News - Afrikan Heroes

Liberian Businesses Have Just Got A New US$20M Fund

July 16, 2019

Businesses in Liberia now have a new pool of funds to tap from. The Overseas Private Investment Corporation (OPIC), the United States government’s development finance institution has just approved a second facility of US$20 million for the Liberian, Enterprise Development Finance Company (LEDFC), a Liberian state-owned corporation established in 2007 to provide loans to Liberian- owned Small and Medium Enterprises (SMEs).

A Look At The New Funding

This new funding just added to the existing funds within the disposal of the LEDFC.
The new facility will encourage qualified Liberians SMEs to apply for funding.
Under the terms of the new facility, the facility will be used to lend to Liberian owned small and medium businesses.
An additional US$16 million will come from other sources to increase the lending pot to US$36 million, according to Dr. Papa Kwesi Nduom, CEO of Groupe Nduom, a Multinational Family Holding Business of Ghanaian and American origin comprising of over 60 independent companies across several industries.
OPIC is a self-sustained US Government agency that helps American businesses invest in emerging markets.
Established in 1971, OPIC provides businesses with tools to manage the risks associated with foreign direct investment, fosters economic development in emerging market countries, and advances US foreign policy and National security priorities.
OPIC is a financial institution that has over the years helped American businesses gain footholds in new markets, catalyzes new revenues and contributes to jobs and growth opportunities both at homes and abroad.

“OPIC fulfills its mission by providing businesses with financing, political risk insurance, advocacy and by partnering with private equity investment fund managers.”

Since its establishment, LEDFC has invested more than US$28 million over 500 small and medium enterprises and created more than 500 jobs in the Liberian economy, says Dr. Kwesi Nduom.
LEDFC has financial inclusion as a priority and hence has three additional offices outside Monrovia.

“Up until the middle of June 2013, there was growing concern that the company would not survive because majority of loans were not performing. Groupe Nduom was contacted by CHF and OPIC due to its in-depth experience and knowledge in financial matters in the sub-region” noted Nduom

How Liberian Businesses Can Obtain Funding Under The Scheme

LEDFC provides flexible credit opportunities to small and medium scale businesses that are starting, rebuilding, or expanding their operations, including:

Sole Proprietorships
Partnerships
Corporations
Registered Cooperatives

Liberian businesses desirous of obtaining funds under the scheme should:

be Liberian-owned (min. 51% ownership) and registered
have a capable and experienced management
have a collateral requirement of at least 1.4 times the loan amount
plan to create jobs with loan proceeds

LEDFC loans range from US$10,000 to US$1,000,000. LEDFC works with clients to determine an appropriate loan size according to their unique needs and repayment capacity.

The level and type of security required will depend on the loan term, the business, and the borrowers’ credit history and references. Acceptable collateral includes:

Equipment
Assignment of receivables and contracts
Real property (including land, buildings)
Assignment of Insurance on assets
Pre-signed checks
Pledge of corporate stock
Sales Assignment

Documents required to procure the loans include:

Completed Loan Application
Business Plan
Financial Statements (Last 2 Years)
Cash Flow Projections for the project and debt service period (include underlying assumptions)
Credit References
Copy of Business Registration
Bank Statements (past 12 months)
Details of all existing debt and obligations
Staff Verification
CVs of owners & key managers
Copies of passports and/or national identification of owners

LEDFC offers two products, designed for evolving and expanding the business activity of Liberian companies at every phase of their development:

Short Term Loans

These loans (6 to 23 months) are geared towards working capital and other short-term needs.

Medium-Term Loans

Medium-term loans (2 to 5 years) for investments in equipment and other productive assets.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

Banks In Nigeria Will No Longer Require Separate License To Operate Mobile Banking

Whether it is to reach for more financial inclusion or to open up the heavily regulated Nigerian banking sector, Nigeria’s apex bank is already facing the heat of global digital disruption in the financial services sector. From now on, banks in Nigeria would no longer be required to have a separate license to operate a mobile banking app.

