Fitch Affirms Guaranty Trust Bank at ‘B+’; Stable Outlook

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Fitch Affirms Guaranty Trust Bank at ‘B+’; Stable Outlook

London-29 October 2019: Fitch Ratings has affirmed Guaranty Trust Bank Plc’s (GTB) Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘B+’ with Stable Outlook and Viability Rating (VR) at ‘b+’. A full list of rating actions is at the end of this rating action commentary.

KEY RATING DRIVERS

IDRS, VR, NATIONAL RATINGS AND SENIOR DEBT

GTB’s IDRs and National Ratings are driven by the bank’s intrinsic creditworthiness, as defined by its VR, the highest assigned by Fitch to a Nigerian bank. Like all Nigerian banks, GTB’s VR is constrained by the domestic operating environment where economic recovery is fragile and opportunities for sound credit growth are limited. The operating environment has a high influence on VR. The VR also considers GTB’s strong financial metrics and high-performance ratios, comfortable capital buffers and highly concentrated loan book.

GTB is one of Nigeria’s largest banks, controlling an overall domestic market share of approximately 11%. The experienced management team delivers especially strong performance metrics and GTB is the country’s most profitable bank. It consistently achieves an annual operating return on average assets in excess of 5%.

Strong earnings support capitalisation and capital adequacy is a rating strength. GTB’s Fitch Core Capital/risk-weighted assets ratio reached a high 26.7% at end-June 2019 and the bank’s internal target is to maintain regulatory capital ratios in excess of 17%, comfortably above the 15% prudential minimum required.

Asset quality ratios compare well with peers and efforts to recover impaired loans are proving successful. The impaired loans/total loans ratio is on a declining trend, improving to 6.8% at end-June 2019. Loan loss reserve coverage reached 80%, which appears adequate considering available collateral. GTB’s IFRS 9 Stage 2 loans were equivalent to approximately 11% of loans at end-June 2019, which is broadly in line with close peers.

Single borrower and sector concentrations are significant, as is common in Nigeria, exposing the bank to unexpected credit losses. At end-June 2019, the top 20 exposures were equivalent to approximately 47% of gross loans and around 40% of loans were extended to oil-related companies. Asset quality in the oil-related portfolio is sound, suggesting good underwriting standards. However, oil price trends can be volatile and the high level of concentration indicates a relatively high-risk appetite. Given this, we consider GTB’s efforts to boost loan loss reserve coverage as prudent. Loan loss reserves covered around 80% of impaired loans at end-June 2019 and management’s target is to increase this to 100% by end-2019.

GTB typically operates with a high net open US dollar structural position, but the market risk is well monitored and risk management tools are well developed. Relative exchange rate stability since 2017 reduced the impact of exchange rate fluctuations on profits and balance sheet ratios. GTB is positioned to benefit from naira depreciation as 40% of assets and 28% of liabilities were the US dollar-denominated at end-June 2019.

GTB’s balance sheet is liquid. Loan deleveraging continued in 1H19, while deposit inflows are still positive (up 6%). Excess liquidity continues to be invested in Nigerian government securities. Regulatory pressure to encourage banks to lend to the real economy may result in positive loan growth during 2H19. Liquidity management is sound in both foreign and local currency.

GTB’s National Ratings reflect its creditworthiness relative to the best credits in Nigeria.

SUPPORT RATING AND SUPPORT RATING FLOOR

Fitch believes that sovereign support to Nigerian banks cannot be relied on given Nigeria’s weak ability to provide support, particularly in foreign currency. In addition, there are no clear messages of support from the authorities regarding their willingness to support the banking system. Therefore, the Support Rating Floor for all Nigerian banks is ‘No Floor’ and all Support Ratings are ‘5’. This reflects our view that senior creditors cannot rely on receiving full and timely extraordinary support from the Nigerian sovereign if any of the banks become non-viable.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE RELEVANCE SCORES

The highest level of environmental, social and governance (ESG) credit relevance for GTB is a score of 3. ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on our ESG Relevance Scores, visit www.fitchratings.com/esg.

RATING SENSITIVITIES

IDRS, VIABILITY RATING, NATIONAL RATINGS AND SENIOR DEBT

GTB’s IDRs are sensitive to a rating action on its VR. GTB’s VR is primarily sensitive to our assessment of Nigeria’s operating environment because the bulk of its activities are concentrated in its home country and the correlations between the sovereign and banking sector are high. The Stable Outlook on the sovereign rating suggests changes are not expected over the rating horizon. The VR is also primarily sensitive to a material deterioration in asset quality. This could be triggered, for example, by oil price weakness. GTB’s National Ratings are sensitive to a change in its creditworthiness relative to other Nigerian banks. An upgrade of GTB’s IDRs would require an upgrade of the Nigerian sovereign rating.

