BUSINESS
Monday 19 November 2018
COMPANIES & MARKETS
DAY
23
Business Event
AGRICULTURE AFEX, Sterling Bank to create blockchain commodity trading platform for farmers JOSEPHINE OKOJIE
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FEX Commodities E xchange Limited (AFEX), Nigeria’s first licensed private commodities, Sterling Bank Plc and Binkabi, a builder of decentralised trading commodity network and exchange has collaborated to create the world’s first fully digital, blockchain commodity trading and financing platform for farmers. The partnership, initiated by AFEX is hinged on the dearth of adequate agricultural finance in the sector and the critical roles AFEX’s Warehouse Receipts System (e-WRS), Binkabi’s Blockchain Technology and Sterling Bank’s access to credit play in leading the creation of a reliable source for financing in agriculture for Nigeria. Currently, lack of adequate finance in the sector
has remained one of the major factors limiting farmers’ productivity. Also, the traditional alternative to money lending is also costly as interests on loans are charged at very high rates, contributing to the increased challenge of indebtedness and poverty. As a result, the collaboration has leveraged on blockchain technology to unlock cheap financing through AFEX warehouse receipt system which would lead to the creation of new opportunities and relationship for players in the commodity markets. Ayodeji Balogun, country director, AFEX said that the initiative is needed to change the lives of farmers and the Nigerian economy, by establishing a direct link between farmers and consumers/ retailers, while empowering smallholders to better organize themselves to access the market, without interference
from middlemen. Balogun states that the transparency of the blockchain system in the supply chain will also enable farmers get fair prices for their produce and reduce the challenge of low income. “Blockchain does not require physical branches, since it is operated on a distributed network. It would create alternative financial structures, liberating farmers from the inefficiencies of the existing financial system. This partnership would empower smallholder farmers, create a tokenized system and develop smart agriculture,” he said. Blockchain technology is based on a shared ledger or DLT (Distributed Ledger Technology) and contains features that make it possible for networks such as farmers, consumers, retailers, producers and investors to not only transact, but also source and supply finance
L-R: Adesina Adedayo, deputy vice president, Chartered Institute of Taxation of Nigeria (CITN); Olajumoke Simplice, vice president; David Olorunleke, doyen of taxation; Muhammed Akaro Mainoma, guest speaker, and Cyril Ikemefuna, president/chairman of council, CITN, at the CITN 39th induction ceremony in Lagos.
INVESTMENT BANKING
PAC Capital raises acquisition finance for Teleology 9Mobile acquisition
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n what can be described as one of the highly anticipated acquisition of the year, the long process for the successful acquisition of 9Mobile (Emerging Markets Telecommunications Ser vices (EMTS) by Teleology Nigeria Ltd has come to a productive and definitive end. At the core of this remarkable transaction is PAC Capital Limited, the Investment Banking firm that raised the Acquisition Finance for Teleology
Nigeria Limited. PAC Capital Limited, the Investment Banking and Advisory arm of PanAfrican Capital Holdings Limited acted in the capacity of Financial Adviser and Fund Arranger to Teleology Nigeria Limited in the acquisition of 9Mobile. M a n a g i n g D i r e c t o r, PA C C a p i t a l L i m i t e d , Eric Okoruwa said, “I am pleased about the successful end and final outcome of the transaction. For us at PAC Capital Limited, this is a great example of
the innovative solution we bring to every mandate.” PAC Capital is noted for similar landmark transactions, some of which include; Heritage Bank Acquisition of Enterprise Bank and Sigma-Golf Cons or tium Acqu isition of Keystone Bank Limited. PAC Capital Ltd is the Investment Banking and Advisory arm of PanAfrican Capital Holdings, a Capital Markets & Financial Advisory Services firm in Nigeria.
L-R: Andrew Nevin, chief economist, PwC; Chi Akporji, strategy director, NMRC, and Bolaji Edu, Nigeria CEO, Broll Property Group, at the 2018 West Africa Property Investment summit and expo in Lagos. Pic by Olawale Amoo
RETAIL
SPAR declares 8 days of black Friday sales
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etail chain, SPAR, has declared Black Friday sales for 8 days starti ng 2 2 n d Nov e mb e r t i l l 29 November, marketing head, John Goldsmith said in Lagos. SPAR will be running the Black Friday promotion across all its 14 stores spreading across Lagos ; Abuja ; Port Harcourt ; Enugu and Calabar. According to Golds m i t h, t h e b ra n d i s e xcited about the upcoming Black Friday sales which was introduced five years ago into the Nigerian mark e t . T h i s y e a r, S PA R i s offering a wider range of products which include food, grocery, meats, wine and spirits, electronics, home appliances, laptops, m o b i l e p h o n e s, w a t c h -
es, clothes, perfume and many other products essential for individual and family use. “From our experience over the years, we are prepared to accommodate all our teeming customers who are gearing up to visit any of the outlets during this annual event. All our customers will have the opportunity to make their preferred choice from over 5,000 products across all categories in any of our outlets nationwide. “Nigerians have always expressed preference for shopping in a store becaus e w e give them the opportunity to have a look and feel of the products b e f o re bu y i ng a n d t h e y can also take immediate possession of what they have purchased,” said
Goldsmith. Goldsmith opined that SPAR current brand maxim “My Nigeria My SPAR”, the brand have been continually involved in growing the retail economy by expanding its outlets to delight customers with quality products, employi n g t h o u s a n d s o f Ni g e rians. According to him, SPAR will continue to support laudable initiatives to better the lot of the citizenry. The hypermarket brand that recently opened two new outlets in Lagos at the Leisure Mall, Surulere and Ad e b o l a Ho u s e, O p e b i , has always translated the shopping exp er ience of Nigerians and every shopper based on their choice, quality, impeccable service and valuation.
Tam Brishe (left), chief of staff to the governor of Delta State, receiving the degree of doctor of governance and public administration (Honoris Causa) of the Lead City University, from the chancellor of the University, Gabriel Ogunmola, at the university’s 2018 convocation, in Ibadan, Oyo State...recently
L-R:Andrew Okafor, winner of Taste Tell And Win Competition, Maria Shadeko, brand manager, Legend Extra Stout, Francis Obi, winner of Taste Tell And Win Competition, Kenneth Ajakaiye, regional trade marketing manager - Abuja, NB Plc, and Chukwuemeka Rex Obi CEO De Chimex Enterprises, At Legend Real Deal Experience in Abuja.