Instinct Business - Issue 5 | 2015 by Instinct Wave

Contents

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28.

Cover Story

Insurance Is A Marathon, It is Not A Race

32.

19.

Ghana Trades Domestic Cocoa Processing for Foreign Exchange

South Africa’s Hollard Insurance Buys 51% Stake In MET Insurance Ghana

29. Nigeria’s Pension Investments in Equities Drop Below 10%

12.

22. 18. 29.

24.

38.

Zimbabwe’s Gross Domestic Product To Expand By 3,2 %World Bank

PUBLISHER’S THOUGHT

Bringing Capital To African Agriculture

based Ecobank has proven popular for its

simpliﬁed language and procedures, which

Africa's smallholder farmers are the people

are more accessible to a wider range of

that feed us, but often struggle to feed

customers than global banks.

themselves. They are the people most

Akin Naphtal Group Executive Publisher

report says, investing in agriculture now could help lift tens of millions of people out of poverty by 2024,

connected to our land and animals, but can

Standard Bank, which has operations in

lack the resources to make them thrive. They

nearly 70 countries worldwide, has also

have been ignored by our leaders for too long,

reviewed processes to suit the kinds of

but one prevailing truth is that Africa doesn't

ﬁnancial information more commonly

just have the potential to feed itself – it has the

found in the informal and small-scale

potential to help feed the world.

sector. It has also broadened its range of

There is a respite however as after years of

services to include technical expertise for

neglect, banks, private equity funds and

lendees. The combination of lending and

microﬁnance institutions are bringing capital

advisory services is critical, helping the bank protect its portfolio, and helping

to African agriculture

customers gain credit and repayment track

especially in Africa.

The agriculture sector which has struggled to

In 2003, at the African Union (AU) summit in

growth is on a daily basis seeing hope to lift it

Also, equit y ﬁnancing provides an

M a p u to, Af r i c a n l e a d e r s m a d e b o l d

to the second level.. In part, a perceived

interesting – and fast-growing – source of

commitments to support agriculture:

combination of high risk and modest returns

capital. According to the Emerging Markets

pledging to allocate at least 10% of national

– as well as the costs of extending traditional

Private Equity Association, total private

budgets to agriculture, to adopt sound

banking infrastructures in rural areas – has

equity capital raised for sub-Saharan Africa

agricultural development policies and to

deterred many banks and ﬁnancial

in 2012 was $1.4bn. Agribusiness is proving

institutions.

one of the primary draws. The Carlyle

But solutions are emerging at last, as banks,

equity ﬁrms, made its ﬁrst Africa play late

records.

access the ﬁnancing it needs for sustained

achieve at least 6% agricultural growth. It is a path that we must tread.

Group, one of the world's largest private

The call to change the phase and growth of

NGOs, micro-lenders, governments and

2013, as part of a consortium that included

agricultural process and structure in Africa

investment funds make inroads into the

Pembani Remgro Infrastructure Fund and

did not just sound today. Several reports have

continent, bringing much-needed capital to

Standard Chartered Private Equity.

shown that the potential for agriculture to

bear.

drive inclusive economic growth, improve

For large banks, Africa's rural sector was long

Like any other project, there can be failures

food security, and create opportunities for

seen as a problem. Just 10 percent of Africans

in critical infrastructure such as inadequate

millions of Africans is enormous. More than

with only primary-level education – which is

cold storage facilities, unexpec ted

two-thirds of Africans depend on agriculture

the majority of those in rural agriculture –

disruptions in commodities trading, lack of

for their incomes. Research shows that, in

have a bank account, rising to 55 percent for

adequate feeder roads to production areas,

sub-Saharan Africa, growth in agriculture is

those with a post-secondary qualiﬁcation. But

inadequate dry storage facilities, and

11 times more eﬀective at reducing poverty

rather than writing oﬀ this population,

congested ports prohibiting the export or

than growth in other sectors.

forward-thinking banks have sought to ﬁnd

import of products on time, but the process

new vocabularies to speak to them. Togo-

is on.

Group Publisher Akin Naphtal Crea ve Oﬃcer Lawrence Otoo

Ac ng Group Editor Kehinde Olesin IT& Research Henry Gyedu

Associate Editor, Ghana Carol Opata

Contribu ng Editors Terry Washington

IT/Business Reporters Derrick N.A Tagoe Deborah Arthur NIG 3a, Shomoye Tejuosho Close, oﬀ Ogunmodede Street, Allen, Ikeja, Lagos Tel: +234 1 291 5803, Mob: +234 806 3603521, +234 8161342518

Crea ve Manager Isaac Agyeman-Duah

IT/Business Reporters Tope Ajayi

UK Unit 2, Anchor Bay Ind. Estate Manor Road, Erith, Kent, DA8 2QA Tel: +44 777 510 9698 info@instinctwave.com www.instinctwave.com

Social Media Execu ve Julius Ofori Boadu

GH 6, Motorway Extension, Dzorwulu, Accra, Ghana Tel: +233 302432849 Mob: +233 208 910 380

Fidelity Bank Ghana Launches “Export Bonus Account”

idelity Bank in a bid to promote made in Ghana goods and transform the economy to an expor t- driven one has introduced “export bonus account” , a product that will promote export trade in the country. The head of Export Desk at the

Corporate Banking Department of Fidelity Bank, Bright Evans Darko, said the motivation behind the product is to support government’s agenda to restructure Ghana’s economy to an export-led one. “The product comes with some rewards. There are both technical and ﬁnancial beneﬁts attached to the product. Mr. Darko further explained that customers with export

bonus accounts will receive a lot of technical support from the bank, which include o ffe r i n g t h e m a d v i c e o n choosing the right financial package for their nature of business, and helping them to negotiate export contracts and secure funds. “With the financial rewards, customers who have export bonus accounts will not pay cost on turnover (COT). They will also get free chequebooks, free statement of accounts, both hard copy and electronic; and Internet banking is also free”. “Then we come to the forex, which is the dollars they sell to us. Aside from the normal board rates we give everybody, an exporter can gain up to a hundred pips; meaning one percent extra on all FX sales to the bank. So it becomes sort of an extra income for customers’ gain,” he said. If it is getting the funds locally, Fidelity may charge 12% or 13%. But we can assist the exporter to get it from outside, which may come slightly cheaper than getting it locally. All this technical support and advice is done for free by Fidelity,” he added. He said access loan facilities have been arranged for exporters who may need some financial assistance during their course of business.We have working capital financing for exporters, we have invoice discounting or receivable financing under the product. All these come with the product. However, this is subject to the normal procedure of taking a loan from the bank,” He said.

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GTBank Partners Databank to boost Investment Drive in Ghana D a t a b a n k ’s ﬁve mutual funds, namely Databank E p a c k Investment Fund (Epack), Databank M o n e y Market Fund (MFund), Databank Balanced Fund (BFund), Databank Educational Investment F u n d (EdIFund) and Databank Ark F u n d (ArkFund).

nvestment ﬁrm, Databank Group and Guaranty Trust Bank have entered into a partnership agreement that will boost investment drive in Ghana

Existing Databank clients would be able to check their a c c o u n t balances and sign up for value-added services such as Databank Notiﬁcation Alert, Direct Debit and prepaid ATM cards.

The agreement will see Databank set up partner locations in selected GTBank branches across Ghana to oﬀer investment solutions and other related services. The six selected GT bank locations are the Airport, East Legon, Osu, Ashaiman, Cape Coast and Tamale branches.

Conveniently, clients could also top up their mutual fund investments at any GTBank branch nationwide. According to Databank Chief Executive Officer, Mr. Kojo AddaeMensah, this initiative is in line with Databank’s mission of helping its customers to achieve financial independence, through providing financial education and offering a d i ve r s e r a n g e o f i nve s t m e n t products and services.

The service would eventually be ro l l e d o u t a c ro s s a l l G T B a n k branches nationwide. This partnership, a ﬁrst of its kind between an independent bank and an investment ﬁrm, will see Databank setup representative desks in each partner location to enable clients to purchase any of

He further stated that, “at Databank, we are all very excited about this new partnership. GTBank has a very strong brand in Ghana and has made amazing strides since it opened in 2006. Through this partnership, we believe we can really reinforce a culture of investing among Ghanaians that will not only

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positively impact individuals, but also help move our country forward ﬁnancially. Financial independence is not just a catch phrase at Databank. "It is something that we believe is achievable for all Ghanaians, and we are happy to partner with GTBank in this initiative.” The partnership also allows GTBank to provide its clients with the ultimate banking experience by giving them the ability to bank and invest at the same time. GTBank’s Managing Director, Mr. Lekan Sanusi, also expressed his excitement at this new partnership. “GTBank has consistently maintained its level of customer satisfaction delivery through the provision of convenient banking locations, products and services. The addition of investment products to the GTBank customer experience further reinforces our commitment to being the Most Customer-focused Bank in Ghana”, he said. M r. S a n u s i a d d e d t h a t w i t h Databank’s 25-year track record in Ghana, he was conﬁdent that this partnership would yield positive results for all parties involved – the two institutions and their customers. The start dates for the initial partner locations are: - Airport, East Legon, Osu – Monday, February 16, 2015 - Ashaiman – Wednesday, February 18, 2015 - Cape Coast – Wednesday, February 25, 2015 - Tamale – Friday, February 27, 2015

KPMG Launches New Africa Business App for Investors he KPMG Global Africa Practice has introduced their new Africa Business App , t a r g e t e d a t p r o v i d i n g businesses and investors with seamless access to the very latest Africa information about doing business across the continent. "we are not just delivering the most up-to-date information on country profiles, fiscal information and keen insights into operating in some of these countries - we are providing businesses with a unique, highly interac tive and bespoke user experience." The Chief Operating Officer of KPMG Africa, Bryan Leith said He explained that through the application, users will have access to content that includes the latest African country profiles with the most recent country information everything from fiscal guides to business climate and at no

additional charge for utilising the App beyond their service providers data charges. "Users will also have full access to KPMG's insights into doing business in Africa - from latest surveys and reports across industries. What's more, the firm has included a unique and first to market service via this App. Appropriately named and trademarked, the KPMG Client Talk functionality gives users easy access to the firm's subject experts across markets and sectors by providing quick-links as to who to contact at the firm should users have any questions or are looking for advice about investing, expanding or entering the continent", he stressed. The Chairman, KPMG Africa, Seyi Bickersteth said, Africa is a complex and diverse continent but it is also home to many companies that boast remarkable talent, a great track record and a more-than-promising future. Naturally, investors from elsewhere would like to partner and

share in their growth potential. Within our Global Africa Practice, we ﬁnd ourselves devoting an everincreasing amount of time and resources to "matchmak ing” introducing investors to suitable African partners and in roughly 90 per cent of cases a successful "marriage" results. The waters can be diﬃcult to navigate but we are committed to helping clients and potential clients capture business oppor tunities available in the African market, understand the landscape and mitigate the risks and the App is just another channel that allows us to do exactly that", he stated. The KPMG Africa Business App is available for download on the Apple iStore and the Google Play Store (for android and IOS devices).

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Giwa-Osagie, Deputy Managing Director, NEM Insurance Plc

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INSURANCE IS A MARATHON, NOT A SPRINT othin

g better describes the Deputy Managing Director of NEM Insurance Plc , Mrs Susan Abisola Giwa - Osagie than intelligent and candid. The warm insurance expert invites us into her o ﬃ c e s p e a k i n g exclusively to InstinctBusiness on the trends in the insurance industry, advice for the f e m a l e g e n d e r, h e r undying love for the business and much more…. Why insurance, how did you get started in the industry ? I have been in insurance for over 20 years. It was accidental actually, when I graduated from university I moved back to Nigeria and was looking for job, not in any particular industry. I was asked to talk to the then MD of NICON Insurance, Mr Olayinka Lijadu, I will never forget how he gave me a job on the spot. On account of his eagerness, I couldn't say no. I started and realised it was a complete change from what I had studied and I stayed - so here I am. Can you share an a c h i e ve m e n t yo u a r e proud of down the lane?

There are several achievements I am proud to have accomplished. One of them I think was the setting up of NEM Insurance Ghana, the first subsidiary of NEM Insurance Nigeria. I was tasked with setting up NEM in a completely new territory. I had never been to Ghana and suddenly had to make several trips over a short period of time. In fact when the GMD told me that he was going to give me that assignment, I was very reluctant to take it but I didn't know how to say no, then I looked at the flip side and saw a challenge. I went to Ghana for the first time, not knowing where to start, who I was going to talk to, how I was going to pull off the whole thing. God was on my side, I was able to leverage on one or two contacts and with hard work, I was able to do it. It was particularly challenging because at that point in time, the Ghanaian authorities had decided that they didn't want to register any new insurance companies, so that made it particularly difficult. I think NEM was one of the last companies registered before they actually completely halted registration at that time. That was about 5 years ago, I still manage it as part of my functions as Deputy Managing Director. The office has been growing steadily , it is clear that we are in Ghana to stay and we expect significant growth in the medium to long term. I am particularly proud of this

achievement as it was our first attempt at branching out of Nigeria and was a success. Could you please compare Ghana and Nigeria business environment and reception? The Ghanian ter rain is different from the Nigerian o n e, fo r a s t a r t i n t h e ECOWAS region there are about 250million people of which 170million reside in Nigeria so their economic frameworks are different . However, both economies are dependent on revenues from oil and both are now witnessing a strain on their local currencies on account of declining oil prices. Again in Ghana as in Nigeria foreign Investment is encouraged. Both countries have been trying to create an environment that is attractive and conducive to foreign investors. In terms of reception, Ghana has opened its doors to foreign investment - they need the capital inflow however the modus of retaining and managing returns on investment must also be attractive. There is a lot of replication between both economies. A major plus for Ghana is that they been able to better develop their infrastructure over time and they don't have the security hindrances we have here in Nigeria. Narrowing down to Insurance, NEM ventured into an existing market ,as with all new ventures you www.instinctbusinessmag.com

need to prove yourself ,people need to gain confidence in your brand . of course there is the initial suspicion and there is competition for market share which is normal in any healthy thriving environment . What is the biggest challenge you face in your practice, and do you encounter any gender issues? Well, I will take the gender issue first, because it's something that is close to my heart. Everyone must have a passion for whatever they decide to do - irrespective of your gender it is that passion that drives the individual to achieve excellence. A woman should not see a ceiling in any enterprise , business or concern. You are the only one stopping yourself. If you are focused, you work hard, have a passion for what you are doing, and you have the ability, honestly, it makes no difference whether you are a man or a woman. The insurance industry is very embracing, gender matters much less than drive, ability and sheer passion for work. Having said all the above I am fully aware that the Insurance industry is male dominated. My only caveat is that as with any minority group you must always ensure that your ability cannot be called to question. What are any other challenges that you face? Challenges are ever present but should be embraced and resolved . The strength of your character lies in your ability to tackle complex challenges .The insurance industry is evolving every day, throwing up fresh challenges. We are beginning to tap into opportunities that have hitherto been docile. We realise that retail is the future and we are going full steam ahead in terms of software , capacity building and much more . Even within saturated sectors like oil and gas there is scope for growth from an Insurance perspective. There is so much out there that we can do in terms of insurance. We need to focus on building synergies , achieving seamless

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operations, creating sustainable premium ratings and creating awareness. This focus need to be at the forefront of developments in the industry. In all of this there needs to be a delicate balance because the insurance business itself is a marathon, not a sprint , stakeholders must appreciate that. It is a long haul project for the tenacious . We are getting there, the way insurance was practised maybe 1015years ago, is not the same way of practice now, it has evolved into something more dynamic, user and people friendly. We are out there, trying to tell people that look, we are not what you thought we were. They say insurance companies don't pay claims but it's a different regime now - we do pay claims. Infact, in NEM insurance in particular, our selling point is ability to deliver outstanding service and pay claims promptly. we have grown largely on account of our service and we intend to maintain that. So what excites you most about the insurance industry today? I am a lawyer by profession, I actually have a masters degree in Law, but I don't practice, because I feel that there is nothing pushing me or challenging me there. I don't find that galvanising force in Law. With Insurance the fact that there is virgin territory to be explored, new markets to conquer , new accounts to be won , new produc ts to develop, working with young entrepreneurs who are creating platforms to sell our products and repackaging some products to fit into the present. There is so much happening and the scope for growth in Insurance has always excited me. How well do you juggle office and home? I actually don't make an effort to, it's just happens during the course of life. I have an understanding husband and grown up kids who don't require micro management. Sometimes it does get a bit tricky

trying to juggle all interests. It's all about time management you cannot be a successful Manager without spending quality time with all the important people in your life you must compartmentalise . What type of a leader are you? I don't suffer fools gladly, which means I believe that you should always give your best. The minute you find that you can't give your best, you should leave the job. A lot of us like the title and the pay, but we don't want to do the work. Life is not about freebies, for me there is no free lunch. When you are leading, you have to lead from the front, you have to lead by example, in everything you do, sometimes that requires sacrifice. My expectations are high my demands are many on the job . I hope that in my little way I have been able to inspire others. What piece of advice would you give to women who want to enter this industry, and where do you see women in this industry in the next ve years?I There is a perception that there are more men than women in Insurance - that is correct . You must be ready to stand shoulder to shoulder with them. They are not better than you, you are not better than them. That should be the attitude. As an equal you must be ready to think outside the box and make a difference as your peers do. In the next five years I see women taking up more and more assertive roles in the Industry. I hope we will be able to have a female commissioner of Insurance very soon. So if you are asked to give three wishes, what will it be? This minute, I will say I want peace in my country, Gods richest blessings, and great success for NEM Insurance plc

Kia Motors Records 5.9% Increase In 2014 Global Sales

i a M o t o r s Corporation has revealed an increase of 5.9 percent in its 2014 full-year global sales

ﬁgures made up of export sales, domestic sales and sales from overseas plants for passenger cars, recreational vehicles (RVs) and commercial vehicles, recording a total sale of 2,907,757 units. In 2014, Kia posted a yearon-year sales increase in China, North America, general markets and Korea of 17.5 percent (678,196), 7.0 percent (650,241), 2.1 percent (524,345) and 1.6 percent (465,200), respectively. Meanwhile, 2014 sales in Europe experienced a slight drop of 0.1 percent (589,775). For the month of December 2014, global sales grew by 20.7 percent with all major regions experiencing year-on-year growth. Sales in China, North America, Korea, general

markets and Europe grew by 35.9 percent (69,111), 34.2 percent (48,939), 17.1 percent (48,018), 12.0 percent (41,349) and 2.4 percent (44,975), respectively in December. Kia’s best-selling model in overseas markets during 2014 was the Bsegment Rio (known as ‘K2’ in China) with 491,613 units. The C-segment Cerato (known as ‘Forte’ or ‘K3’ in some markets) was the second best seller with 432,420 units delivered, while the Sportage compact CUV, Optima D-segment sedan and Soul urban crossover followed with 416,856, 300,685 and 194,572 units sold, respectively. General markets include the regions of Central and South America, the Caribbean, Asia (excluding China and Korea), the Paciﬁc, Middle East and Africa. ‘Europe’ includes both Western and Eastern European markets.

Kenya’s Economy to Grow by 1.5% - Prez Kenyatta will grow by 1.5 per cent. He was speaking at Mtito Andei recently while on an inspection tour of the project. Uhuru said the Sh327 billion project will ease transport across East Africa.

resident Uhuru Kenyatta of Kenya has announced that, upon the completion of the standard gauge railway, its economy

"The standard gauge railway project has a big economic potential to this country. Once operational, the rail will result to reduced prices of goods from the Mombasa port," he said. Uhuru appealed to residents to support the project, which will create 30,000 jobs.

"Those counties where the project is passing along will give us 15,000 workers while the rest will come from other regions," he said. Uhuru said Kenyans will earn rail construction skills and expertise. “This will create an opportunity for them to participate in the construction of the rail in other countries," he said. The rail project extends to Uganda, Northern Tanzania, Rwanda, Burundi, Eastern DRC and South Sudan. Passenger trains will cover Mombasa to Nairobi in four-and-a-half hours.

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We Are On Our Way To Becoming A Corporate University r. Jeff Bassey is the founder and Executive Director of the Graduate Training Institute located in Ghana's capital city, Accra. As a Management Consultant and Lecturer with key expertise in HR, Leadership & Strategy, Dr. Bassey has trained and consulted for 62 rms which include Bank of Africa, COCOBOD, GTP, Barclays bank, MTN and other leading corporate entities. He has also delivered executive trainings to over 8,000 managers and business leaders across Africa. On the academic front, he holds a BSc. Administration, MBA and a Doctorate in Business Administration. In this Exclusive Inter view with Carol HoganBassey, he talks about nance for start ups, entrepreneurship, and how GTI is contributing to corporate leadership development… Enjoy… What is the differentiating factor b e t w e e n G r a d ua t e Tr a i n i n g Institute and other post graduate schools? Since we began the institute in 2005, we have passed out about 5 0 0 0 m a n a g e r s a n d l e a d e r s, ordinary professionals and workers. What differentiates us is that, we don't actually do academic education, we do training and development. We prepare people to perform well on their current jobs with the required knowledge, skills and ability.We position them for future roles . In addition to that, ourpracticality gives us a major difference with other institutions

What are the main courses you offer? We run three main stream programmes - corporate l e a d e r s h i p, h u m a n r e s o u r c e management and project management; they are the major flagship programmes. There are other programs that come along as and when there is the demand. We also run the professional certification programme in project management which is the P&C and then the professional certification in HR, the PHR-STHR for chartered people in various professions. Which of these courses has been more impactful? I would say a combination of leadership and human resource management particularly because these areas can be confined to departments, be it marketing, finance, operations and IT. Every manager got to lead and manage people. The design of our programme is such that it's not particularly to make you an H.R professional but to make you understand leadership and how to manage people irrespective of what discipline you are. There are people who would like to specialize in H.R as a profession and they are the ones who proceed to certification or the professional charter level otherwise the short courses are opened to ever y manager who should learn how to manage the people factor of the business What will you say informed your decision to be an entrepreneur? I began my career as a management consultant three years before the institute was set up. The institute was born out of the business of consulting. What drives one to go into entrepreneurship is a genuine

passion for solving a problem. And that is what drove me into entrepreneurship- The passion for solving the problem of ignorance. I hate ignorance and I have a problem with our educational structure in Ghana where students are made to memorize information and reproduce to the teacher in time of examination but when the demand of those skills are needed on the job market, they are unable to deliver. For us having identiﬁed that problem we thought of contributing our quota in creating a link in here through the institute So what are some of the challenges you faced during the early stages of GTI? First of all I will say the challenge of credibility. Because you are new, people do not believe in you until you deliver repeatedly to tell your story. Credibility was a challenge from the beginning, followed by ﬁnance, but that was temporary. We are in the knowledge business and we depend a lot on the requirement of our trainees who are usually graduates or practitioners and so the ability of the instructor to link the demand of the trainee has been an issue from the beginning but by the time we got to the second year we started doing systemic rethinking together with various adjustments. The duration of all our courses went through rebuilding and shaping up. By and large we have been able to get over all of these. International certi cates are more recognized in this part of the world, how are you dealing with this notion? I have always believed in contextualization or localization, we try to go modern but not to westernize our courses. Someone www.instinctbusinessmag.com 13

who gets his or her education outside and brings his degree to Ghana is more respected than the one holding a degree from Ghana, making it an unfortunate development. That is why as an institution we have international aﬃliations with our programmes. It should be noted that education is a waste of time if it doesn't resolve the problems of today in the very community education is being rendered. It's a perception out there and we trying to change that notion gradually. Would you say your tra ining methods can compete favourably with the likes of Harvard Business School? We tr y to modernize, there is nothing wrong adapting to Har vard's system of teaching probably because it's a good standard practice. Occasionally we adopt the Harvard and Stanford Business School form of teaching which have to do with real world situation and case based- learning, so that people can have more eﬀective learning. What we will not do is to teach it in the way that will

solve their problems but rather contextualize it and purely base it on competency. How would you rate GTI's level of impact on corporate leadership development in Ghana? Our training has consistently been recognized as good quality and we have caused a major shift in the thinking of managers who have hitherto held onto classical ways of management to contemporary. We have impacted several organizations, we've had staff from almost every meaningful organization in Ghana and West African region to study with us. The likes of MTN, Eco bank, Barclays Bank, Gold Mining Company's etc. have sent in their staff for training at GTI. And follow-up actions has given us feedback that we have been making some impact on corporate leadership development. The fact that multinational companies sponsor their staff to study with us is a good performance indicator that shows we are on the right track. Knowledge is expensive, how competitive is your pricing? Our pricing is so competitive to the

extent that we operate almost at a 50% pricing level to our contemporaries like the GIMPA's. A recent market survey showed that, the fee we charge on the professional programs we run is 50% of what other institutions charge in preparing their students to write an examination. Our pricing is moderate and we ensure it does not compromise the quality of service we render. What are your projections for GTI in two years? In two years we intend to adapt to the corporate university philosophy, the concepts of the corporate university philosophy doesn't run like the traditional university. You may not even bear the name “University” but it rather dwells on the traditional university on one hand and training department of a co m p a ny o n t h e o t h e r h a n d. Lec turers are not par ticularly academic certiﬁcate holders but everyday management consultant who are practitioners. We are gearing up to become a corporate university in few years.

Dropbox Appoints New CFO ropbox has announced the appointment of Vanessa Wittman as its new CFO from July. Wittman was previously the CFO of M otorola M obilit y, until Google sold the phonemaker to Lenovo. Before Motorola, Wittman was CFO of insurance broker Marsh & McLennan and held senior roles at Microsoft and Morgan Stanley. She replaces Sujay Jaswa, who joined Dropbox in 2010.

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Access Bank Nigeria Records Milestone With Entry into China ccess Bank Nigeria has recorded a n o t h e milestone with its entry into China. The G r o u p Managing Director of Access Bank plc Herbert Wigwe says the banks effort in becoming the world’s most respected African bank has driven the opening of its representative office in China. This development affirms the bank’s commitment to socio-economic development of the continent through expansion across the world and its resolve to redefine the financial services operations.

He explained that the opening of the representative oﬃce is just the beginning of Access Bank’s entry into the Chinese market as the bank seeks to stimulate economic growth of the country by partnering with Chinese and African entrepreneurs. He said, “Access Bank is using this as a platform to grow its business in one of the world’s fastest growing economies, as well as fostering economic and trade ties between China and Africa by becoming the link between businesses in both continents thereby driving economic development and business partnership”. He also said, the decision to open a Chinese oﬃce was necessitated as the country has become

Nigeria/Africa’s major trading par tner with several Chinese companies seeking to do business in Nigeria and several countries in Africa where Access Bank has its presence. This will signal a new era in the annals of financial service delivery as Access Bank Group will deliver world class financial services by leveraging on the groups robust and time – tested technological platform, its prized expertise in trade finance to facilitate trade and its innovative products and excellent service delivery which has been acclaimed to be one of the best in the world.

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Stanbic IBTC Stockbrokers Named Best Capital Market Firm In Nigeria Nigerian Stock Exchange in 2014. The award is an annual capital market award, in three sub-categories, that recognises excellence and exceptional performance by market operators in a given year. Promoters of the awards seek to reward outstanding contributions to the growth and development of the capital market and the Exchange. The award reinforces S t a n b i c I B T C Stockbrokers Limited as the largest stockbroking firm in Nigeria in both volume and value of total transactions handled in Chief Executive Officer, Stanbic IBTC 2014. Market data for the Stockbrokers Limited, Oladele Sotubo, year under review showed that Stanbic IBTC Stockbrokers tanbic IBTC Limited achieved a turnover in Stockbrokers excess of 24 billion units of Limited has been shares, which represented 11.42 recognized as the per cent volume of shares valued leading market at over N472 billion or 17.55 per operator in the cent to lead both the volume and Nigerian capital value tables. market. The Stanbic IBTC Stockbrokers was stockbrokerage firm also the largest stockbroking won the NSE CEO award as the house in Nigeria in 2013. best dealing member firm on the Speaking on the award, Chief

Executive Officer, Stanbic IBTC Stockbrokers Limited, Oladele Sotubo, said the company was delighted to win the NSE CEO award as it validates the appetite and growing capacity of the stockbroking firm, leveraging on the expertise of the Stanbic IBTC Group, to provide robust services in the capital market. Sotubo said the award and the recent listing on the Exchange of Stanbic IBTC Exchange Traded Fund (Stanbic IBTC ETF 30) were clear indications of the Stanbic IBTC Group’s focus on building a strong and vibrant stock market. “We are delighted to be recognised for our efforts and credible performances in the Nigerian capital market. The award reflects our strong commitment to consistently deliver relevant, innovative and timely solutions to our ever growing local and foreign clientele,” Sotubo said. “Increasing our market share is a bold statement that gives our present and prospective clients more confidence to do business with us. It also means that we have to work harder to maintain that position as competitors will continue to strive to take the lead from us.” he added.

Transcorp Hotels Plc Listed on The Nigerian Stock Exchange he Nigerian Stock Exchange (NSE) has announced its ﬁrst listing recorded on the bourse this year by listing the shares of Transcorp Hotels Plc. As a result, the shares of Transcorp Hotel Plc, have been admitted on the daily oﬃcial list of the Nigerian Stock Exchange (NSE). Trading also

Caption for pix- Valentine Ozigbo is the MD/CEO of Transcorp Hotels Plc www.instinctbusinessmag.com 16

commenced on the shares as dealers exchanged 57,000 units. Transcorp Hotels Plc approached the Nigerian stock market last year through an initial public oﬀering (IPO) of 800 million ordinary shares of 50 kobo each at N10 per share. Transcorp Hotels raised N4.2 billion in an initial public oﬀering that was made to the

Chris Ogbechie Appointed As New Chairman for Diamond Bank Nigeria

iamond Bank P l c, h a s announced the appointment of D r. C h r i s Ogbechie as the new Chairman of its Board of Directors, following the retirement of Igwe Ugochukwu Nnaemeka Achebe The Bank in a notice recently to the Nigerian Stock Exchange (NSE), disclosed that the Board of Directors of the Bank in a recent Board

investing public between September and October 2014. The share price is N10 per share. The company aims to utilise proceeds of the IPO in Transcorp Hilton Ikoyi project with an estimated completion year of 2017 as well as Transcorp Hilton Port Harcourt project, also with an estimated completion year of 2017. Valentine Ozigbo, managing director/CEO, Transcorp Hotels Plc said: “The journey till this moment has been a long one and we thank God for the success so far.

