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Tag: Africa

  • Africa loses $100bn annually from illicit financial flow

    Africa loses around $100 billion annually, or around four per cent of the continent’s GDP as a result of illicit financial flows.
    The latest estimates from Economic Community of Africa (ECA) put Africa’s net financial losses through trade mis-invoicing alone at an average of US$73 billion over the period 2000 to 2015; at the same time, Global Financial Integrity estimates annual losses of around $27 billion through other channels.
    A recent report of the Africa Tax Administration Forum (ATAF) and ECA at the just concluded 51st Session of the ECA and the Conference of Ministers of Finance noted that “these estimates leave out a number of channels through which illicit financial flows can leave the continent; as such, the total figure could be even higher.”
    At the conference, “ATAF expressed the need to address trade mis-invoicing and abusive transfer pricing by some multi-national corporations through technical assistance and country cooperation at a continental level.”
    A call was also made by Akingbolahan Adeniran, Rule of Law Advisor to the Vice President Yemi Osinbajo of Nigeria, to “amplify advocacy” for the return of illicit financial assets from developed countries to source countries on the African continent.
    It was agreed at the conference that tackling illicit financial flows will be an important part of mobilizing additional domestic financial resources for development in the continent.
    The report noted that “when the report of the High Level Panel on illicit financial flows was released, the African Union Heads of State and Government adopted its recommendations in full. Since then, a number of African countries have taken steps to tackle such flows, including through introducing the open contracting data standard, taking steps towards introducing beneficial ownership registers and making use of the exchange of tax information to increase tax revenues.”
    However the report lamented that many of the panel’s recommendations have not been implemented by most African countries. In addition, the Panel highlighted that tackling illicit financial flows in Africa was a problem that required a global solution, not only actions by African countries themselves.
    With efforts on international tax cooperation being led by the OECD, current international efforts to tackle illicit financial flows are not always adapted to addressing the priorities for African countries.
    As a result of this development, the role of ATAF, is increasingly becoming important in the development and shaping of tax policy in the continent.
    ATAF, as an African voice on tax issues to inform and influence the global dialogue, has recently achieved revised legislation on transfer pricing in many countries where these legislations have come into law.
    Also, “ATAF has played an important role in revenue mobilisation through technical assistance programmes that have identified revenue gaps and have returned money to countries to the tune of over $150 million” the report said.
    The continent’s leading tax administration ATAF, has ramped up efforts in ensuring African priorities are recognised at a global level in achieving the following: recognizing its work at global standard-setting bodies during the revision on pricing of commodities, intra-group services and many other issues; cementing its role as promotor and implementer of exchange of information (EOI); and establishing a standard in collecting tax indicators and data for 32 African countries which assist tax revenue planning and forecasting and hence policy formulation.
    Mr Olav Lundestol (Norad) set out  the challenges for policy makers to establish a domestic environment that encourage domestic and foreign direct investment.
    Prof. Annet Oguttu (UNISA) spoke to the issues of base erosion and profit shifting (BEPS) in Africa and the value of ATAF tools in addressing BEPS. She said, “all boils down to political will, and many African countries have been dragging their feet.”
    Going forward, ATAF has called for “the establishment of a continental Tax Body under the auspices of the Africa Union Commission (AUC) where African tax related standards in policy, legislation and administration can be discussed and activities reported to and adopted and formally to acknowledge ATAF as the African Union’s Specialized Agency to institutionalise inter-country and regional tax cooperation and develop African Tax Standards that protect our tax base, maximise domestic resource mobilisation on the continent while promoting foreign direct investment.”

  • Television revolution in Africa

    We all are familiar with Uber, the world-famous ride-sharing company, and how it has revolutionised the transportation industry globally. A revolution similar to Uber’s took place in Africa decades ago, but in the continent’s television industry. That revolution in the African television industry was sparked by MultiChoice which, through a series of innovations, brought about fundamental changes in TV broadcasting on the continent.

    Television broadcasting is no longer how we used to know it, changing completely from what it was when it debuted in Africa with the establishment of the Western Nigeria Television (WNTV) in Ibadan by the government of Nigeria’s defunct Western Region.

    Years after its debut in Nigeria and adoption by other African countries, television broadcasting relied-and still largely does-on analogue technology among other infrastructural challenges.

    The technology limited the reach of broadcasters, a challenge the introduction of cable television, even with its superior technology, could not surmount. The technology used in cable television broadcasting limits its signal to cities or neighbourhoods where the provider is able to run cable into homes. Satellite transmission technology, on the contrary, primarily requires an unobstructed view of the sky from the subscriber’s location, which allows for uninterrupted network coverage and continual connection via an antenna and satellite dish. Its reach is, therefore, limitless and not affected by whether the subscriber’s location is rural or urban in nature.

    At infancy, television programming quality was basic. Indigenous content creators, for example, had little institutional and financial support to create compelling content, especially with continent-wide appeal.

    Efforts to remedy the situation began in 1985, when a group of South African media companies, including Naspers (the parent group of MultiChoice), converged and launched M-Net, Africa’s first pay-television channel. M-Net then began providing television viewers in South Africa with an alternative that enabled them subscribe to a pay-television service offering top-class programming. This was matched with service.

    To expand its operations beyond South Africa, split M-Net into two companies in 1992, with one dedicated to delivering video entertainment channels, while the other focused on subscriber management and signal distribution. MultiChoice Africa grew out as the subscriber management arm.

