To minimize the economic toll of COVID-19, many national governments distributed monetary support to individuals and businesses. The value of government-to-person payments quadrupled during the pandemic, with the mobile money industry working hand-in-hand with administrations and NGOs to distribute social protection and humanitarian payments quickly, securely, and efficiently to those in need.

Facilitating this type of direct income support payments is one example of how mobile money provides a financial lifeline to underserved communities. Mobile money providers have also provided in-kind support, including the distribution of personal protective equipment (PPE) and hand sanitising gel at agent counters.

“We see that mobile money is a powerful tool for expanding the financial inclusion of women in low- and middle-income countries,” said John Giusti, the GSMA’s Chief Regulatory Officer. “This year’s report, however, found that across markets women are still 33 per cent less likely than men to have a mobile money account. The GSMA and its members are committed to closing this gender gap by addressing the barriers that prevent women from accessing and using mobile financial services.”

Closing the gap requires a collaborative and concerted effort. Many providers have committed to increasing the proportion of female customers. One example of an innovative approach to this is launching micro-entrepreneur products that can be used in markets where women represent the majority of vendors and customers.

Increasing Global Financial Equality

For the first time, more than $1 billion was sent and received in the form of remittances globally every month via mobile money. Despite early fears that transactions would decline as people worldwide suffered job losses and income cuts during the pandemic, it remains clear that diasporas continue to support family and friends back home. As a result, the total value of transactions increased by 65 per cent to an annual total of $12.7 billion in 2020.

In working towards achieving the Sustainable Development Goals (SDGs), the GSMA remains committed to reducing inequalities among countries when sending money internationally. According to GSMA’s research, mobile money provides an affordable channel for connecting people to vital financial resources. The mobile money ecosystem has been strengthened by an increasing number of strategic partnerships established between money transfer organizations and mobile money providers.

Driving Regulatory Change

As the COVID-19 pandemic negatively impacted people’s lives and weakened economies, regulators responded with a variety of measures aimed at reducing the impact. The research found that the pandemic gave fresh urgency to the need for regulatory change to facilitate greater digitalisation. In many markets, transaction limits were increased to allow more funds to flow through mobile money. Additionally, as demand rose for non-physical payments, some regulators classified mobile money agents and their supply chains as essential services. Over 50 per cent of mobile money agents were continuously active throughout the pandemic, which was crucial for service continuity and maintaining liquidity.

While some of the regulatory reforms made in response to the pandemic have been positive for customers and providers, the implementation and extension of fee waivers has had a negative impact on mobile money providers’ core revenue stream. Mobile Money providers depend mainly on transactional revenues to sustain their business. Regulators are strongly encouraged to work closely with the industry to ensure sustainability going forward.

Customs & Excise Tariff: Analysis Of Finance Act 2020 Implications On Business Sustainability

Anifat Ibrahim
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Customs & Excise Tariff: Analysis Of Finance Act 2020 Implications On Business Sustainability

Excise Duty or tax is a tax on goods manufactured within Nigeria and payable by the manufacturers before the goods are removed from the factories or warehouses.

The duty is payable on all manufactured or produced goods unless the goods are exempted from duty. For manufacturers, the tax is simply the cost of doing business. Excise duty is based on the cost of production multiplied by the relevant excise duty rate.

Excise Tariffs are duties or taxes imposed by government on selected imported commodities in order to restrict imports and conserve foreign exchange. Tariffs are also the amount a country needs to pay for trading products.

Tariffs may be levied either to raise revenue or to protect domestic industries. It is more beneficial to a country’s economy because the amount paid for its product raises the country’s GDP.

Bases For Imposing Tariffs;

  • To protect infant industries
  • To prevent dumping
  • To correct an adverse balance of payment
  • To restrict the importation of demerit or harmful goods thereby regulating the consumption
  • To encourage the production of goods of strategic importance
  • As a means of raising revenue

Goods Liable To Excise Duty;

  • Beer & Stout
  • Wines
  • Spirit
  • Cigarettes and Tobacco
  • Goods manufactured and sold in Nigeria

Due Date For Payment

Excise duty computed is payable immediately on manufacture of excisable products. The Board may however exercise its discretion to allow the duty to be payable on a later stage not later than the delivery of the goods from the products store.

Legislative Framework For Excise Duties

Custom duties are applied to imported and exported products. These taxes are administered by the Nigerian Customs Service and are regulated by the following Laws in Nigeria;

  • The constitution of the Federal Republic of Nigeria
  • Customs and Excise Tariff etc (Consolidation) Act 1995 as amended
  • Nigeria Customs Service Board Act
  • Excise (Control of Distillation) Act

Offenses

  • Improper record keeping
  • Manufacturing products without excise license
  • Excess or deficiency in product stock
  • Unlawful manufacture of goods liable to excise duty

Penalties

Penalties vary depending on the type of products liable to excise duty. Penalties include fines, forfeiture of products, forfeiture of equipment and materials used in the manufacture of products and imprisonment.

The Finance Act (FA) 2020 And Its Implication On The Customs And Excise Tariff Act

The Finance Act 2020 provides amendments to the Customs and Excise Tariff Act in order to encourage domestic industries. Based on the Finance Act 2020 provisions, excise duties will now apply to excisable goods, such as cigarettes, wines, spirit, beer, and stout, among others, only when they are imported into Nigeria. Specific domestically produced items are subject to excise duties at definite rates. These domestic products include tobacco, spirits, and alcohol. Other items in the schedule of excisable products but now exempted and no longer apply include perfumes, cosmetics, toilet papers, non-alcoholic beverages, telephone recharge vouchers, soaps and detergents, paper packaging, spaghetti, and noodles, amongst others.

Excise duties on telecommunication services: telecommunication services provided in Nigeria will now attract excise duties at the rate prescribed by the President.

Conclusion

Excise duty is imposed on goods to discourage their demand and consumption. While it is apt that the government needs to explore other non-oil revenue sources to generate the funds needed to finance the national budget, necessary caution should be taken, considering the adverse effect of any additional tax or levy on businesses and individuals.

Withholding Tax In Nigeria: Rates And Its Application

Brand Spur
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Withholding Tax In Nigeria: Rates And Its Application

The Federal Inland Revenue Service (information circular No. 2006/02) states that Withholding Tax is an advance payment of income tax; in principle, however, Withholding tax (WHT) is a payment on account of the ultimate income tax liability of the taxpayer or company.

For emphasis, WHT is not a type of tax on its own and neither does it confer any exemption on the filing of annual tax returns by the company which had suffered WHT deductions. The tax is usually deducted at the source when payment is to be made to the beneficiary.

The main objective of the WHT regime is to capture more taxpayers into the tax net by ensuring that taxpayers who had hitherto evaded taxes would be made to pay the same. The overriding objective of the regime is to ensure full disclosure, transparency, predictability, and fairness.

The administration of WHT in Nigeria is vested in the Federal Inland Revenue Service and State Internal Revenue Services.

Finance Act 2019 And Finance Act 2020 Provisions On Applicability Of Withholding Tax In Nigeria

Section 13 of CITA has been amended by the 2019 Finance Act by the insertion of a new paragraph ‘e’ which means that if the trade or business comprises the furnishing of technical, management, consultancy or professional services outside of Nigeria to a person resident in Nigeria to the extent that the company has Significant Economic Presence (SEP) in Nigeria.

It is worthy to mention here that Section 6 of PITA is amended in the Finance Act 2020 by inserting a new Section “6A” to replicate the withholding tax provision in CITA of Finance Act 2019 which states that “Notwithstanding the provisions of section 6 of this Act, where an individual, executor, or trustee outside Nigeria carries on a trade or business that comprises the furnishing of technical, management, consultancy or professional services to a person resident in Nigeria, the gains or profits of the trade or business shall be deemed to be derived from and taxable in Nigeria to the extent that the individual, executor or trustee has a significant economic presence in Nigeria, provided that the withholding tax applicable to income pursuant to this Act shall be the final tax on the income of a non-resident recipient who does not otherwise fall within the scope of section 6 of this Act”.  

As the case may be, the Act states that the Minister (which is the Minister of Finance) may by Order, determine what constitutes SEP of a non-resident individual, executor or trustee.

 Withholding Tax Rates In Nigeria

The applicable rates and provision of WHT in Nigeria covers transactions of resident companies or individuals and non- resident companies or non – resident individuals.

Tax deductable Companies (%) Individuals (%)
Dividends, Interest and Rents 10 10
Directors fees N/A 10
Hire of equipment 10 10
Royalties 10 5
Commission, Consultancy, Technical and Service fees 10 5
Management fees 10 5
Construction (Roads, Buildings and Bridges) 2.5 5
Contracts other than sales in the ordinary course of Business 5 5

Withholding tax is always deducted at source. Note that dividend received after deduction of WHT is regarded as Franked Investment Income and is not liable to further income tax.