Here Is Why This Change Is Significant

Before now, to operate a mobile money service in Nigeria, the operator shall, among other things be :
(a) Be licensed by the CBN on such terms and conditions as the Central Bank shall desire.

Such terms and conditions usually involve the presentation of evidence of the formation of the Consortium that will deploy the project (Certificate of Incorporation)
The Consortium’s profile and functional contact e-mails and telephone numbers
Securities features that will be put in place
3 years Financial projections for the company
Draft agreements with the following: a. Technical Partners b. Participating banks c. Switching company/(s) 24 d. Merchants e. Telcos f. Any other party
Tax Clearance Certificate for three (3) years of each party in the Consortium
Project Deployment Plan (time, location, operation, etc.)
Payment of non-refundable Application fee of N100,000.00 (One hundred thousand naira) made payable to the CBN
Evidence of Shareholders’ Fund of N2 billion before a license is issued
This document, and may be reviewed from time to time.
Be issued a unique Scheme Code by the NIBSS for managing interoperability.

But all that is about to change

Going forward, once the Central Bank of Nigeria is satisfied that your current license to provide financial services in Nigeria suffices, the need to procure an additional license for your business would be obviated.

“You do not need authorisation from the CBN to go into Wallet services or mobile money schemes. All you need is to notify the CBN your current license suffix,” CBN Department of Banking and Payment System said at the First Bank cross border seminar for Banking and Telecom Regulators from sub-Saharan Africa.

Banks Are Being Reluctant Investing In Mobile Money Because The Heavy Regulations Don’t Make Any Case For Profitability
Many institutions in Nigeria are using prepaid payment cards and the mobile phone as a means of providing financial services to the previously financially excluded.
While not a bank account in the traditional sense, mobile wallets, and prepaid card products provide individuals with a safe electronic store of value and electronically initiated and accepted payment transactions and funds transfers.
In 2015, the CBN published both a Regulatory Framework for Mobile Money Services in Nigeria and Guidelines on Mobile Money Services.
The Regulatory Framework makes provision for only two specific models, namely bank-led, or non-bank led (a corporate organization duly licensed by the CBN).
Mobile money was one of the major segments of the Nigeria e-payment ecosystem primed by the CBN to drive its financial inclusion vision, in which 80 percent of Nigerians will be established in the national banking system by 2020.
However, mobile money operators (MMOs) have had little success in supporting the country’s financial inclusion targets.
This is mostly due to a lack of proper understanding of the conditions of their licenses, limited funds, poor infrastructure in rural areas, and limited customer access due to limited agent network rollouts.
Most of the licensed Mobile Money Operators in Nigeria are believed to have remained inactive and many have yet to officially commence payment platform operations.
Consequently, the CBN took the decision to raise the capital requirements for licenses from N500 million to N1 billion at the end of December 2017 and now to N2 billion, with a caveat that any operator that fails to meet the 1 July 2018 deadline for the new capital requirements will have its licenses revoked, further reducing participation.
The implication of these for Nigerian banks is that from now on, they would no longer be required to have a separate license to operate a mobile banking app.
However, on the other hand, the situation of non-bank led organizations involved in mobile operation remain heavily uncertain, as they may be required to still apply for and obtain licenses.

Cold Feet On Digital Currencies

Expecting Nigeria’s apex bank to adopt cryptocurrencies? This still remains a dream.

The apex bank’s position on the adoption of digital currencies still remains that:

“We [CBN] have not made up our mind on what steps to take but I am not sure or believe that the CBN will ever go crypto.

“We know what they are doing in Sweden and China. We are not running on the same parameter and so based on financial inclusion, adopting digital currency will mean a number of our population will be excluded.”

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.

Facebook: https://web.facebook.com/Afrikanheroes/

News Startup Space in Africa Raises Fund To Expand To Five African Countries

Even in the face of stiff economic situations, startups in Africa are busy sealing rounds of investment. Everything from FinTech to agrictech, to cleantech to newstech. Space in Africa, a news and research startup that covers the rapidly growing African space economy which has already seen eight nations launch 35 satellites in the last two decades — and 15 satellites in just the last 4 years, has successfully completed its seed funding round.

