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Coca Cola’s interest in cannabis presents export opportunities for Nigeria

Coca-Cola said it has developed an interest in the cannabis drinks market.

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Coca Cola's cannabis drink

World’s leading carbonated soft drink maker, Coca-Cola Co., said it has developed an interest in the cannabis drinks market and wants to take advantage of it with hopes of supplementing its declining sales. This could present an immense opportunity for Nigeria.

Coca-Cola’s surprising disclosure comes just as many companies in America and elsewhere are finding new ways to utilise the marijuana plant which traditionally serves recreational purposes.

As Bloomberg reports, the company is already in talks with Canadian marijuana producer Aurora Cannabis, as it works to develop the special Coke blend.

A spokesman for the company, Kent Landers, said the plan is to infuse a non-intoxicant component of the plant in Coca-Cola drinks with hopes of relieving pain without getting people high.

“We are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world. The space is evolving quickly. No decisions have been made at this time.” -Landers

Coca-Cola is following trends while trying to stay relevant

Meanwhile, Coca-Cola is not the only drink manufacturer looking at taking advantage of the therapeutic components of marijuana while also keeping in touch with trends.

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Just recently, American brewer, Constellation Brands Inc. said it would increase its investment in Canopy Growth Corp (a Canadian marijuana company) with $3.8 billion.

In Canada, a company known as Molson Coors Brewing Co. partnered with a cannabis maker- Quebec’s Hexo’s Corp. to manufacture cannabis drinks. Even Diageo Plc, makers of Guinness beer, are reportedly in talks with several Canadian cannabis maker over a possible deal.

How this could benefit Nigeria

With the increasing interest in cannabis by the likes of Coca Cola Co., Nigeria could potentially benefit. This is considering the fact that the country is a major source of cannabis in the world. Unfortunately, a large volume of the plant cultivated in the country are currently used for recreational purposes, just as many people abuse it even as the authorities struggle to regulate it.

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There is currently no regulation in favour of the cultivation, consumption, and exportation of marijuana in Nigeria. Yet, many large expanses of arable fields are cultivated yearly. This could, therefore, be exploited even as Nigeria stands the chance of gaining millions in foreign exchange .

Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs. He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor. Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan. If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.

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Coronavirus

OFFICIAL: UK Approves Covid-19 Vaccine made by Pfizer/BioNTech

The United Kingdom has approved Covid-19 Vaccine produced by Pfizer/BioNTech and will start distributing from next week.

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The United Kingdom has approved Covid-19 Vaccine produced by Pfizer/BioNTech and will start distributing from next week. The approval by UK Regulatory authorities makes the country the first to approve the vaccine in the world.

The Vaccine is given in two shots (doses).

According to reports monitored by Nairametrics, the vaccine will be administered firstly to medical workers and home caregivers, frontline health workers, those aged 80 and above before being made available to the general public.

The vaccine was made by German company BioNTech in conjunction with US Pharmaceutical giant Pfizer and is said to be 95% effective in preventing the disease. This is after it was tested on over 43, 000 people in the mandatory phase 3 trials.

The US Food and Drug Administration is currently reviewing the vaccine and could also approve its usage later in the month.

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What they are saying

A UK government spokesperson said:

“The vaccine will be made available across the UK from next week. The NHS has decades of experience in delivering large scale vaccination programmes and will begin putting their extensive preparations into action to provide care and support to all those eligible for vaccination.”

“I’m confident now, with the news today, that from spring — from Easter onwards — things are going to be better. We’re going to have a summer next year that everybody can enjoy.” Matt Hancock, UK health secretary.

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The United Kingdom is said to have ordered over 357 million doses from seven manufacturers.

More to follow…

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Coronavirus

COVID-19: Nigeria, 4 others contribute 77.6% of cumulative confirmed cases in Sub-Saharan Africa

South Africa, Ethiopia, Kenya, Nigeria, and Ghana have contributed 77.6% of cumulative confirmed COVID-19 cases in Sub-Saharan Africa.

