One of the most cultivated leguminous vegetables in Nigeria, Soybean attracted the most gain in agricultural commodities trading on AFEX exchange during June and continued to outstrip paddy rice, cocoa, sorghum, ginger, and maize season-till-date.
The crop gained 3.4 percent week-on-week, moving from an average of 151 points during the first week to 156.50 between 7th and 13th of the month, based on the data obtained from AFEX Commodities Weekly Price Report. The increase drove the soybeans from 2508 percent to 35 percent, followed from a distance by ginger 11.47 percent, maize 11.11 and sorghum 7.79 percent.
The latest AFEX Commodities Index composite – a collection of all commodity indexes averaged together to represent overall market or sector performance- averaged 170.8 points during June, marking a 2.97 point increase from 1.77 percentage point at the beginning due to the closure of markets from the public holidays.
According to the report, the maximizing prices for Maize, Sorghum, Soybean and paddy rice recorded in Shuwarin market in Jigawa state; Oja tuntun, Kwara; Dawanau market, Kano and Mbulatawiwi, Borno state. The minimum price for maize, sorghum, soybeans, and paddy rice were recorded in Sabuwar Kasuwa, Borno state; Leggal, Gombe; Mbulatawiwi, Borno and Kamba, Kebbi state. For ginger, the minimum and maximum price was recorded in Kwoi market Kaduna state.
The report tracked the price movement of commodities traded on the exchange and all executed prices inclusive of logistic costs, covering commodities from the farm gate to the reference delivery point.
During the first week of June, the commodities index composite averaged 167.71 points marking a flat performance over the week due to the closure of markets from the public holidays. All sub-indices of the composite index recorded neutral independent performances for the period with maize falling during the week due to the increase in quantity available in the market without an equal increase in their demand.”
The period saw maximizing prices for Maize, Sorghum, Soybean and Paddy rice in Dawanau market, Kano state; Kwaya Kusar, Borno and Biu, Borno state. The minimum price for maize, Sorghum Soybeans, and paddy rice was recorded in Saba, Kaduna state; Biu, Borno and Burbara, Jigawa state respectively.
Digital platforms on agricultural investments monitored by AgroNigeria show that soybeans deals for July were sold out already. On Farmcrowdy, for instance, a unit of soybeans to be farmed in Jos was offered at N148,000 with 14 percent return on investment in five months. As of July 5th, no units were left.
According to IITA, the demand for soybeans in Nigeria alone is currently estimated at 2.2 million tons while the annual production Is only at 600,000 tons. Although Nigeria remains the largest producer of soybeans in Sub-Saharan Africa, the huge gap between demand and supply makes the crop insufficient for consumption, hence, a need to cultivate soybean.
But according to the United States Department of Agriculture, Nigeria had produced 1.1 million metric tons so far in 2019, rising 4.3 percent from 1.054 million in 2018.
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.
Fenix International, a company of ENGIE, offering Solar Home Systems across Africa has appointed co-founder and current COO Brian Warshawsky to the role of CEO.
Fenix International, a company of ENGIE, offering Solar Home Systems across Africa has appointed co-founder and current COO Brian Warshawsky to the role of CEO to drive the next phase of the company’s ambitious growth plans.
Warshawsky is succeeding Lyndsay Handler who has been with the company for 7 years and served as CEO since 2016. Warshawsky is well-placed to lead the company, having previously spent 5 years at Apple as part of the iPod Operations team before co-founding Fenix International in 2009. Having worked as COO with Fenix from inception, Brian has a deep understanding of the business from product design to manufacturing, country operations, distribution, and last-mile customer experience.
Ivan Topalov, who previously served as Corporate Finance Director has been promoted to Chief Financial Officer following the departure of the previous CFO, Josh Romisher, in June. The company has also appointed a new Head of Customer Credit, Alison Boess, reporting to the CEO.
Yoven Moorooven, CEO of ENGIE Africa, said, “Brian is a highly regarded leader with the right mix of skills and experience to lead this new chapter for Fenix as we continue to establish ourselves as the market leader across Africa. With commercial operations in Uganda, Zambia, Ivory Coast, Nigeria, Benin and Mozambique, Fenix is growing from strength to strength. Under Brian’s leadership, I’m incredibly excited about the future of our decentralized energy offering in Africa.”
He continued, “I join everyone at ENGIE and the Fenix team in thanking Lyndsay, Jit, and Chris for their many years of dedicated service and commitment to the Fenix Mission. Under their leadership, Fenix transformed millions of lives across the continent and built an inspiring team that is driven to succeed.”
Brian Warshawsky, newly appointed CEO commented, “While it is difficult to say goodbye to such incredible colleagues and collaborators through so many years, I’m proud to be able to continue their legacy. On behalf of the Fenix team, I would like to thank Jit for his technology leadership and the work he did to build Fenix Power, our next-generation solar home system platform.