    By 1996, Multichoice had established operations in Nigeria (1995), Namibia, Botswana, Ghana, Tanzania, Uganda, Kenya and Zambia, with franchises launched in Malawi, Zimbabwe, Angola, Ethiopia and Mozambique. It currently operates in 47 countries.

    Like Uber, the driver of MultiChoice’s operations was technology. In 1995, it launched DStv and by 1996, pioneered wholly digital television broadcasting in Africa. Through digitization, it addressed issues such as poor audio-visual quality and patchy television signals associated with analogue technology.

    Using its vast network of satellites, MultiChoice was able to reach most of the continent’s remote regions with high-quality broadcast and deliver a multi-channel offering catering to the diverse cultures and tastes.

    In 2003, it launched the Dual View decoder, a world-first, which enabled the viewing of two different channels on two different television sets using one satellite link. Two years later, it launched the Personal Video Recorder (PVR), which allows the subscriber to record, rewind, forward and pause broadcasts.

    Next to follow were the High-Definition PVR decoder and HD channels in 2008. The same year, it introduced Xtraview on DStv, the first in Africa. Xtraview allows the subscriber to link two or three decoders under the same subscription.

    With the growing global trend of viewing video content on the internet, MultiChoice, began syndicating its content for viewing on electronic devices via the internet. In 2008, it launched DStv Mobile (the Drifta and Walka) and in 2010, launched DVB over IP (Digital Video Broadcast over Internet Protocol) as well as the DStv On-Demand service. Through these, subscribers could demand and watch programmes from their DStv account via the internet on their phones, tablets and computers.

    In 2013, MultiChoice launched the DStv Explora, a decoder that enables the subscriber record television programmes for later viewing, pause live television programming for up to two hours and provides access to the DStv BoxOffice and DStv Catch Up. With the latter, subscribers can rent the most recent local and international blockbuster movies, while the former, a Video on Demand Service (VoD), also available Apple phones or tablet devices, enables the subscriber to view a selection of content at personal convenience.

    In 2014, MultiChoice launched the DStv Now app. With an internet connection, a subscriber can watch live television and have access to the latest Catch Up content on a computer, Android or iOS tablet or smartphone. A year later, it launched Showmax, an internet-based VOD with a vast collection of top-rated movies and series available to its premium subscribers.

    To widen access to satellite television across Africa, MultiChoice, in 2011, launched GOtv, an affordable Digital Terrestrial (DTT), which delivers content via network towers rather than satellite, has provided assistance to many African countries in their respective marches to migration to digital broadcasting from the analogue platform. The path opened has since been followed by other broadcasters on the continent, who are unlikely to be displeased that they had such a pathfinder, which has used- and still does-technological innovation to add value to the entertainment industry and to the benefit of its subscribers.

     

    • Anaekwe, an engineer and public commentator, writes from Abuja

  • Africas ripe digital revolution

    Remember the single ‘Africa’ by Toto? It was an instant hit back in the baby boomer age. But that was for a different reason and everyone suddenly saw the continent of Africa with a different perspective.

    After a bout of hibernation and recovery from colonisation, the African subcontinent is ready to bounce back. This time, it has the power of digital revolution!

    For too long now, it has suffered from lack of basic infrastructure, preventing it from being a significant place on the map of this planet. Tourism, agriculture and natural resources were the only things which made it worthy of any attention.

     

    The New Digital Revolution

    However, things are changing for the better now, it seems. The telecom industry has progressed quite a bit to allow increased internet access at lower prices. People over there have smartphones and other high-tech devices too. They can connect to the internet and utilize social media to be in touch with each other, as well as the outside world. Companies like Facebook have taken initiatives to provide a zero-rate data to people with extremely restricted access to civic infrastructure. This development has made it possible for those people to avail better opportunities. The overall effect has been very positive in the reduction or extreme poverty.

    An influx of investments by tech companies have also created an immense pool of employment opportunities. They have started initiatives in training and educating the local populace in the nuances of the tech industry. Without this education, the entire process would never take off in the first place. This will increase the standard of living over there without a doubt. It will take time though, but it will be time well invested.

     

    What is the Focus On?

    IoT, the Cloud and the Big Data remains the primary focus.

    There are two reasons why big data can prove to be the ultimate customer experience. The first one is that with the availability of so much data, new trends can be analysed. Previously data was not available on all of this, but new factors which consciously or subconsciously affect the consumer may be analysed. Maybe a particular floor colour makes a section of the store more appealing. Maybe the food section gets empty faster if the carts are designed in a particular way.

    The permutations and combinations that can be derived from such a large amount of data are particularly endless. What influences customers to buy or not buy something will, in particular, become a larger field. It may even grow to be a separate branch of consumer science. This is just one example. There are many such ways in which trends may be analysed and this data be used for the benefit of businesses, and this in turn, will make the consumer experience better and more rewarding.

     

    The Start Up Industry There

    The start up industry in the African continent is also taking off, thanks to some influx of capital from global investment companies and venture capitalist firms. It is still in its nascent stage, but it shows great promise as local entrepreneurs take charge.

    There are still many obstacles to overcome though. The infrastructure development is still in its early stages. The local governments remain a major stopping force against worthy initiatives, although some of them have shown a willingness to adopt a more supportive role in the development of the digital and telecommunication sector further.

    Africa shows much potential as an emerging market and could soon compete with the Asian counterparts in the race for global economic prowess.

