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Afrinvest Sees Fortunes in MTN, Airtel Stocks

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Analysts at Afrinvest (West Africa) Limited have made case for investing in the shares of MTN Nigeria Plc and Airtel Africa Plc, saying their current prices are undervalued.

Afrinvest Sees Fortunes in MTN, Airtel Stocks

In report , Afrinvest said the telecommunications sector in Nigeria remains the fastest growing, the most resilient and the largest contributor to the economy’s growth.

They noted that despite this, the sector is not at its full capacity yet, given weak broadband penetration at 37.8 per cent and the huge prospects for mobile money under the right regulatory framework.

They noted that these opportunities drive their optimistic outlook for the sector despite weak macroeconomic conditions.

According to the analysts, the major pressure point for the industry has been regulation, with NCC’s heavy regulatory fines and policies to ensure fair competition restraining the growth of some major players.

“ Similarly, regulation has restricted the expansion into other business lines with strong prospects such as financial services, unlike in markets like Kenya and South Africa. We believe the speed and flexibility of regulation would shape the trajectory of growth and investment in the sector,” they said.

They noted MTNN and Airtel Africa Plc have market share of subscribers at 37.3 per cent and 27.2 per cent respectively.

The two companies have also continued to invest in telecommunications infrastructure to boost capacity and deliver superior services to customers, with annual capital expenditure of about N617.4 billion and N580.7 billion respectively over the past three years.

“With regulators loosening previously rigid rules and providing to telcos an even better opportunity to deliver financial services, we see another pathway for strong growth reminiscent of historical levels in the medium-term. The immediate worry is the unprecedented economic crunch brought by the COVID-19 pandemic worldwide, which could affect 2020 earnings. However, the industry is expected to remain resilient as the digital economy has boomed during the lockdown implemented to fight the pandemic,” Afrinvest said.

It said that in its analysis shows that that MTNN (10.6x) and Airtel Africa (4.0x) are undervalued with an average P/E multiple of 7.3x compared with BRICS markets such as Brazil (11.6x), Russia (13.3x), India (13.4x), China (48.5x) and South Africa (12.5x).

“Put together with our positive outlook for the sector over the medium-term, we believe the opportunity is attractive. Based on our valuation of MTNN and Airtel Africa Plc, we arrived at a target price (TP) of N147.67 and N419.53 per share respectively, compared to N115.00 and N328.70 in that order as at yesterday.

 


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Dufil Takes Donation of Indomie Noodles Cartons to Vulnerable Communities in Abuja and Environ

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In line with its commitment to provide critical support to indigent members of communities around the country in the face of the ongoing economic challenges, Dufil Prima Foods Limited, makers of Indomie Instant Noodles, in partnership with Golan Helps Abuja Food Bank Initiative (GHAFBI) and Meluibe Foundation on Wednesday, April 17 distributed Indomie noodles cartons to vulnerable communities in Kuje and Kubwa Local Government Areas in Abuja.

With the goal of alleviating hunger and supporting communities across Nigeria, Indomie Instant Noodles has committed to donating a substantial quantity of noodle packs to various NGOs working tirelessly to address food insecurity.

These organizations play a crucial role in reaching remote and underserved areas, ensuring that nutritious meals reach those who need them most.

“We are deeply committed to making a positive impact in the communities where we operate,” said Olusola Olayinka Idowu OON, former Permanent Secretary, Budget and National Planning, and the CEO/Founder of GHAFBI.

“At GHAFBI, we believe that everyone deserves access to wholesome and nourishing food. Our partnership with Dufil Prima Foods to donate Indomie Noodles packs is a big step towards addressing food insecurity and supporting vulnerable communities in Abuja”, said Idowu who was also the former National Conveyor, UN Food System Dialogues in Nigeria.

Speaking in the same vein, Obialunanma Nnaobi-Ayodele, Executive Director, The Meluibe Empowerment Foundation, expressed her gratitude to Indomie Noodles for the partnership. “Our vision as an NGO is to change the world one step at a time, by providing relief and support to vulnerable communities.

