admin – The Commerce Africa https://thecommerceafrica.com African Reneissance Thu, 11 Mar 2021 07:05:20 +0000 en-US hourly 1 https://wordpress.org/?v=5.9 NSE Upgrades to Public Company https://thecommerceafrica.com/nse-upgrades-to-public-company/ https://thecommerceafrica.com/nse-upgrades-to-public-company/#respond Thu, 11 Mar 2021 07:05:18 +0000 http://thecommerceafrica.com/?p=3425 In search for operational efficiency and profitability, the Nigerian Stock Exchange (NSE) has been upgraded from a member-owned company to a public limited liability company.

This development followed the final approvals from Nigeria’s Securities and Exchange Commission (SEC) Corporate Affairs Commission (CAC)  to convert from a mutual to a public limited liability company, paving the way for its public listing and trading of its shares.

With the new corporate structure, the Nigerian Exchange Group Plc (‘NGX Group’) will have three operating subsidiaries, namely: Nigerian Exchange Limited (NGX Limited), the operating exchange; NGX Regulation Limited (NGX REGCO), the independent regulation company; and NGX Real Estate Limited (NGX RELCO), the real estate company.

President, Nigerian Stock Exchange (NSE), Otunba Abimbola Ogunbanjo said: “We are elated that this milestone has been achieved as we celebrate the 60th anniversary of the commencement of trading at the Exchange and now look forward to the future public listing of its shares on NGX Limited. On behalf of the NSE, I would like to warmly thank all those that have worked assiduously to achieve this watershed event on our journey to make the NSE a multifaceted exchange that extends across various markets and geographical regions.”

The approvals by the SEC and CAC imply that the NSE can now activate its transition plan to a new operational structure and holding company. The extensive transition plan, taking the Group and its subsidiaries through to full operational launch, covers legal and practical changes to enable the functioning of the new corporate structure, with no loss of service and a seamless transition for market participants.

The transition plan will also see the inauguration of Boards for each of the new entities, staff reallocation to their respective functions within the operating subsidiaries, operationalisation of business plans and budgets, technology systems transfer, and the requisite arm’s length agreements between the entities. Upon Operational Launch, the Group’s new brands, including a new website, will be unveiled and the Group will be in position to execute on its strategic vision. Stakeholders, including our new valued shareholders will benefit from The Group’s enhanced Corporate Governance framework, access to capital to fund strategic developments and a more globally competitive Exchange.

The approvals also enable the shares of NGX Group Plc, which have been registered with the SEC, to be allotted to the membership pursuant to the Court approved Scheme of Arrangement. Ahead of its listing on NGX Limited, the shares of NGX Group Plc will be available for bilateral trades to be executed in line with extant rules and regulations of the Nigerian capital market. Otunba Ogunbanjo will serve as the inaugural Chairman of NGX Group Plc’s Board of Directors.

Chief Executive Officer, Nigerian Stock Exchange (NSE), Oscar Onyema said the Nigerian capital markets should play a role commensurate with Nigeria’s status as Africa’s largest economy.

“At the Nigerian Stock Exchange, we have a vision that the new group will become the premier exchange hub for Nigerian businesses and for the African economy. We are implementing a series of measures towards this goal, demutualisation being a critical milestone. The completion of demutualisation is a truly significant moment, and we welcome the new possibilities that have opened up for us today,” Onyema said.

Demutualisation of the NSE is pivotal in that it creates new strategic opportunities that will enable the Group realise its vision of becoming Africa’s leading capital market infrastructure provider.  The creation of a holding company and a new capital structure will also enable NGX Group Plc to form new dynamic relationships, drive strategic partnerships and gain capital raising flexibility. It will be recalled that NSE members approved at its last AGM, the listing by introduction of NGX Group Plc on NGX Limited.

