MTN’s fine threatens ties with Nigeria – South African lawmakers

South African lawmakers on Wednesday expressed concerns that MTN Group’s alleged violation of Nigerian laws could hurt trade relations between the continent’s two biggest economies.

Africa’s biggest mobile telephone company was last week fined N1.04tn ($5.2bn) by the Nigerian Communications Commission for failure to cut off users with unregistered SIM cards from its network. Nigeria is MTN’s biggest market.

“It is important for South Africa to increase trade relations with other African countries, but if something like this happens, we get worried about our reputation and the impact that would have on South African companies wishing to expand on the continent,” the head of the parliamentary telecoms portfolio, Mmamoloko Kubayi, told Reuters.

South African firms such as Shoprite and Standard Bank are among the biggest investors in Nigeria. The country accounted for nearly 80 per cent of South Africa’s total trade on the continent in 2012. South Africa’s oil imports account for the bulk of trade.

Talks between MTN and the Nigerian authorities continued on Wednesday, the company said in a statement, and again dismissed speculation that it had reached an agreement on the fine.

Nigeria has been pushing all telecoms operators to verify the identity of their subscribers, on concerns that unregistered SIM cards were being used for criminal activities in a country facing an insurgency by Islamic militant group, Boko Haram.

I think this is a BLESSING IN DISGUISE. AFRICA IS NOT READY TO TRADE WITH AFRICA. This century was termed as "African century or Africa rising".

Unfortunately that wont be the case. I HAVE SAID THIS BEFORE THAT S.A. FIRMS MUST INVEST MORE OUTSIDE AFRICA.
I wish Ghana follows nigeria also and threaten S.A. investors and see who will build their malls and help them in hydro energy

[b]
France woos SA investors
September 23 2015 at 09:03pm
By Peter Fabricius
Comment on this story
Copy of IOL pic budget 2015 rsa currency rands notes in hand AP Photo: Denis Farrell

Johannesburg - It’s usually South Africa seeking investment from Europe. But this week the French launched their first campaign to attract South African investment into France.

The French government and some of the 30 South African companies already established in France explained to potential investors the many advantages - and some disadvantages - of doing business in that country.

France’s ambassador to South Africa Elisabeth Barbier said her country was launching the same “Invest in France” campaigns in 49 other countries around the world this week.

She noted that South Africa was the biggest customer of France – the biggest importer of French goods – in Sub-Saharan Africa and that 350 French companies were already established in South Africa, either with headquarters and sales and logistics units in large numbers or with factories and research and development centres.

Barbier said that there were many South African companies invested elsewhere in Europe, particularly in the UK, and so on October 13 France would hold a similar event in London to encourage them to expand into France.

But this campaign to increase South African investment in France did not mean the French embassy would decrease its efforts to also encourage French investment in South Africa.

Serge Boscher, head of France’s regional economic department for Southern Africa, was asked why South Africans would invest in France when it so desperately needed foreign investment in South Africa.

“To grasp added value,” he said. “And to return added value to South Africa. Because France is innovative and an R& [research and development] hub. And so you develop your activity, you take profit about R& and innovation. And with the global added-value chains, the feedback comes back to South Africa.”

Boscher added that the 30 South African companies invested in France were not enough.

“The economy of South Africa is strong. You can do better.”

He noted that there were 20 000 foreign companies employing nearly two million people in France.

In 2014, France had been the leading recipient in Europe of foreign investment in industry.

The innovative sector in South Africa – especially the digital business – was best placed to take advantage of the benefits France offered to investors, he said.

“France needs foreign investment because France wants to be more global,” Boscher said.

He said the top South African investor in France was the Steinhoff jewellery company with 10,000 employees. Its latest financial results just released were very good, especially because of its European footprint.

Frenchman Philippe Mellier, CEO of De Beers and formerly of the French energy company Alstom, said a conjunction of four things made France unique as an investment destination.

It was a huge market not only because it has 65 million people but also 85 million tourists a year. It had extremely good infrastructure, certainly the best in Europe.

Its hourly labour productivity was very high, even if not the highest. Officials said it was 6th in the world, one ahead of Germany.

And its fourth advantage – the most important – was education, innovation and talent. Over 44 percent of 25 to 34 year-olds were graduates.

“This creates a unique proposition,” Mellier said.

There were also many efforts by the government and corporations to boost innovation, including the best tax credits in Europe – 30 percent of all R& expenses.

Mellier said the two retail shops of De Beers in Paris were its most successful.

Stavros Nicolaou, senior executive of Aspen Pharmaceuticals, the South African company which employs 800 people in its operations in France, said there were several advantages to doing business in France.

These included a high level of skills and expertise, especially in biochemicals, good and well established business infrastructure, a professional and well organised industry, and closeness to suppliers and the EU market.

The disadvantages were that labour laws and working hours drove up expenses, unions were not aligned with business, general costs were high, medicine costs were decreasing, and competition was high. [/b]

R57/$5 billion is nothing that more like what S.A is gonna be spending on FREE EDUCATION FOR VARSITIES.
MTN MOVE TO ASIA AND EUROPE AND OUR NEIGHBOURS IN SOUTH AMERICA LIKE BRAZIL, ARGENTINA,CHILE AND AUSTRALASIA. These are stable countries and theyr level headed people unlike reactionary pricks like Boo-hurry.

Despite big population MTN still makes alot of money from S.A.

nigeria IS BROKE THEY DONT HAVE MONEY. