The Nation Newspaper

Tag: Africa

  • Body rates microfinance bank best in Africa

    A microfinance bank-Grooming Centre, has been adjudged the best committed outfit to clients’ protection in Africa. The recognition came from the Smart Campaign, a global initiative that incorporates strong client-protection practices into the microfinance industry.

    Grooming Centre, with headquarters in Lagos, was rated the first in Nigeria and sub-Saharan Africa, and the 45th in Africa, Latin America, Eastern Europe and South Asia to have been certified since the rating programme began three years ago.

    “We extend our heartfelt congratulations to Grooming Centre,” said Isabelle Barrès, Director of the Smart Campaign.

    “Their willingness to do the work it takes to prepare for and undergo the intensive process of evaluation is indicative of their deep commitment to their clients. They have shown that this bar is achievable in the area of client protection. Their example will catalyse a movement towards certification within the broader industry.”

    In a statement, the Smart Campaign’s Client Protection Certification programme publicly recognises those institutions providing financial services to low-income households whose standards of care follow set principles.

    “We have always held a strong commitment to protecting our clients, but this independent validation lends credibility and demonstrates to our community and our industry that we continue to work every day to improve our service and our commitment to best practices in microfinance,” said  Godwin Nwabunka, CEO Grooming Centre.

    The Smart Campaign aims to improve client protection in microfinance through better understanding and use of client protection principles by microfinance institutions (MFIs). Certification of MFIs is one of the primary activities of the Campaign.

    The certification programme contains a rigorous set of standards for evaluating institutions by independent, third-party raters licensed by the Smart Campaign. The raters – Planet Rating, M-CRIL, MicroFinanza Rating and MicroRate – are established and specialised microfinance rating agencies with extensive experience, having analysed hundreds of institutions to date.

    “Microfinance emerged in the wake of inability of the formal sector banks to be client-centric and reach the excluded sections of the society. As such, it is important that the focus of micro finance remains on clients. Initiatives like Client Protection Certification ensure that this focus is not diluted,” said Dr. Alok Misra, CEO of M-CRIL, one of the licensed rating agencies.

    Grooming Centre has long demonstrated a commitment to client protection. Prior to undergoing certification, the institution was evaluated by the Smart Campaign on their practices, and contributed to the development of Campaign tools to help advance the sector.

  • Economist charts course for Africa’s development

    To develop Africa’s economies, the continent’s traders must embrace the real sector, a development economist, Mr Hasvoon Chang, has said.

    According to him, the manufacturing industry’s interconnection with other industries and its capacity to boost complementary industries makes it key.

    Chang spoke at the Second Annual Adebayo Adedeji Lecture during the Africa Development Week at the Economic Commission for Africa (ECA) headquarters in Addis Ababa, the Ethiopian capital.

    He warned against neglecting exports as “economic development requires export success”.

    Chang, known for his refreshing ideas on development theories, noted that although several ways to development and industrialisation exist, “Countries can decide their development path. Countries become good at things because they want to excel at making those particular things.”

    Citing South Korea  an industrialisation success, Chang declared that history is replete with examples of countries forging a different path than the one they were advised to follow by international institutions.

    “Most developed economies have succeeded in growing their economies because of the infant industry,” Chang argued, pointing out that the strategy of this policy is to develop skills and protect the domestic market until such a time they can be mature.

    He said: “Infant industry protection creates the ‘space’ for improvement in productive capabilities, but does not automatically lead to productivity increase.” Chang explained that countries make the common error of not investing in productivity growth such as machines, research & development and skills.’’

    Noting that countries often fail to upgrade or add value to their products, the Development Economist declared that in order not to lose the benefits made from initial investments in industrialisation, countries must upgrade their industries and create their own value chains to be globally competitive.

    For African economies to develop, Chang believes that countries can utilise a strategic combination of an export-based economy and an infant industry. He thinks that the shrinking policy space, which states often bemoan, has not made industrial policy impossible to use.

