The Nation Newspaper

Tag: Economic growth

  • Osinbajo: Innovation key to economic growth

    Vice President, Prof. Yemi Osinbajo, yesterday said Nigeria’s greatness, economic growth and quest for lasting happiness for the citizens could be achieved through innovation and integrity.

    He added that no nation desirous of greatness should substitute innovation for anything else.

    Osinbajo, who spoke during his visit to Africa Fintech Foundry, founded by Access Bank, commended the  bank for its leadership role in technology advancement in the country.

    He urged the lender not to rest on its oars but continue to play leadership role in extending banking services to rural areas using technology.

    According to him, the Federal Government would strike partnership deal with the private sector and innovators to increase the level of innovation coming from the country. He stresed the need to invest in the technology sector as the economy expands.

    He urged the youths to think deeply and start doing things creatively. He stressed the need for them to also put integrity in at the forefront of their dealings.

    “Innovation is the future of Nigeria. We must combine it with integrity if we must move our country forward. I have been to Andela, Farmcrowdy and others and have seen what the youths are capable of doing; they are just fantastic. We must create the environment for them to thrive. Innovation will be the toast of our nation in the future,” he said.

    Osinbajo lamented that the country had suffered immensely from the erosion of integrity, saying what “what has happened in the last few years shows that we can actually change and we are changing. There are people of integrity in Nigeria, we need to build that trust and show it to people outside.”

    He said the Federal Government is building technology hubs in six varsities across the country, saying that the project has started with the University of Lagos.

    According him, the initiative would enable the country to discover more talents.

    Welcoming the Prof Osinbajo, the Chairman of Access Bank, Mrs. Mosun Belo-Olusoga, described financial technology (FinTech) as process designed to provide financial services with technology.

    She said Access Bank is aligned with global best practices and doing a lot to ensure that it promotes innovation and creativity.

    According to her, access to financial services is an enabler of economic development, which will assist the underserved and unserved Nigerians.

    The lender’s Executive Director, Information and Technology and Operations, Ade Bajomo, said Access Bank is at the fore front of innovation in the country because it recognises that things are moving fast and that the banking sector will be disrupted. He said the bank is prepared to partner with the Federal Government to develop small medium enterprises (SMEs) across the country.

  • PZ Wilmar: Health crucial to economic growth

    Notable food ingredients consumer brand, PZ Wilmar has said health is vital to economic growth. It said the major focus of its Mamador cook oil therefore is promotion of heart health.

    Its Category Marketing Manager, Chioma Mbanugo said Mamador is a health conscious brand that focuses the health of the consumers, adding that it also striving to provide its consumers with the highest quality.

    Speaking during the unveiling of its national consumer promo, tagged: Mamador Kitchen Makeover in Lagos at the weekend, she said the promo was designed to reward loyal consumers across the country.

    She said: “We believe that consumers should enjoy their meals without any worries, the heart is essential to us as humans and we can also agree that our kitchen and its utensils also play an important role in ensuring healthy living. So we consider this a better way to reward our loyal consumer than to further enhance their cooking experience and encourage them to make more healthy and tasty meals.”

    Also speaking, the Sales Director, PZ Wilmar, Ipsit Chakrabarti said the firm remained committed to providing great quality, healthy cooking oil for Nigerian families.

    “This promotion, as it extends to all markets and stores across Nigeria, is also an extension of that commitment; we want ensure that our consumers do not just enjoy healthy and tasty meals but they also enjoy the process of making them as well,” he said.

  • ‘We are using technology to hasten economic growth’

    ‘We are using technology to hasten economic growth’

    African Founders Chief Executive Christian Keller has a history of building companies from early stage to international level. His organisation is a private business incubator, which has experience in carving out strategies for complex businesses in product development, private equity financing and regulatory affairs. He tells DANIEL ESSIET that technology will remain the soul of economic growth.

    What key technology trends are changing the economy landscape?

     The internet has truly changed Nigeria. About one third of Nigerians now have access to smartphones devices and data are getting cheaper daily. Many of us have been chatting with our friends and shopping for electronics on our phone. Now you can even consult a doctor or hire a trusted handyman from the convenience of your home.

