Access Bank acquires Zambian Cavmont Bank

Esan Bolaji
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Access Bank acquires Zambian Cavmont Bank

Nigeria’s financial institution, Access Bank plc, continued its determined African footprint expansion with an announcement Thursday that its subsidiary in Zambia, Access Bank Zambia Limited, has entered into a definitive agreement with Cavmont Capital Holdings Zambia Plc for a merger of the two firms.

The transaction agreement showed Access Bank Zambia will acquire the entire issued share capital, assets and liabilities of Cavmonth Bank while Capricorn Group Limited, majority shareholder of Cavmonth Capital Holdings, will invest around $16.5 million of preference shares into Access Bank Zambia.

Access Bank acquires Zambian Cavmont Bank
Herbert Wigwe

According to Access Bank, ‘’Subsequent to our announcement on July 8, 2020, the Board of Access Bank Plc announces today that its subsidiary, Access Bank (Zambia) Limited, has entered into a definitive agreement with Cavmont Capital Holdings Zambia Plc (CCHZ) regarding proposed acquisition of Cavmont Bank Limited, a subsidiary of CCHZ and subsequent merger of Cavmont Bank’s operations into Access Bank Zambia. The proposed transaction, which remains subject to relevant shareholder and regulatory approvals, will position the enlarged Access Bank Zambia as one of the top 10 banks in Zambia and create the momentum to advance its strategic objectives.’’

‘’Under the terms of the agreement, Access Bank Zambia will acquire the entire issued ordinary share capital, assets and liabilities of Cavmont Bank while Capricorn Group Limited, the ultimate majority shareholder of CCHZ will invest at least ZMW300 million ($16.5 million) of preference shares into Access Bank Zambia. Capricorn will hold preference shares in the enlarged Access Bank Zambia for a period of five years, after which the preference shares will be acquired by Access Bank Plc.’’

The statement also notes that the enlarged bank will be well placed to participate in the long-term economic growth of Zambia and will be predicated on the country’s vast reserves of natural resources and fast-growing young population.

Cavmont Bank recorded a loss after tax of 19.8 million Namibian dollars ($1.14 million) in 2019, an improvement on a 46.6 million Namibian dollar loss the previous financial year.

The transaction is expected to be completed during the fourth quarter of 2020.

Investment Lessons we can all learn from The Old Guard

George Martins
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Investment Lessons we can all learn from The Old Guard

Netflix’s new addition, which features sterling performances by Charlize Theron, Chiwetel Ejiofor, relatively newcomer Kiandra “Kike“ Layne and others, is a decent paced supernatural sci-fi thriller promising an adrenaline rush. The Old Guard, while packed with mind-bending, gunshot- absorbing action, points us to some important lessons in life and investing.

Andy (played by Charlize Theron) leads an elite team of 4 hitmen who are immortal. They have fought together for centuries, defying old age, on the side of good, saving people and making the world a better place.

The story progresses to reveal the Nile, a US Marine who accidentally discovers her own immortality when her throat is slit in Afghanistan. Nile joins the group, and they focus their energies on taking out the common enemy, pharmacist billionaire Steven Merrick, who works with a conflicted right-hand man to capture the immortals and find the secret of their immortality to try to commercialize it.

Investment Lessons we can all learn from The Old Guard - BRANDSPUR

What does all this have to do with investing? I’m glad you asked. Here are a few life lessons we can all learn from the conflict, blood, and gore of this sensational thriller:

Anyone can change

This is both a life lesson and an investing lesson. Human nature is such that it is very easily able to adapt itself in favour of self-preservation. James Copley, Merrick’s right-hand man, is first presented to us as a rogue FBI agent who is trying to do some good by saving kidnapped girls. As the movie progresses, we see his real intentions.

In personal finance and investing, nothing is set in stone. Some investment options may assure you of a low-risk profile and quarterly interest rates. Know that things can change depending on the external environment, so do not be caught unaware.

Do not judge a book by its cover

In the film, Andy went alone to Afghanistan to extract Nile from the US Army base. For the longest time, Nile was still doubtful of Andy’s character. She thought it was all a hoax. When she came face to face with evidence of the work Andy had done over the centuries however, she was willing to take on the whole security detail on the Merrick property to free her new friends.

Recently, electric car maker Tesla emerged as the world’s most valuable carmaker, overtaking Japan’s much older Toyota. Tesla’s stock hit a record high of $1,134. Investing advice often persuades us to go with companies that have been around for a long time and have consistently printed rising profits year on year. But occasionally, the investor who takes a chance can hit a reward most people only dream of. So, take calculated risks. With money and with people.

Immortality is only to be found in movies

There is a feeling that lingers after a particularly enthralling movie. As you leave the cinema hall or close the laptop, you can almost swear you have inherited some of the power or mystery of your favourite character. Soon enough though, this wears off and you once again become fully immersed in the grimness of real life.

