News - Afrikan Heroes

Ethiopia Is Now $52 billion In Debt, Twice The GDP of Uganda

July 6, 2019

Ethiopia ’s debt profile is headed for another level. With over $52 billion debt, the country’s public debt is now more than 65% of the country’s Gross Domestic Product (GDP), and twice the GDP of the East African country of Uganda.

“We borrowed a lot of money but we have been unable to repay on the given time… We have borrowed significantly for infrastructure projects which really failed to achieve the desire result,” said Eyob Tekalign, State Minister of Finance of Ethiopia who presented the 11 months performance report to the Parliament.

What This Means

Although Ethiopia’s fast economic growth registered for over a decade was attributed to being driven by the public investment mainly relying on loan, the economic growth has not been able to make the country pay back its debt.
The Ethiopian government total debt from foreign and local lenders now surpasses $52.3 billion.
As a result, Ethiopia is now forced to restructure the debt repayment schedule negotiating with the major leading country — China as well as by avoiding new debts and new public investment projects

“We have already avoided commercial loans because these loans when they have matured have really created a challenge of accumulated debt,” he said explaining some of the actions undertaken by the ministry as a result of the ongoing reform launched by Prime Minister Abiy a year ago.

“…We have prioritized supply side of economic growth which means working on productive sectors including mining, tourism, manufacturing even agriculture. We are still importing wheat and edible oil which in an economy like Ethiopia is really unacceptable” the Minister said.

The Gross Domestic Product (GDP) in Ethiopia was worth $80.56 billion in 2017. This year the government expects 9.2 percent growth through the economy of the highly indebted east African country has been not doing so well as a result of the internal political crisis and instability.

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/

Businesses Can Now Be Registered Online In Liberia

July 5, 2019

Liberia is shooting to loosen up its business environment for investors and businesses. Unlike what used to be the case in the past where all registration of businesses has to be done online, the Liberia Business Registry (LBR) has launched a website which has an online application for effective and efficient service delivery to the business community. The service became effective Wednesday, July 3.

What The Liberian Online Business Registration Looks Like

With the new online platform, the time limit for establishing a business in the country would be significantly reduced.

“People from Pleebo, Nimba, Lofa and all far-to-reach areas will no longer have to commute to Monrovia, and bear the cost of transportation and accommodation just to get registered or obtain Articles of Incorporation, said Mr. Dee, Registrar General of the Liberia Business Registry.

The website also will provide different kinds of corporate registration information and will help taxpayers directly apply for certificates and Articles of Incorporation with a user account, according to Registrar General Samson Dee.
The reform is coming after Liberia’s President George Weah established the “Business Climate Working Group” which informed the establishment of the Website and online Application.

The registry is supported by a worldwide network of Liberian representatives and Special Agents

The Challenges Of Setting Up Business In Liberia Is Noted In This Statement From Mr. Dee

“There have been series of challenges, in fact the last rating that came up from the World Bank, said it was taking Liberia 18 days to register a business in the Country and I think we all know that this is highly unfriendly when it comes to the business sector. So, on that basis President George M. Weah, set up a Business Climate Working Group, of which we are member and we were tasked with the singular responsibility to turn the picture around to improve the business climate and ensure that we attract investors from every part of the world,” he said.

“We heard the Registrar General say there are foreign entrepreneurs who may come to Liberia and may like to have information of doing business in the Country, and this development will undoubtedly help in the process.” Acting Commerce and Industry Minister Mr. Wilfred N. Bangura observed.

Under Liberian corporate law, all businesses are required to register or apply for a Business Registration Certificate to authorize doing business or providing services in Liberia.

The Liberia Business Registry (LBR) under the Ministry of Commerce and Industry (MOCI) handles the applications and business registration processes. The fee structure for registration varies depending on whether a business is local, foreign, a sole proprietorship, a partnership, or a corporation. The standard steps to follow in establishing a local business office are noted below:

Reserve a unique company name with LBR: an applicant can do a name search online or at the LBR helpdesk; business names can be reserved for up to 120 days.
Register the company using the registration application form (RF-001), and submit the completed application with the company’s articles of incorporation, proof of identification, empowered person’s or registered agent’s form, incorporator’s form, shares and shareholders’ form, and information for tax authority form.
LBR will review the application package and request a Tax Identification Number (TIN) and bank payment slip (BPS) on behalf of the business in question; all businesses operating in Liberia must have a TIN, which is obtained free of charge from Ministry of Finance and Development Planning.
Once a TIN has been obtained, pay associated business registration fees at the Central Bank of Liberia (CBL)’s window at LBR or use the mobile money payment system; mobile money services are provided by the two leading mobile network operators, Lonestar MTN and Orange Liberia.
Present the proof of payment to the LBR registrar where the process is completed.