  • How Africa loses $5.5b premium yearly

    Africa loses over $5.5 billion insurance premium yearly to capital flight. A chunk of this comes from the lack of capacity of insurers to fully underwrite the oil and gas industry. This is without recourse to the untapped capacity of underwriters on the continent. But at the 45th Conference of African Insurance Organisation in Accra, Ghana, government regulatory agencies, insurers and other stakeholders brainstormed on how to halt the trend. OMOBOLA TOLU-KUSIMO was there.

    The revelation jolted operators and regulatory agencies in the African insurance industry. A disturbing statement by the Ghanian President Addo Dankwa Akufo-Addo at the just concluded African Insurance Organisation (AIO) that Africa loses a whopping $5.5 billion in insurance premium yearly to capital flight. Capital flight, according to President Akufo-Addo occurs despite the fact that the capacity of underwriters in the continent are not fully exhausted.

    Another report, the 2018 Bulletin of the AIO, also showed that capital flight, took away over 90 per cent of premium income in Africa.

    The huge capital flight, the report added, left the shores of the continent to Europe, America and other parts of the world, and it occured majorly from oil and gas class of insurance business and in oil producing countries.

    They are Nigeria, Angola, followed by Algeria, Egypt and Libya. Others are Congo Republic, Sudan and South Sudan, Equatorial Guinea, Gabon, Chad and Ghana.

    According to the report, these markets jointly produced 7, 210,000 barrels per day in 2016, with Nigeria, Angola and Algeria producing 70 per cent of the top 10 markets’ output.

    The report identified the lack of capacity in areas of skills and funds within the industry across the region as some of the factors responsible for the capital flight.

    It was in an attempt to halt the huge capital flight that African government regulatory agencies in the insurance industry, insurers and other stakeholders gathered in Accra, Ghana, recently. It was the 45th Conference & General Assembly of the African Insurance Organisation (AIO).

    The conference provided the much-needed platform to cross-fertilise ideas on how to stem the financial haemorrhage in the continent’s insurance industry.

    President Akufo-Addo set the ball rolling by expressing fear over capital flight and called on other African leaders to join hands to end the menace and help develop their economies.

    The loss of about $5.5 billion premium to capital flight, he said, has continued to deprive the industry of necessary development and contribution to the economy.

    The President, who was represented by a Senior Minister, Hon. Ken Ofori-Atta, said the problem was not about capacity within the continent, but the lack of inter-regional cooperation and collaboration.

    He urged underwriters and regulatory authorities to take it as a continental challenge and ensure that no insurance business leaves the shores of Africa without being fully exhausted.

    He also asked them to take their responsibility to support government by deepening insurance penetration and providing long term fund for investments that shape the destiny of Africa for greatness.

     

    Reasons for capital flight

    Assistant Director Statistics, Research and Business Development, African Reinsurance Corporation, Mr. Adewale Adewusi, said local energy insurance expertise was limited on the continent, while capacity was a problem among domestic African reinsurers because of the huge oil exposures, especially upstream.

    Adewusi, who confirmed that capital flight represents over 90 per cent of premium income in Africa, spoke  on the operations of the African Oil & Energy Insurance Pool (AOEP), which was set-up in 1989, to increase local capacity in the continent.

    At the 13th General Assembly of the AIO in Bujumbura, Burundi, on June 20, 1986, Adewusi said it was resolved that an African Oil & Energy Insurance Pool be established to address the capacity constraint facing the African energy sector.

    His words: “The pool commenced operations in 1989 with objectives to create capacity within African oil, gas, petrochemical and energy related insurance risks emanating from Africa with a view to reducing foreign exchange outflow.

    “It was also to provide adequate insurance cover to match the rapid technological advancement of individual African countries and to further ensure that oil companies operating in Africa are charged competitive premium rates in order to enhance profitability and stabilise the African oil insurance market.

    “Pool also sought to create the manpower capacity and acquire technical expertise in the insurance of oil and gas related risks, through a systematic manpower development.”

    Adewusi said other objectives of the Pool were to disseminate technical information to members of the pool on issues affecting oil and energy insurance risk; give technical support and advice to insurance companies operating in Africa on matters relating to risk management and insurance of oil and energy related risks.

    According to Adewusi, the early years were very challenging for the pool, as its yearly premium income was well below $I million. Also, most members were clearly not committed to its success mainly because of lack of confidence in the survival of the Pool.

    He noted that the Pool also suffered a cash crunch as there were no funds available for marketing, existing and potential members in the oil & energy sector.

    Adewusi pointed out that in 1997, the managers knew that they had to find a way to turnaround the fortunes of the Pool or it would simply collapse.

    “The business module was critically reappraised and key functions such as marketing, underwriting, processing of premiums and claims handling were examined. The outcome of the study was that risks were better priced, processes were more efficient and genuine claims were promptly settled.

    “The funds were managed by astute financial managers approved by Africa Re. Gradually, as confidence in the Pool improved, membership increased and subscribed capacity rose to adequate levels, he said.

     

    Other challenges

    Adewusi further stated that excess capital remains dedicated to the sector, irrespective of loss levels in different sub-sectors of the industry, resulting in premium rate cutting, year-on-year.

    In addition, he said there were recent large losses to the pool, which in 2016 and 2017, for instance, suffered three huge losses. They include the damage to the offshore Tullow rig in Ghana on February 18, 2016; Abu Dhabi National Oil Company (ADNOC) refinery loss in Abu Dhabi on January 11, 2017; SIR refinery loss of $40.81 million.