Double Taxation Agreement (DTA) On WHT

Nigeria has double taxation treaty agreements on withholding tax with a few countries with the under listed applicable rates:

Countries Dividend (%) Interest (%) Royalties (%) Management/Technical fees (%)
Belgium 7.5 7.5 7.5 10
Canada 7.5 7.5 7.5 10
China 7.5 7.5 7.5 10
Czech Republic 7.5 7.5 7.5 10
France 7.5 7.5 7.5 10
Netherlands 7.5 7.5 7.5 10
Pakistan 7.5 7.5 7.5 10
Philippines 7.5 7.5 7.5 10
Romania 7.5 7.5 7.5 10
Slovakia 7.5 7.5 7.5 10
South Africa 7.5 7.5 7.5 10
Spain 7.5 7.5 7.5 10
United Kingdom 7.5 7.5 7.5 10

 

In conclusion, returns for WHT are filed 21 days after the duty to deduct must have arisen from companies. However, failure to deduct or remit WHT attracts 10% of the amount not deducted or remitted.

Filing is to be done electronically by companies or individuals by attaching a schedule of all their suppliers for the month with their tax identification numbers (TIN), address of the suppliers, the nature of the transaction, WHT deducted and invoice number.

We advise members to constantly update their knowledge with the relevant tax laws and to always look forward to circulars from the Federal Inland Revenue Service in order to avoid penalties and sanctions.

BMW Motorrad Presents The New BMW C 400 X And C 400 GT

Oreoluwa Aderinkomi
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BMW Motorrad Presents The New BMW C 400 X And C 400 GT

With the C 400 X in 2017 and the C 400 GT in 2018, BMW Motorrad presented two premium vehicles for the midsize scooter segment for the first time.

Since then, the C 400 X has been impressing Urban Mobility segment customers with its dynamic ride characteristics, while the C 400 GT, as a Gran Turismo variant suitable for touring, stands out thanks to its enhanced range of comfort features.

To make sure that this remains the case in the future too, BMW Motorrad has now upgraded the two midsize scooters and, in addition to some significant technical optimizations, has also given them new colours and styles.

BMW Motorrad Presents The New BMW C 400 X And C 400 GT-Brand Spur Nigeria
C 400 GT-Brand Spur Nigeria

A powerful single-cylinder engine according to EU-5 homologation with E-gas, new engine management, and optimized centrifugal clutch

As before, the proven efficiency-optimized single-cylinder engine with an output of 25 kW (34 hp) at 7 500 rpm and a torque of 35 Nm at 5 750 rpm serves as the drive unit. Power transmission is via a CVT (Continuously Variable Transmission) gearbox and a torsionally stiff drivetrain swing arm with innovative swing arm bearing for minimum vibration and therefore maximum comfort. Thanks to the current EU 5 homologation, the new C 400 X and C 400 GT remain the ideal partners for dynamic, carefree scooter fun.

For this reason, the engine has been equipped with a so-called “electronic throttle grip” (E-gas) and an electrically operated throttle valve as well as a new engine management system.

Further optimizations are a modified matrix and coating of the catalytic converter, a wideband oxygen sensor, modifications to the cylinder head, a new sensor on the generator cover, an adapted wiring harness and modified idle speed control.

BMW Motorrad Presents The New BMW C 400 X And C 400 GT-Brand Spur Nigeria
bmw-c-400-x-connecting

The idle speed regulator in the airbox has been omitted and the idle speed control is now carried out via a throttle valve bypass and a turbulence system.

In addition to complying with EU-5 homologation, the revised drive impresses riders above all with an even smoother and more sensitive throttle response as well as increased idling stability. In addition to E-gas and new engine management, the optimised springs for the centrifugal clutch also contribute to increasing engine running stability.

The tolerance of the spring force was limited, the spring force was slightly increased and the engine speed was slightly raised as the clutch re-engages. Due to the reduced tolerances, the spread of the speed when disengaging the clutch is smaller and belated opening of the clutch – as occasionally known from the predecessor – no longer occurs.

Automatic Stability Control (ASC) with automatic radius calibration and increased regulation quality. Homologation of the full top speed now also for China.

BMW Motorrad Presents The New BMW C 400 X And C 400 GT-Brand Spur Nigeria
bmw-c-400-x-Brand Spur Nigeria

In the course of the technical revision, the new C 400 X and C 400 GT also received an optimised ASC. Instead of the previous manual recalibration – for example when changing tyres – the new system now has an automatic radius calibration. In addition, the new ASC is designed for significantly lower friction values than before. When riding, this is noticeable in a more sensitive response and significantly increased regulation comfort – especially on wet and slippery surfaces. Deactivating ASC is now no longer necessary.

Until now, the two vehicles were homologated for the Chinese market for a speed of 129 km/h. The legal requirements in China have changed and so it has now become possible to homologate the full top speed of 139 km/h there as in the other markets.

Brake system with new front brake calipers and adjusted lever travel of front and rear brakes. Storage compartment with optimised lighting and USB charging socket.

