As part of its further response to deal with the global economic challenge occasioned by COVID-19, Heritage Bank Plc has reiterated commitment to deepen its support to young entrepreneurs in Nigeria to grow their businesses either as start-ups or prospective business owners. This, the bank said, is in line with its culture as timeless wealth partners, which would impact positively on the nation’s socio-economic development.
The MD/CEO of the bank, Ifie Sekibo stated that Heritage Bank was mindful of the devastating impact of the pandemic to the nation’s economic system, hence as an institution at the forefront of investing in human capital development for critical economy recovery, “we will up our game to empower Nigerian youths who are one of the bedrock of any vibrant economy,” he added.
He disclosed that one of the channels churned out in partnering the youths to leverage their talents and contribute their quota to the growth of the economy, was the use of financial inclusion strategy which would be adopted to boost entrepreneurship development, as this is critical to Heritage Bank’s mission to create, preserve and transfer wealth across generations.
He further explained that Heritage Bank’s various entrepreneur schemes in the support for business had always focused on dependable job-creating sectors, such as agricultural value chain (fish farming, poultry, snail farming), cottage industry, mining and solid minerals, creative industry (tourism, arts and crafts), and Information and Communications Technology (ICT).
Sekibo restated that the aim of Heritage Bank being at the forefront of youth empowerment is to emancipate the latent entrepreneurial spirit in the teeming youths to unleash their support to the growth of the economy.
His words: “At Heritage, nothing else is more fulfilling than to groom-to-empower young aspiring start-up entrepreneurs, as we mentor them to grow and become large corporates enlisted on the Nigerian Stock Exchange.
“In recent times, we have worked with private and public sectors- The Next Titans, HB Lab, Creative Nigerian Summit, National Festival of Arts and Culture (NAFEST), NYSC and the Central Bank of Nigeria to support youths and young entrepreneurs to grow their businesses as a start-up or prospective business owners.
He also reiterated that the bank had continued to make efforts to lead the recovery of the Nigerian economy through championing several empowerment schemes such as the Prime Women Builders Foundation of Nigeria, Youth Innovative Entrepreneurship Development Programme (YIEDP), Centre for Values in Leadership (CVL) on Young Entrepreneurship Business Training Programme (YEBTP), Young Entrepreneurs and Students (YES) Grant and Nigerian Young Professional Forum (NYPF), amongst others.
UBA Foundation, the corporate social responsibility arm of the United Bank for Africa (UBA) Plc, has today commenced the 2020 edition of its annual National Essay Competition in Nigeria with a call for entries.
Now in its tenth year, the National Essay Competition (NEC) is part of UBA Foundation’s education initiative which is aimed at promoting the reading culture and encouraging healthy and intellectual competition amongst secondary school students in Nigeria and across Africa.
This year’s edition, which is the 10th since inception, has been modified to ensure ease of access and increased participation of senior secondary school students from the comfort of their homes through the introduction of a digital submission portal.
Taking into consideration the effects the Covid-19 pandemic has had on lives and incomes across board, the UBA Foundation has also increased the prize money for the 2020 edition of the NEC by 33 per cent as the first prize winner will get an educational grant of N2.5m, up from N2m in 2019. The second and third prize winners will now receive N2m and N1.5m educational grants respectively, from N1.5m and N1m which were awarded in the previous year’s competition.
The Chief Executive Officer, UBA Foundation, Mrs. Bola Atta stated that with the newly introduced digital submission portal, more students in secondary schools across the country will have the opportunity to scan and send in their entries and compete to win educational grants for study at any university of their choice on the African continent.
She said, “As a Foundation, which is the CSR arm of the United Bank for Africa – a fully digitalised bank, we are driven by the mantra to always innovate and adapt to our constantly changing environment. This year, we thought hard about how to ease the pains that everyone is feeling. Students have not been able to go to school and there has been a lot of anxiety in families trying to ensure that educational gaps do not emerge. It is imperative for us at the UBA Foundation that our impact programmes do not wane. We also need to design them to be as inclusive as possible so that those students who don’t have easy access to computers can still participate in the competition with a chance to win grants towards their tertiary edification.’
Atta explained that the choice of topic for this year’s edition is one that helps promote creative and analytical thinking in students whilst helping them become problem solvers. The essay topic selected is “Do you think that the lock – down during the Covid-19 pandemic was an essential measure in spite of the hardship it has brought economically? What would you have done differently and why?”
