The Nation Newspaper

Category: Industry

  • Dubai reinforces status as hub for SMEs growth

    Dubai, United Arab Emirates (UAE), has launched a series of initiatives aimed at positioning itself as productive base where the cost of doing business is significantly reduced for Small and Medium Enterprises (SMEs) from Nigeria and other countries around the world.

    Apart from the forthcoming Expo 2020 Project, which will see Dubai hosting the first ever World Expo in the Middle East, Africa and South Asia (MENA), the Dubai SME, the agency of the Department of Economic Development mandated to develop the SME sector in the Emirate, has been supporting local entrepreneurs.

    The agency extended support to 4, 227 local entrepreneurs in 2018, an increase of 32 per cent from 2017, while the value of its incentives and facilities increased 63.4 per cent to AED101 million in 2018, from AED 61.8 million in 2017.

    Also, 5, 767 entrepreneurs benefit-ted from Dubai SME’s services, training and development programmes, a 163 per cent increase compared to 2017.

    In addition, 1, 175 national companies were launched in Dubai in 2018, thanks to the support of Dubai SME.

    “The UAE and its leadership are committed to supporting entrepreneurs and creating a supportive economic climate for small and medium enterprises,” CEO of Dubai SME Abdulbaset Al Janahi said.

    He also said financial support has been part of Dubai’s offerings for SMEs, as the Mohammed Bin Rashid Fund (MBRF), the financial arm of Dubai SME, supported 18 projects with a financial assistance of AED14 million in 2018, an increase of 147 per cent over 2017.

    Al Janahi added that as Dubai prepares to host Expo 2020, UAE-based trade finance banks are seeing new opportunities to support more small businesses.

    They recently rolled out a new banking package for local SMEs and startups involved in Expo 2020, which included preferential pricing and privileges on transactions, working capital, trade finance, foreign exchange and commercial loans.

    In the last few years, Dubai has emerged as SME hotspot for new specialised niche sectors. One of such sectors that has witnessed exciting SME growth stories is fintech.

    Dubai has become a major hub for fintech startups, thanks largely to government support and initiatives undertaken by the Dubai International Financial Centre (DIFC).

    DIFC’s unique experimental licences, market leading pricing and collaborative workspaces have been instrumental in spawning a vibrant fintech ecosystem that is unrivalled in the wider region.

    Al Janahi said Dubai is also setting up new dedicated SME clusters focused on entrepreneurial innovation. Dubai

    SME along with Meraas and the Department of Economic Development (DED) recently signed a partnership to launch Al Seef SME District, an innovation hub within Al Seef.

    The hub, which pays tribute to Dubai’s origin as commercial trading port, offers a dedicated space for new businesses from the design, fashion, F&B and information technology sectors.

     

     

     

  • Propak exhibition coming

    Propak West Africa 2019 will hold from September 17-19 at the Landmark Centre, Victoria Island, Lagos.According to the organisers, the spaces are almost filled. Among those already signed up are Afra Technical Concept, BOBST, GEA West Africa, Heidelberg, KHS, Neofyton, Sasol, Snetor, SkySat, Windmoeller & Hoelscher.

    In 2018, Propak West Africa  had a total 4,265 attendees booking over 2,000 square metres of space. With this year’s edition approaching, organisers are expecting over 4,500 senior experts, with over 200 brands exhibiting.

    In addition, the overall size of the show has grown by a further 27 per cent compared with last year’s to accommodate the increased interest to over 2,600 square metres.

    The year’s show features, such as the conference, are set to take place again this year alongside the event itself. With daily sessions lined-up, including a day dedicated to discussions around sustainability and eco-friendly materials, attendees can expect to see some of the most pertinent issues affecting the industry tackled head-on over the three-day event.

    Propak West Africa will also be launching a new ‘Meet the Buyer’ scheme via a dedicated partnership with Naijalink, Nigeria’s leading market consulting firm, specialising in connecting international companies with prospective buyers or partners across West Africa, as well as undertaking thorough research and business development advisory services

     

  • Chamber’s investment expo to boost home ownership

    The forthcoming ‘Abuja Investment Expo’ will provide affordable housing to the low and middle income earners in Nigeria, the Abuja Chamber of Commerce and Industry (ACCI) has said.

    ACCI’s Vice President, Commerce, Dr Johnson Anene, made this known in Abuja at a news conference on the expo scheduled for Abuja from July 30 to August 1.