Although the terms were not disclosed, the startup plans to use the funds to hire additional reporters and analysts to expand coverage for its subscription news service and specialized industry reports.

Investor funding into online media upstarts like Buzzfeed, Vox and Business Insider, jumped to over $800M in 2014.

A Look At The Funding

The funding round was led by AC Ventures, the venture capital firm led by Adam B. Cohen, who has previously built and sold other research and news companies.

“I am proud to partner with Temidayo in evangelising the benefits of space applications to solve practical problems and create exciting business opportunities for Africans. As the cost of launch falls and satellites shrink, the most valuable resources now in the NewSpace arena are imagination and passion. Space is for everyone,” said Cohen of why AC Ventures invested in Space in Africa.

AC Ventures is an investment firm led by Adam B. Cohen. The firm invests in early-stage companies involved in the space industry and its enabling technologies. AC Ventures is the trade name of AC Ventures of Florida, LLC.
Cohen previously founded Covenant Review and Fulcrum Financial Data, which were acquired by Fitch Group, a unit of Hearst, in July 2018. Cohen is a serial entrepreneur and has also previously practiced as a lawyer, investment banker, and space and defense consultant. For additional information on AC

The overall surge in funding lifted the first half of 2010 to $11.4 billion in venture funding going into 1,646 deals — a 49 percent increase in dollars and a 23 percent increase in deals from the first half of last year when $7.7 billion was invested in 1,340 deals.

“Many people outside Africa are surprised to hear how significant the African space industry has become, and how the development of the industry has become a real priority for many nations and the African Union,” says Space in Africafounder, Temidayo Oniosun.

The GDP of the African continent has doubled in the last 10 years to over USD 2.2 trillion. Amidst this economic expansion, Temidayo, explains that:

“the African space market is now worth over USD 7 billion in terms of annually generated revenue, and we project that it is likely to grow by over 40% in the next five years to exceed USD 10 billion by 2024. There are thousands of people employed across the African space industry, and our local technology skills set is growing alongside international partners and home-grown NewSpace startups. African engineers are increasingly collaborating on satellite construction, while local innovators are providing new application solutions across communications, natural resources, and public services.”

“We now have reporters in Kenya, Nigeria, South Africa, Rwanda, and Tanzania who travel around the continent to cover all aspects of the market. We typically publish six to eight stories daily, and we just launched our Opportunities platform that lets you in on a wide range of new projects, open jobs, fellowships, and other prospects for gaining business and expertise. We want to be your first and best source for all information pertaining to the African space industry,” he added.

A Look At Space In Africa

Space in Africa is a media startup that focuses on news, data, and market analysis for the African space industry.
The startup is based in Lagos, Nigeria.
Space in Africa provides daily news and data analysis relating to the African space industry, and also offers proprietary research and consulting services.
The startup was founded by Temidayo Oniosun, who has been recognized as one of the World 24 Under 24 Leaders and Innovators in SPACE and STEAM by The Mars Generation and is one of the recipients of the 35 Under 35 Space Industry Recognition Award by the International Institute of Space Commerce.
The Space in Africa offers Space stories in English, French, Swahili, and Arabic.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

Facebook, Other Tech Companies May Be Barred Entirely From Offering Financial Services and Digital Currencies

July 15, 2019

The US House of Reps is pushing to ban Facebook and other tech companies from ever having anything to do with financial services or digital currencies.

A bill to prevent big technology companies from functioning as financial institutions or issuing digital currencies is currently being circulated for discussion by the Democratic majority that leads the House Financial Services Committee, according to a copy of the draft legislation.

