Desmond Tutu and Swaady M. Martin-Leke.

A fresh generation of African leaders will be featured on new Al Jazeera English series Tutu’s Children.

The four special documentaries will follow the exploits of participants in the leadership programme Desmond Tutu leads, which attempts to build a new network of African leaders who are together committed to tackling their countries’ most stubborn problems.

Viewers will witness the legendary archbishop pass the baton of moral leadership to these emerging leaders who are drawn from across Africa.

Once they pledge themselves to Tutu’s mission, the participants are put through group tasks designed to bring out their true colours – from conducting a choir to cooking under pressure.

They are provoked to re-examine their opinions in debates on the most controversial ‘African’ issues – racial hierarchy, corruption, privilege, and Western democracy. This experiment also pushes them out of their comfort zones emotionally, culturally and intellectually.

With exclusive access, the series follows Tutu’s class of 2012, focusing in particular detail on the lives of five very different participants, as together they are coached to become a ‘moral task force’ for Africa.

The young leaders are followed in their home cities as well as during the coaching, with filming in Tunis, Cape Town, Kigali, Johannesburg, Oxford and London over a period of seven months. Tutu’s fellowship is run in conjunction with Oxford University.

Al Jazeera director of programmes Paul Eedle said, “Tutu’s Children offers a rare chance to witness a turning point in the lives of those who may one day change the course of Africa’s history. The travails of our fantastic onscreen characters will entertain and will also give our viewers a strong glimpse into the big issues affecting Africa.”

The first episode debuted on 10 January 2013. You can watch the full episode on YouTube.

The second episode, where the participants meet Tutu, Black Consciousness co-founder Mamphela Ramphele, and Kenya’s former Anti-Corruption Commission Director Patrick Lumumba, screens from 17 January 2013 on:

Thursday: 20h00
Friday: 12h00
Saturday: 01h00
Sunday: 06h00
Monday: 20h00
Tuesday: 12h00
Wednesday: 01h00
Thursday: 06h00

Watch the promo for the second episode on YouTube.

For more information, visit Al Jazeera English.

InformAfrica – Africa news gathered recently reports Ghana is in plans to establish a gold refinery by 2013 which will be used to process the gold produced in the country, especially from small scale mining sector.

Ghana is to benefit from the exploitation of its vast gold resources and precious metals. -InformAfrica

Ghana is a west African country endowed with mineral deposits such as gold, diamond, manganese and bauxite. There are also unexploited economic deposits of iron ore, limestone, kaolin, feldspar and silica sands.

According to information gathered via Ghana News Agency press release, the Precious Minerals Marketing Commission (PMMC) Limited would by July 2013 establish a gold refinery to enable the Commission add value and fetch higher dividends from gold produced with daily commercial refining capacity of 10 kilogrammes.

Mr Rueben Darko Damptey, Managing Director of the PMMC,  said on Monday, that the operations of the refinery would cost 3.5 million dollars and it would help in putting to an end the gold scamming business being perpetrated in some African countries.

He was speaking to journalists at the end of a short ceremony organized by PMMC to welcome a delegation from the Zambia Consolidated Copper Mines Limited (ZCCM) to learn from the best practices of Ghana’s small-scale mining industry.

Mr Damptey said management was in the process of establishing a laser cutting system for complicated and bigger diamond by November 2013 at an expected cost of 500,000 dollars.

He said he was optimistic that the improved cutting method would enable the Commission to both cut and polish the rough stones that had been mined locally at full capacity and also to fetch profit at the world market price.

Mr Damptey said management would continue to implement variety of training programmes to sharpen the skills, knowledge and technical competence of PMMC staff.

He said the Commission had targeted to operate in new markets in the country and in the Economic Community of West Africa States through market co-operation and imaginative collaboration with international jewellery manufactures.

He added that management would develop other local stones for ornament making.

Mr Damptey expressed optimism that the Zambian delegation would gain insight into the organized activities of Ghana’s small-scale mining industry.

Mr Mwiza Mbewe, Investments Manager with the ZCCM said he was so far satisfied with what he had learnt and heard about the industry in Ghana.

He said his country was deeply involved in mining semi-precious stones like emerald, amethyst and aqua marine.optimistic that the Ghanaian experience would be useful in helping ZCCM to develop other mining sectors of the Zambian economy.

Africa News: Gold refinery in Ghana to kick off by 2013

The PMMC was established in 1963 as Ghana’s Diamond Marketing Board charged with the responsibility for the purchase and marketing of the country’s diamonds.

In 2000, it was converted by Act 461 to a limited liability company to operate under the Ghana Companies Code (Act 179 of 1963) as Precious Minerals Marketing Company Limited.

PMMC is mandated to buy and sell gold and diamonds from small-scale miners, produce gold jewellery for sale locally and internationally as well as to export gold on behalf of third parties for a commission.