    ACCI is organising the expo in partnership with Shelter Aid Organisation, a Non-Governmental Organisation, in the sector.

    The expo is expected to feature investment summit, exhibition of housing and housing programmes, mining products, made in Nigeria products, building financing technologies, land matters, mortgages and investment opportunities.

    Anene said ACCI decided to use the platform to involve housing estate developers to enhance home ownership in view of the huge housing deficit in the country.

    He listed the developers to include the Real Estate Development Association of Nigeria (REDAN), Brains and Hammers, Urban Shelter, Wiser Estate and other reputable private developers.

    “We want to use the platform to promote affordable housing by bringing the estate developers who have been tested to offer houses to off takers at cheaper rates.

    “There are houses that are completed, but people are not occupying them so we want to use this forum to facilitate their occupation.

    “The low income earners cannot afford these houses because of high prices. A lot of the housing developers will be auctioning houses with different packages and discount of 50 per cent.

    “We are introducing “Rent to Own” scheme whereby one will pay rent and liquidate the purchase price of the house,” he said.

    Anene said ACCI would equally use the expo to boost local production of building materials to deliver affordable housing at lower costs.

    He said the Chamber was in partnership with Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Manufacturers Association of Nigeria.

    He said the ACCI was also partnering the Nigeria Investment Promotion Commission (NIPC) and Nigeria Building and Research Institute (NIBRI) to actualise its plans at the expo.

    He said the chamber would introduce training of artisans in the informal sector in ACCI Business Entrepreneurship Skills and Technology Centre with a view to preparing them for lucrative employment.

    “The expo will feature business networking with both local and foreign chamber members and participants to boost businesses and investment.

    ACCI Director-General, Mrs. Tonia Shoyele, also said the real estate sector had been moribund with a lot of housing deficit which needed intervention.

    She urged the government to look into the sector and tackle the lingering problems.

  • Expert to businesses: incorporate technology to boost growth

    Philips Consulting Plc Managing Director Mr. Rob Taiwo has urged business owners to incorporate digital technology into their business models to achieve growth.

    Taiwo, who spoke during the company’s “Breakfast Roundtable” in Lagos, said emerging trends in digital technology would continue to impact on the workplace hence the need to embrace them to boost growth.

    Phillips Consulting is a leading provider of transformation, technology and outsourcing services, with offices in Lagos and Abuja.

    Taiwo said the company has been delivering integrated client solutions through its strategy and operations transformation and digital and technology consulting practice areas.

    Sharing insight into how a chat box once helped him resolve a problem with his iPod, he said there was the need for companies and businesses to incorporate digital technology, which provides immense opportunities for business growth.

    Senior Partner, Philips Consulting, Paul Ayim, also presented a video clip to show how technology was changing learning environments.

    According to him, digital learning is not a game of technology or fanciness; it is more a race for efficiency and competitive advantage in the marketplace.

    Also, Country Head of Human Capital, Stanbic IBTC Holdings Plc., Olufunke Amobi, explained that digital trends were volatile and causing changes in the skills required at the workplace, sometimes leading to retrenchments.

     

     

  • Fed Govt revives 11 fertiliser blending plants

    Eleven fertiliser blending plants with a capacity of 2.1 million metric tonnes (Mt) have been revived across the country,  Vice President (VP) Yemi Osinbajo, has said.

    Osinbajo’s spokesman, Laolu Akande, made this known in a statement in Abuja. He said the vice president spoke at the Fourth National Discourse on Food Security of the Companion at the University of Lagos.

    The VP said self-sufficiency in food production remained a major pillar of the economic policy of the President Muhammadu  Buhari administration.

    According to Osinbajo, President Buhari has set a clear direction with his declaration that Nigerians must produce what they eat and consume what they produce.

    The VP said to improve local blending capacity, a fertiliser programme had been launched in collaboration with Morocco.

    He said the Federal Government  backed the programme with substantial budgetary allocation to agriculture from N8.8 billion in 2015 to N46.2 billion in 2016; and N103.8 billion last year.

    Osinbajo said agriculture grew by 14.27 per cent last year. He said through the Anchor Borrowers’ Programme, which the president launched in Kebbi in November 2015, credit was given to smallholder farmers, through the Central Bank of Nigeria (CBN) and 13 participating banks.