The brake system of the new C 400 X and C 400 GT has also been revised. Thanks to new brake calipers, the double-disc brake system at the front now offers a more stable and clearly defined pressure point as well as improved roll-back behaviour of the brake pistons. This is accompanied by aligned lever travels for the rear brake on the left and the front brake on the right for a symmetrical braking feel.

BMW Motorrad Presents The New BMW C 400 X And C 400 GT-Brand Spur Nigeria
bmw-c-400-x-ride-by-

The optimised lighting of the storage compartment (volume 31 l, 45 l with Flexcase) under the seat bench improves comfort significantly. The lighting now no longer comes from the side, but from above for even better illumination. In addition to the 12-volt onboard socket, the front right storage compartment is now equipped with a USB charging socket.

Two new attractive colours each as well as the style variants “Sport” (C 400 X) and “Triple Black” (C 400 GT).

As before the new BMW C 400 X and C 400 GT also feature the unmistakable design language of BMW Motorrad. Modern and future-oriented looks reflect the BMW Motorrad design philosophy perfectly. The new midsize scooters from BMW Motorrad are each offered in three different colour variants.

C 400 X.
• Base paint finish Blackstorm metallic.
• Optional Granite Grey metallic paint finish (+ 50.00 €).
• Style Sport (Blackstorm metallic/Racingblue metallic matt, + € 200.00).

C 400 GT.
• Base paint finish Alpine White.
• Optional Kallisto Grey metallic paint finish (+ 50.00 €).
• Style Triple Black (Blackstorm metallic with matt tapes, + 200.00 €).

All new features of the BMW C 400 X and C 400 GT at a glance:

• Powerful single-cylinder drive according to EU-5 homologation with E-gas, new engine management and optimised centrifugal clutch.
• Optimised idling behaviour.
• Automatic Stability Control (ASC) with automatic radius calibration and increased regulation quality.

BMW Motorrad Presents The New BMW C 400 X And C 400 GT-Brand Spur Nigeria
BMW-c-400-x-Brand Spur Nigeria

• Brake system with new front brake calipers, clearly defined pressure point and adjusted lever travel of front and rear brakes.
• Seat storage compartment with optimised lighting and USB charging socket in the front right storage compartment.
• Two new attractive colours each as well as the style variants “Sport” (C 400 X) and “Triple Black” (C 400 GT).

RAIN Positively Impacting 6 Million Lives Through Improved Clean Water Access, Sanitation Across Continent

Brand Spur
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RAIN Positively Impacting 6 Million Lives Through Improved Clean Water Access, Sanitation Across Continent

Water security is critical to building resilient communities and economic empowerment across Africa. As part of its week-long celebration of World Water Day (March 22), The Coca-Cola Foundation (TCCF) announced the achievement of the Replenish Africa Initiative’s (RAIN)current goal to improve access to clean water for 6 million people.  

RAIN, launched in 2009, is TCCF’s flagship clean water program in Africa contributing to helping countries across the continent achieve the United Nations’ Sustainable Development Goals on clean water and sanitation (SDG 6). 

Today’s 6 million person achievement is the result of a collective effort from over 300 international and local public, private and civil society partners.  As part of the celebrations for World Water Day 2021, RAIN partners gathered virtually today for a panel discussion to mark the achievement of the program and share best practices for replication from the program.

RAIN Positively Impacting 6 Million Lives Through Improved Clean Water -Brand Spur Nigeria
RAIN Positively Impacting 6 Million Lives Through Improved Clean Water -Brand Spur Nigeria

“RAIN is a testament to the power of collective action,” said Bea Perez, Chair and President, The Coca-Cola Foundation. “Working with our partners, RAIN’s transformative impact can be felt today in 4,000 African communities.  This program drives impact for the Sustainable Development Goals and our focus on People, Communities, and the Environment.”

Over the course of the past decade, RAIN has improved access to clean water for communities, schools, and clinics across 41 African countries as well as enhanced access to hygiene and promoted better hygiene behaviors. The program has also enabled the economic empowerment of people by creating opportunities for employment, entrepreneurship, and skills generation. In addition, RAIN has helped to protect critical watersheds, supported several African utilities in coping with the rapidly growing water demand in cities, and delivered essential hygiene items and personal protective equipment to help slow the spread of COVID-19.

 RAIN has developed a number of important learnings and recommendations, including:

●       Emphasize partnerships with urban and peri-urban utilities to help increase their capacity to better serve Africa’s expanding urban environments;

●       Accelerate integrated water resources management efforts to decrease stress on food production, water supply and sanitation services;

●       Enhance source protection for priority watersheds that serve the drinking water needs of millions of Africans;

●       Address the gender gap and focusing on the needs of women who play a critical role in community resilience and are uniquely empowered by WASH access;

RAIN Positively Impacting 6 Million Lives Through Improved Clean Water -Brand Spur Nigeria
RAIN Positively Impacting 6 Million Lives Through Improved Clean Water -Brand Spur Nigeria

●       Improve the collection, accessibility, sharing and use of data to monitor WASH services, improve performance, planning and decision making;

●       Support civil society and communities to help build resilience to water-related climate change impacts.  