Here Is What The Bill Is Proposing

In a sign of widening scrutiny after Facebook Inc’s (FB.O) proposed Libra digital coin aroused widespread objection, the bill proposes a fine of $1 million per day for violation of such rules.
Such a sweeping proposal would likely spark opposition from Republican members of the house who are keen on innovation, and would likely struggle to gather enough votes to pass the lower chamber, says Reuters.
Even if it were to pass the full house, it would still have to pass the Senate which would also likely be an uphill struggle.
Nevertheless, the draft proposal sends a strong message to large tech firms increasingly eyeing the financial services space.
The draft legislation, “Keep Big Tech Out Of Finance Act”, describes a large technology firm as a company mainly offering an online platform service with at least $25 billion in annual revenue.

“A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System,” it proposes.

Facebook, which would qualify to be such an entity, said last month it would launch its global cryptocurrency in 2020.

Facebook and 28 partners, including Mastercard Inc (MA.N), PayPal Holdings Inc (PYPL.O) and Uber Technologies Inc (UBER.N), would form the Libra Association to govern the new coin. No banks are currently part of the group.
Last week, U.S. President Donald Trump criticized Libra and other cryptocurrencies and demanded that companies seek a banking charter and make themselves subject to the U.S. and global regulations if they wanted to “become a bank.”

His comments came after Federal Reserve Chairman Jerome Powell told lawmakers that Facebook’s plan to build a digital currency called Libra could not move forward unless it addressed concerns over privacy, money laundering, consumer protection, and financial stability.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

Multichoice Africa and Real-Time Channels to Collaborate

As part of efforts to bring top quality entertainment programmes to Africa, Multichoice Africa, and Real-Time Channels have entered into an agreement to bring Africa’s Newest Entertainment Channel featuring exciting programmes based on Real Lives, Real Nature, Real Crime, Real Medical. Real Time’s cleverly-curated schedule and dynamic mixture of lifestyle and factual content will ensure audiences get their daily fix of real reality and must-see entertainment all in one channel.

On the DStv platform, Real Time will be available on the Premium, Compact Plus, Compact and Family packages on channel 155; and on the GOtv platform the channel will be available on the GOtv Max package on channel 12 (112 in Ghana and channel 312 in Uganda), allowing for more premium content to reach a wider spectrum of viewers on the continent.

Discovery Inc’s portfolio of channels has been serving passionate fans with content that inspires, informs and entertains with leadership across deeply loved and trusted brands.

“We are incredibly excited to present Real Time to an even wider audience in the market, and further expand and diversify our local portfolio offering,” said Amanda Turnbull, Vice President & General Manager for Discovery in Africa and the Middle East. “With an already successful suite of pay-TV brands, Real Time affords us the chance to bring our world-class content to even more audiences across Africa, in the form of a channel designed to provide much-needed ‘me time’ to the modern African woman and her wider family.”

“Multichoice is excited to welcome this new channel which will give viewers access a wide variety of compelling television shows from Discovery Inc. on our platforms,” said Yolisa Phahle, CEO of General Entertainment at MultiChoice Group. “We work hard to bring the best of what the world has to offer to viewers and plan to keep delivering content that our customers love at a price they can afford. Real Time is a welcome addition to the wide range of content available only on DStv and GOtv.”

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.

Facebook: https://web.facebook.com/Afrikanheroes/

Kenyan Recruitment Startup Lynk Raises Funding For Expansion

July 14, 2019

Kenyan recruitment startup, Lynk is the newest to join the train of startup fund-raising in Africa. Though the amount raised is undisclosed, it is larger than Lynk’s combined total of previous funding, which was a US$1.3 million seed round and US$500,000 in grant money.

A Look At The Funding

This round of funding was led by Lateral Capital and featured local and international family offices and funds such as the Cornerstone Group.
Lynk co-founder Johannes Degn said the funding would be used to help the startup expand its operational footprint, grow its team and improve its B2B offering.

“It will almost exclusively be for salaries as we are hiring a more senior team. We are growing our commercial presence in Nairobi. Our ability to grow market size in Nairobi is the remaining proof point before expanding to second market. We have budgeted a good amount for marketing activities,” Degn said.