meeting, approved Igwe Achebe's retirement and the appointment of Ogbechie as the new Chairman. Igwe Achebe, has led the board since January 1, 2007. According to a statement from the bank, "we wish to inform you that the Board of Directors of Diamond Bank Plc at its meeting has approved the retirement of IgweUgochukwuNnaemeka Achebe, the Chairman of the Board of Directors of the bank eﬀective December 31, 2014. "In his stead, the board unanimously approved the appointment of Dr. Chris Ogbechie, a non-executive director, as the Chairman of the Board of Directors of Diamond Bank. "Igwe Achebe's tenure as the Chairman of the board was charac ter ized by tremendous growth of the Bank in the quality of asset base and the entrenchment of the bank as a leader in Retail Banking in Nigeria. He successfully saw Diamond Bank through the entry of Actis- an institutional investor in 2007, the Global Depositary Receipts (GDR) listing on the London Stock Exchange in 2009, the 2008 global economic meltdown, and more recently, the bank's rights issue of 2014." The new Chairman, according to the The listing represents a major milestone for us in our steady march towards becoming the leading provider of hospitality services in sub-Saharan Africa,” Valentine Ozigbo, said shortly after the listing of the company’s shares. We intend to leverage on the success of the past to grow the company in a best possible manner in line with good cor porate gover nance. The timing of the listing is critical to the market. Nigeria’s hospitality sector is experiencing signiﬁcant growth. We will reward our

bank, is a seasoned boardroom technocrat and has a First Class Honours degree in Mechanical Engineering from Manchester University, an MBA from Manchester Business School and holds a PhD in Management from Brunel University, Middlesex, England. He is scholar par excellence and is currently a Faculty member of the Lagos Business School where he teaches Strategy and Corporate Governance and a visiting Professor of Strategy and M arketing at Strathmore Business School, Nairobi. Ogbechie is an authority in the field of strategy and sits on the board of a number of companies and is a Fellow of the Nigerian Institute of Marketing (NIM) and the Advertising Practitioners Council of Nigeria (APCON). He is also a member of the American Academy of Management, International Corporate Governance Network and Strategic Management Association and Director at the Society for Corporate Governance Nigeria and was honoured by Pope John Paul II in 1999 with the papal knighthood of St. Sylvester. "His work career spans various roles in local and multi-national companies including Xerox Nigeria Ltd where he was a Product Manager and Nestle Foods Nigeria Plc shareholders. “We will continue to run this company in a very profitable manner. We have a consistent d i v i d e n d p a y m e n t p o l i c y. Shareholders who participated in the offer will benefit from the 2014 dividend payout.” He added.

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Tullow Oil To Begin First Exploratory Oil Well In Kenya ullow Oil plc has announced its expansion plans of its oil and gas search to new areas in the country as it kicks off with its first exploration oil well in Elgeyo Marakwet in western kenya later this year. Tullow Oil Kenya Social Performance Manager Rob Gerrits, speaking during a meeting with Elgeyo Marakwet leaders recently said the oil firm had already conducted environment and social impact assessment exercise in readiness for the drilling which is expected to be approved soon. Tu l l o w O i l K e ny a h a s b e e n conducting a series of Environmental and Social Impact Assessment meetings in Elgeyo Marakwet and Baringo Counties www.instinctbusinessmag.com 18

ahead of the start of oil exploration drilling in Block 12A which covers both counties. The latest developments in oil exploration indicate that the company is set to start drilling its first oil well in Elgeyo Marakwet later this year. The oil exploration company said the proposed exploration well, named Lekep-A, will be the first exploration well to be drilled by Tullow on Block 12A. However, the company has already conduc ted successful seismic surveys and identified a number of leads, including the proposed Lekep-A Well. Results as well as data collected from this exploration well are expected to provide further information for

future drilling programms. The exploration well is expected to test if there are commercial quantities of hydrocarbons in the area. This comes after Tullow said it would write oﬀ 2.2 billion US dollars of its exploration activities in Ethiopia, Mauritania and Norway as a result of the plunge in crude oil prices to below US$50 per barrel. Tullow Oil has said that it would slash its global exploration budget by US100 million, but added that it would continue focusing on its East African business. Tullow Oil Kenya trials in Turkana, in northwestern Kenya, have proved the presence of up to 10 billion barrels of oil that are commercially viable.

South Africa’s Hollard Insurance Buys 51% Stake In MET Insurance Ghana

South African insurance giants continue to expand their presence in West A f r i c a ’ s i n s u r a n c e industry. Adding to the list of investments and acquisitions by South African companies in Ghana’s insurance sector is IVM Intersurer, which owns a signiﬁcant stake in Hollard Insurance, that has bought about 51 percent majority shares in Ghana’s Met Insurance. This becomes the second insurance ﬁrm from South

Afri ca , i n r e c e n t times after Mutual Insurance to acquire a ﬁrm in Ghana. Per the agreement , Hollard will rather restrict itself to b o a r d representa tion rather than direct managem ent control. C h i e f Executive Ofﬁcer of M E T Insurance, K w a m e G a z o Agbenyad zie has explained that their decision to accept the offer from Hollard was because of the experience they bring to the industry. “We are not only looking for an external partner to bring in capital that we could have raised locally but the essential point in this relationship is that we are looking for a partner that already has the experience and has worked in similar markets so that they will bring into this market all the experience that they have got.” He was optimistic that the partnership will yield fruitful results and push the market

further ahead than it is now. He however assures that customers will see the exciting changes which will be made as a result of the partnership and that the company will not continue to do business the traditional way. PwC’s Africa insurance trends report, released in October, found the top three target markets for South African insurers were Kenya, Nigeria and Ghana, due to their strong economic growth, low insurance penetration and anticipated growth in demand for insurance as the middle class grows. Hollard would provide capital, skills, capacity and systems to Met Insurance, and help to introduce innovative products. Met Insurance had about a 9% share of the general insurance market with a focus on the corporate and commercial market. Hollard plans to grow the business through new corporate and commercial products, expanding into personal lines and bancassurance, as well as through opportunities in microinsurance and funeral cover. The privately owned Hollard and Met Insurance have worked together over the past few years on a joint venture to develop and distribute bancassurance products through Barclays in Ghana.

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Geoffrey Odundo Appointed NSE Boss in Kenya Committee," the NSE said in a Statement. He has also in the past served as a Director and Secretary of the Kenya Association of Stock Brokers and Investment Banks. "I am very honoured and privileged to be appointed as the next Chief Executive of the leading Securities Exchange in East and Central Africa, and I am very conﬁdent that the future of the NSE as a key driver of Kenya's economy is very bright as we deepen the current products and diversify into new product oﬀering," Odundo said on his appointment.

i n g d o m Securities L i m i t e d Managing D i r e c t o r G e o ff r e y Odundo has been appointed the new Chief Executive Officer of the Nairobi Securities Exchange (NSE) effective March 1, 2015. Odundo who has been at Kingdom Securities since 2009 is an accomplished investment banker with 22 years financial sector experience having been in the capital markets in various senior

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roles in asset management, corporate and stock broking. He has been instrumental in the s e t t i n g u p o f Co - o p Tr u s t Investment Ser vices, Co-op Consultancy Services Limited and Kingdom Securities Limited. Odundo has also served as a NonExecutive Director of the NSE representing trading participants from March 2012. "During this time, he has been the Chairman of the NSE Technology Committee and has also been a member of the NSE Finance and Manpower Committee and the NSE Listings and Admissions

On his part, NSE Chairman Eddy Njoroge said Odundo's leadership skills experience and wealth of knowledge would be instrumental in driving the NSE'S aggressive strategic plan aimed at developing the Kenyan Capital Markets and growing the NSE. Njoroge thanked Andrew Wachira, the Head of Compliance and Legal who has been the Acting Chief Executive, for guiding NSE through the Transition period. Odundo comes on board as the NSE self-listed by selling 66 million shares to the public becoming the second exchange in Africa to demutualise after Johannesburg Stock Exchange (JSC) He takes over from Peter Mwangi who left in November after a sixyear tenure at the bourse having completed two terms of three years each.Mwangi is now the CEO of Old Mutual Kenya

AMCON To Sell Keystone Bank in Q2 show enough capacity and ability for recapitalisation. In their place, the CBN, through the Nigerian Deposit Insurance Corporation, established three bridge banks and transferred the assets and liabilities of the aﬀected banks to them. Mainstreet Bank took over the assets and liabilities of Afribank; Keystone Bank assumed the assets and liabilities of Bank PHB; while Enterprise Bank took over Spring Bank.

h e A s s e t Management Corporation of N i g e r i a h a s announced that it would commence the sale of Keystone Bank in the second quarter of this year. This came barely four months after the bad debt manager completed the sale of Enterprise Bank and Mainstreet Bank, two of the three nationalised banks. The Chief Executive Oﬃcer, AMCON, Mr. Mustafa Chike-Obi said the February general elections had made the corporation to delay the sale of Keystone Bank till the second quarter of the year. “Keystone Bank will be sold in due course. An election time is clearly not the best time to commence the sale of a bank. We will wait for the elections and allow the dust to settle. Sometime in the second q u a r t e r o f t h e y e a r, w e w i l l commence the sale of Keystone Bank,” he said. AMCON had during the last quarter of 2014 completed the sale of

Enterprise Bank and Mainstreet Bank to Heritage Bank and Skye Bank Plc, respectively for a combined sum of N181.1bn, after bidding processes that lasted for several months. Heritage Bank won the bid to acquire Enterprise Bank for N56.1bn, while Skye Bank was announced as the winner for Mainstreet Bank with a bid of N125bn. While Heritage Bank won the bid for Enterprise Bank, Fidelity Bank emerged the reserved bidder after a bidding process that involved over 20 buyers.

Consequently, AMCON acquired from the NDIC the three bridge banks and injected N679bn into them to meet the minimum capital base of N25bn and the minimum capital adequacy ratio of 15 per cent. Chike-Obi, added that the CBN was keenly watching the banking sector to avoid a repeat of the 2009 crisis.He said the Ministry of Finance, CBN and AMCON were not willing to bail out the banking sector the second time. He, however, said that the bad debt manager would continue its aggressive loans recovery action this year. “ We a re a l ways a g gre s s i ve l y pursuing loan recovery. As time goes by, it becomes more and more a bigger part of our daily job.

Cedar One Investment Partners Limited and Fidelity Bank emerged as the ﬁrst and second reserve bidders respectively for Mainstreet Bank.

We will pursue it more aggressively. Again, we have close to 1,000 cases in court; those instituted by us and those instituted against us, he said.

The Central Bank of Nigeria had in the wake of the 2009 banking crisis established AMCON to take oﬀ nonperforming loans from the banks’ books.

There is a certain speed by which things can happen through the courts. Yet, we intend to collect everything that accrue to us and we will pursue it very vigorously.” ChikeObi added.

