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NAMA Backs FG on Vehicle Importation Ban

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  • NAMA Backs FG on Vehicle Importation Ban

The Nigeria Automotive Manufacturers Association has expressed support for the Federal Government’s ban on importation of vehicles through the land borders.

The association said the importation of vehicles through the country’s land borders constituted a major revenue leakage to the government with import duties payable going to the purse of neighbouring countries while Nigeria struggled to make ends meet.

In a statement signed by the Executive Director of NAMA, Remi Olaofe, the association said going by the National Automotive Design and Development Council’s report that the level of automotive imports to Nigeria in 2014 was over $5bn, and that imports through land borders, which were not accounted for by way of duty payment, would be in excess of $2bn, translating to over $700m loss in revenue to the country.

According to the association, with the drive towards full implementation of the national auto policy, getting accurate data remains vital and investors need to be aware of the size of the market in making investment decisions.

“The level of damage to our economy both from fiscal and monetary policies perspective is overwhelming when we come to the realisation that the data we plan with is greatly distorted by the unreported imports going through our land borders. This explains why investors, foreign and local, are constantly at a loss when they compare observed market potential with what is officially reported,” the statement read in part.

“It is not surprising to see the pressure being mounted on the upper and lower chambers of our National Assembly by some parties to have the ban reversed. It is worrisome that the legislators would succumb so easily. The Nigeria Automotive Manufacturers Association considers it expedient to urgently disabuse the concerns on job loss as a result of this policy initiative,” it added.

According to NAMA, the Federal Government, through the closure of land borders to vehicle importation, has not placed any ban on the importation of vehicles but has intervened to avert the painful activities of smugglers of vehicles through land borders and loss of revenues to neighbouring countries and legitimate stakeholders in the auto industry.

The association stated that it envisaged the creation of over 4,000 direct jobs and much higher figure for indirect jobs with the policy.

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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South African Government to Sell Stake in South African Airways to Takatso Consortium

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South African Airways - Investors King

The South African government is selling a 51% stake in South African Airways (SAA) to Takatso consortium, which will initially commit more than 3 billion rand ($221 million) to give the struggling airline a new lease of life.

SAA has been under a form of bankruptcy protection since December 2019, but its fortunes worsened during the COVID-19 pandemic and all its operations were mothballed in September 2020 when funds ran low.

The airline is one of a handful of South African state companies that depend on government bailouts, placing the national budget under huge strain at a time of rapidly rising debt.

The partnership with Takatso will alleviate that financial burden, public enterprises minister Pravin Gordhan told journalists on Friday as the state would no longer provide any funding to the airline, which exited administration in late April after receiving 7.8 billion rand from the government. read more

Gordhan added that the government will retain a 49% stake with the intention of eventually listing the airline to address future funding requirements.

“The objective of bringing in an equity partner to SAA is to augment it with the required technical, financial and operational expertise to ensure a sustainable, agile and viable South African airline,” he said.

The consortium includes pan-African investor group Harith Global Partners and aviation group Global Aviation, Gordhan said.

Following the announcement, co-founder and consortium Chair Tshepo Mahloele told Reuters that 3 billion rand should be sufficient to operate the airline for 12 to 36 months.

The government could dispose of more of its ownership stake going forward, he added.

“They aren’t married to this 49%,” he said. “They won’t be putting more money into this asset.”

An initial public offering for the airline is unlikely to happen within the next three years, and SAA would first need to become profitable, Takatso Chief Executive Gidon Novick said.

Novick said Takatso would seek to relaunch SAA as soon as possible, prioritising first domestic service followed by regional destinations.

International long-haul routes would follow but would be selected carefully, and SAA would also work to forge partnerships with major carriers.

“We’re going to be competing with the greatest airlines in the world, and we need to be mindful of that,” Novick said.

The airline’s subsidiaries meanwhile will be evaluated, in particular Air Chefs, SAA Technical and low-cost airline Mango, Gordhan said, noting that “anything can happen” when asked if some could be shut down.

SAA will continue to be domiciled in South Africa and the government will have a “golden share” of 33% of the entity’s voting rights and certain areas of national interest, Gordhan said.

($1 = 13.5379 rand)

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Coca-Cola Partners NGOs To Clear Plastic Waste In Nigeria

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Coca-Cola Company - Investors King

Coca-Cola Nigeria has said it partnered with non-profit organisations to reduce plastic pollution across the country.

In a statement on Thursday, it said it would be doing more to promote environmental sustainability as part of efforts to commemorate World Environment Day.

It stated that it had introduced initiatives to protect the environment through its philanthropic arm, the Coca-Cola Foundation.

Coca-Cola said that it supported the Statewide Waste and Environmental Education Foundation to launch the Eko Beach Race 2021 themed ‘A race against plastic pollution.’

The event had in attendance 2,000 youths, students and sports enthusiasts who participated in a marathon race and beach clean-up.

SWEEP Foundation’s President, Obuesi Philips, stated at the event that it “was geared towards recognising the growing contributions of sport to the realisation of societal development.”

The drink maker also partnered with the Aid for Rural Education Access Initiative to host the “Recycle and Win” festival.

It included community outreach and clean-up programmes in Kwara, Kano, Kaduna, Yobe and Oyo States. Coca-Cola said that 10 tons of plastic bottles were recovered through the process.

The Director, Public Affairs, Communications and Sustainability at Coca-Cola, Nwamaka Onyemelukwe, urged Nigerians to adopt more eco-friendly practices while emphasising the urgency of the current global situation.

Onyemelukwe stated, “At Coca-Cola, we recognise there is a packaging waste problem globally and especially in Nigeria, which is why we pioneered the World Without Waste initiative to engineer innovative solutions to tackle this challenge.

“World Environment Day presents an opportunity for us to act on this mandate as seen by the number of environmental sustainability initiatives we have supported in collaboration with local implementing partners.”

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RAK Unity Petroleum to Shutdown as Shareholders Approved Liquidation

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Rak Unity Petroleum company - Investors King

Shareholders of RAK Unity Petroleum Company Plc, at the company’s 18th Annual General Meeting, held on Friday, 4th June 2021, agreed that the company be wound up voluntarily in accordance with the provisions of the Companies and Allied Matters Act 2020.

The company disclosed in a statement signed by Olubukola Olonade-Agaga, ALSEC nominees Limited Company Secretary.

The liquidation is subject to the approval of the members of the Company in the general meeting.

The statement in part, “THAT Mrs Chinwe Chiwete of the law firm of EPIC Legal of Block 74, Plot 22B, Emma Abimbola Cole, Lekki Phase 1, Lagos be appointed liquidator for the purposes of winding up of the Company, subject to the approval of the members of the Company in the general meeting.

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