The entire process takes one to four weeks. Registration of business is valid for 12 calendar months from the date of registration. Conducting commercial activities in Liberia without being registered will result in penalties.

The LBR publishes a fee schedule for new enterprise registrations applicable to different types of legal entities.

All that will now have to be done online with this new move.

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/

From September 30, More Loans Would Be Available For Nigerian Businesses

Nigeria is set to launch its economy back on track. The Central Bank of Nigeria is now making it mandatory for money deposit bank in Nigeria to maintain loan to deposit ratio of 60% effective September 30, 2019.

The statement from the bank reads as follows:

In order to ramp up growth of the Nigerian economy through investment in the real sector, the Central Bank of Nigeria (CBN) has approved the following measures:

All DMBs are hereby required to maintain a minimum Loan to Deposit Ratio (LDR) of 60% by September 30, 2019. This ratio shall be subject to quarterly review.
2) To encourage SMEs, Retail, Mortgage and Consumer Lending, these sectors shall be assigned a weight of 150% in computing the LDR for this purpose. The CBN shall provide a framework for classification of enterprises/businesses that fall under these categories.

3) Failure to meet the above minimum LDR by the specified date shall result in a levy of additional Cash Reserve Requirement equal to 50% of the lending shortfall of the target LDR.

The CBN shall continue to review development in the market with a view to facilitating graeter investment in the real sector of the Nigerian economy.

This is The First Time The Central Bank of Nigeria Is Weighing In On Minimum Lending Ratio

Previously, there Nigeria had no rule on minimum loan-to-deposit ratios. However, many Nigerian lenders have pegged ratios of about 40%.

However, Nigerian banks are so reluctant with lending to businesses and have resisted lending to businesses and consumers and instead piled their cash into naira bonds, which yield 14.3% on average, one of the highest rates globally.

Lenders worry that with inflation at more than 11%, extending more credit could endanger the financial system through an increase in non-performing loans, or NPLs.

That makes some analysts skeptical of whether the new measures will work.

“Forcing banks to lend under the current macro-economic situation will only result in a buildup in Non-performing loans,” analysts at Lagos-based CSL Research, including Gloria Fadipe, said in a note to clients.

“This could pose a risk to financial stability.”

CSL estimates it could result in an additional 1.4 trillion naira ($3.9 billion) of lending if the central bank gets its way.

Bad Loans

Non-performing loans as a percentage of total credit in the Nigerian banking industry declined to 11% in the first quarter from 14% a year ago, according to the National Bureau of Statistics.
Past experience with such measures isn’t encouraging. The central bank last year allowed banks to use their statutory cash reserves to fund manufacturers on the condition that such loans were at a maximum interest rate of 9% and a minimum maturity of seven years. The lenders didn’t take advantage of the policy due to credit risk and high returns on government bonds, according to Michael Famoroti, an economist and partner at Stears Business.

The Implication of This To Businesses

With this move, it is expected that Nigerian money deposit banks are going to loosen up money to Nigerians. For businesses desiring to raise funds, this is the best time to laugh as more banks would be rushing after them. However, it remains whether Nigeria’s commercial banks would not fight back, by either setting up SPVs or lending to more stable corporations, in which case the vision of the CBN may have been defeated.

So businesses should dust up their loan procurement files and get set for September 30, 2019.

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/

Business Will No Longer Be As Usual For Foreign Businesses In Mauritius

Mauritius is not leaving anything behind as it begins a major clampdown on foreign funds flowing into the country. Here is the latest on the new tax reform initiated by the Mauritian government: The country’s financial services regulator Financial Services Commission (FSC) has said it would process all applications submitted to it for the purposes of determining whether a business is qualified to benefit from any tax treaties entered into between Mauritius and other countries within two months, provided the applicants fulfill all legislative obligations that include meeting know-your-customer (KYC), anti-money laundering, counter-terrorist financing, and substance requirements, among other things.