    The internet alone will contribute as much as $300 billion to Africa´s gross domestic product (GDP) by 2025, according to a report. This means, technology will reach beyond its limits and transform industries. For example, the way health care is delivered in Nigeria could change a lot in the future. Teleconsultation would soon become mainstream. Patients will have their medical records accessible from their phone and can share specific records with doctors, laboratories or global specialists as needed. This will go hand-in-hand with an array of reinvented medical devices.

    Potable devices for ultrasound scans or tests for infectious diseases, such as malaria or HIV, would soon be smaller and more affordable. This means that access to quality diagnosis and treatment in rural areas will improve greatly. In addition, there will be new patient devices that can improve adherence to medicine and monitoring of health status. This include wearables, such as watches, which detect common heart conditions or 24/7 blood sugar measurement devices, which automatically report data and computer-aided interpretation to your electronic health record. We will also see community and education apps for pregnant women or young mothers.

    Sensitive data could be stored, using block chain technology, which has the potential to secure our data beyond what we know.

    What trends and challenges do you see in the industry?

    One key trend I see is much deeper collaboration among different stakeholders. In health care for instance, hospitals, pharmacies, internet platforms and technology companies need to work hand in hand with government agencies to take advantage of the technology that is emerging in that space. This would not always be easy as different industries have different perspectives on things. Yet, collaboration is the only way forward, as the world gets more and more connected.

    The beautiful thing is that it could lead to a new paradigm of health care,  one which is more value-based than cost-based; more patient-centric than treatment-centric and more preventive than curative.

    This will also give rise to new business models. Already, Uber functions as the largest taxi company in the world, yet they don´t own a single car. Likewise, AirBnB does not own a single apartment, yet they could be described as the world´s largest hotel company. Thus, innovative platforms are emerging at the centre of industries connecting their participants and enabling them to better work together.

    The industry’s potential is restricted by the lack of digital talent. How do we this?

    Countries, such as India or China, have done a great job in providing high-quality engineering schools and are guiding young talent towards it. Nigeria has a large pool of young and hungry high school graduates – it needs to learn and make use of its talent.

    Education also needs to be more practical. The best developers you can find in Nigeria are self-taught – they might have a computer science education, but they learned their most relevant skills by implementing projects at the side of or after their education. Great schools should encourage and mentor their students on such side jobs, internships or even provide work for them.

    Lastly, we need more trust in local development and find ways of adopting global development standards to Nigerian culture and way of doing things. The naira devaluation has made it favourable to rely on local development and service providers, even for larger projects – we now need to start making it happen.

    Both the government and the private sector have continued to concentrate on startups. Are they so important?

    Startups are very relevant to the digital economy. Many of the most significant innovations in recent history came from companies, which started as startups. They don´t have heritage obligations; they have the freedom as much as the need to think outside the box. Their whole leadership culture is built around creating disruption, which established players can´t often  provide.

    Yet, they will only thrive in an environment that nurtures them. The government needs to ensure that policies are not hindering, but actually allow startups to unfold their potential.

    What do we need to build a successful digital economy?

    We can learn from those who have built successful digital economies. The world´s most modern digital economy can be found in Estonia. Over a long period of time, they have systematically invested in talent, supported local IT companies and put forward a digital training agenda for schools, companies and government. They have created a digital passport for all their citizens, a central electronic health record and management system and a central data architecture based on distributed storage.

    As a consequence, it became the first country in the world that allowed voters to participate in parliament election over the internet. They conducted the world’s first e-census and now it offers foreigners to obtain digital citizenship, just like almost any government activity can be done online. Innovations like the communication software Skype and many more were born in Estonia. Since  then, it has become one of the fastest growing economies in Europe and is widely known for its tech talent and expertise.

    So, a key formula for a digital agenda is strong support and guidance by government combined with the freedom and empowerment of business initiative to find effective ways of implementation. Entrepreneurs need to be encouraged and enabled to contribute.