SUPPORT RATING AND SUPPORT RATING FLOOR

The Support Rating and the Support Rating Floor are sensitive to any change in assumptions around the propensity or ability of the sovereign to provide timely support to the bank. Given Nigeria’s sovereign ratings, this is not our base case.

The rating actions are as follows:

Guaranty Trust Bank Plc
Long-Term IDR affirmed at ‘B+’; Outlook Stable
Short-Term IDR affirmed at ‘B’
Viability Rating affirmed at ‘b+’
Support Rating affirmed at ‘5’
Support Rating Floor affirmed at ‘No Floor’
National Long-Term Rating affirmed at ‘AA(nga)’
National Short-Term Rating affirmed at ‘F1+(nga)’

 

Ecobank Offers free access Charge on *326# USSD Short code; Calls for Stakeholder Collaboration

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Ecobank Offers free access Charge on *326# USSD Short code; Calls for Stakeholder Collaboration

Lagos, October 30, 2019 – Ecobank Nigeria has announced that access to its *326# Unstructured Supplementary Service Data (USSD) is at zero cost to the consumer. By this announcement an Ecobank customer who performs transactions on the bank’s platform by dialling *326# is free of the USSD session fee.

Patrick Akinwuntan, Managing Director, Ecobank Nigeria who declared this at the ongoing 2019 Nigeria Fintech Week in Lagos, said all stakeholders must come together to make USSD short code services free to all users, as a key initiative to drive financial inclusion in Nigeria. He noted that for the industry to grow, all stakeholders should allow consumers to access banking and financial services such as the USSD shortcodes at zero session use cost, to deepen financial inclusion in Nigeria and further drive its economic development.

Mr. Akinwuntan, who asked stakeholders to adopt the strategy of shared infrastructure that will enable easy compliance to the risk and regulatory policies, opined that skills development is at the top of core requirements for successful digital platform proliferation. In his words “when the ecosystem comes together, we can unlock value for all partners and ensure rapid innovation. Clients’ data protection and the professional handling of this data are key to instilling consumer confidence in the system, and the entire ecosystem is only as strong as its weakest link. All participants need to adopt world-class standards for ensuring cybersecurity for the good of our customers”.

Furthermore, the Ecobank Managing Director said that in order to achieve a digitized Africa, countries must have positive regulatory oversight that encourages and facilitates collaboration amongst all stakeholders to unleash value which will include the much-needed investment in awareness and digital payment usage.

In his comment, President of the Fintech Association of Nigeria, Dr Segun Aina said the Nigeria Fintech Week brings together various organizations and individuals in the disruptive technology ecosystem both within and outside Nigeria. He further stated that the association has recorded in excess of four thousand participants across various sectors from over twenty countries across all the continents who have registered to attend different aspects of the week’s events.

“With the quality, diversity and comprehensiveness of the Nigeria Fintech Week, this annual event has obviously received overwhelming market acceptance and endorsement as the main annual Fintech and digital stakeholder platform to look forward to. We, therefore, expect all stakeholders to use the Nigeria Fintech Week as the main annual platform to showcase Nigerians creativity and remarkable exploits in value-enhancing Fintech products and services”, he noted.

The Fintech Association of Nigeria was created during the 1st National Fintech Conference in 2017 and can today boast of over one hundred institutional members from nine sectors of the economy all working together to connect, accelerate and advocate. Similarly, the Africa Fintech Network was inaugurated during the 3rd National Fintech Conference and the maiden Africa Fintech Festival in December 2018. Today, less than one year after its inauguration, the association has twenty-nine member countries and country National Fintech Associations. The Africa Fintech Network has been collectively supportive of continental initiatives such as the Africa Continental Free Trade Agreement (AfCTA) and Digital Africa, built global partnerships and recognized by the African Union, United Nations Economic Commission for Africa, African Development Bank, Afreximbank and others. These self-regulated entities have brought needed coordination to the Fintech ecosystem in Nigeria and Africa with linkages to and alliances with similar organisations in other markets across the world.

New Poll Reveals That Nigerians Are Not Willing to Pay for National Identity Card Renewal Fee

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New Poll Reveals That Nigerians Are Not Willing to Pay for National Identity Card Renewal Fee

Abuja, Nigeria. October 31st, 2019 – The National Identity Management Commission (NIMC) through its official twitter handle on Monday 14th, October 2019, announced that the renewal of the National Identity Card will cost ₦3,000 as well as charging the sum of N5,000 for card replacement. However, a new public opinion poll released by NOIPolls has revealed that 80 percent of Nigerians are of the view that the national identity card should not have an expiration date. Also, 77 percent of Nigerians interviewed disclosed that they are not willing to pay ₦3,000 for renewal of the card mainly because it is too expensive (40 percent) and they believe the card should be free of charge (35 percent). Nonetheless, 96 percent of Nigerians mentioned that they acknowledged the need and importance of having a national identity and this assertion cuts across gender, geo-political zones and age-group.

Further findings showed that 78 percent of the respondents (18 years and above) said that they have applied to obtain the national identity card. Out of the 78 percent who have applied, 65 percent claimed to have a temporary card, while 26 percent specified that they have obtained the permanent card though most of the respondents in this category had to wait for a long period of time before getting the permanent version; sometimes above one year.

In terms of improving the process involved in registration and collection of the national identity, a larger proportion of Nigerians recommended that more registration centres should be created, collection of the permanent card should be immediately after registration and 7 percent advised that the collection centres should be decentralized. Given the above recommendations by Nigerians, it is imperative that the NIMC and all stakeholders involved in the registration and collection exercise act swiftly to improve the overall process, by reducing the waiting time for the collection of permanent Identity cards as well issues bordering the new national identity card expiration policy. These are the key findings from the National Identity Card Poll conducted by NOIPolls in the week commencing October 21st, 2019.

The National identity card is a document that proves, states and protects the legal status of every Nigerian that is a cardholder. Every Nigerian from 16 years and above is eligible for the national e-ID card.

Beyond easy identification, the national e-ID card has other functions which include:

  1. Europay MasterCard & Visa (EMV) – serve as a tool to make payment for goods and services anywhere in the world.
  2. Match-on-Card (MoC) –serve as a tool to authenticate a person by means of fingerprint
  3. Electronic Public Key Infrastructure (ePKI) – serve as a tool for applying the electronic signature on contracts, applications etc.
  4. International Civil Aviation Organisation (ICAO) – serve as a travel document for regional travel where visa is not required

The first question gauged the perceptions of Nigerians on the importance of having a national identity card and findings revealed an overwhelming majority of Nigerians (96 percent) are conscious of the need to have a National ID card. This assertion cuts across gender, geo-political zones and age-group.

The poll results also revealed that 78 percent of Nigerians (18 years and above) reported that they have applied for the national identity card, however, 22 percent claimed that they have not applied to obtain a national identity card. Nigerians residing in the North East (93 percent) and North West (88 percent) zones have more respondents who have applied for the card.

Out of the 78 percent who indicated that they have applied for the card, the majority (65 percent) disclosed that they currently have the temporary national identity card issued to them at the point of registration, while 26 percent revealed that they currently have the permanent national identity card. Interestingly, 6 percent disclosed that they did not get either the temporary or the permanent national identity card after they had enrolled for the exercise.

Subsequently, 26 percent of the respondents who stated that have obtained the permanent national identity were further probed and findings showed that it took over a year for 42 percent of that proportion to obtain permanent national identity card.

Similarly, 22 percent of Nigerians who stated that they have not applied for the national identity card were further probed and 35 percent of that proportion reported that they did not apply because they are not aware of the application procedures. While 24 percent mentioned that they do not have time to go register, 15 percent lamented that the process of registering for the national identity card is too stressful amongst other reasons mentioned.

Findings revealed that a large share of Nigerians (80 percent) are not aware of the national identity card renewal policy upon expiration. This cuts across gender, geo-political zones and age-group. On the other hand, 20 percent acknowledged that they are aware of the new renewal policy of the national identity card upon expiration.

Further findings from the poll showed that majority of Nigerians (80 percent) were of the view that the national identity card should not have an expiration date however, 20 percent stated otherwise.

Opinion on the fee for the renewal of the national identity card revealed that majority of Nigerians disclosed that they are not willing to pay the sum of ₦3,000 for the renewal of the national identity card. Nigerians living in the North East region accounted for the larger proportion of Nigerians who made this assertion.

Respondents were further asked to state reasons for their response and out of the 72 percent who said that they are not willing to the ₦3,000, 40 percent mentioned that they are not willing to pay because they believe that ₦3,000 is unaffordable. While 35 percent mentioned that the national identity card should be free, 15 percent believe that it is their rights as citizens to obtain the national identity card free of charge.

