Instinct Business - Issue 5 | 2015 by Instinct Wave

CFO I N N OVAT I O N D I N N E R

A Unique Networking Platform For Ghanaâ&#x20AC;&#x2122;s Financial Experts Tel: 0263730533 email: anaphtal@instinctbusinessmag.com | cfo@instinctbusinessmag.com www.instinctbusinessmag.com Powered by:

Contents

www.instinctbusinessmag.com

We Have Lowered Our Margins To Keep Our Prices Aﬀordable And Uniform Mahesh Melwani; Melcom Joint MD

12.

Ghana Oﬀers Us A More Enabling Business Environment Ramesh Sadhwani; Joint MD, Melcom

24. The Rise Of Shopping Mall Investments In Ghana

16.

Tonyi Seneyah; CEO - Horseman Shoes

20.

Oladimeji Adedara, CEO Capstone Capital

37. 46. 18.

CEO Of First Rand, Sizwe Nxasana

Group Publisher Akin Naphtal Crea ve Oﬃcer Lawrence Otoo

26. Ac ng Group Editor Kehinde Olesin IT& Research Henry Gyedu

Kenya, Uganda, Nigeria ,South Africa top TEF’s $100m Entrepreneurship Programme

Ruth Porat, Google’s New CFO

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

PUBLISHER’S THOUGHT

Tax Policies: A New Africa Beckons the eﬀectiveness and transparency of tax administration systems which is widely accepted as a key step to achieving the UN M illennium Development Goals.

Akin Naphtal Akin Naphtal Group Publisher Group Executive Publisher

ax has been for ages. Globally, tax policies have helped inculcate m o n e t a r y discipline and build government revenue purse, of co u r s e Af r i c a i s n o t l e f t o u t. Building tax administration capacity is needed to help spur development in Africa. Action is being taken, but more work is needed. More tax revenue would not only help the governments of these countries function and pay for goods and services, but would open the way for other market and state re fo r m s t h a t wo u l d p ro m o t e economic, social and environmental development. One way is to generate more growth, but as many of the countries concerned lack the resources to administer tax, this approach may not be enough, that is, not unless eﬀorts are made to improve the eﬀectiveness of tax administration systems at the same time. That means strengthening the capacity and resources needed for better taxpayers' services and enforcement, reviewing tax structures, and investing in skills and management systems needed to produce corruption-free tax systems. Africa can help itself by improving

I ndeed, as OECD data shows, tax/GDP ratios in sub-Saharan countries where tax administration reforms are being implemented now exceed 16.8% of GDP, which was the average for fragile and lower income countries. In 2011, The International Tax Dialogue, a global initiative based at the OECD and involving the EU, the IMF and the World Bank, among others, has undertaken a survey of 15 sub-Saharan African revenue bodies–Benin, Botswana, Burundi, Ethiopia, Ghana, Kenya, Malawi, Mauritius, Rwanda, Senegal, Sierra Leone, South Africa, Tanzania, Uganda and Zambia. All revenue bodies surveyed, with the exception of Burundi, indicated that they have a separate and substantive in-house IT function, and some are developing or plan to implement integrated tax administration systems for self-help services such as online registration, ﬁling and payment. Further investment in administrative systems would undoubtedly help improve treatment of taxpayers too. As the survey shows, all revenue bodies, except South Africa, assign identiﬁcation numbers ostensibly across all tax types, including customs. VAT is a feature across all countries surveyed, with a few countries using two thresholds, one for the sale of goods and another for services. In

fact, indirect taxes contribute the highest proportion of revenue in seven of the countries surveyed, with direct taxes in six countries and international trade taxes in two countries. Institutional arrangements are another issue which can have an impact on the eﬀectiveness of tax administration. The revenue bodies in most of the countries surveyed follow a relatively uniﬁed, semiautonomous model, meaning that they have considerable freedom to interpret tax laws, allocate resources, design internal structures and implement a p p ro p r i a t e h u m a n re s o u rc e management strategies.

As for organisational arrangements, most are hybrid in nature. In line with current practice in tax administration, a number of revenue bodies have set up a headquarters function to provide operational policy guidance to field delivery. Real efforts are evidently underway to build effective tax administrations in several African countries, which is good news for long-term economic development. For instance, Nigeria the most populous nation in Africa (though not part of the OECD survey), has in recent years fixed many gaping holes that have hitherto disturbed tax policies. A state like Lagos State has been able to generate considerable revenue from tax. It is a major undertaking, but if countries in sub-Saharan Africa can use the information to help them improve their tax policies and their development paths at the same time, then the task will be worth it.

Standard Chartered Appoints William Thomas Winters As New Group CEO Executive Officer, Sands, he said: “Sands has made an immense contribution to the success of the Group and has had a transformative impact during his 13 year tenure as both Group Chief Executive and p re v i o u s l y a s G ro u p Fi n a n c e Director. “Since becoming Group Chief Executive in 2006, the Group has more than doubled in size, consistently profitable and has returned over $12 billion of dividends to shareholders. His leadership and insight, over a period of huge change and challenge for the entire industry, ensures he leaves the Group well placed to achieve its full potential as one of the world’s leading financial institutions.”

t a n d a rd C h a r t e re d Bank has appointed William Thomas Winters as the new Group Chief Executive Officer effective from June 2015 as the c u r r e n t C E O Pe t e r Sands steps down from his position. The change, which also extended to the topmost levels, would see the current Chairman, Sir John Peace, step down in 2016, as he voluntarily indicated, allowing time for Bill Winters to transition into his new role and ensure board level continuity. Meanwhile, in a statement from the bank, Winters’ yearly base salary on resumption as the Chief Executive, is put at 1,150,000 British pounds, as well as benefits including an expenses allowance, pension provision, medical cover and life assurance, as well as receiving a fixed pay allowance equal to one times base salary delivered in shares which

can be realized over five years. Also, Sands will continue to receive his current salary, pension and benefits up until 31 December 2015 and on termination, a payment in lieu of notice equal to just under two months’ salary, pension and other benefits. The payment sum will be subject to a duty to mitigate in the event that he finds alternative employment. Speaking on the proposed changes, the bank’s Chairman stated that “Bill Winters is a globally respected banker and has the right experience and skills to drive the Group’s new phase of growth. “He brings substantial financial experience from leading a successful global business and has an exceptional understanding of the global regulatory and conduct environment. He’s also a proven leader with a strong track record in nurturing and developing talent.” In commending the current Chief

Meanwhile, further announcement on the bank’s changes to its broader board composition in line with its multi-year succession plan include Group Executive Director and Chief Executive Officer, Asia, Jaspal Bindra, after a long and successful 16-year career with the Group, stepping down from the Board, with effect from 30 April 2015 and will be leaving the Group shortly thereafter. Bindra will continue to receive his current salary, pension and benefits up until February 25, 2016 and is eligible to a statutory payment on termination provided for by Hong Kong employment law, which is e q u i v a l e n t t o a p p r ox i m a t e l y $35,000. The Senior Independent Director, Ruth Markland and Independent Non-Executive Director (iNED), Paul Skinner, who have both served on the board since November 2003, will also retire by the end of 2015. However, Ruth will continue in her position until she retires but will step down from her role as Remuneration Committee Chair with effect from the conclusion of the yearly general meeting on May 6, 2015.

www.instinctbusinessmag.com

Dangote Cement Expands Its Footprint In Africa

angote Cement has r e c o r d e d signiﬁcant strides in its African expansion project as the cement c o m p a n y ’s n e w plants in Senegal and Cameroun have commenced operations. Dangote Cement plants in Ethiopia and Zambia are expec ted to star t production next month even as the company recorded a proﬁt of N159 billion in the year ended December 2014. The new Senegalese plant, located in Pout district, about 75 kilometers from Dakar, the country’s capital, is expected to create more than 1,000 jobs, with a total produc tion capacity of 1.5 million tons annually. With the new plant, the company hopes to improve the country’s cement production capacity with an additional 1.5million tons, while serving an export market demand of

www.instinctbusinessmag.com

two million tons along the Mali axis. Country Head, Dangote Industries, Senegal, Luk Haelterman disclosed that the Group has invested about $300 million in the cement plant, adding that actual production and sales started on January 10, 2015. He said ’in this country, Dangote will not only stop at producing cement, we a l s o h ave h e l p e d b e yo n d cement. This is the idea of the owner, to become a pan-African enterprise. Senegal is a market with overcapacity of cement, because it had two cement factories before now. But today, Dangote has become the biggest and best because we have and produce the 42.5R only, which is better than what we met on ground, which is the 32.5R’. Meanwhile Dangote Cement has reported a proﬁt after tax (PAT) of N159.5 billion for the year ended December 31, 2014. Executive Director, Mr. Devakumar Edwin, “I am proud to report that we commissioned nine million tons of

new capacity at our Obajana and Ibese plants and this puts them amongst the biggest cement plants in the world. Outside Nigeria, we opened up new factories in South Africa and Senegal in 2014 and our grinding plant in Cameroon has just become operational. We have started commissioning our plants in Zambia and Ethiopia and are on track to open more factories in Africa in the coming years. The success of our expansion is evidence that we are delivering on our strategy to become e a much larger, more international company.” “Despite the challenging conditions of the erratic fuel supply and prolonged rainy season that affected revenues and profitability in Nigeria, the fact that we have increased our dividend payout ratio is a clear sign of confidence in our future.” Dangote Cement ended 2014 with a revenue of N392 billion up from N386 billion in 2013. Administrative expenses rose from N25.9 billion to N274 billion, while sales/distribution expenses increased from 35.6 billion to N37.4 billion. Finance cost soared by 140 per cent from N13.7 billion to N32.9 billion. Profit before tax stood at N184.7 billion, compared with N191 billion. But the company paid an income tax of N25.2 billion in 2014, as against a tax credit of N10.5 billion 2013. The N25 billion tax charge resulted from the expirations of the tax exemptions on some lines of the company's business. Consequently, the company ended the year a PAT of N159.5 billion, compared with N201 billion in 2013. Based on the performance, the directors have recommended a dividend of N6.00 per share, which translates to a yield of 3.9 per cent and payout ratio of 63.5 per cent.

Accra Brewery Inaugurates $100m Expansion Project in Ghana While noting that the expansion project lends credence to Ghana’s p o s i t i o n a s a d e s t i n at i o n fo r international business investment, he commended ABL and its parent company, SABMiller, for reposing conﬁdence in the country with such staggering investment, in the face of erratic power supply.

ccra Brewery Limited (ABL), a major player in the alcoholic and non-alcoholic industry in Ghana, has oﬃcially inaugurated the ﬁrst phase of its $100 million brewery expansion project in Accra. The expansion project comprises two new state- of- the-art packaging lines; expansive warehouse with hard stand and loading bay; material storage areas and two additional power generators.

demolishing 12 residential buildings, 2 oﬃce structures and a warehouse in the process. He stressed that revving up ABL’s production capability for both beer and soft drinks to meet the company’s projected sales growth, the expansion will also position the company to work in a most environmentally friendly and energy eﬃcient way. “In general terms this expansion in our production capability will allow ABL to truly satisfy the demand of its customers and consumers, and this in turn will drive growth and stimulate increased utilization of our key local raw material inputs, namely whole Maize, Maize Grits, Cassava, Rice and Sorghum,” he observed.