“Africa is experiencing the highest rate of urban growth globally and is home to 21 of the world’s 30 fastest-growing cities,” said Bruno Pietracci, President for The Coca-Cola Company’s Africa operating unit.

“Africa is also more vulnerable to climate change than any other region. The Coca-Cola Foundation is committed to working with communities and governments to enhance climate change adaptation and help address the challenges that urbanization creates for the delivery of clean water and sanitation throughout the continent.”

The Coca-Cola Foundation is the global philanthropic arm of The Coca-Cola Company. Since its inception in 1984, the Foundation has given back more than $1 billion   to enable the empowerment of women, enhance communities, protect the environment and educate scholars   around the world

S4 Capital posts 19.4% Rise in Like-For-Like and Pro-Forma Billings, Revenue, Gross Profit and EBITDA

Esan Bolaji
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S4 Capital posts 19.4% Rise in Like-For-Like and Pro-Forma Billings, Revenue, Gross Profit and EBITDA

New age/new era digital marketing model starts to convert at scale

S4 Capital posts significant growth in like-for-like and Pro-forma billings, revenue, gross profit and EBITDA. Martin Sorrell’s S4 Capital announced MediaMonks conditional combination with Jam3Financial.

Highlights

  • Billings £653.4 million, up 43.4% reported, up 19.6% like-for-like and Pro-forma billings £768.4 million, up 22.3%.
  • Revenue £342.7 million, up 59.3% reported from £215.1 million, like-for-like up 15.2%, Pro-forma up 20.1%.
  • Gross profit £295.2 million, up 72.3% reported from £171.3 million, like-for-like up 19.4%, Pro-forma up 23.7%.
  • Operational EBITDA**** £62.2 million, up 86.1% reported, like-for-like up 18.3%, pro-forma up 30.6%.
  • Operational EBITDA margin 21.1%, up 1.6 margin points on 2019 reported, like-for-like down 0.2 margin points, Pro-forma up 1.2 margin points.
  • Operating profit £8.1million versus an operating loss of £3.8 million in 2019. Operating profit is after charging £49.9 million of Adjusting Items relating to acquisitions, amortisation and share-based payments (including £7.4 million in deferred, contingent combination payments tied to continued employment). Pro-forma operating profit of £16.9 million versus an operating loss of £1.2 million in 2019.
  • Profit before income tax £3.1 million, after charging adjusting items, versus a loss of £9.2 million in 2019 and Pro-forma profit before income tax of £12.1 million
  • Statutory result for the period £3.9 million (loss) after charging adjusting items after taxation versus £10.0 million (loss) in 2019 and Pro-forma result for the period of £1.2 million (loss)
  • Adjusted basic net result per share 7.9p versus 5.2p in 2019 and 9.8p Pro-forma
  • Basic and diluted net result per share 0.8p (loss) which includes adjusting items after-tax versus 2.7p (loss) in 2019 and Pro-forma adjusted basic net result per share 0.2p (loss)
  • Year-end net cash £51.6 million, even after significant combination payments since £113 million net fundraisings in July 2020, reflecting strong liquidity from operations and EBITDA conversion to cash flow from operating activities of 99% versus 74% in 2019
  • Good start to 2021 with like-for-like January gross profit well ahead of budget and with budgeted gross profit growth like-for-like for 2021 of 25% divided by Gross Profit.

Strategic and Operational Highlights

  • In January, MediaMonks announced a combination with Circus Marketing, a fully integrated digital agency, based in the Americas and Spain (consolidated as from March 2020).
  • In May, MightyHive announced a combination with Digodat, a leading Latin American data & analytics consultancy (consolidated as from July).
  • In June, MightyHive announced a combination with Lens 10, a leading Australian digital strategy & analytics consultancy (consolidated as from October).
  • In July, MightyHive announced a combination with Orca Pacific, a Seattle-based, Amazon-managed service provider (consolidated as from August) and raised £113 million net proceeds from a placing.
  • In August, MightyHive announced a combination with BrightBlue Consulting, an award-winning UK-based, data analytics and measurement consultancy (consolidated as from September).
  • In September, BMW/MINI announced a new agency partner network in Europe, called THE MARCOM ENGINE which included MediaMonks, which would be “at the heart of the new constellation”. On the same day, MediaMonks announced a combination with Dare.Win, an award-winning, Paris-based, digital creative agency.
  • In November, Mondēlez International confirmed that MediaMonks had won its competitive pitch to manage its tech infrastructure and websites globally, plus content production for North America, Latin America, Asia, Middle-East and Africa.