On the other hand, those who think it should be paid for said it is because they believe the national identity card is important. This is followed by 25 percent who are willing to pay for it to be identified as citizens while 24 percent said that they will pay the ₦3,000 only if it is passed into law.

When asked of ways of easing the process of obtaining the national identity card, almost half of the respondents (46 percent) recommended that the government should open more registration centres. Additionally, 27 percent suggested that collection of the national identity card should be done immediately after registration while 7 percent advised that the collection centre should be decentralised amongst other recommendations.

In conclusion, on the knowledge of citizens with respect to having a national identity card, the poll revealed that majority (96 percent) of Nigerians nationwide are aware of the significance of having a national identity card as citizens. This significance was evenly expressed across all geopolitical zones as well as across both gender category. The poll also showed that about 8 in 10 (78 percent) Nigerians (18 years and above) have applied to obtain their national identity cards.

Furthermore, analysis on the current status of Nigerians regarding their national identity card showed that majority (65 percent) were issued temporary Identity cards while 26 percent of those who had applied received permanent national Identity cards. Also, 6 percent of the proportion of Nigerians who had applied stated that they do not have either the temporary or permanent card. Sadly, the poll on examining the time frame for receiving a permanent card after initial enrollment or capture showed that 42 percent of Nigerians who had enrolled got their national Identity cards after a year or more.

Consequently, regarding awareness on the recent national identity card renewal policy upon expiration, the poll revealed that only 20 percent of Nigerians were aware of the policy. Additionally, majority of Nigerians do not think that the national identity card should have an expiration date and are not willing to pay for renewal on expiration mainly because they believe that the ₦3,000 renewal fee is unaffordable.

The poll has revealed that most Nigerians who have enrolled for their national identity card were only issued the temporary version and had to wait for a long period of time before getting the permanent version; sometimes above one year, it is imperative that the national identity management commission and all stakeholders involved in the registration and collection exercise act swiftly to improve the overall process, by reducing the waiting time for the collection of permanent Identity cards as well issues bordering the new national identity card expiration policy. Finally, the commission will also do well to educate Nigerians on the identity card renewal policy.

Nigerian Breweries Plc 9M-19: …Marred by weak earnings amid increased excise duty

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Nigerian Breweries Plc 9M-19: …Marred by weak earnings amid increased excise duty

Unimpressive earnings in Q3’19, albeit relatively better.

Nigerian Breweries (“The Group” or “The Company” or “NB”) reported an improved Q3’19 result although the Company made a loss in Q3’19. Net earnings in Q3’19 stood at a loss of N1.04bn in Q3’19 relative to a loss of N3.65bn in Q3’18. The reduced loss-making position stemmed from a 12% decline in cost of sales from N46.77bn in Q3’18 to N40.97bn in Q3’19, thus resulting in a cost savings of N6bn as net revenue remained flat at N65.40bn in both periods. However, the Company incurred higher operating expense (+6% from N22.74bn in Q3’18 to N24.17bn in Q3’19), and higher finance costs (+142% from N1.19bn in Q3’18 to N2.89bn in Q3’19); the savings of N6bn made from the cost of sales line was able to reduce the extent of losses incurred in Q3’19.

On a standalone basis, following a lower cost of sales in Q3’19, gross profit increased by 32% year-on-year from N18.63bn in Q3’18 to N24.52bn in Q3’19. Thus, the gross profit margin stood at 37%. Operating profit rose at N709.65mn, implying an operating margin of 1%. The wide disparity between a gross margin of 37% and an operating margin of 1% arose from higher operating expense during the period. Operating expense margin stood at 29% in Q3’19 (Q3’18: 26%) due to a 6% year-on-year increase in operating expense.

Consequent to a 140% increase in finance cost from N1.22bn in Q3’18 to N2.93bn in Q3’19, profit before tax nosedived into the negative territory, posting a loss of N2.19bn. The Company also reported a loss after tax of 1.04bn.

Brewers struggle amid unfavourable policies

The disappointing run continues for Nigerian Breweries, as evident in its 9M’19 numbers. Gross revenue in 9M’19 (January 1, 2019, to September 30, 2019) grew slightly by 2% year-on-year. However, a 43% increase in excise duty expense from N16.93bn in 9M’18 to N24.25bn in 9M’19 resulted in a 1% decline in net revenue from N238.07bn in 9M’18 to N235.68bn in 9M’19. On the excise duty policy, the Federal Government approved an increase in excise duties on tobacco and alcoholic beverages which became effective on June 4, 2018. The policy was to be introduced in phases over three years (from 2018 to 2020).