“FSC is emboldening its commitment to be a progressive and transparent regulator by fixing a shorter time frame for its own internal processes,” said Neha Malviya, director, Wilson Financial Services.

Mauritius has always been faulted for operating a tax haven economy where foreign companies flock to in order to avoid tax in their home countries. But all that is about to stop, at least to a larger percentage. Going forward, Mauritius foreign businesses coming into Mauritius would be required to comply with the new tax reform.

‘‘If the authorities find that it is not in Mauritius, then the entity is not a tax resident at all, and if it’s not a tax resident, then the treaty benefits it gets with other countries will not be available to it,”experts said.

Many of the business structures currently in place for international companies may be reviewed by Mauritius itself following the tax reform. Other existing structures will be forced to increase the substance requirements within Mauritius for them to continue getting the tax benefits.

“It is a significant change and the way they look at it will be different and may have new test to figure out whether these companies are complying with the new norms. It needs to figured out what are the tests they are going to lay out,” Suresh Swamy, Partner, PwC told Asian Age.

This change would hit hundreds of offshore funds operating out of the island nation and investing in their countries to take advantage of the double taxation treaties between their countries and Mauritius.

As An Example

A South African company may have its board of directors in Mauritius while it is managed from South Africa. In this case, the authorities could say the company is not eligible for tax residency. They will now look at the substance on the ground in Mauritius.

In many cases, the board meetings happen in Mauritius, directors are in Mauritius but the control and management are actually not in Mauritius. This would no longer be the case under the new arrangement.

Also See: Inside Mauritius Where A Majority of South Africans Are Migrating To And Their Reasons

The Implication of This

The fallout of this move will be that many of the structures currently set up in Mauritius and claiming treaty benefits on the basis that they have tax residency certificates may now have to take a look at the structures again.

So, many of the Mauritius structures may get challenged in Mauritius itself and several existing structures will be forced to increase the substance requirements within Mauritius for them to continue getting the tax benefits, experts said.

In simple terms, the consequence of not being considered tax resident in Mauritius is that the company would not benefit from the numerous tax advantages that obtainable from running its business in Mauritius. So, it is not a case of claim benefit from Mauritius, but do business in your home country. You have to manage your business in Mauritius before you claim the benefits.

Mauritius is a tax treaty jurisdiction and has so far concluded more than 42 tax treaties which are in force with the countries listed above.

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/

Kevin Okyere, Billionaire Founder of Springfield Energy Honoured with Entrepreneurship Award at the FACE List Awards

July 4, 2019

One of Africa’s youngest billionaire businessmen, the 39-year-old founder of Springfield Energy, Kevin Okyere will be honored with the Entrepreneurship Award at the FACE List Awards gala during the 2019 Pan-African Weekend in New York City July 18-21st. At the age of 11, Kevin Okyere was already showing interest in entrepreneurship as he sold iced water to football supporters at the Kumasi Sports Stadium in Ghana to make extra cash. This surprised many considering he was from a wealthy home.

Born in 1980, Okyere completed his high school education in Ghana before moving to the United States where he studied Accounting at the George Mason University in Virginia while doing varying jobs including working as a security guard. Coming from the Ashanti region of Ghana, his father had made enough fortune in construction, steel manufacturing, and large-scale cocoa farming before becoming a traditional belief.

Yet, Okyere, with his entrepreneurial spirit, would take on jobs with textile companies in the U.K. during his family’s annual summer vacation trips to London, according to an article on Forbes. He would later, become the founder and Chief Executive Officer of the billion-dollar oil company, Springfield Group, a successful energy conglomerate in West Africa that he established and has managed for over 10 years.

Okyere has been able to build the Springfield Group from a $70 million investment into a $1 billion (annual revenue) multifaceted Ghanaian oil giant, according to Forbes. An entrepreneur, Kevin uses his razor-sharp skills in business strategy, finance and negotiations to envision and execute high-end commercial and developmental projects. Kevin is widely recognized by his peers, and local and international media as one of the pioneers in Africa’s energy sector.

In 2008, Kevin established Springfield Energy, one of the leading energy actors in Ghana who over a period of five (5) years, has supplied 12.5% of Ghana’s petroleum products requirement. The Company has also supplied hydrocarbons into other countries along the Gulf of Guinea. The Company is the first Ghanaian Independent Firm to lift crude oil from the TEN field (Ghana).