All entrants are to hand write their essays and upload scanned copies of their handwritten entries as well as ID on the digital portal atwww.ubagroup.com/national-essay-competitionbefore October 2,2020. They may also drop off the handwritten essays at their nearest UBA business office for onward submission to the UBA Foundation.
The judges who are made up of esteemed professors from reputable Nigerian Universitieswill receive all the essays on a digital drive, evaluate them and select the top 12 finalists all of who will take home consolation prizes including personal computers.
The finale of the NEC this year will be conducted virtually as the initiative rolls out across 19 more countries in Africa.
UBA Foundation embodies the UBA Group’s CSR objectives and seeks to impact positively on societies through several laudable projects and initiatives. The Foundation has donated hundreds of thousands of books to students across Africa under the ‘Read Africa’ initiative aimed at encouraging and promoting the reading culture in African youths.
The Group Managing Director/Chief Executive of Zenith Bank, Mr. Ebenezer Onyeagwu has called for a concerted effort towards diversifying the country’s export base through the promotion of non-oil exports. He made the call during a Webinar themed “Prospects of Non-Oil Export During and Post COVID-19” organized by the bank on Wednesday, August 26, 2020.
According to him, the onset of the COVID-19 pandemic which has impacted the demand for oil and, by extension, the price of crude oil in the international commodities market has further exposed Nigeria’s over-dependency on crude oil earnings and its susceptibility to oil-related shocks. He added that the events of the last couple of months have also highlighted the limited range of the country’s value-added products exported to foreign markets.
He noted further that boosting non-oil export is imperative in view of the opportunities that exist in the broader contexts of ECOWAS Trade Liberalisation Scheme and the African Continental Free Trade Area (AfCFTA) which seeks to create a continent-wide market of 1.2 billion people with combined Gross Domestic Product (GDP) of $2.5 trillion and about $4 trillion in consumer and business spending.
Whilst commending the efforts of the government and the Central Bank of Nigeria (CBN) to deepen the non-oil export business in the country, Onyeagwu urged players in the non-oil export value-chain including exporters and financial institutions to play their part in the drive towards expanding the nation’s non-oil export base.
Delivering the keynote address, the Director of Trade & Exchange, Central Bank of Nigeria (CBN), Dr. (Mrs) Ozoemena Nnaji, who commended Zenith Bank for organizing the webinar at a time like this, observed that the impact of the COVID-19 pandemic is a wake-up call for the country, as it has once again exposed the over-dependence of the Nigerian economy on one product. She therefore called for a deeper policy look at the non-oil sector to find ways of genuinely improving the quality and quantity of our non-oil export goods.
Also speaking at the Webinar, the Chief Executive/Executive Director of the Nigerian Export Promotion Council (NEPC), Mr. Olusegun Awolowo commended the efforts of Zenith bank in promoting non-oil export business in Nigeria, describing the bank as ‘the Export Trade Bank of Nigeria’. Speaking on the topic “Repositioning Non-oil export as a Leading Revenue Earner: Government Plans and Programmes”, Awolowo noted that the crash in oil prices following the COVID-19 pandemic and OPEC’s price war with Russia reinforced what everyone already knows – the mono-product economy of the country is not sustainable, calling for a buy-in into the Zero oil policy of NEPC.
Zenith Bank remains committed to the promotion of the non-oil export sector in Nigeria by identifying emerging opportunities which help in stimulating non-oil exports and developing robust financial products and incentives for operators in the sector. The bank l
Following the devastating effect of the COVID-19 pandemic on businesses globally and locally, the Philips Consulting CEO Report has forecasted August 2021 normalcy for business environment in the country to fully activate and operate optimally.
Phillips Consulting Limited recently engaged 100 Nigeria business leaders on the current economic landscape and presented the insights in its “CEO Report”, which stated that 57 per cent of CEOs expect that the earliest possible time for the business environment in Nigeria to normalize will be August 2021.
According to the report, CEOs are increasingly taking responsibility for their companies, and are not necessarily looking up to the government for solutions to the problems occasioned by the pandemic.
For a greater awareness on political leadership in the country, the survey showed that as against the 79 per cent CEOs who voted in the 2019 general elections, only 67 per cent CEOs have reported that the pandemic would make them more interested in the outcome of the 2023 election.