    Adewusi said the Pool was able to recover from these losses because of a build-up of prior years’ profits as well as the estimated recoveries from the 2016 and 2017 reinsurance programmes, which hitherto had been loss free.

    “There are also threats to the top line going forward, which brought about restriction on refinery exposure, emergence of Nigeria’s Energy & Allied Pool (EAIPN) in 2015; and potential country energy Pools. African markets like Mozambique, Uganda and Tanzania are preparing to operate energy pools as soon as the operating environment is viable,” he added.

    The expert, however, said the AOEP has evolved over the years into a viable capacity provider to the African energy market.

    He said recent settlement of huge losses also attests to this fact, adding that even though there are a number of challenges to the growth of the Pool, aggressive and informed marketing as well as prudent underwriting, going forward, would ensure that the pool remains in business providing the much needed local capacity.

     

    Federal Government’s position

    The Nigerian Government through the National Insurance Commission (NAICOM) said it was aware that insurance practitioners fail, neglect or refuse to consider and fully utilise relevant in-country capacities of insurance/reinsurance institutions such as pools, reinsurers and other approved local/recognised insurance capacities prior to applying for approval to cede certain proportion of some risks off shore.

    In a recent circular by NAICOM, the Federal Government insisted on the utilisation of in-country capacities of Nigerian insurers, reinsurers and pools prior to foreign facultative insurance.

    Commissioner for Insurance, Mohammed Kari, said in some situations where the pools, insurers or reinsurers are offered participation, the institutions are either offered minimal proportion below their capacity or informally restricted and, or compelled to accept lower than their respective capacities for the purpose of justifying cession of the risks off shore.

    “This is unethical practice and it undermines our collective resolve to ensure full utilisation of available in-country capacity in line with domestication and the local content policy. It contravenes extant insurance laws and regulations and shall therefore, not be tolerated henceforth,” he said.

    Kari said in addition, the Commission had observed that some insurance institutions have inappropriately arrogated to themselves the authority to unilaterally exclude some insurers over alleged outstanding claims.

    According to him, all insurance institutions are required to ensure that Nigerian insurers, reinsurers and pools in the Commission’s records must be offered and allowed to willingly decide the proportion of the risk they wish to accept, subject to their respective capacities, before any application for approval for offshore placement.

    “All recognised reinsurance treaties/arrangements and additional capacities offered by local reinsurers/pools must be fully utilized before excess consideration for offshore replacements. All off-the-system or informal directives to co-insurers, local reinsurers and pools to accept lower than their desired available capacities are hereby prohibited.

    “Please ensure strict compliance as we would not tolerate any breach of these rules. Failure to do so will hence forth result in the imposition of appropriate regulatory actions as well as declinature or rejection of such requests,” Kari warned.

    For the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, insurance companies need to consolidate to be able to underwrite bigger risks in the oil and gas sector.

    He stated that the industry lacked the capacity to undertake big ticket transactions like provision of brokerage services for insurance covers of project size of $3 billion.

    In a presentation to insurance industry chieftains at a forum in Lagos, Wabote urged insurers to consolidate to form joint venture partnership consortium with local and international outfits that can present formidable funds and capacity for huge transactions.

    He said: “This will present opportunities for growth of insurance industry, although there are challenges militating against the industry such as lack of capacity to undertake big ticket transactions. There are several modalities that could be adopted to surmount this challenge.”

    Wabote said the Nigerian content level was meant to create 300, 000 direct jobs and retain over $14 billon income, out of the $20 billon spent yearly on oil and gas industry.

    “We have developed a 10-year transformation road map to drive the delivery of the mission. The plan sought to increase income to the Gross Domestic Product (GDP) and facilitate export of Nigeria’s goods and services to regional markets,” he said.

    The NCDMB boss stated that the country’s vision was to achieve 70 per cent value retention within the next 10 years.

    “We have sectorial working groups within the Nigerian local content including banking, insurance and others. And these teams of experts within their sectors formulate the strategy with which they engage the board for implementation,” he said.

    While reiterating the need for the insurance industry to consolidate on joint partnership or venture with local and international outfits, he said this was necessary because they can’t do it alone.

    “We are mindful of the fact that if every African country in sub-Saharan Africa decided to do local content, and wanted everything to happen in their country, it would become sub-optimal. Part of their strategy, is to encourage sub-regional integration,” Wabote emphasised.

     

    CEOs, experts speak

    Group Managing Director, Continental Reinsurance Corporation, Dr. Femi Oyetunji expressed worry that African insurance companies, including reinsurance firms are too small.

    He lamented that Nigeria, an oil and gas producing country, has no energy underwriting specialists.

    He said: “We don’t have big companies. The insurance companies that cut across the continent, including reinsurance companies, are too small. Insurance requires investment, which is not usually in the short term. You don’t start seeing returns until it is between five and seven years.

    “We need to consolidate to be able to attract talents from outside Nigeria. Without the big size companies or financial muscles, we won’t be able to do it. It is painful that Nigeria, an oil producing country, does not have energy underwriting experts. The energy classes are one of the biggest for almost all companies but there is no energy underwriting. These are skills you need to get from the London market, pay for it and bring to Nigeria. This is what we need in the country.

    “I said this 10 years ago and if we had brought two or three energy underwriters from the London market, they would have trained at least 20 in our market and we would be underwriting energy in our market and this is my vision for the industry not just in Nigeria but in Africa.”