    However, a digital agenda also needs a deep understanding of technology and the openness for innovation. A lot of money has been wasted by Western countries trying to bring traditional structures to the internet rather than innovating their business models with it. This requires digitally savvy leaders. Part of the success story of Estonia was that they had a president who had a deep understanding and passion for technology.

    Also, the average age of politicians in the Estonian parliament was 35 at that time, so much lower than in most countries. A new generation of leaders, who deeply understands the potential that lies in the smart use of technology needs to arise. With this, many sectors of the economy can be transformed so that citizens can be enabled to do their work in a much better and more productive way.

    The government has challenged businesses to embrace technology. How can the government create the right environment for investment?

    First, businesses need a stable and encouraging legal framework to operate. Companies often prefer to delay the adoption of new technologies until it is clear what is legal and what is not, especially in sensitive areas like healthcare or financial services.

    Then, the government should support the setup of education and co-creation centers for local entrepreneurs of all types. If well done, such centers can give access to capital as much as knowledge and contacts all across the country.

    Innovative governments then work on digital agendas for mobile payment, unique identity, central electronic health record, or credit scoring  and sometimes, even a technical support architecture for it and more.

  • Don harps on infrastructure for economic growth

    If Nigeria is to achieve the desired economic growth it must effectively deal with deteriorating infrastructure seriously eroding the economic gains across the country.

    This is the view of a Senior Lecturer, Centre for Strategic and Development Studies, Ambrose Alli University, Ekpoma, Dr Tony Osawe.

    Speaking with The Nation, Osawe stressed the need to renew the growth model and enhance growth quality to improve economic productivity and competitiveness.

    He particularly stressed the need for training in building roads and rail system to address the infrastructure deficit, boost trade, increase growth and create jobs.

    According to him, the projects have the potential to promote interconnection across the country and facilitate market access.

    He said there is need to increase farmers’ participation in the market, stressing the need for multi-modal development corridors.

    Osawe said enhancing infrastructure can promote industrialisation and boost agricultural growth. According to him, the top priorities should include rationalising agriculture in concert with building new-style rural areas, and restructuring public investments.

     

     

     

     

  • Global economic growth on track

    The global economy is set to grow by almost 4 per cent  this year  in purchasing power parity (PPP) terms, adding an extra $5 trillion to global output at current values, according to new projections in Price water house coopers International (PwC)’s Global Economy Watch.

    The main engines of the global economy – the US, emerging Asia and the Eurozone – are expected to contribute almost 70% of economic growth in 2018 compared to their post-2000 average of around 60per cent .

    Growth in the Eurozone is predicted to be above 2% per cent in 2018, as PwC expects the peripheral economies to outpace the core for the fifth consecutive year. Of the larger Eurozone economies, the Netherlands is expected to lead the way with economic growth at around 2.5%. By contrast, uncertainty relating to Brexit is expected to drag on UK growth, which is predicted to be 1.4% in 2018.

    Barret Kupelian, senior economist at PwC, comments: ‘In 2018, we expect global economic activity to grow at its fastest rate since at least 2011, with the three main engines of the global economy-the US, Eurozone and Asia-growing in tandem. However, there are some downside risks businesses should monitoring including the progress of the Brexit negotiations, key elections in large economies and protectionist tendencies in some nice sectors of the economy’

    China, the world’s largest economy in PPP terms, could grow by 6-7% in 2018, slower than previously, but in line with expectation. Amongst the 17 economies that will grow faster than China are India, Ghana, Ethiopia and the Philippines, pointing to broader based growth in Africa and Asian economies. Eight of the ten fastest growing countries in 2018 could be in Africa according to PwC’s analysis.

    With the fastest level of growth for several years, 2018 is predicted by PwC to be the most energy hungry on record too. Almost 600 quadrillion British Thermal Units of energy could be consumed by the global economy in 2018, the highest level on record and double that of 1980. India and China alone are expected to consume 30% of global energy.

    Despite this, PwC’s outlook predicts oil prices are set to remain broadly stable in real terms, with OPEC and its allies extending its 1.8 million barrels per day supply cut until the end of next year.

    Other influences and factors to watch include PwC’s Global Economy Watch include:

    The European Central Bank could reduce its monthly asset purchases in 2018, but a dramatic shift in monetary policy in Japan is unlikely.