Speaking on the CEO Report, Philips Consulting’s CEO. Rob Taiwo said, “Results from our survey showed that the Nigerian government and business leaders should pay close attention to the post-COVID19 policies and strategies of the United Kingdom, China, and the United States of America as these will have the most profound impact on the Nigerian business environment.”
He said, “At pcl., we are committed to working with our clients and partners to build and develop people’s capabilities, technology systems and processes, effective and robust strategies, and business continuity plans. Let us work with you to future proof your business in the next normal.”
On managing money matters, Taiwo said, “Our 2020 Mask in the Air report states that “the most significant impact of COVID-19 is the restriction in movement, having its direct and detrimental impact on the local and global aviation industry”.
An already bleeding hospitality industry will experience slow recovery, as 68 per cent of CEOs identified travel and tourism as their number one cost-cutting area. 55 per cent of companies are considering reducing staff allowances and bonuses, while 40 per cent and 30per cent will cut rental costs and staff training respectively.
On the matter of fiscal adjustments, only 22 per cent of CEOs have laid off staff, as most of them found proactive ways to keep their workforce engaged and economically productive. However, due to reduced cash flow, 46 per cent of companies had to roll out pay cuts for their workers. The decision to employ pay cuts rather than termination as a cost reduction strategy is advisable to ensure that culture is not diluted, talent is retained, employees are not demotivated, and the company projects an excellent corporate image, the report highlighted.
The report also highlighted challenges facing the real estate industry in Nigeria and posited that the industry may be the worst hit among others. In the report, 84 per cent of CEOs agree that the real estate industry, especially companies in the business of office rentals, will be badly hit by this disruption.
About 83 per cent and 55 pe cent of CEOs adopted a Work From Home Strategy and Standby Model Strategy respectively, and are beginning to question the need for large office spaces. Only 46 per cent of CEOs are considering retaining their current offices, while others will seek smaller and cheaper offices, shared offices, or adopt an entirely virtual working model.
In commercial cities like Lagos where massive high-rise office complexes are commonplace, real estate players must be ready for a shift in demand. They might be forced to repurpose their buildings or provide new services to suit the new mode of work.
Speaking on which industries benefit from the crisis, Taiwo, a transformational leader said, “Globally, the IT sector experienced a surge in the wake of the pandemic, as a result of the shift to remote working. This resulted in a heavy reliance (or dependence) on IT products for both personal and business purposes.
Nigeria is no exception, he stated, “From our survey, 86 per cent of CEOs reported that the pandemic led to them improving the IT infrastructure of their organizations. Our respondents predict that Nigeria’s healthcare, agribusiness, and manufacturing industries stand to benefit from the next normal.”
“They expect the professional services industry to experience comparatively minimal disruption. This is primarily due to their vast array of services, relatively low operational expense, lean and agile business model, and legacy clients.”
On the levels of preparedness for the pandemic, the Report said, only 6 per cent of CEOs reported that their organizations were prepared for the pandemic. Hence, it comes as no surprise that 55 per cent of Nigerian businesses are currently operating below 50 per cent of their operating capacity.
The 6 per cent mentioned above stated a strong leadership team as the most critical factor of their preparedness. Other important factors include having a robust business continuity plan, government support, and a well-articulated business strategy.
On forging ahead into the next normal, the CEOs Report revealed that 57 per cent of CEOs expect that the earliest possible time for the business environment in Nigeria to normalize will be August 2021.
CEOs are increasingly taking responsibility for their companies, and are not necessarily looking up to the government for solutions to the problems occasioned by the pandemic. As against the 79 per cent of CEOs that voted in the 2019 general elections, only 67 per cent of CEOs reported that the pandemic would make them more interested in the outcome of the 2023 election.
Taiwo said, “Results from our survey showed that the Nigerian government and business leaders should pay close attention to the post-COVID19 policies and strategies of the United Kingdom, China, and the United States of America as these will have the most profound impact on the Nigerian business environment.
September 11, 2020 will mark an auspicious day for the Chairman/CEO of Ocean Marine Solutions Ltd, Captain Dr. Idahosa Wells Okunbo. He will be honored alongside prominent African business leaders such as: Dr Adeduntan Adesola, Managing Director First Bank Plc and founder and executive chairman of Online Integrated Solutions Ltd, Mahmood Ahmadu, for the Forbes Best of Africa awards.