    The Deputy Vice Chairman, Nigeria Insurers Association (NIA) and Managing Director, NEM Insurance Plc, Tope Smart, agreed with the Ghanaian President on the need for collaboration within the continent to end capital flight in the industry.

    He expressed the belief that a kind of committee should be set up by the AIO in order to forge a united front for a good collaboration to happen in Africa.

    “We need more of collaboration in Africa to prevent most of the premium going abroad. We need to collaborate from region to region, western, eastern and central regions in Africa. I believe that within Africa, we can have the capacity we are looking for all over the world.

    “We can have it in Africa, but we must collaborate before the issue can be addressed.

    “The collaboration must, however, start from the AIO. We are all here at the Conference talking and looking for a way out but I believe strongly that the collaboration starts from us, from this AIO,” Smart said.

    AIICO Insurance Plc Managing Director, Mr. Edwin Igbiti, said regulators and operators cannot run away from finding an end to capital flight, judging from the level of development. “Capacity has to be built, which takes time. Apart from monetary capacity, there is skills capacity,” he said.

    Igbiti pointed out that insurance is a worldwide cover and business in the sense that the principle of doing business is to spread risk. And risk, he said, is spread worldwide. “But one of the experts from Lloyds just told us at the conference that Africa on their own cannot get developed if they don’t spread their risks abroad and this is what we should all look at,” he said.

    He also pointed out that the issue is that there is deliberate capital flight and this is what operators and stakeholders should come together and fight against.

    He said: “Deliberate capital flight is that if we have capacity, why are you trying to feed other people and be living on commission?  This is what our regulator is trying to curtail by all means.”

    The Managing Director, Sunu Assurances Nigeria, Morufu Apampa, said the issue of capital flight is a major one, which is why NAICOM should be commended in the area of local content.

    He said in the last 35 to 40 years, oil and gas in particular has ceded out so much to the foreign market.

    He asked rhetorically: “But what do we get back in return? We even pay out most of the claim. In terms of capability or capacity, how far have they helped the market? They have not been able to help because they are benefitting from us so they want it to continue.”

    Apampa, however, said with NAICOM’s position and other key players too, training their people, forming strategic alliance, Africa is trying to see how it can retain most of the account.

    “We want to develop our capital in the market in order not to allow capital flight to go on because the more we allow that, the more we keep giving our money to them without getting anything in return,” he stated.

    He also said the problem is not fully a capacity issue, recalling, for instance, that there was a major claim that happened last year and another that happened three years ago, which were pollution claims that cost over $20 billion in Mexico.

    “The price of insurance is not just what happens in Africa alone, it is global. So, a single loss over there will also affect us. In terms of capacity, one single oil rig will be huge. So, when we say capacity, for now we don’t really have it and that is why NAICOM has come up with the issue of capacity such that your capital will determine what you take,” Apampa said

    He said the second one is capability and capacity. According to him, last year, a major thing happened when Munic Re and Swiss Re pulled out of the Nigerian market because of two major risks from two major multinational companies.

    “They pulled out because they said we are not doing proper underwriting. Our rates and premiums are going down while claims are going up. It is only in Nigeria that all other things keep going down while claims are going up. This is not too good for our business. We need to up our game and see what we can do better,” Apampa said.

    He expressed optimism that with NIA’s position in terms of checking position on rates and insisting that operators keep the adequacy of their rates, things will get better.

    “If you check our shares on the stock exchange, they are penny stock and they are even going down. We cannot get appreciation in value until there is increased profitability, not just to shareholders but to all stakeholders,” Apampa said.

  • Africa is famous for Nollywood, says foreigner

    •As ‘Nollywood and Lagos’ documentary screens

    For most foreigners who have heard about the exploit of Nollywood as the second largest producer of home video in the world, it was an opportunity to know how the film industry evolved from the pre-colonial era to what today, has become the leading motion picture industry in Africa.

    A documentary produced by Golden Effects for the Lagos Tourism tells it all in six minutes, to visitors at the Lagos State Pavilion, at the ongoing Cannes Film Festival.

    Tagged ‘Lagos and Cinema’, the documentary captured the huge impact that Lagos, the former capital of Nigeria and economic nerve of the country plays in the journey of Nollywood, a generic name for film industries from the Eastern, Southern, Northern and Western parts of Nigeria.

    Ahead of the showcase at 4pm on Saturday, a video presentation by filmmaker Kunle Afolayan and Celebrity politician, Desmond Elliot went viral, attracting producers, directors and fans of Nollywood to the pavilion.

    This came a day after the second edition of the ‘Lagos in Cinema’ journal was unveiled with pomp at the festival.

    The Permanent Secretary, Lagos State Ministry of Tourism, Arts and Culture, Mr. Fola Adeyemi, opened the floor with a brief introduction. He noted that Lagos, for decades, has not been rivaled by any other state in Nigeria, as the most profitable home for film business in Nigeria, saying; “It is the roles and potential of Lagos as the base of the film world and tourism hub that we are bringing out. Lagos is the seat of Nollywood. Every great movie in Nigeria is usually shot in Lagos.”

    Thus, the television remote key set the mood for the six minutes narration, aptly and professionally pieced together.

    Voiced by Bimbo Manuel, the documentary features stakeholders like the Lagos State Commissioner for Tourism, Arts and Culture, Mr. Steve Ayorinde; filmmakers Tade Ogidan and Kunle Afolayan among others, providing an insider’s account.

    The documentary captures film legends like Adeyemi Afolayan, aka Ade Love, Moses Olaiya, aka Band Sala, Hubert Ogunde, Ola Balogun and many others with their classic productions.