Kevin established Springfield Ashburton Limited in Nigeria, the only indigenous Ghanaian company to be involved in energy-related trade out of Nigeria. Kevin is the driving force behind Springfield Exploration & Production Ltd, the first wholly owned independent Ghanaian firm to own and operate a deep offshore oil block in Ghana. As a matter of fact, Springfield E&P is the only African company to own and operate a deep offshore asset.

Previously, Kevin operated a telecommunications company in Ghana after leaving a thriving career in the Accounting and Finance sector in the USA. He sits on the board of numerous companies including Aker Solutions Ghana Limited, a joint venture between Fairfax Oilfield Services Limited, a Springfield Group Company, and Aker Solutions of Norway, a leading global provider of oil field services. He also holds a highly influential position as a board member of the Society of Petroleum Engineers (Ghana Section).

Kevin is also a passionate leader and public speaker. He has engaged with business leaders, entrepreneurs, and students at Harvard Business School and the University of Ghana Business School on the topics of energy, governance, and entrepreneurship in Africa.

He is an esteemed philanthropist, establishing alongside the Springfield Foundation, the Kevin Okyere Foundation, an entity that delivers impactful initiatives in health and education.
The FACE List Awards are a prestigious celebration of pan-African achievement that honor the black diaspora’s most influential pioneers and trailblazers, while providing an opportunity for the business community to connect and celebrate our success stories.

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.

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China Launches $1 Billion Belt and Road Africa Fund. This Is How It Will Look Like

Don’t expect China to throw in the towel yet in Africa, despite the huge bad debt it has incurred so far on the continent. A new fund which is targeted directly at businesses in Africa has been launched on the sidelines of the World Economic Forum (WEF) meeting, currently underway in Dalian, China. The fund is code-named Belt and Road Africa Fund.

For Whom Is The Fund Meant?

The key focus of the funds would be investments in infrastructure, technology, e-Commerce, artificial intelligence (AI) and the beneficiation of the resource industry in Africa.

“The discussions that we’ve had with Chinese businesspeople, state-owned enterprises and family offices, have resulted in the establishment of this fund,’’ says Sekunjalo chairperson Dr Iqbal Survé, head of the fund said. ‘‘Africa is ready to grow and is heading towards a $5 trillion economy. The Chinese have seen how China was able to grow from 1980 when China made up only 2 percent of the global gross domestic product (GDP) when compared to today, where China makes up 19 percent of the global GDP. This fund is a great boost for the development of Africa.’’

Contributors to the fund were not the Chinese government as has been the case, but several Chinese family offices and business people, who are expected to capitalize the fund with a billion dollars.
The fund, according to Surve, will serve as a bridge between African and Chinese businesses, thus strengthening, particularly, the co-operation between business sectors in China and Africa. In order words, the Belt and Road Africa Fund would be between African businesses and Chinese businesses.

2018: Locational distribution of Chinese investment in Africa

How African Businesses Can Be Part of The Fund

Once the Belt and Road Africa Business Council (which is the body that oversees the fund) headed by Surve is launched in September 2019, African businesses would start benefiting from the fund.

A targeted business should be in the:

infrastructure
technology
e-Commerce
artificial intelligence (AI)
the beneficiation of the resource industry sectors.

The Belt and Road Africa Business Council are targeting a membership of at least 1000 Chinese and African companies.

Dr. Survé said the fund will announce the format of these investments, at the launch in September.

A Look At The China Belt and Road Initiative

The Belt and Road Initiative, as outlined by Chinese President Xi Jinping, is one of the most important developments of China and its contribution to the global economy.

2018: Sectoral distribution of Chinese investment in Africa

Launched in 2014, One Belt One Road, presented internationally as the Belt and Road Initiative, is China’s signature vision for reshaping its global engagements. It hopes to achieve the Communist Party of China’s (CPC’s) twin objectives of achieving national rejuvenation and the task of making China the largest and the most powerful country on earth.

The Belt and Road Initiative now spans three continents and touches 60 percent of the world’s population. The 65 or so countries that have so far signed on to the program (including approximately 20 from Africa) account for 30 percent of the world’s GDP and 75 percent of its energy reserves.

Some 50 Chinese state-owned companies are implementing 1,700 infrastructure projects around the world worth about $900 billion. One Belt One Road (OBOR) has been written into the state and ruling party constitutions as strategic priorities for China to attain Great Power status by the middle of the 21st century. All of China’s leaders have advanced this quest since the founding of the People’s Republic of China, but the pursuit has accelerated under President Xi Jinping.