I would like to thank Chris for his commercial and marketing leadership as Fenix grew from a few customers in Uganda to 500,000 customers across 6 countries in Africa. And I would like to especially thank Lyndsay for leading Fenix through so many milestones, most recently the ENGIE acquisition and establishing Fenix as the strongest off-grid solar home system company in the industry.”
He added, “Backed by a world-class product, a world-class team and with the full support of ENGIE, I am excited for what we will do to take our life-changing product to customers across the continent. We are now set for an exciting future as we continue our expansion across Africa and achieving universal energy access for all.”
Lyndsay Handler added, “Building Fenix from 2011 to 2017 and accelerating our growth following the acquisition by ENGIE in 2018 has truly been an honour. Together, we have delivered clean, affordable energy to over 500,000 households or 2.5 million people in six countries across Africa.
I am especially proud of the way we built a passionate Fenix team based in Africa who are deeply committed to our mission, values, and customers. Looking ahead, I am happy to pass the torch to our co-founder Brian and I am confident that the entire team will put the customer first in all that we do in Fenix’s next chapter. I hope that Fenix will continue to create new products and drive forward innovation so that clean energy is affordable to all at the last mile.”
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.
VC4A and ABAN are pleased to announce the 6th edition of the Africa Early Stage Investor Summit (#AESIS2019). The Summit will take place from 13-15 November at Workshop17 at the V&A Waterfront in Cape Town, South Africa. The conference brings together leading investors from Africa and beyond to network, exchange insights, create partnerships and make deals. This event is designed ‘for investors, by investors’.
What’s in store at #AESIS2019
The Summit’s speakers and guests hail from the leading angel networks, venture capital (VC) funds, impact investors, accelerators, corporate venture divisions, industry associations, and the public sector.
The number of Africa-focused angel investor networks and investment funds are rapidly growing and maturing, bringing both critical challenges and greater opportunities for venture capital funding on the continent. Summit delegates will explore developments in Africa’s early-stage investment space and will set the agenda for the coming years.
Day 1 on 13 November is ‘Academy Day’, which includes a series of interactive masterclasses and workshops, ending with a welcome cocktail reception. Day 2 on 14 November is the main Summit Day and will include inspiring keynote presentations by industry leaders and roundtable discussions, and it will end with an Investor Dinner.
Day 3 on 15 November is the optional Innovation Tour featuring insightful visits to key start-up hubs, accelerator programs and scaled up start-ups in the Cape Peninsula area. The detailed program is being finalized.
Announcing Naspers Foundry’s 2019 partnership
Naspers Foundry will be sponsoring the Summit’s main cocktail reception on 14 November and will be contributing to the Summit’s program development. Naspers Foundry is an R1.4 billion start-up funding initiative aimed at boosting the South African technology sector. As well as providing much-needed funding, Naspers Foundry helps talented and ambitious technology entrepreneurs develop and grow businesses that improve people’s daily lives.
“At Naspers, we believe in backing local entrepreneurs in growth markets and helping them by leveraging our global scale and experience. The Africa Early Stage Investor Summit provides a unique opportunity for Naspers to engage with like-minded investors and ecosystem partners from across the continent as we build out Naspers Foundry, and our broader investment ambitions”, said Phuthi Mahanyele-Dabengwa, CEO South Africa, Naspers.
Building on the success of 2018
The 2018 edition brought together over 300 investors from prominent African angel networks and VC funds to identify and address the critical gaps in the early-stage investment space going into 2019.
At the 2018 Summit, a number of successful partnerships were created, including a new partnership between South Africa’s Technology Innovation Agency (TIA), a public entity and the South African angel investor networks, Dazzle Angels and Jozi Angels. ABAN also signed an MoU with the African Union to deepen their collaboration to support entrepreneurship across the continent.
Additionally, L’Afrique Excelle, the Francophone edition of the World Bank Group’s XL Africa post-accelerator, formally launched at the 2018 Summit. The programme brought an unprecedented spotlight and momentum to French-speaking African growth stage start-ups. Over 30 VC funds including the IFC, ODV, Proparco, Outlierz Ventures and Compass VC formally signed up as investment partners for the program, with most of these partnerships formed over the two days of the Summit.
VC4A Venture Showcase – Series A
In 2017 and 2018, the Summit also featured a venture showcase of leading African digitally-enabled scale-ups from across the continent, resulting in a number of series A deals totaling over $15 million.
In the 6th edition, ten growth-stage companies that have been selected and vetted by Africa’s leading VCs will be introduced in the showcase. These companies represent a new class of investment opportunities across the continent.
The selected ventures have strong revenues, are well-positioned for regional and international expansion, and demonstrate important innovations that are disrupting industries like agriculture, healthcare, housing, transportation, and finance.