This is achieved through collaborations and partnerships, one of which is what we have done with Indomie Noodles. We remain grateful for their support through this food relief initiative”, she said.

By partnering with NGOs, Indomie Instant Noodles works closely with local leaders and community heads in directly engaging with rural communities to distribute noodle packs and provide immediate relief to families facing hunger and ensuring that food assistance reaches those who are most in need, especially in hard-to-reach areas.

“We are grateful for the opportunity to collaborate with NGOs and community leaders to make a meaningful difference in the lives of people facing food insecurity”, said Temitope Ashiwaju, Group Corporate Communications and Events Manager, Dufil Prima Foods Limited. “Together, we bring hope, love and relief for all”.

The community leaders and some of the beneficiaries also expressed their immense gratitude to Indomie for the support, stressing the impact the products donated will have in alleviating hunger in their communities.

Speaking at the outreach centre, His Royal Highness, Muhammed D. Jibril, Community Leader of Gbazango Community in Kubwa Local Government Area said: “I am very grateful to Indomie Noodles for coming to our aid in these challenging times. I pray for more expansion and growth for the business and may God bless Indomie Noodles”.

Other communities who benefited from the product donations include Wunmi, Tondo, Godoji and Shazhi communities in Kuje Area Council of Abuja.

Dufil Prima Food’s donation of Indomie Noodle packs underscores its commitment to corporate social responsibility and its dedication to supporting communities in need. By providing essential food relief, Dufil Prima Foods is contributing to the well-being and resilience of vulnerable populations in Nigeria.

Indomie Instant Noodles remains dedicated to bringing joy to mealtimes and making a positive impact in communities around the world.


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Empowering Nigerian Retail: The Promise of Pay on Delivery

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E-commerce in Nigeria has evolved exponentially in recent years, transforming the retail landscape and reshaping consumer habits. From the early days of skepticism and distrust to today’s thriving online marketplaces, the journey has been marked by innovation, adaptation, and perhaps most importantly, the establishment of trust and security between buyers and sellers. At the core of this transformation, Pay on Delivery (PoD) has emerged as the unsung hero of e-commerce.

The premise is straightforward: customers could place orders online and pay for their purchases only upon receipt. This innovative approach not only addressed concerns about security but also provided tangible reassurance to hesitant buyers. In countries like India, Nigeria, and Indonesia, where a significant portion of the population remains unbanked or underbanked and where distrust in online transactions and fraudulent activities were once rampant, Pay on Delivery has emerged as a lifeline for both consumers and businesses. Many consumers were understandably hesitant to part with their hard-earned money before receiving their desired goods. Pay on delivery bridges this trust gap, offering reassurance to buyers and empowering them to transact with confidence.

In Nigeria, despite the adoption of a wide range of electronic payments, cash is still king. The results of a survey conducted in 2021 show that cash remains the dominant payment method, reflecting the ongoing preference for tangible transactions over digital ones. In addition, a recent report by ongoing preference for tangible transactions over digital ones. In addition, a recent report by Oxford Business Group found that 70% of Nigerians prefer to pay with cash on delivery, while 28% use credit or debit cards, and only 12% use mobile money platforms. This has challenged e-retailers, and some companies like Jumia, to adapt by prioritizing cash-on-delivery options to cater to this consumer preference.

The Promise of Pay on Delivery in Nigeria

With consumers in mind, Jumia, the leading e-commerce platform in Nigeria, has made Pay on Delivery a cornerstone of its business model. Understanding the local market dynamics and the importance of trust and convenience, the company has invested heavily in ensuring a seamless Pay on Delivery experience for its customers.

One of the key benefits of Jumia’s Pay on Delivery service is its flexibility. Customers have the option to inspect their purchases before making payment, ensuring satisfaction and reducing the risk of fraudulent transactions. This added layer of security not only enhances the overall shopping experience but also builds long-term trust and loyalty among customers.

