Financial Nigeria Magazine - - Finance -

Nige­ria's man­u­fac­tur­ing sec­tor ex­pands for third con­sec­u­tive month

The Cen­tral Bank of Nige­ria (CBN) has re­ported that the coun­try's man­u­fac­tur­ing sec­tor ex­panded for the third con­sec­u­tive month in June, ow­ing to con­tin­ued growth in pro­duc­tion and new or­ders.

The apex bank said the Pur­chas­ing Man­agers In­dex (PMI) for the man­u­fac­tur­ing sec­tor rose to 52.9 points in June from 52.5 points recorded the pre­vi­ous month.

A PMI read­ing above 50 points in­di­cates an ex­pan­sion in the man­u­fac­tur­ing/non­man­u­fac­tur­ing sec­tor, while read­ings be­low 50 points in­di­cate a de­cline. A read­ing of 50 points in­di­cates no change.

The CBN said man­u­fac­tur­ing pro­duc­tion level grew for the fourth con­sec­u­tive month in June to 58.2 points, while new or­ders grew for the third con­sec­u­tive month to 51 points. Raw ma­te­rial in­ven­tory, em­ploy­ment level, and sup­ply de­liv­ery time also ex­panded dur­ing the month un­der re­view.

IFC ap­proves $200 mil­lion loan for South Africa's First Rand to sup­port SMEs

The In­ter­na­tional Fi­nance Cor­po­ra­tion has ap­proved a 2.6 bil­lion rand ($200 mil­lion) loan to the FirstRand Group to ex­pand lend­ing for small and medium en­ter­prises in South Africa.

The Wash­ing­ton D.C.-based mul­ti­lat­eral lender said its fi­nanc­ing is part of its SME Push pro­gramme. The pro­gramme is de­signed to chan­nel up to 26 to 36 bil­lion rand ($2-3 bil­lion) in­vest­ment into South Africa's SMEs over the next five to seven years through in­vest­ments, risk shar­ing fa­cil­i­ties and ad­vi­sory ser­vices.

FirstRand's re­tail and com­mer­cial fran­chise, First Na­tional Bank (FNB), has one of the strong­est SME bank­ing mod­els in South Africa, with over 7.2 mil­lion cus­tomers across the coun­try.

IFC said its ad­vi­sory ser­vices unit will work with FNB to de­velop new tools to im­prove risk as­sess­ment in the SME sec­tor, and also pro­vide fi­nan­cial lit­er­acy train­ing to build the ca­pac­ity of SMEs.

Fitch as­signs B+ rat­ing to Nige­ria's $300 mil­lion di­as­pora bond

Fitch Rat­ing has as­signed a B+ rat­ing to Nige­ria's maiden di­as­pora bond, which was launched last month as part of the fed­eral gov­ern­ment's ef­forts at rais­ing fund­ing to plug the bud­get deficit.

The rat­ings agency said its rat­ings de­ci­sion is in line with Nige­ria's long-term for­eign-cur­rency is­suer de­fault rat­ing of B+. The B+ rat­ing is a non-in­vest­ment grade rat­ing that of­ten in­creases the cost of bor­row­ing.

The $300 mil­lion di­as­pora bond – which has a coupon rate of 5.625 per­cent – was rolled out af­ter the gov­ern­ment com­pleted its $1 bil­lion Eurobond of­fer­ing ear­lier in Fe­bru­ary this year.

Bank of Amer­ica Mer­rill Lynch and Stan­dard Bank of South Africa acted as in­ter­na­tional joint lead man­agers, while First Bank of Nige­ria and United Bank for Africa acted as the Nige­rian lead man­agers for the di­as­pora bond is­suance.

Tizeti raises $2.1 mil­lion to ex­pand Wifi ser­vices in Nige­ria

Tizeti, a Nige­rian wire­less In­ter­net com­pany, has raised $2.1 mil­lion in seed fund­ing to ex­tend its Wifi ser­vices in Nige­ria. The com­pany said the cap­i­tal in­jec­tion will al­low it to ex­pand its flag­ship ser­vice in La­gos, via the launch­ing of an Xfin­ity Wifi-like hotspot ser­vice. This is ex­pected to cre­ate about 3,000 new public hotspots across the state.

Founded in 2012, Tizeti seeks to im­prove In­ter­net con­nec­tiv­ity in Africa by de­ploy­ing its own so­lar-pow­ered tow­ers, which re­duce over­heads on gen­er­a­tors and diesel and make the com­pany com­pet­i­tive in a grow­ing data mar­ket cur­rently dom­i­nated by large tele­coms com­pa­nies. Tizeti's ba­sic sub­scrip­tions starts from N9,500 for unlimited Wifi at speeds of 10mbps.

With the lat­est fi­nanc­ing, Tizeti is ex­pected to in­crease its net­work of so­larpan­elled tow­ers from the cur­rent 45 to over 100 over the next nine months. The com­pany raised its seed fund­ing from sev­eral African and Amer­i­can ven­ture cap­i­tal firms.

Abraaj Group to ac­quire East Africa's largest cof­fee chain

The Abraaj Group has agreed to buy 100 per­cent of Java House Group, East Africa's largest cof­fee chain, from Emerg­ing Cap­i­tal Part­ners and Kevin Ash­ley, Java House's Founder and Chair­man.

The Dubai-based pri­vate eq­uity firm re­port­edly paid up to $110 mil­lion for Java House, ac­cord­ing to the Wall Street Jour­nal. The fund man­ager said it plans lever­age Java House's mar­ket lead­er­ship po­si­tion to trans­form the com­pany into the lead­ing Pan-African food ser­vices plat­form by ex­pand­ing into new mar­kets and through ac­qui­si­tions.

Java House Group was es­tab­lished in Nairobi in 1999. In 2012, Emerg­ing Cap­i­tal Part­ners ac­quired 90 per­cent stake in Java House, with Ash­ley hold­ing the re­main­ing stake. The com­pany has three flag­ship brands: Java House, a cof­fee and ca­sual din­ing chain; Planet Yo­gurt, a self-ser­vice frozen yo­gurt chain; and 360 De­grees Ar­ti­san Pizza, an up­mar­ket Ital­ian pizze­ria con­cept. The com­pany has a strong re­gional foot­print with 60 stores across 10 cities in Kenya, Uganda, and Rwanda.

Founded in 2012, The Abraaj Group has over $10 bil­lion in as­sets un­der man­age­ment. The fund man­ager has in­vested over $3 bil­lion in Africa in sec­tors such as health­care, fi­nan­cial ser­vices, lo­gis­tics, con­sumer goods, and food and bev­er­age.

Java House cof­fee

Newspapers in English

Newspapers from Nigeria

© PressReader. All rights reserved.