South Africa is facing tough economic conditions and the South African Reserve Bank is anticipating only a 2.7 percent GDP growth this year.

Sydney Soundy, the head of Vehicle and Asset Finance at Standard Bank South Africa (SBSA), said clients seemed to be taking advantage of the low interest rate environment in South Africa.

“And clearly they (consumers) still have an appetite for secured credit,” Soundy said.

Vehicle sales were pushed by passenger vehicles and individual acquisitions.

“About 65 percent of consumers are purchasing cars that cost less than R200 000. Toyota, Hyundai and Volkswagen are some of the manufacturers that have met the need for buying economical vehicles, capturing 50 percent of the new car market in this segment,” Soundy said.

“Smaller engine vehicles (<1.7 litres) have seen the biggest sales growth in recent times, growing by just under 12% in 2012 from 2011, compared to growth of 9 percent and 1 percent for medium (1.8 to 3 litres) and large (>3 litres) engine vehicles respectively.”

In the first three months of this year, SBSA has seen an upsurge in the number of applications for vehicle finance.

But the percentage of applications with deposits has waned with more consumers looking to rather finance vehicles without a deposit.

Soundy said the traditional monthly payment sale contract continued to be very popular.

In addition, alternative financing options such as rental and leasing, are gaining momentum.

“Astute consumers are well aware that a vehicle cannot be deemed an asset. They are shifting the risk of vehicle ownership and residual values, and the responsibility of disposing the vehicle at the end of the contract, to the financier,” Soundy said.
 

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The annual meeting which welcomes academics, business school leaders, and education professionals from around the globe, was hosted by CENTRUM Catolica, the Graduate Business School of the Pontificia Universidad Catolica del Peru.

UCT GSB Director, Walter Baets, commenting on the award, said he was pleased, especially with the verification method for the awardee.

“I believe that a peer-reviewed award such as this is one of the most valuable metrics to measure a business school by,” he remarked.

Concidering the growing importance of African economics, the award points the Cape Town-based graduate business school as a pivotal player and leading teacher on the African continent in emerging market expertise.

According to cp-Africa, the selection makes it the fifth time UCT GSB has walked away with top honours at the business school awards.

Hector Paredes-Tarazona, a former MBA graduate of UCT GSB, and COO of IGH Group South America, accepted the award on behalf of the South African institution which also is the only African business school to have a full-time MBA programme featured in the Financial Times’ Top 100 Global MBA Ranking.

In 2012, the GSB MBA was ranked for the eighth consecutive year by the FT, rising six places to reach 54th place.

Ranked second to the UCT GSB in Africa, wasthe University of Stellenbosch Business School.

The Eduniversal International Scientific Committee (ISC) nominates a selection of 1000 business schools from 153 countries, across nine zones. Schools are nominated based on a global mapping system made up of criteria such as universality and international reputation. From the selection, deans and directors of the business schools are asked to vote for the school they recommend most.

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GTB reported the result on Thursday on the floor of the Nigerian Stock Exchange (NSE), showing a 22 percent increment on gross earnings to 45.64 billion naira ($290 million) in the third quarter.

According to a report by THISDAY, financial analysts noted, GT Bank’s expenses climbed 2.45 percent year-on-year (YoY) and dropped 13.45 percent quarter-on-quarter (QoQ).

“Cost to income ratio (CIR) declined marginally from 41 percent in Q2’12 to 39 percent in Q3’12. In terms of efficiency, GTBank is, in relative terms, the most efficient bank among its peers; with the resources available to it,” they said.

The bank which has the highest-priced equity of the banking sector on the NSE, declared an interim dividend of 0.25 naira for its investors.

At close of work Thursday, the bank’s the bank’s stock valued 20.15 naira (13 cents) on trading at the NSE floor in Lagos.

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Nosizwe Nokwe-Macamo, Group Chief Executive PetroSA, said: “We have bought Sabre Oil and Gas Holdings Ltd in Ghana, which gives us access to Jubilee Field and provides a strategic entry into the prolific Gulf of Guinea.”