Others include ten new beer storage vessels; two additional water storage tanks; sidewalks on the location road as well as a new entrance of gate house with oﬃces. The Board Chairman of ABL, Dr Charles Mensa reaﬃrmed ABL’s inordinate desire to lead the path of sustainable and responsible corporate governance, one that is consistent with the fundamental principles of its parent company, SABMiller plc.

He emphasized that the completed phase has created almost 100 new jobs for highly trained and skilled technical personnel who will complement the company’s existing permanent workforce of 503, adding, these numbers will increase when the second phase of the project is completed.

Chronicling the background to the project, Anthony Grendon MD, ABL, indicated that after several attempts at acquiring a large tract of land needed for the project proved abortive, ABL settled on its own current location for the project,

In the Keynote address, on behalf of the President, Vice President Kwesi Bekoe Amissah-Arthur described the project as a major boost to the country’s quest to consolidate its global competitiveness in the manufacturing sector.

‘‘ABL’s investment of almost US$100 million in this ultra-modern production facility to double its production capacity has come at a time that Ghana is afflicted by severe power shortage which is crippling the business environment. It is heartening to see that this did not act as a deterrent but ABL soldiered on with its expansion plans,’’ he indicated. He reiterated the government’s commitment to addressing the challenges on the energy front, stressing that the government with both the World Bank and the United States government, is set to devise and execute energy sector reforms that will ensure that this unfortunate and recurrent situation is permanently remedied. While commending ABL for increasing the use of locally sourced raw materials for its brands, the President also reiterated government ’s commitment to providing the enabling environment and incentive packages for industries to thrive and compete on the international market. Minister of Trade and Industry, Dr. Ekow Spio Garbrah commended and congratulated ABL and SABMiller for their outstanding show of confidence and efforts at creating local value and jobs in Ghana, pledging his ministry’s support in any way possible.

www.instinctbusinessmag.com

Mahesh Melwani; Joint Managing Director- Melcom Group of Companies

www.instinctbusinessmag.com

We Have Lowered Our Margins To Keep Our Prices Affordable And Uniform Mahesh Melwani; Joint MD- Melcom Group of Companies a h e s h M e l wa n i describes himself as tough but nice. A r s t encounter with him actually says it all, as one can't help but notice his very rm, candid and yet polite personality. Having begun his career in banking about three decades ago, he ventured into import & export trade in 1986 whe n h e jo ine d Me l co m. Hi s immense contributions to the group has led to the expansion of the Melcom department stores. As a Joint Group Managing Director, his leadership cuts across the various Companies under the Melcom Group. In an exclusive interview with InstinctBusiness, Mr. Melwani talks about the secret behind Melcom's success, their challenges, projections and other sundry issues What are your speci c roles as Joint MD for Melcom Group? I handle the importation, the retail front, the bakery section as well as insurance and banking related aspects of the business. How do you integrate your roles? We carry out our separate roles, we have meetings daily, he seeks my opinion and I seek his. In actual fact our oﬃces share a door that is usually opened, and so we get to rub minds easily, sometimes if there is a meeting that demands my attention, I follow the discussion right from my desk, especially when I am quite busy. However, we both have our teams, and we execute our

various projects freely. How are you able to manage uniform pricing despite the fall of the cedi? Uniform pricing has been our policy from the inception of Melcom. We cannot have different prices for different stores, so we absorb all the transportation cost, whether it is Accra, Kumasi or Bolga Tanga. We have lowered our margins to keep our prices affordable. We do not take advantage of the free fall of the cedi, we only stick to the percentage of the currency devaluation. Again there are so many items that we sell, so we average out the costs, we lose out on some products and make gains on some. We do not force our products on consumers In about three decades, what are the accomplishments you are most proud of? Our business started from one shop, today we have 31 shops. By the end of April we'll be adding two more shops and we will be counting 33 shops. We have also made a good name for ourselves. What are some of the factors that have made melcom a house hold name in Ghana We are trusted, people know that they won't get cheated at Melcom. We believe that a good name and reputation is far better, so that has guided us so much . Most i m p o r t a n t l y, M e l c o m i s fo r everyone, not just the elites. Our products serve all kinds of people in society. What are some of the ongoing expansion projects at Melcom?

Ongoing, is the expansion of the Ashiaman shop and a new shop at East Legon. We are in the process of a 300 000m2 ware house in Tema. We have acquired lands in Achimota and Wa and we are looking at other places as well. You initiated the Melcom Made in Ghana Festival three years ago, how impactful has it been? It has given the local suppliers the medium to sell their products. It was borne out of the government's campaign against the importation of goods and it has indeed helped in reducing importation . The unfortunate issue we have is that local suppliers focus on the production of food and drinks, and a lot of them are not registered with the food & drugs board. We are so happy to sell made in Ghana goods in our shops, but we cannot sell these products if they are not registered with the Standard Boards Authority. So apart from food and drinks, which other products in your shops are made in Ghana? Our Aluminium pots, plastics, Unilever products, Nestle products are all made in Ghana goods. We have to impor t our furniture, because the apart from the fact that the ones made in Ghana are not up to international standards, we need varieties. The local furniture makers are very expensive and their styling is not fantastic. They do not make furniture for retailing. What is Melcom's market share in Ghana's formal retail sector? We pride ourselves as the market www.instinctbusinessmag.com

leader in formal retail sector. Owing to the fact that we are represented in all the regions in Ghana except one. We have competitors quite alright, but they have the elites mainly as their targets. Our target ranges from the low end users to high end users. Every Christmas for instance, we have about 3000 school children shopping at Melcom. How will you rate the satisfaction your customers get from shopping at Melcom? Majority of our customers are s at i s ﬁ e d. We h ave a m e d i u m through which they send their concerns to us and we do our best to solve them eﬀectively. What is the rationale behind the Melcom loyalty card? It is our simple way of rewarding and saying thank you to our loyal customers What are some of the lessons you have learnt over the years managing Melcom? The biggest lesson I have learnt is patience. Doing business in Ghana is

www.instinctbusinessmag.com

entirely different. While it takes one day to execute a project elsewhere, it takes 7 days to execute in Ghana. So I have learnt to be patient for things to get done. What has been Melcom's most challenging moment? The collapse of the Achimota shop in 2012. Up till now we are still taking care of the dependants of our staff who lost their lives in that tragic incident. It has been our most trying moment. But we have learnt our lessons from that tragedy. Where do you see Ghana's retail sector in about ve years The retail sector in Ghana's capital City Accra will be saturated in five years, since all the foreign retailers are concentrating on Accra, but for other parts of Accra, I see gradual growth. What are your projections for Melcom in the next ve to ten years? Our projection is to open 4-5 stores on a yearly basis.

What kind of Leader are you? I am considered tough, yet nice and fair. When something is wrong, I ensure it is rectiﬁed fairly, I am approachable, but I do not expect to be approached with trivial or silly things. How do you manage family and work? I spend a lot of time at work, sometimes I have to be at work on Sundays, and during the weekends I am out of Accra overseeing the shops in the other regions. However I try to spend quality time with my family when the opportunity arises, by taking them out on picnics and memorable outings. If you had three wishes what will they be? I wish that by the year 2020, melcom will have 50 stores, I also wish that our next generation will carry on with what we have done and grow the business further. My last wish is speedy recovery for Ghana's Cedi and power crisis.

John Watson , Chevron chairman and CEO.

Chevron Reafrms Strategies, Financial Priorities And Growth Outlook h e v r o n Corporation executives have expressed confidence in the long-term energy business and highlighted its growth outlook through 2017 at the company's annual security analyst meeting in New York. The company executives also outlined near-term actions to address the recent decline in commodity prices. "The fundamentals of the oil and gas business remain attractive for our company and investors, as our products are vital to a growing world economy," said John Watson , Chevron's chairman and CEO. Watson added, "We are wellpositioned to manage through the recent drop in commodity prices and are taking several responsive actions, including curtailing capital spending and lowering costs." "Over the next few years, we expect to deliver significant cash flow growth as projects currently under construction come online. Our

i nte nt i o n i s to d e m o n s t rate performance that will allow our 27year history of successive increases in our annual dividend payout to continue," Watson added. George Kirkland, vice chairman and executive vice president, upstream, reviewed Chevron's upstream portfolio, strategies, and historical performance, including the company's consistent exploration and resource capture success over the past decade. He also highlighted the upstream segment's superior financial performance relative to industry peers, as well as its leading competitive cost structure. "This was the fifth consecutive year we have led the integrated peer group on earnings per barrel," Kirkland said. "Our base business is performing exceptionally well and is profitable, even in a lower-price environment. Our large, diverse resource base allows us to be very responsive to market conditions, with flexibility to select only the most attractive opportunities to move forward."

Jay Johnson, senior vice president, upstream, provided an overview of the specific actions being taken to manage capital outlays, lower costs and improve operating efficiencies, all of which will contribute to improving upstream cash flow. He also provided a comprehensive update on Chevron's deep queue of projects and other future investment opportunities, emphasizing their strong cash and value generation potential. "We continue to make steady progress on our LNG and deepwater developments, and will continue to ramp-up production from our shale and tight assets, particularly from our very attractive Permian Basin acreage position," Johnson said. "We expect to achieve 20 percent production growth by 2017, a rate which is simply unmatched by our industry peers. More importantly, our new production is expected to have considerably higher margins than in our existing portfolio." He added.

www.instinctbusinessmag.com

Ramesh Sadhwani; Joint Managing Director- Melcom Group of Companies

www.instinctbusinessmag.com 12

Ghana Offers Us A More Enabling Business Environment Ramesh Sadhwani; Joint MD- Melcom Group of Companies s Joint Group Managing Director of the Melcom Group of Companies, Mr.Ramesh Sadhwani overlooks Melcom's purchases of electronics and electrical merchandise, plastic factory, construction, new projects, the after sales- service centre, logistics and the IT Department. With his experience across Marketing, Business Administration and Computer Science within United S t a te s, U n i te d K i n g d o m a n d Nigeria in three decades, he has contributed to the establishment of the Industries and the sourcing of several global electronic brands for distribution through the Melcom department stores. In this Exclusive Interview with InstinctBusiness he opens up on why Melcom is not in Nigeria despite being a very big market, the other arms of the Group, his views on Ghana's retail sector and other sundry issues. Excerpts What is your leadership style? It's a combination of team work, trust in the people I work with, good guidance and supervision and working towards perfection What are some of the advantages of having two MDs in an organization? You get to be more eﬃcient, having two MDs at Melcom has made each focus on more speciﬁc areas of our operations. We get to learn new ideas, and work with a large team and we get to look in-depth into a lot of things

What are the factors that have made Melcom a household name? Aggressive pricing, uniform pricing nationwide, promotions, wide varieties of goods ,and the fact that we can cater for the needs of all classes of society. Be it the school children, low income earners or the upper class. What are the accomplishments you are most proud of? The fact that we are in 9 out of 10 regions in Ghana. Secondly, the fact that most global brands approach us for collaboration due to our network and our spread across the different demographic groups of the society. And that we are able to handle the back end logistics ourselves. We do not our outsource these logistics, and this cuts down our cost so that we are able to pass it on to the customers in the prices of goods. Why is Melcom not in Nigeria, Considering the fact that, it is a bigger market? This is primarily due to the unfriendly high import duty tariffs on impor tation, and the way business is done in Nigeria. How do we get goods on our shelves, if so many categories of product are prohibited from import? We cannot achieve consistency with our pricing if we move to Nigeria. Maybe someday when policies are reviewed and the ECOWAS policies are working equally across the region, we will consider going to Nigeria. Ghana offers us a more enabling business environment which is quite different from Nigeria.