The eventual wearing off of the high we get after seeing a good movie is instructive. In real life, we do not expect to miraculously become immortal. We should extend the same to our investing lives. Investing is always an ongoing thing.

You need to constantly make changes in your position in response to the flows and ebbs of the market, to maximize your funds and returns in the long run. Immortality is not promised or expected, just like economies of whole countries, regions and the globe have repeatedly crashed.

In the end, what would matter is if you achieved your goal or not

At the end of the day, you either achieve your set goal or you don’t. You may have reasons for not achieving, and those reasons may be valid, but the hard-cold fact is you did not achieve it.

While watching this movie, and for the sake of humanity, I was quietly hoping that the secret of immortality would be discovered, extracted, and replicated into small drug bottles that would eventually be available over the counter. But of course, it’s a movie; villains don’t win.

Being more decisive is a virtue. If you’re keeping all your savings in a regular bank account, with all it various charges, and then one day you realize you can transfer that money into a secure investment platform like Investnow.ng that gives you regular interests and enables you to earn extra, you can make that decision or not!

In the end, what will matter is not how many hours you spent thinking about making a move to earn more. What will matter is what you did (or not do) about it.

At the end of the movie, the villain is defeated and our heroes, members of the Old Guard drive off. Just like investing, it is a story of courage. Of knowing when to hit and when to duck.

Investing can be tough and overwhelming at first. But at United Capital, we are here to help you through it and give you a soft start with our low-risk retail investment options available on investnow.ng.

United Capital

Nielsen revenues drop 8.1% in Q2 2020

Esan Bolaji
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0
Nielsen revenues drop 8.1% in Q2 2020

Nielsen Holdings plc announced its results for the quarter ended June 30, 2020. The Company also refined its 2020 guidance, raising its adjusted EPS range, raising the low end of its adjusted EBITDA and Free Cash Flow estimates on strong cost discipline, and incorporating the impact of planned business exits on revenue.

Additionally, the Company continues to make progress toward the planned separation of Nielsen Global Media and Nielsen Global Connect, with the spin-off transaction expected to close in early 2021.

  • Revenues of $1,496 million decreased by 8.1% on a reported basis and decreased 5.9% on a constant currency basis

  • Diluted net loss per share of $(0.08) and adjusted earnings per share of $0.41

  • Revising 2020 guidance: raising adjusted EPS range and adjusted EBITDA margin target, tightening Free Cash Flow range

  • Broad-based optimization plan announced in July to drive approximately $250 million permanent run-rate savings

  • Continued progress on positioning Nielsen Global Connect as a standalone public company

Nielsen revenues drop 8.1% in Q2 2020

David Kenny, Chief Executive Officer, commented, “We delivered solid results that were in line or above the outlook we provided in April amid a challenging environment due to the global COVID-19 pandemic, with both Media and Connect executing well.

This is a testament to both the commitment and dedication of our teams and the strength of our client relationships. Our clients reacted quickly during a time of crisis to provide consumers with essential goods and services, and we also adapted quickly to provide clients with the essential measurement and analytics they need to drive business decisions in a dynamic environment.

We took swift action in response to COVID-19 related revenue pressure by instituting greater discipline around operating costs and capital expenditures, enabling us to minimize the impact on EBITDA and free cash flow in the second quarter.”

Kenny continued, “In July, we announced a broad-based plan to accelerate our business transformation. We are prioritizing resources to focus on key strategic initiatives, higher-margin products and services, and greater efficiency, which will drive agility and scale.

Importantly, we expect our actions will permanently reduce our cost structure, driving margin expansion, increased cash generation and providing added flexibility to invest in key growth initiatives that will enable us to better serve our clients in rapidly evolving ecosystems.

We have confidence in our ability to deliver on our objectives and we are refining our guidance for the full year 2020. We remain focused on the separation of Nielsen Global Media and Nielsen Global Connect, which we expect to complete in the first quarter of 2021. We have two strong businesses and both are well-positioned for their futures as standalone companies.”

