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Afrexim Signs $1.1bn Loans with Dangote, Elumelu’s Heirs Holdings

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Afreximbank - Investors King
  • Afrexim Signs $1.1bn Loans with Dangote, Elumelu’s Heirs Holdings

The African Export Import (AFREXIM) Bank, has signed a memorandum ( MOU)of understanding with both the Dangote Group of Companies and Tony Elumelu’s Heirs Holdings Foundation for a loan of 1$billion and $.1billion respectively.

The two deals, were signed at one of the sessions at the 24th Annual General Meeting of the bank holding in Kigali, Rwanda.

At the signing ceremony, AFREXIM Bank’s president, Dr. Paul Oramah, said the deal was part of the bank’s bid to expand businesses in Africa through disbursement of N9 trillion ( $25 ) billion in the next five years.

He said the bank, had set for itself target of strengthening businesses in various sectors of the economy within the region to bring a major change in the prevailing situation whereby once there was crash in commodity prices, it would send economies of most countries into recession.

He said the regional bank, which was currently focusing its core strategy on promoting intra-African trade, promoting industrialisation and export of manufactured goods as well as maintaining trade financing leadership in Africa, was already making its business supportive and promotion impact in many countries within the continent.

The AFREXIM Bank boss, commended the president of Dangote Group, Alhaji Aliko Dangote for his business efforts describing him as pride of Africa.

Listing Dangote group among the African business Champions, the continent could boast of Oromah, stated, “A number of African champions have emerged creating manufacturing capacities and fostering the emergence of regional and continental supply chains. For instance:

“The Dangote Group has cement plants in about 14 African countries and is now the largest supplier of cement in Africa. The Group will by 2018 open one of the largest refineries in the world. The refinery, with capacity of about 650,000 bpd, can supply the total refining requirements of West Africa.”

Speaking, Dangote thanked the bank for the loan saying it would be judiciously utilised in expansion of the group’s investment. He said the group had investments in 14 African countries adding that its main business in those countries was cement.

He said in its effort to expand its business frontiers, the group had to contend with competition, some of which comes from top government officials of the host countries.

He said the group, had relied on legal appeals to surmount such problem.

The group, according to him, surmounts problem of high production cost in most of the African countries by generating its own power directly from the national grid.

He said even in the midst of the resistance, the group, paid its taxes to these countries and creates employment for their citizens.

He regretted the existing border challenges in the region adding that 30 per cent of business cost was from border challenges.

He called for ease in intra-Afrcan businesses as was the case in Asia and Europe.

He encouraged young investors in the country to believe in their abilities, adding that this was the beginning of their success.

Speaking, founder of Heirs Holding Foundation, Tony Elumelu, expressed delight in the bank’s effort to strengthen businesses in the region.

He said the foundation would utilise the Loan to advance its vision of growing and empowering young entrepreneurs.

He advised political and economy leaders in the region to make their economic environment more predictable.

Elumelu, who gave the advice while sharing his business experience at one of the sessions at the meeting also challenged private sector business operators to transform African countries into investment destination by encouraging young school leavers who had penchant for entrepreneurship to set up their own businesses.

He observed that 99 per cent of young Africans who had flair for entrepreneurship were out of job due to lack of support.

He said his business experiences, point to the fact that Africans could expand on their existing level of investment by creating right environment, learning to save and invest in the continent, save and allow their money work in the continent instead of taking them abroad, invest for immediate profit and save for the future as well as invest in the youths who were the future leaders by empowering them financially and otherwise.

He cited example with his experience in the Heirs Holding Foundation saying just last year about 90,000-would-be young entrepreneurs, submitted applications for aid from the foundation but only 1000 were taken while the rest were thrown out.

He challenged private sector investors to pick some out of these and empower and develop them for establishment.

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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Private employers

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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