Reuters
JOHANNESBURG, Dec 12 (Reuters) – South Africa’s manufacturing output rose 2.1% year on year in October after falling by a revised 4.1% in September, statistics agency data showed on Tuesday.
Factory production was down 0.2% month on month in October, after dropping by a revised 0.8% in September.
Nigeria striker Osimhen crowned African Footballer of the Year
Reuters
Nigeria striker Victor Osimhen has been named African Footballer of the Year after beating Mohamed Salah to the award at a ceremony in Marrakech on Monday, with compatriot Asisat Oshoala winning the top prize in the women’s category.
Osimhen, 24, scored 26 goals as he helped Napoli to a surprise triumph in Serie A last season and was the leading marksmen in Italy’s top division.
Egypt’s Liverpool forward Salah and Morocco’s Paris St Germain right-back Achraf Hakimi were the other two final nominees but Osimhen claimed the prize to become the first Nigerian winner since Nwankwo Kanu in 1999.
“It is a dream come true. I have to thank everybody who has helped me on this journey and all Africans who have helped to put me on the map despite my faults,” Osimhen said.
Morocco won National Team of the Year in the men’s category after their thrilling run to the World Cup semi-finals in Qatar, while their manager Walid Regragui won Coach of the Year.
Nigeria’s Barcelona forward Oshoala was the women’s African Footballer of the Year for a record sixth time, having battled injury to help her side to the round of 16 at the World Cup in Australia & New Zealand where they took England to penalties.
Nigeria took home the trophy for National Team of the Year, but South Africa’s Desiree Ellis won women’s Coach of the Year for the fourth time in succession.
AFDB, FED sign $20mln Trade Finance agreement to support SMEs in Nigeria
Nigerian Tribune
The African Development Bank (AfDB) has signed a $20 million Trade Finance Facility Agreement with FSDH Merchant Bank, to support small- and medium-sized businesses in Nigeria’s industrial and manufacturing sectors.
The facility consists of a $15 million Trade Finance Line of Credit to support SMEs and indigenous corporates and a $5 million Transaction Guarantee to support the confirmation of FSDH’s trade finance transactions.
Similarly, Ecobank Transnational Incorporated (ETI) has also inked a deal that will avail $200 million in sustainability-linked loan to the lender, with a group of five European Development Institutions namely Proparco, Norfund, FMO, DEG and EFP.
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For the $20 million facility availed to FSDH, the African Development Bank will guarantee up to 100percent of non-payment risks from letters of credit and similar trade finance instruments issued by FSDH under the Transaction Guarantee for the benefit of local import and export businesses.
It is estimated that over the next three years, the facility will catalyze more than $200 million of trade finance transactions across several sectors, including agriculture, manufacturing, and energy.
Signing the agreement, Lamin Barrow, African Development Bank’s Director General, Nigeria Country Department, said the arrangement was a testament to the Bank Group’s commitment to help plug Nigeria’s trade finance gap by working with strategic partners like FSDH to provide critical support to SMEs.
Barrow said: “Lack of sufficient correspondent banking lines of credit and inadequate access to foreign exchange have been identified as some of the major reasons banks in Nigeria do not finance trade finance requests from their clients. That is why the African Development Bank established a dedicated Trade Finance Program in 2013 to provide critical liquidity and risk mitigation support to financial institutions in Africa for the benefit of SME and local corporate importers and exporters.”
He said over the last decade, the Bank Group has supported more than 120 financial institutions in 30 African countries and catalyzed over $10 billion of trade.
FSDH Managing Director/CEO Bukola Smith, who signed for her side, thanked the Bank for providing the facility. She said women-owned businesses would be given priority when funds are disbursed.
She added: “We have been looking forward to receiving this financing. Just like we did with the first facility we received from the African Development Bank, we promise that this one will be well utilized because it will help us grow our business and meet the needs of our clients, including women-owned enterprises.”