    ECA Executive Secretary Mr. Carlos Lopes explained that much of ECA’s inspiration on work on industrialisation comes from Dr. Chang.

    “He (Chang) provides an excellent mix of history and economics by bringing to us the experience other countries have gone through in their development experience,

  • Lafarge Africa launches new bid to take over Ashakacem’s minority shares

    Lafarge Africa launches new bid to take over Ashakacem’s minority shares

    Lafarge Africa Plc has secured the approval of the Securities and Exchange Commission (SEC) to proceed on a new tender offer to acquire the entire equity stakes held by minority shareholders in Ashaka Cement Plc. Minority shareholders hold 392.864 million ordinary shares in Ashaka Cement, representing 17.54 per cent of the entire issued share capital of the Gombe State-based cement company.

    The entire minority shareholdings were valued at N7.68 billion at Ashaka Cement’s closing price of N19.56 per share yesterday at the Nigerian Stock Exchange (NSE).

    A regulatory filing signed by company secretary, Ashaka Cement Plc, Zainab Umaru, filed at the NSE yesterday indicated that Lafarge Africa, which holds the majority equity stake in Ashaka Cement, had secured the approval of SEC to proceed with the tender offer.

    Already, the board of Lafarge Africa has notified the board of Ashaka Cement of its intention to proceed with the tender offer to all minority shareholders of the company.

    The tender offer, if successful, will make Ashaka Cement a wholly-owned subsidiary of Lafarge Africa Plc, and may lead to delisting of the cement company from the NSE. The board of Lafarge Africa was silent on the post tender-offer status of Ashaka Cement as well as the terms of this new tender offer.

    The latest tender offer is the second attempt by Lafarge to buy over the entire shares held by minority shareholders. It had earlier launched a mandatory tender offer (MTO) to acquire the 41.4 per cent equity stake held then in Ashaka Cement by minority shareholders immediately after the 2014 consolidation of Lafarge’s cement businesses in Nigeria and South Africa to form Lafarge Africa Plc. The MTO recorded partial success, reducing minority equity stakes in Ashaka Cement to 17.54 per cent, which Lafarge Africa now seeks to acquire.

    Following the consolidation of Lafarge’s businesses in Nigeria and South Africa into Lafarge Africa, Lafarge Africa had acquired 58.61 per cent majority equity stake in Ashaka Cement. The majority equity stake was previously held by Lafarge Nigeria (UK) Limited. The acquisition was done through a block trade at the NSE.

    The acquisition thus triggered the mandatory tender offer (MTO) provision of the Section 131 of the Investment and Securities Act (ISA) and Rule 445 of SEC, which make it mandatory for any institution or person that acquires at least 30 per cent of a company to make an MTO to other minority shareholders.

    Under the terms of the MTO, Lafarge Africa offered 261.58 million ordinary shares and N1.85 billion as equity and cash consideration for the takeover of the 41.39 per cent equity stake held then by minority shareholders in Ashaka Cement.

    Lafarge Africa offered 57 ordinary shares of 50 kobo each in exchange for 202 ordinary shares of 50 kobo each of Ashakacem. In addition, Lafarge Africa paid N2 for every acquired Ashakacem’s share.

    Minority shareholders then held 927.009 million ordinary shares of 50 kobo each in Ashakacem, representing 41.39 per cent of the cement company’s total outstanding shares.

    Lafarge had on July 9, 2014 received shareholders’ approval to consolidate its cement businesses in Nigeria and combine these with South African operations to create a leading sub-Saharan building materials giant to be known as Lafarge Africa Plc. The consolidation was done by transferring Lafarge’s assets in South Africa and Nigeria to Lafarge Cement Wapco Nigeria Plc.

    Under the transaction, Lafarge Group transferred its direct and indirect shareholdings in Lafarge South Africa Holding Limited of 72.4 per cent and its equity stakes in three other cement companies in Nigeria-United Cement Company of Nigeria Limited, 35 per cent, Ashaka Cement Plc, 58.61 per cent and Atlas Cement Company Limited, 100 per cent to Lafarge Wapco for a cash consideration of $200 million and the issuance of some 1.4 billion Lafarge Africa shares to the Lafarge Group.

