Africa’s largest economy has received a positive assessment from Standard and Poor&#8217;s (S&amp;P) Global Ratings, which upgraded the country’s credit outlook from negative to stable. The ratings agency cited the new government’s reform agenda as the main reason for the improved outlook.



Nigeria has received a positive assessment from Standard and Poor&#8217;s (S&amp;P) Global Ratings. The ratings agency has upgraded the credit outlook of Africa’s largest economy from negative to stable. The new government’s ambitious reform agenda has been cited as the main reason for the improved outlook, with S&amp;P keeping the sovereign rating at B-, which is six levels below investment grade.



This change in outlook comes after President Bola Tinubu, who took office in May, announced a series of bold policy moves to address some of the long-standing challenges facing the oil-rich nation. On inauguration day, Tinubu scrapped costly fuel subsidies, which have drained public finances and distorted the energy market.



He subsequently approved the suspension of the Central Bank of Nigeria (CBN) governor, Godwin Emefiele, with Folashodun Shonubi appointed as acting head. These moves have allowed for a more flexible exchange rate regime, allowing the naira to depreciate and unifying the multiple official and parallel rates that created distortions and discouraged foreign investment.



“The new government is moving ahead with a series of reforms that could, if delivered, benefit growth and fiscal outcomes,” analysts Ravi Bhatia, Samira Mensah, and Juili Pargaonkar reportedly wrote in a statement. “We believe these measures will gradually benefit Nigeria’s public finances and its balance of payments.”



Iheakanwah Felix Arinzeh,&nbsp;a financial expert and doctor of business administration, tells FORBES AFRICA: “I can deduce that the upgrade is a vote of confidence in Tinubu’s ability to deliver on his promises. Recall that Tinubu has made economic reform a top priority of his presidency, and the upgrade suggests that S&amp;P believes he is on the right track.



“Expectedly, the upgrade of Nigeria&#8217;s credit outlook is likely to have a number of positive implications for the country. It will make it easier for Nigeria to borrow money from international lenders, which will help to finance the government’s investment plans. It will also make Nigeria more attractive to foreign investors, which will help boost economic growth.



Arinzeh believes that the S&amp;P credit outlook upgrade is also a major boost for Tinubu’s presidency and his planned reforms.



“It is a sign that the international community is supportive of his efforts to improve Nigeria&#8217;s economy, and it will make it easier for him to implement his plans.”



Nigeria still faces significant economic and social challenges, such as high fiscal spending, low revenue mobilization, high inflation, weak governance, and security issues. However, the ratings agency projected that the elimination of the petrol subsidy and the securitization of the ways and means advances will generate fiscal savings of around 2.5% of Gross Domestic Product (GDP) in 2023.



S&amp;P also warned of potential geopolitical risks stemming from the recent coup in neighboring Niger, where a military junta overthrew President Mohamed Bazoum on July 26. Niger is a key partner of Nigeria in the fight against militants in the Sahel region, where groups such as Boko Haram have been active for years.



The coup has raised concerns about the stability and security of the region, as well as the prospects for democratic transition and regional cooperation.

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S&P Global Ratings Strengthen Nigeria’s Credit Outlook

Samsung has brought mobile payment solution, Samsung Pay, to South Africa. The innovative payment service is available to ABSA and Standard Bank cardholders on both Visa and MasterCard platforms. Security comes first with 5 layers, including fingerprint and iris recognition as well as tokenization to secure all your cards. It’s well on its way to become the new way to pay.

Smartphones have truly become an extension of who we are. It is safe to say that the first thing most people do when they wake up is to look at their mobile phones to check feeds, check messages, just generally check everything, in an always connected world. With Samsung Pay, Samsung South Africa aims to make your eligible Galaxy smartphone a tool that enriches your daily life.
As one of the world’s largest smartphone and technology innovators, Samsung’s core motivation behind developing and implementing Samsung Pay is to give South Africans a smart way of banking at their fingertips, with the security to give them the peace of mind to use it.
Loading cards from participating banks is as easy as scanning and verifying them and adding your iris, fingerprint or pin code authentication.  Once set up, it’s so easy to use. Simply swipe up from the home screen of any eligible Samsung smartphone, no need to search for the app, then select the card, enter your security verification and tap or swipe your phone on the speed point.
Tokenisation is the key to protecting consumer information when it comes to electronic payments. To achieve this, all sensitive account information is replaced with what Samsung refers to as a token. The token replaces information with a series of numbers that are card and mobile number specific. Payments are made using the token which means that this payment method adds another layer of digital security so that information is never vulnerable even in cases of theft. The token can be deactivated without going through the process of cancelling the account.
Cardholders are given a mobile payment solution that will not only benefit the digital footprint in South Africa but will make banking a less tedious process. Head of Digital Solutions for VISA in sub Saharan Africa, Geraldine Mitchley, says Samsung Pay is a life changing payment solution.
“Considering the number of smartphone users in South Africa, it is expected to reach over 25 million by 2022, we are seeing that the phone is the one item people will always have with them and VISA supports payment solutions that fit people’s changing lifestyle,” she says.
How does it work?
Samsung Pay can be used wherever Absa or Standard bank debit or credit cards are accepted on both VISA and MasterCard platforms.  The first step is downloading the app from the Google Play Store and registering your cards with your password method of choice. Then it’s simply a matter of swiping up from the home screen and then swiping or tapping their Samsung Galaxy smartphone at participating outlets. The Samsung devices that currently support Samsung Pay include the Galaxy Note 9, Note 8, S9+, S8+, S8, S7 Edge, S7, A8 and A7( 2017 edition). The 2017 edition of the Galaxy A5 will be compatible in September 2018.
No terminal updates will be needed by operating merchants in order to accept payments. Payments are made without any extra cost; the only fees that apply are banking fees.
Samsung Pay truly is innovation at its best, so get Samsung Pay, and make your next payment an adventure of innovation!
&#8211; Gypseenia Lion