It is also to smelt and assay gold at the request of agents and suppliers for sale and appoint licensed buyers for the purchase of precious minerals produced by small-scale miners.

This Africa news is filed under: Business

________

Credit: Ghana News Agency

Africa news gathered by InformAfrica today reports India has promised to support local entrepreneurs in Tanzania in order to improve their efficiency and compete more effectively.

The following Africa news was reported by Tanzania’a The Guardian Newspaper:

India to support Tanzanian local entrepreneurs. In this photo: SIDO Director General, Mike Laiser.

IPPMedia – India has promised to provide more support to Small Industries Development Organisation (SIDO) to enable it serve more entrepreneurs and improve their livelihood.

The promise was given on Tuesday in Dar es Salaam by the Indian High Commissioner to Tanzania Debnath Shaw after visited various operations of the organisation located at Vingunguti in Dar es Salaam.

He said Tanzania and India have a long history which has benefited both countries in one way or another, hence the need to enhance such cooperation.

“We can look for areas which need support and see what both governments can do to improve our economies,” he said.

Ambassador Shaw said India has a long experience in development of small scale industries and urged the organisation to tap such opportunity.

“I understand that SIDO has been collaborating with an Indian-based organisation called NSCI in various areas. We have to see how we can improve them,” added.

Former minister Edgar Maokola Majogo who is the founder of Southern Jumbo Cashewnut Limited said the challenge most entrepreneurs are facing is lack of capital.

He said they have tried to borrow from various commercial banks which have helped to improve their operations.

“I took a loan from CRDB bank which enabled me to install this processing plant here which employs 13 permanent staff and 180 daily casual workers. Since the start of our operations last year we have managed to export over 25 tons of cashewnut overseas.

For his part the SIDO Director General Mike Laiser, thanked the Indian government for the support which it has been providing to the organisation.

He said the Indian government has agreed to support the incubator innovations programme which would benefit many entrepreneurs.

“We will start with Dar es Salaam region, where we have the infrastructure and go to other regions later. Our major aim is to improve their efficiency so that they compete at various levels,” he affirmed.

________

Source: IPP Media

InformAfrica – The largest outsourcing marketplace in the world, Freelancer.com has launched in French-speaking Africa, putting the African continent at the forefront of the digital business revolution.

According to Freelancer.com, you can hire freelance programmers, web developers, designers, writers, data entry & more at a fraction of the cost on the World’s Largest Outsourcing Marketplace.

LONDON, September 10, 2012/PRNewswire via African Press Organization (APO)/ –

Freelancer.com, the world’s largest online marketplace for outsourcing, launches the French version of its website across the whole of French speaking Africa today, creating the largest online business marketplace in the French speaking world.

The site aims to connect French speaking freelancers and businesses across Africa and France in a single online marketplace. Through the site businesses and employers will be able to hire freelancers to do work in areas such as software, writing, data entry and design right through to engineering and the sciences, sales & marketing and accounting & legal services.

Freelancer.com has already helped more than 4 million people start up and grow businesses or become freelancers worldwide, helping them turn their ideas into real money-making businesses at a fraction of the cost, or helping them to find work via the internet.

“The launch of Freelancer.com will put French-speaking Africa at the heart of digital business revolution. French-speaking African freelancers and businesses will be able to connect with each other as well as work for French businesses. They will be able to trade across the whole of the French speaking world,” said Matt Barrie, CEO of Freelancer.com

“Economists in the U.S. have already compared this shift with the Industrial Revolution. In every country that Freelancer operates, people have been able to turn their ideas into successful businesses. Hundreds of thousands of users of Freelancer worldwide say that they couldn’t have started and grown a business without having access to Freelancer’s global network of freelancers and business opportunities.”

Editors’ notes

Webby award-winning Freelancer.com is the largest outsourcing marketplace in the world. Through Freelancer.com., businesses connect with independent service providers and freelancers. Freelancer.com connects more than four million professionals from all over the world. Through our website, employers can hire freelancers to do work in areas such as software, writing, data entry and design right through to engineering and the sciences, sales & marketing and accounting & legal services. Jobs start at $30, and the average job is under $200, making Freelancer.com extremely cost effective for small businesses and entrepreneurs, which often need a wide variety of jobs to be done, but cannot justify the expense of hiring full time.
Contact:

Bill Little

Director of Communications

bill@freelancer.com

Source: Freelancer.com

+44(0)7940-924555

________

SOURCE

Freelancer.com

Information gathered via IPPMedia reports that Pakistani investors are keen to invest in Tanzania’s construction industry by opening up a cement factory, the country’s envoy has said.