Second Quarter 2020 Results

  • 2nd quarter revenues were $1,496 million, down 8.1% on a reported basis, or down 5.9% on a constant currency basis, compared to the prior year.
  • Nielsen Global Media revenues decreased by 5.3% to $811 million on a reported basis, or a decrease of 4.6% on a constant currency basis, compared to the prior year.
    • Audience Measurement revenues decreased 3.1% on a reported basis, or a decrease of 2.4% on a constant currency basis, reflecting the impact of the COVID-19 pandemic on sports and non-contracted revenue and ongoing pressure in local television.
    • Plan/Optimize revenues decreased 11.1% on a reported basis, or a decrease of 10.3% on a constant currency basis, primarily reflecting the impact of the COVID-19 pandemic on sports, Gracenote auto and short-cycle revenue and ongoing pressure in Telecom.
  • Nielsen Global Connect revenues decreased by 11.3% to $685 million on a reported basis, or a decrease of 7.4% on a constant currency basis.
    • Measure revenues decreased 9.3% on a reported basis, or a decrease of 5.0% on a constant currency basis, reflecting the impact of the COVID-19 pandemic on retail measurement services in markets that are heavy in traditional trade.
    • Predict/Activate revenues decreased 15.9% on a reported basis, or a decrease of 13.2% on a constant currency basis, reflecting the impact of the COVID-19 pandemic, particularly in custom insights and innovation, partially offset by the January 2020 acquisition of Precima.
  • Net loss for the second quarter was $30 million on a reported basis, compared to net income of $123 million in the second quarter of 2019. Net loss per share on a diluted basis was $0.08 per share, compared to net income per share on a diluted basis of $0.34 per share for the second quarter of 2019. Net loss was impacted by higher restructuring charges, higher depreciation and amortization expense, and the impairment of long-lived assets related to the exit of certain smaller, underperforming markets and non-core businesses primarily in the Media segment.
  • Adjusted earnings per share were $0.41 per share, compared to $0.53 per share in the prior year, reflecting lower adjusted EBITDA and higher depreciation and amortization year over year, partially offset by lower taxes.
  • Adjusted EBITDA for the second quarter decreased by 9.4% to $426 million on a reported basis, or a decrease of 7.6% on a constant currency basis, compared to the prior year.
  • Adjusted EBITDA margin decreased 39 basis points to 28.5% on a reported basis, or 51 basis points on a constant currency basis compared to the prior year, reflecting pressures in both segments from the COVID-19 pandemic and investments in Media, partially offset by cost savings.
  • The reported amounts above were impacted by weaker currencies versus the dollar during the second quarter, which had a 220 basis negative impact on reported revenue growth and a 180 basis negative impact on EBITDA.

Financial Position

  • In June, Nielsen refinanced $1 billion of debt, pushing out maturities and redeeming the $800 million outstanding principal amount of the 4.500% Notes due 2020 and redeeming $200 million of the $625 million outstanding aggregate principal amount of the 5.500% Senior Notes due 2021.
  • As of June 30, 2020, Nielsen’s cash and cash equivalents were $438 million and gross debt was $8,421 million.
  • Net debt (gross debt less cash and cash equivalents) was $7,983 million and Nielsen’s net debt leverage ratio was 4.46x at the end of the quarter.
  • Cash flow from operations increased to $250 million for the second quarter of 2020, from $226 million in the second quarter of 2019. Cash flow performance was primarily driven by working capital improvements and lower tax payments, partly offset by lower EBITDA.
  • Cash taxes were $41 million for the second quarter of 2020, compared to $76 million in the second quarter of 2019.
  • Net capital expenditures were $120 million for the second quarter of 2020, compared to $108 million in the second quarter of 2019.
  • Free cash flow for the second quarter of 2020 increased to $130 million, or $154 million excluding separation-related cost cash flows, compared to $118 million in the second quarter of 2019.

Dividend

On July 16, 2020, our Board of Directors declared a quarterly dividend of $0.06 per share of Nielsen’s common stock. The dividend is payable on September 3, 2020, to shareholders of record at the close of business on August 20, 2020, and is an estimated $21 million.

2020 Full Year Guidance 

The Company is refining full year 2020 guidance, as highlighted below:
  • Total revenue growth on a constant currency basis: -4% to -2% (previously -4% to -1%)
  • Adjusted EBITDA margin: 29% – 30% (previously 28.5% – 29.5%)
  • Adjusted EBITDA: $1,800 – $1,860 million (previously $1,790 – $1,860 million)
  • Adjusted earnings per share: $1.50 – $1.62 (previously $1.43 – $1.58)
  • Free cash flow: $480 – $530 million (previously $460 – $530 million)

These estimates exclude $275 – $300 million of cash separation-related costs in 2020, the majority of which will occur close to the separation date.

Shoprite controls 22% of Nigeria’s formal retail, their future in Nigeria will be driven by indigenous retailers

Esan Bolaji
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0
Shoprite controls 22% of Nigeria’s formal retail, their future in Nigeria will be driven by indigenous retailers

The Nigeria Shoprite knew when they made entry through the launch of The Palms in December 2005 is a sharp contrast to its current condition. Little formal retail competition, a stable currency and much higher GDP growth rates were core themes in Nigeria’s story about a decade ago and as a result, Shoprite’s business grew by over 10% annually for 13 straight years in its Non-South African country operations where Nigeria played a major role.