The CBN had on August 5, 2011 revoked the operating licences of Afribank Plc, Spring Bank Plc and Bank PHB Plc, which it said did not

Source-Punch

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Eric Osei-Abankwa- Executive Manager, Metropolitan Pension Trust

Metropolitan Pension Trust; Driving Innovation & Reliability in Ghana's Pension Sector etropolita n Pensions Trust,Gha na's ﬁrst multinatio nal service provider for privately managed funds is an industry leader in terms of size, scale and scope.And With over 4 years of o p e r a t i o n s t h e c o m p a ny h a s invested in over GHC 27millionfor more than 25 funds. In this exclusive interview with Carol Hogan-Bassey, Eric Osei-Abankwa, the Executive Manger of Metropolitan Pensions Trust talks about, the company's innovative business solutions, www.instinctbusinessmag.com 22

market share, achievements and other sundry issues.. Excerpts… Pension scheme is yet to become a wholly Ghanaian culture, howis your company dealing with this? At Metropolitan Pensions, as part of o u r m a r k e t i n g p ro c e s s e s, we educate prospective clients on the Law and its beneﬁts in taking out the mistrust that was associated with Pensions. The education process includes helping our prospective clients with ﬁnancial planning for their retirement. We have developed models and scenarios to help in forecasting the future values of their contributions. Again, we have brought transparency to our clients

to ensure that they trust the new regime. We send annual benefit statements to our clients. Our members are also able to access their details online anytime and anywhere with secured logins. This functionality has stimulated a lot of excitement about pensions among our clients. We are also making sure benefits are paid to pensioners promptly without any difficulty. The process of enrolling employers on the various schemes entails education, thus a lot more people a r e n o w i n fo r m e d a b o u t t h e management of their pensions. What are some of the company's remarkable achievements since

incepti on? W e h a v e been v e r y active i n shapin g the industr y in partner s h i p w i t h t h e Regulat o r , NPRA. Metrop olitan, a s a Group, h a s been in t h e busines s o f employ e e benefit s , pensio ns and financial solutions for over a century and has accumulated a wealth of experience and expertise to share with the Regulator in setting up structures and guidelines for the players in the industry and we are v e r y p r o u d o f t h i s achievement.Secondly, M e t r o p o l i t a n P e n s i o n s Tr u s t currently has the largest market share, including large schemes such as the GES Occupational Pensions Scheme. Our vision is to be the lifetime financial wellness partner, with the reputation for innovation and trustworthiness thus all are processes and products are underpinned by innovation and trustworthiness. We have been the pacesetters in the pensions industry withvery innovative processes that

give our clients the comfort, trust, peace of mind and excellence. We have achieved real value for money with these processes especially in the areas of contribution and benefits application, the major component of pension's administration and management. At the time when players in the industry were grappling with huge suspense balances of unapplied contributions, we had a zero balance because of our processes coupled with our state-of –the-art Administration System. Some of our practices have become the industry standards. In what way is Metropolitan Pensions Trust using technology to provide world class services to clients? By virtue of being part of the MMI Holdings, we are privileged to have an application that has been tried and tested in countries that have been managing pensions privately for decades.We have an Application System that allows for different realtime online levels of access to member employees and employers. This allows transparenc y and member involvement in the management of their pensions. It is also compatible with a lot of other applications which facilitates our processes with Fund Managers and Custodians to ensure timely updates of member statements. We are also using mobile telephony for contribution payment by members. Again, our members are able to do member/beneficiary update via our website. There has also been an increasing demand for employees to own private pension accounts, to what extent has your company benefited from this demand? With the confidence level in pensions increasing because of the private sector involvement, the demand for personal pensions as well is increasing(but it is very gradual and hasn' t reached a groundswell yet). That notwithstanding, Metropolitan

Pensions already has a Personal Pensions Product to meet the demands of those who may need it now. The demand is there but not as high as expected. It will certainly grow in the short term. What are your projections for 2015 and where do you see your company in three years The informal sector is usually neglected in pension schemes because of the cost involved in administration. With our cost efficient models, we are projecting to be the Trustee of choice in the informal sector in 2015and the market leader in Pensions administration in Ghana, with a reputation for trustworthiness, innovation and partnership in the next three years. With the new pension scheme in place, where do you see Ghana's Financial market in the next five years The pension industry promises to generate a lot of funds available for investment. This is expected to increase activities on the GSE, however, because of the limited number of listed companies, it's likely that stocks maybe overpriced. It will also drive the financial services sector to develop innovative and long term instruments to suit both the long term nature of pensions as well as the high levels of funds available. There will also be the need to develop suitable longer term assets to invest in. The regulator in consultation with SEC and the BOG may develop investment guidelines around investment in offshore products. If you had three wishes, what would they be? To establish a consortium of young professionals to mentor the youth, to have a stable macroeconomic environment, to bring financial literacy to the door steps of the o rd i n a r y G h a n a i a n fo r w h o m planning for retirement is foreign.

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CFO Corner

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CFOs Must Stick to Ethical Business in Africa- Brett Goschen environment in which we operate. Personally, I ﬁnd this feature of our business much more exciting than traditional industries which have done more or less the same thing for over 100 years. At MTN, we touch the l i ve s o f s o m a ny p e o p l e a n d contribute signiﬁcantly towards the socio-economic development of Africa.”

Nigeria. Our capex project management in that country was also hugely successful. After great price reductions in 2010/2011, we embarked on a massive capital program to grow our network capacity, in line with the traﬃc growth. We managed to rollout 1.6 billion dollars of capital equipment in 2012 and an equal amount the next year to grow our infrastructure.”

“I like to be involved at the leading edge of change. I can't get excited about industries or products that the man in the street cannot relate to or does not use. Cell phones are used by almost everybody in everyday life. Not only do they provide functional beneﬁts but from day one, cellphones have also made a lifestyle statement. For example, having the smallest and lightest phone initially, such as the Nokia 2110, and more recently having the latest smartphone, says something about the device owner."

Which of your accomplishments at MTN are you most proud of? “What immediately comes to mind is the rapid growth rate we achieved when I moved to Ghana as the country CEO. I believe that we played an important role in helping to jump-start that country's economy. This is in spite of the fact that our business had been present in Ghana for nearly 12 years before I arrived in that country in 2006. The high growth rates that we achieved were realized by focusing on making our network more efficient and introducing innovative new products to our subscribers. As a result of these efforts, MTN Ghana grew by around 60 percent per annum, for the first couple of years of my tenure there. We went from 2 million subscribers in 2006 to nearly 10 million in 2011, attaining a 53 percent share of the total market. That was hugely successful.”

Which industry specific challenges do you deal with as CFO? “Some specific challenges relate to cash flow and capital allocation choices. MTN has always had a very strong balance sheet, while other operators in most of our markets outside of S outh Africa were typically more cash strained. We were thus able to expand our networks faster and wider than our early competitors and gain a greater proportion of the early adopters. We were in the fortunate position of being able to invest wherever an acceptable return on investment would be made.”

“In the early days, there was a lot of hy p e i n o u r i n d u s t r y, a s t h e telecommunications sector grew at an unprecedented rate. In recent times voice growth has slowed. However, this has not dampened excitement around new opportunities which have emerged with the advent of smartphones. These novel devices are now driving a vast array of new digital products and services. We are part of an industry that is deﬁned by rapid technological evolutions and regulatory changes. This in turn requires our business to be agile in response to the dynamic business

“Another highlight in my career was our achievements in Nigeria when I returned to that country as CEO. My return to Nigeria followed my time as CEO in Ghana and an earlier stint as CFO in Lagos. From being an almost totally voice - oriented o p e r a t o r, w e s u c c e s s f u l l y implemented a digital strategy and quadrupled our data revenues in the ﬁrst 2 years. I believe that my team and I laid the path to developments at MTN Nigeria which currently see 15 to 20 percent of our total revenue being derived from data. In the process, MTN has also become the largest distributor of music in

f t e r conquering Nigeria and Ghana for M T N i n various CFO and CEO roles, Brett Goschen was 'redeployed' in 2013 as Group CFO. In this interview, Goschen, talks about the business support role of a CFO and other sundry issues.. You have worked in the mobile telecom industry since 1996, ﬁrst at Altech Autopage Cellular and since 2002 at MTN. What do you like about the industry?

“Due to the rapid pace of developments in the industry, another typical challenge has been to ensure that the systems and business intelligence (BI) that are useful for management decision making, provide the necessary information timeously. One of the most rewarding aspects of a CFO's role is being able to contribute to the business success by providing the right information and guidance. But that means you need to have the s ys te m s, re p o r t i n g to o l s a n d expertise in place to identify the key trends, risks and opportunities for the business to focus on.” “The core function and responsibilities of the ﬁnance department are pretty similar across most industries, although Revenue Assurance – that is the prevention and detection of revenue leakage – www.instinctbusinessmag.com

probably plays a much larger role within the telecoms industry.” “From a business challenge perspective, irrational competition is something we have to deal with from time to time. This is where competitors would reduce the price of calls or data to levels below their costs, which are not sustainable. That is where your product mix and what you market or withdraw becomes very important. You need to have systems in place such as Activity Based Costing that detect where you are losing margin, where you are gaining margin, by how much and through what type of customers. In this role there is also a need to highlight the opportunities where we can lower or increase prices, or where we should avoid implementing such measures.” So it's the finance department that eventually has to tell the marketing guys 'no'? “For finance people, I think it is always healthy to be a bit on the conservative side. You need to be able to play devil's advocate. Risks often provide the returns, but it's important to know what those risks are and what the likelihood is of those returns materializing. Having a backup option is always important, particularly if your actions do not go according to plan. On the other hand, circumstances also arise where the marketing guys may be erring too much on the side of caution. In these cases, the finance team would be expected to highlight the benefits versus risks of taking more aggressive actions. Sometimes short-term losses need to be incurred to pursue longer term strategic goals. At MTN, we tend not to employ people that only act as gate keepers, although there is always an element of that required when you're in finance. We like proactive finance people who see it as their duty to support their colleagues in the various divisions of the business.” Some CFOs see Nigeria as the next frontier, others are nervous. What is y o u r a s s e s s m e n t ?

