The Nation Newspaper

Tag: IFC

  • IFC boosts infrastructure with N60bn investment

    International Finance Corporation, IFC said it has invested 25 per cent, about N60 billion of its 2012 total investment in Nigeria on infrastructure. Vice President, sub-Saharan Africa, Latin America and the Caribbean, Jean Philippe Prosper stated this in Lagos while interacting with newsmen during his visit to Nigeria.

    He said that IFC has invested a total of $1.5bn in Nigeria within the organisation’s last fiscal year that ended in June, 2013.

    According to him, the infrastructure and natural resources sector got 25 per cent, about N60bn, while manufacturing and agribusiness got 25 per cent. The financial markets got N120bn about 50 per cent of the total investments.

    “We have significantly increased our volume of activities both in terms of investments and advisory services. On the investment front, we have in the past fiscal year, which is from July 1st 2012 to June 30, 2013, invested about $1.5bn in Nigeria which represents close to 30 per cent of what we have done in Africa this year. That was about 50 per cent in financial markets, 25 per cent on infrastructure and natural resources and the other 25 per cent in manufacturing and agribusinesses,” he said.

    He added that, “Overall in Africa, we have significantly increased our activities in infrastructure development particularly in power and transport, because those are the key areas of need in Africa. In Nigeria, our major focus is on power and we as a World Bank Group are working with the government and others and we have developed a joint World Bank approach on what we call Energy Business Plan.”

    He further noted that Nigeria’s economy is providing veritable opportunities, presenting huge prospects for growth and IFC will continue to do more businesses in Nigeria.

    “In terms of doing business in Nigeria, we would have not been able to increase our volume of business if there were no opportunities. Clearly, there are opportunities, it is a vibrant economy as the economy has grown to over 7 per cent in the last three years and it is expected to continue to grow even in a relatively faster pace. Of course, there are issues but what is important to us is that we are seeing positive trends in the economy and we are excited about the opportunity for us to continue to do more business,” he said.

  • Custodian partners Sickle Cell Foundation

    Custodian and Allied Insurance Plc is partnering with the Sickle Cell Foundation Nigeria to sponsor this year’s Sickle Cell Anaemia Walkathon to preserve lives.

    Head of Directorate, Administration & Corporate Affairs of Custodian and Allied Insurance Plc, Mrs. Olubunmi Aderemi, said a seven-kilometre walk for the anemia, observed in Lagos Island recently, was organised by The International Finance Corporation (IFC) Nigeria.

    She said the initiative was aimed at raising awareness and increasing public knowledge about the anemia; both in terms of alertness and recent advancements in management of the ailment. It was also aimed at raising funds to support increased research and provide some support to institutions caring for people affected by sickle cell anemia.

    “At Custodian, we like to associate with worthy courses affecting our environment and people around us. We identify this fight against sickle cell anemia as necessary to preserve human lives and are glad we are able to support a worthy course,” she said.

    “I know of a few people with sickle cell anaemia. Victims and their relatives go through a lot of pain, emotional trauma and such at times of crisis. It is costly to manage and requires patience and understanding by employers and lots of care by family and loved ones.

    “We hope to support the creation of necessary awareness of the condition and help educate the citizenry about its management.”

    Aderemi added that the company believes in partnering with initiatives with groups to impact positively on lives in their environment, notinh that with the awareness and fundraiser, research on sickle cell anemia would make progress in Nigeria.

     

  • NHIS engages Accenture for scheme’s growth

    NHIS engages Accenture for scheme’s growth

    • Asks stakeholders to complement efforts

    The National Health Insurance Scheme (NHIS), the Federal Ministry of Health in collaboration with International Finance Corporation (IFC) and World Bank, has engaged Accenture to develop an effective and industry-wide platform for sustainable growth as well as financing plan for scaling up the scheme’s coverage.

    Acting Executive Secretary of NHIS, Dr. Abdulrahaman Sambo, disclosed this during a consultative forum with stakeholders in Abuja.

    According to Sambo, the objective of the consultancy services from Accenture is to enable the repositioning of the scheme towards effective implementation of its programmes to the benefit of the citizens, promising to adhere strictly to the findings and recommendations of the consultants.

    Sambo however charged stakeholders of the scheme to complement efforts of the NHIS towards the attainment of universal coverage through prompt service delivery.

    The NHIS boss called on healthcare facilities providers to brace up to the task ahead and ensure that the scheme’s mandate of universal coverage is achieved.

    In his presentation, the Programme Manager, Accenture, Mr. Martin Eigbike said the group’s task as providing services in four key areas, he identified as; reviewing the regulatory policy frame work, designing an IT system, reviewing current business practice and proposing new ones to ensure sustainability. It also include conducting a review of long term funding requirements and identifying other strategies and mechanisms for securing potential sources.

    He further explained that this assessment is aimed at identifying existing constraints to achieving universal health coverage and specific opportunities to improve the effectiveness of NHIS.

    “The assessment will also establish the foundational principle that will guide the design of a blue-print for scaling up the capabilities of the scheme.

    “Review of the legal frame work to make the scheme mandatory would go a long a way in accelerating the attainment of universal coverage,” he said.

    Meanwhile stakeholders, unanimously agreed to work with the NHIS, but stressed that existing lacuna in the system be addressed to enhance attainment of this lofty goal.

  • Tantalizers draws $2.5m from IFC’s $7m loan

    Tantalizers Plc has received $2.5 million, about N400 million, from the protracted $7 million loan facility from the International Finance Corporation (IFC), easing the liquidity crunch that had orchestrated the company’s N304 million net loss in 2012.

    A report obtained ahead of the company’s general meeting today indicated that the disbursement of the loan, which was approved in 2010, started in April 2013.

    The drawdown was reportedly delayed by the difficulties encountered by Tantalizers in the perfection of collateral for the loan.

    IFC holds 8.15 per cent equity stake in Tantalizers, making it the fourth largest shareholder in the fast food company.

    Directors of Tantalizers have said paucity of funds due to delay in drawdown of the IFC loan hampered the company’s strategic branch expansion, renovation and marketing activities and was largely responsible for the negative bottom-line in 2012.

    According to the report, the company was only able to open one outlet and renovated two stores in 2012 as against earlier plan to open six new outlets and renovate several stores in 2012 based on expectation of the funds from IFC.

    The non-renovation of the ageing outlets adversely affected the competitiveness of the outlets as customer preference was for new and more appealing outlets.

    Already with bank loans totalling more than N1.5 billion, the cash crunch in 2012 also limited marketing activities and forced the company to undertake critical review of its operations.

    In the second half of 2012, the company decided to close down sub-optimal outlets, especially loss-making outlets. It closed two outlets in the last quarter of 2012 and stepped this up with closure of seven other outlets in January 2013.

    With the release of the part of the IFC loan, the company has embarked on renovation of its major outlets while it has stepped up its marketing and expansion initiatives.

  • IFC to build collateral registry for SMEs

    The International Finance Corporation (IFC) is working with the Corporate Affairs Commission (CAC) to build a collateral registry system that will make it easier for banks to lend to the Small and Medium Scale Enterprises (SMEs).

    Speaking at the SME Toolkit Global Partner conference in Lagos, IFC, Nigeria Country Manager, Solomon Quaynor, said the corporation had realised that banks do not want high risk transactions, synonymous with lending to SMEs.

    He said the corporation was also partnering with 10 local banks to de-risk lending to the subsector. He said the SME Toolkit lunched in the country by IFC, IBM and EDC Pan African University, will enable the entrepreneurs effectively to manage their businesses. He therefore said the IFC has stepped in to de-risk such loans by providing financial infrastructure and developing collateral registry that will assist banks in lending to the subsector.

    Quaynor said that since a lot of the SMEs do not have landed assets, except receivables, IFC is working with Corporate Affairs Commission (CAC), Ministry of Trade and Investment to build a registry system that should include the ability of SMEs to borrow from banks.

    “We are working on getting the SMEs to use toolkit, so that banks can be more comfortable lending to the subsector. Our focus is not about giving money to the banks to lend to SMEs. It is about building their confidence in the SMEs so that that subsector can easily obtain loans from lenders,” he said.

    He said the corporation spends a lot of time training the banks to understand SMEs, by designing products for the subsector among other things. It is not about the money we are providing for banks, but that we are getting them to be more careful in lending to SMEs.