Captain (Dr.) Idahosa Wells Okunbo, JP is a Nigerian business magnate, philanthropist and investor. Idahosa Wells Okunbo began his career as a professional commercial pilot. “Captain Hosa”, at 30 years of age he left his job as a pilot to go into business in the oil and gas sector focusing on procurement as an area of core competence.
Today, the broad range of his business portfolio spans Marine Security, Marine Logistics, Property and Real Estate, Hotel and Hospitality, Aviation, Entertainment, Energy, Power, Telecoms and Agriculture.
Okunbo has made contributions to charitable causes all over the world and is the recipient of numerous awards and accolades.
The Chartered Institute of Bankers of Nigeria (CIBN) yesterday official presented Certificates of Accreditation to Heritage Bank Plc Academy known as “The Refinery” and the Central Bank of Nigeria (CBN) Learning Centre.
The Institute via a Zoom virtual platform also accredited more 25 Educational Training Service Providers (ETSP), which is in accordance with its role as the Accreditation Agency for the implementation of the Competency Framework released, as part of the strategy to redirect the banking industry towards the path of entrenching a sequenced competency development programme and build capacity for the stability of the financial system.
The Institutions include Crown Agent UK; B. Adedipe Associates Limited; Chartered Institute for Securities and Investments (CISI), United Kingdom; The Nigerian Stock Exchange X Academy; Mactay Consulting Limited; Knowledge Beyond Limited; Brideswell Consulting Limited; Ultravantage Solutions ; EdgeEcution Global Resources Limited and Katalyst Consulting.
Others are: Michael Stevens Consulting; NLP Nigeria Limited; Procept Associates Professional Services Limited; Don Mitchell & Co Limited; Bode Zakari Management Consultants; Success for ALL Limited; Edcof Educational Services Limited and Kloverharris Limited.
The Refinery supervised by the Bank’s Human Capital Management Group was accredited by CIBN after assessing and evaluating its syllabus, curriculum and structure by panel of technocrats and seasoned bankers set up by the Institute, which according to the chartered institute aligns with the Competency Framework of the Central Bank of Nigeria (CBN) and the professional paper standard of CIBN.
Speaking during the presentation, the CIBN President, Bayo Olugbemi said the event marks yet another significant milestone in the annals of the Institute and our continuing quest for the strengthening of the intellectual resources and capabilities of the human capital in the banking and finance industry. He stressed that apart from efforts towards addressing competency challenges, thereby enthroning a minimum standard for practitioners in the banking industry.
He applauded Heritage Bank for setting a high standard of learning facility which its structure and curriculum “is next to that of CBN’s training institute,” whilst stressing that the bank’s training school is the best in Nigerian banking industry and at par with international best standard.
He equally informed the gathering that the Certificates of Accreditation presented to Two (2) Bank Academies and Twenty-Six (26) ETSPs bringing the total number of institutions under the Programme to Nineteen (19) Bank Academies; Seventy-Five (75) Educational Training Service Providers; Sixty-Nine (69) Solicited Accreditation; Six (6) Unsolicited Accreditation.
Ifie Sekibo, the MD/CEO of the bank, has described Heritage Bank as a forward looking business whose strength lies in the ability to spot and mould talents into great professionals.
Sekibo, represented by the Executive Director, Jude Monye explained that the word “The Refinery” was chosen for the purpose of refining its employees to emerge as gold and harness the required skills to excel in their job functions.
He noted that the Refinery was established to train, nurture and arm young employees with the right skills needed to fast-track development and enable teams to flourish.
“Just as the word Refinery connotes, the Heritage Bank Plc Refinery is a Facility where crude talents or abilities are converted or ‘refined’ into ‘finished’ jewels for optimal performance.
“The training program is designed to take each participant on an enriching, rigorous and intellectually engaging learning journey to equip them with the fundamental competencies required of a professional banker. The Curriculums are structured to accommodate both Core and Non-Core Banking competencies such as finance, credit and accounting, organizational and behavioral competencies to mention a few”, Sekibo stated.
Meanwhile, about 300 employees who are fresh from universities across and outside the country with diverse academic backgrounds and impressive academic records underwent rigorous training in an intensive 12-week academic (practical and theoretical) programme with over 30 courses in Port Harcourt.