Which other African Countries are you considering then? The potential countries could be Gambia and Liberia, but for now there is alot to explore in Ghana, and we are focused on the Ghanaian market. What are some of the challenges that come with running the plastics factory (Century Industries)? Electricity, labour, maintenance and ineﬃciency of productivity. The labour law in Ghana ensures that we pay a ﬁxed salary irrespective of the productivity level of the worker. If the individual gives me 60 percent productivity, he is paid the same salary for 30 percent productivity. This generates some sort of complacency on the part of workers, because they know they will be paid irrespective of how productive they are. Are your Plastic production for Melcom alone? No, we sell to the open market and expor t to other neighbouring markets Is your service centre solely for Melcom Customers? It is focused more on Melcom customers, but not limited to them. We charge those who buy from other shops higher as those items are not covered under our or the manufac turers we represents warranty. However, focusing more on Melcom saves us of a lot of technical and warranty problems. For our customers, we service their goods at no cost if its within warranty period. But if a consumer misuses a product, the warranty will

www.instinctbusinessmag.com 13

of time, when paying the supplier, the rate has gone up and your margins have been squeezed down. So if we do not sell the goods fast enough, our profit margins get very low or disappear. This means we have to change our prices at all times, but then again we cannot adjust our prices every other time, as this will go against our uniform pricing goal. So we end up bearing the loss . We can only update pricing so often and hence our margins get reduced significantly. What are some of the lessons you have learnt managing Melcom? To be ver y patient. There is someone who is always ready to get under your skin. Dealing with that calls for a lot of patience. I have also learnt to lead by example. I do not close by 4pm and expect my staff to close at 6pm. I have learnt that to get the best from your staff, you must behave the in a way you expect them to behave and work

not cover the servicing. Do you rent out shopping space at Melcom Plus? Yes we do, only to brands that are not in direct competition or where we cannot fully represent their range with us. For instance we have Telefonika, Samsung and some other brands. We cannot specialize in everything, so its better we rent out the space for someone else to do it Does the Melcom Loyalty Card have any restrictions? For supermarket items, A customer must spend a minimum of GHC50 www.instinctbusinessmag.com 14

to enjoy Its beneﬁts of a discount. But for electronics, furniture and other expensive items, there are no restrictions. Where do you see the retail sector in two to three years? The sudden upsurge of retail malls will reduce in about three a few years and some retailers will struggle What are some of Melcom's challenging moments? Devaluation of the currency has been a big challenge. We Work on the supplier's credit a lot most times, after selling the goods over a period

H ow m a ny w a l k - i n s d o e s Melcom get daily? In a day we have approximately 40,000 walk-ins across the nation, during Christmas, it can double, and every month we can get between 800 000 to 900 000 walkins. How do you joggle between family and work? I do not take work home, when I am with the family, I try as much as possible not to discuss work. If you had three wishes what will they be? Good health, wealth and happiness.

Barclay's Bank Kenya Records 10% Increase In 2014 Pre-tax Prot arclays Bank of Kenya says its pretax profit rose 10 percent to Sh12.3 billion in 2014, largely driven by growth in net interest income and lower costs. The lender saw its net income rise to Sh8.39 billion in the 12 months through December 31, 2014 from Sh7.62 billion a year earlier. The bank attributes this to diversification of its produc t offering. “We have dedicated a significant portion of resources over the past two years towards improving our systems and diversifying our product por tfolio in order to provide end-to - end financial solutions and enhance our customer experience,” said Jeremy Awori, Barclays Bank of Kenya’s Managing Director.

The bank said net interest income rose four per cent to Sh19.6 billion but its impact was curbed by a drop in non-interest income. The lender saw operating costs fall six per cent to Sh14.6 billion. Its cost-to-income ratio fell to 52 per cent from 53 per cent a year earlier. M r Awor i said the bank was increasing its presence in markets, it traditionally had little or no presence as a result of demand from consumers. “We recently launched our mortgage centre, which is essentially a one stop shop for everything to do with mortgages because we realised that our clients were asking about this service,” he said. “Similarly, we are increasing our involvement with SMEs and our product oﬀering in this segment because there is signiﬁcant opportunity for growth in this market.”

for a long time, maintained its traditional business model even as other lenders made drastic changes including adopting agency banking and moving downstream. However, the bank now seems to be repositioning itself to play a larger role in the country’s growing financial sector with new offerings already launched in the market. “We have introduced new revenue generating streams such as banc assurance, SME banking and fixed income trading,” explained Mr Awori. “In addition to this, we have also increased our activity in investment banking, stock brokerage and revamped existing businesses such as our mortgage offering and asset based financing to support future growth,” he a d d e d . T h e b a n k ’s b o a r d i s recommending a payment of a final dividend of Sh1 per share.

Barclays, which is the ﬁfth largest commercial bank in the country has www.instinctbusinessmag.com 15

Tonyi Seneyah; Ceo - Horseman Shoes

www.instinctbusinessmag.com 16

We Have Erased The Perception That Made In Ghana Products Are Inferior Tonyi Seneyah; CEO - Horseman Shoes reaking away from the norm of p u r s u i n g employment in a company right after national service, Tonyi Seneyah CEO of Horseman Shoes set the ball rolling by establishing a Ghanaian based footwear manufacturing company. Aggressive with his passion to drive his dreams as the manufacturer of high quality shoes in Ghana, he has won several awards both locally and i n t e r n a t i o n a l l y. S e n e y a h ' s entrepreneurial exploits has gone to t h e e x te n t o f g e t t i n g a n endorsement from the incumbent President of Ghana, John Mahama as a manufacturer of high quality shoes of world classstandards.In a n e xc l u s i v e i n t e r v i e w w i t h Deborah Arthur, the University of Ghana Graduate talks about how his entrepreneurial career begun, his challenges, accomplishments and his projectionsâ&#x20AC;Ś How did the horseman shoes story begin? The Horse man shoes story began with the desire to make the kind of shoes I saw on the internet. I would go to the local shoe makers with my design and ask them to make the exact design I had given them. Before I knew it, my friends started asking me to make same designs for them. In 2010 I set up my own workshop at Kumasi and I started making my own designs, it was well accepted though some people to an extent doubted it was locally made.

By and by we are becoming a household brand in Ghana with over 6000 customer base. The main inspiration for Horseman shoes is to move Ghanaians away from patronizing second hand product and create employment opportunities for the youth. What are some of the challenges you encountered at the initial stage of Horseman Shoes? Getting skilled labour, making workers to understand the level of shoe making I had in mind and their attitude towards work was a big challenge. Also there was the conception of made in Ghana goods being inferior, fortunately we have erased that perception. Another challenge was the capacity to run a business, most youths do not venture into business because they have the capacity to instead they go into business because they have the idea and the passion. It always gets to the point that one will need more skills than the passion. How will you rate the quality of your shoes? Horseman shoes can be compared to any international brand, they are top quality and comfortable. Locally made products are said to be expensive, how competitive is your pricing? Though the cedi keeps depreciating, leading to the high cost of the importation of raw materials our pricing remains very competitive. A pair of Horseman Shoes ranges from GHC180 to GHC250 ($70).Most made in Ghana products are expensive because

they are not able to meet mass production which is eventually much cheaper. What is your target market? We target young professionals, the working class from age 25 to 40 not limited though, also middle income earners, entrepreneurs and a lot more. Where do you see horseman shoes in the next 5years? Our vision is to become the leadingfootwear manufacturer in Africa in terms of employment and also brand preference. We at horseman shoes wants to make shoe manufacturing a desired profession among the youths for instance one studying leader works at school will look forward to making a career out of it.In terms of brand preference we want to get to a point where one can wake up and think of buying his or her pair of shoes from Horseman shoes. We intend to expand to other African countries in the next 5 years. If you had three wishes what will they be? I wish that Ghana will become a prosperous countr y, secondly Horseman Shoes expanding and being able to employ several thousands of people, also inspiring the youth in following their dreams, lastly my third wish is to know and love God.

www.instinctbusinessmag.com 17

First Rand Gets Liscence For Life Insurance Business, Set To Operate In Ghana By June banking footprint organically. In Ghana, authorities were busy with a report after inspecting the FirstRand banking systems. In East Africa, the plan was to star t operating in Kenya, Mr Nxasana said. In its interim results presentation, FirstRand said it had identiﬁed highrisk exposures of R901m and had to increase its provisioning for doubtful debts.

CEO OF First Rand, Sizwe Nxasana

anking group FirstRand is working on further diversifying by starting a life insurance business in SA and aims to start operating in Ghana by midyear. CEO Sizwe Nxasana says FirstRand has received a license for the life insurance business. The group is rebuilding this capability after unbundling MMI in 2010, he added. "It will be different from how traditional life companies operate," he said, after FirstRand released interim results for the six months ended December. "It will have new ways of underwriting risk.” The new business will offer life and disability insurance, taking on traditional insurers. Mr Nxasana said FirstRand was also running trials on a mobile financial services business in SA. FirstRand has more than R10bn in excess capital and will deploy this on growing the business in SA, the rest of Africa and India. In Nigeria, it www.instinctbusinessmag.com 18

wants to convert its merchant banking license to a universal one, while in Kenya, it is deciding whether to enter the market through a retail or a commercial bank. It has operations in Namibia, Swaziland, Botswana, Lesotho, M o z a m b i q u e , Ta n z a n i a a n d Zambia, with representative offices in Kenya and Angola. S o u t h A f r i c a’s m a j o r b a n k s , Standard Bank has the widest footprint in Africa, followed by Barclays Africa Group. Nedbank has access to the West and Central African markets through its investment in Ecobank. "In Ghana, we have set up the platform, there is a head office and staff. We are adding more capital to our Tanzanian business," said Mr Nxasana. "In India, we are looking to grow our business. Our corporate business is doing well, we have to scale that up.” While it was looking for an acquisition in Nigeria, FirstRand would work on building a retail

Deputy CEO Johan Burger said the defaults had not happened yet, but the group took proactive steps as it was exposed to businesses linked to lower commodities prices in Nigeria and Angola. FirstRand said R214bn of total corporate credit exposure was domestic, with R27bn in the rest of Africa. It posted a 26% increase in bad debts to R3bn, with the credit loss ratio up to 0.86% from 0.77% as the bank decided to take conservative action by increasing provisions. Without this, the credit loss ratio would have gone down to 0.66%. Net interest income before bad debts grew 16% to R19bn, while noninterest revenue rose 13% to R16.8bn. The return on equity was 24%, from 23.4%. PSG Wealth portfolio manager Adrian Cloete said FirstRand still had the strongest performance of SA’s big four banks. Barclays Africa group grew headline earnings 10%, Nedbank 14% and Standard Bank 1%. Standard Bank would have grown its headline earnings 20% if its results had not been aﬀected by the discontinued global markets business, which had been sold.

