Jemimah Iwok published in News

Electricity Tariff Increase in Nigeria: How It Affects Businesses

Dear Business Owner in Nigeria,

Are you aware that come April 1st, 2020, you’ll be paying a lot more for electricity  than you presently do?  If you aren’t, there’s been an electricity price increase in Nigeria. This is no “April Fool” Prank. It’s the sad reality.

In the tariff review clarification notice from the Association of Nigerian Electricity Distributors (ANED), the Discos said the tariffs would change from April 2020. “The tariffs shall remain an equivalent as they presently are (i.e. 2015 levels) until April 1, 2020 when there will be an increment to cater for tariff shortfall”. This shortfalls or losses shall be gradually passed on to the buyer until this is fully completed by the end of 2021.

According to the PUNCH newspapers, the Nigerian Electricity Regulatory Commission (NERC), has approved that an additional N8 to N14 per Kilowatt hour, will be added to the present tariff.

LET’S DO A QUICK MATH…

Let’s say you spend an average of N3 per Kwh, and you use, say 12,000 Kwh monthly. That’s 36,000 right? ( Still a lot but what can you do?). Now imagine that an extra N8 is added to the daily cost. That means you’ll pay N11 * 12,000. That’s N132,000 monthly! Wow!

Electricity Tariff Increase in Nigeria: How It Affects Your Business and what you can do about it

As a business in Nigeria, a constant struggle is trying to keep expenses to a minimum. With the unanticipated shoot in the cost of electricity, how are businesses being affected by the increasing cost of this unavoidable business expense?

HOW THIS AFFECTS YOU

  1. Increment in budget for power: Due to the tariff increase, Business owners will be forced to increase the amount budgeted for power. This might negatively affect the running cost of the business.
    Budget for Power
  2. High Running Cost of Buying Fuel: The increase of electricity tariff coupled with the low supply of electricity will lead to an increment of the daily consumption of Petroleum products by Business owners. High running cost of buying fuel
  3. Risk of Folding up: For businesses heavily reliant on electricity, the risk of closure might rear its ugly head. This might in turn, spike up the rate of unemployment.What then can you do, to ensure that this unanticipated electricity tariff increase doesn’t run your business to the ground?Consider Other Energy AlternativesBiofuel

    One of such alternatives is having renewable forms of energy supplying energy consumption demand at a business premises.

    Using the likes of biomass, wind and solar systems to deliver energy can help businesses save on energy bills, as well as help reduce their contribution to climate change.

    Solar Inverters and Bio Fuel might be Cheaper alternatives to the cascading power supply, in the long run. So, why not make some research and see if it’s a viable option?

    Installing a Prepaid Meter

    If you don’t already use one, a pre-paid electricity meter in your work environment may be a way to help you better monitor your electricity spend and usage.

    While this won’t cost you less in terms of cost per kilowatt hour, you’ll be more conscious of your electricity usage, as well as how much it is costing you per day. 

    Prepaid Meter: Alternative for Electricity

 

Limiting your Electricity Consumption

Remember the Warren Buffet Quote: “If you buy things you do not need, soon you will have to sell things you need.”
So, you might need to take a step back and do some analysis. Discard or reduce use of equipment you might not be needing. This will help motivate you to lower your electricity usage and better budget your monthly electricity spend.

 

Know better solutions to dealing with this  Electricity Increase Tariff in Nigeria? We’d love to hear from you! Please leave a comment below!

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Bellafricana published in africa, Articles, News

NEPC restores AGOA visa stamp to exporters

The Nigerian Export Promotion Council (NEPC) has re-introduced the African Growth and Opportunity Act (AGOA) Visa Stamp to exporters to ensure that they participate and benefit more from the Act before it expires in 2025.

AGOA is an act of parliament passed by the United States Congress in 2000. Also referred to as Trade and Development Act, it was meant to assist the economies of sub-Saharan Africa and improve economic relations between the U.S and the region.

AGOA is currently in act until 2025. After completion of the initial 15-year period it was extended by one more decennium, including newly added products. The products newly covered by the legislation include items such as:

  • Agricultural products
  • Apparel and footwear
  • Motor vehicle components
  • Chemicals
  • Wine
  • Steel

So why is this act interesting for you as exporter? AGOA provides Nigerian exporters with numerous attractive advantages in doing international business:

  • Duty-free access for eligible products to USA
  • Significant competitive tariff advantages over non-AGOA countries
  • Encouragement of regional integration and production sharing among beneficiary countries
  • Security of the act ensured until 2025

To be duty-free eligible under AGOA, US customs requires a certificate of origin and an AGOA stamp on a commercial invoice. These documents are needed in addition to the always required documentation for imports. You cannot apply for AGOA certification in the US. It must be done by yourself in Nigeria.