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.
Egypt’s Swvl is coasting home big time. The startup is never looking back. Its next bus stop is Lahore, Pakistan ’s capital. Watch out for how the two-year startup is invading Uber, Careem and Airlift’s territories and raising huge funds to scale its operations. Mustafa Kandil is indeed never looking back. Swvl’s wind is gradually sweeping strong. The two-year-old startup is now in Egypt, Kenya, Pakistan, and counting.
An In-depth Look At The Momentum
This move by Swvl, the Cairo-headquartered app-based bus booking startup to Pakistan makes Pakistan Swvl’s third market after Egypt and Kenya.
Swvl had announced plans to expand to Pakistan earlier this month.
The Egyptian startup seems to have developed a habit of being secretive about their expansion plans (which makes sense).
In early 2018, when Swvl raised tens of millions of dollars in its Series B-1, the startup had said that it will use the money to expand to Southeast Asia, starting with Manila in 2019 Q1 but they actually expanded to Kenya which was never revealed previously.
Last month, Swvl said that it is planning to expand to Nigeria (by mid-July) but now we’re learning about their Pakistan expansion.
Founded in 2017, Swvl dubs itself as a private premium alternative to public transportation enabling riders to book seats on its network of “high-quality” buses (owned and operated by third-parties). The startup operates bus lines on fixed routes with customers boarding the buses from specific pick-up spots to be dropped at pre-defined (virtual) stations.
The Startup Is Fully On Ground In Lahore and Ride Sharers Are Invited To Place Bookings
Although Swvl has not shared the details about the number of lines and buses its operating in Lahore, Lahore city is, however, Pakistan’s second-largest home to over 10 million people and is similar to Swvl’s home market Cairo in many ways.
Both the cities have a poor public transportation system (things in Lahore have improved lately with the government-run bus rapid transit service but it only covers a specific part of the city), long commute times, and traffic congestion is some of the similarities the two cities share.
And that is why both the cities offer a great opportunity to startups like Swvl to solve some of these issues.
Expect A Stiff Competition But An Easy Triumph
Swvl is not the first player in this category in Pakistan. Airlift, a local startup that was launched earlier this year and is in the process of closing their first investment round has already gained decent traction in Lahore (and is apparently available in Pakistan’s largest city Karachi as well).
But Swvl obviously has the resources to take all these players on. Backed by some of top regional VCs including BECO Capital, Raed Ventures, Oman Technology Fund, and global names like Endeavor Catalyst, Swvl has raised over $80 million in VC money to date which makes it one of the best-funded startups in MENA and the best-funded startup in this category.
Pakistan might be a new market for Swvl but having worked there earlier, their team has enough know-how about the dynamics of local transportation ecosystem. Mostafa Kandil, in his previous role as Market Launcher for Careem, has launched different cities in Pakistan. Swvl’s Head of Global Expansion Shahzeb Memon, a Pakistani national, was previously with Careem (Pakistan) serving them as Supply Manager before joining Swvl in 2018.
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.
With the latest investment coming from Rand Merchant Investment Holdings (RMI), South Africa’s ‘crowd farming’ startup, Livestock Wealth is now worth more than $7 million dollars ( R100 million), far surpassing the goal it set for itself at its launch far back in 2015.
Agri-tech entrepreneur and CEO of Livestock Wealth Ntuthuko Shezi is confident that this is just the beginning. His may have a point here. His startup has just further landed a business deal with retail giant Woolworths which it is supplying free-range beef.
A Look At The Funding
Although the terms of the funding were not disclosed, Ntuthuko Shezi hinted RMI’s investment is a big boost both in terms of capital to grow the business and from a profile perspective.
“Livestock Wealth now has more than 2 000 cattle on several farms in different parts of the country and about 1 000 investors currently. Now that we’re gaining traction, our target is to have about 10 000 investors by the end of our financial year in February.
“Late last year, we secured a lucrative agreement to supply Woolworths with free-range beef and we sent through our first supplies in April. In the last three months we have supplied Woolworths with around 64 tons of beef. Woolworths is a great brand to be working with and it naturally has strict supplier protocols, which we must adhere to.”
Here Is Why Shezi’s Livestock Wealth Is Not Just Your Regular AgricTech Startup
Livestock Wealth was only started in 2015 when Shezi realized there was an untapped commercial opportunity around livestock farming in South Africa that could leverage the African community’s close links to cattle.
The KwaZulu-Natal-born electro-mechanical engineer Ntuthuko Shezi’s Livestock Wealth offers people with no access to land, time or skills the opportunity to own livestock within a professionally managed farming operation.
The Web and mobile application allow investors to invest their money in cows rather than in unit trusts, shares or exchange-traded funds.
