KEY FINANCE UPDATES
UK post-Brexit exports to Africa to reach $224 billion
Following the 5-day African tour of British Prime Minister Theresa May last month, the British Foreign Policy Group (BFPG) has reported that its assessment of United Kingdom's exports to Africa in the post-Brexit era will be worth £175 billion (about $224 billion).
Tom Cargill, Africa expert at the BFPG think tank said the UK economy will benefit from that volume of exports in just three decades if opportunities are seized after Brexit to forge new trade deals with African nations. The UK is the 10th largest export economy in the world. Its exports in 2016 were valued at $374 billion. BFPG said Britain has been slow to invest in subSaharan Africa, with exports lagging at about £13 billion ($16.7 billion) a year.
“If our exports to Africa could grow steadily in line with African growth they could be worth as much as £175 billion by 2050,” Cargill said, adding that Africa's GDP is currently about $2 trillion, but projected to grow to about $29 trillion by 2050. At that point, the continent will have a quarter of the world's consumers.
May visited South Africa, Nigeria and Kenya last month against a backdrop of relentless Brexit negotiations as the UK seeks to reposition its post-Brexit trade.
Agreement for Ghana’s LNG Terminal signed
Helios Investments, the world’s largest Africa-focused private equity fund, and China Harbour Engineering Company have signed an agreement for the construction of the Tema LNG Terminal Project in Ghana.
The agreement, which was signed in Beijing, China on Sunday September 2nd, was witnessed by the Ghanaian President Nana Akufo-Addo. He said the project was a testament to the efforts his administration has made to attract private sector investments into Ghana.
The project is estimated to cost over $350 million. $200 million of the amount would be spent directly in Ghana over the next 18 months.
The LNG Terminal is being constructed on the back of a 12-year gas supply agreement that was executed between the Ghana National Petroleum Corporation (GNPC) and Rosneft, a global LNG trader and the world’s largest listed oil producer. Rosneft subsequently engaged Tema LNG Terminal Company for the provision of the regasification services.
The LNG Terminal, which will be completed in 18 months, will be subSaharan Africa’s first regasification terminal, strengthening Ghana’s position as a regional trade and energy hub.
Apart from generating estimated 1,600 jobs, the LNG project will deliver about two million tonnes of liquefied natural gas every year. This is expected to supply about 30% of Ghana’s total electricity generating capacity, displacing crude oil and crude derivatives as fuel sources for the generation of power.
President Akufo-Addo said the construction of the terminal is in line with the commitment of his government to provide Ghana with constant, reliable and affordable power supply.
African insurance industry growth to further accelerate – PwC
A PricewaterhouseCoopers new report by
(PwC) shows that Africa's insurance industry has huge opportunities for growth. The report, “Ready and Willing: African insurance industry poised for growth,” states that the industry has done well to adapt to continuous disruption owing to technological advancement.
The transforming in the African insurance industry, according to the report, is based on four major themes. First, technology and data revolution, which presents insurers with tools to better understand customer needs and expectations through data mining capabilities and artificial intelligence. Second, regulatory and accounting changes have been embraced by insurers.
Third, changing demographics and social changes – in particular the rise of a middle class – are driving insurers, bankers and non-traditional players to compete for the power of owning customers and customer information. Fourth, talent shortages in the areas of technology and actuarial skills.
The report noted that Africa's insurance industry is facing more disruption than any other industry, and that is posing challenges for some while opening up business opportunities for others.
NOVA Bank appoints Acting Managing Director/
NOVA Merchant Bank Limited – a financial institution chaired by Phillips Oduoza, former Group Managing Director at United Bank for Africa (UBA) – has named Anya Duroha as its Acting Managing Director and Chief Executive Officer.
The appointment, which follows the exit of Chinedu Ikwudinma, now Chairman of CS&C Associates Limited, became effective on August 30, 2018, although it is subject to the approval of the Central Bank of Nigeria.
Prior to his appointment, Duroha, who is a pioneer staff of the bank, served as the Executive Director – Wholesale Bank, responsible for the development and management of NOVA’s corporate banking relationships.
“Duroha’s appointment marks the start of an exciting growth phase in the bank’s business, following the go-live of its Intellect Digital Core (IDC) banking platform as the bank begins to leverage the benefits of its investment to deliver innovative solutions for its customers,” said Philips Oduoza.
An alumnus of Wharton Business School, University of Pennsylvania and Lagos Business School, Duroha holds an M. Sc. in Banking and Finance from the University of Benin and a B.Eng. in Civil Engineering from the University of Nigeria, Nsukka.
British Prime Minister, Theresa May