  • Why democracy is failing in Africa – Maitama Sule

    Why democracy is failing in Africa – Maitama Sule

    Former permanent representative of Nigeria to the United Nations and elder stateman, Alhaji Maitama Sule, Wednesday said democracy was failing in Africa because the culture of the people was not being taken into consideration in shaping it.

    Speaking at the opening of the first Faculty of Arts International Conference of the University of Calabar at the Conference Centre of the institution Wednesday, Sule, said, “In Africa we have been having problems with democracy and I believe it is because we have not taken into account our cultural background in shaping our type of democracy.

    “Is the American style of democracy the same as that of Great Britain? Is the British the same as France? Is France practicing the same as Russia? Until we take our culture into consideration in shaping our own democracy, we shall not succeed and continue to have problems. The democracy we are practicing today is not Afrocentric, but Eurocentric. We are not practicing our democracy along the lines of our culture.”

    The Conference had as its theme, Globalization and Democratic Values in Africa: Perspective in the Humanities.

    Sule also emphasized the need for justice for everyone in a democratic setting.

    He said, “I believe in democracy. At the end of the day it is justice for all. The president has to do justice to all irrespective of background. Justice should be done to whosoever deserves it. That is democracy. Justice is the only way that we can follow to achieve greatness and it should be done to all and sundry. The world should never be government by force and fear and power. Justice is what this democracy wants.”

    Vice Chancellor, Prof Zana Akpagu, said the topic for the conference was very apt, especially in view of the fact that the world was now a global village, as anything that happens in any part of the world affects every other part.

    “Nigeria is still grappling with democracy, but we will get there and we can only get there through discussions like this, and for us as an administration we are ready to encourage any efforts that are geared to enthroning the culture of intellectual discussion. We are ready to promote academic excellence through seminars and conferences like this,” he said.

    Dean of the Faculty of Arts, Prof (Mrs) Dorothy Oluwagbemi-Jacob, said democracy is a cherished value and it is particularly appealing to those whose yearnings for freedom, equality and justice are daily frustrated.

    Oluwagbemi-Jacob said genuine democracy creates space for incentives to increase the productivity of the people, make provision for social welfare services in education and health to enable people produce more, as well as make it possible for the people to choose their representatives to governmental decision-making bodies.

    The Dean said globalization studies call for an interdisciplinary approach comprehensive enough to capture the ‘big picture’, and hoped the Conference would provide answers to the link between globalization and democracy.

    Among dignitaries who attended the event as well as made contributions were former Senate President, Ken Nnamani; former Senate President, Ibrahim Mantu; former governor of Anambra State, Chief Chukwuemeka Ezeife; former governor of Akwa Ibom State, Obong Idongesit Nkanga; and Rt Hon Nduese Essien among others.

     

  • Okewale named Africa’s best healthcare personality

    The Chairman of WFM 91.7 and owner of St. Ives Hospital, Dr. Babatunde Okewale, is a man of many accomplishments. The popular medical practitioner recently attained another feat with his award as Africa’s best healthcare personality of the year in reproductive medicine at the Fifth African Development Magazine International Conference on Development in Accra, Ghana.

    Okewale is being acknowledged for his impact on women and reproductive health. The awards ceremony took place at the Novotel Hotel, Accra, Ghana.

  • Kigali Forum to accelerate Africa’s economic transformation

    Recent events in the global economy have made it urgent  for Africa to transform its economy.

    This was the message from the President of the African Centre for Economic Transformation (ACET), K. Y. Amoako, who was addressing delegates at the inaugural African Transformation Forum (ATF) in Kigali.

    Amoako said: “The sharp fall in commodity prices or the slowing of the Chinese economy has once again shown how vulnerable most African economies remain to external factors outside their control.”