Through connecting its network of small-scale partner farmers to investors, the business model allows farmers who cannot afford to scale their business to access capital, while offering the investor an opportunity to invest in assets which are not influenced by financial market trends.
Potential investors can buy online, from the partner farmer, while Livestock Wealth facilitates and manages the assets like an investment portfolio.
In fact, Shezi did his research well: Cattle farming in South Africa is estimated to be worth around R142 billion, behind poultry, with the local beef industry generating an estimated $144 million in exports in 2017, according to data from Trade Map. This is the opportunity he pounced on.
The growth in the livestock business was so overwhelming that the investment startup says it has now expanded its offerings to include an array of agricultural assets that can be owned by potential investors, including sugar cane plants, macadamia trees, and maize plants, and a separate option of investing in a connected garden system which grows all types of organic vegetables.
The new offerings give investors who lack the time and farming expertise the opportunity to own tangible, high-value, growing assets.
“For instance, macadamia trees, the most lucrative crop in SA, can cost around R20 000 per hectare for the investor, but after a few years of growth, one tree can reap rewards on a minimum investment of around R80 000.”
The South African macadamia industry is the largest producer of macadamia nuts worldwide. According to the 2018 World Nut and Dried Fruit Conference, an estimated yield of 53 500 tonnes of macadamia trees reaped a sales value of well over R3.2 billion in 2018.
The connected garden system, a pool-table-sized garden which grows any vegetable crop, including spinach, lettuce, cauliflower, and Brussel sprouts, is managed around the clock by an experienced partner farmer.
Investors can own several smart garden systems, which are connected to an Internet of things monitoring system, allowing the farmer to track the environmental condition of the plants, while the investor can view and track the plants at almost any time via the app.
Livestock Wealth has previously partnered with financial institution Fedgroup, through its Impact Farming mobile app, which allows investors to endow in blueberry bushes, beehives, and other plants, which are farmed and managed on their behalf from as little as R300.
It has also partnered with MTN Connected Livestock, which helps monitor the livestock online through a tracking device, providing investors with data about the condition of their animals, through the app.
The crowd farming company has also partnered with Woolworths and wholesaler Cavalier Foods, to provide them with free-range beef, which is free of antibiotics and growth hormones.
Shezi says the startup is also engaging potential partners such as restaurant chains, public hospitals, prisons and retailers to connect them to its farmer partners who will then supply them with fresh produce on a regular basis.
“Typically, we are looking at supplying institutions such as Johannesburg General Hospital with onions or lettuce on a daily basis and also supply some retailers and restaurants with a few kilograms of veggies on a daily or weekly basis. The farming systems are not limited to vegetables, but also include growing plants that will be used to make food spices, such as seeds, buds, fruits, flowers, bark and roots of plants.”
A Profitable Business?
Shezi says around half of South Africa’s 14 million cattle are still owned by black South Africans — largely in rural areas — who do communal farming without access to markets.
“Livestock Wealth bridges that gap. It gives communal farmers access to markets, while offering investors a chance to invest in cattle. They [investors] can chose to invest in cattle that will be grown on the farms we work with to supply either meat or cows that produce offspring,” he says.
Things have however progressed significantly since then; Shezi says the business is now an R100 million enterprise with its eye on further investments into SA’s agriculture sector.
This is good news for a business that started out with only 26 cows in 2015 and currently manages a herd of around 2 000 cattle at four farms across the country.
These have a total value of over R20 million and are managed on behalf of 800 investors who are not only South Africans but include Germans, Americans, Canadian, Irish, English, and Chinese.
The company says since inception, it has paid out almost R5 million in dividends. Its business model works like a bank fixed deposit, where the client would invest in a cow for a six- or 12-month period with an option to re-invest.
The 12-month option means investing in a pregnant cow (R18 730) and the six-month option is investing in a calf (R11 529), which will eventually be sold for free-range beef with an average return on investment of about 12%.
Another alternative is the shared-investment option (R576) where the investor buys a portion of a cow together with other investors.
For An Electromechanical Engineering Graduate, This Is A Major Achievement
Shezi graduated as an electromechanical engineer from the University of Cape Town and is no stranger to tech start-up innovation. After leaving professional services heavyweight Accenture in 2006, he launched Scratch Mobile. He was born in rural Ndwedwe on KwaZulu-Natal’s North Coast, which he says has influenced his rural-urban agri-tech innovation.
“Government can’t give us all a farm divided into small amounts. We need to move away from the old farm model of one person owning land, having all the skills and farming their own product,” says Shezi.
“With crowd farming, one entity owns the land, and the farmer who loves farming and has the skills continues to farm, and then others invest in the production. Whether it is cattle or blueberries or veggies, other people can be involved in production without the investors getting their hands dirty.”