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“Obviously it is a huge economy, in real terms even bigger than South Africa. At the end of the day, you need to look at the opportunity, the expected returns and the risks. There were only a few hundred thousand people on fixed line telephones when we entered the market and we obviously benefited from a first mover advantage. In addition, when we started, there was very little existing competition or entrenched interests to upset. That is probably an easier model than new entrants to other industries may face. We have seen some failures of other international and South African companies going into Nigeria, but overall it depends on the soundness of your strategy, business model and ability to execute.” What advice can you give companies – and their CFOs – who want to conquer Nigeria? “You need to be prepared to accept the pain. Don't be tempted to deviate from your ethical standards when encountering difficulties.” “One other area we found to be key to our success is having local shareholders and directors from all the major ethnic groups and regions. It might be harder for small businesses to achieve, but you need to have the right local partners. They can help you and provide guidance on community issues. In addition, using an appropriate advisor, like one of the Big 4 accounting firms, is essential for anybody doing business in Nigeria.” “To get acceptance from authorities, consumers and business partners, you need to develop and employ locals at a senior level. There is an incredible talent pool in Nigeria. At MTN, we have an academy and create our own skills base. Where is a new operation and we genuinely cannot find the skills locally, we look to the diaspora. It is also important to make sure your workforce is diverse.” And Ghana? “There is a saying that if you are not yet in Africa as a business, you should tr y Ghana first before venturing elsewhere in Africa. It is

investor friendly and it is easy to get to interact with government officials and other stakeholders. However, bear in mind that the country is facing a foreign currency shortage and their currency has recently devalued fairly significantly.” After your CFO role in Nigeria, you were CEO in Ghana and Nigeria and now Group CFO again. How do you compare the roles? What advice can you give ambitious, young CFOs? “I have been CFO three times and CEO three times since I joined the industr y. I seem to alter nate b e t w e e n t h e r o l e s . Fr o m my perspective, I haven't set out to pursue one or the other career path. It has more been a case of where the opportunities and challenges have been and where I could contribute the most at a particular point in time. I believe that the focus of a CFO role should be on supporting. I believe that if you strive to make other people successful in the pursuit of the company's objectives, you will be successful too. That attitude can prepare you for a CEO role too.” “If you want to be a CEO, the best place to start is by focusing on your business support role. Enable your CEO to be more successful, enable your marketing manager and enable your tech guys. Be patient – don't be in a hurry with your career. If you want to be a CEO, everything you do as a CFO is still going to be valuable for your development. There are different types of CEOs that are effective. You don't always need to be a larger than life Steve Jobs kind of person

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Mansard CEO- Yetunde Ilori

Mansard Insurance Records N10.88bn Premium Growth In Q3 2014 uring the first nine months t h r o u g h September 2014, M a n s a r d Insurance Plc recorded an increase of 18.12 percent hence tapping into Nigeria’s robust economy. The company's third quarter gross premium income increased by 18.12 percent representing N10.82 billion from N9.16 billion the same period of the corresponding year (Q3) 2013. This was contained in the analysis of its recent financial statement .Underwriting capacity was efficient as net premium income increased by 22.07 percent to N6.54 billion compared to N5.34 billion as at Q3 2014. The Nigerian regulator (NAICOM) oversaw the vast potential for growth in the Insurance Industry as it recently formulated policies like the ‘No Premium No cover’ policy. www.instinctbusinessmag.com

This is with a view of placing operators in the industry on a growth trajectory. The aforementioned policy stipulates that Premiums must be paid for before an insurer can incept cover. This regulation was enforced by the regulator (NAICOM) with eﬀect from January 1, 2013. It is also expected that the new auto mobile policy will be a major driver of growth in the Insurance sector. Despite the upside potentials for the sec tor, it contribution to the country’s GDP is abysmal, which calls for a better product package that will accelerate premiums of operators. This strategic organic growth strategy is expedient as the share of insurance in the country’s GDP of 0.56 percent lags behind South Africa with a contribution of 12.9 percent, Kenya 3.2 percent, and Ghana 1 percent. H o w e v e r, d u e t o a g g r e s s i v e expansion activities that culminated

in increased costs, Mansard’s bottom line took a slight hit as net income reduced by 38.37 percent to N1.14 billion from N1.85 billion the same period the preceding year. Operating expenses were up by 14.50 percent to N2.92 billion in Q3 2014 as against N2.55 billion while underwriting expenses spiked by 20.10 percent to N4.54 billion. Mansard outstripped other Insurers to win the Insurance and Pension Service Risk award for its ability to incorporate the social factor risk as part of its package, which the awardees say distinguished the company from other players in the industry.Total assets were up by 24.56 percent to N45.15 billion in the review period from N36.13 billion the preceding year. Total shareholders fund increased by 5.49 percent to N15.75 billion in Q3 2014 from N14.93 billion last year.

Nigeria’s Pension Investments in Equities Drop Below 10% ension Fund M a n a g e r s ( P FA s ) have been forced to cut down their investment in equities to less than 10 percent. This follows a volatility in the ﬁnancial ser vices market resulting in loss in equities of up to 60 percent in 2014 and further decline in share prices due to economic headwinds, caused by dwindling global oil prices. The development, according to analysts who attributed the fall to safety and caution so as not to further risk contributors money, is against the statutory 20 percent required by the National Pension Commission (PenCom). Consequently, the 10 percent stake has brought the pension assets investment in equities to about N470 billion, as the end of October 2014 when pension assets rose to N4.5 trillion, according to ﬁgures from PenCom. Misbahu Yola, chairman, Pension Fund Operators Association of Nigeria (PenOp) said enthusiasm to increase investment by the PFAs

withered due to increasing erosion and little new investment coming into the market. Yola, who is also the managing director/CEO of Legacy Pensions Limited, said operators were being watchful for bottom of the market, as this presents a good buying opportunity because prices are very low and attractive. He however expressed optimism that there is the possibility of a rebound after Nigeria’s general elec tions. “I magine when the elections are over and new government direction is clear, the market will rebound, particularly if there is ﬁscal discipline, Yola observed. Usman Suleiman, managing d i r e c t o r / C E O, F U G Pe n s i o n s Limited, said that though the market is down PFAs would still invest in the stock market in spite of the down turn because pension funds are long term funds that is to say, we are not day traders but long term investors. “We are not selling at present, so whatever loss is recorded in the books will not crystalise. In fact, to a long term investor, this is the time to buy shares of companies that have good fundamentals and long term

prospects.” The total value of pension assets under the Contributory Pension Scheme (CPS) stood at N4.5 trillion as at October 2014 with an average monthly contribution of N20 billion and 30 percent annual growth rate. This pool of pension funds is a potential platform for attaining the transformation agenda of government in the provision of infrastructure, energy, employment generation and the development of the real sector, justifying why stakeholders are canvassing for inclusion of majority of the working population who reside in the informal sector. It is pertinent to note that the trend in pension fund assets highlights the increasing signiﬁcance of Pension Funds as major institutional investors in the Nigerian economy, and this has been largely shown with the FGN bond, where more than 60 percent of the assets have been invested. I t fur ther shows the growing availability of long term ﬁnances for the development of the real sector and other economic developmental strides.

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Jeremy Awori ,Barclays Bank Kenya MD

Barclays Bank Kenya to Provide Financial Services to Chinese Enterprises arclays Bank Kenya and Bank of China have announced a number of plans designed to provide ﬁnancial services for the Chinese enterprise in Kenya. The bank has singled out growing investments and opportunities for trade between Kenya and China as a key economic catalyst hence the need to tap into it. Speaking in Nairobi, during a dinner held to celebrate the Chinese New Year, Barclays Bank's Managing Director, Jeremy Awori expressed conﬁdence in the bank's resources www.instinctbusinessmag.com 30

and expertise to provide more value to its Chinese clientele. "We lean heavily on our regional and global offices for expertise and best practice in order to offer customers the best possible financial service. More impor tantly, our global footprint enables us to offer our business and retail customers a near seamless service for their transactional business requirements," said Jeremy. The increase in China's economic involvement in Africa is arguably the most momentous development on the continent today. China has become a major destination for a

range of African exports as well as an increasingly signiﬁcant source of a wide range of manufactured goods imported by many African countries. To t h i s e n d, B a rc l ays B a n k i s positioning itself to enhance seamless foreign currency trade for customers. According to China's Customs authorities, the bilateral trade volume reached $2.4 billion (Sh206.4 billion) in 2011 and $2.8 billion (Sh240.8 billion) in 2012. Last year, trade volumes rose to$3.27 billion (Sh281.2 billion), with the year-on-year growth rate of 15 per cent.

Nigeria, Kenya &Ghana To Benet From $429m Old Mutual Business Programme market. Old Mutual had said that its entrant into the Nigerian insurance market was to create a diﬀerence.

businesses had low leverage and were strong cash generators. It could also issue more debt to ﬁnance expansion, Roberts said. Roberts said he was satisﬁed with Ecobank’s governance and with the size of Nedbank’s stake.

D u r i n g i t s Emerging Markets Showcase, the company said its strategy was to study peculiarities in emerging markets and fashion out products that would meet specific needs of each people. The company said that it planned to capture and invest in emerging markets in Africa to be able to earn the position of the Julian Roberts, Chief Executive Officer, Old Mutual first or second company in any country where it nglo-South African operates. Head of Alternative financial services Investments of Old Mutual Group, firm, Old Mutual Mr. Paul Boynton, said that the has named Nigeria, c o m p a n y w o u l d p ride on its Kenya and Ghana as e x p e r t i s e a n d c ustomer the countries to u n d e r s t a n d i n g t o p ump into b e n e fi t f ro m i t s $ 4 2 9 m i l l i o n Nigerian market enticing products business expansion that will compel Nigerians to patronise insurance and grow the programme. So far, it has spent industry premium. about $599,433 on various

“I am absolutely happy that those days are well behind them,” he said, adding that “we are happy where we are with the stake that we’ve got”. In the United States, Old Mutual brought its fund management arm OM Asset Management to market last year, but still owns 78 percent of it. Roberts is chair of the asset management ﬁrm. OM Asset Management was looking to acquire more asset managers, Roberts said, adding the parent company would be prepared to scale back its majority holding in future. “I accept there is a time when we probably will not have control of that business but that’s a decision for (in) 2-3 years.” Old Mutual also has businesses in Latin America and China.

commitments out of the total budget within the sub region. Old Mutual is the majority owner of Nedbank, which late last year took a 20 per cent stake in pan- African lender Ecobank. According to the Chief Executive Officer of the financial firm, Julian Roberts, Old Mutual is still looking to expand in sub-Saharan Africa, though prices were rising for insurance businesses, as European and South African firms compete for a slice of the underpenetrated

Boynton also said that Old Mutual plans to invest about $100 million in agricultural and infrastructural development projects in Nigeria. Roberts said he was prepared to wait to buy businesses at the right price, that can generate returns on equity of around 16 per cent on a ﬁve-year horizon. “The multiples people are paying are astronomical we do not want to overpay.”