    Shedding light on the documentary, Afolayan and Elliot took the floor as the credits roll.

    According to Elliot, Lagos State has complimented its natural tourism endowment by providing skills to filmmakers to grow in their art. He said this has become easier today, as most young people, unlike before, get their parents’ support to train as actors or filmmakers.

    This was just as Afolayan explained that New Nollywood has had more opportunities to expand the industry. He said that skills and modern equipment used have brought back the cinema culture, and provided a somewhat escape from the problems associated with piracy.

    Giving the vote of thanks, Executive Secretary, Lagos State Film and Video Censors Board, Mr. Dele Balogun urged the guests to consider using a Lagos location for their next film projects.

    One of the guests, Jean-Antonio Duprat, a professor with the Institute d’urbanisme et d’amenagement de la Sorbonne, France, confirmed that indeed, Nollywood is going global, just as another guest, Monorom Youk, a French producer, noted that Africa is famous for Nollywood.

    The Lagos outing at the prestigious festival continues on Monday, with a Roundtable Session and a Lagos Day, where, as usual, networkings will blend with fun.

  • X-raying future of pay-television in Africa

    The 5th Digital Dialogue Conference, facilitated by MultiChoice Africa, points the way for Africa’s pay-television industry.

    The future of the pay-television industry in Africa was, again, the focus at the 5th Digital Dialogue Conference, which held in Dubai between 2 and 5 May. The conference, organised by MultiChoice Africa, debuted in 2012 as a thought leadership platform for better understanding of the future of the continent’s pay-television industry.

    Attendees comprised of industry thought leaders and leading minds in the African media industry.

    Speaking at the conference, David Abraham, former Chief Executive of UK’s Channel 4, said the future of pay-television is more fragmented and messy.

    “The old walls of traditional pay-TV are now tumbling down and what’s coming next is infinitely more fragmented, and messy,” said Abraham

    According to him, the economic pay-television model used to be about a battle between free-TV and service providers’ creating pay-television walls and maintaining exclusivity over key content in order to promote monthly subscriptions and minimise loss of customers.

    This, he explained, now faces threat because of broadband as additional service and mobile phone technology. Abraham said the advent of telecommunication service providers, who are producing content, has raised the question of whether consumers will be able to shuttle among so many different providers to find the best content.

    While stating that the future is uncertain, Abraham said: “The African continent, with its younger populations and progressive use of mobile, can both build on and leapfrog Western markets in terms of future models of content creation and distribution.”

    Another speaker, Paul Papadimitriou told the conference that pay-television need to understand their consumer better as a means to determining what they watch, where they watch and for how long they watch.

    Papadimitriou, a futurist and innovation expert, said: “As such the current challenge for pay-TV companies is to shift the focus from content delivery systems to understanding its consumers through primary data – for instance when they watch, how long and how much.”

    He noted that the way consumers watch television has greatly evolved, adding that it is critical for companies to understand the new consumption habits and mindsets of consumers.

    “The new consumer is nomadic – they can be everywhere and anywhere, tribal – gathering around similarities, and singular – entrepreneurial and being who they want to be. The best innovators are like the best travelers – they’re not afraid of unknown territories. They understand who people are and the journeys they’re on. They just do it,” he said.

    MultiChoice’s entertainment boss Yolisa Phahle advised the African television industry to step up its approach to engaging with viewers, who now have more free content choices available than ever before.

    She explained that there is a need to amplify African stories with digital technology.

    “Today in the midst of the digital revolution, collectively, we have the opportunity to not only tell stories that educate and inform African audiences, but the digital age means we are in a position to take African stories to the world, and create a global market for what we do.

    “By using the internet and leveraging technology, we have the ability to reach audiences at a global level and the success of companies like Iroko TV, artists like Davido, actresses like Lupita N’yongo and the movie Black Panther are confirmation that the world is ready to consume African stories, celebrate African culture and embrace African languages,” she said.

    Phahle believes that the producers of content that resonates will survive.

    “What we do know however is that people today consume more news and entertainment than ever and I believe this trend will continue. The delivery mechanisms will change, and in many ways, digital is just another route to market, but the producers of the most relevant and resonant content will survive,” she said.

    Nigerian film producer, Femi Odugbemi, said Nollywood, the Nigerian film industry, will grow bigger if it takes proper advantage of digital changes.

    “Digital solutions will open up a number of possibilities across Nollywood’s sub-sectors, including distribution, production, manpower and governance.”

    “If there has ever been an industry that created digital dialogue from the word go, it would be Nollywood,” he said.

    He added that filmmaking in Nigeria is becoming more sophisticated because of the growing options of digital filmmaking such as virtual scene creation.

    For Anthony Lilley, a professor of Creative Industries at Ulster University in Northern Ireland, television companies will have to work harder at capturing and retaining the attention of viewers in view of the volume of information competing for attention.

    “How do you grab attention, create meaning, and tell stories? How do we engage with people’s passions and what does it all mean for our culture? The answers to these questions can be answered by three major factors affecting content businesses of today: video-on-demand (VOD), personal-mobile and that we are inundated with data and intelligence which can do new things,” he said.

    He noted that those who can capture people’s attention can sell it to someone else, adding that it is the way television companies sell advertisement space – “because there’s a captive audience that is paying attention.”