The African Development Bank extended a $50 million Trade Finance Line of Credit to FSDH in 2016, which supported 60 beneficiaries for over 370 trade transactions valued at $375 million in terms of volume traded in critical sectors, including energy, agri-business and health, and boosted intra-African trade.
The Bank estimates Africa’s annual trade finance at $81 billion, and the World Trade Organization and IFC estimate the annual gap in Nigeria at $7 billion. SMEs and other domestic firms are grappling with a lack of access to trade finance.
The African Development Bank’s active portfolio in Nigeria comprises 48 operations valued at $4.4 billion. It covers 24 public sector projects amounting to $2.5 billion and 24 private sector operations valued at $1.9 billion.
Furthermore, the ETI credit, said to be the first of its kind to a sub-Saharan African financial institution, is to back Ecobank Group’s sustainability and climate strategy and also includes a climate action plan.
The duo of Proparco, which also is the lead arranger of the facility, and the German consulting firm IPC will offer advisory support to ETI’s teams to actualise the targets, according to a statement by ETI.
“Over the years, Proparco and Ecobank Group have continuously reinforced their partnership through Proparco’s provision of numerous loans, bond subscriptions and risk-sharing facilities including for trade finance to ETI and its subsidiaries, aimed at providing access to finance for underserved segments,” the document stated.
A similar move in June 2021 saw ETI raise Tier 2 sustainability notes valued at $350 million, with June 2031 set as the maturity date of the bond.
ETI said its commitment to tackle the sustainability challenges faced by the organisation involves crafting a climate disclosure report to provide information on its green lending, vulnerability to physical climate risks as well and its exposure to carbon-intensive sectors.
That also entails developing a climate strategy that incorporates sustainable finance targets, first-sector decarbonisation strategies for the most carbon-intensive sectors, an exclusion policy covering thermal coal mines and coal-fired plants and GHG emissions reduction targets for operational and financed emissions.
“Sustainability is integral to Ecobank’s mandate and pan-African purpose,” said Jeremy Awori, chief executive officer of the Ecobank Group.
“The signature of this sustainability-linked loan agreement is another confirmation of the seriousness which the Ecobank Group accords to sustainability, which for us is both a responsibility as well as an opportunity.”
Polaris Bank pledges support for infrastructure development, others in Ogun, Nigeria
Nigerian Tribune
Polaris Bank has pledged to support the development of high-impact sectors, including road infrastructure, housing, education, healthcare and agro processing in Ogun State.
Managing Director/CEO of Polaris Bank, Mr Adekunle Sonola, stated this while speaking with journalists after he led the bank’s management team on a courtesy visit to the Ogun State governor, Prince Dapo Abiodun, in his office at Oke-Mosan, Abeokuta, on Wednesday.
Recognising the notable achievements of the state administration in infrastructure, education and agro-processing, Mr Sonola emphasised Polaris Bank’s willingness to provide support, particularly in financing, to expedite socio-economic development. The meeting focused on various collaborative opportunities in infrastructure, housing, healthcare, education, and agriculture, showcasing the bank’s commitment to complement the government’s efforts in delivering services to the Ogun State people.
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Expressing readiness to offer counterpart funding support, Mr Sonola highlighted Polaris Bank’s innovative products, such as the e-hospital platform deployed in 11 states, enhancing revenue collection through technology.
Describing Ogun State as one of Nigeria’s most progressive states with robust infrastructure, he commended the state’s conducive business environment.
“Governor Abiodun is running one of the most progressive states in the country with a lot of laudable objectives and achievements in the last four years. As bankers to the community, we are here to show our support and to also see for ourselves the achievements on ground, as well as offer our services for the progress and development of the state,” he stated.
The Polaris Bank CEO noted that the management identified opportunities and areas of collaboration with the Ogun State Government, assuring that in a few months, the people would begin to see the delivery of the projects agreed on at the meeting,
He stated that the meeting with Governor Abiodun centered on a wide range of areas, including infrastructure, housing delivery, healthcare improvement programmes, education, agriculture and other sectors that the bank could be of assistance, as well as the complementary relationship to deliver services to the people.