If you want to benefit from AGOA, contact the regional NEPC-office in Lagos via, email [email protected]  or [email protected].

Speaking at the NEPC workshop on AGOA Visa Stamp utilisation in Lagos, the agency’s Executive Director, Mr. Olusegun  Awolowo, said AGOA was also meant to forge stronger commercial ties between Nigeria as well as other qualified African countries and the United States.

Represented by the Deputy Director, National Office on Trade, Mr. Saave Nanakaan, Awolowo said AGOA was meant to help integrate Nigeria and other African counties into the global economy.

 

He said the extension of the scheme to 2025 was because many African economies such as Rwanda and Uganda performed better than Nigeria under the scheme.

Visa Stamp, which was introduced on January 18, 2016, took effect from February 8 of the same year. It was another step to further simplify U.S market access of textiles and garments from AGOA-eligible countries.

Under the process, the Office of the U.S. Trade Representative has directed U.S. Customs and Border Protection to permit importers to submit electronic images of appropriate export visas when claiming preferential treatment for textile and apparel products under the Act.

Textile and apparel goods from an AGOA beneficiary country will only receive preferential duty treatment once a visa arrangement is established. Visas are issued by the government of beneficiary sub-Saharan African countries.

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Bellafricana published in African Food, Events, Exhibitions, News

African Food & Products Conference and Exhibition 2019 by NACC

The Nigerian-American Chamber of Commerce (NACC) is set for its Annual Exhibition & Conference. The 3rd African Food and Products Conference and Exhibition (AFPE) themed ‘Sustainability and Innovation; Pathway to Business Success for SMEs’ is scheduled to hold on Friday 24th May and Saturday 25th May, 2019 at the Grand Ball Room, Lagos Continental Hotel, Victoria Island. Lagos by 9:00 am.

The Exhibition which is aimed at promoting the development of trade, commerce, investment and industrial technological relationships between the public and private sectors of the Federal Republic of Nigeria, Africa and the United States of America will witness the presence of industry expert speakers, market leaders, Trade Promotion Agencies, Venture Capitalists, Seed Investors, Export Houses, Business Clinics, Policy Makers, Franchisors, Franchisees, Produce Merchants, Analysts and Research Professionals, Startup Hubs, Government Regulatory Agencies and will have in attendance the Presidency, Federal Ministers, State Governors, CEOs of Leading Nigerian and Multinational Firms, Captains of Industries, Agencies of the United States Mission amongst others..

The AFPE 2019 will attract SMEs, Start-up business owners, MSMEs, International & local manufacturers, suppliers & distributors of food, beverage, agro commodities, apparel and fashion products, chain stores, independent sellers, business service providers, key decision and policy makers from leading Nigerian, African and American companies showcasing their products/service offerings to visitors, with a view to further promote their products and services to visitors and buyers and increase export sales by maximizing the benefits of the African Growth and Opportunity Act (AGOA).

In 2018, the Event had over 1500 attendees with about 90 Exhibitors from within Nigeria and the United States. This year, over the 2-day period of the event we expect to have over 2,500 attendees from across Nigeria, Africa and the United States, thus presenting a viable opportunity for exhibiting companies to grow their sales, showcase their products to a target audience and strike million dollars international deals.

The 3rd African Food and Products Exhibition will feature a conference session with seasoned industry experts and leaders sharing their knowledge and experience on scaling up productivity, driving profitability and positioning SMEs for sustainability and global competitiveness.

Attendance to the Conference and Exhibition is FREE but registration is required.

Visit afpe.nigerianamericanchamber.org to register.

More information on is available on the event’s website.

afpe.nigerianamericanchamber.org

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Bellafricana published in africa, Events, News

Trade With Africa Summit 2019 Takes Chicago

I was going through my Instagram feed one weekend, when I saw a post that said and I quote ”The world is getting everything it wants from Africa. Is Africa getting everything it wants from the world?” this caught my attention and got me thinking a whole lot, trying to figure out the best way for African businesses to really thrive and enjoy the full potential of all that we offer to the world. I decided to find out who put up that post, at least to understand the reason behind it, that’s when I found out abut the Trade With Africa Summit coming up on the 1st and 2nd of August 2019 in Chicago. This event is powered by Nazaru, a cargo and freight company founded by Toyin Umesiri.

The Trade with Africa Business Summit creates trade linkages by bringing together business leaders and their supporting service providers from Africa and U.S. to engage in dialogue that will catalyze economic growth for both region.

Over the past 20 years, European, Asian and other large economies have established an increasingly heavy presence on the continent of Africa in all major sectors, including Agriculture, Technology and Infrastructure building. They succeeded in this by not only establishing strong partnerships with the African Government but also with the Africa’s business community.