Shoprite sat at the very heart of Nigeria’s retail boom which saw the total retail space grow 10x from 2005 to late 2017. Despite the 13 years of strong growth, the combination of events that have occurred over the past 3-4 years was enough for Shoprite to decide, albeit in a much softer way than their South African counterparts, to call it quits by selling a stake in their Nigerian subsidiary to potential investors.

All in all, the signalling that comes with a complete or partial sale of Shoprite’s stake in its Nigerian subsidiary is much worse than the action itself.

Why are they leaving?

Nigeria’s retail market faced a myriad of challenges following the recession in 2016 provoking a loss of confidence in the market as investors suspended their large exciting retail projects and a handful of retailers exited the country. With a slowdown in retail developments, Shoprite, who serve as the go-to anchor tenant in Nigeria’s major malls found it difficult to expand.

Segmental sales growth in Nigeria since June 2019 have been unimpressive compared to Shoprite’s home market in South Africa, even though that economy has been in recession since the beginning of the year.

The xenophobic inspired attacks in September 2019 saw 14 Nigerian malls with Shoprite as its anchor tenant looted and damaged. This worsened sales growth and led to a 59% reduction in weekly customer visits according to their 2019 results presentation. Two months after the protests, customer visits were still 14% lower than the typical.

Shoprite controls 22% of Nigeria’s formal retail, their future in Nigeria will be driven by indigenous retailers

Although Shoprite’s recent performance decline is highly influenced by currency fluctuations, the group mentioned in their 2019 results presentation that they were taking immediate actions in reducing dollar-denominated rent, borrowings and curbing capital allocation for new stores and developments proving these were also a struggle for the company.

How big is Shoprite in Nigeria?

Shoprite’s relevance in Nigeria’s retail is highly significant with its anchor presence in 25 malls controlling about one-fifth or c. 21.81% of Nigeria’s total retail space. This indicates that any shakeup with Shoprite has significant consequences for Nigeria’s retail industry. Before the entrance of other retailers, Shoprite Nigeria had very significant dominance in Nigerian retail centres dictating lease terms due to its heavy traction.

Who are the potential investors in Shoprite that can close the void?

Retail Supermarkets Nigeria Limited, the Nigerian arm of Shoprite Holdings revealed they have identified Nigerian investors that “share in its vision”.  Shoprite Holdings is keen on creating a “truly Nigerian business” for its Nigerian arm by transferring the majority of its ownership to indigenous investors. This provides an opportunity for indigenous retailers who started out in standalone shops seeking to expand their local dominance by growing into malls.

A few notable Indigenous retailers who have recorded significant growth recently include Hubmart, Jara, Prince Ebaeno among others. While some retailers have expressed interest and started to expand their footprint into formal retail centres, others have expressed disinterest in that strategy.

Hubmart expanded into formal retail centres through their entry into The Lennox Mall in 2018 leading to a total of 4 retail stores in Lagos State. Prince Ebaeno has so far avoided the formal retail strategy and stuck with standalone stores. Now they control a total of 5 retail stores in Lagos and Abuja.

Jara (officially EDLP Nigeria Ltd) recently launched a small retail centre in Ikeja and another in Edo State and are looking to establish a nationwide discount supermarket and retail chain and aligning with Shoprite could expedite that process.

The company is linked to the Persianas Group (owners of The Palms chain of malls) who, as we will point out, have a vested interest in this process. Other retailers such as SPAR, keen on expanding their local presence in formal retail may also be looking in Shoprite’s direction.

It is worthy to note Carrefour, an International retail store with relatable dominance across other African countries who tried penetrating the market by anchoring the c.20,000 sqm Twin Lakes Mall by Actis.

Further expansion by Carrefour after Twin Lakes Mall would have threatened Shoprite’s dominance. However, plans for this mall were suspended largely due to the macroeconomic downturn, retail market fundamentals and a change in Actis’ investment strategy.

The sale of Shoprite might just serve as an opportunity for Carrefour to make a market entry if they are willing to look long term as problems that suspended Twin Lakes Mall still persist.

What does this mean for the market players?

1. Shoprite: The mighty anchor: As we expect the Nigerian arm of Shoprite to continue to build the business in Nigeria with potential investors, a transfer of ownership to indigenous investors with better-staying power should reduce the risk of foreign exchange volatility as they patronize indigenous products and report a profit in naira. Shoprite can then focus on its South African arm without the distraction of volatile commodity-based economies like Nigeria which make it hard to operate.

2. Other Retailers: In our Boom & Bust report, we pointed out that retailers typically start out in standalone shops, expand their footprint and gain the capacity to grow into malls. In Nigeria, the malls came much faster than the tenants could grow as strong homegrown brands are only just coming into their own.

This potential sale provides an opportunity for an existing retailer to bolster its operations, not just by moving from standalone stores to formal centres but dominating the market as an indigenous retailer (This is in a case where Shoprite’s brand name is not retained).