    Across the G7, the unemployment rate is predicted to hit a 40 year low, at around 5% or 19 million workers.

    Wage growth will post a modest uptick in some advanced economies where spare capacity is limited but remain below pre-crisis levels.

    An extra 80 million people are likely to be added to the world’s population in 2018, but as a percentage increase this would be the slowest since 1950. For every 10 people added to the world’s population, PwC predicts nine will be located in either Africa or Asia.

  • ‘Osun International Airport ’ll stimulate economic growth’

    ‘Osun International Airport ’ll stimulate economic growth’

    The construction of the MKO Abiola International Airport in Ido-Osun, Osun State, will turn around the state’s economic prospect and industrial base, the Attorney-General and Commissioner for Justice, Dr. Bashiru Ajibola, has said.

    According to Ajibola, the concessionaire of the project, which is under construction, is All Works of Life (AWOL) International Limited,

    He said it is part of the interventions of Rauf Aregbesola-led administration enclosed in the Blue Book that focuses on the six integral action plans.

    Ajibola said the blue book has served as a compass in guiding the seven-year-old administration to address challenges related to banishing hunger, unemployment and poverty from the state.

    Ajibola said the 3.5 kilometre airport runway has attained 85 per cent completion with other support facilities that would create a good ambience for aircraft maintenance services and hangar.

    He said facilities under construction at the proposed airport could only be compared to those in Johannesburg, in South Africa, and Ethiopia.

    The airport, Ajibola said, will be unique because of its ability to handle haulage and cargo shipment.

    On the economic implication of the project, he said: “five -10 percent of the N69billion earmarked will find its way into the economy of the state through direct engagement of skilled and unskilled workers by the concessionaire.

    “It will galvanise our local economy, not to forget the fact that the access road to the international airport will be a dual carriageway, thereby improving the road infrastructure, which will be a value booster for property and structures in the axis.

    “Over time, the offices of statistics and economic planning have been engaged in monitoring the direct and indirect benefits of all our interventions with special cognisance to a reduction in unemployment ratio and attendant economic effect. The reports computed have always been positive and encouraging.”

    According toAjibola, besides the construction of an international airport in the state, the administration has embarked on other infrastructure intervention by facilitating the movement of indigenes through rail.

    He said the government has spent N3.5 billion to re- construct the runway of the abandoned aerodrome  used for airlifting military personnel during the Second World War.

    The governor, he said,  has adopted creative ingenuity in the financing of the airport project by opting for the Build, Operate and Transfer (BOT) model by engaging a concessionaire.

    The concessionaire, Ajibola said, is carrying out the project in collaboration with the Turkish Government.

    He said:”This is the reason the governor adopted a creative financing model to demonstrate his ingenuity in assisting Osun people. This explains why the BOT model was adopted by engaging AWOL. This  is done in collaboration with the Turkish Government, wherein 85 per cent of the N69 billion will be sourced from them.”

    Ajibola said the whole idea was to cement the export and import partnership development and trade arrangement for technological and expertise contribution of the Turkish Government to Africa using the State of Osun as a standard template for its materialisation.

    “The basic essentials of the airport, which are the runway, control tower, terminal building, aviation equipment, regulatory interphase with the Federal Government will be perfected such that a Boeing 747 will taxi from the MKO Abiola International Airport in eight months time,”he said.

  • ‘Akeredolu committed to Ondo economic growth’

    ‘Akeredolu committed to Ondo economic growth’

    The Oluwarotimi Akeredolu administration in Ondo State is committed to improving the fortunes of the state through all-round economic development, the Commissioner for Information and Orientation, Yemi Olowolabi, has said.

    The commissioner spoke yesterday in his office in Akure, the state capital.

    He said: “We knew the need to take the bull by the horns was inevitable; hence the decision to be pragmatic. Our focus is on making the economy of the state buoyant, viable and sustainable by laying emphasis on our areas of strength, where we have relative advantage.

    “We have the longest coast in Nigeria. This means nature has bestowed on us a gift of immeasurable economic advantages. All we need is to be proactive and sensible and tap into the benefits derivable from this gift of nature.