    His words: “So far, credit totalling N120.6 billion has been given to 720,000 smallholder farms cultivating 12 commodities, including rice, wheat, cotton, soya beans, cassava, poultry and groundnuts, across the 36 states and the Federal Capital Territory (FCT).

    “The Anchor Borrowers Programme is now digitised, with all farmlands’ GPRS mapped, biometric data of farmers captured, electronic cards issued and specific inputs are required. This has enhanced traceability and enhanced productivity and yield.

    “Today, we have 11 Fertiliser blending plants with a capacity of 2.1 million; fertiliser price has since dropped from N13, 000 per 50kg to N5, 500.

    “Today, but for a few drawbacks, we are confidently approaching self-sufficiency in rice production; that is from importing $5 million of rice daily.’’

    According to Osinbajo, official imports were down to two per cent, even as the Federal Government opened up opportunities for greater entrepreneurial activity in the sector, as there was far greater investment in value adding services in the value chain.

    He said the Federal Government, in partnership with Brazil, would facilitate the financing of the provision of machinery, equipment, input and services.

    “At the top of the mechanisation chain are six assembly plants to be activated and spread across the six geo-political zones.

    “The assembly plants will undertake the assembly of tractors and processing equipment, as well as light manufacturing of parts, which will be sent out to the service centres closer to the farmers across the length and breadth of Nigeria.

    “The first assembly plant, among a total of six to operate, to assemble tractors and implements, will be located in Bauchi State in an already existing facility owned by a private operator,” Osinbajo said.

    He said the Federal Government projected that almost 5,000 tractors would be assembled in Nigeria every year.

    The VP said with a substantial percentage of the world’s arable land and over half of that uncultivated, it was becoming clearer that Africa and Nigeria had the potential to become major food baskets in the world.

    According to him, China’s demand alone has 27 per cent of the world’s population, but only seven per cent of the world’s arable land for agriculture.

    “China needs two million tonnes of hybrid Soya beans per annum for livestock feed and vegetable oil; we have not met that demand.

    “Africa as a whole has also not been able to meet China’s demand for cocoa. How about goat meat? 120,000 carcasses of goat meat are required weekly in different Arab countries. There is still a major gap in supply here as well,” he said.

  • LCCI urges CBN to reduce cash reserve ratio

    The Lagos Chamber of Commerce and Industry (LCCI) has urged the Central Bank of Nigeria (CBN) to reduce the Cash Reserve Ratio (CRR) to  increase credit to the private sector.

    Speaking with The Nation, LCCI President Mr. Babatunde Ruwase said the 22.5 per cent CRR by the CBN was too high.

    He said the CRR regime was not effective, as banks were grappling with bottlenecks in accessing the facility.

    He suggested that the CRR framework should be made flexible and faster by the apex finance sector regulatory agency.

    Ruwase added that the Federal Government needed to reduce the current rate at which it sterilises money from the banks because it makes the cost of funds higher for the banks.

    He, however, gave kudos to the CBN for its various efforts on job creation, improving credit for MSMEs, intervention in the agricultural sector, building robust payment system, exchange rate stability and maintaining strong external reserve, among others.

    LCCI, he said, was in support of the move by the CBN in developing a Trade Receivable Portal to enable MSMEs trade their invoices with financial institutions to improve their cash flow.

    “We are, however, sceptical about the workability of this laudable idea judging by the current disposition of commercial banks to lending to MSMEs, except this trend is reversed,” Ruwase said.

    He commended the desire of the CBN to boost consumer spending through a lending framework that will involve large departmental stores, equipment leasing companies, automobile companies in partnership with financial institutions and credit bureaus.

    Ruwase, however, urged the CBN to put all the necessary measures in place before commencement to ensure that the intended goal is achieved, as consumer spending is critical towards ensuring economic growth.

    While acknowledging that all efforts put in place by the CBN in the last five years yielded the intended results, Ruwase, however, commended the CBN’s five year master plan.

    “This five-year plan of the CBN is indeed laudable and commendable. However, we recognise that the role of the CBN is in using monetary policies to stimulate growth of the economy while some of the planned targets are fiscal in nature.

    “It will, therefore, requires that a framework for collaboration with the major economic ministries and other stakeholders be put in place to be able to fully actualise what the CBN sets out to accomplish in the next five years,” Ruwase said.

  • Centre to fund concepts impacting 10m people

    Co-Founder and Chief Executive Officer, Eko Innovation Centre, Victor Afolabi, has expressed his organisation’s readiness to support ideas that can impact at least 10million people.