“We are hoping that our business model will be a game-changer in lowering the barrier to entry for millions of aspirant farmers. The main definer is that the two parties each have what the other wants, and we are committed to managing the relationship between the investor and the farmer, by giving the farmer the option and the ability to unlock the hidden value in their crops and livestock,’’ he says.
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.
For startups looking to get funding for their business, there have been histories of venture capital funds and angel investors who have been vibrant in all round funding of startups. One fact from one reports on startup funding so far is that there is plenty of money out there, from plenty of hungry investors.
Knowing who these investors are would help you streamline your search for investors for your startups and cut the long journey short. The most dollars are going into late-stage startups, followed by early-stage funding, then funding for technology growth and angel or seed series rounds.
Now find out who is handing out the cash.
This data shows who the active VCs are now, and who would probably be the best investors to pitch with your deck.
Active Lead Investors
According to data from Crunchbase here are the 10 most active lead investors.
Start-Up Chile
Insight Venture Partners
Tencent Holdings
New Enterprise Associates
Sequoia Capital China
Accel
Sequoia Capital
Higher Ground Labs
Quake Capital Partners
Goldman Sachs
Most Active Seed Stage Investors
When pitching, an important point is to be pitching so as to reach to those who are most likely to fund your type of round. The most active investors in seed rounds during the past 3 months are:
Startup-Chile
Hiventures
Crowdcube
Plug and Play
Innovation Works
500 Startups
Innova Memphis
Entrepreneurs Roundtable
Berkeley SkyDeck Fund
Quake Capital Partners
Top Early Stage Investors
For those, going for early-stage funding, consider these active players:
IDG Capital
New Enterprise Associates
Sequoia Capital China
Accel
Y Combinator
ZhenFund
Sequoia Capital
Matrix Partners China
Intel Capital
Index Ventures
Most Active Late Stage Investors
Interested in looking for a Series B or anything above for a growth stage round, the following firms have been the most active globally.
Sequoia Capital
Tencent Holdings
Insight Venture Partners
Bpifrance
Goldman Sachs
Bessemer Venture Partners
New Enterprise Associates
Khosla Ventures
Andreessen Horowitz
Sequoia Capital China
These Investors Have Been The Most Active In Africa, Whether Early, Middle Or Late Funding
Click here to view the list of good investors in African startups.
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.
Startups in Nigeria who do not have landed property but movable assets as securities for loans now have an alternative. Following the passage of Secured Transactions in Movable Assets Act into law, owners of small businesses can now borrow from banks and other financial institutions, even though they do not have any lands or buildings. All they need to do is to first register the movable assets such as cars, or any property of worth (which property is not land or building or fixed property) with the National Collateral Registry.
This Is How It Works Under The Secured Transactions in Movable Assets Act
This law allows small, medium business owners or startups to create security interests in respect of both their present and future movable assets.
Movable collateral under the Collateral Registry Regulation includes equipment, inventory, accounts receivable, household items, bank accounts, farm products, motor vehicles, boats, planes, consumer goods, trees that have been severed and oil, gas or minerals that have been extracted, etc.
You can register your interest over such assets as you do when you want to perfect titles to land at the Land Registry.
In this case, all that is required is that you take steps to perfect the interests in that asset.
The law has created a National Collateral Registry where you can now perfect the assets.
An asset is deemed perfected when a financial statement in respect of such a security interest has been registered with the National Collateral Registry.
The registered financial statement is valid until the expiration of the terms specified in the financial statement.
The creditor who registers the Financial Statement is issued with a confirmation statement by the registrar.
Where two security interests have been perfected in respect of the same asset, the first to be registered would rank first.
Using the confirmation statement and other documents, you may then apply for loans at a bank in Nigeria under the National Collateral Registry Scheme or theSecured Transactions in Movable Assets Act
Why This Is So Different From Normal Collateral Requirements From Banks
Previously, before the passage of the Secured Transactions in Movable Assets Act, small and medium scale businesses in Nigeria were often required to present their landed property or buildings (which they hardly had) in order to procure a loan.
Now, persons who have movable assets in Nigeria such as equipment, inventory, accounts receivable, household items, bank accounts, farm products, motor vehicles, boats, planes, consumer goods, trees that have been severed and oil, gas or minerals that have been extracted can now borrow loans from banks without landed property being demanded as collateral. All they need to do is to register the asset with the National Collateral Registry in order to create security interests over the assets.
Registration will remain in the Collateral Registry until the expiration of the term indicated in the financing statement, or until the registration is canceled (discharged). The period of registration does not, however, need to be the same as the duration of the loan, as there may be an expectation between the debtor and secured creditor that the loan will be renewed. Six months after the expiration of a registration, it shall cease to be publicly searchable and will be moved to an archive, from which it can be retrieved only by the Collateral Registry staff.
