Nigeria - Afrikan Heroes

Opera Founded Startup OPay Raises $50M For Mobile Finance in Nigeria

July 10, 2019

OPay is just a year old in Nigeria, but the startup is already making waves. Nigerian road users would be familiar with the green livery motorbike hailing startup ORide, which is a part of the OPay business. Founded by Norwegian browser company Opera, OPay, the Africa-focused mobile payments startup has raised $50 million in new funding.

A Look At The Funding

A large chunk of the investment came from investors including Sequoia China, IDG Capital, and Source Code Capital. Opera also joined the round in the payments venture it created.
OPay intends to use the capital (which wasn’t given a stage designation) primarily to grow its digital finance business in Nigeria — Africa’s most populous nation and largest economy.
OPay will also support Opera’s growing commercial network in Nigeria, including its motorcycle ride-hail app ORide and OFood delivery service.
Opera founded Opay in 2018 on the popularity of its internet search engine. Opera’s web-browser has ranked number two in usage in Africa, after Chrome, the last four years.

The Startup’s Statistics

On the payments side, OPay in Nigeria has scaled to 40,000 active agents and $5 million in transaction volume in 10 months.
The $50 million investment in OPay is more than just another big round in Africa. It has significance for the continent’s tech-ecosystem on multiple levels.
To start, OPay’s raise tracks greater influence in African tech from China — whose engagement with African startups has been light compared to China’s deal-making on infrastructure and commodities. OPay founder Opera was acquired in 2016 for $600 million by a consortium of Chinese investors, led by current Opera CEO Yahui Zhou.
The majority of the investment for OPay’s raise comes from Chinese funds and sources, including Source Code Capital, Sequoia China, and GSR Ventures. There’s not a lot of statistical data on the value of Chinese VC investment in Africa, but a large portion of $50 million to a fintech venture stands out.

This New Investment May Mean A Major Shift For Nigerian Digital Payments Startups

OPay’s VC haul also has significance vis-a-vis digital-finance in Nigeria. In tandem with other trends, it could support the shift of Nigeria surpassing Kenya as Africa’s digital payments leader. For years Kenya has outpaced Nigeria in P2P digital payments volumes and digital financial inclusion, largely due to the rapid adoption of mobile-money products, such as Safaricom’s M-Pesa.
Some of this is due in part to Nigeria’s Central Bank limiting the ability of non-banks (including telcos) to offer mobile payment services. The CBN eased many of those restrictions earlier this year. This opens the door for mobile-operators like MTN, with the largest phone network in Nigeria, to offer mobile-money products. In addition to fintech regulatory improvements, there’s been a gradual increase in VC flowing to Nigerian payment ventures.
The country’s leading digital payment company, Paga, raised $10 million in 2018 to further expand its customer base that now tallies 13 million. OPay’s $50 million backed commitment to grow mobile money in Nigeria should provide another big boost to digital-finance adoption across the country’s 190 million people.
And not to be overlooked is how OPay’s capital raise moves Opera toward becoming a multi-service commercial internet platform in Africa. Part of the $50 million investment includes diversifying country and product offerings. “Geographic expansion of OPay and other services is a key part of our plans,” Opera CEO Yahui Zhou told TechCrunch via email.

This could place OPay and its Opera supported the suite of products on a competitive footing with other ride-hail, food-delivery, and payments startups across the continent. It could also mean competition between Opera and Africa’s largest multi-service internet company, e-commerce unicorn Jumia.

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/

Lesley Nneka Arimah Wins the 2019 Caine Prize for African Writing

Nigerian born author Lesley Arimah has been declared the winner of The 2019 Caine Prize for African Writing for her short stories. Her short story titled Skinned won the Award. This win is coming against the backdrop of her being shortlisted for the Award on three previous occasions.

The Shortlist for this year came alongside Meron Hadero of Ethiopia for ‘The Wall’, Cherrie Kandie of Kenya for ‘Sew My Mouth’, Ngwah-Mbo Nana Nkweti of Cameroon for ‘It Takes A Village Some Say’, and another Nigerian Tochukwu Emmanuel Okafor for his work titled ‘All Our Lives’.