    He said the corporation is investing broadband services to ensure that the right communication platform needed to reach more entrepreneurs across the country is made available.

    General Manager, IBM Africa, Taiwo Otiti, said the SMEs tools help entrepreneurs manage their businesses properly, and in the process, making it attractive for banks to grant them loans.

    “The SMEs Toolkit will help entrepreneurs input their financials, making it easier for banks to understand and take lending decisions on their account positions,” he said.

    He said SMEs remain engine of growth for the economy, adding that they are the largest employer of labour within the economy. He said that when the SMEs businesses are run well, then they will have the capacity to employ more people. “Part of the SMEs teaching is how to package their businesses to attract banks’ lending. Also note that there are several types of banking in the country,” he said.

    He said as the economy grows, the ability of banks to loan funds to entrepreneurs also grows adding that the presence of credit bureaux have also raised banks’ appetite to lend to the SMEs’ subsector.

     

    Director, Enterprise Development Centre, Pan African University, Peter Bankole said that minimum 80 per cent of jobs created in Nigeria are from small businesses. “The National Bureau of Statistics survey conducted last year showed that SMEs sector will continue to play dominant role in job creation in the economy,” he said.

    Bankole said the challenge remains that majority of SMEs are micro, but government is trying to move as many as possible from micro to small because that will give better multiplier effects for the economy and job creation.

     

  • IFC agric project for women coming

    An agricultural venture supported by the International Finance Corporation (IFC) aimed at generating 1,200 jobs of which a significant portion will be filled by women will soon take-off.

    The project is expected to contribute to the development of rural communities and promote international best practices in environmental and social standards in Africa.

    The investment, which will make debut in South Africa before other Sub-Saharan African states will promote investment in climate change mitigation through expanded timber plantation and other agro businesses. The investment is also expected to support new avocado orchards in Africa, improve technology to increase fruit and timber yields.

    Chief Executive of the first African beneficiary company, Mr Claus Lippert of HMH (Pty), said the firm’s relationship with IFC will improve their systems and also help them to achieve high standards in business practice. He also said that the collaboration with the global investment company will send a strong signal about their commitment to growth based on best practices and inclusive development in the agribusiness and forestry sectors.

    IFC Regional Director for Manufacturing, Agribusiness and Services, Oscar Chemerinski, in his remarks said: “IFC has a strategic priority to help Africa achieve food security and to develop

    its agribusiness and forestry sectors according to international best practices.”

    He reiterated that their partnership with HMH (Pty) demonstrates their commitment to

    working with well-managed, sustainability-driven companies with an ambition

    to expand at home and beyond.”

    HMH exports about half of South Africa’s avocados to the European Union,

    where it is a market leader. It has pine and eucalyptus forest plantations

    in three South African provinces and four timber processing mills providing

    material for the country’s housing and manufacturing sector.

     

    IFC on its part has embarked on a special initiative to support agribusiness in Africa to

    aid increased food security. In its last fiscal year that ended in June 2012, it committed and mobilized 586 million dollars in new agribusiness and forestry investments in Sub-Saharan Africa.

     

  • IFC issues N12b local currency bond

    The International Finance Corporation (IFC) has issued a Nigerian local currency bond totaling N12 billion, about $75 million, to support domestic capital markets and increase access to local-currency finance.

    The issue, called the “Naija” bond, is IFC’s first naira-denominated bond. It is also the first placement by a nonresident issuer in Nigeria’s domestic capital markets. “Vibrant domestic capital markets create access to long-term, local-currency finance for the private sector—the key engine of job creation in emerging markets,” said Jingdong Hua, IFC Vice President and Treasurer.

    “The IFC Naija bond supports our efforts to deepen domestic capital markets in Africa, so they can sustain a thriving private sector in the region.”

    Solomon Adegbie-Quaynor, IFC Country Manager for Nigeria, said: “The IFC Naija bond supports the efforts of the government and authorities to deepen domestic capital markets and grow the corporate bond market in Nigeria. A well-developed corporate bond market in turn can provide affordable, long-term naira funding to meet the financing needs for critical sectors such as power.” IFC’s committed portfolio in Nigeria stands at $1.1 billion, the largest country portfolio in Africa and the eighth-largest globally.