Observing international retailers that have or are in the process of exiting Nigeria such as Woolworths, Truworths, Mr Price, they tend to stick with operations in their country of origin as they understand the market and have historically generated impressive returns.

An indigenous retailer acquiring Shoprite’s property portfolio will be immense for organic growth and will likely see the retailer support the development of multiple shopping malls in the future.

3. Asset Owners: Shoprite’s announcement most likely causes a major scare to mall owners due to the amount of retail space controlled and the proportionate control of income. Many asset owners found out about their plans at the same time as everyone else.

Novare, Resilient Africa and Persianas Investments who control 40% of Nigeria’s formal retail and own 10 of the 25 malls that Shoprite is in have a lot to lose if this process does not run smoothly. We expect them to be involved in this transition that will change who their largest tenant will be.

Where have we seen this before?

  • In November 2013, Woolworths announced plans to exit Nigeria noting high rents and supply chain challenges.
  • In February 2016, Truworths shut down its 2 stores in Nigeria citing stringent import regulations and rising costs as major challenges.
  • In July 2019, Woolworths shut down its 2 stores in Ghana after “a comprehensive review of its operations”.
  • In April 2019, Foschini and Edgars closed down their store in West Hills Mall, Ghana as they review their business strategy and eventually pull out of Ghana.
  • In June 2020, Mr Price announced plans to exit the Nigerian business in H1:2021 after referring to the Nigerian market as a “distraction”.

It is time for Indigenous retailers to dominate

Shares in Shoprite Holdings increased by over 11% on the 3rd of August, 2020 showing that investors are more confident with the decision. Nigeria’s macroeconomic realities do not seem favourable particularly for international retailers due to the foreign exchange volatility.

However, local retailers such as Prince Ebaeno, Hubmart and Jara have better-staying power and are even expanding stores due to the lower exposure to foreign exchange volatility that international retailers have cited as a crucial problem.

These chain of events could establish dominance for indigenous retailers as seen in the Kenyan retail industry with the current largest retail stock in Sub-Saharan Africa. Their first formal mall opened in 1984 and their indigenous tenant pool has grown organically over time.

Indigenous retailers undoubtedly need to be supported but the current immense opportunities could tell a new story for the sector 5-10 years from now.

This article appeared first on Estate Intel

Hyundai Motor America appoints Olabisi Boyle as Vice President of Product Planning And Mobility Strategy

Esan Bolaji
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Hyundai Motor America appoints Olabisi Boyle as Vice President of Product Planning And Mobility Strategy

Aug. 6, 2020 – Hyundai Motor America is strengthening its leadership team with the addition of Olabisi Boyle as the vice president of Product Planning and Mobility Strategy. Boyle will be responsible for guiding the strategic direction of Hyundai’s U.S. vehicle lineup, leading long- and short-range planning, and overseeing market research, business analytics and pricing.

Placing an even greater emphasis on delivering the technologies customers desire now and in the future, this role also includes leadership of Hyundai’s mobility strategy, including IT business solutions, connected car technology and future innovations. Boyle starts on Aug. 10 and will report to Hyundai Motor North America president and CEO José Muñoz.

Hyundai Motor America appoints Olabisi Boyle as Vice President of Product Planning And Mobility Strategy
Olabisi Boyle, Hyundai’s Vice President of Product Planning and Mobility Strategy | www.wordpress-1516176-5827464.cloudwaysapps.com

“Olabisi brings to Hyundai the perfect combination of automotive engineering and product planning experience with an in-depth understanding of the technologies that are going to drive the future of the automotive industry,” said Muñoz.

“She has an outstanding track record of evaluating market trends, leading teams and using her engineering expertise to launch products and services that consumers appreciate and enjoy.”

Boyle joins Hyundai from Visa, where she was most recently the vice president of Connected Commerce, leading the Internet of Things, Tap-to-Phone, and Acceptance Cloud payment products. Prior to her Connected Commerce position, she was the vice president of IoT and Connected Car, where she was responsible for expanding Visa’s in-car payment technology.

Boyle has 20 years of automotive industry experience, including various engineering, product strategy and manufacturing leadership roles at Fiat Chrysler Automobiles and Ford Motor Company.

At Chrysler, she was the director of Engineering Planning and Technical Cost Reduction and prior to that was the chief engineer for Chrysler Town & Country and Dodge Grand Caravan Minivans.

Boyle has been recognized for her career accomplishments and was recently selected to the San Francisco Business Times’ 2020 Most Influential Women in the Bay Area list and was the recipient of the 2018 Women in Payments Innovation Award.

She is an advisory board member for the Los Angeles Auto Show (AutoMobility LA) and was elected as co-chair and board member of the Chrysler African American Network. Boyle also served as a board member of the Detroit Area Pre-College Engineering Program (DAPCEP).