Roberts said the Chinese financial services sector was competitive but added: “You know that if you ever get out of China you’ll never get back in again.” Going beyond Africa, the firm is also expanding to India where the Prime Minister, Narendra Modi, resorted to a rarely-used executive decree last month to enable foreign firms to increase their stakes in insurance joint ventures to 49 per cent from 26 per cent. “I am a real fan of India,” Roberts said, though he added that the market was currently a difficult one, with regulation curtailing business. “We will be considering over the next few months with our partners whether we a re g o i n g to c h a n g e t h at shareholding.”

The ﬁrm would not need to raise share capital for acquisitions, as its www.instinctbusinessmag.com 31

L-R: Chairman Subcommittee on Electronic Pension Contributory Collection System (EPCCOS) and Managing Director/Chief Executive Ofﬁcer, UBA Pension Fund Custodian, Bayo Yusuf; the Executive Secretary of Pension Fund Operators Association of Nigeria (PenOp), Susan Oranye; Head Manager Business Process Outsourcing/Portal Management Nigerian Inter-Bank Settlement System (NIBSS), Samuel Oluyemi, and Portal Manager NIBSS, Prosper Ofualagba

PenOp Launches Electronic Pension Contribution Collection System in Nigeria. he Pension Fund O p e r a t o r s Association of Nigeria (PenOp) has introduced Electronic Pension Contribution Collection System (EPCCOS) to give employers easy access in the payment of contributions on behalf of their employees. EPCCOS came into operation in January after the operators carried out a pilot test during the last quarter of 2014 with 500 selected organisations that have embraced the Contributory Pension Scheme. The Chairman, PenOp Subcommittee on EPCCOS and Managing Director, UBA Pension Fund Custodian, Bayo Yusuf, said the platform is free and has enabled employers to comply with the contributor y pension scheme without any diﬃculty. www.instinctbusinessmag.com 32

EPCCOS is intended to eliminate employers’ burden of multiple schedule generation, ensure timely crediting of employees Retirement Savings Account (RSA), minimal contribution reconciliation issues and a self-service platform. The initiative is an industry platform d e ve l o p e d to d r i ve s e a m l e s s pension contribution remittances and schedules collection, adding that the system will bring about seamless remittances, minimise reconciliation issues, timely crediting of employee’s RSA and Straight Through Processing (STP). U n d e r t h i s a r ra n g e m e n t , t h e employer is required to upload contribution schedules prior to payment, and that the platform will generate unique reference number and amount payable based on schedule uploaded. The platform will also validate employer code and PIN digits for correctness and enable

the employer to make payment using any of the e-banking facilities. Under EPCCOS, the Pension Fund Custodians (PFCs) are required to download schedule uploaded by employers, validate payment with schedule uploaded, generate re p o r t s a n d e n s u re u s a g e o f platform by employers. S i m i l a r l y, t h e P e n s i o n Fu n d Administrators (PFAs) are also to download schedule uploaded by employers, validate payment with schedule uploaded, generate re p o r t s a n d e n s u re u s a g e o f platform by employers.

The National Pension Commission (PenCom), on its part, is to download schedule uploaded by employers, generate reports as well as regulate and ensure standards are followed.

Zimbabwe’s Gross Domestic Product To Expand By 3,2 %- World Bank he World Bank in its bi-annual global economic prospects report says Zimbabwe's gross domestic product will grow the economy and expand to 3,2 percent this year, as the liquidity crunch and subdued capital inﬂows continue choking the economy. In line with Government's projections, it will further grow by 3,7 percent next year before slowing down to 3,4 percent in 2017. The Government said this year's growth would be achieved on the back of a stable macro-economic environment, coupled with planned investments in agriculture, mining, communication and other infrastructural projects, including power generation. However, the growth rates are below the 6 percent annual target set under the Zimbabwe Agenda for Sustainable Socio-Economic Transformation, the countr y's economic blueprint.

Economist Dr Gift Mugano said the economy will grow marginally this year and "most probably" in the coming years if there is no reverse on the liquidit y crunch, chok ing competition from the region and the globe, subdued mineral prices and low FDIs. "The liquidity crunch coupled with choking competition from the region is constraining any space for business to manoeuvre," said Dr Mugano. "This situation has led to incessant company closures which has ripple eﬀect on economic growth." Zimbabwe's situation has been worsened by the fact that the national export basket is mainly constituted by minerals whose performance has been aﬀected by low prices. "So, it is a vicious cycle. And, to break the umbilical code of this cycle we need to raise competitiveness and attract foreign direct investment," said Dr Mugano Finance Minister Patrick Chinamasa said the growth levels "remain inadequate for us to begin making a

dent at the prevailing levels of capacity utilisation and high unemployment". "It remains vital that we further strengthen our efforts towards addressing all the key constraints to rapid economic growth," said Minister Chinamasa in the 2015 National Budget. "These relate to improving the ease and cost of doing business in our economy, guaranteeing uninterrupted supply of adequate power, among others." In Sub-Saharan Africa, growth picked up only moderately in 2014 to 4,5 percent, reflecting a slowdown in several of the region's large economies, notably South Africa. Growth is expected to remain flat this year at 4,6 percent, largely due to softer commodity prices, and rise gradually to 5,1 percent by 2017, supported by infrastructure investment, increased agriculture production and buoyant services, the bank said.

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Deloitte Gets $100m First PPP Transaction Deal in Kenya he Kenya Urban Roads Authority has a n n o u n ce d t h at, the construction of the second Nyali Bridge, which is one of Kenya's largest Public-Private Partnership (PPP) projects has been awarded to Deloitte Consulting L i m i t e d a n d D e l o i t t e To u c h e Tohmatsu India Private Limited. Deloitte Consulting Limited has been selected as lead transaction adviser of transaction deal worth more than US$100 million. The t wo ﬁrms will conduc t a feasibility study, due diligence and transaction planning. They will also provide project assistance until the www.instinctbusinessmag.com

ﬁnancial close, including marketing it to private investors. They will also be responsible for bidding and evaluation of contractors. The Chief Executive Oﬃcer of Deloitte East Africa, Sammy Onyango, said "We are delighted for the opportunity to be part of this ground-breaking transaction that is not only historical but will also drive economic transformation. "This new bridge will ease congestion and is paramount to drive the economic growth of the entire East African region since the Port of Mombasa is an important gateway into the region." The new bridge will provide an alternative link between Mombasa

Island and North Coast. The current bridge has served the Kenyan coast for about 35 years and has been the only link between the Mombasa North mainland and the island. An estimated 95 per cent of Kenya's international trade moves through the Port of Mombasa on the Indian Ocean. "The PPP model is an excellent avenue for improving infrastructure since it allows for deployment of private capital in public projects. This is critical in unlocking economic development and fast tracking the attainment of social and economic goals," Onyango said.

More Private Equity Deals For Nigeria in 2015 - Deloitte ames Douglas, the global leader of D e l o i t t e’s D e b t a n d Capital Advisory practice, says Nigeria has emerged to be at the top o f Deloitte’s priority list and it is expected to s e e m o re p r i vate equity deals this year as a new era of cheap ﬁnancing emanating from the European Union in higher yielding emerging markets.

development banks, and pension funds in Europe. Following the devaluation of Nigeria’s currency, and the plunge in the currencies of other emerging

“Inclusion of corporate bonds in the tax waiver regime has made them attractive and put them at par with zero rates securities”, he said.

More debt ﬁnancing is expected to ﬂow out of Europe into Africa in a renewed search for higher yields on the back of European Central Bank monetary stimulus.

Investors are likely to accept a lower interest rate with a tax exemption than they would without the tax exemption.

“In Europe, there is a p a u c i t y o f transactions. M&A deals have been insuﬃcient, hence the search in emerging markets like Nigeria”, Douglas said.

According to him, there is less scrutiny by tax authorities where the lower rate is applied on debt payments to foreign investors. Of the seven biggest alternative ﬁnancing investment deals in Africa recorded in 2014, Nigeria accounted for three.

About €50 billion in n e w m o n e y f ro m Europe was raised for investing in the last two years. This year, about €15 billion has b e e n m a d e accessible. There’s also an increase in the scale of Chinese appetite for debt in the African market. More funding is also arising from Sovereign Wealth Funds, www.instinctbusinessmag.com

Nigerian companies are also seeing the low rates in Europe as an opportunity to reﬁnance some of the debt in their capital structure. “Nigerian companies have the option to access cheaper long term funds due to waiver of taxes in corporate d e a l s ”, s a i d Fa t a i Folarin, lead partner, Ta x & R e g u l a t o r y Services at Deloitte.

markets, hedge funds are becoming more sanguine about investment return prospects in such markets. “A lot of them see this as a huge oppor tunity to enter into the emerging markets as a result of their weakened currency”, Douglas said.

P E b a c k e d establishment generates 129% more revenue and 257% more employment growth than non PE counterparts, according to Douglas.

AIICO Insurance Expands Operations in Nigeria strengthen its information technology platform to achieve greater efficiency in claims processing and customer services. “AIICO Insurance Plc offers life and non-life insurance products to i n d i v i d u a l s, h o u s e h o l d s, a n d businesses with a focus on value c re at i o n” s a i d Ed w i n I g b i t i , Managing Director, AIICO Insurance Plc. “Partnering with IFC will help AIICO expand its activities further to meet the needs of the consumers who require more options. It will i m p r o v e A I I CO ’s o p e r a t i o n a l efficienc y and strengthen the economic security and prosperity in Nigeria.” IFC’s global insurance strategy aims to increase the penetration of insurance in underserved markets, promoting diverse products and developing long-term partnerships with institutions that can help expand its developmental goals.

Edwin Igbiti, Managing Director, AIICO Insurance

IICO Insurance Plc, has signed a $20 m i l l i o n convertible loan with IFC, a member of the World Bank Group at AIICO Corporate head oﬃce in Lagos to support its expansion activities across Nigeria. The expansion of insurance services www.instinctbusinessmag.com

help increase economic security, and creates the development of new asset pools that can be invested in other ways to support economic development, including job creation.. AIICO Plc will use the loan facility to increase its agency network and retail centers and increase its reach and footprint across the country. The facility will also enable AIICO further

Eme Essien Lore, IFC Countr y Manager for Nigeria said, “Availability of insurance coverage is an important enabler of managing economic risk and promoting security of consumers and private businesses. IFC’s support to AIICO’s expansion reinforces our commitment to improving social stability and economic growth in Nigeria.” IFC’s encourages a diverse range of insurance products, including property, health, agro, life, micro insurance and pensions. IFC mobilizes additional resources t h ro u g h g l o b a l a n d re g i o n a l insurance companies, other developmental ﬁnancial institutions, and ﬁnancial investors.