The One Belt One Road network. (Map courtesy of the Mercator Institute for China Studies)

One Belt One Road has two components:

The Silk Road Economic Belt establishes six land corridors connecting China’s interior to Central Asia and Europe. It includes railroads to Europe, oil and gas pipelines from the Caspian Sea to China, and a high-speed train network connecting Southeast Asia to China’s eastern seaboard.
The Maritime Silk Road establishes three “blue economic passages” knitted together through a chain of seaports from the South China Sea to Africa that also direct trade to and from China.

The end state of One Belt One Road is the building of a new global system of alternative economic, political, and security “interdependencies” with China at the center.

One Belt One Road also increases Beijing’s control of critical global supply chains and its ability to redirect the flow of international trade. Central to these efforts are moves to open new sea lines of communication and expand China’s strategic port access around the world. In 2017, Chinese state-owned companies announced plans to buy or secure majority stakes in nine overseas ports, all located in regions where China plans to develop new sea lanes. This is in addition to the 40 ports in Africa, Asia, and Europe in which Chinese state-owned firms hold stakes worth a combined $40 billion.

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/

Nigerian e-health startup 54gene Raises $4.5m To Build Africa’s First DNA Biobank

July 3, 2019

This year has not been particularly bad for health startups in Africa. The latest on the list of newly funded startups in Africa is the Nigerian six-month-old e-health and genomics startup 54gene which has raised a US$4.5 million in a seed round of investment to allow it to build the first African DNA biobank.

A Look At The Funding

This round of funding, totaling US$4.5 million came from Y Combinator, Fifty Years, Better Ventures, KdT Ventures, Hack VC and Techammer, among others.
The startup plans to use the funds to pioneer and build the world’s first African DNA biobank, install electronic data capture systems in the leading tertiary hospitals in Nigeria, and expand its teams in Nigeria and the United States (US).
It is also planning expansion elsewhere in Africa.
54gene is a product of Stack Dx, which raised funding from early-stage VC firm Micro traction to develop the platform in January.
Since then, the startup has been selected to take part in the Y Combinator and Google Launchpad Africa accelerator programs, and it has now raised a sizeable seed round.

“The genomic revolution has taken place everywhere except for Africa; home to more than one billion people, and the very birthplace of humankind. What many people don’t realise is how genetically diverse Africa is, and that Africans have married within their tribes for thousands of years, which makes our DNA ideal for studying loss-of-function type mutations that can be replicated into new drugs. We believe this will be done through partnering with pharmaceutical industry players to drive groundbreaking research and layering a data science capability on the data being collected,” said Abasi Ene-Obong, founder and chief executive officer (CEO) of 54gene.

54gene Is Set to Build The Largest Database of Genomic and Phenotypic Consented Data of Africans.

54gene’s unique data sets will be used exclusively for research; to proactively address the significant gap the genomics market currently poses for Africa, using African DNA to focus on drug discovery opportunities that will improve access.
The startup has successfully completed pilot programs in three of Nigeria’s largest academic tertiary hospitals and is strategically expanding its biobanking activities to 10 of the country’s academic tertiary hospitals.
The biobank’s focus has also expanded from oncology to include cardiology, neurology, endocrinology and sickle cell disease.
54gene expects to secure 40,000 biobank samples by the end of this year and is working closely with research institutions on the continent, pharmaceutical companies, technology partners and healthcare regulators, to achieve this.
‘
World Economic Forum

“This capital infusion allows us to move swiftly. We are delighted to welcome like-minded, highly experienced investors, who will embark on this journey with us, to secure Africa’s pharma future and to impact millions of people’s lives through improved healthcare and drugs provision. We are committed to curating one of the most interesting genomic and phenotypic datasets in the world that will power the development of new drugs that benefit people of all races,” Ene-Obong said.

Seth Bannon, a founding partner at Fifty Years, said it was a “dirty secret” that the world’s genomic datasets were overwhelmingly Caucasian.

“By building datasets that are more inclusive, 54Gene will help democratise molecular medicine while unlocking insights that will lead to better therapeutics for everyone,” he said.

