Aliko Dangote says he is planning to open offices in New York to help diversify his investments and avoid the risk of currency fluctuations in Africa. The billionaire told Bloomberg in an interview that the intention is also to preserve some of his family’s wealth from devaluation. The CBN devalued the naira to ₦250 from ₦197 when the country was in a recession in 2016. The Bloomberg’s Billionaire Index estimated that Dangote who became $4.3 billion richer in 2019 with his business investments in cement, flour and sugar, lost $5.4 billion which was ₦1.35 trillion at the time. The owner of the biggest cement company in sub-Saharan Africa will use the base and an existing one in London to become more global after the completion of a $12 billion, 650,000 barrel-a-day refinery currently under construction in Nigeria. Dangote is ranked the 95th wealthiest man in the world with a net worth of about $15 billion, according to the Bloomberg Billionaires Index. Dangote holds 85.2 percent stake in Dangote Cement and has shares in other companies like Dangote Sugar, Nascon Allied Industries, Dangote Flour Mills and United Bank for Africa. He has a crude oil refinery currently valued at $12 billion oil refinery under construction.
BUA Cement has listed its shares on the Nigerian Stock Exchange to become the third-largest quoted company in the country, adding ₦1.19 trillion shares with 33.864 billion ordinary shares of 50 kobo each. BUA Cement is the product of the merger between the Cement Company of Northern Nigeria and OBU Cement. The debut listing, the first in the year, is seen by NSE CEO, Oscar Onyema as another opportunity for investors to have access to a company with a good track record. Managing Director, BUA Cement, Yusuf Binji, said the listing, which follows merging of the companies to leverage on synergies and create greater values for shareholders and other stakeholders, was a major fulfilment for the group to have its shares listed after a merger of two companies that control significant markets in Southern and Northern parts of the country.
Nigeria’s government is ending pay television service provider, MultiChoice’s monopoly on the live airing of high-profile sporting events with a directive prohibiting exclusive rights in broadcasting sporting events in the country. The directive made Thursday, was one of the series of measures Information Minister, Lai Mohammed, ordered the broadcasting industry regulator, National Broadcasting Commission to implement to sanitise and reposition the broadcast industry on Thursday. Mohammed specifically directed the NBC to implement a new regulation mandating broadcasters and exclusive licensees to share such exclusive rights with other broadcasters. The regulation, according to the ministry, prevents the misuse of monopoly or market power or anti-competitive and unfair practices by a foreign or local broadcaster to suppress other local broadcaster in the television and radio markets. Mohammed said the new regulation is contained in the report of the committee which he set up to work out the modalities for implementing the recommendations approved by President Buhari to reposition the broadcast industry. The break in monopoly, Mohammed said, is expected to boost the reach and also maximise utilisation by all broadcasters of premium content, in order to grow their platforms and investment in other content. Specifically, DSTV has the monopoly on live airing of English Premier League and UEFA Champions League in Nigeria.
The World Bank cut down its Sub-Saharan Africa’s growth forecast for 2020 due to sluggish external demand, falling commodity prices, and adverse domestic developments in some countries. The international financial institution said in its latest Global Economic Prospects report that Sub-Saharan Africa’s regional growth is expected to pick up to 2.9 percent in 2020, which is 0.2 percentage point lower than its forecast made in October. Growth in the region may accelerate further to an average of 3.2 percent during 2021 and 2022. The institution said that growth in Nigeria expected to edge up to 2.1 percent as the macroeconomic framework is not conducive to confidence. The Bank assumed that the economy in the region will pick based on improved investors’ confidence, energy bottlenecks ease, a pickup in oil production and robust continued growth among agricultural commodity exporters. The World Bank said the economic recovery in Sub-Saharan Africa lost momentum in 2019, with growth estimated to have moderated to 2.4%. Compared to Nigeria’s, the financial institution said that in South Africa, growth is expected to pick up to 0.9 percent on the assumption that the new administration’s reform agenda gathers pace, policy uncertainty wanes, and investment gradually recovers while growth in Angola is anticipated to accelerate to 1.5 percent, assuming that ongoing reforms provide greater macroeconomic stability, improve the business environment, and bolster private investment.