Tajammul Altaf the Pakistan High Commissioner to Tanzania, told journalists during celebrations to mark 66 years of his country’s independence yesterday that they were attracted by the country’s investment climate.

H.E. Hon. Anne S. Makinda, Speaker, National Assembly of Tanzania receiving High Commissioner Tajammul Altaf (08.12.2011)

He said investors from Pakistan have established that Tanzania was a suitable place for investment in different fields because of its political and environment stability.

“I am very sure and optimistic that more Pakistani investors will be given opportunities to invest in this country,” said the envoy.

He noted that Tanzania has been cited as among the best African destinations for investors seeking different opportunities. Altaf said 35 investors from Pakistan visited the country looking for opportunities in the areas of manufactures and cement production.

He said the investors identified cement as one of the highly demanded commodities in the country.

“Cement from Pakistan has been doing well in the Tanzanian market. It is being sold more cheaply than the one produced in Tanzania. That is the reason Pakistani investors saw the need to invest in that field.”

He said trade between the two countries has grown and was recently put at USD 75m compared to USD 50 previously, and that it is expected to increase to USD100m by 2015.

The envoy challenged the Tanzania Investment Centre (TIC) and the Ministry of Industries and Trade to work on the challenges, and improve the investment climate.

________

Credit: IPPMEdia

InformAfrica – With a clear objective in the Horizon 2020 Plan, the Government of Equitorial Guinea continues with its policy of investment and improvement of the country’s infrastructures.

The President of Equatorial Guinea,Teodoro Obiang Nguema Mbasogo, in full action of placing the foundation stone of different infrastructures.

With this aim, on August 2nd the President of Equatorial Guinea, Teodoro Obiang Nguema Mbasogo, laid the first stone of the large projects that will facilitate converting Equatorial Guinea into an emerging country.

President Teodoro Obiang Nguema Mbasogo proceeded, within the agenda of the activities programmed for the 33rd Anniversary of the Freedom Coup, to inaugurate the bridge over the River Wele, the City Council of Mbini, the Bolondo highway and the Mbini Stadium.

But these great inaugurations followed other activities such as the laying of the foundation stone of different infrastructures, such as the Public Market; the District Courthouse; the Mbini Hospital; the Police Station and residence; the residence of the district education inspector; the construction of 52 social houses; the Mbini-2 subdivision; the project for the drinking water supply, sewer and home connection in Mbini and the construction of a boardwalk, which will be located on each side of the bridge and will have a length of more than a thousand meters.

The first stone was also laid for the highway connecting Sipolo, Nume, Ndote, Bilen; the bridge over the Ndote River –with a length of 107 meters and 11 meters in width; the Bata-Bome highway passing through Bolondo; the construction and gravelling of the Ndote-Handje section of highway of 9.8 km and the installation of telecommunication repeater antennas that will connect the coastal towns.

In addition to laying the foundation stone, different projects to be carried out in upcoming dates were presented, such as the work of improving the road from Bata to Niefang; the expansion and modernization project of the port of Bata; The linking of the interchange in the junction of Bindung; asphalting work in different sections of the Mbea-Nsang-Nsok-Nzomo-Ñoankien highway, with a length of 87 km; Mongomo-Ebebiyin of 73 km; Asok-Aconibe-Oveng of 101 km; Mongomo-Nsork of 64 km; Micomeseng-Ebebiyin of 96 km; Bindung-Rio Campo of 66 km or the project of planning the new park of Malabo that will have nine areas, including one of forest preservation.

Equatorial Guinea is focused on improving the communications capabilities of its country and achieving the objectives of the Horizon 2020 Plan. Equatorial Guinea took the first decisive step towards improving communications in October 2009, when optical fiber cable was laid to connect the island of Bioko and the continental region. This November 2012, the optical fiber cable of ACE (Africa Coast to Europe) will connect Equatorial Guinea with twenty other countries, both African and European alike.

Carmelo Martin Modu Ebuka, the current Secretary of State for Technology and Telecommunications, said that the 275 kilometers of optical fiber cable linking Bioko and the continental region was the most ambitious government project to improve internal communication systems to date.

___________

Source: Equatorial Guinea’s Press and Information Office

InformAfrica - Kola Aluko, an International businessman, has expressed his optimism for the future of motor racing in Africa, saying he believes African manufacturing industries will soon be in a position to compete with major global suppliers to the sport.

Kola Aluko, Nigerian-born international business mogul.

“We’ve already seen multinationals in other industries moving manufacturing operations from China to Africa, and I think that’s a trend that’s likely to continue as factory wages continue to rise throughout many parts of Asia,” said Nigerian-born Aluko.

Kola Aluko is an avid motor racing enthusiast and has participated in a number of major European races for the Swiss team Kessel Racing. He and his co-driver Thomas Kemenater finished fourth overall at last year’s Rome 6 Hours endurance race at the ACI Vallelunga Circuit.