Where the debtor fails to pay back the loan, the secured creditor has a right to enforce its security interest in the collateral.
Key Things To Have In Mind About The Secured Movable Assets In Question
With this law, individuals in Nigeria may apply for a loan as a group. They may use their assets that they own individually or jointly as collateral for the loan.
Using immovable property, such as land or building carries certain unwanted risks for the debtor. It is therefore reasonable that a debtor will be more comfortable with losing equipment or other movable property than with losing a house in case of a default.
Currently, it costs N1000 for the registrations of initial financing statements, and N500 for renewal or amendment. However, these fees may change from time to time, so it is recommended that you check the Collateral Registry website for the up-to-date information.
Under the Collateral Registry Regulation, the secured creditor may enforce its security interest by taking possession of the collateral or rendering the collateral inoperative. Subsequently, it may dispose of the collateral through a sale. The Collateral Registry Regulation permits the secured creditor to proceed extra-judicially without having to obtain a court order before repossessing the collateral. The secured creditor may also choose to apply to the court to authorize enforcement.
Where the proceeds of the sale of the secured assets are insufficient to satisfy the loan, the debtor will be liable for the shortfall. The secured creditor has a right to obtain the balance from the debtor directly or may proceed against other assets of the debtor. The secured creditor may initiate legal action against the debtor for the balance and get a judgment for the amount owed. It may also choose not to take legal action against the debtor and just write off the loss on the loan.
Collateral Registry Nigeria
Are Secured Transactions In Movable Assets Already Taking Place?
To a large extent. The Central Bank of Nigeria (CBN) recently disclosed that the National Collateral Registry has assisted over 154,000 Micro, Small and Medium Enterprises (MSMEs) to access N1.2 trillion loans from 628 financial institutions.
The report showed that the number of MSMEs in Nigeria that have used their movable assets to obtain loans from financial institutions through the NCR rose to 154,827 as at December 19, 2018, from 100,049 in the first year, 2017, indicating the increase of 54 percent. The report also showed that 22,251 of the MSMEs were female entrepreneurs. Further breakdown showed that 146,777 of the borrowers were individuals, 3,416 were micro businesses, 2,169 were medium businesses, 1,777 were small businesses and 687 were large businesses.
The number of participating Deposit Money Banks (DMBs) rose to 21 from three in 2017, microfinance banks rose to 551 from 96, Development finance institution rose to four (4) from one(1), merchant banks rose four from one, finance companies rose to 13 from 2 while non interest bank rose to one from zero in 2017.
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.
The second edition of the EurAfrican Forum 2019 that attracted over 450 participants from Europe and Africa with the theme “Partnership of Equals: Sharing Values, Sharing Prosperity” ended in Lisbon, Portugal over the week. The event which focused on creating a new approach and paradigm for the relationship between Europe and Africa, changing the narrative for both continents to create an accountable, prosperous and sustainable future together was a resounding success, say the organizers.
During the two day event, many relevant topics were brought to discussion: i) African entrepreneurs driving inclusive innovation and growth; ii) From donor-recipient towards equal participation; iii) Changing the narrative: valuing talent and diversity from migrant flows; iv) Africa: the new frontier for impact investment and innovation and v) Legacy to growth: rehabilitating the heritage, culture and tourism.
Also, four parallel breakout sessions deepened related topics, namely: rebuilding Mozambique; security, migration and talent; tools and strategies for women and youth empowerment; and EU-AF economic integration and digital infrastructure for Africa.
With contributions from over 40 international speakers, the Forum had the participation of 450 participants, from 17 European countries and 24 African countries, including the participation of His Excellency, the President of the Republic of Mozambique, Filipe Nyusi, and His Excellency, the President the Portuguese Republic, Marcelo Rebelo de Sousa.
The EurAfrican Forum is a networking and discussion platform underpinned on the power of Diasporas for connecting people, cities, regions and continents, gathering prominent and influential people that are forging enduring ties between the two continents – government officials, high profile business personalities, investors, young entrepreneurs, activists, social influencers, NGOs and media.
Hosted by the Portuguese Diaspora Council and the Municipality of Cascais, with the High Patronage of the Presidency of the President of the Portuguese Republic and the Government of Portugal, the EurAfrican Forum is led by José Manuel Durão Barroso (Chairman of the EurAfrican Forum and former President of the European Commission / former Prime Minister of Portugal) and Filipe de Botton (Chairman of the Board of Directors of the Portuguese Diaspora Council)
“The mission of the Portuguese Diaspora Council was until today to help Portugal. We think today we should go to the next step: to motivate the African countries to create their own Diaspora Councils.” so says Filipe de Botton, President of the Board of the Portuguese Diaspora Council
In his own words, the Deputy Mayor of Cascais, Miguel Pinto Luz said that sharing is actually the keyword (…) I believe in healthy competition between companies, and even between countries, but above all, I believe in people cooperating and sharing.