The gulf is now regarded as one of the world’s top oil and gas exploration hotspots. While Middle East oil producers currently account for about 25 percent of all United States oil imports, Gulf of Guinea suppliers, mainly Angola and Nigeria, account for about 15 percent.

The Jubilee oil field which has a total proven reserves of around 600 million barrels, with production centered around 90,000 barrels per day, was discovered by Africa’s biggest independent oil holder Tullow, in 2007.

The Irish explorer described the find as “massive,” saying it was its largest discovery at the time.

In July, Nokwe had disclosed to Reuters that PetroSA ,which currently has exploration acreage in Egypt, Equatorial Guinea and Namibia, had started discussions to buy Sabre assets in Ghana, in an aggressive move to diversify its revenue base.

The company’s latest annual reports states that new upstream and downstream projects will be undertaken by PetroSA to complement the Sabre Oil and Gas acquisition.

PetroSA reported a net profit of 1.4 billion rand ($162 million) for the 2011-12 financial year.

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The lender, which is one of Nigeria’s top 5 banks, made the disclosure on Monday at the Nigerian Stock Exchange (NSE), reporting increase on all key financial indicators.

Losses incurred from bad debts plunged to 4.7 billion naira ($29.8 million) within the three quarters compared to 11.478 billion naira ($72.8 million) in the similar period of the previous year.

Also, gross earnings within the third quarter rose from 138.5 billion naira ($878 million) to 168.2 billion naira ($1.07 billion).

GMD/CEO of UBA Plc, Mr Phillips Oduoza, commenting on the results, said: “We continue to pursue our unique strategy of maintaining diversified business in terms of geography and earnings mix. In Nigeria , we recorded an impressive growth in deposits and still kept funding costs relatively low despite a spike in interest rates during the third quarter.”

United Bank for Africa (UBA) is a leading pan-African Bank with operations in 19 African countries, New York , London and Paris.

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In June, the FG suspended Dana Air operations after a failed engine of one of its planes caused a crash killing all 159 passengers on board. Jimoh Ibrahim, owner of the country’s national carrier Air Nigeria, in September, fired a majority of his staff citing disloyalty and grounded operations for a year.

According to a BusinessDay, an aviation source said: “In the last few months the situation has been dramatic due to the grounding of Air Nigeria, Dana Air and when Arik stopped operation for three days Aero’s lack of capacity led to the suffering of passengers.”

The source furthered saying for “the domestic routes, Arik and Aero can be described as a duopoly because of their relatively higher capacity.”

The other few airlines flying domestic routes in Nigeria have very few aircraft in their fleet, insufficient to challenge the unfavourable duopoly.

According to reports, the FG urged the Nigeria Civil Aviation Authority (NCAA) to speed up registration of airlines that have met outlined conditions, seeing local air passengers are paying exorbitant fares for flight tickets.

Local flights from the nation’s capital Abuja, could skyrocket to as much as 40,000 naira ($254) at peak periods.

In a bid to salvage the troubled industry, the Stella Oduah-led Ministry of Aviation is in a collaborative effort with financial lenders to give single digit long terms loans to airline operators, including those that have temporarily halted operations, to assist them acquire modern aircraft.

The disbursement of the fund and the acquisition of the aircrafts, would be monitored by the industry regulator and concerned banks.

The post Nigeria In Dire Need Of New Domestic Airlines appeared first on Ventures Africa | .

Nigerian daily, BusinessDay, revealed new retailers have been authorised by the tech giant to expand its presence and increase sales in the Nigerian market. The new Apple channels, which include iConnect and Superior Equipment, are based in Lagos while Cross Energy and iMEED Store, operate in the federal capital, Abuja.

Mr. Rutger-Jan Van Spaandonk, Executive Director for Core Group Africa, Apple’s Value Added Distributor (VAO) which officially launched the iPad in Nigeria, said: “It is in the best interest of Nigerian consumers to buy from the official distribution channel so that they can take advantage also of the 2 year warranty. This is the first time a two year warranty is being given to buyers in Nigeria by Apple at no extra cost whatsoever.”