Arimah’s story was first published in McSweeney’s Quarterly Concern (Issue 53). A statement by Caine Prize said, “‘Skinned’ envisions a society in which young girls are ceremonially ‘uncovered’ and must marry in order to regain the right to be clothed. It tells the story of Ejem, a young woman uncovered at the age of fifteen yet ‘unclaimed’ in adulthood, and her attempts to negotiate a rigidly stratified society following the breakdown of a protective friendship with the married Chidinma. With a wit, prescience, and wicked imagination, ‘Skinned’ is a bold and unsettling tale of bodily autonomy and womanhood, and the fault lines along which solidarities are formed and broken.”

In 2016, Arimah was shortlisted for the Caine Prize for her short story which became the title story of her collection of short stories, ‘What It Means When A Man Falls From The Sky.’ In 2017, Arimah’s ‘Who Will Greet You At Home’ which was shortlisted for the prize was first published in the New Yorker.

The £10,000 prize is the most prestigious literary award for a short story on the continent. Dr. Peter Kimani, the Chair of Judges when announcing the prize said, “The winner of this year’s Caine Prize for African Writing is a unique retake of women’s struggle for inclusion in a society regulated by rituals.

According to a statement from the judges, Arimah’s Skinned defamiliarizes the familiar to topple social hierarchies, challenge traditions and envision new possibilities for women of the world. Using a sprightly diction, she invents a dystopian universe inhabited by unforgettable characters where friendship is tested, innocence is lost, and readers gain a new understanding of life.

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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Here Is The Nigerian Central Bank ’s Guidelines On How To Access Creative Industry Loan

July 8, 2019

Recall that the Nigerian Central Bank (CBN) in collaboration with the Bankers’ Committee recently introduced the Creative Industry Financing Initiative (CIFI) to improve access to long-term low-cost financing for entrepreneurs and investors in the Nigerian creative and information technology (IT) sub-sectors, as part of efforts to boost job creation in Nigeria, particularly among the youth.

The Bank has gone ahead to announce the modalities for the implementation of the initiative.

In Summary, The Procedure For Accessing The Loan Is As Follows:

Any person interested in accessing the loan should:

Approach any bank of his/her choice with a business plan or statement detailing how much is needed for his/her business.
The bank provides an applicant with the documentation requirements for accessing any of the loan types.
The documentation requirement shall be acceptable by the respective bank for credit requests for its customers.
The bank carries out due diligence of the application and documentation submitted.
Successful applications are issued offer letters, which shall have therewith repayment schedules in accordance with the business dynamics
The successful applicants shall accept the offer as well as meeting all the conditions specified in the offer letter precedent to draw down.
The bank forwards successful application with copies of the offer letter to the Director, Development Finance Department, Central Bank of Nigeria for consideration and release of an aggregate of the facility amount to the bank for lending to a successful application.
The bank disburses funds to successful applicants within ten days of receipt from the CBN
The bank bears the credit risk and shall be responsible for the performance of the facility.

Where Could The Loan Be Accessed From?

Interested persons should visit any money deposit bank in Nigeria — commercial, micro-finance bank, etc.

Nigeria’s Access Bank has already commenced disbursement of loans to beneficiaries in the entertainment industry, under this Creative Industry Financing Initiative of the Central Bank of Nigeria.

The bank said the first tranche of the CIFI loans worth N20bn, would be made easily accessible to the borrowers in the sector.

Other banks are also ready to disburse the loan to prospective applicants.

What Businesses Are Covered And How Much

The businesses that are covered are existing enterprises, startups and students of higher institutions engaged in software development.

Creative Industries Covered are:

Businesses in the fashion (including designing) industry
Businesses in the Information Technology (including e-commerce, online payment solutions, software engineering, etc.)
Businesses in the Nigerian movie industry (including movie producers, movie distributors)
Business in the Nigerian music industry (whether as record labels, music artists, etc.)