Koen Doens, Directorate-General for International Cooperation and Development, European Commission noted that there’s a lot of activity happening in Africa. 80% of young people want to be entrepreneurs. If we look at the dynamism of what is happening – in agritech, in fintech, in lots of issues, even in social entrepreneurship – I mean, this is incredibly important, and that is where Europe and Africa need to link up.
Explaining the importance of connecting, the Botswana Satirist Siyanda Mohutsiwa said that “we are more alike than we are different. (…) A shared imagination is one in which a collection of people from different backgrounds, who have different lived experiences, have different perspectives and ways of thinking, come together to create delusions collaboratively.
The modern world is filled unfortunately with the singular genius narrative. (…) A shared imagination is behind some of society’s greatest achievements: technology, space travel, and political ideas continue to be driven by groups of people who have the courage and faith in each other to come together and answer the question: what if…?”
On the need to address the issue of migration, Antonio Vitorino of the International Organization of Migration (IOM) said that there are two pre-requisites when it comes to the migration dialogue between Europe and Africa. The first one is building mutual trust and the second one is to have a sense of shared responsibilities between Europeans and Africans when it comes to managing migratory flows.
The next event comes up in 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.
Printronix, a global pioneer of line matrix technology, has recently signed a distribution agreement with Tri-Continental Ltd.
Under the agreement, Tri-Continental, one of the largest and most prominent IT distributors in the African market, will distribute Printronix and TallyGenicom line matrix printers as well as its desktop serial dot matrix models, the S809 and S828. Through this partnership, Tri-Continental and Printronix will broaden their reseller base and strengthen their presence and market penetration in this important region.
Based in West London, Tri-Continental has expanded its operation to span 36 countries in Central, East and West Africa, and has been IBM’s strongest performing channel partner there for almost 30 years. The company has a strong reputation for providing the right solutions for its customers and adding value to the supply chain. It has been working with global brands such as IBM, NetApp, Epson, and Canon.
Joseph Musisi, Tri-Continental Director and General Manager, says he is confident that the expanding range of reliable quality printers from Printronix is ideal for Africa’s many applications, its demanding environments, and multiple vertical markets. “Printronix is well known for its reliable quality printers. The devices are globally recognized for their unrivaled performance in mission-critical applications where downtime is not an option and cost-effectiveness is a priority. Printronix is a trusted supplier with a long list of high profile global customers, many of whom have a presence in Africa. We can add new local customers to that list, as well as expand the usage of Printronix printers across all the countries where we are present,” explains Joseph.
With over 40 years of success to build on, Printronix offers a wide range of printing solutions and applications for various industries, as well as ongoing support, sales training, and service to its channel partners. Regional Sales Manager for Sub-Sahara and South Africa at Printronix, Lareen Kohler says: “Tri-Continental is firmly positioned as a leading Pan-African distributor of world-class technology products, and, as an additional partner in the region, it will help us expand our channel base and reach end customers in Africa that we are not currently engaged with. This is an important market for Printronix so Tri-Continental is an ideal choice to contribute to our business growth plans for the region.”
Rosemarie Zito, Printronix Vice-President of EMEA Sales & Marketing, adds: “Printronix is looking forward to working with Tri-Continental. Its team has a great track record for building reseller channels throughout Africa, which will greatly support our solutions.
Printronix is the OEM supplier of former IBM 6400 and 6500 line printers and, as such, we are partnering with Tri-Continental as it has such extensive knowledge of the corporate IBM customers in the region. We are sure that Tri-Continental will help us better serve them and upgrade legacy line and serial dot matrix printers. In addition, we believe Tri-Continental is complementary to our existing distribution channel in the region.”
The Printronix P8000 and TallyGenicom 6800 line matrix series with Pedestal, Zero Tear and Enclosed Cabinet models, and the S809/S828 serial dot matrix printers deliver flexible design, adaptable functionality, and manageable savings.
Line and serial dot matrix printers are designed for users in manufacturing, distribution and logistics, government, banking, and food & beverage. They can be used to print invoices, shipment, and transportation documentation, bank and customer statements, and product labels. Users can expect maximum uptime, low cost of ownership, and maximum reliability in demanding environments.
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.
Good day for South African businesses, bad day for their Nigerian counterparts. This is because there are still so many issues surrounding equity crowdfunding in Nigeria. Below, we discuss the legal implications of crowdfunding in Nigeria more intensely.
Crowdfunding sometimes appears the only alternative for start-ups, in the face of stifling interest rates on loans from banks and financial institutions, and lack of funds from family and friends as well as the absence of venture capitalists and angel investors. Crowdfunding is a way of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet. Here is a quick grasp of reality.
