Daniel Mminele Takes Over as CEO of ABSA Group

Daniel Nminele

ABSA Group, Africa’s third largest financial institution with a tier 1 capital of $6.8 billion has named Daniel Nminele, former Deputy Governor of South Africa’s Reserve Bank as its permanent Chief Executive Officer. He succeeds Maria Ramos who was CEO of ABSA group for a decade before stepping aside early 2019. Ramos exit created a leadership vacuum in the Bank that led to the appointment of René van Wyk as interim CEO.

Daniel Nminele
Daniel Nminele

Speculation that Mminele was to be the permanent successor to Maria Ramos began almost as soon as Ramos stepped aside in February 2019 after 10 years as CEO of the bank that was for most of her tenure a subsidiary of British banking behemoth, Barclays Plc. In one of Ramos’s final acts, Barclays Africa Group negotiated a separation from Barclays which involved the parent company paying R12.6bn to fund the costs required to untangle hundreds of systems the two companies shared.

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Absa had earlier acquired Barclays’s African operations in 2013, giving it an immediate presence in eight other African countries outside SA. Mminele brought down the curtain on a long and distinguished career as a central banker in June 2019, after serving in various capacities at the Reserve Bank for 20 years, the last 10 of which as deputy governor.

In some of the highlights of his time at the central bank, Mminele oversaw the monetary authority’s response to the global financial crisis and was intricately involved in crafting the successful bailout and rehabilitation of African Bank after the lender collapsed in August 2014.

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In his final stint, he took responsibility for financial markets and international economic policy and relations representing the Reserve Bank at various high-level central banking forums alongside governor Lesetja Kganyago.

Kganyago said of Mminele in a letter to staff that he “has left an indelible mark on this fine institution and his contribution to the Bank has been invaluable and immeasurable”. Mminele served a six-month “cooling off” period until the end of December 2019 as mandated by the Reserve Bank for senior executives switching jobs at any of the country’s key financial institutions.

In June 2019 Absa chairperson Wendy Lucas-Bull told Business Day that the bank was looking to recruit someone with the necessary “stature and recognition in the market” for the top job. But Mminele has his work cut out for him. For a variety of reasons, Absa has lagged behind its competitors under the ownership of Barclays, and lost market share in several key product segments, including card, new vehicle finance and its flagship home loans business.

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Ramos began to address this in the aftermath of the separation by using the occasion to initiate a “cultural reset” of the organisation. Besides restructuring, changes were made to the way employees are incentivised and rewarded that begun to turn in the interim period to end-June 2019. Home loan registrations grew at 16% during the period, more than double the growth in total home loan registrations in the country.

Mminele will now oversee the tail-end of the separation from Barclays and will inherit a structure that has involved Absa’s devolving its various businesses into three operating divisions: Retail and Business Banking led by Arrie Rautenbach, Corporate and Investment Banking (CIB) headed by Charles Russon, and the Africa regions led by Peter Matlare. Van Wyk, will step down as CEO on January 14 2020, but will remain with the group as an executive director, for handover purposes until January 31 2020.

 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Ethiopia Revokes 1,178 Investment Firms’ Licenses

Dr. Abiy Ahmed, Ethiopia's prime minister

End of the road for 1,178 investment companies in Ethiopia’s capital city, Addis Ababa. The Addis Ababa City Administration Investment Commission has put an end to their licenses for failure to execute their projects, six months since the companies were in operation. 

Dr. Abiy Ahmed, Ethiopia's prime minister
Dr. Abiy Ahmed, Ethiopia’s prime minister

Here Is All You Need To Know

  • The investment law of Ethiopia requires that if an investment project has failed to start implementation, the license will be void.
  • According to Abdulfeta Yesuf, Commissioner of Addis Ababa Investment commission, if all the new 1,598 new investment projects were implemented, they would create 10,000 jobs. 

  • Read also: Ethiopia Launches Electronic Customs Processing Platform For Traders
  • It is estimated that over the past six months 2.9 billion birr ($91 million) was invested on different projects in the city of Addis Ababa, while 959 investment projects are allowed to import capital goods duty free.
  • In addition, many investment projects have been able to import 166 vehicles and spare parts for their machines duty free. He also stated that support is extended by the Commission for 19 investment projects to acquire land and implement their investment projects.
  • The major challenges new investors faced in Addis Ababa include shortage of hard currency, electricity and land, according to the Commissioner. 
  • It could be recalled that after Dr. Abiy Ahmed became Prime Minister, the Addis Ababa City Administration led by Deputy Mayor Eng. Takele Umma has been taking back land from investors who failed to commence implementing their investment projects. Most of the land the Administration took from the investors has been turned into parking spaces creating jobs for hundreds of unemployed youth in the city.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Ghana May Slip Into High-Risk Debt Distressed Country

President Nana Akufo-Addo

Ghana’s economic indices is not looking good with a recent report from the International Monetary Fund ( IMF) warning that the country is closer to being classified as a high debt distressed country. With this development, the Fund has expressed concerns about Ghana’s ability to honour its international obligations as public debt stock as at September 2019 was pegged at GH¢208.6 billion, being equivalent to 60.3 per cent of the country’s gross domestic product (GDP), data from the Bank of Ghana revealed.

Ghanaian Minister of Finance, Mr Ken Ofori-Atta
Ghanaian Minister of Finance, Mr Ken Ofori-Atta

The country’s 2020 budget sets aside over $3 billion (GH¢19bn) to pay interests alone and is one of the biggest items on the government’s expenditure bill which is more than the capital expenditure, a pointer that many other items on the budget will give way for interest payments.

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The IMF staff report comes after a recent assessment of Ghana’s economy. The report also pointed at Ghana’s rising energy sector debts as the government last July called the energy sector debt situation a “state of emergency.” This was during the mid-year budget review during which the Finance Minister Ken Ofori-Atta castigated the previous NDC government for entering into “obnoxious take-or-pay contracts signed by the NDC, which obligate us to pay for capacity we do not need.”

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The government pays over GH¢2.5 billion annually for some 2,300MW in installed capacity which the country does not consume. The Minister sounded alarmed that “from 2020 if nothing is done, we will be facing annual excess gas capacity charges of between $550 and $850 million every year.

The latest assessment raises concerns about the purpose of government borrowings, whether it goes into consumption or into projects capable of generating revenue to pay back the loan. The move could increase the country’s risk profile and ability to borrow on the international market. The IMF staff report could impact Ghana’s plans to issue another Eurobond in 2020.

Read also:MTN Quits Towers Businesses in Ghana and Uganda

Ghana’s Finance Minister Ken Ofori-Atta wants to return to the Eurobond market to raise $3bn to pay for expenditure items the country cannot fund from domestic sources. The government wants to spend GH¢86m in 2020 but is projecting to raise only GH¢67bn. It leaves a deficit of GH¢19bn, monies that the Eurobond could make available. The planned return to the Eurobond market is the seventh time in the past eight years.

Ghana is already among 10 low-income countries (LICs) in Africa that were at high risk of debt distress. The country in April 2019, successfully completion an Extended Credit Facility (ECF) programme, or bailout, of the International Monetary fund (IMF). It was Ghana’s 16th bail-out programme with the IMF since 1960

 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Dangote Cement Suffers Quality Problems in Zambia

Alhaji Aliko Dangote, president, Dangote group

Dangote Cement has had a bad run in recent times as its Zambian subsidiary has failed the Zambian Compulsory Standard Agency test which has led to the sacking of its Deputy Quality Manager in Zambia Raavi Venkataswamy of his duties. The Zambia Compulsory Standard Agency is the national agency charged with the responsibility of ensuring the public does not get substandard goods regularly carries out tests to ensure that goods on the market are of the recommended standard.

Alhaji Aliko Dangote, president, Dangote group
Alhaji Aliko Dangote, president, Dangote group

In view of this, the Zambia Compulsory Standard Agency in Mid December 2019, conducted some compressive strength tests for two and seven days respectively but that the results for the two tests where what he called “zero”.

Read also:Makoju Retires From Dangote Group After 45 Years in Industry

Sources at the Zambian Compulsory Standard Agency say that the quality issue has got many within the construction industry worried because Dangote is one of the major manufacturers of Cement in the country with a countrywide influence on the price of the commodity as it has outlets in all corners of the country despite the plant being based in Ndola.

Read also:

An officer of the Zambian Compulsory Standard Agency was quoted as saying that “we did two tests and the results on two and seven days of the quality of cement Dangote is producing is not up to standard. The results on the tests we did were zero. Usually the results at two days are 16/18mpa and at seven days 28/32mpa that is for 42.5 type of cement. “We were told to keep this as a secret so that Dangote can normalise the situation but I thought I could help somebody out there who is building.”

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However, a source from Dangote Cement said that the cement company has started recalling some products suspected to be compromised. The sources mentioned that two truck each of 600/bags were returned last week because of quality issues adding that there is wide spread panic within the company management fears that the company might lose the good reputation it has built with its clients which will lead to loss of business for the company.

 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Ethiopia Launches Electronic Customs Processing Platform For Traders

Dr. Abiy Ahmed, Ethiopia's prime minister

The Government of Ethiopia has launched an electronic platform that would enhance efficiency in trade logistics landscape of the country by speeding the customs process for importers and exporters within the country.

Dr. Abiy Ahmed, Ethiopia's prime minister
Dr. Abiy Ahmed, Ethiopia’s prime minister

Here Is All You Need To Know


• Labelled, Ethiopia Electronic Single Window Service, the platform will reduce the 44 days hectic long paper work process for importers and exporters to 15 days.
• Gradually, it is also expected to cut the 15 days to three working days.

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“…we launched the Ethiopia Electronic Single Window Service – a key technology that will enhance cost effectiveness and efficiency in trade logistics landscape of Ethiopia,” Dr. Abiy Ahmed, Ethiopia’s prime minister noted in a tweet, after attending the launching which held at the Office of the Prime Minister.
• The online e-business / e-government services aim to streamline processes and save time. Embracing digital transformation offers better service rendering practices and higher customer satisfaction.

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• Studies to launch the electronic platform had been on for the past five years, according to Adanech Abebe, Minister of Revenue, who indicated that the technology will play key role in facilitating and speeding the process for importers and exporters.

• Abebe noted that the new electronic platform will also make the customs procedure easily predictable and reachable.

• The new service would also cut the paper works, and l spare traders from wasting their times and days running from one office to another.

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• Gradually the number of companies using the system would be increased.
• South Korean companies have taken part in the development and deployment of the new electronic customs procedures processing platform.

• At the initial stage, 16 trading companies, both private and state-owned will use the new electronic customs procedures processing platform.

• Building data center and preparations of the procedures and regulations that govern the system are under way, according to Minister Adanech.

• It will be recalled that with the aim of facilitating the customs procedures deploying new technologies, the government has recently announced liberalization of logistics related businesses to foreign companies and investors.

• The government of Ethiopia has also invited foreign companies to buy share in the state monopoly, Ethiopian Shipping and Logistics Services Enterprise.

• This latest move is expected to improve the ease of doing business ranking of Ethiopia, which now ranks 159 out of 190 countries on the World Bank Index.

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Afreximbank Tops 2019 Africa Book Running League Table

The African Export-Import Bank (Afreximbank) has emerge on top of the Bloomberg 2019 Africa Capital Markets League Tables as the leading Bookrunner in Africa.

Dr Benedict Oramah, president AfriExim Bank.

The 2019 Africa Capital Markets League Tables released today by Bloomberg showed that Afreximbank was the top Bookrunner for Africa Borrower Loans, ahead of Mitsubishi UFJ Financial Group Inc. and Standard Chartered Bank.

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Afreximbank recorded a loan transaction volume of over $2.79 billion or 8.7 per cent of the market share while Mitsubishi UFJ Financial Group Inc. and Standard Chartered Bank accounted for 6.8 per cent and 6.4 per cent of the market shares respectively.

Afreximbank also ranked second among the Mandated Lead Arrangers for Africa Borrower Loans on the League Tables, moving up one place from last year’s ranking. Its market share was 6.7 per cent on a volume of $2.51 billion.

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Afreximbank came in behind the Standard Bank of South Africa, which accounted for 8.1 per cent of the market share but was ahead of Eastern and Southern African Trade and Development Bank whose market share stood at 4.5 per cent.

In the Administrative Agent ranking category, Afreximbank came in ninth with a 5 per cent market share and a volume of $8.85 billion. The category leader was Standard Chartered Bank, with a market share of 14.3 per cent, followed by BNP Paribas with 8.4 per cent market share and the National Bank of Egypt with 8.1 per cent market share.

Read also:Afreximbank’s 20TH Trade Finance Seminar and Workshop Holds in Durban, South Africa.

Bloomberg Africa Capital Markets League Tables rank the top arrangers, bookrunners and advisors across a broad array of deal types in Africa.

 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Concentration as a key ingredient of success

Emeka Oparah, Vice President, CSR Airtel Nigeria.

By Emeka Oparah

Just before our Christmas or End of Year party, I spent five minutes speaking to my boys, the wonderful tailors at Ethelberts Clothing, on how, I think, we will take our game to the next level in 2020. The theme of my remark was CONCENTRATION.

Emeka Oparah, Vice President, CSR Airtel Nigeria.
Emeka Oparah, Vice President, CSR Airtel Nigeria

Perhaps, one of the most vital attributes of most successful people, aside their talents, skills, experience and grace of God, is concentration. I very readily drew their attention to two of the world’s greatest soccer players alive, Messi and Ronaldo. I could see how their faces lit up to the names. I actually know how to choose my examples, even if I say so myself. Young people love music and sports; so, I might as well take it to their comfort zone, you know.

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So, what about Messi and Ronaldo (in that particular order) and concentration? To answer truly, wisely and directly: have you ever paid close attention to them as soon as they get hold of the ball? Now, this is a typical Nigerian way of answering a question with another question. Seriously, the single-minded objective of both stars clearly is to put the ball past the goalkeeper and firmly in the back of the net, no VAR, no debates!!!

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The multiple award winning players simply focus on the objective right from their very next move. They either make a solo, oft daring, run or commence a string of passes while heading towards the goal (pun fully intended). If you sometimes rewind a typical Messi or Ronaldo goal, you will see they have it all worked out in their heads and worked at it until the ball gets into the net, sometimes in great style-even in the tensed split seconds! That is the power of concentration.

So, for the tailors, the fabric has been cut and the design agreed. What’s left is to concentrate on finishing the top or pants according to the style within the specified time-and make it even better and in faster time than the previous one! When you stop work to join a discussion, watch a song on TV or take a call or two, you could make mistakes or miss the deadline. Concentration is very important. Stay on the machine until you “kill it”, I said to them. They all nodded in comprehension and appreciation.

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I know a player, who was even more skillful than Messi and Ronaldo but he had the tendency to lose concentration. He played most of the time to the gallery. He got carried away by the applause. He held on to the ball for too long, dribbled excessively, played selfishly and rested on the glory of earlier goals he scored. He lost many balls, therefore, and missed many goal-scoring opportunities. Sometimes he appeared to have started thinking of the backflip or somersault to celebrate even before he scored the goal. And so he didn’t become great!

Concentration, very often, separates great finishers and poor finishers, not only on the field of play but in field of human endeavors, even in za ozza room. I plead the 5th and so will NOT go into details here, but suffice it to say that lack of concentration can lead to poor finishing and, of course, poor results. It could even be something as difficult as losing weight or dropping a bad habit.

This New Year, take sometime to reflect on those moments you haven’t done as well as you should and how and why you lost concentration. Then, tell yourself you’ll always start and finish any project you embark upon, as long as it make sense and will make you a fortune or fame or both or more.

Cambridge Dictionary defines concentration as “the ability to think carefully about something you are doing and nothing else.” There you have it! Form the habit of thinking carefully about what you’re doing, making a workable plan and avoiding distractions till you finish. And to paraphrase CNN’s Richard Quest would say, “whatever you’re doing, make sure it’s profitable!”

“Concentration is the root of higher abilities in the man.”-Bruce Lee

Have a successful and truly blessed 2020 with 20:20 vision!!!

Emeka Oparah is Vice President, CSR Airtel Nigeria.

 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

MTN Quits Towers Businesses in Ghana and Uganda

MTN Group has agreed to sell its towers businesses in Ghana and Uganda as Africa’s biggest mobile phone operator refocuses on high-growth markets on the continent and in the Middle East.

News agency Reuters reports that clashes with regulators in Nigeria, Uganda and elsewhere have crimped growth, prompting the company to announce a $1 billion three-year asset-disposal plan earlier this year.

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MTN said it had agreed to sell its 49% holdings in Ghana Tower Interco B.V. and Uganda Tower Interco B.V. to AT Sher Netherlands Coöperatief U.A. for $523 million.

The sale is expected to close in Q1 2020 leaving MTN with a profit of 6 billion rand ($425.74 million).

Read also:MTN gets mobile money licence in Nigeria

The company also said it had finalized the redemption of MTN Nigeria preference shares, raising $315 million.

MTN said it will use the proceeds to pay down its U.S. dollar-denominated debt and for general corporate purposes.

“We remain focused on continuing to execute on the important strategic priorities of reducing debt, simplifying the portfolio and reducing risk,” the firm said in a statement.

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The company is aiming to shed loss-making e-commerce assets and exit countries where it has no prospect of reaching the top-two spots in terms of market share.

Copyright 2020 Thomson Reuters.

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world