Forbes Names Miloud Chaabi as the Richest Real Estate Tycoon in Africa Kampala . He is said to own a quarter of the buildings in Kampala's central business district. Samih Sawiris has a net worth of $US 1.05 billion and is head of Orascom Development, which builds resorts in Egypt, the Middle East, Montenegro and Switzerland. The group's ﬂagship project is El Gouna, a private town built along the Red Sea coastline in Egypt. His business interests were hit hard by the Egyptian uprising in 2011 but have since recovered. Sawiris also owns about 10 percent of the construction ﬁrm OCI N.V. which was founded by his father and is

oroccan proper t y magnate Miloud Chaabi is Africa's richest real estate tycoon, according to the 2015 Forbes Billionaires List. Chaabi is currently one of the four African businessmen with signiﬁcant interests in real estate worth an estimated $1B and net worth of $1.3 billion. Global real estate network Lamudi takes a closer look at the property por tfolios of the region's top billionaires who have made all or part of their fortune in real estate.

Miloud Chaabi is the founder of Ynna Holding and its property division, Chaabi Lil Iskane, which has a vast real estate program of over 50,000 diverse properties across various cities in Morocco. He also owns the Ryad Mogador hotel chain, which opened its ﬁrst four-star hotel in Essaouira in 1999, and the Aswak Assalam supermarket group. Uganda's Sudhir Ruparelia has net worth of $US 1.1 billion and is reportedly the wealthiest businessman in the country, and across the entire East Africa region. He is the majority shareholder of the companies in the Ruparelia Group, including the real estate ﬁrm Meera Investments which focuses on property development and construction in Uganda's capital,

As the head of the homebuilding company Groupe Addoha with a net worth of $US 1.1 billion, Anas Sefrioui has focused his property business on building low-cost housing for Moroccans. After his interests were hit by recent government cutbacks, Sefrioui has announced plans to expand across Africa. New projects include the construction of a cement factory and low-income housing in countries including Mali, Ghana, and Chad. In Kenya, the real estate tycoon is Peter Muraya together with his wife Susan, who made their wealth in the real estate sector through their company Suraya Property Group Limited. Peter, a trained architect founded the property company in 2003 and currently has a property portfolio of about US $ 200 million of the property company alone.

www.instinctbusinessmag.com 19

Our vision is to Double Our Asset Under Management on a Yearly Basis Oladimeji Adedara, CEO , Capstone Capital www.instinctbusinessmag.com

l a d i m e j i Adedara is the C E O o f Capstone Capital ltd , an a s s e t management c o m p a n y .Since his appointment in 2012, he has championed groundbreaking projects. He is a professional chartered accountant & an investment banker with over 30 years experience in Finance, Credit, Money market operations and capital market activities. Prior to joining Capstone, Ola was an Executive Director of Finance and Administration (later Finance and Treasury) at Databank Group, overseeing the Finance and Treasury functions of Databank operations both within and outside Ghana. He supervised the Accounts of twelve (12) companies within the group. In This Interview with Carol Hogan-Bassey, he talks about the impact of their services in just two years of operation and capstone's future projections Te l l u s a b o u t s o m e o f yo u r services? We manage funds of high net private individuals by helping them to apply for the necessar y investment products and to ensure their funds grow and at the same time receive the appropriate benefit. We also help individuals whose target is to save their money within a specific period of time like say two to three years. This also works for salary earners whose target may be to purchase a house, build a house or prepare towards retirement. We also manage the funds of business clubs- a business club is a small number of people coming together to invest their money, and at the end of the day the profit is shared among them, they give us the

responsibility as their fund manager to share the profit among them. It's more like the corporative or Susu that we find among workers in most organizations. How high is the demand for your business club service? The demand is quiet very high, par ticular ly when we look at organizations that are well setup, having 10 to 15 numbers of staff, targeting a particular program in the organization or planning towards the Christmas festivities. Actually people are really patronizing the business club service because they believe it's a good idea, there are others who are not targeting any particular program they just want to save and grow their funds. It looks better when comparing it to buying shares on the stock market, this is because with the purchasing of shares retrieving your money at the time you are in need may be a bit challenging, but with the business club service your money can be retrieved at any point in time. This is done for private individuals. How do you service the needs of corporate institutions? For the corporate entities we meet with their treasurers, financial controllers or company accountants to see how their financial position can be improved upon. We manage the limited funds of companies who have plans for future projec t expansion. We also help companies manage their funds for rewarding staff members or clients at the end of the year or a specific period of time. When a corporate entity needs financial assistance, we mobilize some funds for them to help keep them in business, we look critically at their finances to know the type of funds; whether short term or long term funds. We have packaged such

funds for about t wo or three companies and they are doing very well now. What impact has your micro nance support program created? It has created a lot of impact. We offer financial and technical support to microfinance companies, we go beyond providing funds for them, we ensure that when the company gets the fund from the investor, the fund is managed properly, we come up with a medium for the investor to have the necessary information about the microfinance company, the use of the funds and we ensure the funds yields good returns for the investor. Which of your products have been more impactful? The management of high net worth of private individual funds has been more impactful. We collect their money and manage it for them, it's far better than treasury bill. People take that as a better way of growing their money. We are growing in our number of Asset Management. In two years we have had a turnover of about GHC 30million. How satis ed are your high net worth clients? Our high net worth clients are satisfied, we make them happy by looking out for what exactly they want. What is Capstone's vision for the next ve years? Capstone's vision for the next five years is to double our asset under management on a yearly basis. Last year, asset under management was around GHC 11million , and at the end of the year we moved to GHC30 million. This year we are targeting GHC 60million. This shows how well we are penetrating into the market.

www.instinctbusinessmag.com

www.instinctbusinessmag.com 22

Standard Chartered Bank Appoints New CIO Daimler Mexico. Over the past 14 years, he held various CIO roles with the group and since 2008 was re s p o n s i b l e fo r s t r a t e g y, planning and development of all IT systems, as well as the operation of all data centres and communication networks at Daimler AG. The statement said over the past four years, Dr Gorriz had driven the digital transformation within Daimler, both for employees and customers. He has won numerous awards – most recently the Global CIO award of the Indian NASSCOM1 — and is one of only three CIOs in Germany nominated to a list of the 40 most important people in IT in the last 40 years.

tandard Chartered has announced the appointment of Dr. Michael Gorriz, as G r o u p C h i e f Information Oﬃcer (CIO). He will join in the third quarter of 2015 and be based in Singapore, reporting directly to incoming Group Chief Executive, Bill Winters.

A statement issued by the bank said Dr Gorriz, 55, would bring to the bank signiﬁcant knowledge and expertise from a major international group as Vice President and CIO at Daimler AG, which employs around 280,000 people across Europe, North and South America, Asia, Australia and Africa. He is a physicist and engineer and progressed through specialist research and design in aerospace to a general management role in

It quoted Mr. Peter Sands, Group Chief Executive, as saying: “I am delighted to welcome Michael to Standard C h a r t e re d. M i c h a e l i s a n immensely talented CIO, who has worked across our footprint. As a leader in digital transformation, he has the capabilities and experience to drive innovation and change in technology and operations, which are key to delivering our productivity goals and to enhancing our service to clients. I am conﬁdent that Michael will be a fantastic addition to Standard Chartered.” His appointment is a result of the retirement of Jan Verplancke, Director, Group Chief Information Oﬃcer, after 10 years of service.

www.instinctbusinessmag.com

The Rise Of Shopping Mall Investments In Ghana By Carol Hogan-Bassey nd suddenly the skyline of the city of Accra is c h a n g i n g. Ghana’s capital city is fast becoming the hub of real estate construction activity. Old car parks are being abandoned for huge office blocks. Dilapidated colonial government bungalows are being transformed into beautiful residential estates., and most interesting are the magnificent shopping malls that are springing all over the city like wild fire. About a decade ago who would have thought of such transformation that will give both low and middle class the privilege of luxury shopping experience. In 2008, the ice was broken with the www.instinctbusinessmag.com 22 24

commissioning of the infamous Accra Mall covering an area of 20,000 square metres. The Melcom group followed suit with the launch of Melcom Plus, also covering an area of 90 000 square metres- the single largest shop in the country housing over 40 000 items under one roof. Ten years down the lane, the nation has seen a huge transformation and several others sprang up within a very shortwhile , the Marina Mall, a shopping mall and oﬃce complex owned by the Marina Group of Burkina Faso, was c o m p l e t e d i n 2 0 1 2 . G L A H CO recently completed the beautiful 13-story shopping mall and hotel complex on Oxford Street called The Oxford Street Mall, whose anchor tenant is Shoprite, a supermarket brand from South Africa. And the most recent being the biggest

shopping mall in west Africa-The West Hills Mall. Other malls include the A&C shopping mall in East Legon, Achimota Mall, The Junction Mall, Meridian Mall, The Exchange and Accra Water Front, palace shopping mall Drivers of Shopping Mall investment The sudden thirst for shopping mall investment indeed corroborates the recent release of MasterCard’s African Cities Growth Index, which identified Accra as the sub-Saharan African cit y with the highest potential for growth over the next five years. The emergence of a middle-income class, taste for luxury goods, influx of foreign investors, a maturing property market, the creation of residential communities on the

between US$7 – US$25m2 per month, exclusive of service charge. Prime retail properties in Accra, which are principally neighborhood and Community Shopping Centres, even command the higher bracket for rental rates of between US$25 – US$55m2 per month, with service charges for retail properties ranging between 10% and 20% of the rent price R e a l - e s t a te s e c to r w a tc h e r s consider the prospects for retail outlets to be extremely good, as the rental rates and yields are far better than Oﬃces/Industrial Properties. Research also reveals that existing shopping malls attract an estimated 880 000 shoppers and visitors annually . Direct Impact on Economy.

edge of the city, urbanization drive across all major cities, good and liberal policies on investment which allows the transfer of dividends or net proﬁts , improved economic and high GDP growth , good market fundamentals and most of all a stable political climate; all put together drive the rise of shopping mall investment in Ghana. Moreover, people barely have the time to visit traditional markets, obviously the hustle bustle of life is taking its toll on the working class, such that a one stop shop has become the solution to the routine busy life style of young professionals and business executives. Interestingly, the Global Brands are also cashing in on this huge demand and would leave no stones unturned as the market is seeing interests from the Middle East, Spain, Turkey and France. Great retailers such as Azadea, Landmark, Alhokair, Casino Groupe, CFAO etc. have their eyes on Ghana. Brands such as Zara, Mango, Splash, Debenhams, Marks and Spencer are all having their fair share of this huge demand for luxury goods. Prospec ts of Shopping Mall Investment According to players in the industry, retail properties in Ghana are commanding rental rates of

Statistics from one of the preeminent service providers in the retail, commercial and industrial property sectors in the country; Broll Ghana, also reveals that annually mall owners pay corporate tax of GHC 25. 7million, while mall tenants contribute VAT sales worth GHC95million. Corporate tax from tenants is also estimated at GHC 47.5million, while VAT from mall rents amounts to GHC 27.5million. Import duty from tenants also amounts to over sum of GHC109million, with personal income Tax amounting to GHC6.2 million. Hence accruing a total contribution of 311.9million to the nation’s economy. Inherent Challenges Despite the pomp and pageantry associated with mall investments, the industry is beset with challenges could hinder the lucrative market if not tackled eﬀectively. Players in the sector reveal that the 1963 Rent Act oﬀers Inadequate protection to property owners or as it were, investors; as the Rent Act is restrictive in its application to the contemporary commercial real estate market. Hence Property owners face excessive challenges with defaulting tenants.

successfully prosecute tenants who default in payment of rents and their inability to recover rent arrears. According Mr. Ampong, CEO of Broll Ghana , there are a lot of tenants who have accumulated large arrears and have absconded. Conservative estimate indicates that rent arrears accrue to the sum of $5million excluding abortive legal costs from sitting and statutory tenants More also , the Rent Act which prohibits investors from replacing underperforming tenants results into the investors inability to bring in new and vibrant tenants who have more exciting brands and as such mall owners end up making serious losses According to the Ghana Property Owners Association, the asking rent for commercial properties is a factor of market conditions where existing tenants remain in the premises after expiry of lease agreement and to continue paying the rent that was applicable to the expired lease. Market conditions may dictate that the market rental for the premises may be signiﬁcantly higher than such old rental, hence causing serious losses.