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Brent Crude Oil Price Rises Above $70 Per Barrel https://thecommerceafrica.com/brent-crude-oil-price-rises-above-70-per-barrel/ https://thecommerceafrica.com/brent-crude-oil-price-rises-above-70-per-barrel/#respond Mon, 08 Mar 2021 09:38:26 +0000 http://thecommerceafrica.com/?p=3409 Brent crude futures rose above the $70 per barrel level on Monday for the first time since January 2020, following reports of attacks on oil facilities in eastern Saudi Arabia, including a Saudi Aramco facility at Ras Tanura vital to petroleum exports.

Oil prices were up for a fourth consecutive session after major oil producers decided to keep crude output unchanged in April, and OPEC leader Saudi Arabia said it would maintain its voluntary production cut of an additional 1 million bpd for another month.

Elsewhere, investors welcomed upbeat data showing China’s crude shipments in the first two months of 2021 were up 4.1% year-on-year, as well as the approval of a $1.9 trillion stimulus bill by the US Senate over the weekend.

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Council Approves 96 Industrial Standards for Nigeria https://thecommerceafrica.com/council-approves-96-industrial-standards-for-nigeria/ https://thecommerceafrica.com/council-approves-96-industrial-standards-for-nigeria/#respond Fri, 05 Mar 2021 09:53:40 +0000 http://thecommerceafrica.com/?p=3399 The Standards Organisation of Nigeria (SON) Governing Council has approved ninety-six (96) new Nigerian Industrial Standards for national use which cut across Chemical Technology, Electrical/Electronics, Food/Agriculture, Textile/Leather and Services.

The approval which was given at the first meeting of the Council following the appointment of Mallam Farouk Salim as the Director General brought the total number of Standards approved by SON Governing Council to 264 in year 2020 following the earlier approval of 168 Standards.

Chairman of the Council, Dr. Nasir Sani-Gwarzo commended the new SON helmsman for being able to convene the Council meeting few months after his appointment in spite of the challenges of the health pandemic and other socio-economic events. He stated that the newly approved standards were significant given the scope of their coverage.

He enumerated the approved standards to include those that are essential for the production of medical and other supplies required for the management of the Covid-19 pandemic such as syringes, face barriers, alcohol based hand sanitizer, medical electrical equipment, Health and Safety Measures for Tourism and Hospitality Establishments – Post Pandemic (Covid-19) Resumption amongst many others.

According to him others of great economic, regulatory and industrial importance include standards for agricultural, petroleum and automobile gas products, electrical/electronic standards for smart energy meters and renewable energy, all of which support the Federal Government policies, strategic priorities and plans.

Represented by Dr. Halilu Hamma, the Chairman formally congratulated Mallam Salim on his appointment and assured him of the full support of the Council members via a harmonious working relationship based on mutual trust and respect in order to significantly improve the organisation’s efficiency and effectiveness in delivering on its mandate to Nigerians.

Dr. Sani-Gwarzo assured the new SON Chief Executive of access to a rich and diverse knowledge, expertise and experience in the Council to support his aspiration of making SON a high impact organisation in support of the Nation’s socio-economic growth and development.

Addressing the Council earlier, Mallam Farouk Salim expressed appreciation to President Buhari for giving him the opportunity to further contribute to National development through SON, stressing that he looked forward to tapping from the rich expertise and experience of the Council members in the areas of providing necessary approvals for policies to make the organisation more efficient and effective in touching the lives of Nigerians. 

He expressed concern about the lack of a befitting Corporate Headquarters for the organisation, conducive working environment for the staff nationwide to enable them deliver efficient services, need to be properly positioned to tackle the influx of substandard products into the country, faking and adulteration amongst others and sought the Council’s support to tackle them.

Mallam Farouk informed the Council that a Committee of distinguished Nigerians appointed to help review SON Management practices and procedures and make recommendations for far reaching reforms to strengthen the system has submitted its interim report.

He acknowledged the availability of highly trained, knowledgeable and smart personnel in the organisation and sought the Council’s support in putting them to optimal use. Salim informed the Council stated that the outstanding promotion examination for all categories of staff had been conducted and that the results would be presented to the Council at its next meeting. 

The Director General commended all staff involved in coordinating the development of the newly approved standards as well as the sectoral stakeholders who participated actively in the process.