    “It is no longer a secret that Governor Akeredolu has been making efforts to get the state a deep seaport, which would help in no small way to improve the lot of the state. Everyone knows a deep seaport will catapult the state into a beehive of economic activities.”

    Olowolabi said the government was not unmindful of the bitumen deposit in the state, adding: “By the time the Federal and state governments conclude the paperwork on the exploration of this deposit, definitely, our collective fortune is bound to improve.”

    The commissioner said the state government was also maximising the opportunities available in agriculture.

    He said: “With the vegetation we have across the three senatorial districts, it would be a disservice to the people if we do not make use of the sector to boost our economy.

    “To show our seriousness, trainings are being conducted and loans given out to youths who are interested in farming. Agriculture will be used to take as many youths as possible off the unemployment market. The task is achievable.”

    Olowolabi assured the residents that Akeredolu would leave a lasting legacy.

    He said: “This government has the mission to improve the people, the infrastructure and strengthen the system. Years after leaving office, a good leader should be remembered for the transformation he brought into governance. This is in form of economic well-being he was able to bring about in office.”

    The commissioner said the situation Akeredolu met on the ground was not encouraging, adding that his administration was ready to weather the storm.

    Olowolabi noted that the economic situation in the state was not the best due to reliance on stipends from the Federation Account.

    He said: “We remain determined to move the state forward, despite the challenges. People in government need to make use of the power they have to change the fortune of the people.”

     

  • Empowering artisans to spur economic growth

    The Lagos State government is retraining artisans to enable employers find tradesmen with advanced skills. With this, certified artisans are now listed in a compendium as well as online market place to sell their services. The state believes that given a level playing field, artisans and tradesmen can help grow the economy and build a better future. DANIEL ESSIET reports.

    More than half of jobs and business opportunities in Lagos are said to be for skilled artisans. However, very few of the artisans have the required skills to fill those job vacancies.

    To address the imbalance,  the Lagos State government has commenced the training and re-training of 1500 artisans every year.

    The state government is empowering the artisans under a three- month training programme aimed at boosting their capacity to contribute to economic growth and development.

    One of the beneficiaries of the traing programme, Mr. Akindele Akinlola, a carpenter and furniture designer, told The Nation that  the programme was critical if artisans must step up their  game in their chosen vocation. Akinola spoke on the sideline  of  the 8th Tradesmen and Artisans Week and Graduation Ceremony for 1,500 re-trained artisans and traders organised by the state’s Ministry of Wealth Creation and Employment, at Ikeja.

    He said apart from helping artisans scale up, it was also  important that artisans are listed  on the virtual market place, which he described as “The future of the industry.”

    Alhaji Olowoopejo Sule, a member of Sand Dealers Association, Apapa, expressed optimism that the the retraining will open doors of opportinities for his career as a  sand dealer, adding that the government is supporting tradesmen to get all the training  needed to do their job and make a living.

    He said on the strength of the training  he can now evacuate sand while also using his hands to  tap his  phone  keyboard to upload pictures and information on the virtual market that lists more than 18,000 artisans in Lagos.

    Another benefiary of the training, Obamuyi Durojaiye,  from Okota, said vocational training in Lagos has taken a different shape. He said he worked his way up by earning certificates and later becoming computer literate to operate on the virtual market, courtesy of the Lagos State government.

    Durojaiye said based on the training, he  now sees his future as an artisan brighter than ever. He said his career is one that  doesn’t require a degree but requires specialised training.

    Beyomd the training, the Lagos State government launched a compendium of 20,000 registered tradesmen and artisans with unique identification numbers to improve the sector’s contribution to the state’s  socio-economic development.

    Lagos State Governor Akinwunmi Ambode said the compendium would help to differentiate the authentic artisans from those operating illegally in the state.

    The governor said that henceforth, the state government will officially patronise the services of registered tradesmen and artisans in the areas needed.

    He said the state government had also opened an online portal designed to facilitate interaction amongst artisans, Micro, Small and Medium Enterprises (MSMEs), customers/end-users and other relevant stakeholders.