    Afolabi, who made this known in Lagos during ”A conversation on moral leadership”, said the centre is committed to incubating, accelerating, mentoring and funding innovation and technology startups.

    The event, hosted by the Eko Innovation Centre, also featured participants from Acumen West Africa, an impact investing organisation and the African Venture Philanthropy Alliance, an ecosystem enabler that attracts socially responsible investment to the region.

    The conversation highlighted each organisation’s vision for a new type of leadership in Nigeria, one that would measure success not based on wealth and fame, but on character, contributions to society, and building a more just world.

    Sharing his plans to realise this vision through the centre, Afolabi said: “For you to be admitted into the Eko i-Centre, your idea and concept must have ability to touch 10 million people and also have commercial viability and strong social impact among other things.”

    He explained that the idea behind the EIC was to use innovation and technology in solving the major issues in the Lagos State economy and in other parts of the country.

    Speaking on the offerings provided by the centre, Afolabi said entrepreneurs admitted can spend a minimum of 18 months to three years, and will be taught tax management, procurement, finance, strategy and administration.

    “The idea is that when we have companies that come into incubation, their chance of survival is very high because of strong handholding mentorship we are going to be providing,” he said.

    Afolabi noted that lack of capital was limiting the capabilities of entrepreneurs to develop innovation technologies in order to solve the problems in the country. He urged the state to support and create the enabling environment for start-ups to thrive.

    “We saw in the Lagos manifesto an agenda to make the state the 21st Century economy. The only way to create a 21st Century economy is to make sure you are creating the enabling environment for businesses and solution to problems that are driven by innovation and technology,” Afolabi said.

    Governor Babajide Sanwo-Olu said his administration would build innovation and technology centres across the state to address the problem of youth unemployment.

    Sanwo-Olu, represented by his Deputy, Dr. Obafemi Hamzat, said his administration recognised the place of technology as key driver to fast-growing economies.

    “Technology is the way to go. It is the way of the future and our administration is committed to leveraging technology in delivering the megacity dream.

    “As a government, we will build innovation and technology centres where we can bring in private capital and investors, get ideas from young people on technology and be able to start creating employment for our youths,” he said.

    Corroborating him, Acumen founder and Chief Executive Officer, Jacqueline Novogratz, said there was the need for a shift by investors from sole financial focus to considerations for impact and positive benefit to society.

    “We have seen the yearnings of young entrepreneurs around the world who want to put entrepreneurial tools to work against the world’s toughest problems, that’s what moral leadership is all about.

    “And we need investors, who are willing to walk that long and challenging path with them, if we are to overcome the great divisions we are experiencing in today’s world,” Novogratz said.

    African Venture Philanthropy Alliance Chairman, Mr. Olayemi Cardoso, said mentorship is everybody’s responsibility.

    “We find a way to have sound, clean mentorship whereby we pick the right role models and pair them up with people, who are coming down below, who are relatively more junior and who are looking for direction.

    “There is a lot of cross sectoral work, multi-stakeholder work that can be done towards helping to groom that concept of mentorship and institutionalising it within our society,” Cardoso said.

  • UNCTAD: Rules of origin ’ll enhance intra-African trade

    Rules of Origin (RoO) could be a game changer for Africa and enable the African Continental Free Trade Area (AfCFTA) to catalyse the continent’s regional integration by generating significant gains.

    The United Nations’ Conference on Trade and Development (UNCTAD) made this known in its “Economic Development in Africa Report 2019.”

    RoO is a “passport” enabling goods to circulate duty-free within a free trade area, if those goods qualify as originating within the area.

    They are, therefore, one of the cornerstones for boosting trade on the continent, according to UNCTAD.

    The UN’s agency in the report estimated that the Gross Domestic Product (GDP) of most African countries could increase by up to three per cent once all tariffs are eliminated, if RoO is made simple and business-friendly.

    Read Also: Beyond the glitz and glamour of AfCFTA

    The 2019 Ibrahim Forum Report highlighted that Africa’s most urgent challenge was the fact that its massive youth bulge has mostly been devoid of prospects.

    About 60 per cent of Africa’s population is currently under 25 years old, and the continent’s youth will account for twice Europe’s  population in 2100.

    However, demographic and economic trends are not in tune. While important economic growth of the last decade has mainly been jobless, Africa’s youths consider unemployment by far the most pressing challenge for their governments to address.