He urged the Stakeholders to be actively involved in the advocacy of the standards as well as the voluntary uptake by all relevant users   in the overall interest of the Nation, particularly in view of the implementation of the African Continental Free Trade Area Agreement.

Mallam Salim reiterated his commitment to making SON a better and more impactful organisation in Nigeria as well as in regional, continental and international standardisation activities.

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Firm to Buy $360mn Gold Assets in Africa https://thecommerceafrica.com/firm-to-buy-360mn-gold-assets-in-africa/ https://thecommerceafrica.com/firm-to-buy-360mn-gold-assets-in-africa/#respond Thu, 04 Mar 2021 16:16:52 +0000 http://thecommerceafrica.com/?p=3397 African Gold Acquisition Corp, a Special Purpose Acquisition Company, has mobilized a total of $360 million as part of an IPO on the New York Stock Exchange.

The company will use the resources to buy gold assets in Africa. It is the first SPAC focused on African mining assets. Rob Hersov, Founder and Chairman of African Gold Acquisition Corp, and heir to a family of miners in South Africa, initially sought $300 million.

The higher mobilization shows the appetite of investors not only for SPACs but also for entities that are in sectors that seem secure.

“We believe there is a strong probability that record levels of global debt will suppress global growth. It could become increasingly difficult for governments to finance this deficit and this would force them to turn to monetization (central bank debt buybacks), which will heighten concerns about government debt. We believe that these potential trends would be positive for gold prices,” the company said.

Actors of the international gold sector believe that the uncertainties of the current recovery, as well as low-interest rates on government bonds and rising inflation, are factors that will once again make gold attractive.

Rob Hersov’s project also finds further relevance in the fact that gold, whether in US dollars, South African rand, or Ghana cedi, posted a return of more than 28% in 2020.

In any case, African Gold Acquisition Corp has provided an opportunity to achieve what political differences have not allowed in Ghana. The Agyapa project aimed to establish a special investment structure, whose business model is to rely on the value of the country’s gold assets to mobilize financial resources permanently.

It was strongly criticized by the civil society and the opposition. Now, African Gold Acquisition Corp could afford Ghanaian assets using the same model.

(Ecofin Agency)

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UN to Raise $266mn for Feeding African Refugees https://thecommerceafrica.com/un-to-raise-266mn-for-feeding-african-refugees/ https://thecommerceafrica.com/un-to-raise-266mn-for-feeding-african-refugees/#respond Thu, 04 Mar 2021 13:33:40 +0000 http://thecommerceafrica.com/?p=3395 The UN High Commissioner for Refugees (UNHCR) and the World Food Program (WFP) launched a joint tender to raise $266 million to provide food aid to refugees in East Africa.

In a statement, the United Nations said the initiative aims to increase the food rations granted to more than 3 million people in East Africa.

As a reminder, due to insufficient resources to meet refugee needs, the UN agencies were recently forced to reduce food rations by about 60%. The measure affected all 11 countries covered by UNHCR but mainly Kenya (40%), Tanzania (32%), Uganda (40%), Ethiopia, Southern Sudan, and Djibouti. In addition to the reduction in food rations, refugees have also suffered the consequences of the Covid-19 pandemic.

According to the Director of the UNHCR Regional Office for the East, Horn of Africa, and the Great Lakes, Clementine Nkweta-Salami, the pandemic was disastrous for everyone, but more so for refugees. The lockdown measures and other restrictions put in place to contain the spread of the virus have had consequences such as the reduction of food stocks and the closure of supply markets with many people losing their jobs.

Nkweta-Salami said if more funds are not made available, thousands of refugees, including children, will not have enough to eat. The funds will enable the WFP, but also the UNHCR to provide the food and financial assistance needed by the refugees in the camps. The main objective, according to the WFP, is to restore at least a minimal level of assistance to refugees, many of whom have lost the source of income that was remittances from their relatives, due to the global impact of the pandemic.

The armed conflicts, crackdowns, and various war crimes that forced refugees to flee are still ongoing in East Africa. Somalia, for example, is still torn by the violence that pushes many civilians to flee.