A point of Saturation Nonetheless, despite the aforementioned challenges, the returns on shopping malls keep increasing by the day as the inﬂux of foreign brands and investors get higher. And Interestingly the city o f Ac c r a h a s b e e n a g r e a t e r beneﬁciar y of the luxurious western styled shopping malls. While this may be due to the availability of sea ports and habours within the city, thankfully, four shopping malls are scheduled for completion by 2016 in Kumasi, Takoradi and Tema. However some industry experts opine that in two to three years the city of Accra will get to a point of saturation and this will cause supply to outstrip demand hence forcing down rentals and probably rectifying some of the current challenges in the sector.

Consequently, mall owners end up incurring heavy losses on their investments due to their inability to www.instinctbusinessmag.com

CFO Corner

Ruth Porat, CFO Morgan Stanley

www.instinctbusinessmag.com 22 26

Ruth Porat In Line For $70m As Google's Chief Financial Ofcer oogle has revealed that the Chief Financial Officer of Morgan Stanley, Ruth Porat, will be joining the company in the same role, with effect from May 26. Google will pay its new chief financial officer, Ruth Porat, more than $70m. She will get an instant $5m cash signing-on bonus, $25m worth of Google shares and a further $40m in “biennial” stock awards. Her actual base salary will be $650,000. However, she will have to stay at the company for four years to be sure to collect all the money. It is a big jump in pay from the roughly $10m a year she has collected as Morgan Stanley's chief financial officer. Porat is the latest in a recent flurry of Wall Street types decamping to Silicon Valley – and collec ng a lot more money on the way. Porat, who has been at Morgan Stanley since 1987 and advised the US government on its rescue of Fannie Mae and Freddie Mac during the 2008 financial crisis, is o en referred to as “the most powerful woman on Wall Street”. In her 28 years sojourn at Morgan Stanley, she led the bank's team raising funds for Amazon, eBay and Netscape during the dotcom boom. When the bubble burst, she reinvented herself as a financial services banker. Porat has helped execute a sweeping cost-cu ng strategy across several business lines at Morgan Stanley. The bank cut its expenses, excluding

compensa on, to 29 percent of its revenue last year, down from 34 percent in 2012. Google's costs have jumped as the company embarked on an increasing number of ambi ous projects. Last year, the company's revenue grew 19 percent, while total expenses rose 23.4 percent, a trend that alarmed some analysts. Some analysts see her appointment as a sign that Google acquisi ons could pick up. "You want someone to come in there and push back against the free spenders," said Colin Gillis, an equity research analyst at BGC Partners, a brokerage, adding that investors hope Porat will be that person. Google's shares rose as much as 2.5 percent a er Porat's appointment was announced by both companies Porat, 57, was considered a poten al candidate to become chief execu ve w h e n eve r c u r re nt C EO J a m e s Gorman steps down. But several high-level Morgan Stanley sources who have spoken to Reuters about succession planning over the past two years said she was not seen as a top contender. Instead, they pointed to two other execu ves – Gregory Fleming, 52, who runs wealth management and asset management, and Colm Kelleher, 57, who runs investment banking and trading – as more likely contenders. Some observers saw gender bias at play, given her qualiﬁca ons and Wall Street's history as a male-dominated industry. At an event last year, Porat c r i c i ze d t h e l a c k o f fe m a l e leadership in corporate America as "an embarrassment."

amount of leaning will bust down the door," she said. "So I think we must hold our organiza ons accountable where they control the doors by demanding clarity and transparency around succession planning." Cri cs have also accused Silicon Valley's culture of being hos le to women. Ellen Pao, a former partner at Kleiner Perkins Caufield & Byers, is suing her firm for discrimina on. The trial heads into final arguments on Tuesday. She will join Google on 26 May, and report directly to Google's chief execu ve and co-founder, Larry Page. “We're tremendously fortunate to have found such a crea ve, experienced and opera onally strong execu ve,” Page said in a Google blogpost announcing her appointment on Tuesday. Porat said she “can't wait to roll up my sleeves and get started … I'm delighted to be returning to my California roots and joining Google. Growing up in Silicon Valley, during my me at Morgan Stanley and as a member of Stanford's board, I've had the opportunity to experience firsthand how tech companies can help people in their daily lives.” She rose to na onwide prominence advising the US Treasury on the collapse of insurer AIG and the bailout of mortgage providers Fannie Mae and Freddie Mac. She features in the 2011 film Too Big to Fail, in which she is played by Jennifer Van Dyck.

"If a woman 'leans in,' but is leaning against a door that is nailed shut, no www.instinctbusinessmag.com

Skye Bank Nigeria Commences Instant ATM Card Issuance Delivery Channels, Mrs Markie Idowu, was quoted as saying that the initiative would also eradicate the perennial issues associated with logistics and delays that has plagued the delivery of debit cards to customers as instant card issuance to customers is done in a seamless manner with the required turnaround time .

kye Bank has commenced instant card issuance service to both new and existing customers for improved c u s t o m e r experience in its branches. Th i s s e r v i ce i s c u r re nt l y available in some selected branches but is being gradually deployed to all branches. Instant Card Issuance is a process of personalization and issuance of debit cards to www.instinctbusinessmag.com

customers instantly upon request at any branch of Skye bank. It delivers speed, drives convenience and value to customers, a service that a l i g n s w i t h c u s t o m e r ’s lifestyle. According to the bank other branches are expected to prime debit cards instantly on new accounts, lost, stolen or damaged cards for an improved customer experience. T h e b a n k ’s H e a d o f Te c h n o l o g y a n d S e r v i c e

Idowu said customers can walk into any Skye Bank branch and request for a debit card and collect it instantly as internal arrangements had been perfected for a seamless issuance of the cards which are now primed at the branch level. Meanwhile, Skye Bank’s Head of E-Channels, Mr. Akinwale Ojo, has said the bank has signiﬁcantly improved its up time and responsive time to 92 per cent through series of initiatives that have made the b a n k ’s a u t o m a t i c t e l l e r machines very eﬃcient. Ojo said the bank had restructured its card, segmented and streamlined them to meet the needs of the customers. He disclosed that the bank had also gone into strategic alliances with leading card providers to improve card use and promote e-commerce for the economic development of the country.

AXA Group, SIC Insurance Ghana Set Out On Possible Partnership To Expand Emerging Market he Chief Executive Oﬃcer of AXA group Mr. Frederic Flejou has announced that their investment in West African market is the company’s strategy of continued expansion and consolidation into emerging markets. This he said after meeting with the Board and Management of SIC Insurance about possible collaboration between the two companies He said AXA has a brand value growth of 14% and ranked the Best Green Brand in the insurance industry worldwide. “AXA is also one of the largest insurers and ﬁnancial management powerhouse with a presence in 56 countries and has over 157,000 employees and distributors who are committed to serving their 102 million plus clients globally. Its Asset Management wing has operations in over 102 countries", he added. According to Mr. Flejou, the AXA group has presence across Europe, Asia, The Americas, Africa, and also has strong foundations in the largest e m e rgi n g e co n o m i e s s u c h a s Mexico, Turkey, Indonesia, Brazil, India and a presence in China which

is a Joint Venture Partnership with ICBC, the largest bank in China. The company’s growth in Africa has b e e n m a i n l y i n Fr a n c o p h o n e countries with presence in Cameroon, Gabon, Ivory Coast, Mauritius, Morocco, Senegal and Algeria. “In the last year AXA embarked on a major initiative to enter the Anglophone market and has set Egypt, Nigeria and Ghana as Priority One markets to invest in. Two months ago, AXA purchased shares in Mansard Insurance PLC, one of the leading brands and most proﬁtable insurance companies in Nigeria. Ghana is their next big destination in this drive and we are looking forward to partner with an insurance brand that reﬂects our values and aspirations” he said. Board Chairman of SIC Insurance, Mr. Mike Hammah, said the Board is looking for strategic partners who would bring onboard their expertise and ingenuity to help drive the future growth of Ghana’s largest and preferred insurer and extend its leadership in the industry.

company’s competitive advantage in both the local and global markets. He noted that just like AXA, SIC Insurance is the industry leader in the countr y with a ver y solid foundation to provide the needed partnership with AXA. Mr. Hammah said such collaborations would also help the nation’s number one insurer in its unﬂinching drive to consistently create exceptional value for all its shareholders. Adding that leveraging on the complementary strengths as well as common values and long-term visions of the two brands, SIC Insurance would be positioned to deliver even higher levels of product innovation, underwriting capacity and operational excellence. AXA makes over 90 billion Euros in revenue and almost 5 billion Euros in Net Earnings each year. The company currently manages over 1 trillion Euros in assets and appears on the Fortune 25 list of companies.