In 2000 President Clinton established the Africa Growth and Opportunity Act (AGOA) to help close U.S. trade gaps with Africa. Although some level of success has been accomplished, trade experts, conclude that there is more room to grow. On the U.S. side there are several trade constraints, including lack of awareness, relevant business data, capacity misconceptions and an information gap. On the African side there is also a lack of information related to U.S. standards, available business partnerships and opportunities for African businesses.

You should definitely plan to attend this year’s edition of the Trade With Africa Summit, if you fall under any of the categories below, or are looking for an opportunity to connect  and network with;

  •  Investors
  • Global Business Leaders
  • Trade experts (export & import)
  • U.S. Government Agencies
  • Policy Makers (U.S. & African)
  • Buyers
  • Technologists & Innovators
  • Service providers with Trade Solutions (i.e. Packaging, Shipping, Transportation, Logistics, Banking e.t.c)
  • Exhibitors with products and or services
  • African Diaspora Community
  • Non-profits and friends of Africa

The benefits of this engagement are multi-fold; For the U.S. based business community it serves to showcase the vast opportunities in Africa while highlighting new regions for exports and imports under favorable trade policies,. It also provides the unique opportunity to discuss with high-level officials current concerns or impediments to doing business. For African Exporters, business leaders and Governments leaders, it will offer an opportunity to promote their country, help expand their offerings under Africa Growth and Opportunity Act (AGOA) to create jobs, and increase investment. For African businesses, it will also provide access to the largest importers, help prepare them to pitch their goods, and open a pipeline that can then be continued through sustainable business partnerships.

I believe that the growth potential for African businesses is huge, and it is time for us to take charge and bridge this gap. Click here for more details of the event.

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Bellafricana published in africa, Articles, Clothings, Fashion, Fashion,

SA textile union welcomes H&M deal with SA designer

The Southern African Clothing and Textile Workers’ Union (SACTWU) has welcomed the announcement today by Swedish global retailer H&M that it will be collaborating with South African designer, Palesa Mokubung, and her label, Mantsho.

On Tuesday, H&M announced its first African collaboration with Mokubung’s label, which was established in 2004 and has since graced numerous runways in Greece, India, the United States, Jamaica, Nigeria, Botswana and Senegal.

Until now, none of the products sold in H&M’s 23 local stores have been made in South Africa.

SACTWU said in a statement that it was a long-standing supporter of Mokubung’s work, citing how the Mantsho label was featured as far back as at its 2008 Fashion Festival held in the cutting room of the Levi Strauss SA factory in Cape Town.

Andre Kriel, SACTWU general secretary, said the union and its clothing, textile, footwear and leather (CTFL) members were looking forward to seeing South African product in H&M’s stores.

“As foreign retailers, like H&M, Zara and Cotton On, have grown their South African footprint, they have increasingly taken market share away from domestic retailers. This has caused a ripple effect in which local factories supplying those domestic retailers are losing orders, and job losses and factory closures are the result,” Kriel said.

“SACTWU congratulates H&M on moving forward with this local sourcing project. The union views this collaboration with Mokubung as the first part of a much deeper collaboration. From SACTWU’s side, to assist H&M with its designer collaboration, the union has helped to ensure that compliant producers manufacture the Mantsho products.”

Mantsho will be available in all South African stores, exclusive flagship stores in the United States, the United Kingdom, France, Spain, Portugal, Netherlands, Belgium, Mexico, Chile and Israel, as well as all H&M online markets from August 15.

Kriel said H&M’s local sourcing project represents the power of constructive social dialogue and the promise such dialogue holds to re-shape some of the harmful components of global trade.

“We look forward to a positive outcome and growing relationship with H&M in which their local sourcing footprint is deepened substantially, where their contribution to employment creation in local CTFL factories is expanded significantly, and where their global reach can be used to showcase South African design and quality, manufactured under decent work conditions,” Kriel said.

This is great news, as this goes to prove that there is hope for more African brands in Nigeria, Kenya, Ghana etc to penetrate the global market through great deals such as this.

This article was originally published on iol.co.za

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Bellafricana published in africa, Articles, Clothings, News, Textiles

Kenyan Company Green Nettle Textile won a major fashion award for making fabric from nettles

Organic fibers made from nettles has bagged a Kenyan company one of the world’s top sustainable fashion prizes.

Green Nettle Textile was this year awarded almost $170,000 as part of the $1.1 million Global Change Award, a fashion innovation challenge initiated by H&M Foundation in collaboration with management consulting firm Accenture and the KTH Royal Institute of Technology in Sweden. Described by some as the Nobel Prize for sustainable fashion, the award seeks to disrupt the fashion industry by choosing early stage ideas and incubating them towards the goal of an environmentally-conscious, circular fashion instead of a wasteful, linear model.