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The latest COVID-19 daily update report as of November 28th, 2020 shows that there are cumulative confirmed cases of 1,411,393 in Sub-Saharan Africa.

Out of the growing number, South Africa, Ethiopia, Kenya, Nigeria, and Ghana top the list with a total of 1,095,410 confirmed cases, representing 77.6% whilst the other 41 member-countries of the sub-region contributed 22.4%.

According to the report, South Africa tops the list with a cumulative confirmed case of 785,153 (55.6%), followed by Ethiopia 109,247 (7.7%), Kenya 82,605 (5.9%), Nigeria 67,330 (4.8%), and Ghana 51,075 (3.6%).

What you should know

  • There are 55 countries in Africa out of which 46 countries are from the sub-Saharan African region.
  • There are cumulative confirmed cases of 2,137,871 and deaths of 51,248, CFR(Case fatality rate) of 2.4%.
  • In Sub-Saharan Africa, there are cumulative confirmed cases of 1,411,393 and deaths of 31,342, CFR of 2.2%.

(READ MORE: ECOWAS COVID-19: Nigeria drops to 7th position in recovery rate)

  • The Sub-Saharan Africa cumulative confirmed cases and deaths represent 66% and 61.2% of entire Africa’s figure respectively.
  • Chad with 6.1% topped the list on CFR, followed by Liberia with 5.2% and Sao Tome & Principe 4.8% with the least coming from Eritrea 0%, followed by Burundi 0.1%.
  • 5 countries contributed to 84% of deaths in the region and they are South Africa, Ethiopia, Kenya, Nigeria, and Cameroon.
  • South Africa tops the list of cumulative deaths with 21,439 (68%), followed by Ethiopia 1,701 (5.4%), Kenya 1,445 (4.67%), Nigeria 1,173 (3.7%), and Cameroon 462 (1.5%).
  • The least in the cumulative confirmed case comes from Eritrea with 577 followed by Burundi 684 as well as in the least cumulative death of 0 for Eritrea and 1 for Burundi.

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Companies

Dangote Cement market capitalization increased by 28% to cross N3 trillion mark in November

Dangote Cement Plc increased market capitalization by 28% to N3.49 trillion at the close of trade on the 30th of November.

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Dangote Cement Plc. appoints Ms. Berlina Moroole as non-Executive Director

The market capitalization of Dangote Cement Plc increased from N2.73 trillion at the open of trade on the 2nd of November 2020, to N3.49 trillion at the close of trade on the 30th of November.

Further checks revealed that the market capitalization of Dangote Cement Plc increased by 28.13% during the period under review.

The drive behind the gains

It is important to note that the increase in Dangote Cement’s market capitalization was driven by the renewed buying interests by investors in key Nigerian stocks with huge values and impressive fundamentals.

This hunt for value on the bourse led to a wild increase in the share price and also the market capitalization of key companies on the Nigerian Stock Exchange in the month of November.

(READ MORE: Dangote Cement gains ₦273 billion on NSE since release of its 2020 Q3 report)

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However, the renewed buying interest can be attributed to the strong performance which Dangote Cement displayed in the third quarter of 2020, despite the challenging macroeconomic environment.

Given the strategic positioning of the cement producer in the industry,

  • Dangote cement reached a record high EBITDA margin of 24% in the third quarter of 2020.
  • Group net profit of N82 billion, which is 135.1% higher than the profit reported by the Group in the third quarter of 2019.

This strong performance made analyst review their models, and also the Group’s valuation, this however triggered buying pressures in the shares of Dangote Cement, with its market capitalization increasing by 28.13% in the period under consideration.

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What you should know

  • Market capitalization is the aggregate valuation of a company based on its current share price and the total number of outstanding stocks.
  • Market capitalization tells how much investors value a company, and gives an idea of what a company is worth on the stock exchange, as well as investors’ perception of a company’s future prospects.

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