    Ambode said tthe primary goal of the portal was to make it easy and convenient for people in need of high quality services to meet reliable, trusted and verified service providers.”It is also aimed at enhancing the productivity, competitiveness, creativity and vitality of the sector,” he said.

    Ambode said the theme: “Technology and Innovation: A Catalyst for the Development of the Artisans and Tradesmen” was apt, as it would sensitise the artisans to the reality of global trends.

    “In this modern time, successful businesses are driven by technology and innovative ideas. It will be difficult for you to survive and stay ahead of your competitors if you continue to do things the old way and fail to key into the current reality.

    “There is no aspect of your trade or vocation that you cannot apply technology to improve on quality, efficiency and productivity,” the governor said.

    He said that his administration will  continue to implement policies and incentives aimed at improving the productive capacity of artisans and tradesmen. According to him, the growth and profitability of the sector remained a top priority.

    Ambode advised the retrained artisans to leverage on the endless opportunities the state had offered them.”Our state is one of the fastest growing economies in the world and it presents great opportunities that are waiting to be tapped and challenges which you are the solution provider.

    “Your training has been designed to address the skills mismatch and provide the right mix of skills needed to service the industrial needs of the state.

    “This administration has a clear focus on all our initiatives and beliefs  in the potential and innovative capacity of Lagos artisans,” he said.

    Ambode assured that his administration would continue to provide and maintain the required infrastructure and conducive environment for businesses to thrive.

    He recalled various initiatives designed to scale up the informal sector such as the N25billion Employment Trust Fund (ETF), among others, and assured traders and artisans in the state that government would continue to implement strategies and programmes to promote their businesses and create conducive environment for their operations.

    While expressing excitement over the fact that it was the tailors from the state that produced the academic gowns used for the graduation, the governor said moving forward, the state government will officially engage traders and artisans on jobs that would improve their livelihood.

    Speaking on specific requests made  by LACOSTA, the governor said: “As a start, we instruct the Ministry of Wealth Creation and Employment to see the capabilities and the opportunities that we can spread out from state jobs and contracts and give to our artisans.

    “I am very happy to note that we have graduates among you and also graduates who are also your children. So, we hereby create an immediate opportunity through your associations to be able to recruit into key areas in the public service where we can need your services. These are not political promises, we keep our promises and we will fulfil all our promises.”

    While congratulating the artisans and traders for successfully undergoing the training, the governor urged them to put all they have learnt to effective practice and leverage on the endless opportunities in  the state’s strategic position  as one of the fastest growing economies in the world to be solution providers.

    He assured that the state government would continue to provide and maintain the required infrastructure and conducive environment for businesses to thrive.

    Earlier, in his opening remarks, Commissioner for Wealth Creation and Employment, Mr. Babatunde Durosinmi-Etti, said since the last edition of the event, Ambode, as requested by LACOSTA, had already approved N12million annual subvention to the association and increased the number of beneficiaries in 2017 to 1500 from the 500 that were trained last year.

    Durosinmi-Etti had earlier said the graduands underwent an eight-week intensive training programme in their areas of trade.

    He said the awards presented to them were expected to serve as morale booster and increase the drive in others to create a competitive business environment.

  • Report: African smallholders in $1t deal to push economic growth

    Report: African smallholders in $1t deal to push economic growth

    African agricultural entrepreneurs are set to take advantage of the free market to encourage the continent economic growth from food production and agribusinesses. A Africa Agriculture Status Report (AASR), said there were opportunities of a rapidly growing food market in Africa that may be worth more than $1 trillion each year by 2030 to substitute imports with high value food made on the continent.

    According to the report, agriculture will be Africa’s quiet revolution, with a focus on Small Medium Enterprises (SMEs) and smallholder farmers creating the high productivity jobs and sustainable economic growth that failed to materialise from mineral deposits and increased urbanisation.

    It stated that despite 37 percent of the population now living in urban centres, most jobs have been created in lower paying and less productive sectors even when the agriculture sector accounted for more than half of the continent’s GDP.  It added that smart investments in the food system can change this picture dramatically if planned correctly.