The Refinery is a tailored learning experience Institute with the perfect blend of technologies, techniques and methodologies to optimise training experiences, which will help employees, succeed in ensuring that the bank’s business stays ahead of the curve with the banking sector along with Heritage Bank’s target goals.
First Bank of Nigeria Limited today, announced its lead sponsorship of the TV reality musical talent show, The Voice Nigeria, Season 3.
The talent show which is organised by UN1TY Nigeria is created to discover, nurture and bring to the fore musical talents amongst the next generation of Nigerian youth.
The Voice Nigeria will be produced for the first time in Nigeria and will be aired on DSTV channel (Africa Magic) Startimes and terrestrial TV channel (AIT), amongst other leading television stations in the outside the country. Nigerians can expect to see the very best talents on stage in the course of the competition.
The musical talent hunt show would start with blind auditions to be submitted upon being shortlisted after a successful registration, then battle auditions which then move out of the rooms and straight into the arenas, with hopefuls having to perform in front of an arena audience from the start in the hope of making it through to the next stage.
The Voice Nigeria will be hosted by Nancy Isime, Toke Makinwa and the coaches are Dare Art Alade, Folarin Falana (aka Falz), Yemi Alade and Aituaje Iruobe (aka Waje).
Interested participants are to register via the link www.thevoicenigeria.com with their FirstBank account number as a requirement. Should one not have an account with the Bank, then dial the Bank’s USSD code, *894*0# to be a FirstBank account holder. The audition is open to individuals within the age of 18 -50 years who are have been residing in Nigeria for 12 consecutive months. The registration for audition is open from 25 August – 19 September 2020.
There are numerous awesome prizes up for grabs. The winner of the show will be go home with whooping ten million naira cash; a brand new car and an exciting one-year recording contract reward with Universal Music.
Speaking on the talent hunt show, Folake Ani-Mumuney, Group Head, Marketing & Corporate Communications, FirstBank, said “we are delighted to be the lead sponsor of The Voice Nigeria, this partnership is hinged on our Brand’s passion to empower and invest in our youths. FirstBank has given voice to the young and indeed all Nigerians for the past 126 years, and will continue to give voice to Nigerians by creating employment, economic empowerment in the country through our products, services and initiatives. We remain committed to strengthening the creative industry which is fast growing into a multibillion-dollar business, with potential to be a leading contributor to Nigeria’s GDP in the near future.”
We commend UN1TY Nigeria for The Voice Nigeria as our sponsorship is in recognition of the vast talents Nigeria is blessed with which we are delighted to promote, thereby having a positive impact the Nigerian entertainment industry. We enjoin everyone to follow our social media channels for more details on the programme, whilst also staying locked on their TV screen. More details would be provided in the course of the weeks through our social media channels.
“The show promises to be engaging, full of surprises and with fun-filled excitement to our viewers” he concluded.
According to research disclosed in PWC’s recent Entertainment & Media Outlook report, Nigeria’s entertainment is expected to rise from $4.46 billion in 2018 to a $10.5 billion market by the end of 2023. In addition, with this initiative and other sponsored event targeted at the youth, the premier Bank in Nigeria, FirstBank, is committed to strengthening its contribution to the development of the entertainment industry in the country.
September 11, 2020 will mark an auspicious day for Dr. Adesola Adeduntan, as he will be honored alongside prominent African business leaders such as: CEO of Ocean Marine Security Ltd, Idahosa Wells Okunbo; and founder and executive chairman of Online Integrated Solutions Ltd, Mahmood Ahmadu, for the Forbes Best of Africa awards.
Dr. Adesola Kazeem Adeduntan is the managing director/chief executive officer of First Bank of Nigeria Limited, a visionary leader and an achiever to be reckoned with in the financial services sector, who earlier in the year bagged the much-coveted and celebrated Cranfield University School of Management Distinguished Alumnus of the year Award.
A veteran in the banking world and a veterinary doctor by training, Adeduntan believes strongly in the importance of doing well by doing good. In March 2020, he spoke at the Edinburgh School of Business about financial institutions’ role as drivers of financial inclusion. In his leadership role at First Bank of Nigeria Limited (FirstBank), Adeduntan is part of a 126-year legacy of sustained development-oriented services.
Also, in a recent media intelligence report presented by P+ Measurement Services, Adesola Adeduntan topped the list of most prominent and reputable Nigerian banking CEOs in Q2 2020.