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/

At Last, Nigeria Prepares To Sign African Continental Free Trade Agreement (AfCFTA)

Nigeria is preferring to laugh last here. It is bringing to the table a population of over 200 million to the African Continental Free Trade Agreement. A tweet from the Nigerian Presidency wraps up the whole debate about why Nigeria has refused to be part of the deal.

‘‘Nigeria will sign the #AfCFTA Agreement at the upcoming Extraordinary Summit of the African Union in Niamey, Niger. Recall that the Pres. Cttee on the Impact & Readiness Assessment of the Agreement Establishing the AfCFTA submitted its Report to Pres @MBuhari Thur June 27, 2019.

The tweet goes further to quote Nigerian President as saying that:

“For #AfCFTA to succeed, we must develop policies that promote African production, among other benefits. Africa, therefore, needs not only a trade policy but also a continental manufacturing agenda.” — President @MBuhari, June 27, 2019

It further stated that:

“Our vision for intra-African trade is for the free movement of ‘made in Africa goods.’ That is, goods and services made locally with dominant African content in terms of raw materials and value addition.” — President @MBuhari, June 27, 2019 #AfCFTA

10:37 PM — 2 Jul 2019

“Let me state unequivocally that trade is important for us as a nation and to all nations. Economic progress is what makes the world go around. Our position is very simple, we support free trade as long as it is fair and conducted on an equitable basis.” — President @MBuhari

10:43 PM — 2 Jul 2019

Here are The Key Points You Should Know About the AfCFTA Agreement:

The CFTA is a free trade agreement among African countries, who are signatories to the Agreement. The CFTA is consistent with the World Trade Organisation rules relating to Free Trade Agreements. A free-trade agreement is an agreement among a group of two or more countries whereby the duties and other restrictive regulations of commerce are eliminated on substantially all the trade between the countries in products originating from the countries.

The Key Targets Of The Agreement

The Agreement wants to create a single market for goods and services in Africa and to permit more people to move around any country in Africa with minimum visa requirements.
It also seeks to create a market that is less free from custom duty and tariffs.
It seeks to make the movement of money and capital across African countries freer.
The Agreement also hopes that, if it ever becomes successful, there would be established a Continental Customs Union that would make issues of customs duty and levy less demanding in Africa.
The Agreement seeks better ways of bringing more industries to Africa as well as opening up its agricultural and food sectors.

What The Agreement Intends To Disrupt for African Businesses

Free Up Trade

The Agreement, when it comes in force on July 7, 2019, would finally put an end to tariffs charged on goods imported from African countries that have signed the Agreement. Therefore, countries that have signed the Agreement are required to set out the products or goods that they are willing to forfeit tariffs on. They are also expected to list out the import duties to be charged on products or goods that they are not ready to fully forfeit tariffs or import duties on.

The Agreement, in other words, would allow the signatory countries to offer preferential treatment to goods imported from other African countries that are also signatories to the Agreement. However, the Agreement has listed some steps to be followed in making sure that this preferential treatment fully benefits any signatory country. In any case, this preferential treatment would not be applied where the goods or products in question are meant to remedy any defect in trade.

The Implication of Nigeria’s Signature

With this proposed signature, Nigeria is signaling an end to the drama of Africa’s most populous nation and largest economy refusing to sign the agreement citing abuse and destruction of its local industries. What remains is for Nigeria’s Parliament to ratify the Agreement in order to fully benefit from the Agreement.

So far, 25 African countries have deposited their instruments of AfCFTA ratification with the African Union Commission. They include Ghana, Kenya, Rwanda, Niger, Chad, Congo Republic, Djibouti, Guinea, eSwatini, Mali, Mauritania, Namibia, SouthAfrica, Uganda, IvoryCoast, Senegal, Togo, Egypt, Ethiopia, Gambia SierraLeone, Sahrawi Republic, Zimbabwe, Burkina Faso, and SaoTomé and Principe

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/

African Energy Chamber Commends the Reappointment of Mohammed Barkindo as Secretary General of Organization of the Petroleum Exporting Countries (OPEC).

The African Energy Chamber (EnergyChamber.org) has commended the re-appointment of Mohammed Barkindo as Secretary General of OPEC saying it is as a factor of stability for African and global oil markets. Barkindo was reappointed yesterday during OPEC’s meeting in Vienna, Austria.