The growing importance of Nigeria’s tech savvy middle class and the need to give local consumers better consumer experience has attracted Apple’s new move (and other major consumer electronic brands) to the highly promising market.

In September, Canadian manufacturer Research In Motion (RIM) officially opened its store in the Nigerian market where it has sold over 2 million units of its Blackberry smartphone.

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According to online publication Cp-Africa, the asset management arm of J.P Morgan will take a stake in the African ventures through a German holding company in an all cash for equity investment. However, the amount of the investment was not disclosed.

Zando’s Co-founder and Managing Director, Manuel Koser, said: “Attracting such a reputable international investor to support our future growth shows commitment and confidence in our business… This investment will assist the business by supporting its vision and all of its operations.”

Tunde Kehinde & Raphael Afaedor, Jumia cofounders and joint-CEO’s noted that the investment was a “real turning point” for the Nigerian-based company and the enhancement of online retailing in the country.

With Nigeria’s middle class improving and consumer consumption growing, the J.P Morgan investment confirms Nigeria will become a very large market in the not-to-distant future.

Robert Cousin, an official of the investor, while commenting on the deal said the company was “excited” partnering with the African online businesses.

Jumia was launched in June 2012 and offers a wide range of general merchandise categories such as fashion apparel, shoes, electronics, mobile phones, books, toys, beauty products and many more categories. The company currently operates in Nigeria, Egypt and Morocco, with plan to expand in additional countries in the coming months.

Zando is a leading online fashion store offering choice and accessibility to South African consumers with over 300 local and international brands and a large selection of styles featured online.

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According to online publication RTTnews, SABMiller anticipates that by the year’s fiscal end, Chibuku volumes across new markets in Africa would total well over half a million hectolitres, following investments worth $16 million over the last 18 months.

Early this year, a report hinted at the brewing giant spending $260 million across Africa this year, partly to expand production of Chibuku as a commercial alternative to a corn-and-sorghum-based drink called Brukutu that is traditionally brewed and enjoyed across homes in Africa.

Reports reveal the brand’s expansion has created 200 new direct jobs, supporting an additional 1,500 jobs indirectly in the supply chain and distribution network.

Considering growing demand, SABMiller Africa MD, Mark Bowman, has said the company will continue to invest an average of about $300 million to $500 million per year to build more breweries and bottling facilities in Africa.

SABMiller, which is second only to Anheuser-Busch InBev amongst global brewers, is a British multinational brewing and beverage company headquartered in London, with its operations spanning six continents.

Chibuku, a dark-coloured beer made from traditional African recipes using maize and/or sorghum, depending on the preferred taste, is popular throughout Southern Africa. First brewed in Zimbabwe in 1962, the beer is produced following a highly developed brewing process, which ensures product consistency and quality.

The post SABMiller Takes African Beer Into 10 New Markets appeared first on Ventures Africa | .

The fund will be deployed for investments in retail and office developments in East, West and Southern Africa, excluding South Africa.

Paul Fletcher, Senior Partner at Actis said: “The success of this fundraising against the backdrop of a highly competitive market demonstrates the confidence our investors rightly feel in both our real estate team, and the potential of Africa.”

According to David Morley, Head of Real Estate at Actis, investor confidence in sub-Saharan Africa has escalated catalysed by the sheer strength of its 800 million population, its high rate of urbanization and encouraging government support.

The International Finance Corporation, a member of the World Bank Group, had been reported to have invested $124 million in a sub-Sahara Nigeria-based real estate firm, Persianas Group, for the development of additional commercial real estate in the region.

Persianas are the developers of the Palms Shopping Mall in Lagos in which Actis also partly developed.

Actis’s ten person real estate team has already established a visible portfolio for the second African real estate fund with developments in Kenya, Ghana, Nigeria and Zambia; these include Ghana’s first green office building One Airport Square in Accra, and East Africa’s largest retail centre, Garden City in Nairobi.

Actis is private equity real estate firm investing exclusively in Africa, Asia and Latin America. Since 2006, Actis has developed ten institutional quality assets in five countries in sub-Saharan Africa including Ikeja City Mall and The Palms in Lagos, and Accra Mall in Accra.

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