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Business | News
SWELLING
Trade between Nigeria and Hong Kong peaked at N5.43 billion two years ago Sunday Ojeme
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Hong Kong venture capital firm, Nest, has listed Nigeria as its next port of call as it launches investment start up in Africa. The management revealed two weeks ago an interest for investment opportunities in Nigeria, Kenya and South Africa. IDG News Service reports that the company had supported 48 companies in Asia so far and is looking to inject between $50,000 and $200,000 in African startups.
FRIDAY, JULY 31, 2015 NEW TELEGRAPH
Hong Kong firm eyes Nigeria for next phase of investment The Managing Partner, Nest Nairobi office, Aaron Fu, said that a lot of the technology being developed in Africa could be relevant for the Asian market. He, however, added that in the past there wasn’t the support system or network in place to help these companies scale across the two markets. Fu said: “What makes Africa really exciting is the opportunity to enable startups here with all the tools and support that we have seen work for us in Asia. Nest will help the startups it invests in to
scale in Asia, and more so globally. “In a market that is seemingly bubbling with ideas for solving problems facing the continent, the investor is looking for startups that are ripe for development and can scale. “At Nest, we support entrepreneurs that solve pertinent problems with disruptive solutions. “We look for those who have a personal connection to the problem that they are trying to solve, or are invested in their startup on a deeply personal level as we believe those are the people who
will make a business work, no matter what.” He pointed out that Nest typically invests technology companies in the health tech, fintech and smart cities/Internet. New Telegraph recalls that the value of trade between Nigeria and Hong Kong peaked at N5.43 bilion as at two years ago. Assistant Executive Director, Hong Kong Trade Development Council (HKTDC), Mr. Raymond Yip, said then that Hong Kong wanted to improve and reestablish a relationship with Nigeria as a big market.
He said that both countries had enjoyed cordial trade relationships, adding that Hong Kong was intensifying efforts to improve on its partnership and to invest in the country. He explained that his country buys leather skins, fish and some electronic like telecommunications equipment from Nigeria, while Nigeria imports wristwatches, machinery, foods from Hong Kong. Yip said: “At the moment, the western markets have been saturated and we want to explore the emerging markets and
opportunities. And we are inspired by Nigeria as the second biggest in Africa and going to be the largest economy in 2023.” He added that Hong Kong had various incentives for investors in his home country, which include free ports duty and business-friendly environment. He added that Hong Kong is an international market, adding: “Our business is not indigenous. People over the world are involved. We have the Chinese, Pakistanis, Americans, Japanese and Indians.
Experts advocate e-govt adoption CONTINUED FROM PAGE 25
in recent past in their services, with resultant cost-saving and ability to plug the leakages in its financial dealings, “there is an urgent need to popularise wider and holistic embrace of e-government in its totality.” He noted that with the passage of three major bills relating to electronic transactions in Nigeria by the sixth National Assembly, the road is now clear for e-payment landscape in the country to exhibit increased sanity. Head, Programme Office, FSS2020, Mr. Oluwatoyin Joko, explained that the collaboration with E-PPAN was considered critical as it allows FSS2020 Office to see how it can better re-organise the major markets of financial market, insurance, pension, mortgage, agriculture and the Small and Medium Enterprises (SMEs) using e-government as strategy. He said: “Beyond restructuring all these sectors, we also know that cases of financial corruptions, as we have been told, to have witnessed in the last 10 years by Mr President where about $150 billion was said to have been stolen and taken outside the country, would be minimised”. Also, E-PPAN President, Mr. Macaulay Atase, said that the forum was organised to facilitate dialogues that result in the evaluation of how infusion of ICT into service delivery by government at all levels can result in increased transparency, efficiency and accountability, especially in the area of financial management.
L-R: Executive Chairman, Lagos State Board of Internal Revenue/Guest Speaker, Dr. Babatunde Fowler; Ist Vice-President, Institute of Directors, Nigeria (IOD), Alhaji Rufai Mohammmed; President/Chairman of Council, IOD, Mr. Yemi Akeju and Group Managing Director, Mutual Benefits Insurance Plc, Mr. Akin Ogunbiyi, during the Institute’s New Members Evening and Induction in Lagos. PHOTO: GODWIN IREKHE
CUTTING EDGE Modern building technology to the rescue Dayo Ayeyemi
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igerians may pay more for accommodation as cost of housing construction has increased by 42 per cent, New Telegraph has learnt. The sudden rise in construction cost, it was gathered, was due to the devaluation of naira and the Central Bank of Nigeria’s (CBN) policy ban of 40 items from foreign exchange market. Already, real estate developers have begun to adjust the cost of projects to reflect the current realities in the building materials market. The devaluation of naira twice due to the slump in the prices of oil (Nigeria’s major cash cow) at the international market and the recent ban of some imported items valid for the foreign exchange market,
Nigerians to pay more as housing cost soars by 40% have led to an increase in the cost of housing production by 42 per cent. General manager, Real Estate, Lekki Pearl Estate, Mr. Damola Akindolure, said that he was considering modern technology for mass production of houses in order to reduce cost. He explained that when the apex bank devalued the naira, the cost of building materials increased by 22 per cent due to high exchange rates. This, he said, only affected cost of building by 20 per cent. Akindolure added that the cost of housing production was further raised by the ban of some items, which included building materials, from the Forex market by the CBN. Currently, he said that the cost of building has soared by 40 per cent.
The Central Bank of Nigeria (CBN) recently excluded some imported goods and services from the list of items valid for forex in the Nigerian foreign exchange market. The implication of this is that those who import these items can no longer buy foreign currency from the official window to pay their overseas suppliers. Instead, they have to source forex from the parallel market or Bureau De Change (BDC) to pay for their imports. Some of the building materials on the list include cement, cold rolled steel sheets, galvanised steel sheets, roofing sheets, wheelbarrows, head pans, steel pipes, wire rods, iron rods and reinforcing bar and wire mesh. Others are steel nails, wood particle boards and panels, wood fibre boards and panels, plywood
boards and panels, wooden doors, glass and glassware, tiles-vitrified and ceramic. CEO of www.SapientVendors.com.ng, a growing construction company, Walter Emiedafe, stated that with increased cost of doing business, there is bound to be major price fluctuations with construction projects, which would negatively affect previous budgets. He said: “The naira devaluation will affect the prices of previously estimated budgets for ongoing construction projects. If this is not properly managed by the contractor, the resultant effect is an abandoned project.” Besides, he said that with the devaluation of naira, the quantity of available jobs within the Nigerian construction space would reduce.