    He was joined by Rwanda’s Minister for Finance and Economic Development, Claver Gatete and the Executive Secretary of the Economic Commission for Africa (ECA), Carlos Lopes in the opening session.

    Amoako said since ACET started its work in 2008, “a remarkable consensus has formed, both within and outside Africa, that economic transformation holds the key to sustained growth and prosperity”.

    He said this had been endorsed by the African Union, the African Development Bank, the ECA and the African Heads of State and Governments at their summit last year.

    “Our work will not end here…We are not here to talk… we are here to act. We are here to accelerate economic transformation,” he said.

    Speaking of his country’s advance in economic growth, Amako said Rwanda’s Vision 2020 envisages a country transformed in all aspects of the economy and the society moving towards a middle income country by 2020.

    He added that at 47 per cent, services had overtaken agriculture’s 33 per cent in Gross Domestic Product (GDP) figures. Besides, growth had been inclusive, with a corresponding reduction of poverty.

    “Our belief in and commitment to an African-led, collaborative and cross-stakeholder movement towards transformation is the reason why we have partnered with ACET to co-host this forum’’, he stated.

    ECA Executive Secretary, Lopes, said though Africa had experienced unprecedented growth over the past decade and had been remarkably resilient to the global economic crisis, its economic performance had not created enough jobs.

    “The continent remains home to the world’s highest proportion of poor people. Furthermore, African economic growth has proven vulnerable to volatility in commodity prices, demand and perception fragility,” he added.

    He however, said Africa, as a latecomer, has the privilege to learn from others’ experience.

  • ‘How Africa can make progress’

    …Ondo governor urges leaders to secure future of youths

    Ondo State Governor Olusegun Mimiko yesterday said that Africa would face a perilous future, unless efforts are made by its leaders to integrate its youths into the new world’s technological culture.

    He urged the continent to invest in education, especially girl-child education, healthcare, agriculture, technological development, infrastructure development, creative industry and tourism and industrialisation.

    The governor also enjoined African countries to sustain its democratisation process and reduce political conflicts induced by British clolonialism, adding that the continent must also drive an inclusive African economy for sustainable growth and development.

    Mimiko reflected on the challenges of youth development and empowerment at the African Business Conference (ABC) of the Lagos Business School (Pan-Atlantic University, Lekki. The theme of the conference was: Africa Rising: Leveraging the power of a younger generation.

    Urging African leaders to gird their loins, he said: “Africans should not allow the rhetoric of Africa Rising to give us a false sense of comfort, thereby distracting us from the real work that we need to do to make it happen.”

    The governor observed that the great potentials, dynamism, resourcefulness, resilience and aspirations of the youths are invaluable capitals that can be harnessed and channeled towards a more sustainable future for Africa by refocusing efforts on education, cultural renaissance, agro-business, ICT, healthcare and the provision of capital for young entrepreneurs.

    However, he lamented that Africa’s transformative agenda was being threatened by a high level of youth unemployment, stressing that the situation has been compounded by an increasing mismatch between the skills offered by workers and those demanded by the labour market.

    Mimiko added: “Having a lot of young adults is good for any country or continent, if its economy is thriving. But, if jobs are in short supply, it can lead to frustration and violence.”

    Noting that Africa is trailing behind other continents in ICT usage, which stands at nine percent, the governor said stakeholders must resist the temptation to gag the social media, which has become a veritable source of youth employment and empowerment.

    The governor also said that Africa needed more industrialisation than financialisation, adding that, although the service sector is doing well, the continent must stir growth in other sub-sectors.

  • Poor leadership under developing Africa – Dogara

    Poor leadership under developing Africa – Dogara

    The Speaker, House of Representatives, Yakubu Dogara, on Tuesday, said poor leadership was one of the causes of underdevelopment in Africa.

    He made this known when he received the Ambassador of Sudan, Mr Ibrahim Busha in Abuja.

    He added that the reliance on aids from the western world had left Africans more impoverished than before.

    Dogara said that unless African leaders begun to practice governance which put Africans first, the development the continent needed would take a little longer to be realised.

    He added that “I sincerely believe that for us to make progress, leadership in Africa must be for the people. If we do that, there is no limit to the potential of an African.

    “Unfortunately, we have been locked in a situation whereby leadership and governance as it is practised has only tied us to aids from the western world.

    “Instead of looking inwards, we always look outwards to aids that come to Africa and most of these aids have some strings attached.

    “The aids tend to imprison and impoverish our people more than liberating them and putting them on the ladder of economic prosperity.”

    The speaker said Africa needed to provide quality leadership to the people to eradicate poverty and for economic growth and prosperity.

    “That is something we can do when we further our cooperation and deepen our relationship with countries that occupy leading positions in Africa,” he noted.

    ‎Dogara said this was one of the ways through which the continent could achieve its goals of development, stressing that “going forward, there are many things we can do to provide quality leadership that Africa needs for its progress.”

    He assured the ambassador that the House of Representatives would work on agreements and treaties between the two countries that would benefit Nigerians.

    “I am aware of the diverse agreements ‎that we have signed. From your own side of the divide, you have even gone further to establish a special implementation committee with regards to agreements signed with Nigeria.

    “Unfortunately, it has not been done here but we are doing everything possible to ensure that we get it off the ground so that we can work hard toward implementing those agreements.”

    Responding, Busha assured the Federal Government of the Sudanese government’s support.

  • ‘Africa’s growth outlook good but……’

    Growth in Africa is expected to average over four per cent over the next five years, but is still heavily commodity-dependent, according to a report by the Institute of Chartered Accountants in England and Wales (ICAEW).

    The Institute in its report, ‘Economic insight: Africa Q1 2016’, pointed to good news for African economies, but warned that manufacturing still accounts for a small share of output.

    The accountancy and finance body in the report made available to The Nation, however, said the old model of exporting raw materials is becoming unsustainable.

    The report noted that Africa’s Gross Domestic Product (GDP) growth is projected to average 4.3 per cent between 2015 and 2020. Nigeria, the largest economy on the continent, is expected to contribute significantly to Africa’s economic expansion – at an average real rate of 4.8 per cent per year between 2015 and 2020, contributing over 25 per cent to the continent’s forecast growth in this timeframe.The report said in the East Africa region, Kenya’s economy would expand by around six per cent during the 2017 to 2020 period.

    It attributed this to Kenya’s relatively diversified economy and comparatively low commodity dependence, which bonds well with the country’s economic growth outlook. Regional Director, ICAEW Middle East, Africa and South Asia, Michael Armstrong said: “Africa is the most commodity-dependent continent on earth. Africa’s economies increasingly need to create a hospitable environment for companies in the manufacturing and services sectors to drive growth, as the old model of growth driven by exports of raw materials is out-dated.”

    Armstrong added that the East African region is embracing the use of renewable energy to leapfrog older power generation technologies, while also reducing the need to extend the national energy grid to remote villages.

    The report noted, for instance, that Kenya is ranked the seventh highest producer of geothermal power globally after it recently unveiled the second phase of the Olkaria geothermal plant.

    Olkaria is the biggest single- turbine geothermal plant in the world. However, Kenya continues to face its own unique challenges. The report said the country’s unwarrantable fiscal situation is the primary reason why both Standard & Poor’s and Fitch Ratings downgraded the country’s outlook from stable to negative last year.

    However, the report also pointed out that the Kenyan Government has taken important steps towards fiscal consolidation by preparing a supplementary budget that plans to reduce both development and recurrent public spending in the current fiscal year.

    Tom Rogers, Associate Director, Macro Consulting at Oxford Economics, said: “A clear plan for preventing fiscal slippage will be needed to underpin confidence in public finances and economic stability. The government’s recognition of these economic concerns will be needed to address these issues and instil some confidence in the country’s economic outlook.”