This year, the competition received 6,640 entries from 182 countries, with a tremendous increase in entrances from emerging markets. Nigeria, Ghana, Kenya, and South Africa were among the top 10 nations that submitted entries for the award.

Green Nettle won the award along with four other firms that made expanding children’s clothes (United Kingdom), a biodegradable vegan leather (Peru), a digital system that helps make garments recyclable from sketch to scrap (Germany) besides a toxic-free membrane for outdoor wear (Switzerland). Besides financial support, the winners will also get access to a mentorship program that will take them to markets including Sweden, Hong Kong, and the United States.

[yotuwp type=”videos” id=”zsUfKXHienc” description=”off” effects=”video_box=ytef-grow”]

Using nettles in producing fabric was astute given that the plant grows in Kenya and is used for nutritional and medicinal purposes. After the Kenya Bureau of Standards certified the plant in 2009, farmers in Kenya started betting on its newfound commercial capabilities. Green Nettle Textile is now proving an extension of that dynamism, hoping to grow the stinging plant in barren areas to make an environmentally-friendly alternative to conventional fabric and create income for farmers.

As clothes become cheaper and more disposable, the fashion industry has explored how to create clothes for rapidly growing populations while protecting the planet. The overproduction and overconsumption of fast fashion have especially come under criticism—including how eco-friendly is clothing from the chief GCA award sponsor H&M. There have also been concerns about how much energy and water clothing production consumes, besides how much industrial waste factories release into oceans, rivers and natural habitats. Environmental groups like Greenpeace have, for instance, advocated for companies to change their customers’ mindsets and to design clothes for long life.

In Africa, where there’s a nascent manufacturing and fashion industry, local designers are not just challenging reductive ideas of what makes up “African” fashion but also where to source materials from. Last year, Rwanda raised tariffs on used clothing and footwear from the US as it positions itself to become a significant exporter of clothes. Yet funding has proved critical for these designers and manufacturers, an issue creative funds like HEVA want to change.

To further support companies like Green Nettle, H&M Foundation this year partnered with crowdfunding platform Indiegogo to not only get more people to back the winners but also raise awareness about sustainable fashion worldwide.

This article was originally published on qz.com

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Bellafricana published in africa, Articles, News, Textiles

CBN To Set To Revive Nigeria’s Textile Industry

The Central Bank of Nigeria (CBN) has announced plans to revive Nigeria’s textile industry, unveiling measures that will see the development achieved. To this effect, the CBN has placed a restriction on forex access to importers of textiles and other clothing materials into the country. Henceforth, importers of textile and textile materials will not be able to purchase foreign exchange from banks and Bureau de change as well as other operators in the official foreign exchange market.

The announcement was made by the CBN Governor, Mr. Emefiele, at a meeting with textile industry stakeholders which held in Abuja last week.

“Effective immediately, the CBN hereby place the access to FX for all forms of textile materials on the FX restriction list. Accordingly, all FX dealers in Nigeria are to desist from granting any importer of textile material access to FX in the Nigerian Foreign exchange market.”

According to Mr Emefiele, the restriction will boost the domestic textile industry as well as create jobs for Nigerians. He noted that the apex bank would initially support the importation of cotton lint for use in textile factories, with a caveat that such importers will begin to source their cotton needs locally beginning from 2020.

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Bellafricana published in africa, Events, News

The Tony Elumelu Foundation Entrepreneurship Program 2019 With A Focus On Women Owned Businesses

The Tony Elumelu Foundation has opened its application portal for the 5th cycle of its $100million Entrepreneurship Program, open to all African entrepreneurs. This year, one of the goals is to increase participation and representation from women-run businesses in Africa as well.

Statistics have shown that only about 38% of applications to this program are from women, and the foundation is working hard to increase the number of applications from women owned business.

The program is open to any African who has an innovative business idea or a business in existence that is less than 3 years old in any sector.

If selected, business owners will join the Foundation’s current 4,470 TEF alumni and will receive non-refundable $5,000 seed capital,access to mentors, top-rated business training, access to a network of African entrepreneurs and opportunities for them and their business to share a global stage.

 

For more information on eligibility, funding, judging criteria, and application process, click here or APPLY RIGHT AWAY on TEFConnect here: www.tefconnect.com.

Deadline for applications submission is March 1st 2019

 

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Bellafricana published in africa, Articles, bellafricana, News, People & Culture

African Female Leaders You Should Know : Sahle-Work Zewde

Ethiopia’s parliament has named Sahle-Work Zewde as the country’s first woman president.

In a unanimous vote on Thursday during the second Special Joint Session of Ethiopia’s two houses of parliament – the House of Peoples’ Representatives and the House of the Federation – lawmakers picked the career diplomat for the largely ceremonial role.Continue reading

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