Post-year-end:

  • In January 2021, MediaMonks announced combinations with Decoded Advertising, an integrated, creative, technology and media agency, based in New York and also combined with Tomorrow, an award-winning, Shanghai-based, creative agency and with Staud Studios, a high-end creative, production studio, specialising in the automotive industry.
  • Also, in January, MightyHive announced a combination with Metric Theory, an integrated performance marketing agency, providing services across search, social and commerce media. Metric Theory and Decoded Advertising were completed on 31 December 2020 after the market was closed. As a result, the balance sheets of both combinations are included in the consolidated balance sheet of the Group.
  • In February, MightyHive acquired the assets of Datalicious Australia, a Sydney, Melbourne and Brisbane-based data & analytics company.
  • Today, S4Capital announced that it has entered into a conditional agreement in relation to a combination of MediaMonks with highly awarded design and experience agency, Jam3, based in Toronto with offices in Amsterdam, Los Angeles and Uruguay.
  • The pace of onboarding both the new BMW/MINI and Mondēlez “Whoppers” has intensified during the first and second quarters of 2021.
  • Addition of functional talent teams in fashion and luxury, social media and government communications from leading competitors, the first during 2020 and the last two in 2021.
  • Launch of both S4 Fellowship Programme for students from Historically Black Colleges and Universities and in due course, High Schools in the United States and S4 Women Leadership Programme in association with UC Berkeley in California.
  • The Group now has approximately 4,400 people in 31 countries, trending towards double where we were this time last year.
  • In addition to new client BMW/MINI and the significant broadening of our relationship with Mondēlez, there were major new remits from clients such as Google, Facebook, Amazon, Netflix, Procter & Gamble, T-Mobile, Bayer & HP and major new assignments from Cisco, Embibe, Harley Davidson, PayPal, LA28, Shopify and Verizon amongst others, reflecting the strong tech orientation of the Company’s client base and the growing healthcare and FMCG focus.
  • A current pipeline running at a stronger level than last year

Sir Martin Sorrell, Executive Chairman of S4Capital plc said:

“Our second full financial year was again outstandingly successful. Having established brand awareness and secured brand trial in the back end of 2018 and in 2019, we set about converting client relationships at scale and now have five “Whoppers” secure or insight, in line with our ultimate 20 squared objectives, that is 20 clients each generating revenues of over $20 million per annum.

S4 Capital sees Q3 revenue rise by 53%, boosted by tech clients Brandspurng

Pride of place for these achievements should go to our (now) over 4,400 people in 31 countries, who have responded unflinchingly to the colossal strain and challenge of the pandemic. Their creativity, adaptability, resilience and hard work have made this success possible and have started to prove the potency of our new age/new era, digital, data-driven, unitary model, which has started to gain significant traction.

The pandemic has, at the same time, accelerated the adoption of digital transformation amongst consumers, across all media and within enterprises and, in turn, stimulated the demand from clients for a digital marketing expertise.

We continued to grow our top line and bottom line at industry leading rates, despite covid-19 and exhibited agility in developing new content revenue streams quickly, such as robotic production, animation and on-line events and driving data & digital marketing net revenues, particularly in the fourth quarter and into this year.

We continued to broaden and deepen our Content and Data & digital media practices through organic growth and by the addition of a further four Content and six Data & digital media companies in 2020 and so far in early 2021. We further integrated our unitary client offering around our Content and Data & digital media practices. We broadened and deepened our client roster.

We embraced the diversity, equity and inclusion and ESG opportunities and challenges with unique black-orientated fellowship and female executive leadership programmes, changed hiring practices and education programmes and made zero carbon commitments targeting 2024. We achieved double $ and £ Unicorn status in terms of stock market value, in only our second full year, while strengthening our balance sheet to take advantage of short-term opportunities.

2021 has started strongly, well in line with our latest three years plan to double organically in three years and we are focused on three objectives for the year – to bed down our two new “Whoppers” and develop and identify five more; to roll-out our unitary branding; and to continue to broaden and deepen our digital client offering by combination.

We believe 2021 and 2022 will be very strong years economically, as the world rebounds from the pandemic and spends and invests the huge pandemic-driven fiscal and monetary stimulus. Digital marketing expenditure is closely correlated, but not dependent on GDP growth, just as traditional media spending used to be in the last century.

”Appointment of Miles Young, a leading, industry-knowledgeable Non-Executive Director, to the Board.

Jam3 to Merge with MediaMonks in Latest S4Capital Expansion

Esan Bolaji
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Jam3 to Merge with MediaMonks in Latest S4Capital Expansion

MediaMonks strengthens its creative and content capabilities, adds talent and expands its global footprint

S4Capital plc, the tech-led, new age, new era digital advertising and marketing services company, announces that it has entered into a conditional agreement in relation to a merger of Jam3, an award-winning Toronto-based design and experience agency, with MediaMonks, S4Capital’s Content practice.

Through the merger, MediaMonks will deepen its creative capabilities and expand its presence in Los Angeles, The Netherlands, Canada and Latin America–with an all-new expansion in Uruguay.

Jam3 to Merge with MediaMonks in Latest S4Capital Expansion

Founded in 2004, Jam3 is a design and experience agency in Toronto, Los Angeles, Amsterdam, and Montevideo led by Pablo Vio, Michael Dobell, Mark McQuillan, Adrian Belina, Jordan Cuddy, Miguel Moraleda.

A global agency, Jam3 has over 150 employees worldwide who uncover relevance, purpose and innovation in everything they do. Together with their client portfolio of brands such as Facebook, Sonos, Adidas, eBay, Levi’s and CrowdStrike, Jam3 launches new products and design platforms, bringing moving experiences to customers–digitally and beyond.

This merger represents the natural convergence of two partners with shared regard for creative excellence, and award-winning work at scale on behalf of shared clients including Google, Facebook, Spotify, and Netflix. Jam3 and MediaMonks combine their global teams of powerhouse talent under a single P&L void of silos and barriers to productivity.

Named two of the ‘10 Digital Agencies to Supercharge Your Marketing’ by Forrester, MediaMonks and Jam3 are two of the most iconic, award-winning teams who share a vision for the future of brand experience.

With a 20-year track record for award-winning work, MediaMonks and Jam3 have topped the leaderboard in industry award shows around the world. Both members of the FWA Hall of Fame and the FWA 100 Club, MediaMonks and Jam3 have collectively earned 386 FWAs.

More recently, Jam3 was awarded 2020’s Campaign US Digital Innovation Agency of the Year (Gold) – and MediaMonks won 2020’s Campaign Digital Innovation Agency of the Year in EMEA (Gold) and the UK (Bronze). With Jam3, MediaMonks and Superhero Cheesecake, S4Capital is one of the most awarded digital craft and design companies.

S4 Capital Executive Chairman Sir Martin Sorrell said, “We are delighted to welcome the Jam3 team to S4Capital. Data-driven, Creativity is at the heart of our offering and Jam3’s reputation, talent and client base is second to none. Jam3 is another key step in our seizing the next decade and converting clients at scale to our new, unitary model.”

“With shared clients, a shared focus on creative excellence and a shared ambition to disrupt the market, Jam3 and MediaMonks are obvious partners,” said Wesley ter Haar, Founder MediaMonks, and S4Capital Executive Director.

“We’ve long admired the work of the team at Jam3 and we can’t wait to see what we can create together.”

Mark McQuillan, Partner and Managing Director, Jam3 added, “Our ambition at Jam3 was to find a partner who can inspire us to multiply our efforts, together. We couldn’t be more excited to team up with The Monks and S4Capital for our next chapter.”

e-Book: What If Your Food Business Could Rise and Thrive in A Changing Economy?

Kehinde Fashua
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e-Book: What If Your Food Business Could Rise and Thrive in A Changing Economy?

While we cannot prevent pandemics from emerging, we can always be prepared to mitigate their impacts, discovering new opportunities even in the mess to establishing longer-term viability for our businesses.

Consequently, if your food business has been challenged during the global pandemic or if you realize that it is time to be better prepared for a new economy, this 6-step guide is for you.

e-Book: What If Your Food Business Could Rise and Thrive in A Changing Economy?
Young waiter wearing protective face mask while cleaning tables while working in a cafe.

With recent shocks and disruptions to the food system, many food players are coming to terms with the need to shift gear from operating within a known part of the food system to operating from a less known part. While the shocks and shifts are not planned, learning to participate differently in a system provides us with a better understanding of actors’ needs and roles throughout the chain.

Recipe to Rise – A 6-step guide to new value will navigate you through a journey rooted in confidence, openness & adaptability. You will move from understanding the changing landscape and consumers’ new contexts, grounding in your purpose, discovering new opportunities and re-purposing capabilities, building partnerships, to establishing longer-term viability for your business.

The guide also includes a collection of tools, exercises, and action items for food businesses to engage with to move from a state of ‘stuck’ to a state of ‘opportunity.’