The United States
The United States’ Securities and Exchange Commission has made a lot of rules on Crowdfunding which will enable eligible companies to offer and sell securities through crowdfunding. Thus in the US, all transactions under Regulation Crowdfunding take place online through an SEC-registered intermediary, either a broker-dealer or a funding portal. A company is to raise up to a maximum aggregate amount of $1,070,000 through crowdfunding offerings in a 12-month period. However, there is a limit on the amount individual investors can invest across all crowdfunding offerings in a 12-month period. Securities purchased in a crowdfunding transaction generally cannot be resold for one year.
South Africa.
There is no substantial legislation on crowdfunding in South Africa, except that equity crowdfunding is a form of securities. However, South’s Africa’s first equity crowdfunding platform Uprise.Africa was launched after being told by the Financial Services Board (FSB) that the platform does not fall foul of the Collective Investment Schemes Act, the platform’s founder and COO Patrick Schofield said. Inge Prins, the Chief Marketing Officer Uprise.Africa, had hinted the platform, in one of its numerous success instances, paid out investment funds to a local brewery, Drifter Brewery following a successful campaign that raised R3,889,000 (US$293,000), far exceeding its stated goal by almost R1,000,000.
Understanding How Crowdfunding Works
Crowdfunding refers to raising money from the public (who collectively form the “crowd”) primarily through online forums and social media.
Crowdfunding models include: Donation-based crowdfunding (in which donors are not typically granted anything in return for their donation)
Rewards-based crowdfunding (in which backers contribute funds in exchange for some reward–in many cases the item produced by the campaign)
Equity crowdfunding (Equity crowdfunding refers to raising money from small public investors (who collectively form the “crowd”) primarily through online forums and social media. In exchange for relatively small amounts of cash, investors get a proportionate slice of equity in a business venture).
Debt/lending crowdfunding (in which lenders provide money and expect their loan to be paid back with interest).
Crowdfunding For Private Companies Cannot Work Unless Nigeria’s Companies And Allied Matters Act (Nigeria’s Chief Company Legislation) Is Amended.
The idea of having crowdfunding for companies is that the general public would be allowed to contribute towards the formation of the companies. Now while the public can contribute to an idea, the same is not possible for a company. By section 22(5) of Nigeria’s CAMA, it is impossible for a private company to invite the members of the public to subscribe to its shares. It is also impossible for equity crowdfunding to work because the idea of equity crowdfunding is that the public funds the formation of the company expecting to be repaid their contributions by way of shares in the company.
Again, under Section 22 of CAMA, the maximum number of persons a private company shall have shall not exceed fifty, not including persons who are bona fide in the employment of the company.
Nigeria’s Securities and Exchange Commission and Crowdfunding
The Commission determines governs all company securities in Nigeria. Section 13 of the Investment and Securities Act (the chief Act that regulates securities of companies in Nigeria) empowers the Commission to:
regulate all offers of securities by public companies and entities;
register securities of public companies;
prepare adequate guidelines …necessary for the establishment of securities exchanges and capital trade points.
register and regulate the workings of venture capital funds and collective investments schemes in whatever form;
Consequently, by Section 67(1) of the Act, no person shall make any invitation to the public to acquire or dispose of any securities of a body corporate or to deposit money with anybody corporate for a fixed period or payable at call, whether bearing or not bearing interest unless the body corporate concerned is-(a) a public company, whether quoted or unquoted, and the relevant provisions of Act are duly complied with.
To this effect, the SEC, which was empowered to do so, has gone ahead to give the listing requirements for any company in Nigeria to include that the company must be registered as a public limited company with no restrictions on the transfer of fully paid shares; have a minimum of three (3) years operating track record; have a pre-tax profit from continuing operation of not less than N300million cumulatively for the last three (3) fiscal years and a minimum of N100 million in two (2) of these years. Hence, since equity crowdfunding is ideally a thing for new, mostly private companies limited by shares, there is no way any of them would be able to fulfill the listing requirements, to be able to offer their securities to the public.
The continued ban on equity crowdfunding in Nigeria by SEC, therefore, is not a surprise, even though the Commission said it is looking at the crowdfunding rules in the US and Canada.
The SEC believes that crowdfunding cannot be effective in Nigeria in the meantime because of a lack of rules.
Bottom Line
While equity crowdfunding remains banned in Nigeria, donation and reward-based crowdfunding are however excluded from the SEC’s regulatory remit. This explains why there are a number of donation crowdfunding platforms, and not one for equity crowdfunding. Nigeria’s first equity-based crowdfunding platform, Malaik, launched in 2015 is now down and is up for sale at $3795 on HugeDomains.com, while other donation-based platforms such as Donate-ng.com, and Imeela have since carried on.
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.
