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NIRSAL Guarantees N61.16bn Loans to Agriculture

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Agriculture

Managing Director, Nigeria Incentive Based Risk Sharing System for Agricultural Lending (NIRSAL), Mr. Aliyu Hameed has said that the firm has guaranteed loans totaling N61.16billion to agriculture and disbursed N753.35million as rebate to borrowers who paid back loans on time between 2013 and 2015.

This was the period when the agency was still a project implementation office under incubation within the Development Finance Department of the Central Bank of Nigeria (CBN).

He added that NIRSAL had also guaranteed up to 207 agricultural value chain projects valued at N39.49billion under the Growth Enhancement Scheme (GES) programme of the Federal Ministry of Agriculture & Rural Development (FMARD) and paid $2.2million (N439.09million) as interest draw back to beneficiaries on 91 agriculture related projects.

Hameed said NIRSAL had between 2013 and mid-2016 trained 157,000 farmers/primary producers in 6 value chains including rice, cocoa, cotton, tomatoes, sesame, and soybeans.

Speaking during a presentation at the Design Workshop on Establishing an African Agriculture Risk Sharing and Financing Mechanism which was organised by the African Development Bank (AfDB) in Nairobi, Kenya, the NIRSAL boss argued that the growth of agriculture in Nigeria will lead not only to prosperity but also improve income equality in the country.

He, maintained that the positive impact of agriculture on income inequality was one of the several reasons for the focus of the Buhari administration on the sector which is believed to have the potential to boost the economy and improve the lives of Nigerians.

Hammed further described the progress made so far by NIRSAL as a product of the farsighted pro-people vision of the Buhari administration and the continued commitment of the CBN under Mr. Godwin Emefiele to achieving the vision.

His comments also came as the AfDB identified the NIRSAL financial model as of the current successes of African agriculture during its post event assessment of the workshop.

Describing NIRSAL as a “Game Changer” in Nigeria’s agricultural space, the MD added that it planned to further facilitate lending to 3.8 million agricultural producers out of the estimated 14 million agricultural producers in the country within the next 10 years by providing guarantees through intermediaries including Microfinance institutions and cooperatives.

In a statement by NIRSAL’s Coordinator Research & Strategy, Bello Abdullahi Abba! Hameed said part of the key objective of NIRSAL was to increase total value of agricultural lending- from the current 1.4 percent to 10 percent of total bank lending by 2026 and generating by $3 billion of additional agricultural lending in order to boost food production levels, stimulate inclusive growth, create jobs and increase the standard of living of farmers who constitute the greater majority of our population.

Essentially, NIRSAL was set up in 2013 as an initiative of the CBN, the Bankers’ Committee and the FMARD as a primary platform for managing agribusiness risk so banks can lend with confidence to the sector which had largely been neglected.

NIRSAL use credit guarantees to address the risk of default and provide technical assistance and incentives to both financial institutions and borrowers to bridge understanding and increase capacity to payback.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Stanbic IBTC Enlightens Nigerians on Stockbroking

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Stanbic IBTC - investorsking.com

Stanbic IBTC Stockbrokers, a subsidiary of Stanbic IBTC Holdings PLC, recently hosted a virtual session to enlighten Nigerians on the potentials of investing in the stock market.

The virtual event themed: “You Don’t Know About Stocks? Come On Now,” featured stockbroking experts: Afolabi Gbenro, Head, Sales Trading and Benjamin Jesumuyiwa, Head, Mandate and Settlements, both of Stanbic IBTC Stockbrokers with Tosin Olaseinde, founder of Money Africa, Jennifer Awirigwe, Certified Financial Educator and Solafunmi Oyeneye of Wealth Motley, a Personal Finance Educator as panelists.

The goal of the session was to acquaint individuals new to the stock market with basic stockbroking terms, useful tips for stock trading and how to use the Stanbic IBTC stockbroking app.

Afolabi stated the importance of diversifying investments in stocks. He listed factors that affect the prices of stocks which include supply, demand, news, and investor sentiments. The benefits of investing include dividend yield, capital appreciation, equity share holder privileges and utilising investments as collateral. He stressed the importance of research and advised Nigerians to conduct their own research and evaluate companies before investing.