The sharp increase of 43% in excise duty was a combination of a low base in duties in the first half of the year (H1’18: N0.20 vs H1’19 N0.35) and higher excise duty in the third quarter of the year (Q3’18: N0.30 vs Q3’19: N0.35), as the excise duty became effective on June 4, 2019. (See table below).

Impact of heightened competition and weak macroeconomy depress bottom-line Although gross profit grew by 2% from N95.72bn in 9M’18 to N96.17bn in 9M’19, operating profit, however, declined by 9% year-on-year from N27.74bn in 9M’18 to N25.17bn in 9M’19. The decline in operating profit was owing to a 12% increase in marketing and distribution expenses. The rising competition in the breweries industry has prompted a rise in the sales and marketing expenses of the major players, in a bid to protect market share. Notably, administrative expenses declined by 12% year-on-year from N16.18bn in 9M’18 to N14.23bn in 9M’19; it was not enough to offset the 12% increase in sales and marketing expenses.

Finance cost spiked by 49% year-on-year, from N5.51bn in 9M’18 to N8.18bn in 9M’19. The increase in finance cost majorly arose from a 55% increase in average debt levels from N37.18bn 9M’18 to N72.82bn in 9M’19; majorly resulting from an increase in overdraft facility by N28.14bn. The group generated lower cash flows from operating activities in 9M’19 on the back of weak macroeconomic fundamentals. Lower revenues relative to higher cost of operations dampened the cash flows from operations, in which the Company had to drawdown overdraft facilities to support operations.

Consequently, profit before tax fell by 23% year-on-year from N22.48bn in 9M’18 to N17.22bn in 9M’19; while profit after tax fell by 17% year-on-year from N14.79bn in 9M’18 to N12.23bn in 9M’19.

Our View

We have revised our FY’19 EPS estimate from N1.62 to N1.73, following a better Q3’19 performance. The Company incurred a lower-than-expected finance cost in Q3’19 (WSTC estimate: N3.13bn vs NB actual: N2.93bn). As noted above, the major bottlenecks that dragged the performance of Nigerian Breweries in 9M’19 were higher excise duties, higher marketing expenses and higher finance costs. Although we expect the impact of increased excise duties to normalise in FY’20, however, we cut our FY’20 to FY’23 earnings estimate factoring adverse macroenvironment (unfavourable payment terms, uncertain account receivables) and heightened competition in the industry.

We also believe that the breweries industry is relatively fragmented, where no single player has enough influence to move the industry in a single direction. As a result, we do not see the possibility of a price increase in the near to medium term, especially considering the weak purchasing power of consumers. We also think that the direction of prices in the industry will be based on the actions of other market players in the industry.

Valuation

We are valuing NB at a fair value of N51.36. We continue to see increased competition in the industry. Though we acknowledge that NB remains the market leader in the industry, we see the extent of leadership gap closing in the medium to long term. The downward revision of our fair value from N73.55 to N51.36 reflects the dimmer outlook of earnings, dividends, and cash flows.

In arriving at our fair value estimate of N51.36, we used a blend of Free Cash Flow, Dividend Discount Model, and Residual Income Model valuation methodologies. Our valuation inputs include a higher risk-free rate of 14.17% (previous: 13.68%), an equity risk premium of 6%, and an adjusted beta of 0.63. Thus, our cost of equity increased to 18% (previous: 17%). At the current price of N46.25, the stock trades at an 11% discount to our fair value estimate. Hence, we recommend a HOLD.

Financial statement summary

WSTC Nigeria

Verve Card Formally Announces Its Acceptance In Ghana

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Verve Card Formally Announces Its Acceptance In Ghana

Verve, a leading payments technology and card business in Africa, has partnered with the Ghana Interbank Payment and Settlement Systems Limited (GhIPSS) to launch acceptance in Ghana. This initiative by Verve international also signals acceptance across several other African countries.

On the back of this strategic partnership between GhIPSS & Verve International which took place at Accra Marriot Hotel, on Friday, October 25, 2019, Verve Card users (both Verve Global & Verve Classic) can now transact across all channels throughout Ghana.  This acceptance of Verve card is available in a total of 22 Africa countries, including; Ghana, Kenya, Uganda, Tanzania, Nigeria, Gabon, Gambia, among others.