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Oil Trades $63 Amid Hopes for Improving Demand https://thecommerceafrica.com/oil-trades-63-amid-hopes-for-improving-demand/ https://thecommerceafrica.com/oil-trades-63-amid-hopes-for-improving-demand/#respond Wed, 03 Mar 2021 07:58:47 +0000 http://thecommerceafrica.com/?p=3393 Oil prices rose on Wednesday, amid hopes for improving global demand after President Joe Biden said that America will have enough COVID-19 vaccine doses by the end of May, two months earlier than the target.

The leader also mentioned that drugmaker Merck will help produce rival Johnson & Johnson’s newly approved one-shot vaccine.

Traders paid little to no attention to the API data showing a massive build in US crude inventories last week. Market participants now look towards weekly inventory data from the US EIA later in the day. Investors also await the result of the upcoming OPEC+ meeting.

The market widely expects the group to ease output cuts by about 1.5 million barrels per day, with Saudi Arabia ending its voluntary production cut of 1 million barrels per day, according to Reuters.

At around 07:15 AM GMT, WTI crude gained 0.5% to $60.04 a barrel, while Brent oil rose 0.6% to $63.06 a barrel.

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FG Approves Establishment of SIM Swap Centres Across LGAs https://thecommerceafrica.com/fg-approves-establishment-of-sim-swap-centres-across-lgas/ https://thecommerceafrica.com/fg-approves-establishment-of-sim-swap-centres-across-lgas/#respond Wed, 03 Mar 2021 07:43:46 +0000 http://thecommerceafrica.com/?p=3391 The Federal Government has approved for the Mobile Network Operators (MNOs) to establish dedicated SIM Swap Centres across the Local Government Areas (LGAs) in Nigeria

The approval was given at the meeting of the Ministerial Task Force on the NIN-SIM registration held February 26, 2021 and chaired by the Minister of Communications and Digital Economy, Dr Isa Ali Ibrahim Pantami.

A statement from the Ministry on Wednesday said an approval was also given for the extension of the tenure of NIN Enrolment Agent Licenses for MNOs from 1 to 5 years in consideration of their satisfactory performance, subject to continuous monitoring. This is a deliberate effort of the Federal Government to simplify the enrolment process for Nigerians and legal residents;

The statement read further:

“The Technical Committee was mandated to complete the development of a new SIM issuance strategy that cannot be compromised. This will ensure that there is no repeat of the past process that was compromised through pre-registration by some agents; and

“A Multi-Sectoral Adhoc Committee was tasked to immediately complete the review of the processes for new SIM activations for legal residents staying in Nigeria for less than 24 months. The membership of the Committee was drawn from NCC, NIMC, Nigeria Immigration Service and the Association of Licensed Telecoms Operators of Nigeria (ALTON).

“Furthermore, MNOs that already have Service Centres in important and critical locations in LGAs, are expected to upgrade these Centres to a level where they can qualify as SIM Swap Centres in order to reduce the challenges associated with the SIM Swap/Replacement process for the citizens. The purpose is to bring SIM Swap Centres closer to Nigerians regardless of their location.

“The Minister also tasked the Nigerian Communications Commission (NCC), working with the National Identity Management Commission (NIMC) and MNOs, to come up with a framework for the establishment of SIM Swap/Replacement Centres in each of the 774 LGAs in the country, beginning with critical and feasible locations.

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Africa Attracts $895mn in Equity Investment Two Months https://thecommerceafrica.com/africa-attracts-895mn-in-equity-investment-two-months/ https://thecommerceafrica.com/africa-attracts-895mn-in-equity-investment-two-months/#respond Tue, 02 Mar 2021 08:11:31 +0000 http://thecommerceafrica.com/?p=3389 Since January 2021, Africa has mobilized a total of $895 million in private equity investment, we learned. The largest PE transaction was carried out by SPE Capital Partners for its first fund targeting Africa and the Middle East. The company raised $258 million for an initial target of $200 million.