Nigeria is one of a handful of countries in Sub-Saharan Africa that are beginning to flex their motor sporting muscles, with the recently founded Nigeria Racing Eagle (NRE) due to compete in major events over the next few months, including the FIA GT3 series.

NRE has joined forces with the UK’s Tiger Racing to establish a development centre in Nigeria to train young mechanics and engineers. The new team recently unveiled its car: a silver and green Audi R8 LMS.

“Not just in Nigeria, but throughout West Africa and beyond there is real passion for motor racing,” Aluko said.

“As that domestic demand grows it will present opportunities for the development of home grown industries surrounding the sport, from the manufacture of parts and tyres to servicing and maintenance.

“In time, I see no reason why African suppliers shouldn’t follow the lead of firms in other sectors in attracting business from major western players as well as from the BRICs. It’s definitely within reach.”

_______

Source: KA News

This review looks into Nigeria’s development in a global context, and reports that GDP growth in Africa’s most populous nation is expected to average 6.7% in the coming years – despite economic downturn.   

Odun Odunfa, CEO of Kedari Capital Ltd, in the interview transcript below urges investors to look beyond negative stereotyping and provides a real overview of Nigeria’s development, highlighting that its banks are now ‘rated at the top of their game’ on the continent and are fundamental to the nation’s sustained progress.

Real GDP growth in Nigeria is expected to average 6.7 per cent for the coming years. Despite global economic downturn, Nigeria is back on the right path, although many challenges still have to be addressed. Proof of this are the reforms being undertaken in all key sectors of the economy in order to diversify away from oil and gas. 

The following interview with Odun Odunfa, CEO of Kedari Capital Ltd Nigeria, was culled from Worldfolio:

Could you comment on Nigeria’s financial sector as an economic driver, and the role it plays within government’s transformation agenda?

Odun Odunfa, CEO of Kedari Capital Ltd, Nigeria.

The Nigerian financial sector is crucial to economic growth. In fact if you look at the stock exchange, the capitalisation of the banks often represents between 30-40 per cent of the exchange. I think that gives you an idea of how important it is to the economy as a whole. Globally I think it is recognised that there can be no economic growth if there is no intermediation by the banks, taking businesses from deficit to surplus, providing operational capital, etc; so it is definitely key. The history of the Nigerian banking system, especially over the last 20-25 years, has been a success story, despite the challenges we have faced. Nigerian banks are rated at the top of their game in Africa today, and also currently feature in the global list of banks worldwide. My take is that the industry has done well, and will continue to do so, because of the type of people and institutions that we have, the emerging regulatory environment, and the general focus on development in our economy.

Despite the new focuses on agriculture and manufacturing, is the government doing enough to diversify the real economy away from oil? 

They are doing something, but I am not sure that ‘enough’ is the right word. ‘Enough’ implies that all has been done; in the Nigerian case, there are obviously more steps to take. Agriculture incentives need to be put in place and in an objective manner. The manufacturing sector needs to be further incentivised to perform, because you cannot leave the manufacturing base to the economic forces of demand and supply alone. Today the West is trying to push for open trade between economies. If you have a highly developed and sophisticated manufacturing base, producing at near full capacity, it is easy to push for open trade, but when struggling with issues of power, infrastructure and transportation, I am not sure if it is in your best interest to push for open trade. My view is that targeted incentives should be put in place, and more should be done to support the manufacturing base of Africa’s most populous economy.

The Nigerian Stock Exchange (NSE) is the second-largest financial service centre in sub-Saharan Africa. Total market capitalisation is 63.4 billion, but is expected to reach 1 trillion in the next five years. Do you think the trillion target is feasible, taking into account the NSE’s current situation? 

I think it is achievable in two years. For example, if you look at the top-performing companies in this country, they are not on the NSE. Around 80-90 per cent of our foreign exchange comes from oil, as well as 40-50 per cent of our GDP. With the major players in the oil sector sitting on the exchange, 1 trillion is nothing, it can be achieved. It is the same in the telecom sector. That is really the story. If the telecom sector entered the NSE, we would probably be talking about 5 trillion.

The NSE does not reflect the economic realities of the country. What steps need to be taken in order to attract new players to be listed? 

It is simple. A friend of mine cracked a joke the other day, and I tend to agree: if you are making enough money in your business, you will not be interested in bringing other people in to share your money. That applies to the situation in Nigeria. Why should the people who are really making revenues in oil and telecoms give it up? It is a robust combination of incentives and legislation that will allow these companies to see the benefits of listing. I do not believe that you can just force them to list overnight. They must be able to see concrete benefits in listing, such as tax incentives, etc. It has to be a carrot and a stick. It is not in our interest as a country for those companies to remain unlisted.