The virtual event which will be held in conjunction with Foreign Investment Network (FIN) will be an online roundtable discussion to be supported by the World Philanthropy Network will feature former Nigerian President, Olusegun Obasanjo, presenting a keynote address.
L-R: Head of Operation, Slum2School Innovation Hub, Dr. Ruth Ebe; MD/CEO, Prudential Zenith Life Insurance, Mr. Chuks Igumbor; Executive Director/Founder, Slum2School Innovation Hub, Mr. Otto Orondaam and Chief Commercial Officer, Prudential Zenith Life Insurance, Mrs. Isioma Olowu during the cheque presentation of $100,000USD donation to support Slum2School efforts at bridging the education gap amongst the less privileged students during this COVID-19 pandemic.
Prudential Zenith Life Insurance has donated the sum of One Hundred Thousand United States Dollars (US$100,000) to Slum2School Africa to help combat the impact of the COVID-19 pandemic on education in disadvantaged communities in Nigeria. The donation was made through a Corporate Social Responsibility (CSR) Fund from the Prudence Foundation, the community investment arm of Prudential Plc in Asia and Africa.
Slum2School Africa is a leading volunteer-driven developmental organisation, transforming society by empowering underprivileged children in slums and remote communities with quality education, entrepreneurial skills and psychosocial support to enable them to realise their full potential and become social reformers.
Speaking during the presentation of the cheque, the Managing Director/CEO, Prudential Zenith Life Insurance Limited, Mr. Chuks Igumbor said that: “Our contribution to Slum2School’s activities demonstrates our corporate social responsibility action plan which is targeted towards communities most in need of the support we provide.” He noted further that “the Coronavirus pandemic has impacted all aspects of our lives including the education sector, with a steep widening of education inequality as children and youths from underprivileged communities are unable to access the learning materials that students from affluent backgrounds are able to access. The strategic partnership between Prudential Zenith Life and Slum2School, therefore, aims to bridge this gap and engage learners from Nursery to Senior Secondary School across twenty slums and communities in Lagos State.”
The $100,000 donation will be used to procure 300 tablets with internet connections, 34 laptops for Slum2School facilitators, 34 whiteboards, markers and board eraser sets, state-of-the-art learning studio for 50-90 pupils per session, stationery for students, as well as learning programs and software. In addition to the cash donation, relief foodstuff was also provided to less privileged families within the identified communities to assist in these trying times.
Prudential Zenith Life Insurance Limited is part of Prudential Plc, one of the oldest and most strongly capitalised life insurance companies in the world. It provides a range of insurance and investment-linked savings products designed to suit corporate and individual customers’ budgets. Prudential Zenith Life seeks to remove uncertainty from life’s big events, providing customers with the freedom to confront the future with greater confidence. It is equally committed to meeting the long-term savings and protection needs of families and businesses in Nigeria. Whether someone is starting a family, saving for a child’s education or planning for old age, Prudential Zenith Life provides customers with financial peace of mind.
World Business Angels Investment Forum (WBAF), recently revealed key-findings of a global survey that included business owners from more than 81 countries and across multiple industries, stating the fact that the after effect of COVID-19 pandemic has put world is on the verge of a great disruption.
WBAF is an affiliated partner of the G20 Global Partnership for Financial Inclusion (GPFI), in a latest release by Chairman, Altuntas Baybar led WBAF and explained by WBAF International Partner in Nigeria, David Lanre Messan (DLM). The release state that for the first time since the Great Depression of 1929, every country, every society and every economy in the world is witnessing the impact on health, employment, finance, trade and business; noting that reports from the World Bank, International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), World Economic Forum (WEF), and NASDAQ forecasts wide-ranging effects of this great disruption which has adversely affected the current state of the global entrepreneurship ecosystem.
Revealing this recently, David Lanre Messan (DLM) disclosed that WBAF has submitted comprehensive policy recommendations to the G20 leadership in order to alert policymakers about the urgent needs of start-ups. He noted that the organisation elicited opinions on issues in a variety of domains, ranging from financing, the workforce, business model realignment, and types of support that are needed during this turbulent economic period.