Boyle has a Bachelor of Science in industrial engineering from Columbia University, a Bachelor of Science in physics from Fordham University and a Master of Science in mechanical engineering from Columbia University. 

Hyundai’s technology-rich product lineup of cars, SUVs and alternative-powered electric and fuel cell vehicles is backed by Hyundai Assurance—its promise to create a better experience for customers.

Hyundai vehicles are sold and serviced through more than 820 dealerships nationwide and nearly half of those sold in the U.S. are built at Hyundai Motor Manufacturing Alabama.

Hyundai Motor America is headquartered in Fountain Valley, California, and is a subsidiary of Hyundai Motor Company of Korea.

Ecobank Group announces the 2020 Fintech Challenge Finalists

Esan Bolaji
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Ecobank Group announces the 2020 Fintech Challenge Finalists

Finalists will compete for the top crown on August 21 and be inducted into the Ecobank Fintech Challenge Fellowship to pursue commercial partnerships in Ecobank’s 33 markets across Africa.

Ecobank Group today announced the finalists from the 2020 Ecobank Fintech Challenge. The challenge, in its third edition, is designed to deepen collaboration between Ecobank and Fintechs with Africa focused products.

Ecobank Group announces the 2020 Fintech Challenge Finalists

The 10 finalists Fintechs from 7 different countries, who emerged from a competitive pool of over 600 fintech, will participate in an online Finale scheduled for August 21, 2020.

The 2020 Finalists are:

Always In-Touch Real-time ( South Africa), Fluid AI (India), Franc Group (South Africa), Growth Factor (Ghana), Leaf Global Corporation (Rwanda), Moja Ride (Ivory Coast), Nokwary Technologies Limited (Ghana), Papersoft S.A (Mozambique), Ukheshe Payment Solutions (South Africa), PayChap Technologies (Tanzania).Ecobank Group announces the 2020 Fintech Challenge Finalists

The Finalists will pitch their products to a jury for the cash prizes for the top 3, worth US$10,000, US$7,000, and US$5,000.  All the finalists will be enrolled into Ecobank’s Fintech Fellowship where they will spend the next 6 months exploring partnership opportunities which include:

  • Multinational product roll-out: An opportunity to pursue collaboration with Ecobank and possibly launch products in Ecobank’s  33 African markets.
  • Service provider partnerships: A chance to become a pan-African service partner to Ecobank for Fintechs with the qualities to become product partners and offer joint services with Ecobank
  • Mentoring and networking support: Access to networking and mentoring opportunities within the Ecobank Group and its vast network of global and African partners
  • Integration with existing Ecobank digital offerings: An opportunity to potentially integrate with Ecobank’s existing digital offerings.

Eddy Ogbogu, Group Executive, Operations & Technology said, “We congratulate the 10 Fintechs that have made it to the 2020 Finals. This is an impressive cast of innovators and we  look forward to the Final event where we will honour them and potentially build productive collaborations.”

The Ecobank Fintech Challenge is designed in partnership with the advisory firm Konfidants and is supported by partners across Africa and globally.

Parenting 101: 5 Life Changes To Expect

George Martins
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Parenting 101: 5 Life Changes To Expect

We all respond to a pregnancy announcement differently. Soon-to-be parents start googling and reading everything they can find on pregnancy, trimesters and cravings. Some couples attend pregnancy sessions together and make space in their lives to learn all they can about the coming changes, and this is all good.

But as soon as the baby is born, you realize (like the songwriter Dwayne Michael Carter Jr. said), that every finish line is the beginning of a new race. Nothing prepares for being a new parent like being a new parent.

As the baby grows, your daily lives change almost immediately, and you welcome the new normal (with all its sleeplessness and stress). Here are 5 things you can relate with if you are a new mummy or daddy:

Nothing prepares you

With all the books you have read, and all the sessions you’ve attended, you quickly realize that nothing prepares you for having a new family member who won’t stop crying and suckling.

As you go along, you will begin to understand what each cry means, and what your baby needs at each point, but this takes a while. The other part is he/she does not yet sleep in regular sleeping patterns, so you will be up most nights cooing and making funny faces to get him/her to go back to sleep. Welcome to stage one.

New babies and account balances

The coming of the baby may spell an end to much of your free (and alone) time, but more than that, your monthly budgeting will be radically transformed. All unnecessary purchases will stop, and you will find yourself paying for large tins of baby food that are quite expensive and seem to run out too fast.

Yes. That is the new parent’s life. Even a baby stroller can cost as much as 90k. And we are not even talking about clothes, skincare and diapers yet. So yes, a new baby is cute and all, but prepare your bank accounts for the raid.