    Commenting on this year’s report findings, president of the Alliance for a Green Revolution in Africa which commissioned the study, Dr. Agnes Kalibata, said: “Africa has the latent natural resources, skills, human and land capacity to tip the balance of payments and move from importer to exporter by eating food made in Africa. This report shows us that agriculture involving an inclusive transformation that goes beyond the farm to agri-businesses will be Africa’s surest and fastest path to that new level of prosperity.”

    According to her, Africa can only succeed if her agricultural revolution is made to be different from those seen in the rest of world.  This is besides requiring an inclusive approach that links millions of small farms to agribusinesses, creating extended food supply chains and employment opportunities for millions including those that will transit from farming.  The report stated that this is in contrast to the model often seen elsewhere in the world of moving to large scale commercial farming and food processing, which employs relatively few people and requires high levels of capital.

    The report highlights the opportunity for Africa to feed the continent with food made in Africa that meets the growing demand of affluent, fast growing urban populations on the continent looking for high value processed and pre-cooked foods.

     Furthermore, it advocates that this opportunity should be met by many of the continent’s existing smallholder farmers.  The report lamented that currently part of this growing demand for Africa’s food is met by imports which amount to $35billion per annum and are expected to cost $110billion by 2025 unless Africa improves the productivity and global competiveness of its agribusiness and agriculture sectors.

    The report acknowledges that the private sector holds the key to the transformation of the food system so far. “Impressive value addition and employment is being created by SMEs along value chains in the form of increased agricultural trade, farm servicing, agro processing, urban retailing and food services. Large agribusinesses like seed companies, agro processors and supermarkets are also playing an increasing role in the food value chain in many regions,” said the technical director of the report, Peter Hazell.

    The report also stated that left to the private sector alone, growth in the agrifood system will not be as fast as it could, nor will it benefit as many smallholder farmers and SMEs as it could.  It asked for government support to stimulate and guide the transition.  It added that as a matter of priority government need to create an enabling business environment and in particular, meet targets to invest ten percent of GDP in agriculture, agreed at the 2003 African Union (AU) Summit as part of The Comprehensive Africa Agriculture Development Programme (CAADP).

    The report also urged government to nurture a globally competitive food production sector through measures such as increasing infrastructure investment in secondary cities and towns, improving the reliability of energy and water supplies and building more wholesale market spaces. Others are the promotion of promoting open regional trade, identifying and investing in first mover crops and introducing stricter standards for food safety and quality.

    The authors also called on governments to stimulate new private public partnerships for more innovative financing and insurance provision which can lead to increased resilience for farmers and their households.  It lamented that while global agricultural insurance is a $2 billion business, Africa accounts for less than two percent of the market.

  • ‘NEM committed to economic growth’

    ‘NEM committed to economic growth’

    NEM Insurance is committed to its shareholders’ vision of making the company a model of sound insurance practice in the  industry and growing the economy, its Group Managing Director, Tope Smart has said.

    Speaking at a briefing at the just-concluded African Insurance Organisation in Kampala, Uganda, he said the firm will achieve this goal by offering quality services and pays claims promptly.

    He stressed that the company also engage in marketing programmes that will enable the public make an informed choice about its.

    He said: “We intend to build a customer satisfying insurance institution that is passionate about adding value to the interests of all stakeholders and be the preferred choice of the insuring public

    “The location of our headoffice at Palmgroove area on Ikorodu road brings us closer to our customers. The office is very accessible and people feel comfortable when they can easily assess their partners. It is very accessible and the environment is very friendly unlike where we were on the island and the people are always happy because.

    “It is very comfortable and so we have customers coming in and going out on daily basis and they are satisfied. We believe that it’s not enough for them to come in, but for us to ensure they get satisfaction when they come into our office.”

    On the preparedness of the company in adopting Risk-Based Supervision (RBS) introduced by the National Insurance Commission (NAICOM), he said they were preparing for the risk based supervision.

    He stressed that the company already have consultants to ensure that their reportr was ready on time.

    ‘’We have also put in place a corporate governance structure and we will continue to improve and we have people working with us to ensure that we get it right, ‘’he added.