Could you comment on Nigeria’s potential to become the gateway to African capital markets? 

I think the potential is high to become the gateway to Africa in terms of capital, for a number of reasons. Today people talk about the emerging markets like China, India, and Brazil, as well as the traditional markets of the US and Europe. The one feature that you find in all of these countries is the number of people they have. Population has a role to play from that point of view. Nigeria, which is Africa’s most populous nation, has 160 million people out of approximately 600 million Africans, so the numbers are there.

The other aspect is the economy’s productive base. We are working on that, and given the ongoing reforms in power and infrastructure, we will hopefully get there in the next few years. The third point that attracts capital and makes the market vibrant is rule of law, as well as the stability of the operating environment itself. Over the last 15 years or so, Nigeria has become more stable politically; democracy is entrenched and rule of law is beginning to find its feet. Sometimes people judge us harshly, but world history is filled with countries that have gone through much of the same process. I hope that we can find our feet soon.

Nigeria’s capital markets are highly developed for a low-income country. What lessons can be learned from the 2008 crisis? 

You have to cut down on the speculative borrowing. People have to try to live within their means. As much as you deregulate finance, do not deregulate to the level that it becomes imprudent. Some of the products we had in the Western markets that led to the crash – the people created, sold, and bought them – were done by people who did not fully understand what they were doing. It was just profit for profit’s sake, and so the crash came. I think we have a lot to learn. We have to keep credit expansion in check, and ensure we return to the fundamental principles of how much credit an individual, company or institution takes on. That is the bottom line.

Nigerian banks are in one of the healthiest states they have been in for the past years. What are some of the conclusions we can draw from the Central Bank’s latest reforms? 

The first thing is that nobody is immune. If you take the wrong steps, you end up in the same place. Secondly, the amount of capital is not a cure for all the problems in the financial sector. Otherwise, Lehman Brothers would not have failed. In my view, it is not an issue of capital, but rather an issue of risk. What is your appetite for risk compared to your capital? A small bank with small capital can be healthier than the biggest bank with the most capital.

What role does innovation and technology, such as e-banking and mobile banking, play in the industry’s future? 

It plays an inevitably progressive role. Business the world over today is done electronically. It is definitely more efficient, more cost effective, and in a way, more civilised. It is a cheaper and safer way to do business. The Nigerian economy has no choice and the steps have already been taken to fix that. The average Nigerian with an account has access to cards – credit or debit – and online payments. Today, the limiting factor is infrastructure, with connectivity and power issues at the top. As we begin to address these issues, it will become even more ubiquitous to use e-banking platforms for everyday transactions.

In terms of banking industry reforms, what steps need to be taken further? 

I think what is left is what we used to call moral suasion. We tend to underestimate the power of moral suasion, getting people into a room, agreeing to what steps need to be taken, and how. No matter how stringent the regulations are, if people do not agree to a set of moral codes and principles, you are wasting your time. People talk about how strong the Canadian banking industry is, and how it weathered the storm of the crash. But it was not regulation per se that saved the Canadian banks. It was a group of people coming together and agreeing how to conduct business. That is what we need to do at this moment. If we can do that, even some of the expectations concerning the issue of over-competition in the market will be tempered. People will then be able to do business properly. It is good to compete, grow, and be the biggest and the best, but at what cost?

Kedari Capital has a wide range of businesses, including corporate finance, asset management, and consulting, in key areas such as energy and infrastructure. As one of the leading investment banking firms in Nigeria, what strategies does the company currently have to further enhance its competitive edge? 

What we do differently is focus on a few areas. To an extent, we do not wait for the business to come to us; we go to the business. We recognise in an economy such as ours, that skills and capital are limited. So if you have a combination of the skills and the capital, you are better off putting the deals together yourself. That is what we are trying to do in power, infrastructure and with our bank acquisition in Ghana. The differentiator is that we are happy to sponsor projects, form teams, look at different ideas and put together the building blocks of what would make it work. That will continue to be the way we do business. We also believe in doing things right, we do what we say and we believe in what we do.

In terms of energy research, Kedari is very involved in renewables. What are some of the opportunities that can be found in this industry within Nigeria? It has had a rather slow start and timid backing by government. 

For the future, the opportunities are endless. But I do not blame the government, because they have other priorities at the moment. If you only receive one meal a day, your focus is on getting that one meal; you are not thinking about dessert. The Nigerian power situation is such that we are in dire need of electricity, so renewable is a bit too exotic for the government right now. They have to focus on getting electricity cheaply, on a massive scale, as quickly as possible. Right now it is about oil wells and gas power plants, where 500 MW or 1,000 MW are ready to go, and you can power the nation. When you talk about renewables, you are talking about incentives and subsidies for production and distribution, which may only get you 20, 30, or 40 MW at the end of the day. A 50 MW wind farm is a major wind farm project.