  • Karl Marx, Socialism and Africa

    In the auspicious remembrance of the 200 year anniversary of the birth of Karl Marx (5th May 1818-May 2018), it would be pertinent to reflect on his work, its impact on the historical trajectory of mankind and re-evaluation of contradictions of the contemporary world system and even to examine the historical context of Africa’s current dilemma. One of Marx’s authoritative biographer, the Latvian-born British philosopher, Isaiah Berlin wrote of Marx’s theory as “ the most powerful among the intellectual forces which are today transforming the ways in which men act and think” .

    Marx was born in Trier, in the German Rhineland. His parents, Heinrich and Henrietta were of Jewish origin but accepted Protestantism nominally, to enable Mr Heinrich to practice law. The family was reported to be reasonably well off, but not very wealthy. Marx was admitted to study Law in University of Berlin but later switched to study Philosophy at the University of Bonn.

    Marx’s work consisted essentially in laying bare the laws in the development of society, but especially the capitalist society, which he praised for its monumental achievements in technology and social forms, but whose existential contradictions underlines its transitional nature in the society’s trajectory.

    However, after the collapse of the former USSR, the first proletarian State, founded on the authority of Marxian Socialist scientific theory, Marxism in Europe, America and even the continents of Africa, Asia and Latin America has had less political appeal. But, the contemporary wreckage of deepening  capitalist crisis, especially with its backlash of the rise of right wing extremist populism in the industrial West and deepening misery in Africa has rekindled interest in the study of Marx and the scientific theory of socialism.

    In Africa, the absence of theoretical rigour, social and historical contextualization which are dispassionate tools of scientific interrogation of facts have undermined policy outlines, rendering them hollow and inappropriate for the urgent needs of transformation and modernization of Socio-economic and political frameworks of the region. The essential contents of contemporary policy outlines in Africa is regrettably deficit in the grasp of the existential reality, which Amilcar Cabral, Africa’s most rigorous theoretician characterized as “the expression of the internal contradictions in the economic, social and historical reality of each of our countries,” and stressed his conviction “that any national or social project of change, which is not founded on adequate knowledge of this reality runs grave risks of poor results or of being doomed to failure.”

    And for those who would scorn theoretical rigour as unnecessary abstraction and distraction, Cabral was convinced that “if  it is true that a revolution or  a social change project can fail, even though it be nurtured on perfectly conceived theories, nobody has yet successfully practiced Revolution without revolutionary theory.” The tragic trajectories in Africa of poverty, misery conflicts and political exclusions are essentially derived from the theoretical lethargy of acute deficit in political and economic imaginations.

    Scientific socialism, originally contributed by Karl Marx and Fredrich Engels is even a key victim of the cascading waves of anti-intellectualism in contemporary African official political establishments, where the straitjacket of received wisdom of policy packages, sometimes handed down from outside is canonized as true gospel of redemption.

    It is the misunderstanding that Socialism was first and foremost, a political ideology and a totalitarian one for that matter, a regime type and even a strategy for class warfare that feed the popular misconception that it has failed in its birthplace of the former Union of Soviet Socialist Republic, USSR, and therefore allegedly unsuitable and even unmentionable in the current discourse about the future of Africa and even Nigeria.

    However, Socialism or more specifically Scientific Socialism, chiefly the work of Karl Marx and Fredrich Engels, elaborated further in another social context by Vladimir Lenin, was before any  other thing else, a scientific investigation of laws of social progress, exploring the forms of its evolution  and the context of existential facts and reality which interacts to produce the specific context of social relation and the means of securing the material condition of its existence that both recreate and transforms it.

    Marx and Engels did not invent these laws but discovers their trajectories across all human forms, despite of place and time. These laws which agglomerates the diverse tapestries of the existential material base, in objective terms corresponds to the forms of social relations and political organization  in specific social and historical context .

    Many people claimed that Marx envisage socialism in more advanced capitalist countries of the West than the backward Russia, where it actually occurred in 1917. However, what Marx envisaged is actually less important, than what he discovered as the laws governing the progression of society, unhindered or unaffected by the wish, preference of anyone, including himself.

    The scientific theory of socialism, extrapolates many political conclusions but its value is the rigour of it scientific interrogation of social realities, derived from general principles.

    The credibility of Marxism and its eternal universal value is laying out the critical theoretical infrastructure which illuminates the road map that constantly search for questions – calling into questions where others only see ready-made answers and vulgar evidence. Writing in the forward of first volume of Das Kapital, Professor Enerst Mandell pointed out that Marx’s principal aim was to lay bare the laws of motion which govern the origins, the rise, the development, the decline and the disappearance of a given social form of economic organization and not seeking universal laws of organization. And in fact, the essential thesis of Das Kapital is that no such law exist.

    Marxism is not a scheme of political project or economic organization of any particular place and time but basically a scientific theory to unmask and interrogate social forms in any particular state of historical development. The conclusion of each particular stage is not valid for all times and all circumstances. The profound theoretical universal insight of Marxism – Leninism bears fruit in economic and social organization, when interrogated to the specific condition of historical context and existing situation. The Communist Party of China has been particularly adroit in this synthesis and has produced an awesome economic success and social progress that the world has never seen before.

    The Communist Party of China has consistently affirmed its abiding faith in the scientific and eternal value of Marxism Leninism as its practical guide. Building Socialism with Chinese characteristics is the advanced development of Marxism-Leninism in the particular context of China’s existential reality. The Party avows that without Marxism Leninism, it would never have found the path to advance on the road of its core national priority of modernization and inclusive development.