What The Startup Does

Lynk connects informal artisans with customers. It allows customers to book professional services from highly vetted artisans. Customers can simply book an assessment with the artisan and the artisans will be with them in as quickly as 4 hours. Quotes are provided at set rates, and assessment costs are deducted from the total job value. So whether it is a gentle full body Swedish massage for deep relaxation or the installation and replacement of sinks, baths, showers, and toilets, Lynk is up for it.

The Kenyan startup also says there is no way a wrong artisan would turn up.

‘‘We’ve been connecting customers to workers since 2015. Our customer base trusts and believes in the quality of our services and our digital platform always the entire process to be transparent — you don’t need to work about inexperienced workers, hassle about payments or rates, or worry about communication. We serve as the neutral intermediary and ensure all work is delivered and completed to industry standards. This means ensuring that the Pros we connect you with have a breadth of experience, are professional, trained, and certified in their craft. Once we find the right match, we will notify you of the details — name, and contacts of your Pro before the service,’’ it notes.

The startup was started in 2015.

So far, the Lynk platform claims it has facilitated more than 31,000 jobs and over 100 construction projects.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

Congo Republic’s Debt Is 114% of Its GDP But IMF Has Just Approved A Major Bailout

July 13, 2019

Currently, Congo Republic’s debt stands at 114% of its GDP but the International Monetary Fund is helping to cut it down. Alone, about 1.6 trillion CFA francs ($2.7 billion) is owed to China according to a February 2018 report by the French Embassy in Congo, which cited the Finance Ministry.

Private creditors like Glencore and Trafigura are owed 1.2 trillion CFA francs, it said. Chinese entities account for about 34 percent of Congo’s external debt. But all that is about to change with this IMF intervention.

Here Is The Deal

The bailout did not just happen. Congo Republic had been mounting intense pressure on the IMF for a bailout.
But IMF had insisted that China would agree to restructure debt owed by the Republic of Congo before it grants the debt-laden central African nation a bailout.
Congo’s negotiations for a bailout has been on for two years before this.
In April 2019, Congo reached an agreement with China to restructure a portion of its Chinese debt
Under the terms of this restructuring deal, repayment of 944 billion CFA francs will be extended to an additional 15 years.
Congo, however, must pay off a third of that amount by the end of 2021 and China will not reduce the amount of principal owed, a process known as taking a haircut.
According to the IMF, this is a substantial reduction in the amount of debt service that would have been required during the program period.
What is hoped to achieve here is that the extension of the debt’s maturity will ease Congo’s debt service burden in following years?
The International Monetary Fund’s (IMF) executive board, in exchange, has now approved a bailout worth nearly $449 million for the Congo Republic.
But all that would not happen just like that. For Congo to continue to benefit from the bailout, IMF has demanded that Congo put in place processes to ensure the long-term sustainability of its debt as a precondition before going for a three-year extended credit facility programs, going forward.

Congo’s economy suffered from a sharp drop in crude prices in 2014, and debt levels had ballooned to 118% of GDP by 2017.

Now, This Move Is So Significant For Other African Countries Under Heavy Debt Burdens With China And Here Is Why

Government debt as a percent of GDP for African countries, 2017. *Source: IMF, 2018. Regional Economic Outlook*

This bailout potentially set a precedent for other nations struggling under the weight of large debts to China.

It appears that what IMF has succeeded in doing is to alert other countries borrowing from China that China would never cut off any percent from any borrowed sum, but may instead, prolong the period of repayment.

Many observers see Congo as a test case for the IMF.
A number of African countries facing unsustainable debt resulting from commercial borrowing, a boom in Eurobond issues and years of Chinese lending on the continent are expected to turn to the IMF for help in the coming years.

In 2017, public debt as a percent of GDP in sub-Saharan Africa was 45.9 percent relative to the 117 percent external debt-to-GNI ratio of 1995.

This is even bound to grow more because sovereign debt financing is inevitable given that African countries budgetary resources are insufficient to finance their vast development agenda.