He said further that Polaris Bank has a long-term presence in the state, including having one of the vibrant and modern bank branches in the state capital, and affirmed that the people of the state would continue to enjoy robust personal banking experience at all times.
Sonola called on investors to take advantage of the enormous potential and the conducive business environment provided by the state government to open their businesses in the Gateway State.
Polaris Bank was adjudged Digital Bank of the Year in 2021 and 2022, 2023 by BusinessDay’s Banks and Other Financial Institutions (BAFI) Awards. And as a digital-forward Bank dedicated to forging a customer-focused future through innovative partnership that reshape both businesses and communities.
SEC seeks collaboration to enhance economic growth in Nigeria
Nigerian Tribune
The Securities and Exchange Commission (SEC) has called for collaboration between the government and market participants to enhance market growth and facilitate economic development.
The Director-General of SEC, Mr Lamido Yuguda, made the call while addressing journalists at the 2023 conference of the Capital Market Correspondents Association of Nigeria (CAMCAN) held in Lagos at the weekend.
Yuguda said synergy holds the potential of unleashing capital market prowess and paving the way for a prosperous future.
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According to him, achieving the objective necessitates an increased utilisation of market mechanisms and instruments to raise funds and stimulate economic advancement.
He pointed out that the commission would continue to introduce new ideas and policies that could support the development and regulation of a capital market that is dynamic, fair, transparent, and efficient to contribute to the nation’s economic development, noting that investors protection play a crucial role in the development and integrity of the capital market.
“Effectively harnessing the capital market for national. development entails a multi-faceted approach, these include deploying more infrastructure, fostering more public-private partnerships, establishing specialised entities like special purpose vehicles (SPVs), listing state-owned enterprises, issuing green bonds to support sustainable projects, and bolstering small and medium enterprises among others.
Yuguda, who was represented by the Executive Commissioner Operations, SEC, Mr Dayo Obisan, said by adopting these c approaches, government and market participants can create a dynamic capital market that attracts diverse investments, fuels economic growth and contributes significantly to national development goals.
He assured that the commission was poised to create an enabling environment and facilitate oversight and regulatory framework that would continue to deepen the market support development.
According to him, the revised capital market master plan underscored SEC’s commitment to deepening and. repositioning the financial market as a key driver of sustainable economic growth.
“The master plan which represents collective aspirations of the capital market community is focused on driving initiatives geared towards growing and deepening the market with the ultimate goal of accelerating the emergence of our dear country in the top 20 economies by the year 2025,” Yuguda said.
He, however, assured that the commission would remain committed to supporting efforts aimed at addressing the financial literacy and empowerment gap in society.
Also speaking at the event, the Deputy Director, SEC Lagos Zonal office, Mr John Briggs, urged the government to create infrastructure financing instruments that could facilitate servicing of obligations.
“We have encouraged a lot of infrastructure funds like sukuk, and green bonds and we are even talking about blue bonds to develop the market.
“The capital market has created the conducive environment to ensure a transparent and dynamic market which would continue to attract investment,” he said.
Earlier, the Chairman of CAMCAN, Mrs Chinyere Joel-Nwokeoma, said the yearly workshop was part of the association’s contributions to the development of the nation’s economy.
According to her, the forum had consistently served as an avenue for regulators, operators, and company executives to brainstorm on issues that affect the market and economy.
She said the theme of this year’s conference
‘Leveraging Capital Market in Financing The National Development Plan’ was predicated on the compelling need to properly execute the National Development Plan, with the capital market as the hub of medium- and long-term sources of finance.
“It’s no longer news that Nigeria, according to the World Bank, needs $3 trillion to close its infrastructure deficit with funding requirements estimated at between $100 billion and $150 billion annually in the next 10 years.
“The plan, introduced in 2021, aims to generate 21 million jobs and lift 35 million people out of poverty by 2025, thus setting the stage for achieving the government’s vision of lifting 100 million Nigerians out of poverty in 10 years.
