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Egypt Worries Over Low Trade Volume With Nigeria

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  • Egypt Worries Over Low Trade Volume With Nigeria

Egyptian ambassador-designate to Nigeria, Mr Assem Hanafi, has expressed concern over the low trade volume between his country and Nigeria, stressing the need to aggressively improve the situation.

Hanafi said this on Monday in Abuja when he paid a courtesy visit on the President of Abuja Chamber of Commerce and Industry, Mr Tony Ejinkeoyen

The envoy, who expressed his country’s willingness to increase the volume and value of trade with Nigeria, said there was the need to explore huge potentials in both countries.

He said, “My target is to see ways and means to boost trade and investment between Nigeria and Egypt, two biggest countries in Africa with huge potentials and population.

“The volume of trade between Nigeria and Egypt is not very big and this is another sad story of intra-African trade relations. That is why I am here to promote our trade relations.

“The intra-African trade only constitutes 15 percent of the overall African trade with outside.

“So we are eager to multiply the current volume which approximately is $100m plus, it is not something really reflecting the potentials of the markets of both countries.”

He attributed the problem of low trade volume between the two countries to the culture and tradition of African countries not importing from within Africa but from Europe and America.

He said, “So we need to see the comparative advantage which African countries can offer to one another and fill this gap.

“Once we succeed I think it will encourage other countries to follow suit though it may take time; we have a long way to go but it will yield the desired fruits.”

The envoy said Nigeria and Egypt had excellent political relations, sports, culture but the segment that needed further strengthening was the economic relations.

Hanafi stressed the need to reflect the strength and potentials of both countries and see which export could be of help to both countries markets.

“The next thing is to see investors from both countries to have opportunities to invest and increase their investment in both countries; I am sure it will be a rewarding venture,” he said.

According to him, there is also need to encourage companies of both countries to do business together and to see which part could be developed further.

Hanafi, who said Egyptian companies were thriving in Nigeria especially in infrastructure development, said Egypt was considering further investment in power, pharmaceutical, and engineering sectors

He said Egypt was also considering exportation of light vehicles, medical supplies, manufacturing products to Nigeria.

The envoy said there was market for Nigerian products such as ginger, sugarcane and other agricultural products

The President Abuja Chamber of Commerce and Industry, Mr Tony Ejinkeonye, said the chamber was looking at how to increase economic activities between the two countries.

He said, “Egypt and Nigeria are two economic giants in Africa; so we believe that if the two countries work together they can leverage on their enormous potentials to grow the economy.

“Egypt is a powerhouse in Africa so also Nigeria. We look at the trade volume and how to increase it as well as boosting the economic relations.

“What we just arrived at is to engage more, possibly in trade missions between the two countries.

“We have also invited them to our September trade fair; they also invited us to theirs which is aiming at strengthening the Small and Medium Enterprises of both countries.”

According to him, most economies in the world are strengthened by the SMEs, so the same thing with Nigeria and Egypt.

“And when you talk about strengthening economic ties, it also involves the development of SMEs,” he said.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

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Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

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Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

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As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

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Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

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Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

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