On considerations before entering the stock market, he said, “You would need capital, investment objective, and risk profile assessment to determine the kind of investment you should venture into. You would also need to stay abreast of market updates.”

Benjamin Jesumuyiwa, Head, Mandate and Settlements, Stanbic IBTC Stockbrokers, urged Nigerians to invest in stocks to reap long term rewards. He said: “The stock market makes it easy to buy shares of companies and they can be purchased through a broker or via online platforms. Stanbic IBTC Stockbrokers offers a discounted rate of 0.7% on brokerage fees. Once you have set up an account, stocks can be purchased in minutes.”

Benjamin talked about the ease of using the Stanbic IBTC web and mobile applications platforms, stating that the platforms have been designed to allow customers sign up themselves, with direct access to the market.

Tosin Olaseinde commended Stanbic IBTC for making stock trading accessible and affordable for Nigerians, as individuals can open a stockbroking account with zero naira. She advised beginners to invest while gaining knowledge about the stock market and recommended Exchange Traded Funds (ETFs) as an entry point especially for people who have an aversion to high-risk investments. She said: “As a beginner, the best place to start is the Exchange Traded Funds (ETFs). It is a mixture of different equities in one stock. It offers you the opportunity to participate in a couple of stocks without buying everything individually.”

Solafunmi Oyeneye mentioned liquidity and dividends over a long period of time as advantages of trading stocks, encouraging beginners to access the Stanbic IBTC stockbroking app through their smartphones for convenience and less paperwork.

Jennifer opined that the stock market is a good place to invest because it is highly regulated, and the risks can be easily assessed. She also recommended the Stanbic IBTC Stockbroking app for trading stocks for ease of use and speed.

The stockbroking investment series by Stanbic IBTC further reaffirms the commitment of the financial institution to equip individuals with essential information required to make informed investment decisions.

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Why Every Investor Should Now Include ESG: deVere CEO

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Every investor needs exposure to environmental, social and governance (ESG) investments to build wealth over the long-term, says the CEO of one of the world’s largest independent financial advisory organisations.

The observation from deVere Group’s Nigel Green, a long-term advocate of impactful investing, comes as it is revealed that global sustainable fund assets almost doubled in the six months through to September.

Global ESG assets are on track to exceed $53 trillion by 2025, according to Bloomberg Intelligence, representing more than a third of the $140.5 trillion in projected total assets under management.

Mr Green says: “In January 2020, we identified that ESG would be this decade’s ultimate investment megatrend.

“Of course, that was before the pandemic that has acted as a catalyst for the sustainable investing boom.

“The health of our planet and how it affects human health which, in turn, affects the way we all live, interact and do business, dramatically came to the fore.”

He continues: “Previously, ESG investments were often considered a ‘quirk’ or ‘nice to have.”

“But now we believe that they should be a part of everyone’s investment portfolio for several key reasons.

“First, they typically deliver a legitimate diversification tool – which is how investors can seize opportunities and mitigate risk, especially during periods of higher volatility.

“Second, funds investing in entities with robust ESG credentials have outperformed their benchmarks over recent years. From a risk management point of view, including these companies in your portfolio is, clearly, a sensible decision to take.

“Third, ESG represents a revolution of investment strategy itself. A seismic shift has occurred in corporate behaviour. How firms approach ESG factors and the value they place on them compared to other considerations has already changed forever.  The ESG themes are already embedded in the global economy as this is only set to grow in the years to come – and, of course, investors should embrace the concept of having early advantage.

“And fourth, the last 18 months have underscored how we have a moral obligation to back and fund entities that support the wellbeing of the planet and society”

In October, deVere announced that it will double its commitment to position $2 bn of assets under advisement into ESG investments.

This follows a similar announcement earlier this year when it said it would aim to have $1bn in socially responsible investment vehicles within five years.

As well as its commitment, deVere is one of 18 founding signatories of the UN-backed Net Zero initiative, the international alliance of finance powerhouses that will help accelerate the transition to a net-zero financial system. Its membership means it is committed to “aligning all relevant products and services to achieve net-zero greenhouse gases by 2050 and to set meaningful interim targets for 2025.

