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Rocket Internet Trims Losses, Increases Debt Buyback

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e-commerce investor Rocket Internet reported progress on Thursday in cutting losses at its main start-ups with three set to generate profits by the end of 2017, while its shares were lifted by a plan to buy back convertible bonds.

Rocket Internet shares, which have been hit by concerns about mounting losses and cuts to the valuation of some of the company’s leading start-ups, were up 10.4 percent, but were still down a quarter on the year.

Finance chief Peter Kimpel said Rocket was still working towards a goal of a public listing for one of its 10 main start-ups in food delivery, fashion and home furnishings in the coming months, but said timing would depend on market conditions.

Rocket was forced to pull the listing of its HelloFresh recipe ingredients business last year, but markets have become more receptive recently to technology flotations, with rivals such as Takeaway.com and Blue Apron preparing to go public.

Along with HelloFresh, Rocket’s other most likely candidates for a listing are seen as food site Delivery Hero and emerging market ecommerce firm Global Fashion Group (GFG), which reported last week it had managed to stem its losses.

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Rocket did not publish any figures on Thursday for Delivery Hero, the second-biggest in its portfolio, but Kimpel said it would give more information in due course. He also declined to comment on a recent funding round for the business.

“They are doing what they are supposed to be doing. Bringing companies to profit,” said Berenberg analyst Sarah Simon, who has a “buy” rating on the stock.

Kimpel said a decision to spend up to an additional 85 million euros on convertible buybacks by Sept. 30, 2017 was taken because Rocket now felt it had “excess capital”.

Rocket, which listed on the Frankfurt stock exchange in 2014, saw its shares tumble in July 2015 when it said it would sell 550 million euros worth of convertible bonds. In February, it said it would buy back up to 150 million euros of them.

Rocket reiterated a target set a year ago to turn three of its 10 main start-ups profitable by the end of 2017, pointing to smaller losses at home furnishings site Westwing and at GFG.

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Aggregate first half revenue rose 32 percent to 1.043 billion euros ($1.17 billion), compared to the 34 percent gain achieved in the first quarter as the rapid pace of expansion at HelloFresh, Rocket’s biggest investment, slowed.

Neil Campling, tech analyst at Northern Trust Capital Markets, said that was a major concern: “It would appear that the focus on improving profitability (or rather, less losses) is dragging on growth.”

Earlier this month, Rocket reported a first-half consolidated loss of 617 million euros, mainly due to impairments on its GFG stake. On Thursday, it also said that figure included write-downs on its stake in Latin American ecommerce site Linio.

Rocket said it had decided against participating in a funding round for Linio involving Swedish investor Kinnevik , which cut the valuation of the business to 150 million euros from a previous 370 million.

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Kaigama,Catholic Archbishop of Abuja Warns against Misuse of AI

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Ignatius Kaigama, Catholic Archbishop of Abuja, has warned that the misuse of artificial intelligence (AI) could pose serious risks if technological innovations are not guided by strong ethical principles.

Kaigama,Catholic Archbishop of Abuja Warns against Misuse of AI

Artificial intelligence is a branch of computer science focused on creating machines or software capable of simulating human cognitive processes.

Kaigama gave the warning on Sunday during his homily at St. Anthony Mary Claret Pastoral Area, Zuba, in the Federal Capital Territory,

He said that while artificial intelligence has enormous potential to improve lives, its irresponsible use could have harmful consequences.

Citing the teachings of Pope Leo XIV, the Archbishop said scientific and technological advances should serve humanity, uphold human dignity and promote the common good.

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“We witness the misuse of human freedom, the unethical application of science and medicine, and now, in Artificial Intelligence,” he said.

The Catholic prelate also warned against what he described as an increasing pursuit of material wealth at the expense of moral values, saying greed and the love of money continue to contribute to many of society’s problems.

According to him, the excessive pursuit of wealth has diverted many people from the values of truth, justice and service, weakening the moral fabric of society.

 

 

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TeKnowledge, Equinix Partner to Advance Nigerian Digital Infrastructure

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TeKnowledge and Equinix announced a partnership to accelerate secure hybrid and multi-cloud adoption and enable AI-ready digital infrastructure across the region.

Nigeria’s digital transformation is accelerating rapidly, with the digital economy being a significant contributor to the country’s gross domestic product (GDP).

As demand for cloud services, AI adoption, digital payments and data-driven innovation continues to accelerate across West Africa, the partnership is positioned to advance the region’s digital transformation.

By combining Equinix’s in-country and global data centre infrastructure and secure interconnection capabilities with TeKnowledge’s expertise in designing, deploying and managing AI, data, customer experience and cybersecurity solutions, organisations can accelerate innovation while maintaining data residency and sovereignty requirements.

Together, the organisations empower enterprises and government institutions to bridge the gap between digital ambition and execution through secure, high-performance digital environments built on local infrastructure and delivered by local talent.

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Speaking, CEO and President, TeKnowledge, Aileen Allkins, said: “Organisations across Africa are increasingly looking to modernise their infrastructure while maintaining the performance, security, and compliance required to support growth.