Mike Ogbalu III, CEO of Verve International stated that the launch was strategic because Verve and GhIPSS share a similar vision to grow digital payments in Africa. He said: “We are excited about this occasion. It marks the beginning of great synergy between two organizations with similar aspirations to drive the growth of digital payments across Africa. Because we typically share the same payment and economic challenges in various African countries it’s also logical that the solution should be via African collaboration. In our attempts to solve these challenges, we realized the importance of partnerships; we also realized that GhIPSS’ vison for Ghana is consistent with that of Verve, to drive the growth of digital payment in Africa. So today we are witnessing the commencement of partnerships between Verve International and the Ghanaian financial and payment ecosystem, to grow digital payments, intra-Africa trade and ultimately drive economic prosperity.”

Archie Hesse, Chief Executive Officer of GhIPSS, said that the partnership was a welcome development as it had the capacity to boost the Ghanaian digital payment system; highlighting that the development of the digital payment system in Africa was critical to Africa’s competitiveness in the world. He said: “We are excited to collaborate with Verve International and to midwife Verve acceptance in Ghana. We are positive this will open a new vista of opportunities for improved services and development of more home-grown solutions. The card portfolio within our banks will increase and Ghanaian cardholders will have more exciting world-class services & benefits to enjoy. Together, GhIPSS and Verve will develop the digital payment ecosystem across the sub-region and beyond.”

With this partnership everybody wins; the banks in Ghana, Banks in other African countries, regulators, & most important customers, as it becomes easier than ever before for customers to pay for goods and services effortlessly. Verve Cardholders travelling across the African continent for business or for pleasure rest assured of the removal of transaction barriers. We are confident that this increase in transaction velocity will accelerate trade, cooperation, commerce, cultural exchange & lift more of our people out of poverty. We anticipate a ripple effect on adjunct sectors, expansion of digital payment services in Ghana, Nigeria & African cross borders at a scale that competes with what obtains in Western countries.

As Verve Card accepting countries widens, issuing countries increase & strategic partnerships among Africans deepen, we are building an African payment gateway that we can all be proud of.

It will also be recalled that in August 2019, Verve launched its first international transaction in New York with a new product in its portfolio – Verve Global card.

Interswitch Holds Code Week For Slum Children

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Interswitch Holds Code Week For Slum Children

Interswitch, a Pan-African integrated digital payments and commerce company in partnership with Slum2school Africa, recently hosted ‘Slum-to-school code week’ in line with the Africa Code Week. The four-day event which held at Adekunle Primary School, Makoko, Lagos started on Tuesday, October 22 and ended on Friday, October 25, 2019.

The Slum-to-school code week is in line with the Interswitch’s “Switch-A-Future” CSR objective that specializes in harnessing career opportunities amongst secondary students in the Science, Technology Engineering and Mathematics (STEM) paths. A total of 30 students who reside in Makoko drawn from various secondary schools in Lagos, benefitted from the project.

Interswitch aims to drive the study of STEM through students across different age and social categories. This commitment is further reiterated by the company’s social investment in an innovation laboratory at the slum to school. The investment includes building and managing the laboratory since its inception in May 2018.

Throughout the code week, volunteers from Interswitch came in every day for two hours after school to give the children hands-on training on coding. On the last day, the children made group presentations of what they had learnt to the Interswitch CSR team.

Commenting at the event, Interswitch Group Head, Corporate Segment Marketing, Enyioma Anaba, stated that she was impressed with the progress the students had made in such a short while.  She said: “This just goes to show how smart these kids are.  In less than one week, we can see these children coding, building websites and writing different computer programmes.  As a company, our CSR focus is on education, innovation and leadership; so, it is very impressive what the right environment and right mindset can do for students”.

Enyioma also encouraged the children to dream big and never be afraid to achieve.

One of the beneficiaries, Hunye Hubert expressed his gratitude to Interswitch, saying that he was now more enlightened about his chosen career path. He said: “We were taught coding and various aspects of computer programming.  Also, the talk we were given has helped me become more conscious of pursuing a career in STEM”.

Emirates President Tim Clark Weighs In On The Boeing 737 Max Crisis

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Emirates President Tim Clark Weighs In On The Boeing 737 Max Crisis

On First Move, CNN’s Julia Chatterley interviewed the President of Emirates Tim Clark. Clark spoke about the Boeing 737 Max crisis and the uncertainty around Brexit.

Following two fatal crashes, Boeing was forced to ground its 737 Max planes in March 2019. This affected airlines across the world, including Emirates. Clark believes it has disrupted Boeing and compelled the company to re-evaluate itself, “This will be a real disruptor to Boeing, it is. I think they will re-examine themselves, that’s what they should be doing, turning themselves inside out.”

As well as affecting current flights, the grounding had an impact on orders for new 737 Max planes. Clark expresses doubt that Boeing’s competitor Airbus will be able to fulfil any extra orders, “For Airbus to crank up manufacturing plants to produce the Max cancellations is probably not going to be feasible.”

Boeing is hoping to have the 737 Max airborne again by the end of the year. However, Clark tells Chatterley that he feels this date will not be reached, “I would say sometime in the first quarter of next year, calendar – January, February, March, latest April.”

Clark goes on to describe Boeing as, “a company which is haemorrhaging cash”, but believes that “They will get it right” when it comes to solving the 737 Max crisis.

Emirates also has orders for the new Boeing 777X which was due to be delivered by next June. Again, Clark is doubtful that Boeing will reach this date, “I would say that’s a little bit optimistic. Q3 of 2020 I would say… my money’s on Q1 (2021).”

Clark also spoke about Brexit and the uncertainty it is causing. He said that the Brexit process has been, “Pretty ugly”, and that deliberation cannot be allowed to go on for much longer, “This cannot go on indefinitely. And if it is allowed to go on indefinitely, the destabilisation of both the European economies and the UK will be out there for so long. It’s not a good place to be in.”

Mudassir & Brothers To Invest $50Million To Establish Textile Factory

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Mudassir & Brothers To Invest $50Million To Establish Textile Factory

A Kano based textile trading company, Mudassir & Brothers had stated that it has commenced preparation that will lead to the establishment of a brand new textile factory worth $50 million to boost the state’s and nation’ s economy as well as to create employment opportunities.

Speaking during a news conference held in his office on Saturday, the company’s Chief Executive Officer Alhaji Mudassir Idris Abubakar stated that already Kano state government has approved the allocation of a piece of land for the establishment of  the factory adding that other preparatory arrangements are in the pipeline for the actualization of the project that will create more jobs for Nigerians.

{Mudassir & Brothers textiles trading company in Kano}

‘I would also like to express our profound gratitude to his Excellency Governor Abdullahi Umar Ganduje, for his commitment towards ensuring that Kano takes its former position of the best textile manufacturing state, and this allocation of land is a testimony to that,” said the chairman Alhaji Abubakar.

‘’The governor approved 22.5 hectares of land for us in line with the Federal Government drive to support the establishment of textile and garment industry.’’

‘’By the time the factory is established, over 10,000 employment will be created. Though presently we have more than 500 staff on our payroll.’’

The chairman further stated that there is a strong need for the Central Bank of Nigeria (CBN) to as a matter of national interest consider a review of some of its policies to enable business activities to run smoothly within the nation.

He added that, though the project is so huge with a lot of competition with other sectors that deals in textiles, his company is seriously committed to ensure that the project is completed and executed within the shortest period of time.

41 Startups From Across Africa Are Heading To Lisbon Next Week, Here’s What They’re Up To

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41 Startups From Across Africa Are Heading To Lisbon Next Week, Here’s What They’re Up To

Starting next Monday, the world’s largest technology conference according to the Financial Times, will begin in Lisbon. This year the event has seen more participation from the African continent than ever before. From top speakers to startups set to compete among some of the world’s most highly sought after companies, here’s what they’ll be doing:

Top speakers and talks
Here is a selection of featured speakers from across the continent, with information on their speaking slots, stages, topics and other panellists taking part in their discussions.

Tunde Kehinde – Co-founder, Lidya: Debunking the unbanked: Bringing payments to the masses.

The concept of unbanked people is commonly referenced, especially within emerging markets. But is it papering over the cracks of a deeper problem? This session will explore how to best provide financial services to people in emerging economies, going beyond mere banking.

Fouzia Adjailia – Roboticist, Department of Cybernetics and Artificial Intelligence, University of Kosice: Our future doesn’t have to be a boring dystopia
If you sometimes feel like we’re headed toward a very dull dystopia, you’re not alone. In this panel, we’ll discuss what the future might look like, without the misery.

Siyabulela Mandela – Lecturer, Nelson Mandela University: The long walk to peace
The path to peace for any society after a period of conflict is fraught with danger. The majority of civil conflicts backslide within ten years of finishing. Shortening the path from conflict to peace is what this panel – including Nelson Mandela’s grandson – will explore.