Terms & Conditions

For these businesses, the terms and conditions are as follows:

SN	BUSINESS TYPE	MAXIMUM AMOUNT Per Applicant (₦	Interest Rate/ Length of Year Before Repayment
1	Student Studying Software Development	3 million	9% per annum/ 3 years (monthly repayment)
2	IT Businesses	Payment For Equipment Purchase/ Rental Fees	9% per annum; 10 years (quarterly repayment)
3	Movie Production	50 million	9% per annum; 10 years (quarterly repayment)
4	Movie Equipment Financing	50 million	9% per annum; 10 years (quarterly repayment)
5	Movie Distribution	500 million	9% per annum; 10 years (quarterly repayment)
6	Music	Payment For Equipment Purchase/ Rental Fees	9% per annum; 10 years (quarterly repayment)
7	Fashion	Payment For Equipment Purchase/ Rental Fees	9% per annum; 10 years (quarterly repayment)

For further terms and conditions, including guarantors and securities, download, open and read the CBN modalities by clicking on this link

Further inquiries on the modalities may be referred to the Director, Development Finance Department, Central Bank of Nigeria, Abuja.

Why Focus Is On the Creative Industry

The CBN appears to have focused on the creative industry for the following strategic reasons:

The film industry sector contributed 2.3 percent (N239 billion) of Nigeria’s Gross Domestic Product (GDP) in 2016 alone.
In the same year, Nigeria’s music industry grew by 9 percent to reach a value of 39 million dollars and is set to grow by 13.4 percent CAGR by 2021, with an estimated worth of about 73 million dollars.
Information Technology: The gaming industry in Nigeria, according to a PwC study on gaming, benefited from a broadening customer base, mostly the large and youthful population, with Nigeria’s video game industry’s value put at $150 million USD as at 2016. It is also estimated that mobile gaming in Nigeria would surpass $147 million USD by 2020
Aware of this, the Bank of Industry (BoI) in 2015 unveiled plans for members of the Nigerian Creative Industry to access its facilities, as intervention fund to the sector hit N2 billion.

This writer advises that you check out your local banker in Nigeria for more information on how to access the loan.

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/

Nigeria joins AfCFTA as Buhari signs agreement at AU summit

Nigeria officially joined the African Continental Free Trade Area (AfCFTA) as President Muhammadu Buhari signed the Agreement Sunday in Niamey at the opening of the African Union (AU) Summit.

President Buhari appended his signature to the treaty at exactly 10: 47 a.m. in the presence of African Heads of State and Government, delegates and representatives from the private sector, civil society, and the media attending the 12th Extraordinary Summit of the African Union on Launch of the Operational Phase of the AfCFTA.

In his remarks shortly after signing the agreement, the president declared that Nigeria’s commitment to trade and African integration had never been in doubt nor was it ever under threat.

He told the summit that Nigeria would build on the event by proceeding expeditiously with the ratification of the AfCFTA.

‘‘Nigeria wishes to emphasize that free trade must also be fair trade.

‘‘As African leaders, our attention should now focus on implementing the AfCFTA in a way that develops our economies and creates jobs for our young, dynamic and hardworking population.

‘‘I wish to assure you, that Nigeria shall sustain its strong leadership role in Africa, in the implementation of the AfCFTA. We shall also continue to engage, constructively with all African countries to build the Africa that we want,’’ President Buhari said.

The Nigerian leader also congratulated Ghana on being selected to host the secretariat of the AfCFTA.

President Buhari stated further: ‘‘I have just had the honor of signing the agreement establishing the African Continental Free Trade Area (AfCFTA), on behalf of my country, the Federal Republic of Nigeria.

‘‘This is coming over a year since the AfCFTA Agreement was opened for signature in Kigali, Rwanda, at the 10th Extraordinary Summit of the African Union, on 21st March 2018.

‘‘In fact, you will recall that the treaty establishing the African Economic Community was signed in Abuja in 1991.

‘‘We fully understand the potential of the AfCFTA to transform trade in Africa and contribute towards solving some of the continent’s challenges, whether security, economic or corruption.

‘‘But it is also clear to us that for AfCFTA to succeed, we need the full support and buy-in of our private sector and civil society stakeholders and the public in general.

‘‘It is against this background that we embarked on an extensive nationwide consultation and sensitization program of our domestic stakeholders on the AfCFTA.

