This Corporate News Compilation for the week ended November, 18th 2017 is brought to you by Bluechip Technology Ltd Nigeria.
- Nigeria’s FinTech Company, Kudimoney reported that it was named among the Top 50 Digital Bank’s list, one of the only 2 African Fintech companies that made the cut. The list was drawn up by Financial IT magazine, a leading publication in global FinTech, Artificial Intelligence, Digital Banking and Blockchain. The list, to our surprise leaves out Wema Bank’s Alat which is also a notable Fintech product from Nigeria. The Magazine did explain that its ranking of digital banks is largely subjective. It claims, “it is based on three criteria: media coverage of the digital bank in question; apparent numbers of employees; and an assessment of the overall impact of the digital bank.” They also admitted that they may have inadvertently omitted some banks from the list. However, the Founder and Chief Executive Officer, kudimoney, Babs Ogundeyi, was nevertheless pleased with being included in the list. Kudi Money is an online platform that gives depositors attractive interest rates and uses the deposits to lend money to borrowers at competitive rates. Another, rival Fintech Company Cowry Wise offers a similar product, though using a completely different model. See the report here https://financialit.net/sites/default/files/top50_digital_banks.pdf …
- An Agritech company, Farmcrowdy, announced it has released its mobile app for Android, iOS and Windows mobile devices. The company which claims to be Nigeria’s first and leading digital agriculture platform, last year introduced a product that allows investors looking to invest in the Agric Sector, access farmers and “sponsor” their business in return for between 13% to 25% returns. Farmcrowdy also said it has recorded close to 1,000 unique farm sponsors, aggregated a combined 4,000 acres of farmland in Nigeria for farming purpose and grown over 150,000 organic chickens to date. It claims its sponsors are based in Nigeria, whilst 10% are located in the US and UK. On last check, the app has about 100 downloads only.
- United Kingdom online payment facilitator, Bango, has finally made major inroads into Africa’s largest market, after it announced a deal with 9Mobile. The company will make its platform available for 9mobile platforms looking to purchase items on the Google Playstore without having to use their bank accounts or card details. By simply using 9pay, 9Mobile’s payment wallet, they purchase items on the Playstore on the back of Bango’s gateway. One thing is for sure, ease of payment is often critical to merchandising. Asking you to provide your debt cards is often one risk away of losing a potential customer.
- Smile Communications announced last week that it had partnered with MediaTek to bring the latest VoLTE smartphones to customers in Nigeria, Uganda, Tanzania and the Democratic Republic of Congo (DRC). According to Smile, the 4G VoLTE is a voice technology for high-definition (HD) voice and video communications over a 4G LTE network. Compared to traditional 2G and 3G networks, VoLTE allows consumers to benefit from superior voice, video and data services on single device and a single data plan. It gives customers the choice of using their data for any service they want including voice and video, allows for faster connection of traditional calls and improves call quality. Apparently, dual SIM phones only allow calls and browsing on 4G for only one SIM, relegating the other to 2G or 3G. This service thus makes it possible for you to use your phone for both.
- Airtel Nigeria announced it has signed a three-year contract with Ericsson to “modernize and expand its packet core network, paving the way for even faster mobile broadband services and enhanced user experience for its subscribers.” The Ericsson Evolved Packet Core and other range of solutions delivered, will provide increased reliability and scalability to the Airtel network making it even more flexible in meeting the growing demand for new services. According to the press release, it claims the Ericsson will also support enterprise services and form a secure platform for virtualization and network slicing enabling other advanced services such as 4GMassive IoT and 5G.
- Jumia Food introduced a new product to the Nigerian market which it called Jumia Party. The product allows party organizers to order drinks on the Jumia Food Mobile App and will get it delivered to them “within one hour”. The service is currently available only in Lekki, Ikoyi and Victoria Island in Lagos and will only allow orders starting from N10k and above. Jumia also announced it has formed a partnership with Pernod Ricard to retail all its product lines. CYDK, Pernod Ricard retails Absolut Vodka, Martell Blue Swift, Jameson, Chivas Regal, The Glenlivet, Seagram and many more.
- Dangote Flour Mills has sold its Noodles Unit to rival De United Foods Industries Limited (DUFIl). Dufil are the makers of the dominant Indomie noodles. The deal is said to be worth N3.75 billion or $12.26 million. Dufil Prima’s Indomie Noodles is said to have about 63% of the Noodle’s business. Aliko Dangote once sold Dangote Flour Mills to Tiber Branded for over $200m and later bought it back for $1 less than 4 years later. De United said it signed an agreement with Dangote Noodles to buy plants at its Ikorodu and Calabar factories. It would also “buy stock” worth N383.94 million.