“All these projections can only achieved, and challenges solved, through proper utilisation of the capital market by creating new asset classes and portfolio diversification. All hands must be on deck to address these challenges to achieve economic growth and development.”
Funding gaps in micro, small and large businesses in Nigeria
Nigerian Tribune
IN Africa, apart from the known business challenges such as the decrepit infrastructure, inconsistent government policies, double taxation, increasing inflation, regulation irregularities and the COVID-19 pandemic consequences in recent times, overwhelmingly, the lack of capital or funding issues contribute mainly to business failures. According to the findings of several surveys, one of the top challenges faced by entrepreneurs and businesses in Africa today is access to funding. Without doubt, funding is the bloodline of any form of business. Therefore, whether it is a startup, nano, micro, small or medium-sized business, or an established large firm, knowing how to raise capital can often make the difference between business success and failure. In fact, funding is important at all business stages and cash which is most time refer to as “capital” in business terms mainly dictates the pace of performance in any business. Invariably, without funding or capital, it will be extremely difficult to get any enterprise off the ground. However, the structure that exists in the business significantly affects the access to the choice of fund options.
Every business has a different structure and needs. It is, therefore, imperative to state that no financial solution is one size fits all: funding options usually require different rules and steps. Consequently, businesses will be required to carefully plan, research, learn and understand the necessary funding option in order to come up with the right decision. So, the big question for businesses is, what are the ways to adequately raise capital for seamless operations? And this is the focus of this piece. Capital comes into any business particularly in two ways: as equity or as debt. However, donations, grants, incentives, interventions, or subsidies can also be employed in certain aspects of a business to encourage activities in particular industries or sectors by government. Just like other forms of capital raising options, these grants and subsidies can be initiated for either short-term or long-term purposes. That said, equity capital involves exchanging a portion of the ownership of the business for financial investment in the business, most times it involves selling shares of the company in exchange for funding.
The ownership stake resulting from this equity investment allows the investor to share in the company’s profits. Equity capital is usually a cheap form of funding and is an important source of capital on a long-term basis. However, sometimes, it involves going public, getting listed on an Exchange, and also giving up partial or major control of the business. On the other hand, debt capital is when a business borrows fund from individuals or institutions and agrees to pay them back later. Debt capital simply means loans and borrowings. The main consideration in debt capital is the ability of the business to generate sufficient returns to service the debt (interest and capital repayment). A typical mode of raising debt capital is through bank loans. Banking institutions provide loans to individuals or businesses who approach them with a solid business plan, and good business structure with capacity for repayment. Bond is equally a debt instrument, and a way of raising debt capital as well. Without doubts, it belongs to debt capital categorisation because the authorised issuer (business) owes the bondholder debt and it depends on the terms of the bond issuance.
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The most significant difference between equity and debt is that, unlike debt, equity capital does not require an amortization schedule for repayment. More so equity capital involves the investor taking an ownership position in the business. Significantly, there are several sources to consider when seeking business funding or any financing, some of it are expressed here. The easiest and starting point for small businesses from context observation is usually with self-funding and personal investment, where entrepreneurs leverage their financial resources to support business operations. Self-funding can extend to family, associates and friends for capital, otherwise referred to as bootstrapping. Both self-funding and bootstrapping lets business managers, operators, and entrepreneurs leverage their financial resources to support the business operations. Further to this is angel investment, where investors who are generally wealthy individuals or retired business executives invest directly in a business or startups owned by others. These angel investors are often leaders in their field who not only contribute their experience and network of contacts but also their technical and/or management knowledge. Most times this form of capital raising is in exchange for equity ownership in the business and an active management role.