‘‘Our consultations and assessments reaffirmed that the AfCFTA can be a platform for African manufacturers of goods and providers of service to construct regional value chains for made in Africa goods and services.

‘‘It was also obvious that we have a lot of work to do to prepare our nation to achieve our vision for intra-African trade which is the free movement of ‘made in Africa goods’.

‘‘Some of the critical challenges that we identified will require our collective action as a union and we will be presenting them for consideration at the appropriate AfCFTA fora.

‘‘Examples are tackling injurious trade practices by third parties and attracting the investment we need to grow local manufacturing and service capacities.’’

President Buhari noted that Nigeria’s signing of the AfCFTA and its Operational Launch at the 12th Extraordinary Summit was an additional major step forward on the AU’s Agenda 2063.

Meanwhile, with Nigeria and the Benin Republic signing the Agreement at the Summit, 54 out of 55 African countries have signed the world’s largest free trade area deal, encompassing 55 countries and 1.2 billion people.

Eritrea is the only African country yet to sign the agreement.

A total of 26 African countries have deposited instruments of ratification, with Gabon being the latest after depositing her instrument of ratification during the Extraordinary Summit.

The AfCFTA Agreement entered into force on May 30, 2019, thirty days after having received the twenty-second instrument of ratification on 29 April 2019 in conformity with a legal provision.

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/

The Story of Anthony, Akinwumi Adesina’s Adoptive Son from Madagascar

Three years ago, Anthony, then 11, showed signs of stunted growth as observed by African Development Bank President Akinwumi Adesina during a visit to Madagascar’s Bas Mangoky region. To the Bank chief, the boy looked no more than 5 years of age.

“I was transfixed by one of the children attracted by my helicopter landing. He was so small that I was convinced he could be no more than 5 years old,” recalls President Adesina.

“I asked him his name and he told me it was Anthony. But his voice was not that of a 5-year-old child. I was shocked to discover that he was 11. He was suffering from severe malnutrition.”

This was on 2 August 2016 and the story could have ended there. President Adesina could have continued his tour of the region, where rice production had tripled, from two to six tonnes per hectare, thanks to the decisive intervention of the African Development Fund (ADF), the concessional window of the African Development Bank. He could have continued his rounds, proud of the Fund’s intervention, which had enabled the region to record a 141% increase in its agricultural income.

This, however, would have gone against his convictions and his personal efforts to help curb malnutrition. “Anthony said his dream was to become a doctor,” he recalls, visibly moved when he reunited with Anthony this week on the sidelines of the ADF-15 replenishment meeting in Antananarivo. The President of the African Development Bank thus decided, in agreement with his wife, to adopt Anthony and provide him with the means to live a dignified life, alongside his family, in his home environment.

And even then, Anthony’s incredible story did not end there. “I saw him again, the day before yesterday. Our son, Anthony, is growing normally. He is fine and well-fed,” Adesina says. “He is doing well in school and is one of the best in his class. I really hope that one day he will achieve his dream of becoming a doctor.” Barely half the height of his adoptive father in 2016, Anthony now seems well on track to overtake him.

Senior representatives of ADF donors are currently meeting in Madagascar to discuss the 15th Replenishment of the Fund. ADF has invested some $48 billion in low-income African countries.

For President Adesina, Anthony’s story is one of hope. Just like this young Malagasy boy, the continent can overcome its weaknesses. “Fragility is not inevitable. It can be overcome,” Adesina said in his opening speech at the second consultative meeting of the replenishment of the Fund.

“We believe in Africa! We believe in a prosperous future. We believe in its destiny!” he declared.

“The African Development Fund can continue to create hope among the least developed populations, offer opportunities to those who have nothing, and restore pride and determination,” he said, calling on donor countries to maintain their strong commitment to the continent.

President Adesina cited Cote d’Ivoire as one of the numerous success stories of ADF’s intervention.

“Côte d’Ivoire’s GDP plummeted following the political, economic and social turbulence it suffered a few years back. Thanks to the timely and decisive action of the African Development Fund, this country now has one of the most impressive growth rates in Africa, even the world.”

Just like Anthony, who is now racing ahead of the other pupils in his class.