I empathise with the government, but it is our duty to continue to educate them and make them understand that power generation, distribution and transmission should be an integrated network. You cannot neglect one power source for another, no matter how desperate you are. You will reach a point where it will not be sustainable to use the same sources on an endless basis to achieve the needed goal. In a country like Nigeria that is blessed with natural resources – rain, water and sunlight – you also have a duty to harness those assets. We are working and spending lots of time, money and effort in trying to put these things together. We hope that in the future we will be at the forefront of renewable energy in Nigeria. That is an ambition we are willing to put our resources behind.

What impact will your renewable projects have on the overall power industry in Nigeria? 

At the rate of 30-40 MW, you can say it is not huge. But Nigeria is in need of 30,000- 40,000 MW so every additional MW you add is critical. Especially in rural areas, the impact can be quite significant.

Where do you see Kedari’s future in this regard? 

Clearly the future is bright, and we are working towards that. We hope to convince the government to pass some subsidies towards renewables. Pricing renewables cannot be done in the same way as normal power. Pricing regimes all over the world take into consideration the additional time and capital invested, as it is a much more expensive venture. We hope to reach a position where we can see the desired impact.

The government is trying to increase capacity to 40,000 MW in the next five years. Is this feasible? 

It is tough; I do not think so. That is a tall order. If you are going to get power in five years, you need to start now. If you are at 6,000 MW and you need to reach 40,000 MW, you need an additional 34,000 MW. You have to identify gas resources, order turbines and build the distribution and transmission network to support it. I do not think 40,000 MW is feasible in just five years. Having said that, can we achieve 40,000 MW in 5-10 years? For sure. The first step is to complete the deregulation and privatisation of the industry, so that smart money follows smart investments. You need a deregulated environment where private companies are able to invest and exit. As we saw in telecoms, it went from 400,000 lines to 17 million lines today in just 10 years. It is clearly possible to go from 4,000 MW to 40,000 in 10 years. But to complete this in five, it should be in motion already.

The government is talking about a gas revolution, with more gas plants and independent power projects (IPPs), which I agree with. But that does not happen in six months. The government is acting, and I hope we will see the affects as we progress, but for me, 40,000 MW in five years is a stretch.

With regards to Kedari’s interest in PHCN’s subsidiaries, could you please comment on your bidding process for the Ikeja and Benin Discos? 

We started out with our Zambian technical partners Copperbelt Energy Corporation, our local partners Catamaran, and ourselves. We started the process about two years ago and thankfully we have gone through the prequalification for both Ikeja and Benin. We are about to submit the final technical and financial proposals, and we are hopeful that with the amount of time, effort and money spent, we will be selected as the preferred bidders for both or at least one of the assets.

Regarding your acquisition of 75 per cent of strategic share of First Atlantic Merchant Bank in Ghana, what impact does that have on your portfolio in terms of expansion? 

It has a big impact. We are hoping to make it one of the top five banks in Ghana in the next five years. We are doing everything possible to make that happen, leveraging e-banking platforms, international partnerships, and deepening our branch network on the retail side. We are also looking at expansion beyond Ghana in the future, if things go the way we believe they should. It is a strategic acquisition for us; it complements the business we do in Nigeria and opens us up to more investors and clients that we can cross sell products, either in retail, investment or wholesale banking.

What plans do you have for expanding the Kedari brand in the region? 

The first action is this investment in Ghana, although it will continue to run as an independent business. We believe in the opportunities in Africa, especially sub-Saharan Africa. Our initial focus will be West Africa, where we are currently looking at a few projects. Sometimes there are language challenges and barriers, but as has been proven in the last 10-15 years, if you are sensitive to your environment these are things you can overcome. I have worked in a bank that has a pan-African presence. My view is that it is possible. We are focused on the key markets before we move onto the smaller ones. If you look at the affinities and similarities between Ghana and Nigeria, it is a natural choice to start. From there we will do more across the region.

What role can German investors play in Kedari and its subsidiary companies? 

Without a doubt, Germany is a world-renown industrial power and productive economy. Most of the initiatives that Kedari is undertaking are in the productive economy: power, infrastructure, ports, etc. The opportunities for German businesses or investors to partner with us are tremendous. I believe one of the challenges for European businesses in Africa is identifying good projects and good partners to work with to make those projects happen. I believe that Kedari would offer them an opportunity to achieve both objectives in one. We have a host of projects, which are ours and third-party projects, whether public or private sector. They can also find a partner in us that is serious, focused, and will do everything to ensure that things are done properly.

Kedari Capital is a great example of success for the international community and German audience, highlighting what can be achieved in Africa and Nigeria by an indigenous company with local expertise. What would be your final message regarding how perception has impacted – negatively in most cases – on investment in Nigeria and throughout Africa? What do people need to know regarding the reality of the country? 