“The IMF is tacitly accepting that China will not take a haircut on debts to African governments,” said one banker, who has followed the negotiations.

The IMF is also advising Congo’s government to restructure high-interest debt it contracted with oil traders including Glencore (GLEN.L) and Trafigura despite a previous pledge to the Fund that it would not engage in oil-backed borrowing.

“I think they’ve learned their lesson as to the costs of these kinds of practices,” Alex Segura, IMF mission chief for Congo, told Reuters.

IMF Is Also Pitching Its Stakes And Leaving African Countries At Their Own Mercy

Description of events leading to the present debt situation

All that bailout would not just happen without a reciprocal deal. For instance, the IMF said in November that Congo’s government must take a series of steps before the lender agrees to a bailout, including reforms to improve governance and transparency, adjustments to the state budget. It’s also requested “explicit financing assurances,” including debt relief, from creditors before it considers a bailout.

With all these, African countries with heavy debt burdens may all be sitting on a time bomb.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

GTBank Named Best Bank in Africa at Euromoney Awards

Guaranty Trust Bank plc, one of Africa’s foremost financial institution has been named the Best Bank in Africa 2019 by Euromoney at its annual Awards for Excellence, which held in London over the week.

The Bank was also named the Best Bank in Nigeria for a record ninth time, reflecting the Bank’s position as one of the best managed financial institutions in the country, with strong and focused leadership that keep the business in a constant state of re-invention and innovation.

Now in its 50th year, Euromoney is the leading publication for covering the growth of international finance. Euromoney’s Awards for Excellence are the awards that matter to the banks and bankers who matter. This year, Euromoney received almost 1,500 submissions from banks in an awards programme that covers 20 global awards, more than 50 regional awards, and best bank awards in close to 100 countries.

The Magazine’s Awards for Excellence celebrates the best banks around the world by recognizing institutions that have demonstrated leadership, innovation, and momentum in the markets they operate. In selecting its award recipients, Euromoney combines quantitative and qualitative data to honor institutions that have brought the highest levels of service, innovation, and expertise to their customers.

Key to the emergence of GTBank as the Best Bank in Africa and the Best Bank in Nigeria, is the Bank’s digital drive and its clarity of vision in reimagining the future of banks and banking. The Euromoney awards also recognized GTBank’s commitment to leading the future of banking as well as its consistent long-term strategy led by a senior management team that abhors complacency and keeps the business in a constant state of innovation.

Commenting on the Bank’s Euromoney awards, the Chief Executive Officer of GTBank, Segun Agbaje, said; “We are delighted and proud to win the Euromoney Awards for Africa’s Best Bank and Nigeria’s Best Bank. These awards reflect the progress we are making in delivering the best banking experience that captures what customers want in the world of today and tomorrow. They are also a testament to our leading role in driving world-class corporate governance standards, excellent service quality and innovation in Africa’s banking industry.”

He further stated that; “At GTBank, we are passionate about building the bank of the future by leveraging the best of technology to add real value to our customers’ lives, and these awards illustrate the hard work and commitment of our staff, management, and board towards achieving this goal.”

GTBank has consistently played a leading role in Africa’s banking industry. The GTBank brand is regarded by industry watchers as one of the best run financial institutions across its subsidiary countries and serves as a role model within the financial service industry due to its bias for world-class corporate governance standards, excellent service quality, and innovation.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

There Are Now Over 41.543 Million Micro, Small & Medium Enterprises In Nigeria

July 12, 2019

Micro Small & Medium Enterprises Nigeria

MSMEs in Nigeria has grown to 41.543 million in 2017, according to the National Survey of Micro Small & Medium Enterprises (MSMEs). The 2017 National Survey of MSMEs covered enterprises in Nigeria employing below 200 persons, which are MSMEs and was conducted in all the 36 states of the federation and Nigeria’s Federal Capital Territory, Abuja.