Moreover, Jumia has implemented rigorous quality control measures to ensure that products meet customer expectations upon delivery. This includes partnering with reputable brands and implementing stringent verification processes to prevent counterfeit goods from entering the marketplace. By prioritizing customer satisfaction and product quality, Jumia has solidified its reputation as a trusted online retailer in Nigeria.

Beyond enhancing trust and security, Pay on Delivery has also played a crucial role in driving financial inclusion in Nigeria. By providing an alternative payment method for those without access to traditional banking services, Jumia has expanded the reach of e-commerce to a broader segment of the population. This not only benefits consumers by providing greater access to goods and services but also stimulates economic growth by fostering entrepreneurship and driving demand for products and services.

In all, the future of e-commerce in Nigeria looks promising, with Pay on Delivery poised to remain a key enabler of growth and expansion. As technology continues to advance and consumer preferences evolve, innovative solutions like Pay on Delivery will continue to drive the transformation of the retail landscape, empowering Nigerian consumers and businesses alike.

 


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Verra Certifies d.light’s Clean Cookstove Projects in Sub-Saharan Africa

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A series of pioneering projects by d.light, the global provider of transformational household products and affordable finance for low-income households, to distribute 600,000 energy-efficient clean cookstoves in Kenya, Nigeria, and Uganda have been officially certified by global verification body Verra.

This certification confirms the d.light projects as trusted, verified sources of high-quality carbon credits in the voluntary carbon markets (VCMs).

The d.light projects aim to simultaneously reduce carbon emissions, tackle indoor air pollution, and reduce deforestation through the sale of highly efficient biomass cookstoves subsidized by the revenues from the sale of carbon credits.

Since their launch in late 2022, the projects have positively impacted more than one million lives and are projected to transform more than three million lives by 2025.

Commenting on the news, Karl Skare, d.light’s Chief Product and Strategy Officer, emphasized the projects’ positive impact, “With these projects, we’re not just addressing environmental concerns but also enhancing quality of life for millions.

“Each project underscores d.light’s commitment to practical, innovative solutions that address both environmental and social challenges, as part of our mission to transform the lives of one billion people by 2030.”

Each year, domestic cooking emissions contribute more than two percent of total global GHG emissions and up to 25 percent of anthropogenic black carbon emissions.

Highly energy-efficient cookstoves solve this problem by reducing biomass use by up to 70 percent compared to traditional cooking methods, cutting emissions of both carbon dioxide and black carbon.

The d.light projects are expected to reduce emissions by up to 12 million tons, contributing to climate change mitigation. These emissions reductions will be registered as carbon credits in the voluntary carbon market.

As well as reducing emissions, clean cookstoves are also a benefit to public health. According to the World Health Organisation, exposure to smoke from cooking fires causes an estimated 3.2 million premature deaths worldwide each year and is still one of the predominant causes of pollution-related illness and death in Africa.

In Uganda, for example, less than one percent of the population has access to clean cooking, household air pollution is the one of the largest risk factors for death and disability.

In addition, switching from traditional three-stone open fires to cleaner, energy-efficient cookstoves significantly reduces deforestation and reduces threats to wildlife and biodiversity caused by habitat loss.

Skare explained, “By subsidizing energy-efficient cookstove costs through carbon financing, d.light makes clean cooking accessible to more households, which in turn leads to healthier living conditions and conserves natural resources as well.

“Our projects in Kenya, Nigeria and Uganda are models of how sustainable investments can yield multiple co-benefits, aligning with global efforts to combat climate change and also promoting socio-economic development.

Skare added, “d.light now has projects certified by both Gold Standard and Verra, the world’s two leading certifiers of carbon credits. Organizations looking for ways to offset their own emissions can be confident that when they purchase carbon credits in d.light’s clean cooking projects in sub-Saharan Africa, they are investing in transformative initiatives that reduce harmful emissions, improve people’s health and quality of life, and help conserve the environment as well.”

 


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