David Lanre Messan, an alumnus of Harvard Business School Online, Nexford University and Pan Atlantic University is an award winning idea strategist, entrepreneur and investor with key interest in entrepreneurship and technology (Tech-Startups, Fintech and Sharing economy). He is highly skilled in idea development, brand strategy, disruptive strategy, fund raising and startup development and has worked as a global advisory board member (West Africa) for Innovate Africa and Scalabl international advisor (Africa), his works has also been recognized by the World Economic Forum, Global Shapers Community, World Bank, Taking IT Global, African Business Leadership Forum, and European Research Council.
According to Messan, WBAF survey from the latest IMF Global Financial Stability Report indicates that a projection of high market volatility, a collapse in risk asset prices, a reversal of portfolios, and a deterioration of market liquidity is imminent. The survey also quoted that the World Bank prediction that the global GDP will shrink by 5.2% in 2020, the worst scenario since World War II, that will nearly triple the contraction experienced during the 2009 recession and also, includes a recent OECD report that predicts massive global unemployment rates which also expects that, starting in fourth quarter of 2020, recovery will be slow, and in many regions, returning to pre-COVID-19 levels will take 2 years.
He noted that the survey also quoted other institutions like the WEF identified a number of key risks, such as, 500 million people falling into poverty, a 3% drop in world output, an anticipated fall in global trade of up to 32%, and an estimated 40% drop in Foreign direct investment (FDI). “The report forecasts that bankruptcies will skyrocket, that many industries will fail, and that structural unemployment levels will be elevated for years to come,” explained Lanre Messan.
Continuing, he said that NASDAQ survey indicated that start-up investors expect there will be a significant impact on investing activities and that this pandemic-induced environment will last between 1 and 2 years.
According to him, WBAF survey and key findings done in the month of May, 2020 projects that these global financial conditions will clearly have a greater effect on the entrepreneurship ecosystem than they would in non-pandemic times.
“The comprehensive survey and key findings show that 52.22% expected their funds would last 3-6 months without any additional funding while 29.6% of respondents reported that their current funds would last more than 3 months. Secondly, 41.1% of respondents reported a 50% drop in market demand for their services or products and 63.1% of startups surveyed; plan to change their business model in the post-pandemic business cycle while 36.1% of respondents have definite plans to pivot their business during this business cycle.
Thirdly, 46.5% of respondents believe that the impacts of the pandemic will last6 months to a year while 11.3% believe it will persist beyond 2 years. Fourthly, 39.90% of respondents reported a drop in the valuation of their business, but 21.67% reported an increase. Lastly, funding, demand, and workforce represent 37.93% of the challenges start-ups face, with funding ranking highest,” Lanre Messan added.
Meanwhile, there is an additional insight from WBAF survey showing comparative analysis of the global impact from professionals and corporate bodies that include Prof. Inderjit Singh, former Singaporean Parliament Member and Chair, WBAF’s Global Startup Committee; Baybars Altuntas, a former Senior Advisor to the London Stock Exchange Group, now chairs the World Business Angels Investment Forum and Hauwa Yabani, WBAF High Commissioner for Nigeria.
This insight survey however, highlighted impacts across all industries with Consulting and professional services being the most heavily affected at 29.02% and electronics, the least at 1.96%. The survey also indicates that there was a high level of agreement at 74.88% among respondents, about the need for and the benefits of liaising between business owners and policymakers, while pointing an equal downturn in short- and long-term investments at 39.41% and widespread, complex contingency plans. But these accordingly, included reducing costs, laying off staff at 27.9% and seeking additional capital to sustain their business placed at 41.38%.
Prof. Singh says, ‘At this point, we would like to provide a summary of insights from other global surveys conducted by international organizations over the past few months that offer complementary views. Some focused only on one segment within the entrepreneurial ecosystem, while others attempted to get a more comprehensive picture. Overall, you will see that the WBAF findings are consistent with these other major surveys.”
Prof. Singh’s observations follow with Ernst and Young Global, a consulting firm. Two of the key findings were related to the status of existing projects, specifically that 65% of existing foreign investments were proceeding as planned, 25% were delayed, and 10% were cancelled.
Also, Deloitte conducted and published the results of a survey on global human capital trends related to the future of work. The report addressed the purpose, potential, perspective and possibilities for the workforce during the COVID-19 economic environment.