    Besides hindering the potential of Africa’s biggest resource, its human capital and lack of economic opportunity are also key driver of African migrations, which are mainly composed of young and educated people.

    In some cases, the absence of prospects can also influence young people to join extremist groups. These urgent challenges can only be addressed by African countries, and the AfCFTA is an important step towards this.

    The AfCFTA is a trade agreement among African Union (AU) member states, aiming at creating a single continental market for goods and services as well as a union of customs with free movement of capital and persons.

  • FrieslandCampina WAMCO, 2Scale partner on milk production

    Dairy giant FrieslandCampina WAMCO and 2Scale are collaborating to deepen the inclusive model for local sourcing of fresh milk in Nigeria in line with FrieslandCampina WAMCO’s Dairy Development Programme (DDP).

    2Scale is an incubator programme that manages a portfolio of Public-Private Partnerships (PPPs) for inclusive business in gri-food sectors and industries.

    It offers a range of support services to Small and Medium Enterprises (SMEs) and farmer groups and partners, enabling them to produce, transform and supply quality food products.

    Through its DDP partnership with 2Scale, FrieslandCampina WAMCO has been deepening the dairy market by increasing the volume of fresh milk from empowered dairy farmers.

    Read Also: Chivita 100% wins award

    It has also been creating employment by empowering women and youths both on-farm and off-farm; thus improving food safety and enhancing nutrition.

    The Netherlands’ Minister for Foreign Trade and Development Cooperation, Mrs. Sigrid Kaag, affirmed that given the consistent result FrieslandCampina WAMCO has recorded in local milk sourcing, Nigeria has the right partner to stimulate growth in the industry.

    Kaag made this statement  during  a visit to FrieslandCampina WAMCO Nigeria, where she confirmed the progress of FrieslandCampina WAMCO’s DDP.

    The Minister also witnessed the signing of the partnership extension agreement on the DPP between FrieslandCampina WAMCO Nigeria PLC and International Fertiliser Development Center (IFDC), which represents 2Scale.

    While FrieslandCampina WAMCO Nigeria PLC was represented by its Managing Director, Mr. Ben Langat, IFDC was represented by its President and CEO, Mr. Albin Hubscher.

  • Plus Acuity is Young Media Agency of the Year

    Plus Acuity, a specialised media independent agency, has been recognised as the ‘Outstanding Young Media Agency of the Year 2019’.

    The award, which was announced at the Marketing Edge summit in Lagos was for its professional excellence.

    The company, which started in Nigeria three years ago, has demonstrated a unique approach to clients’ needs by offering great value, driven by modern technology and data in its array of services that cover media planning, strategy and media buying.

    Receiving the award, Plus Acuity General Manager, Mr. Abiodun Atunwa, said the company was dedicated to offering its clients exceptional value to drive their goals.

    “We knew that we were coming into the fray as a new contender among established firms and always wanted to be different,” he said.

    Read Also: NNPC inaugurates modern multi-media studio

    Atunwa said factors that necessitated the award included the agency’s investments in the latest audience research tools comparable to any of its peers in the industry, its high professional dealings with clients and media partners alike, as well as its trained and talented team with vast knowledge of the media landscape.

    He, however, stated that the employees are the company’s most valuable assets, which is why it engages them in regular training in order to enhance their learning and developmental skills for client’s satisfaction.

    “We also encourage them to have a work-life balance that promotes high level of productivity,” Atunwa added.

    On the future for media agencies, the agency’s GM explained that although the Nigerian economy is facing series of challenges, there are inherent opportunities waiting to be tapped, considering the size of the population and the potential.

    “Many brands desire to constantly engage their consumers at various touch points and Plus Acuity is well positioned to take the centre stage in the media space. Technology will drive the future and we will continue to invest immensely in the acquisition of research tools and data to sustain our competitive edge,” he said.

    Atunwa, who featured as a panellist at the summit, said there is a paradigm shift in the media landscape, as the advent of social media and change in behavioural patterns of the consumer have necessitated a change in the way media practitioners address client’s briefs.

    He avowed that the conventional way of reaching the target audience through television, radio, print and out-of-home advert is no longer as effective because of the use of technology, such as mobile phones, for quick services that have immensely attracted consumers’ attention.

    Plus Acuity boss explained that consumers no longer have the patience to assimilate the message a brand is promoting, a major challenge for media agencies and one that must be conquered in order to remain relevant.