Startups by numbers
This year, Web Summit will welcome 41 startups from 13 countries in Africa. The five most represented countries are; Egypt (14), Angola (5), Nigeria (5), Rwanda (3), Kenya (3) and Tunisia (3). Fintech startups have the highest representation of Africam startups, followed by eCommerce and Retail, and Enterprise Software Solutions.

Growth Summit
Growth Summit brings together the founders and leaders of the world’s highest growth companies. Here is a selection of the African companies of tomorrow, which will define the technology of the near future:

Olaedo Osoka – CEO, Daystar Power
Expensive and unreliable power represent a heavy burden for Africa’s businesses, impeding their growth and development. In two years, Daystar Power has built an ecosystem to provide power to over 100 locations in West Africa. CEO of the company, Olaedo, will outline Daystar Power’s growth trajectory in bridging Africa’s power gap with clean and reliable power.

Tosin Eniolorunda – Founder, TeamApt
The founder of financial technology company TeamApt discusses his plans for expansion from Nigeria.

Olugbenga Agboola – Co-founder, Flutterwave Inc
Co-founder of Flutterave, Olugbenga outlines how and why he built his payments service.

PITCH Competition
PITCH is the startup competition at Web Summit that brings together the world’s leading early-stage startups for a live on-stage battle Of the near to 900 applications, 135 have been shortlisted to compete for the winning title. From those selected, a startup from Angola has made it to the competition:

Appy
Appy is building bridges between people and healthcare services. Users can book appointments, order medicines and subscribe to health insurances.

Startup Showcase
Startup Showcase is an all-new stage at Web Summit 2019. Expect quickfire presentations with startups showcasing their solutions to the biggest issues in their fields.

Seven startups from across Africa will be taking the stage this year. Here is a selection of the startups:

Bonako Games – Cape Verde
Bonako Games Arena, the future of African digital games. We are changing the rules of the video games market. Let’s make history together!

Complete Farmer – Ghana
An end-to-end digital agriculture platform that makes it easy for industries to source for food raw materials and for anyone to own a farm.

Botme – Egypt
Botme is a chatbot building platform that helps businesses to turn conversations into sales.

The Clock Is Ticking for Traditional Real Estate Models with Arrival of Proptech Startup Bluenest

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The Clock Is Ticking for Traditional Real Estate Models with Arrival of Proptech Startup Bluenest

Amidst surging investor interest in the Singapore property market, Bluenest’s tech-based model streamlines the entire purchasing and selling process for consumers.

 

SINGAPORE – Media OutReach – Oct 31, 2019 – Seamlessness and
transparency will soon become the new hallmarks of property transactions for
savvy consumers.

Backed by Rocket Internet, tech-based real estate agency Bluenest eliminates the
inefficiencies currently present in the purchasing and selling process.

“Property agents these days are like entrepreneurs, managing the
entire customer journey themselves from lead sourcing to paperwork at varied
commission rates,” says Bluenest founder Jeff Lim.

However, these one-man shows typically mean a long, time-consuming
process for both agents and consumers. Real estate transactions can last around
6 months from start to finish, covering everything from house viewings to legal
processes.

Bluenest’s A.I. and data-based platform closes the loop between
buyers and sellers and aims to cut in half the average time it takes to
transact a property.

The technology available to its agents also allows the firm to
deliver greater cost savings to end-users. For instance, Bluenest charges only
1% in commissions for premium brokerage services compared to the standard
market rate of 2%.

Like the owner-listing platforms that have grown in popularity in
recent years, Bluenest’s goal is to enhance the transacting experience for
consumers.

However, the company’s competitive edge lies in the advisory
services that its agent pool offers. Using tech to automate the repetitive
processes involved in the sale, Bluenest agents are better able to focus on
advisory and can deliver a higher-than-average closing rate for their
clients. 

“Digital marketing is our strength,” Lim notes. “We market
properties as an agency rather than as lone individuals.” This integrated
approach enables them to help homeowners sell their properties at higher prices
and in a shorter time frame.

The Bluenest platform is also designed to give sellers full access
to the relevant data and incoming offers, affording them greater control over
their transactions. That way, clients need not worry about under-the-table
dealings by shady agents, as with the recent case of agent fraud in Singapore.

If the results are any indication, Bluenest’s approach of
leveraging technology to change the real estate landscape seems to be working
so far. The company closed its first deal in less than a week and has gained
good traction in the island-state since its launch in September this year.

About Bluenest:

Bluenest is Singapore’s first tech-based real estate agency. Our full-service local consultants use the latest technologies to help you sell smarter and faster. We are your trusted advisor, all the time.
Related Links:
https://www.bluenest.sg

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