PricewaterhouseCoopers has recently completed a CFO Pulse Survey, which gathered opinions from 150 international finance executives. More than 82% of multi-territory respondents reported that COVID-19 had a significant impact on their business, while 32% expected to engage in layoffs, and 52% of respondents expected productivity losses.
“As the world is faced with these widespread economic challenges, it is essential that leading organizations and their representatives take charge by raising awareness and proposing solutions. There is a general consensus among experts about several strategic areas that are recommended for recovery: focus on rebuilding operations and recuperating revenue, rethink the organizational infrastructure, and accelerate the adoption of technology. Only by designing novel business models can we rebuild the global economy and reshape the business ecosystem for future generations,” Prof. Singh said.
Baybars Altuntas explains a hyper connected digital world comment; “WBAF has taken an active role in this global pandemic. As an affiliated partner of the G20 Global Partnership for Financial Inclusion (GPFI), the World Business Angels Investment Forum has submitted a comprehensive policy recommendations report to the G20 leadership in order to alert policymakers about the urgent needs of start-ups.
“We are convinced that we will be able to present a better road map of post-pandemic times for startups, scaleups, entrepreneurs, SMEs and investors if a greater emphasis is placed on knowledge, which is central to the transition debate to a ‘new normal’. We believe that simply keeping physical distance, washing hands, and staying at home is not enough to solve the challenging problems that entrepreneurs and the young generation will face after COVID-19 itself ceases to be a problem. We need better policies that are developed in the light of knowledge that can only come from the entrepreneurship and investment ecosystem,” says Altuntas.
He however, stated, “Entrepreneurs who are quicker to read the changing customer behaviour will take a more active and profitable role in the post-pandemic business environment,” Altuntas said.
Among other things he listed are business transformation, Digital transformation and traditional money, making its way to becoming smart money in the post covid-19 era.
In his recommendations, he enumerated expectations from government as a response to Covid-19 which include developing the digital infrastructure of their communities such as provision of computers to ease online education, acceleration of internet speed, fintech, healthcare, and creating smart cities as a response to COVID-19.These according to him will all lead to a better digital transformation of communities, better healthcare systems, more financial inclusion and more equal opportunities in education. “
“We believe that freedom of speech, human rights and gender equality are three important components of creating a healthy environment for citizens, which in turn opens the way for creative thinking. We believe the world of post-pandemic times will need more support from citizens with creative ideas if we are to turn the COVID-19 pandemic into long-term social good,” Altuntas said.
“As Executive Chairman of the World Business Angels Investment Forum, I encourage G20 leaders, policymakers, academics, global thinkers, entrepreneurs and investors to consider developing a new way of thinking.”
Hauwa Yabani is the WBAF High Commissioner for Nigeria. In her assessment of the challenges and impacts caused by the Covid-19 pandemic in Nigeria, she, unequivocally stressed need to utilise the various emerging transaction channels available.
“With an economy that is highly dependent on global crude oil demand for foreign exchange and government revenue, the crash in crude oil prices has devastated public finances, further exacerbating the situation. The resort to state-wide lockdowns to control the spread of the virus has led to a major slowdown of economic activities. The fragility of the health system has been exposed and employers are actively pursuing cost-cutting measures, including reducing remuneration and relieving staff of their jobs. While the public isolation centres for COVID-19 positive patients are yet to be overwhelmed with a relatively low level of fatalities recorded thus far relative to the population, the same cannot be said on the situation of the economy.
“While times remain tough for start-ups, the crises have created opportunities for evaluation and optimisation for the post-COVID-19 reality. Start-ups that are resilient, repositioning technology as a major enabler, and participating in various capacity building programs are increasing their chances not only of survival but also of attaining sustainable growth. Start-ups in some sectors such as the health sector, logistics and other essential services have seen spikes in the demand for their products or services, but have struggled to meet this demand due to the corresponding funding requirements which are not readily accessible. It is not surprising that some start-ups have had to fold up while others are grappling with appreciating the importance of digital literacy, establishing online presence to retain or gain new customers, and utilising the various emerging transaction channels.
“The general expectation in Nigeria is that the COVID-19 pandemic will eventually wither, as the Ebola, Zika, and Severe Acute Respiratory Syndrome (SARS) viruses have in recent years. However, the socio-economic impact on the economy, especially on the start-up ecosystem, will remain for long after especially for those that fail to adapt to the new normal. It is a time for optimistic pragmatism,” concludes Yabani.