Also, trade credit is another significant form of capital raising option where business suppliers are willing to transact or sell on credit. Such credit may range anywhere from one month to three months or as agreed. This is a very good method for businesses to fulfill short-term funding needs. It is an inexpensive method of funding for any business, I must say. Further to this is private equity investment, where private equity firms raise equity capital that is not listed on any Stock Exchange for investment purposes. Invariably, these firms raise funds from investors and then invest these funds in promising startups and businesses that require capital. The drawback of thisfunding option is that a controlling position or substantial minority position in the business is usually acquired and then look to maximize the value of their investment. Thus, the entrepreneur might not have sole control over the business decisions, which may lead to conflict.
Looking at another capital raising option is retained earnings as a way of raising finance, it simply means businesses can reinvest any set-aside profits for business operations for expansion, equipment purchase, and development purposes.
The key information from this piece is that there are many business funding options available for businesses. Therefore, business owners, managers and entrepreneurs do not have to get discouraged if one does not work out, other options can easily be explored. To find the right fit, in-depth research and adequate due diligence are imperative, having in mind these following questions-how much is really required for the business? When is it required? How long will it take to raise the funds? What are the specific requirements to access the fund? What will the fund be used for? What are the associated risk with the fund type? From whom is best to raise the fund? How expensive is the fund? How and when is repayment? Is the business actually fundable or bankable? Because some fund option may be a perfect fit for a business situation, while others may be completely impractical, therefore due diligence is absolutely required.
Aside from every business having unique funding needs, each funding option also differ in availability, terms, funding amount option, and eligibility criteria. Therefore, each fund option needs detailed attention ahead of time.Whether a business opts for a bank loan, an angel investment, or a government grant,note that each of these sources of financing has specific advantages and disadvantages. Good luck!
Dr. Olubiyi is an entrepreneurship and business management expert
WHO ‘very worried’ about spread of mpox in DRC
LONDON, Dec 8 (Reuters) – The World Health Organization is “very worried” about the spread of a severe form of mpox that has killed nearly 600 people, mainly children, in the Democratic Republic of Congo this year, a senior official said.
The country has reported over 13,000 cases in 2023, more than twice as many as during the last peak in 2020, with the disease occurring in almost every province. The WHO is working with the authorities on the response and a risk assessment.
On Thursday, the U.S. Centers for Disease Control and Prevention (CDC) issued an alert about the dangerous clade I mpox outbreak.
“The virus variant is known to be more virulent. If it adapts better to human to human transmission, that presents a risk,” Rosamund Lewis, WHO’s mpox lead, told Reuters by phone from Kinshasa.
Mpox is a viral infection that spreads through close contact, causing flu-like symptoms and pus-filled lesions. Most cases are mild but it can kill.
Last year, a less severe form – clade II – began to spread globally, largely through sexual contact among men who have sex with men, and the WHO declared a public health emergency.
New evidence that clade I can also spread through sexual contact is concerning, Lewis said. Mpox can also spread to humans from infected animals or among family members within households, she said. Children and people with weak immune systems are more at risk, with illness leading to death in up to 10% of clade I cases.
“We have very little information of who is dying of mpox [in DRC] other than age,” said Lewis, adding more data was needed.
The WHO is also worried about an outbreak among sex workers in South Kivu, because of the vulnerability of the population as well as the risk of the infection spreading to neighbouring countries, she said.
The agency is working with the Congo government to resolve regulatory hurdles to enable the country to procure or accept donations of mpox vaccines, currently only available in the country in ongoing clinical studies. There is also a mpox antiviral treatment trial underway.
DRC has not requested any treatments, Lewis said. Getting the vaccine is more complex, she added, because only one region of the WHO has a supply agreement in place. Any donations would also need funding for deployment.
South Africa’s current account deficit narrows sharply in third quarter
Reuters News
South Africa’s current account deficit narrowed sharply in the third quarter of 2023, to 0.3% of gross domestic product (GDP) from a revised 2.7% in the second quarter, central bank data showed on Thursday.
In rand terms, the current account recorded a deficit of 19.3 billion rand ($1.02 billion) for the July-September period from a revised 185.2 billion rand deficit in April-June.
Analysts polled by Reuters had forecast a deficit of 111.2 billion rand or 1.9% of GDP in the third quarter.