FBN Insurance Nigeria Completes Acquisition of Oasis BN Insurance Limited, a subsidiary of FBN Holdings Plc has completed the acquisition of the remaining 28.8 per cent equity interest in Oasis Insurance Plc. FBN Insurance had initially acquired 71.2 per cent equity interest in Oasis Insurance through a block divestment in February 2014, the company subsequently made a mandatory takeover bid for the remaining 28.8 per cent equity interest. By the close of the takeover bid on July 31, 2014, FBN I nsurance received a total of 1,289,493,953 ordinar y shares bringing its shareholding in Oasis Insurance to approximately 91.1 per cent. Thereafter, FBN Insurance elected to exercise its rights under Section 146(2) of the Investments and Securities Act to compulsorily acquire shares belonging to the

minority shareholders having crossed the 90 per cent threshold. At the end of the 20-day statutory notice period, FBN I nsurance i n c re a s e d i t s h o l d i n g s by a n

Bello Maccido, Group CEO, FBN Holdings,

a d d i t i o n a l 2 2 , 6 0 3 , 6 1 7 s h a re s bringing its holdings in Oasis Insurance to approximately 91.4 per cent. The company thereafter transferred

the sum of N310,649,730 to FBN Registrars (as consideration for the outstanding 560,808,895 shares or 8.6 per cent) to keep in trust for shareholders who are yet to tender their share certificates. Consequently, FBN Insurance now holds 100 per cent equity interest in Oasis Insurance. The acquisition would enable the FBN Holdings to deepen its insurance business as FBN Life seeks to harness Oasis Insurance's relative strengths, thereby creating synergies for the development of the insurance business. Also, Oasis Insurance is expected to l e ve ra g e F B N H o l d i n g s ' w i d e network, including the international spread of its flags. Speaking on the acquisition, the Group Chief Executive Officer, FBN Holdings, Bello Maccido, noted that the group would leverage on its acquisitions to consolidate its performance.

Wema Bank Nigeria Appoints Four New Directors recent achievements whilst positioning itself for further growth.

ema Bank Plc has appointed M s . Abolanle MatelOkoh and M r . Babatunde Kasali as Non-Executive Directors; Mrs. Folake Sanu and Mr. Wo l e A k i n l e y e a s E x e c u t i v e Directors as new directors to its Board. The Managing Director of the Bank, Segun Oloketuyi, said the four appointments will bring to 14, the number of Directors on the Board,

and expressed conﬁdence of quality representation to the board as well as support the management of the Bank in its drive to build upon its

He also thanked the outgoing direc tor, M r. Ramesh Hathiramani for his immense contributions and value he brought to bear during his time on the Board. The new directors come with over 10 decades of combined experience and have made signiﬁcant contributions to the banking industry and the growth of the nation's economy.

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Maintaining a Healthy Life Style with Tomato The an oxidants present in tomatoes are scien fically found to be protec ve of c a n c e rs , i n c l u d i n g colon, prostate, breast, endometrial, lung, and pancrea c tumors. Lycopene, a flavonoid an oxidant, is present in tomato. Together with carotenoids, lycopene may help protect cells and other Catherine-Krobo-Edusei-Benson structures in the omato is a pulpy nutri ous fruit human body from commonly eaten as a vegetable and harmful oxygen-free radicals. originated from The vegetable contains very good the Mayans. The levels of vitamin A, and flavonoid an to m ato i s oxidants such as α and ß-carotenes, consumed in xanthins and lutein. d i ve rs e way s These pigment compounds are found including raw, as to have an oxidant proper es and an ingredient in take part in vision, maintain healthy many dishes, sauces, soups salads, mucus membranes and skin,and bone and drinks. While it is botanically a health. fruit, it is considered a vegetable for Fresh tomato is rich in potassium. culinary purposes. Potassium helps control heart rate This humble vegetable of Central and blood pressure caused by America has seized the a en on of sodium. millions of health seekers for its Selec on and storage incredible phyto-chemical proper es. Fresh ripe tomatoes feature beau ful Botanically, tomato belongs to bright-red color Solanaceae or nightshade family of and have a rich common vegetables, which also fruity flavor. In includes chili peppers, potato, the markets, buy fresh, firm, eggplant, etc. Its scien fic name is u n i fo r m s i ze d known as Lycopersicon esculentum. fruits. Avoid Health benefits those with Tomatoes are an excellent source of wrinkle surface, an oxidants, dietary fiber, minerals, discolored spots, and vitamins. Die cians and cuts and too so nutri onists o en recommend them and mushy. in cholesterol controlling and weight Firm, yellow reduc on diet-programs. fruits can be www.instinctbusinessmag.com

placed in cool, dark place at room temperature for 2-3 days. However, ripe tomatoes are one of the easily perishable vegetables and should be stored inside the refrigerator. Use them while they are fresh to gain full beneﬁts of vitamins and an oxidants. Prepara on and serving methods Pests are common in tomatoes. Hybrid varie es are usually subjected to insec cide sprays. Therefore, wash them thoroughly in the cold running water in order to remove dust, soil a n d a ny i n s e c c i d e / f u n g i c i d e residues. To prepare, discard stem and top calyx end and cut into desired halves, cubes, slices, etc. Peel the skin and puree its juicy pulp. Some prefer to de-seed the fruit before adding in cooking. About the Contributor Catherine Krobo Edusei- Benson is the CEO of Eden tree Ltd, an agrocompany that has been in the business of producing vegetables and herbs, targeted primarily at middle and upper class urban and the expatriate community for the past 17 years

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Africa’s Trade Growth May Hit 4.7 Percent this Year despite Global Economy Uncertainties espite expressed uncertainties on the state of the global economy in 2015, the United Nations Wor ld E c o n o m i c www.instinctbusinessmag.com

Situation and Prospects 2015 (WESP) report has stated that trade growth is expected to pick up moderately with the volume of world imports of goods and services projected to grow by 4.7 per cent in 2015.

Indeed, the report added that in 2015, ﬁscal tightening in most developed economies would continue, although the pace of tightening is expected to slow. Speciﬁcally, the report noted that

In particular, the report stressed t h a t macroeconomic p o l i c i e s worldwide should be aligned t o w a r d supporting robust and balanced growth, c r e a t i n g productive jobs, and maintaining l o n g - te r m economic and financial stability. " M a n y developing countries and economies in transition appear vulnerable to a tightening of global financial conditions, as well as a further aggravation of geopolitical tensions and an escalation of the Ebola epidemic. "The ongoing high currentaccount deficits in some large e m e r g i n g economies, such as Brazil, Indonesia, South Africa and Turkey, remain a concern, along with rapid credit growth in several emerging economies. the euro area's recovery remains precarious, adding that while the sense of crisis has dissipated, great risks remain. The underlying growth momentum in the euro area has decelerated to the point where an exogenous event could lead to a return to recession. To reduce risks and meet challenges, the report says, it is imperative to strengthen international policy coordination.

"A sudden change in market sentiment, similar to mid2013 and early 2014, could trigger a painful adjustment process, especially in countries with large external deﬁcits. A broad-based downturn in emerging economies, particularly a sharp slowdown in China, would weigh on economic performance worldwide", the report stated. Indeed, there are expectations that the strong US dollar is expected to remain the dominant trend on foreign exchange markets.

are positive and moving in the right direction which points to the potential for a gradual return to consistent economic growth," said Pingfan Hong, Director of the Development and Policy Analysis Division for the UN Department of Economic and Social Affairs, "many risks and uncertainties could dash efforts to get the global economy on track and moving forward.” The report added that among the developing countries, Africa's overall growth momentum will continue, with GDP growth expected to accelerate to 4.6 per cent in 2015 and 4.9 per cent in 2016. "East Asia will remain the fastestgrowing region, and is projected to see stable growth of 6.1 per cent in 2015 and 6.0 per cent in 2016. Economic growth in South Asia is set to gradually pick up, while economic growth in Latin America and the Caribbean is projected to moderately improve. In the CIS, prospects are weak with near-zero growth expected in the Russian Federation. "A further risk lies in extreme volatility in oil prices which can have significant impacts on both oil exporting and oil importing countries. The crisis in Ukraine continues to have major regional macroeconomic repercussions. The situations in Iraq, Libya and the Syrian Arab Republic continue to hamper economic and human development regionally and remain major sources of uncertainty. On activities within developing countries and economies in transition, the report stated that growth rates in developing countries and economies in transition diverged more during 2014, as a sharp deceleration occurred in many large emerging economies, particularly in Latin America and the Commonwealth of Independent States (CIS).

"While some economic indicators www.instinctbusinessmag.com

Sterling Bank Nigeria Deploys Additional 5,000 POS terminals nationwide infrastructure that will support the expansion had been put in place. Atilola said: “We have almost doubled our ATM counts by September 2014. We started last year with 300 ATMs but aimed to close the new yea r with about 700. This will involve additional d e p l o y m e n t o f AT M s a t existing locations and partner locations.’’ He said apart from facilitating cash withdrawals, customers could conﬁrm their account balances at the ATMs. Other facilities available to users, Atilola said, included cash transfers (inter and intra bank), payment of bills such as electricity and DST V and buying

he Sterling Bank says it has concluded arrangements to d e p l o y additional 5,000 Point of Sales (POS) terminals to boost transactions. Shina Atilola, Group Head, S t r a t e g y a n d Communications at the bank, said that the POS would be deployed across the country.

POS is a machine used to accept cards for payment of goods and services. “We will deploy additional 5, 000 POS terminals in the country to facilitate transactions,’’ he said. Besides, Atilola said additional Automatic Teller Machines (ATM) galleries would be provided in strategic locations nationwide. According to him, a robust

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of recharge cards for phones. “As a ﬁnancial institution poised to enrich lives, Sterling Bank will continue to maintain high quality ATM services by s u p p o r t i n g t h e interoperability of the payment system in the country. “We will continue to deploy more ATMs to promote the cashless policy of the CBN and ensure that our customers are provided enough platforms for their ﬁnancial transactions,” Atilola said.