Financial Nigeria Magazine - - Finance - Com­piled by Daniel Iyanda

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/

Chief Ex­ec­u­tive

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

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