This he said would position SIC Insurance to take on bigger and prudent risks, retain premium which hitherto would have been paid to reinsurers and increase the www.instinctbusinessmag.com 29

African Real Estate has Unique Drivers for Growth – PwC

ccording to PwC, G l o b a l megatrends such a s r a p i d urbanization and demographic changes, will drive growth opportunities in the real estate industry across the African continent over the next ﬁve years. “The pace of change in the world is accelerating, with a series of transitions, k nown as global megatrends, transforming the way in which business and society operate,” says Ilse French, Real Estate Leader for PwC Africa. “More and more, investors around the world are seeing the growth potential of Africa, in particular its substantial demographic edge. Economic growth, improving www.instinctbusinessmag.com 30

political stability and ongoing investments in i n f r a s t r u c t u re are opening up previously inaccessible markets.” adds French. Two publications recently released by PwC consider the drivers for real estate growth in Africa and highlight existing and emerging trends in African real estate that are shaping the ‘ A f r i c a n opportunity’ for investors. PwC’s inaugural publication entitled Real Estate: Building the future of Africa considers the impact of global megatrends on the African continent. The aim of the report is to provide an assessment of the current state of the real estate industry across Africa and demonstrate how the megatrends will drive growth opportunities in key African markets. The report also considers the real estate market in ten selected countries in sub-Saharan Africa (SSA). These countr y profiles provide insight into the local, regional and global influences on the real estate markets of individual countries, providing an illustration of the effects of the trends being felt at a national level. The report shows that the opportunities across the African continent are significant and span every sector. In almost all markets

the demand for high-quality retail, office and industrial space continues to outstrip supply as international and local occupiers respond to new economic opportunities. Huge shortfalls in residential property across the continent will give rise to private investment on a grand scale. Furthermore, a lack of local funding for infrastructure projects provides a platform for new private partnerships with the public sector. Shifting demographic trends and changes in consumer behaviour are also likely to create a huge demand for new and different real estate by 2020 and beyond. According to the report, we will also see the entry of more specialist investors into the market. Projected forecasts of 20% net annual returns from investing in shopping malls, office blocks or industrial complexes in countries across the continent continue to draw in new investors. Among the findings of PwC ’s repor t, the following eight drivers for growth were identified: Africa’s young population will drive the demand for real estate and different types of real estate. Across Africa there will be continued urbanisation, an expansion of current cities and the r i s e o f n e w c i t i e s. S e c o n d l y industrialization will continue across Africa and will be accompanied by a rapid growth in the retail sector. Thirdly, export of natural resources and agriculture will remain key sources of economic growth, but will expose certain countries to increased risk. Fu r t h e r m o r e i n f r a s t r u c t u r e shortages will create opportunities for investment, the influence of government policy and legislation on the decision to invest will increase, while local partnerships will become increasingly important. Also continued advancement within pension fund, stock exchange and bank ing regimes will facilitate investment,

and an increased range of investors will drive demand for real estate i nve s t m e n t o p p o r t u n i t i e s. I n addition technology will impact business and building practices, as well as consumer behaviour. Lastly sustainability will become entrenched in building design and occupier requirements, with Africa’s most ambitious countries changing city design and building practices. When considering these drivers of growth it is also important to note that there are specific risk factors underlying the development of Africa. These include the impact of political instability and changing government policy; complex legal regimes; the volatility of local currencies; and the timeframe of investments and restrictions on possible exit strategies. Despite these risks, real estate investors and developers continue to see the African market as a huge opportunity. French says: “It would be easy to underestimate the impact of global megatrends on Africa. After all, Africa’s real estate markets have traditionally lagged behind developed and many developing economies. Levels of investment in real estate in Africa are low by a global standard, while significant challenges exist in exploiting potential opportunities. “However, our research suggests the impact of global megatrends on Africa will be huge. This will create a diverse range of opportunities for the real estate industry Africa – opportunities that often differ from those available in more developed markets.” The global impact of these trends are supported by the findings of a second report, Global Emerging Trends in Real Estate® 2015, which is an annual forecast of global real estate investor sentiment published jointly by the Urban Land Institute (ULI) and PwC. The report, based on the views of senior global property investors, identifies several ‘megatrends’ affecting markets around the world, each of which has implications for development and investment: increasing urbanisation (the majority of the world’s population

now lives in urban areas); demographic and social changes (including a significant rise in the number of older and elderly people); technology advancements; the rise of economic power in emerging markets (due largely to an expanding middle class); and climate change. PwC Global Real Estate Leader, Kees Hage, says: “There is a wall of capital targeting real estate opportunities in many markets across the globe. The search for better yields has taken some investors into development and secondary markets, moving them up the risk curve. But investors must strike a balance between the need to deploy capital and the ability to achieve good returns, at a time when there is such a difference in the economic conditions across the globe. “Real estate investors have a wide range of issues to consider when making investment decisions. What is clear is that they may have to approach those decisions in a completely different way in the future. Capital allocations may need to be made to a wider range of asset types than ever before, ranging from retirement and student housing to data centres and self-storage.” Also for the first time Africa is included in the report. The report provides insight into of the current African real estate sector by focusing on the key markets through a series of interviews with leading players in the industry who provide their views and outlooks on the investment climate. Some key themes emerging from interviews includes; Interviewees noted that the listed property sector in South Africa has shown excellent performance, with 26.6% total returns. The listed sector in South Africa has demonstrated huge growth and now has a market capitalisation of just over R350bn, having being boosted by an influx of capital following the introduction of REIT legislation in 2013. The listed real estate sector in South Africa is now close in value to the corresponding sectors in Singapore and Hong Kong. However, there are a limited number of REITs sufficiently

liquid to attract foreign investment, while the unlisted real estate market is dominated by South African institutions. Interviewees indicated that the size of available investments may not match the demands of larger institutional investors, who require substantial investments to enter the market. Investments to the value of US$20-30 million are common and provide opportunities for investors looking for high returns for this level of investment, like family offices in Europe. Interviewees also noted the significant development risk and timeframes which must be considered when investing in Africa. Securing finance in South Africa is not viewed as a problem, but elsewhere in Africa interviewees indicated that this provides difficulties for investors. Across the rest of Africa, the finance market is dominated by a small number of financial institutions requiring equity investment of up to 50% to secure finance for developments. This presents opportunities for overseas debt providers to enter the market in support of regionally based developers and investors. Trends observed by interviewees include the continued impact of urbanisation, with the observation in South Africa that some small towns are being marginalised as large metropolitan areas develop. Developers are careful about the size and number of retail developments over the short term, with five-year planning horizons providing time for consumer spending habits to develop to keep pace with increasing supply. French says: “As real estate investors around the world are faced with the challenge of finding value and returns at a time when core property is becoming overpriced in almost all markets, Africa is now of increasing interest. We believe African real estate has unique drivers for growth, as highlighted in the two reports released by PwC.”

www.instinctbusinessmag.com 31

Investments in Africa’s 2014 Mega Projects Surge by 46% - Delloite billion in projects, or 23 per cent of the total projects on the continent by value, while Central Africa experienced a massive 117 per cent surge in the value of construction projects which reached $33.21 billion.

nvestment in Africa’s mega projects surged by 46 per cent to $326 billion last ye a r, l e d by h e av y investment in transport, e n e rg y a n d p owe r, according to the third yearly Deloitte African Construction Trends report, which monitors progress on capital intensive infrastructure on the continent. To qualify for inclusion in the Deloitte African Construction Trends report, projects must be valued at more than $50 million and had to have broken ground by at least June 1, 2014. While the number of projects that qualiﬁed for inclusion in the 2014 report fell to 257 from 322 in the preceding year, the total value of projects under construction increased from $222.77 billion in 2013. “Africa’s rapidly growing middle class continues to drive demand for sustainable social infrastructure,” said Andre Pottas, Regional Director at Deloitte. “Africa is en route to a brighter future and overall we see the opportunities surpassing the challenges facing our continent.” Of the projects included in the 2014 Deloitte African Construction Trends www.instinctbusinessmag.com 32

report, no less than 143 were led by the public sector with a further 88 being private sector initiatives and 26 classified as public private partnerships (PPPs). Energy and power accounted for 37 per cent of the number of mega projec ts under taken in Africa in 2014, followed by transport (34 per cent); mining (nine per cent); real estate (six per cent); water (five per cent); oil and gas (four per cent); mixed use facilities (two per cent); and health care (one per cent). “More than 10 per cent of the projects included in this year’s survey were structured as PPPs, which is an increase from about four per cent the previous year,” said Pottas, saying it is “very encouraging to see as we believe that significant private sector participation is required alongside government initiatives in order to enable Africa to close its infrastructure gap with the rest of the world.” Southern Africa led construction activity on the continent, accounting for $144.89 billion in projects or 44.5 per cent of the total value of mega c o n s t r u c t i o n p ro j e c t s o n t h e continent last year. West Africa overtook East Africa with the region attracting US$74.84

Nor th Africa saw the value of construction projects jump by almost 36 per cent to $9.12 billion. East Africa experienced a moderate 10 per cent decline in the value of projects, which nevertheless totaled a respectable $60.67 billion in 2014. “Africa continues to be a magnet for Foreign Direct Investment (FDI) and intra-African capital inflows. With a 76 per cent completion rate of projects collected from our previous report, expectations remain high for i n f r a s t r u c t u re to p rov i d e t h e developing continent with much needed market expansion,” Pottas said. A f r i c a’s i n f r a s t r u c t u r a l transformation is being driven by increased output in the natural resources sector, which in turn has underpinned rising fiscal expenditure on infrastruc ture projects to facilitate rising international trade with the continent. At the same time, rapidly growing urbanization and rising domestic demand in Africa has ushered in an unprecedented wave of foreign direct investment in the continent ’s biggest and most dynamic economies. According to Pottas, “the African Construction Trends report confirms continued, intensive construction activity across the continent,” said Mr Pottas. “The journey may not be high speed just yet but it is unfolding at a steadily increasing pace.”

Ghana's Micronance Companies To Be Hit By Mergers And Acquisitions h a n a ’ s microfinance industry is expected to be hit by mergers and acquisitions as the regulator demands recapitalization of companies in the sector. The Bank of Ghana wants microfinance firms to increase their capitalization from the current Gh100,000 to Gh250,000 by June 2015 this should further go up to Gh500,000 or more in 2016. There are concerns some companies may be challenged in meeting the requirement and the deadline. Businesses operating in the sector would have to explore available options if they are to survive.

The Ghana Association of Microﬁnance Companies (GAMC) says there are arrangements to engage the regulator in managing the process. National Chairman, Collins Amponsah Mensah however acknowledged that the directive would help build stronger institutions, whilst instilling discipline and sanity in the industry. According to him, members are encouraged to open up for mergers and acquisitions. “I’m very hopeful that as we go forward, a lot more of our members will be coming together to form stronger institutions and in that case be able to raise the capital that is expected to be able to raise this kind of business,” said the GAMC Chair.

Mr. Amponsah Mensah also believes there are opportunities for the public to invest in the industry. “People who want to even start new microfinance institutions should rather be looking at the possibility of acquiring equity in existing ones or even acquisition,” he noted. The Bank of Ghana has also initiated action to flush out firms operating without licenses and names of companies which are not under regulation have been published in the dailies. Mr. Amponsah Mensah has endorsed the exercise, stating that the savings public is getting increasingly discerning in entrusting their funds with an institution.

www.instinctbusinessmag.com 33

GTBank Nigeria to Expand Lending with $175m Loan from IFC

GT bank MD- Segun Agbaje

uaranty Trust Bank Plc has secured a $175 million (about N34 billion) loan from the IFC to expand its lending to sectors that drive economic growth and job creation in Nigeria. Eme Essien Lore, IFC Country Manager for Nigeria in a statement said that the ﬁnancing comprises $100 million for IFC's own account and $75 million through the IFC

Managed CoLending Portfolio Programme, a new syndications platform that offers institutional investors the ability to passively participate in IFC's future senior loan portfolio. "IFC's strategy for Nigeria encourages ﬁ n a n c i a l intermediaries to support the growth of sectors that increase real output. By expanding IFC's partnership, GT Bank can make medium and longterm funding available to key sectors of the Nigerian economy, and contribute to h i g h e r o v e r a l l growth."Segun Agbaje, Managing Director/Chief Executive Ofﬁcer, GT Bank, noted that the facility will help the bank to strengthening its position

as a market leader, by deepening access to growth capital and boosting lending to critical sectors that are generators of growth. "IFC, our long-standing partner, is demonstrating its support through direct investments and through syndications to enable us achieve our goals and grow the Nigerian economy," he added. He explained that the bank is a leading full service commercial bank in Nigeria with a network of 233 branches (including Cash Centers), 18 ebranches, 23 GTExpress locations and 1,097 ATMs across Nigeria and offering a wide range of banking and ﬁnancial services. He also stated that the bank has nine subsidiaries and presence in eight African countries and in the United Kingdom.