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“Samsung brings smart, effortless payments to South Africa”

When I meet Julian Kyula in his office at the penthouse of the International Life House, smack in the middle of the bustling Nairobi central business district, I cannot make up my mind whether I should address him as pastor or by his surname because rarely do you meet a church minister who doubles up as a shrewd businessman.
Obviously exhausted after a long flight from New York, Kyula tells me he needs to beat the annoying Nairobi traffic jam to be home with his family in around an hour, so we get down to our interview.
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In the world of mobile commerce Julian Kyula needs no introduction, he is the co-founder and CEO of MoDe, a company he describes as disruptive by nature. MoDe is a nano-finance company that lends credit, as low as 50 cents, profitably through mobile phones.
“When you are in need of cash at 3AM and you cannot access the ATM, or you run out of internet bundles somewhere in Africa, or want a bus coupon or need to buy a day’s worth of electricity in a prepaid facility, that is when MoDE steps in,” he says.
For a company in its third year of existence, having successfully completed its first financial transaction in September of 2010, MoDe has done admirably in the mobile money arena. By June this year, the company was handling 500 million transactions, each ranging from 50 cents to $10 and serving 105 million customers across the 17 African countries it operates in and recording over $750 million in sales revenue since its inception. MoDe is also making inroads in the Asian markets, making it among the top global FinTech companies.
“We have opened new offices in Delhi and Mumbai and we plan to go for the American market by opening offices in the United States in 2014,” says Kyula.
“We believe we are at the forefront of building one of the largest FinTech businesses globally and what is so exciting is that the next big thing is coming from Africa. This will boost our efforts as we seek to deepen partnerships with the United States and Europe as we chase for opportunities in that market,” he says, struggling to hide the smile on his face.
MoDe has partnered with the giant mobile telephony service provider Airtel group, and MTN in the African market, with intentions to hit 13 more markets before the end of the year.
Whenever conversations about the African telecoms sector are held, Kenya always features largely due to the success of M-Pesa, the mobile money transfer system. However, the Kenyan telecoms sector is one that has evolved faster than the legislation designed to regulate it and Kyula knows this too well, observing that when he started there were all kinds of licenses required by the government, most of which were unnecessary.
“Legislation should enable business, it shouldn’t be an impediment,” he says.
Getting over the challenge of cumbersome regulations was the first hurdle in Kyula’s quest at providing nano-finance. Next was to convince a mobile service provider with a significant subscriber base to take a chance on a little-known outfit.
Airtel was an obvious choice for Kyula despite it being the second largest service provider in Kenya after the dominant Vodafone powered Safaricom. Airtel has an impressive subscriber base in West and Central Africa and it has a footprint in India and other emerging markets, exactly what Kyula was looking for.
“If you want to build something that is global you must work with a partner who can take you outside the continent and Airtel was willing to do that for us,” he says.
Looking at the dynamic nature of mobile money innovations in the recent past, one would wonder just how relevant a company like MoDe will be in the next five to ten years.
“We do understand that problems surrounding the access of credit in Kenya, Singapore, Vietnam or America are similar and we are preparing ourselves by spreading our geographical risk by being in as many markets as possible.’’
Kyula’s strategy seems to be working for the company.
“Look, when you stop innovating you begin to die,” he says as he moves towards a trophy the company won at the IBM global entrepreneurs award.
In 2012, Kyula was IBM’s Africa Entrepreneur of The Year, the IBM Latin America Entrepreneur of the Year as well as the recipient of the African Leadership Network Of Top 12 Companies.
Kyula’s share in MoDe stands at around $85 million, however, his total investment portfolio and companies in agriculture, equity investment, and real estate seated on his firm Kyula Holdings, give him a total net worth of $115 million.
So when Kyula, or Coach as he is fondly referred to by his employees, is not jumping into planes to close deals halfway across the world he is busy preaching at his local church called The Purpose Centre. One would wonder how he is able to balance both worlds.
As opposed to a businessman who moonlights as a pastor, Kyula claims to be a pastor who moonlights as a businessman. He insists that church and business are two worlds that can complement each other if the right balance is achieved.
“My best decision and my worst mistake is failure. I was naïve when I was much younger to think that when you are upset with someone you go ahead and compete with him,” explains Kyula.
“There is no better school than failure, you just have to pick up the pieces, take time to recover, reassess, reconfigure, rest and revive. These are my five ‘R’s of life.’’
For an entrepreneur who has experienced significant success and wealth, you may wonder what is left on Kyula’s bucket list.
“The one thing that I want to be able to achieve is to shift the dimension of how we look at those at the bottom of the pyramid. I would like to innovate something that shakes the way businesses look at people that are underprivileged. I want to be able, in my lifetime, to have a million children in Africa going to school because I lived,” he declares.
To this I say amen.

Tag: Credit

FORBES AFRICA SOCIAL MEDIA

S&P Global Ratings Strengthen Nigeria’s Credit Outlook

“Samsung brings smart, effortless payments to South Africa”

A Pastor Disruptive By Nature