Babies make a ton of laundry

Welcome to stage three of the new parent life. You don’t have a washing machine? Don’t even bother. For their tiny size, babies sure make a tremendous mess. Between pooping and throwing up, peeing, and spitting, you’ll have a heap of blankets, bibs, diapers and soiled clothes to handle.

If you can afford to outsource all this laundry, please do. It will help to keep you sane. But then again, outsourcing the laundry may mean a bigger hole in your account balances. Can you afford it? Oh well.

Let’s talk some more about sleep deprivation

Good news: newborn babies sleep up to 18 hours per day. And yet their parents complain about being sleep-deprived all the time. How come? It turns out that even though they sleep 18 hours daily, they’re awake every 2 to 3 hours to eat, and eating can take one hour, easily.

That means you have one or two hours at most to sleep before they’re up again to eat. So essentially you can only sleep one or two hours at a time from when the baby comes back home till they grow up a little. It’s next to impossible to fit anything into this kind of schedule. It’s like you work for this new, extremely demanding boss, and there’s no pay.

New parents are never early for anything

If a new parent tells you they’ll be there at 11 am, recognize that they’re a new parent and 11 can very easily become 3 pm. And don’t blame them. If you’re a new parent, don’t bother scheduling appointments because your baby almost always has other plans for you.

It’s hard enough to get your sleepy self to the bathroom and get the baby ready as well, but there’s always an unknown event waiting to happen. Your baby may decide to throw everything up just as you step out, or poop, or just start crying inconsolably. This is parenting. Get used to it.

Parenting 101 5 life changes to expect - BRANDSPUR

But it’s all worth it in the end

You’ll be surprised how quickly you can forgive the messy clothes, soiled diapers, lack of sleep and everything else when you see your baby smile at you. Most of you can never forget the first time you got your baby to laugh out loud. It is for these precious moments that new parents crave. The smile of your newborn can very well count as sufficient payment for all the stress.

Now can you imagine what that baby’s life would be if for any reason you just walked out of the house and didn’t return? As your baby learns to smile, laugh, sit, crawl and walk, it is important to begin to build a financial hedge for him/her, a trust that can take care of the other needs your child will have as they grow: tuition, healthcare, travel, etc.

By doing this, you make sure that nothing ever leaves your child stranded, whether you’re available or in a different country. A trust fund will fund your child’s dreams and welfare autonomously. The Heritage Trust offers a secure and reliable trust fund for your child from day one. It has loads of great benefits too, both now and at every stage of your child’s growth.

United Capital

Corruption has modernized, so should anticorruption initiatives

George Martins
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Corruption has modernized, so should anticorruption initiatives

The World Bank’s commitment to helping countries control corruption dates to 1996 when President James Wolfensohn made his “cancer of corruption” speech. It was the first time the issue was given such prominence by a World Bank President and put squarely on the agenda of the institution.

A lot has happened since then. In 1996 only 22 countries had the right to information laws, compared to 123 today. The Open Data revolution had not yet begun; neither technology nor attitude supported such openness in most countries.

Global standard-setting instruments such as the OECD Anti-Bribery Convention and the UN Convention Against Corruption were envisioned at that time but not enacted. Others, such as the Extractive Industries Transparency Initiative (EITI) got launched and matured since.

Behavioural economics had not yet been recognized by the Nobel Prize committee. No one had heard of GovTech, and the Open Government Partnership had not yet been established. Terms like illicit financial flows and e-procurement were not common, and the Panama Papers and Luanda Leaks were well in the future. And no one had heard of COVID-19.

Addressing corruption not only saves money and stops bad behaviour, but it also helps achieve a wide range of development goals. Think, for a moment, about the many ways corruption can undermine human capital development.

Ghost workers in the education system, kickbacks for school meals contracts and false degrees weaken the efficacy of learning-related spending. Bribery and fraud in procuring pharmaceuticals or medical equipment can weaken survival rates and constrain the ability of children to thrive.

Corruption in infrastructure and among traffic police can lead to unsafe roads, weakening human capital and undermining access to opportunities.

“Corruption has evolved over the last two decades, and in the course of the COVID-19 response. Our approach is evolving as well.”

The World Bank’s approach to controlling corruption needs to keep up with the times. What should we be doing differently? Anticorruption Initiatives—Reaffirming Commitment to a Development Priority outlines an approach, organized around five initiatives.

Global norms and standards are essential in shaping policy and ensuring governments take action. The World Bank’s global perspective can help.

Progress in the criminalization of corrupt acts and in strengthening transparency have shown the value of standards. Can greater consistency in approaches to beneficial ownership transparency, management of conflicts of interest, and other areas do the same? How can we better track progress? The initiative on Global Standards and Monitoring proposes some areas of focus.

Corruption is often transactional but it can also be embedded in networks, tilting the playing field to the advantage of political elites and connected firms. Given what we’ve learned about power, politics, business and corruption, can we do more to address state capture? The initiative on Power and Money takes on this challenge.