L- R: Head, Product Management, The Nigerian Stock Exchange (NSE), Mr. Oladipo Omotoso; Chief Executive Oﬃcer, Chapel Hill Denham Securities Limited, Mr. Akeem Shadare; Executive Director, Business Development, NSE, Mr. Haruna Jalo-Waziri and Compliance Oﬃcer, Chapel Hill Denham Securities Limited, Ms. Ewere Mgbeke

www.instinctbusinessmag.com

United Capital Nigeria Grows Assets by 20% growth in the company's bottom line. Profit after tax rose by five per cent from N1.76 billion to N1.84 billion. "This profitability level was achieved notwithstanding that the company operates predominantly in the capital market space where the equity market in general posted a negative return of 16.1 per cent in 2014,"the company said.

Mrs. Toyin Sanni, Group CEO of United Capital Trustees Limited

nited Capital has recorded growth of 20 per cent in total assets to N95.29 billion for t h e ye a r e n d e d December 31, 2014, from N79.48 billion in 2013. According to the audited results, the company's cash and cash equivalents made up 33 per cent of the group's assets, while ﬁnancial a s s e t s m a d e u p 6 1 p e r ce nt . Shareholders' funds stood at N9.31 billion while return on average equity (ROAE) was 21 per cent. A further analysis of the United Capital showed that it ended the

year with gross earnings of N 4.68 billion, indicating an increase of 2.3 per cent from 2013. The gross earnings were driven primarily by fee and commission Income, which accounted for 39 per cent, while investment income accounted for 35 per cent. The company also grew net interest margin, which is income generated from funds under management by 103 per cent. Operating expenses (opex) increased by 18.6 per cent from N2.1 billion in 2013 to close at N2.4billion. This growth in opex aﬀected the

Also, the management of United Capital is confident of its ability to sweat the growth in assets to achieve greater profitability in future. "Management's current drive is for a reduction in cost to income ratio through income growth from all the businesses as well as the deployment of recently acquired IT Infrastructure to drive efficiency," the company said. According to the company, it will continue to play a leading role across its areas of operations in Trusteeship, Investment Banking, Asset Management and Securities and looks forward to expanding its scope of operations to comprehensively cover the entire investment life-cycle.

NSE Appoints Chapel Hill Denham Securities as Primary Market Maker he Nigerian Stock Exchange (NSE) has announced the appointment of Chapel Hill Denham Securities Limited (CHDS) as one of its Primar y Market Makers. The appointment of CHDS follows the resignation of WSTC Financial Services Limited, one of ten Primary Market Makers appointed in September 2012. www.instinctbusinessmag.com

The Executive Director, Business Development, NSE, Mr. Haruna JaloWaziri, described the appointment as a positive step towards the improvement of market liquidity and depth. He added that, “Chapel H ill went through a r igorous selection process and met the minimum net capital requirement, as well as compliance history and operational standards, as set by The Exchange”. According to The Exchange, the

Market Making scheme is an initiative aimed at providing liquidity through the establishment of best prices and the narrowing of spreads. There is one Primary Market Marker and two Supplemental Market Makers assigned to every listed equity. Market Makers provide liquidity for their assigned stocks by quoting at and improving upon the national best bid and oﬀer (NBBO).

Julius Berger Plans Investments in Nigeria’s Power Generation needs infrastructure and this is our core business. We will be involved in power plants, that is where we see an environment that will grow and we want to be part of that. “Julius Berger will be there as a partner to establish the techniques to erect power systems in Nigeria. It is going to be thermal that we will be doing and not hydro.” “In this regard, Julius Berger seeks to initiate the kind of partnership that GE (General Electric) has with Nigeria. GE for instance, is partnering with the Ministry of Power to support the development of 10,000 megawatts (MW) of power over the next 10 years in the country. “It has also partnered with a number of local power generation companies to ramp up electrical output throughout the country, as well as with the Niger Delta Power Holding Company ( N D P H C ) i n t h e construction of its 10 power plants under the National Integrated Power Project (NIPP)”. Managing Director of Julius Berger Nigeria, Detler Lubasch

he Managing Director of Julius Berger Nigeria, Detler Lubasch has disclosed that it is looking at the possibility of investing in power generation in the country in partnership with other credible investors. He said this at the just ended Nigeria Oil and Gas Conference and Exhibition in Abuja, noting that the power sector is the future

www.instinctbusinessmag.com

of the economy. “We are exploring our course in the power sector, which is the area we see the future. We also see the future in gas and oil. There is no doubt that gas and oil will be there in 20 years and longer but our core business is still building and road construction,” he explained. Lubasch stated that the current reforms in the power sector come with great potentials that the company would like to tap into. He said: “As you all know, Nigeria

Julius Berger had in December last year signed agreement with American ﬁrm, General Electric, for the construction of a multi-modal manufacturing and assembly plant in Calabar, Cross River State. The facility which would have an improved ability to support a broader range of product lines in power generation as well as oil and gas exploration and production is part of the $1billion (N168b) investment plan announced by GE Chairman, Jeff Immelt in January 2013.

MasterCard Launches First MSME Acceptance Development Program in Nigeria asterCard has launched Nigeria’s ﬁrst Micro, Small and Medium Enterprise ( M S M E ) focused Acceptance Development Program that will ex tend the s e c u r i t y a n d c o nve n i e n c e o f electronic payments to merchants and their customers who previously depended on cash to transact. To kick oﬀ the program, MasterCard is partnering with First Bank of Nigeria and Guaranty Trust Bank Plc (GTBank) to roll out hundreds of Mobile Point of Sale (MPOS) devices to retailers including Fast Moving Consumer Goods outlets, grocers and leading online stores allowing them to process debit, prepaid and credit card transactions by using a smartphone connected to a secure card reader. “MSMEs are an important sector in our economy, representing 95% of registered businesses in Nigeria. However, nearly 98 percent of all

MSME transactions are still made with cash,” says Omokehinde Ojomuyide, Vice President and Area Business Head, MasterCard, West Africa. “Using innovative payment technology, this program will help MSMEs reduce the costs of cash, increase sales, grow their customer base and improve cash ﬂow, while making it easier and safer for their customers to pay.”

adopt electronic payments, MasterCard is working with MPOS solution providers to introduce a range of value added services including loyalty programs, air-time top up, person-to-person remittances, bill payments, inventory control and others. These services will enable merchants to grow their revenues and increase eﬃciencies.

The MPOS solution comprises a MPOS payments application and a physical card reader with a secure PIN pad for PIN entry that connects to the merchant’s smartphone using Bluetooth. This negates the need for merchants to access a ﬁxed data or telephone line, and helps them to overcome connectivity challenges as the devices use a range of data connectivity options including EDGE, 2G, 3G, and 4G. They also adhere to the ‘CHIP and PIN' certiﬁcations mandated in Nigeria, meaning consumers can be assured that their transactions are safe and secure.

“The rapid growth of smartphones in Nigeria provides a huge opportunity for innovation across all industries – especially in payments,” says Ojomuyide. “This program uses smart technology that transforms m o b i l e d e v i ce s i n to to o l s o f commerce, and delivers services that will beneﬁt all stakeholders in the payments ecosystem. It also suppor ts the Central Bank of Nigeria’s Cashless Nigeria policy, and will help this vital sector to connect more eﬃciently to the national and global economy.”

To further encourage MSMEs to www.instinctbusinessmag.com

Boosting Your Health with Lettuce

e uce (Lactuca sa va) is an annual plant of the aster or sunflower family Asteraceae. It is m o st o e n g ro w n a s a l e a f vegetable, but some mes for its stem and seeds. Le uce was first cul vated by the ancient Egyp ans who turned it from a weed, whose seeds were used to produce oil, into a plant grown for its seeds and leaves. Le uce spread to the Greeks and Romans, the la er of whom gave it the name "lactuca", from which the English "le uce" is ul mately derived. Health benefits of Le uce Le uce leaves are one of the very low calorie green-vegetables. 100 g fresh greens provide just 15 calories. Nonetheless, they are the store house of many phytonutrients that have health promo ng and disease preven on proper es. Vitamins in le uce are plen ful. Its fresh leaves are an excellent source of several Vitamin A and beta carotenes. Just 100 g of fresh, rawwww.instinctbusinessmag.com

le uce provides 247% of daily vitamin A, and 4443 µg of betacarotene (Carotenes convert into vitamin A in the body; 2 µg of carotene is considered equivalent to 1 IU of vitamin A). These compounds have an oxidant proper es. Vitamin A is required for maintaining healthy mucus membranes and skin, and is also essen al for vision. Consump on of natural fruits and vegetables rich in ﬂavonoids helps to protect the body from lung and oral cavity cancers. It is a rich source of vitamin K. Vitamin K has a poten al role in the bone metabolism where it thought to increase bone mass by promo ng osteotrophic ac vity inside the bone cells. It also has established role in Alzheimer's d i s e a s e p a e nt s by l i m i n g neuronal damage in the brain. F re s h l e av e s c o n ta i n g o o d amounts folates and vitamin C. Folates are part of co-factors in the enzyme metabolism required for DNA synthesis and therefore, play a vital role in preven on of the neural tube defects in the baby

(fetus) during pregnancy. Vitamin C is a powerful natural an oxidant; regular consump on of foods rich in vitamin C helps the body develop resistance against infec ous agents and scavenge harmful, pro-inflammatory free radicals. Zea-xanthin (1730 µg per 100 g), an important dietary carotenoid in le uce, is selec vely absorbed into the re nal macula lutea, where it thought to provide an oxidant and filter UV rays falling on the re na. Diet rich in xanthin and carotenes is thought to offer some protec on against age-related macular disease (ARMD) in the elderly. It also contains good amounts of m i n e ra l s l i ke i ro n , ca l c i u m , magnesium, and potassium, which a re v e r y e s s e n a l fo r b o d y metabolism. Potassium is an important component of cell and body fluids that helps controlling heart rate and blood pressure. Manganese is used by the body as a co-factor for the an oxidant enzyme, superoxide dismutase. Copper is required in the produc on of red blood cells. Iron is essen al for red blood cell forma on. It is rich in B-complex group of vitamins like thiamin, vitamin B-6 (pyridoxine), riboflavins. Regular inclusion of le uce in s a l a d s i s k n o w n to p re ve nt osteoporosis, iron-deficiency anemia, and believed to protect from cardiovascular diseases, ARMD, Alzheimer's disease and cancers.