- Remember Maltonic? Well, the Malt drink that once gave Maltina and Malta Guinness competition is back after a six year hiatus. The product disappeared after its maker, Sona Breweries was sold to Nigeria Breweries in 2011. However, its new owners, Euro Global Foods and Distilleries Limited have decided to bring it back into the market. Euroglobal currently manufactures value brand spirits such as Czar Vodka and Power Bitters. Last April they announced they had completed a critical phase of its N3 billion Ethanol plant. The plant is supposed to help them boost its local production.
- Looks like another company has decided to take a shot at the Auto Clinic space. https://Mechville.com, an online platform which claims to be dedicated to connecting car owners with auto technicians, ‘debuted’ in Lagos last week. The company claims if you have a car problem and looking for the right mechanic to fix it, all you need to do is log into their website register, log in your complain and they will match you with the right mechanic. They claim users can assess mechanics via ratings and comments by other users. The app is owned by a company called Partboyz Auto Parts Limited. They also claim to have over 50 certified auto technicians on the platform, with competitive charges. They don’t have a mobile app yet.
- Vlisco Group, the Dutch textile and design company revealed that it is proposing to establish a cotton textile factory in Nigeria. They made this known in a visit to the Minister of Finance, Mrs. Kemi Adeosun. The Chief Executive Officer of Vlisco Group, Mr. David Suddens, who led the group’s delegation to the meeting with Minister, said the investment would boost growth and jobs in Nigeria across the entire value-chain from cotton to fashion. The Group also said is participating across the sector value chain from sourcing of cotton, textile printing, wholesale, retail and e-commerce distribution, garment manufacturing and supporting and training of Nigerian fashion designers. Vlisco dominates the fabric business in Nigeria and has shops spread across strategic locations in the country, marketing its products. About time they establish a factory here.
- In another good news to the auto sector, The CFAO Group last Thursday announced that it has inaugurated a Fuso truck assembly plant in Lagos in conjunction with Mitsubishi Fuso Truck and Bus Corporation. The plant is the 6th in Africa and will roll out about 500 units of in a year. The 2017 versiion of this truck cost about $43k.
- Nigeria’s Diaper War seems to have a new winner, if the latest report by AC Nielsen is to be believed. According to the report, Molfix has taken a 44% share of the market in just 2 years after Hayat Kimya (its maker) made entry into the Nigerian market. The report claims, Moflix has overtaken Pampers (now 37%) as market leader with Huggies, Nice Baby, Dr. Brown, Dry Love, Little Angel and other brands have been pushed to a combined market-share of 18.4%. It claimed it was able to achieve this feat due to its backward integration activities forcing competitors into a price war. The company invested about $100 million into production, erecting an ultramodern diaper/tissue factory in Agbara Industrial Layout, Ogun State. Another possible reason could also be exchange rate challenges which have made imported diapers more expensive and out of reach for most families.
- Another Startup, https://Despatch.com.ng has entered into the delivery space after it launched its website last week. The company is founded by the quartet of OwadaraAdekunle, Odugbesan Abimbola, Sogo Dasilva and Seun Adeleke, and will cater for individuals and businesses operating in the country. This is one space with huge opportunities and it is not clear if we have a clear winner yet. One of their biggest competitors will have to be Venture backed GIG Logistics. Strangely, they both seem to share the same delivery guy on their respective websites.
- Nigeria’s leading insurance company, Leadway Assurance launched a Franchisee program last where it hopes anyone interested in selling insurance can explore. They called it the Revolupreneur scheme and explained it’s their own way of creating opportunities for the youth to create wealth. Bottom line here is, this is purely a marketing scheme as you basically sell insurance for them and earn a commission in return. At least you don’t get deceived into writing test and interviews only to be thrown into the wild as an insurance sales person.
- Looks like depositors are not the only ones caught up in the Heritage Bank quagmire. The, Managing Director, NPA, Hadiza Usman, $21.3m of Federal Government’s funds held for the Nigerian Ports Authority by Heritage Bank had been trapped in the vault of the lender since 2016. She mentioned this to the House of Representatives in Abuja on Wednesday.
- All On, an independent impact investing company, has made its first set of transactions it said is “aimed at facilitating increased access to affordable, reliable and sustainable energy sources for low income households, SME’s, and communities.” It is supported with funding from Royal Dutch Shell. All On also said it works with partners to increase access to alternative electricity products aimed at “under-served and un-served off-grid energy markets in Nigeria, with a special focus on the Niger Delta.” The initial investments include an equity investment in Lumos Global BV and a grant to Nigerian tech ideation incubator, Co-Creation Hub, to launch a challenge to engage Nigeria’s technology innovation ecosystem in the access to energy space. The company seems to be funding any effort aimed at providing alternative off grid energy sources. Not sure this is the solution to Nigeria’s power problems as it doesn’t provide enough electricity to power industrialization.