Through our partnership with Equinix, we are combining world-class digital infrastructure with deep local expertise to help customers accelerate cloud adoption, strengthen resilience, and unlock new opportunities through AI and emerging technologies.”

Managing Director of Equinix West Africa, Wole Abu, expressed delight at partnering with TeKnowledge to bring together Equinix’s globally interconnected platform, spanning over 280 data centres and 10,000 customers worldwide.

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New NIMC Act Strengthens Data Protection, Privacy – Director

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Uche Chigbo, coordinating director of Operations, National Identity Management Commission, (NIMC), has said the newly enacted NIMC Act strengthens data protection and privacy, expands identity coverage to include everyone in Nigeria and Nigerians in the diaspora, and provides the legal framework for a secure and trusted digital identity ecosystem.

New NIMC Act Strengthens Data Protection, Privacy - Director

She said the new law replaces the 2007 NIMC Act, which had become outdated due to rapid technological advancements, evolving cybersecurity threats, the growth of the digital economy, and the enactment of the Nigeria Data Protection Act.

According to her, the updated legislation better positions the Commission to deliver Nigeria’s digital identity agenda and improve access to government and private sector services.

“The Act itself has taken in a whole lot of things to make sure that NIMC is well-positioned to be able to deliver on the identity agenda and program of Nigeria. The area of universal coverage was expanded within the Act so that NIMC can enroll everybody that is within the soil of Nigeria—male, female, children, whether they are IDPs or orphans or whatever it is, and even Nigerians in diaspora.

“There is quite a lot within the Act that over the few days and weeks, even with my Director-General’s courtesy visit, we are trying to sensitize and educate the general public, and also bring awareness to this new Act so that people will know what are the rights that exist within it, what are the obligations, what are the stronger enforcement and penalties that has also been expanded within the Act, and then what are also the regulatory autonomy that has been given to NIMC to make sure that they drive the digital identity ecosystem in Nigeria,” she explained.

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“There’s a lot of provisions and changes with the new Act. Um, the NIMC 2007 Act has been operating for close to 19 years now. So, we can see that, um, you can actually say it’s almost obsolete. And then with a lot of technological advancements in the world now, with the enactment of the Nigeria Data Protection Act, and then with also a lot of evolving security challenges, cybersecurity challenges, as well as the ever-growing digital economy, it became very necessary that a comprehensive review of the NIMC Act should be done.

So, that 2007 Act has been repealed and a new NIMC 2026 Act is in place,” she explained.

Chigbo clarified that the National Identification Number (NIN) is Nigeria’s unique identifier and the only valid means of identification for accessing government services.

She added that it enables secure identity verification and improves access to services.

“NIN has been designated as the unique identifier in Nigeria and then by the government of Nigeria establishing it as the only valid means of identification for assessing government services. So, NIN, it’s positioned to be a valuable tool for empowering citizens and legal residents to facilitate access to service delivery in Nigeria. And it’s also a tool for people to be able to prove their identity as they go about their daily businesses,” she said.

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Speaking on identity harmonisation across government agencies, Chigbo said NIMC is integrating identity databases to enable Nigerians to access services seamlessly using the National Identification Number (NIN), while other agencies continue to issue functional identities for specific purposes.

“There’s a distinction between a foundational identity and a functional identity. NIMC provides the foundational identity, which answers the question, ‘Who are you?’ Are you a Nigerian or a legal resident? Who are you? That’s what NIMC is providing. All these other agencies that you have mentioned, they provide functional ID, which is an ID that relies on the foundational ID, where they have established who you are and then they are now trying to answer the question, ‘Are you now eligible to have these services? Are you now eligible to benefit from this transaction or scheme?’ So, those are two different distinctions.”

However, Chigbo said NIMC’s mandate is to harmonise and integrate identity systems across government, with the amended Act designating the Commission as the sole repository for biometric data.

“However, NIMC mandate is to make sure that we harmonize and integrate with all these agencies so that you’re one and the same person in any of the databases or registries that you have. The Act that has been expanded and amended also positions NIMC as the only repository for biometric data capture so that we can have effective identity management and coordination in Nigeria.

“So, that harmonization is already happening, the integration is already happening,” she stated.

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She also disclosed that NIMC has introduced an online modification portal that allows Nigerians to begin the process of correcting or updating their personal information from the comfort of their homes or offices.

“But also, NIMC we have a modification portal that enables you to sit in the comfort of your home or office to be able to start the process of correction or updates of your data. We already have a self-service modification portal that allows you to make corrections,” she disclosed.

On the cost of obtaining a NIN, Chigbo clarified that enrolment and issuance of the National Identification Number are free.

She, however, noted that some other identity-related services attract approved fees, which are published on the NIMC website and paid electronically through the government Remita platform.

“Enrollment for the issuance of the National Identification Number, NIN, is free. There are other services, identity services that NIMC provide. Those ones have their charges, and those fees and charges are publicized on the NIMC website so that people can see what those charges are. And NIMC does not collect cash. Our transactions and the charges are paid electronically through the government Remita platform,” she said.

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