The guide was developed by a global group of diverse food system experts, who met virtually, after being selected as “Vision Prize Guides” for The Rockefeller Foundation’s Food System Vision Prize 2050. As the COVID-19 pandemic began, they decided to turn their nervous energy into productive energy, and the unexpected into an opportunity. They combined their collective skill sets and united around a vision to create this, “Recipe to Rise” with the hopes to help inspire a stronger food system and a resilient tomorrow for food businesses. 

Download RECIPE TO RISE- How to adapt your food business to deliver new value for a changing economy here 

Dangote Cement Contemplates Debt Funding Options Under Planned $300bn Bond Issuance Program

Esan Bolaji
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Dangote Cement Contemplates Debt Funding Options Under Planned $300bn Bond Issuance Program

Dangote Cement Plc. has obtained approval from its Board of Directors to access the Capital Market to support business growth and maximize available sources of its debt funding.

Dangote Cement Plc. is Nigeria’s largest listed entity by market capitalization on the Nigerian Stock Exchange, as well as Sub-Saharan Africa’s leading cement producer, with a combined installed capacity of 48.6Mta across its operations in 10 African countries.

The Company has submitted an application to the Securities and Exchange Commission (SEC) for the registration of a bond issuance programme.

Subsequent to obtaining regulatory approvals, the Company intends to explore its medium to long-term debt funding options through the debt capital market, subject to favourable market conditions. When raised, the proposed funding will be used for capital expenditure of the Company’s expansion projects, short term debt refinancing, and working capital requirements.

Cannabis Beverage Sales Could Hit $2.5 Billion – Report

Esan Bolaji
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Cannabis Beverage Sales Could Hit $2.5 Billion – Report

A new report reveals cannabis beverage sales will reach $2.8 billion by 2025, expanding at an annual compounded rate of 17.8%.

The market is highly fragmented in nature, owing to the presence of several small and medium scale companies. The majority of the companies are based in Canada, owing to the legalization of marijuana for medical and recreational purposes in the country.

Cannabis Beverage Sales Could Hit $2.5 Billion - Report Brandspurng
Photo by Kimzy Nanney

The rise in the legalization of marijuana in order to eradicate the black market and to boost the tax revenue from legal sales of marijuana products is anticipated to positively influence the growth.

The rising popularity of wellness drinks is also expected to support the demand over the forecast period. The legalization of cannabis for medical and recreational purposes has had a strong impact on the sales of alcoholic drinks.

As a result, many alcohol manufacturers are investing in the growing trend of marijuana-infused drinks. For instance, Lagunitas, Heineken’s fast-growing California beer label, launched Hi-Fi Hops, which is a cannabis-based beverage with zero calories or carbs and is infused with Cannabidiol (CBD) and Tetrahydrocannabinol (THC).

In 2017, Constellation Brands, the third-largest beer manufacturer in the U.S., entered into a partnership with Canopy Growth – the world’s largest marijuana grower, to develop cannabis-infused beverages.

Consumers are shifting their preference from soft drinks to wellness drinks leading to the increasing sale of cannabis beverages. Low sugar content in drinks is the major driving factor for the growth of the market.

Also, consumers prefer these beverages as an alternative to cannabis smoking and consumption of marijuana-infused chocolates, cookies, brownies, and confectionaries like gummies and candies. Off-trade sales channels such as hotels, cafes, restaurants, clubs, and lounges are expected to boost the popularity of the product among consumers.

Strong demand for cannabis beverages from millennials is also anticipated to drive the market growth. As per a 2017 Yahoo News poll, the majority of the 55 million recreational marijuana users in the U.S. were millennials. Most millennials consume marijuana socially and only 25% of them consume it alone.

A 10-year study by researchers at the University of Connecticut and Georgia State University, completed in 2017, found that in U.S. counties where marijuana was legalized, wine and beer purchases decreased by 15%.

North America is estimated to be the fastest and largest market over the forecast period. The growth is majorly driven by the legalization of marijuana for medical and recreational purposes.

As per the National Conference of State Legislatures, a total of 33 states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands have approved publicly available medical cannabis programs, resulting in the increased launch of several cannabis drinks. Also, 13 states in the U.S. allow the use of low THC and high CBD products for medical purposes, resulting in high demand for CBD infused cannabis drinks in the region.

Europe is estimated to witness strong growth over the forecast period, owing to a rise in cannabis consumers in the region. As per the Cannabis Trade Association, the number of CBD users in the U.K. increased from 125,000 in 2016 to 250,000 in 2017.

Also, the companies operating in the region are launching products to keep up with the growing trend of wellness drinks. For instance, Manchester-based CBD Ultra and Cloud 9 Brewing have launched U.K.’s first CBD Session IPA beer brewed with Cannabis Sativa extract.

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