Here Is A Further Break Down And The Implication Of This Number

The figures represent micro, small and medium scale businesses as at December 2017.
Nigeria had about 37 million MSME in 2013. The 41 million MSME number shows an increase of three million new MSMEs.

At present, however, SMEs are usually far more focused on survival than on growth. The overall results of the study are jarring when viewed against the official government commitment to SMEs as countries’ growth driver

The statistics came from Nigeria’s National Bureau of Statistics (NBS) which launched the National Survey of Micro Small & Medium Enterprises (MSMEs) 2017 yesterday in Lagos.
The survey also showed that micro enterprises which employed less than 10 employees stood at 41.469 million, representing 99.8 percent, small enterprises employ 10 to 45 staff, 71,288 or 0.17 percent, while Medium enterprises with 50 to 199 staff were 1,793 or 0.004 percent.
According to the report, micro and small medium enterprises increased during the period under review, but medium scale enterprises dropped, which can be attributed to the economic recession the country witnessed in 2017.

Where Are The Businesses Most Located?

From the statistics, most of the businesses are located in Lagos, Nigeria’s largest commercial city. While Lagos State had the highest numbers of enterprises across all classes, only three states, Katsina (36.4 percent), Rivers (21.7 percent) and Kaduna (18.l percent) recorded significant increases in enterprise numbers.

“There is a need for the government to pay a lot of attention to micro businesses because they have the largest share of employment, contributed to GDP growth and have the opportunity to create more jobs. During the period micro business grew to 41 million and if we can get half of them to produce one job, we will have 20 million jobs created, which is significant,” the director-general of Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Mr. Umaru Radda, said.

The survey which was supposed to be released in the fourth quarter of last year was delayed as a result of the election, according to the Statistician General of the Federation/CEO NBS, Dr. Yemi Kale.

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) set up in 2003, was Nigeria’s government’s major response to tackling the problems of MSMEs in a coordinated fashion.

The MSME sub-sector has huge potential and the government should pay more attention to them than on large organization, by initiating friendly government policy in the sub-sector.

CHARACTERISTICS OF SMEs: (contd)  SMEs in Africa do not survive for long

The Implication of This Figure

The figure above is so important that businesses would need to begin to readjust their strategies in order to remain in business.

With over 41 million businesses in Nigeria serving a population of over 200 million, compared the United States’ 30 million small businesses serving a population of 327.2 million, this is a significant number, in terms of competition for loans, scramble for people with buying power and other limited resources. It would boost the economy, no doubt, but businesses should begin to look at more creativity in order to retain their existence. Of course, most of the small businesses may only be existing on paper. But until that is proved, the figures still remain the facts.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

Angola Signs Lusophone Country-Specific Compact

The Governments of Angola, Portugal, and the African Development Bank have entered into a Country-Specific Compact designed to accelerate the inclusive, sustainable and diversified growth of Angola’s private sector.

The Lusophone Compact is a financing platform, involving the African Development Bank, Portugal, and the six Portuguese-speaking countries of Africa (PALOPs): Angola, Cabo Verde, Equatorial Guinea, Guinea-Bissau, Mozambique, and Sao Tome and Principe. It provides risk mitigation, investment products, and technical assistance to accelerate private sector development in Lusophone African countries.

The signing of the compact follows a Memorandum of Understanding of a Development Finance Compact for Portuguese-Speaking Africa, signed during the Bank’s 2018 Africa Investment Forum held in Johannesburg, South Africa.

The compact signing ceremony will be a highlight of various events to be held at the Luanda International Fair aimed at invigorating Angola’s private sector and promoting economic growth. The event will convene entrepreneurs, development finance institutions and partners, investors, key public and private sector players.

The Bank will be represented by Corporate Services and Human Resources Vice President and Chair of the Lusophone Compact Steering Committee, Mateus Magala, while the Angolan Government will be represented by Hon. Pedro Luís da Fonseca, Minister of Economy and Planning. H.E. Teresa Ribeiro, Secretary of State for Foreign Affairs and Cooperation, will sign for Portugal.

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.