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/

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

July 5, 2019

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/

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.

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

Africa has a lot to benefit from Russia—Steve Davies Ugbah

—Steve Davies Ugbah

Professor Steve Ugbah is Nigeria’s Ambassador to Russia and also holds a concurrent accreditation to the Republic of Belarus. In this interview, he speaks on the importance of Russia’s renewed engagement with Africa; Nigeria’s place in East-West geopolitical rivalry and benefit of AfCFTA in deepening trade ties within Africa among other issues. Excerpts:

How would you describe Nigerian-Russian relationship?

Nigeria-Russia relationship has improved in recent times. We are strengthening the relationship because for a long time it grew cold as we had no substantive ambassador to Russia for four years prior to my appointment. We are now trying to rebuild confidence and trust in each other and take the relationship seriously. So, the relationship is cordial and we are strengthening our bilateral ties.

How is Russia responding to this renewed engagement?

The response has been positive and we have held high-level meetings which are intended to signal to Russia the extent to which we value this relationship. It is a gradual process of rebuilding confidence and I am sure that soon, we would have attained 80 percent of our goal of confidence-building and reaping strategic benefits in the process. Russia is a very important country not just for Nigeria but also for Africa. The extent to which Russia and Nigeria and to a larger extent, Africa can strengthen its relationship, it will be mutually beneficial.

So, I am optimistic this rapprochement will mature and be of benefit to Africa in all facet of our relationship whether economic, cultural, or educational. Russia has been generous to Nigerians especially in the areas of cultural exchanges and scholarships for students. So, my hope is that these activities that are mutually beneficial will continue.

Which other opportunities are there for Africans to tap from Russia?

Russia is a superpower and Africa can benefit most certainly from its firepower and its experience in security. Russia has an abundance of minerals just like most African countries and it has been able to exploit its natural resources more efficiently and I believe we can learn from them. It also has the largest landmass on earth and they have been able to manage their diversity very well and this is what Africa can also benefit from. Of course, Russia’s comparative advantage is in hydrocarbons and this is what we can benefit from. So, there is a lot we can benefit from Russia even in the areas of agriculture, space technology, ICT and many others. So, Russia is well endowed and I believe Nigeria and Africa have a lot to benefit from the country.

In this era of intense geopolitical rivalry and great power competition, how do you think Nigeria can juggle its relationships with these powers?

Nigeria is a non-aligned country and I don’t think that will change its political posture as far as international politics is concerned. So we are not aligned to any geopolitical bloc. We are strictly guided by our interests and we go where we see opportunities. Nigeria has done business with the West, it is doing business with China and we are hoping to increase our level of contact with Russia and the former Soviet states, the Commonwealth of Independent States (CIS). So it is not necessarily about aligning with any bloc but it is about pursuing your interests aggressively as you can and going wherever your interest can be protected. So my hope is that both the East and the West will woo Nigeria and that will place us at an advantageous position. So it is about going to where your interests are protected and taking advantage of opportunities.

Given Russia’s renewed engagement with Africa and the African Continental Free Trade Area (AfCFTA) that came into force recently, how can Africa maximize the opportunities to boost trade ties with Russia?

It is a good thing that Russia is now waking up to Africa and is interested in exploring opportunities in the continent. That is why the Afreximbank annual meeting here in Russia and the heads of government meeting between Russia and Africa in Sochi, Russia come October are auspicious moments to deepen trade ties. Given that Russia is a continent-sized country, deepening trade ties will improve two-way trade between Russia and Africa.

In fact, I just returned from Nigeria with a Russian trade delegation of 13 companies that are looking for opportunities. We have partnered with Chambers of commerce in Lagos and Abuja while also taking advantage of the Russia-Nigeria Business Council here in Moscow. So I see a bright future for Russia-Africa relationship especially now that Africa is better placed to reap benefits from trade relationships within and outside the continent given the AfCFTA that will take of soon. This, will no doubt, fast track integration within the continent while boosting intra-African trade. Although protectionism is rising the AfCFTA I believe if well leveraged is a framework that will help solve some perennial problems faced by Africa such as unemployment and poverty.

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/

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.
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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.