Transparency has value in its own right. Access to information is a basic human right. How can we take advantage of new technologies to analyze the torrents of data for patterns we wouldn’t otherwise notice, and better engage stakeholders for oversight, and accountability, and make services more responsive and equitable? The High Definition Transparency initiative supports efforts to respond to these challenges.

Corruption comes in all forms, and these can vary systematically. Controlling patronage networks in customs, for example, calls for approaches different from those needed for embezzlement in state-owned enterprises or bribery in the courts. It’s been 13 years since The Many Faces of Corruption outlined sector-specific approaches.

A Sector-Based Approach will update our work to reflect the changes in technology and thinking. The common definition “abuse of public office for private gain”, projects an image of a lone person doing wrong.

In many cases, though, they get help from bankers and lawyers and accountants, sometimes in off-shore jurisdictions and financial centres in advanced economies. And what about the behaviour of the firms and individuals?

Addressing the Facilitators initiative highlights what can be done in the professions and locations that facilitate corruption and take on the stubborn social norms that surround both bribe payers and bribe-takers.

We will be expanding on each of these initiatives in a series of blog posts. Corruption has evolved over the last two decades, and in the course of the COVID-19 response. Our approach is evolving as well, to reflect the global and local challenges countries face today as well as the new opportunities presented by technology, behavioural and political science insights, a growing global community focused on norms and standards, and partnerships.

Our paper reflects these new realities and sets out a road map to work closely with governments, international partners and civil society to take anti-corruption in new directions and reaffirm that controlling corruption is a development priority.

MTN Group plans to sell off $243m stakes in Jumia

Esan Bolaji
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MTN Group plans to sell off $243m stakes in Jumia

MTN Group is planning to sell part or all of its $243 million interest in Jumia Technologies AG. This is part of the telco’s effort to raise funds to pay down debt and enter new frontiers.

Jumia, popularly called Africa’s Amazon, operates in 14 African international locations which include Nigeria and Ivory Coast, where Jumia Technologies AG still lacks distribution infrastructure.

MTN would be taking advantage of the fact that Jumia’s shares have gained about 142% so far in 2020, recovering from its record lows in 2019.

MTN Group plans to sell off $243m stakes in Jumia

MTN, which had earlier marked the online retailer as a non-core business, is enlivening plans for a sale after Jumia’s shares pitched 142 per cent this year, recuperating from a dip in 2019. Although, no end choice about the sale has been made, due to the fact the plans are private, Bloomberg reports.

The Johannesburg-based MTN has been disposing of non-core property as part of the company’s approach to limit debt and drive growth for the future.

MTN Group additionally has a 29 per cent stake in IHS Towers, which it can also liquidate in the future.

Meanwhile, Africa’s biggest wireless service by footprint has generated $812 million in sales of assets that included selling its towers holdings in Ghana and Uganda to American Towers Inc.

The company plans include the bid for a permit to enter Ethiopia, one of the biggest markets in Africa that are to privatize its telecommunications industry.

MTN Group revenue rises 9.4% in H1, announces plans to exit Middle East

Esan Bolaji
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0
MTN Group revenue rises 9.4% in H1, announces plans to exit Middle East

MTN Group will exit its operations in the Middle East to become an Africa-only-focused telecommunications operator, with its first move to sell off its 75% stake in MTN Syria.

In a statement issued alongside its interim financial results on Thursday, the group said: “MTN has resolved to simplify its portfolio and focus on its pan-African strategy and will, therefore, be exiting its Middle Eastern assets in an orderly manner over the medium term,”

MTN Group reported that its service revenue rose 9.4%, buoyed by strong demand for data and financial services in Ghana, Nigeria and South Africa during the coronavirus lockdown.

Overall data traffic increased by 91.5% year-on-year.

MTN Group revenue rises 9.4% in H1, announces plans to exit Middle East

The group is already in “advanced discussions” to sell its 75% stake in its Syrian subsidiary, CEO Rob Shuter said in a call with journalists. It is negotiating with TeleInvest, the 25% owner of the Syrian business, about the sale.

According to the group, “MTN Syria contributed 0.7% to MTN’s reported earnings before interest, tax, depreciation and amortisation (Ebitda) in the first half of 2020″.

Shuter said the initial focus will be on exiting its operations in Syria, Yemen and Afghanistan. However, it also plans to divest of its 49% of its stake in MTN Irancell in time.

“As part of the review of our portfolio, we believe the group is best served to focus on its pan-African strategy and to simplify its portfolio by exiting the Middle East region in an orderly manner over the medium term. The Middle East assets contributed less than 4% to group earnings before interest, tax, depreciation and amortisation in the first half of 2020,” it said.

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