I think perception about Nigeria is one-sided. You have to see the whole view before you can make an informed decision. Nigeria is not all about bombings, killings, and criminal activity. Nigeria is also about business and investment, people who are determined to make things work, and people of integrity. Nigeria has a population of 167 million. If 10 per cent of Nigerians are corrupt, we are talking about almost 17 million people, which is bigger than many European countries. But you cannot take away the 145 million decent, hard-working people who are trying to make things better for their country. My message is that you need to see Nigeria in a global context before making a decision.

Nigeria is full of opportunities and German investors need to consider those opportunities and how they would like to feature in the Nigerian market. If you believe in stereotypes, you are not likely to do anything because you have to reach out. People talk negatively about Nigeria, but Shell, Mobil, and Chevron are here. Lufthansa, British Airways, Virgin Atlantic, Emirates, Qatar Airways, Air France and KLM fly here every day, among others. Nestle, Cadbury, Guinness and all the other major multinationals are here as well; some have been here for as long as 100 years and have never left – if anything, they are increasing their investments in the country. Coca-Cola is spending money every day to expand its investment in the country. You can find huge German businesses like Siemens, who probably have a trillion turnover here, as well as other smaller businesses.

You need to find the partners you can work with, the areas you are interested in, and a platform to make those investments a reality. You will typically walk away with very good returns, much more than you can get from many world economies today. Nigeria is a destination that people need not be afraid of. The perception out there is not great, but that is not the entire story.

_________

Source: Worldfolio

Nigeria has 5,900 megawatts of installed generating capacity, but only able to generate around 4,000MW. Light up Nigeria.

Nigeria has 5,900 megawatts of installed generating capacity. However, the country is only able to generate around 4,000MW. Most facilities are poorly maintained. Infrastructure development is one of the main focuses of the current administration and it is estimated that by 2012, 90 per cent of the country will be covered. 

What are the strategies and policies the Ministry of Power is actually implementing right now? What are the current challenges in the sector?

The power sector, for now, is having a lot of challenges ranging from aged infrastructure to inadequate supply of gas to run the existing power plants and other maintenance challenges. However, with the current administration’s resolve to revamp the sector in line with the provisions of the Electric Power Sector Reform Act, there is a lot of hope that the electricity market in Nigeria will soon blossom.  Secondly, the on-going privatisation process is expected to open opportunities and pave the way for sustained and consistent investment in the sector to expand the existing infrastructure and make electricity available to over 90% of the country. The on-going NIPP (National Integrated Power Projects) coupled with rural electrification projects will complement these efforts…

Nigeria’s aim is to experience for the year 2020 uninterrupted power supply (up to 40,000MW as South Africa has). Do you see this goal as attainable and what is needed?

The goal of providing uninterrupted electricity supply to Nigerians by 2020 is achievable going by the current administration’s efforts to revamp the power sector.  With all the several IPP, NIPP and rehabilitation projects going on at different locations, coupled with short and medium term emergency power projects coming up, it is certain that the target of 40,000MW will be achieved. The sector is already opened up for investors both in the power and the gas sectors and more will be investing in coal, solar and even nuclear power projects.

Before starting on the expansion of the facilities and the network it has been noted that it would be more adequate to invest in the existing plants in order to modernise them. How do you see the current infrastructure network?

The existing electricity supply infrastructure (power plants, transmission and distribution networks) are in a poor state and require major maintenance/rehabilitation works to put them back into good working condition. Presently, the Federal Government is already investing in major maintenance and rehabilitation of existing power plants and the grid network to bring them back to normal operating condition. Some of the old plants are being retrofitted and several ones under rehabilitations will be delivered soon.

The electricity tariff is another important issue. In an interview with Upper Reach, Dr. Sam Amadi (CEO of the Nigerian Electricity Regulatory Commission) stated that “by the end of the year a second multi-year tariff order will be addressed, making operators more efficient and also more profitable.” Do you agree?

Electricity, just like any other product, must be appropriately priced for the industry/market to function effectively and efficiently. By NERC’s mandate, the electricity tariff is to undergo a minor review from time to time and a major review every five years under the MYTO arrangement. Therefore, MYTO 2 represents the major tariff review being undertaken by NERC to have a cost reflective pricing that will stimulate interest of investors wishing to enter the electricity market in Nigeria.

Eko Electricity Distribution Company is one of the most important assets in the power sector, serving the country’s “Centre of Excellence”, the business capital of Lagos. What have been the steps taken since the new administration to improve efficiency and turnaround time, in order to serve its customers better and shore up its revenue base?