Other founding signatories include BDO, Bloomberg, Campbell Lutyens, Deloitte, EY, Grant Thornton, KPMG, The London Stock Exchange Group, Minerva Analytics, Moody’s, Morningstar, MSCI, PwC, SGX, Solactive, S&P Global and SSE.

Mr Green concludes: “The case for now having exposure to ESG in your investment portfolio is undeniable.

“We believe that a failure not to seek profits with purpose could negatively impact your long-term accumulation of wealth.”

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4DX Ventures, Flutterwave Invest in CinetPay, Payments Processor Company

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CinetPay, a digital finance platform that enables merchants in Francophone Africa to seamlessly accept and make payments, has announced a $2.4 million seed fundraising round from 4DX Ventures and Flutterwave. The investment will boost CinetPay’s sales and marketing efforts across nine markets in West and Central Africa.

Since its 2016 launch in Côte d’Ivoire, CinetPay has processed over 30 million transactions for 350 active merchants in nine countries, including Côte d’Ivoire, Senegal, Cameroon, Mali, Togo, Burkina Faso, Benin and Guinea. CinetPay’s platform provides a single interface for businesses to process over 130 different payment operators, from mobile money to credit and debit cards and e-wallets, eliminating the need for merchants to spend months integrating with different systems in order to manage sales and revenues.

Used by a broad range of businesses from e-commerce platforms to digital public services, insurance companies and schools, CinetPay simplifies the process of accepting payments online or via mobile Point of Sale (PoS) devices with best in class security protocols.

By bringing Flutterwave onboard, CinetPay is building on a successful commercial partnership that has evolved since 2019, and this investment follows Flutterwave’s recent acquisition of Disha and marks the unicorn’s first direct investment in the region.

“For a first institutional investment, we couldn’t have asked for two better partners in 4DX Ventures and Flutterwave,” said Idriss Marcial Monthe, CEO & Co-Founder of CinetPay. “We’ve watched firsthand as thousands of merchants waste crucial time, even up to 6 months, getting their payment systems in order. Now we’ve got the resources to market and sell our optimal solution across the region and we’re excited to ensure that all businesses in our region never miss a sale again. We have selected highly strategic partners as investors and are excited about the immediate next steps we take together in terms of simplifying and improving digital payments in Francophone Africa.”

The rapid growth in a wide range of digital payments channels across the continent over the last decade has led to a disaggregated market. Two-thirds of global mobile money transactions are driven by users in sub-Saharan Africa, with 562 million registered accounts by the end of 2020, while the number of e-commerce users on the continent is expected to double from 281 million in 2020 to 520 million by 2025. This trend continues with public institutions as well, with more bodies now offering digital public services, such as payments for ID cards, Visas and COVID tests, and school fees, which are often paid digitally. With such a multiplicity of payments required across different verticals from a growing number of sources, CinetPay is fast building its presence in the region.

“We’ve been tracking the Francophone Africa market for some time now, and have been impressed by Cinetpay’s ambitious goal to digitize payments across the region,” said Walter Baddoo, Co-Founder and General Partner at 4DX Ventures. “The company has demonstrated deep product knowledge with a differentiated offering and a strong brand with customers. We look forward to partnering with the Cinetpay team alongside our long-time portfolio company, Flutterwave, to help usher in the next phase of digital payments across the Francophone region.”

“We’re building the payments infrastructure for Africa, making it easier for businesses to grow and expand their customer base on the continent and worldwide,” said Olugbenga Agboola, Founder and CEO at Flutterwave. “Having collaborated with the Cinetpay team for a number of years now, our shared vision to simplify payments on the continent further strengthens our commitments to working towards creating endless possibilities and experiences for all our customers. Cinetpay is well positioned for the next chapter of growth and we’re excited to work with the team to help scale the business to achieve maximum impact and value for its customers.”

Available on desktop and mobile, CinetPay is quick to set up and designed with a modular approach that integrates within a merchant website and accepts Mastercard, Visa and all major local mobile money in 9 markets from MPESA to MTN mobile money and Orange Money.

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