This ar cle is courtesy of Eden Tree Ltd.

www.instinctbusinessmag.com

Nigeria Tops List Of Kenyaâ&#x20AC;&#x2122;s Biggest African Tourism Customers 3rd and 4th respec tively and Uganda comes in 5th.

new survey on local, regional and international travel based on a 2014 bookings by Jovago reveals that Nigeria is the dominating African tourist customer of Kenya while the United Kingdom takes lead in international bookings destined for Kenya.

Capital city Nairobi stands undoubtedly as a major business hub as most of the domestic travellers â&#x20AC;&#x201C; a whopping 79 percent â&#x20AC;&#x201C; originate from there. Mombasa had 6 percent of travellers heading for Kenyan destinations while Eldoret takes 3 percent. The other cities spread across Kenya registered a combined 12 percent.

As the results indicate, with the new wave of development in infrastructure, introduction of new tourism products besides the traditional safari and culture and emergence of new attractions, Kenya is in no doubt aiming for the prize when it comes to Tourism in Africa.

Unsurprisingly, Nairobi is the most popular destination for domestic travellers taking in 25 percent of the total in-bound bookings, Naivasha is also a preferred destination as 21 percent of the travellers go there. Mombasa and Eldoret are also respectively popular destinations amongst other cities across Kenya.

The most remote bookings made to hotels in Kenya spanned from across the world. The Nordic island of Iceland was one of the locations from which bookings to Kenya were made! Remote bookings were also made from Georgia, Afghanistan and Australia but the farthest in air miles was from Melbourne, Australia (11507 kilometers).

The Kenyan Tourism I ndustr y maintains the stand as the principal source of foreign exchange as well as one of the main social economic hub, contributing to more than the global Average at 12.1 percent (WTTC 2013).

International Travellers

Most Visited Countries in East Africa

Our survey shows that the bulk of international travellers to Kenya are from the Nigeria closely followed by the United Kingdom. Travellers from the United States and France rank

Kenya and Tanzania top this list closely followed by Ethiopia, Uganda and Rwanda.

www.instinctbusinessmag.com

Domestic Travellers

On the other hand, the most popular destinations for Kenyans are The Netherlands, closely followed by United Arab Emirates. South Africa and the United Kingdom come in 3rd and 4th place respectively and Belgium comes in 5th! Most Remote Booking

Kenya Joins Top 10 Geothermal Producers

enya is now the 7th highest producer of geothermal power as it unveiled the b i g g e s t geothermal plant in the world which added an extra 280MW to the national grid. Immediately after commissioning by Pa u l K a g a m e o f R w a n d a a n d Pr e s i d e n t U h u r u K e n y a t t a i n Naivasha, the government announced that it would further reduce the cost of power for industries and households. The cost of power has been reducing drastically since October 2014, when President Kenyatta commissioned the ﬁrst 140MW plant. The Olkaria 1 Geothermal plant added an extra 140MW, placing the country as the top producers of clean energy. With the additional power, Kenya increased its chances to host the global geothermal summit in 2020. Kenya has since submitted a bid to host the international conference and is competing with United States and Japan, among others. This is another milestone in the Jubilee Government’s journey to deliver an additional 5,000 megawatts in ﬁve years. The implementation of the 280MW geothermal project in Olkaria is a giant step in powering the nation,

reducing the use of fuel in production of electricity and thus making it cheaper. As a result, the cost of a kilowatt of electricity has dropped from Sh7.22 last August to Sh2.51 this month. Speaking at the occasion, President Kenyatta termed the inauguration a ”historic promise for the people of Kenya and East Africa.” “This commissioning ceremony is the culmination of immense exemplary eﬀort, colossal investment and admirable collaboration by many partners,” he said. The President said geothermal generation is powering the region’s transformation story. He said the transformational agenda is aimed at growing the East African countries economies fast enough to generate prosperity for its people. He said this requires a commitment to invest in projects that enable our people and their enterprises to work better, produce more and compete well. “It also requires us to dedicate our leadership to attract investment and capital into our domestic and regional economies,” he added. President Kenyatta pointed out that regional leaders have realised that the transformation agenda could be accomplished both at country and regional levels. It is for this reason, he said, that the

leaders had jointly embarked on ambitious and visionary infrastructural projects to accelerate regional integration, catalyse economic growth to make their countries the most compelling investment destinations globally. “Ever since the endorsement of this joint resolve, East African leadership has demonstrated commitment, enthusiasm and inspiration,” he added. The Head of State said Kenya is now among global leaders in the investment and scale of development in unlocking the geothermal promise. “We are also global pioneers in deploying the cost-saving well-head technology to ensure that our investment goes farther. Energy costs contribute significantly to the cost of producing goods and services,” he said. He said the government is committed to reducing the cost of energy and production to accelerate development. He said the generation of 280MW has reduced the cost of electricity by 30 per cent. He called on all producers to pass the benefits of cheaper power to consumers. President Kenyatta disclosed that the benefits of increased power production have been felt in all parts of the country. More importantly, he said 17,551 primary schools have been connected to electricity. By April 30 this year, all 21,168 primary schools in the country will have been powered through grid extension and solar units. “By Labour Day, all our primary schools will have been connected to power. We expec t a dramatic improvement in school performance with equitable access to modern ICT learning,” he said. Present were several Cabinet Secretaries, Nakuru County Governor Kinuthia Mbugua and the Japanese Ambassador to Kenya Tatsushi Terada among other senior Government officials.

www.instinctbusinessmag.com

Ghana Oil Company Gets ISO Certication hana Oil Company Limited (GOIL) has been presented w i t h ISO/7900:2008 certification for its best practices in the industry. GOIL was presented with the certificate by Mrs. Gauri Bhagwat, a Lead Auditor and Trainer for Quality/Environmental and Occupational Health and Safety Management Systems for International Register of Certificated Auditors, UK (IRCAUK), as evidence of being ISO \7 9001:2008 cer tified with the International Organisation for Standardization (ISO). The ISO Certificate was received by

Mr. Patrick Akorli, Managing Director of GOIL over the weekend at GOIL Executive Centre, Cantonment, Accra.

the 4 year period, GOIL had to review its processes, procedures and forms following which there were internal audit for 2 months”.

Presenting the certiﬁcate to GOIL, Mrs. Bhagwat, applauded GOIL for having maintained quality practices in every facet of the business, and revealed that organizations that establish and maintain internationally recognized management systems can be independently audited by certiﬁcation bodies.

The GOIL boss added that the final external audit was conducted before certification in December, 2014 and the certification was approved in January, 2015 of which a formal presentation is being done today.

Commenting on the ISO Certificate, Mr. Patrick Akorli said, “The ISO program started in 2008 with a 2-weeks intensive awareness training for all staff from management to junior staff. Within

He said that GOIL was now poised to venture onto the international platform to compete with multinational companies in the oil m a r k e t i n g i n d u s t r y. G O I L continues to remain one of the forerunners in the downstream petroleum industry, he added.

www.instinctbusinessmag.com

Barclays Africa To Acquire Equities Trading Licence In Nigeria arclays Africa Group Limited, which is expanding on the continent after buying most of its parent's operations in Africa, has applied for an equities trading license in Nigeria in addition to a commercial licence. The chief executive oďŹ&#x192;cer of the Johannesburg-based lender, Maria Ramos in a recent presentation said "We really want to follow our corporate clients into Nigeria," "We want to bank our global and local clients in Nigeria. It's an important, large and vibrant economy."

Barclays Africa has a presence in 12 African countries including Kenya, where it has now applied for an insurance license. When the South African bank bought Barclays Plc's operations in eight African nations in 2013 for 18.3 billion rand ($1.52 billion) in stock, Eg y p t a n d Z i m b a bwe we re excluded because of political turmoil and potential regulatory delays. While Barclays Africa now wants to buy those units, "Egypt will be a very tough negotiation with Plc because the pricing has changed," Ramos said. "We will have to pay a very competitive price."

continent while using its parent's franchises to also boost consumer lending outside of South Africa. Within that country, it's the largest consumer bank after Standard Bank Group Limited and has the most ATMs. Barclays Africa wants its operations outside of South Africa, which account for 19.5 per cent of earnings, to contribute 20 per cent to 25 per cent of earnings by next year, according to Ramos. While the lender is targeting a return on equity of 18 per cent, with a current ďŹ gure of 16.7 per cent "it may be a stretch to get there," she said.

Barclays Africa is rolling out corporate and investment banking ser vices across the

www.instinctbusinessmag.com

Kenya, Uganda, Nigeria ,South Africa top TEF’s $100m Entrepreneurship Programme North, East, South, Central, and West Africa were represented, as well as all major language blocs – Anglophone, Francophone, Lusophone, and Arabic Africa. The founder of the TEF, Mr. Tony O. Elumelu, noted that over 20,000 A f r i c a n entrepreneurs from 52 countries applied to the programme, “representing the creativity and potential on display across the continent.”

Tony Elemelu

he Tony Elumelu Foundation (TEF) has announced its first 1,000 A f r i c a n entrepreneurs for the Tony Elumelu Entrepreneurship Programme (TEEP). The top five countries in terms of the number of winners in the $100 million entrepreneurship programme were Nigeria, Kenya, Uganda, South Africa and Ghana. The winners, according to the board of the TEF emerged from 52 African countries and territories, as well as a multitude of value adding sectors ranging from agriculture, education, fashion and information and communication technology (ICT) All the five regions in Africa – www.instinctbusinessmag.com

He also said “the selection of these 1 , 0 0 0 entrepreneurs bring us closer to our ultimate goal – to drive Africa’s economic and s o c i a l transformation from within and to radically intensify job creation in Africa. Though I have never met or spoken to any of the winners, I am conﬁdent that due to the rigorous criteria and selection process, these entrepreneurs are Africa’s hope for the future. “I will continue to invest my experience, time, inﬂuence, and resources to see them succeed. I am embarking on this journey with these entrepreneurs hopeful and inspired.” The TEEP is a $100 million initiative to discover and support 10,000 African entrepreneurs over the next 10 years, with a target, according to the TEF, “of creating one million new jobs and $10 billion in additional revenues in the process.”

On his part, the Director of E n t r e p r e n e u r s h i p o f T E F, Parminder Vir, who was visibly excited about the quantity and quality of the applicants, reiterated the foundation’s commitment to ensuring the growth of budding businesses in the continent. She said: “The high quantity and quality of applicants we have received is testament to the brilliant ideas and incredible talent that exists in abundance across Africa. “ T h e To n y E l u m e l u Entrepreneurship Programme will give structure and support to these African entrepreneurs to develop themselves and to grow their businesses. Through TEEP, the ripple effects of the long-term investments in a new generation of Africapitalists will be felt throughout the continent.” Meanwhile, Elumelu advised unsuccessful applicants, who were not selected, not to give up on their dreams. He urged them to continue developing themselves, and their business ideas, pointing out that perseverance is one of the key attributes of a successful entrepreneur. In selecting the ﬁnal winners, TEF appointed Accenture, a management consulting, technology services, and outsourcing company, as an independent review consultant to thoroughly evaluate each application based on selection criteria approved by the TEEP selection committee. The criteria included: feasibility of the business idea, market o p p o r t u n i t y, ﬁ n a n c i a l understanding, and scalability, leadership potential and entrepreneurial skills.