Eko Electricity Distribution Company actually represents a very important asset in the power sector by virtue of its location and coverage area. Our service territory covers areas with a large concentration of high net-worth corporate and individual customers with huge revenue potentials. The current administration, through the budget appropriations and other intervention funding, has invested in the distribution network rehabilitation/expansion projects aimed at stabilising and improving service delivery to our esteemed customers. The improved service delivery will, in turn, translate to improved revenue generation.

Currently the public power sector assets are up for privatisation and have generated a great interest among the international investor community, with over 300 companies filing an Expression of Interest. The potential in this sector is enormous. At what stage is the privatisation and what are the challenges? How can we make investors understand the opportunities?

Privatisation of the power sector, which will enable the much-needed investment in the sector, is at an advanced stage. The Bureau for Public Enterprises has almost concluded the process and a tentative month for the emergence of winners is set for October. It is expected that new investors will start operations before the end of the year 2012. Most of the challenges have been surmounted leaving more or less the labour issue, which is almost concluded. The whole process is very transparent and the prospective investors and members of the public are carried along at every stage. The potential investors are already aware of the huge opportunities that will come from their investment.

Please tell our readers a bit about yourself. You graduated from Memphis State University (now University of Memphis), Tennessee, in the USA with a Bachelor of Science degree in Electrical Engineering. Prior to your promotion to CEO of Eko Electricity Distribution Company you were already involved in the management as Deputy CEO. What has prepared you to excel your current position and what is the legacy you would like to leave behind?

I am a professional electrical engineer, a fellow of the Nigeria Society of Engineers, a member of the Institution of Engineering and Technology (MIET) of the United Kingdom, member of the Institute of Electrical and Electronics Engineers (MIEEE) USA, and a fellow of the Nigerian Institute of Management (FNIM).

Oladele Amoda of Eko Electricity Distribution Company.

Besides my bachelor’s degree in Electrical Engineering, I also earned a Masters in Science in Electrical Engineering from the University of Lagos, Nigeria before which I had an MBA in Management from ESUT Business School, Enugu Nigeria. I rounded up my educational pursuit with another Master of Science degree in Organisational Leadership from Regis University in Denver, Colorado. I have passion for hard work, self-development, and staff mentoring. The legacy I hope to leave behind will hinge on an improved distribution network, efficient business process, positively re-orientated workforce, and an entrenched system for better customer services.

What is your final message to the readers of this report?

The electricity industry/sector in Nigeria has a bright future for customers and investors. The efforts of the Federal Government to revamp the industry and drive the privatisation process will create tremendous opportunities for investors and drive economic growth in Nigeria. Everybody should wholeheartedly embrace the transformation agenda of Mr. President, Dr Ebele Jonathan GCON, GCFR, and his team. The future is bright for Nigeria.

_________

Source: Worldfolio

The Central Bank of Nigeria (CBN) has stipulated that from January 8, 2013, the National Identity Number (NIN) will be a condition for owning and operating a bank account in the country.

According to a statement released by the regulatory body on Thursday, the NIN is to be used for the Know Your Customer (KYC) Verification.

Central Bank of Nigeria building

To this end, the National Identity Management Commission (NIMC) and the Nigeria Interbank Settlement System (NIBSS) will commence a three-month  enrolment exercise for all  existing bank customers, to capture their biometrics and issue them NIN as well as a General Purpose Identity Card.

The exercise will commence on September 1, 2012.

CBN said the effort, which is an overhaul of the KYC process in banks, is to bolster the banking sector and the entire financial system.

“The NIMC was established by the NIMC Act 2007 to establish, operate, maintain and manage the new National Identity Management System (NIMS), which is the avenue for achieving government desire to develop and deepen the customer credit sector, enable e-payment, facilitate financial inclusion, develop commerce and harmonise all existing and future identification scheme,” the CBN statement read.

“The output of the NIMC is the issuance of national Identity numbers, an eleven digit number which is unique and unchangeable to an individual, and the issuance of a general multi-purpose card (GMPC) based on chip technology to all citizen and legal residents in Nigeria.”

The new system will be backed-up by a central standardised identity database which will in turn enable financial institutions verify the identity of their customers on an online real time basis, using their NIN biometrics.

“Consequently, the CBN hereby directs that starting 8th January 2013, the NIN would become the basis for KYC verification and compliance by all  deposit money banks and by extension other deposit taking financial institutions, including  microfinance banks and primary mortgage institutions (PMIs) in Nigeria,” the CBN said.

“Presently, NIBSS is working in collaboration with the NIMC to integrate the Nigeria Central Switch operated by NIBSS with the NIMS. This integration will enable banks to conduct identity verification on NIMS through NIBSS, and will enable NIBSS to provide identity related value added service to banks.”

This enrolment exercise will be completed by the December 31, 2012.

__________

Source: DailyTimesNG