The trade surplus grew to 189.1 billion rand in the third quarter compared to 22.2 billion rand in the second quarter.
“The value of merchandise imports decreased more than that of goods exports,” the South African Reserve Bank said in a statement accompanying the data.
On Tuesday, the statistics agency released third-quarter GDP figures which showed a slight rise in exports although overall output contracted. The rise in exports was driven by vehicles, precious metals and vegetable products among other things, the GDP data showed. ($1 = 18.9450 rand)
South Africa’s net foreign reserves rise to $56.319bln in Nov
Reuters News
South Africa’s net foreign reserves rose to $56.319 billion at the end of November from $55.510 billion in October, central bank data showed on Thursday.
Gross reserves increased to $61.721 billion in November from $60.962 billion in October. The forward position, which represents the central bank’s unsettled or swap transactions, was unchanged at $0.508 billion from $0.508 billion.
Nigerian FG seeks collaboration to tackle unemployment, others
Nigerian Tribune
Federal Government has said that the current economic contractions and realities pose a lot of challenges for government to achieve developmental agenda and called on support of volunteers across the country to address the challenges of unemployment, poverty, food insecurity among others.
Secretary to the Government of the Federation, Senator George Akume, made the call on Tuesday in Abuja at an event marking the 2023 International Volunteer Day (IVD).
Every 5th day of December of every year is observed as the International Volunteer Day which was mandated by the United Nations General Assembly (UNGA) Resolution 40/212 of 17th December, 1985.
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The IVD offers opportunity for UN member Nations to promote volunteerism, encourage Government to support volunteer efforts and recognize volunteer contributions to the achievement of the Sustainable Development Goals (SDGs) at Local, National and International Levels.
It also provides an avenue for Volunteer Involving Organisations (VIOs) and individual Volunteers to showcase their trade and contributions to socio-economic development of the country.
Akume who was represented by the Permanent Secretary, Political & Economic Affairs Office, Esuabana Nko-Asanye, at the ceremony, said the inclusiveness of action of passionate volunteers, if well-coordinated could bring a lot of positive change in employment, reduction of crime, poverty reduction, food security, protection of lives and properties, healthy living and increase the rate of literacy.
He added this could also help in improving sanitation and present opportunities to promote volunteerism as a critical development tool capable of complementing national development efforts.
SGF said: “The present Government has recognized volunteerism as a veritable force to facilitate socio-economic development. It is widely seen as a development tool critical for the advancement of society, especially the rural communities.
“The present economic contractions and realities pose a lot of challenges for government to achieve their developmental agenda. Interestingly, inclusiveness, being the key word in this year’s IVD theme, is also a major component of the development agenda of the government,” Akume added.
He, therefore, enjoined the Non- Governmental Organisations (NGOs), Groups and individual volunteers to work collectively and collaborate with the Government to achieve feats in the development space.
“The socio-economic and political challenges characterized by poverty, food insecurity, inequality, gender discrimination, crime, youth restiveness, unemployment, among others, in the present situations, call for inclusiveness of efforts to find and proffer common solutions,” he said.
He recalled that to harness the potential and resources of volunteers for development, the Federal Government established Nigerian National Volunteer Service (NNVS) Office in 2003 as a volunteer management Institution saddled with the responsibility of promoting, encouraging, harnessing, coordinating and effectively deploying the Volunteer Services of Nigerians to complement national development strategies.
SGF added the Federal Government has further demonstrated its commitment to strengthening volunteerism as an essential tool through the development and approval of the National Policy on Inclusive Volunteerism in 2020.
“This policy is mainly to guide and provide direction for the effective management and coordination of volunteerism for development,” he said.
Earlier, Director, Nigerian National Volunteer Service (NNVS), Simon Bariye Stephen, said volunteerism is one of the strategies adopted by various nations to fast-track development, especially in rural communities, saying it is also counted as one of the modalities for theimplementation of Sustainable Development Goals (SDGs) across the countries of the World under the principle of “Leaving no one behind”.