    At the 19th National Congress of the Communist Party of China held in October, last year, its general secretary, also the President of the country, Xi Jinping re-affirmed that the party “must uphold the four cardinal principles – keeping unswervingly to the path of Socialism, uphold the people’s Democratic dictatorship, the leadership of the Communist party of China and Marxism – Leninism and Mao Zedong Thought.

    With China’s national aggregates reaching unprecedented height, President Xi Jinping reported to the historic congress that now “China champions the development of a community with shared future for mankind and has encouraged the evolution of a more inclusive global governance system.

    China’s confidence in strutting inclusive globalization comes against the backdrop of the retreat of the foremost capitalist and imperialist hyper-power to the shriek cry of “America first”.

    The Marxist Theory of Scientific Socialism is a vast ideological resource, open to innovation, constant development and enrichment. The intellectual depth, rigour and discipline necessary to understand and interrogate Marxism and even appreciate its theoretical and scientific ramifications is more extensive and can unravel the myth of Africa’s economic lethargy and political paralysis.

     

    • Onunaiju is director, Centre for China Studies, (CCS) Utako, Abuja.

  • Bayelsa to be the Houston of Nigeria, Africa

    Bayelsa State Governor Seriake Dickson has said his administration would make Bayelsa the Houston of Nigeria and Africa.

    According to him, being the historical headquarters of oil and gas in Nigeria and Africa, Bayelsa deserves to be the Houston of Nigeria and Africa.

    A statement by his Chief Press Secretary, Francis Ottah Agbo, said Dickson spoke on Tuesday during a session with Nigeria National Petroleum Corporation (NNPC) at the Onshore Technology Conference (OTC) in Houston, United States.

    The governor stressed that making Bayelsa the Houston of Africa is possible if the NNPC GMD, Dr. Maikanti Baru, and critical players in the oil and gas sector, collaborate with his government.

    According to him, Bayelsa has over 30 per cent of the gas reserve in Nigeria, and for anyone thinking investment in gas, “Bayelsa is the place to go, there is no doubt about that, which is why we are here to market that comparative advantage to the investing world”.

    He said: “Bayelsa State is safe, peaceful and ready for business. Our government has created the conducive and enabling environment for investments to flourish, including investments in the oil and gas sector. We were here last year and we had fruitful deliberations which sharpened our perspectives. On returning home, we took steps and we are here this time to market Bayelsa as the world’s best kept investment secret to the global investing community especially in oil and gas.

    “We have started an Eco-Industrial City. So if you are interested in using gas for industrialisation, where to go to is Bayelsa. We are building a Deep Sea Port and we’ve got to provide power. We are building a power hub, a new Yenagoa City, we are building an International Airport and a host of other initiatives that will be attractive to investors.

    “We have a dream of working with the NNPC and other players to make the state the Houston of oil and gas in Nigeria and in Africa. Bayelsa is historically the headquarters of oil and gas in Nigeria, and in Africa, and working with the NNPC GMD, Dr. Maikanti Baru and his team, and with the support of everyone else, Bayelsa surely will be the Houston of Nigeria and Africa.”

  • German will not neglect Africa – FM promises AU

    German Foreign Minister Heiko Maas on Thursday promised the African Union ( AU ) that his country would not neglect Africa, in spite of the many other crises around the world.

    “Even if we are currently intensively involved with the issues in the Middle East, the German government will not forget Africa,” Mass said during a visit to the AU in Ethiopia’s capital, Addis Ababa.

    Mass assured the AU’s 55 member states that Germany remains committed to expanding cooperation, especially in the areas of security and economy.

    It is the minister’s first Africa trip, seven weeks after taking office, ahead of visits to Asia, South America and Australia.

    Maas has already travelled within Europe, to North America and the Middle East.

    Later on Thursday, Maas was scheduled to visit former German colony Tanzania, where he is planning to discuss political and economic freedom as well as the rule of law.

    A hundred years after the end of World War I, Mass is also set to commemorate the war’s African victims, “who are too often forgotten in Europe.”

    Soldiers from Tanzania, formerly named German-East Africa, fought as part of the German army against British, Belgian and Portuguese troops.

    Thousands of African soldiers were killed.

  • 16 football clubs lock horns in 2018 Enugu State Federation Cup

    No fewer than 16 football clubs within Enugu State will be locking horns in the 2018 edition of Enugu State Federation Cup. The newsmen report that states’ Federation Cup is a prelude to the National Federation Cup, which comprises of 62 teams.

    Francis Ugwu, Secretary of Enugu State Football Association, told the newsmen on Tuesday in Enugu that the state’s Federation Cup matches would be a 21 days football fiesta in the state.

    Ugwu said that it would commence on May 5; while the finals would be played on May 26. He noted that all the matches would be played at the Nnamdi Azikiwe Stadium, Enugu. “The Federation Cup by its nature is a knock out tournament.

    “Where clubs must win each match; or loss and crush out of the tournament.

    “We are expecting that among the 16 clubs, a winner and a runners-up will emerge and they will represent the state at the National Federation Cup coming up later in the year,’’ he said.

    Ugwu said that the clubs participating in the 2018 edition included: Rangers International FC, Crime Busters FC, Purple Krown FC and Vemard Africa FC. Others are: Ingas International FC, El-Nahog FC, FC International, Flying Angels FC, Samba FC and Disdevt FC.

    Also participating are: Enugu Angels FC, Coal City Youths FC, FC Miserere, Lamray FC, FC Star-Plus and Rangers Feeders FC.

    NAN