According to Energy Chamber, Secretary General Barkindo has managed to keep OPEC united as an organization under very unstable times and a deep crisis in commodity prices. His leadership and diplomacy have restored market stability and successfully sealed landmark agreements like that of the Declaration of Cooperation between OPEC and non-OPEC member countries.

More importantly for our continent, it is under Secretary-General Barkindo that OPEC gained its two newest African members, Equatorial Guinea in 2017 and the Republic of Congo in 2018. Last year, he was awarded the Africa Oil Man of the Year award by Africa Oil & Power for prioritizing of cooperation in turbulent times, for stabilizing oil markets and for raising the voice of Africa on the global energy stage.

“The extension of H.E. Mohammed Barkindo’s mandate as Secretary-General for another term is excellent news. It is well-deserved and a result of the trust he has gained from the entire global energy community,” declared NJ Ayuk, Executive Chairman of the Chamber and CEO of the Centurion Law Group.

“Secretary Barkindo has maintained faith in the future of the oil & gas industry, he picks the right battles and fights them with courage. As the race towards stability continues, his sense of teamwork will continue building the bridges our industry needs to achieve greater prosperity.”

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/

You Cannot Purchase Shares In These Nigerian Companies Now

The Nigerian Stock Exchange, Nigeria’s apex market for trade in stocks and securities has sent a bad signal to investors and dealers that the shares of the under-listed 11 Nigerian companies are now suspended from trading on the Exchange. The suspension is because the companies failed to file their accounts with the NSE within the stipulated time.

Nigeria’s NSE’s market rules states that if an issuer fails to file the relevant accounts by the expiration of the Cure Period, the bourse will first send to the Issuer a “Second Filing Deficiency Notification” within two business days after the end of the Cure Period; suspend trading in the Issuer’s securities; and notify the Securities and Exchange Commission (SEC) and the Market within 24 hours of the suspension.

A Look At The Affected Companies

The suspended companies include:

Conoil Plc

This company was also suspended last year for failing to file its audited financial statements as required by the market rules. The company declared over N1.4 billion dividends during its last financial year. The dividend declaration meant N2.00 on every 50 kobo ordinary share of the company.

Between 2012 and 2016, the company has paid a total of N8.4bn as a dividend. Conoil Plc is Nigeria’s indigenous petroleum marketing company. The 2016 revenue of the company stood at 85 billion naira. Nigerian Billionaire Mike Adenuga is the Chairman of the company.

FTN Cocoa Processors Plc

The company was also suspended last year October 8, 2018, for non-compliance with rule 3.1 of the Exchange (Issuers’ Rules) − rules for the filing of accounts and treatment of default filing. is a provider of processed agricultural commodities. The company’s market capitalization stands at NGN440m and it sold at 20 kobo per share on July 1 before the suspension.

The company is one of the few cocoa processing industries in the country. It supplies beverages to Nigeria’s leading beverage companies like Nestle Nigeria Plc and Promasidor Nigeria Limited, makers of Cowbell Milk and Cocoa products. The company has failed to convene an annual general meeting or declare a dividend for two consecutive years now. In a statement issued in March 2019, the company said it has lacked sufficient working capital to continue with production.

Goldlink Insurance Plc

The company has previously been suspended in 2017 for failure to file the relevant accounts by the expiration of the Cure Period. In 2010, the company paid its investors 2 kobo dividend per share. The company has not declared any dividend since 2017.

Lasaco Assurance Plc

The insurance declared 4 kobo per share dividend last year. Its market capitalization stands at NGN2.124 Billion.

Niger Insurance Plc

The company’s annual report for the year ended December 31, 2017. The report indicated a zero dividend per share. The company has also been faced with claims of its inability to pay off its indebtedness.

R.T. Briscoe Plc

The company is the distributor of Toyota motors in Nigeria. Trading on the company’s shares were suspended in 2018 for failing to file relevant financial results and accounts as expected.

Other suspended companies include:

Resort Savings & Loans
Royal Exchange
Standard Alliance Insurance
Universal Insurance.

The Implication of The Suspension

In view of the submission of its accounts and pursuant to rule 3.3 of the Default Filing Rules, which provides that the suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts, provided the Exchange is satisfied that the accounts comply with all applicable rules of the Exchange, the Exchange shall thereafter also announce through the medium by which the public and the SEC were initially notified of the suspension.

Consequently, the suspension of the above-listed companies will only be lifted upon the submission of the relevant accounts and provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange.

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.