“This is an important milestone for our young company. We are grateful for the strong vote of confidence from our investors, whose unwavering support has been invaluable. The challenging environment in which we currently find ourselves underscores the importance of investing in resilient sectors and high-quality businesses,” said Nabil Triki, Managing Partner and CEO of SPE Capital, upon closing of the transaction.

Africa Finance Corporation (AFC) comes second with $250 million raised from the Development Finance Corporation (DFC), the U.S. government agency responsible for international development finance.

“This financing will ensure that we continue to pursue our objectives in the aftermath of the covid-19 pandemic which placed greater responsibility on development finance institutions in their strategy to support sustainable economic recovery across Africa,” said Samaila Zubairu, President and Director of AFC.

Even the smallest mobilization of financial resources is essential for Africa; a continent where accessing capital and financial markets is a headache. The large size of the informal sector on the continent has made it difficult to evaluate accurately the economic and financial impact of the pandemic on businesses.

Beyond the mobilization of these resources, other challenges will be to find investment opportunities as many sectors on the continent need resources.

(Ecofin Agency)

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NNPC Says No Increase in Fuel Price in March https://thecommerceafrica.com/nnpc-says-no-increase-in-fuel-price-in-march/ https://thecommerceafrica.com/nnpc-says-no-increase-in-fuel-price-in-march/#respond Mon, 01 Mar 2021 09:02:16 +0000 http://thecommerceafrica.com/?p=3387 Contrary to speculations of imminent increase in the price of Premium Motor Spirit (petrol) in the country, the Nigerian National Petroleum Corporation (NNPC) has ruled out any increment in the ex-depot price of petrol in March, 2021.

A press release by the Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, stated that the Corporation was not contemplating any raise in the price of petrol in March in order not to jeopardize ongoing engagements with organized labour and other stakeholders on an acceptable framework that will not expose the ordinary Nigerian to any hardship.

NNPC also cautioned petroleum products marketers not to engage in arbitrary price increase or hoarding of petrol in order not to create artificial scarcity and unnecessary hardship for Nigerians.

The Corporation stated that it has enough stock of petrol to keep the nation well supplied for over 40 days and urged motorists to avoid panic buying.

It further called on relevant regulatory authorities to step up monitoring of the activities of marketers with a view to sanctioning those involved in products hoarding or arbitrary increase of pump price.

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GTBANK Forecasts Increase in Interest Rates as FG Continues Borrowing https://thecommerceafrica.com/gtbank-forecasts-increase-in-interest-rates-as-fg-continues-borrowing/ https://thecommerceafrica.com/gtbank-forecasts-increase-in-interest-rates-as-fg-continues-borrowing/#respond Mon, 01 Mar 2021 08:07:53 +0000 http://thecommerceafrica.com/?p=3384 Guaranty Trust Bank Plc said interest rates for lending would continue to increase in 2021 amid increase in the Federal Government’s debt profile.

The Bank made the disclosure in a report titled ‘Nigeria and Banking Sector Themes for 2021’ released on Monday.

According to the report, experts expect the CBN to sustain its policy stance going into 2021 driven largely by the need to improve credit
flow to spur economic growth.

The report noted that: “the additional borrowings by the government as well as relatively lower OMO maturities into the system may result in a further increase in interest rates but not expected to be significantly higher than present levels.”

The report read further:

“We note the impact of the second wave of
the pandemic but also do not foresee widespread lockdowns as was with the first wave as effective vaccines are being rolled out and medical practitioners have a better understanding of the virus.

“A huge positive for the industry was the massive customer migration to digital platforms as a result of movement restrictions imposed by the government which drove better-than-expected fees from digital channels.

“In addition, the revaluation gains on the back of significant naira devaluation are expected to drive further improvement in non-interest revenue for
Banks.

“On the cost side, the work-from-home (WFH) policy afforded most firms the rare opportunity of re-evaluating their cost profile and make amends where necessary.

“We expect OPEX to remain contained in 2021, with travel expenses and other operational costs expected to remain lower relative to 2019 levels.”

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