- Dangote to Generate $30bn Annual Revenue by 2022
Aliko Dangote, Africa’s richest man, has said his group of companies will generate a total sum of $30 billion in annual turnover by 2022.
The billionaire based his estimation on Dangote Refinery Ltd scheduled to commence operation soon. According to Dangote, the over $12 billion project will enhance the company’s turnover in two years and strengthen its capital base.
Presently, the group annual revenue stood at $4 billion mainly from Cement, Flour and Sugar units of the company.
Dangote, who was responding to questions from reporters, lauded government’s efforts at diversifying the economy, he said: He said: “We have massive arable land, we have water; we have the right climate; so, the population growth does not really make me nervous. So, I think the federal government is doing very well by focusing more on the agricultural sector. We just have to tilt towards agriculture and manufacturing as against our oil-reliant economy.”
“Sixty percent of the government revenue is coming from oil but the government is doing quite a lot to diversify the economy by even trying to restructure the tax system because we need to make more money from taxes because as it is now, the taxes generation in Nigeria is a bit low but the government is on the right track with these innovations.”
Nike, Adidas, and Puma Lost €7.3bn in Revenue Amid COVID-19 Outbreak
Over the last few decades, the global sportswear market has turned into an enormous revenue-generating machine, with the profits reaching almost €153bn value in 2019. However, the first half of 2020 has brought a huge hit for the world’s largest sports brands, with thousands of their shops closed amid coronavirus lockdown.
According to data presented by SafeBettingSites.com, Nike, Adidas, and Puma, as the world’s largest suppliers of athletic apparel, lost €7.3bn in revenue amid the COVID-19 crisis.
Nike’s Revenue Plunged by €3.87bn
As one of the largest and most recognizable brands on the planet, Nike represents the leader in the industry of sports equipment and athletic apparel. The US-based company, traded as NKE on the New York Stock Exchange, has acquired several footwear and apparel companies over its history, including Converse, Cole Haan, Starter, Bauer Hockey, Umbro, and Hurley International. Today, it sponsors many high-profile professional athletes like Cristiano Ronaldo, Rafael Nadal, Lebron James, and Rory Mcllroy, and manufactures uniforms for a wide range of sports teams including Barcelona, Chelsea and Paris Saint-Germain.
In the third quarter of the fiscal year ending on May 31st, 2020, Nike generated €10.10bn in revenue, a €493 million increase compared to the Q3 2019 figures. However, the company’s Q4 2020 financial report revealed the staggering effects of the coronavirus crisis, with the revenues falling to €6.31bn, a €3.87bn plunge year-on-year.
Due to the excellent financial results in the first three quarters, Nike ended the fiscal year with €37.4bn in revenue, a €1.7bn drop in a year. Statista data also revealed that 41% of that amount was generated in the North American market. EMEA and Greater China follow with 26% and 19%, respectively. In 2020, footwear accounted for 66% of Nike’s total revenues. Apparel follows with a 31% revenue share.
Adidas and Puma Combined Revenues Tumbled by €3.47bn
Europe’s largest sportswear manufacturer and the second-largest globally, Adidas, generated €4.75bn in revenue in the first quarter of 2020, a €1.13bn plunge year-on-year. The company’s Q1 2020 financial results also revealed that earnings per share from continuing operations dipped 96% year-on-year, standing at €0.13. Although Adidas e-commerce sales jumped 35% in the first quarter, it wasn’t enough to balance widespread closures of brick-and-mortar stores.
The downsizing trend continued in the second quarter of the year, with the revenue falling to €3.58bn, a €1.93bn drop in a year. From April to June, almost all Adidas stores except those in the Asia-Pacific region were closed. In Latin America and emerging markets, sales decreased by more than 60%, while European and North America witnessed a 40% drop. Statistics show that the company’s revenue plummeted by €3.06bn in the first half of the year.
As the third-largest sportswear manufacturer in the world, Puma lost more than €415 million in revenue amid coronavirus outbreak. Statistics show the company generated €2.13bn in revenue in the first half of 2020, a 16.3% drop year-on-year.
Volkswagen Opens Vehicle Assembly in Accra Ghana
Volkswagen Launches Vehicle Assembly in Accra Ghana
The German automobile company, Volkswagen, has officially launched its vehicle assembly facility in Accra Ghana, one of the sub-Saharan African countries.
The facility is the fifth Volkswagen assembly in Sub-Saharan African nations following an official launching of Nigeria, South Africa, Kenya and Rwanda assemblies.
It would be recalled that in 2005 Volkswagen awarded the initial phase of the project to Universal Motor Facility, a Volkswagen importer.
The facility is the fulfillment of the Memorandum of Understanding (MoU) Volkswagen signed with Ghana in the presence of the German Chancellor Angela Merkel about two years ago.
According to the details of the facility, the facility has the capacity to assemble about 5,000 units per annum. Tiguan, Teramont, Passat, Polo and Amarok are five models expected to be assembled in the facility as they assembly planned to focus on vehicles that use Semi Knocked Down (SKD).
The announcement of Volkswagen’s investment and the unveiling of the first vehicle assembled in Ghana was witnessed by Ghana President, Nana Addo Dankwa Akufo-Addo with Minister of Trade and Industry, Alan Kyerematen, and other cabinet ministers.
“I assure Volkswagen and its local assembler in Ghana of the full support of the government in creating an enabling environment and incentive framework to make their investment a major success,” Alan Kyerematen stated.
High Pesticide is Reason Nigerian Beans Not Acceptable in Most Countries
High Pesticide is the Reason Nigerian Beans Not Acceptable in Most Countries
High pesticide residue is the reason exporters of Nigerian cowpea (beans) can no longer access certain foreign markets, according to the Nigeria Agricultural Quarantine Service (NAQS).
Vincent Isegbe, the Director-General, NAQS, disclosed this on Monday in Abuja during a strategic engagement with the President of Cowpea Association of Nigeria, Shittu Mohammed.
Isegbe advised stakeholders to work together to address the weak cowpea value chain in order to establish a continuous market for Nigerian beans.
In a statement issued by Gozie Nwodo, the Head, Media, Communications and Strategies, NAQS, Isegbe said “The pattern of boom and bust in cowpea export owes to the ingrained issue of high pesticide residue.
“The pesticides are largely introduced during the storage phase. The residue levels in the cowpea tend to rise above the maximum threshold set by certain Customs union and this makes the product unacceptable in crucial destinations.”
Isegbe added, “We need to make a clean break from imprudent application of storage pesticides and consolidate a reputation for producing and delivering cowpea that satisfy relevant quality criteria.”
He said Nigeria is losing thousands of jobs and foreign exchange due to the suspension of cowpea or other agricultural commodities on account of intolerable quality defects.
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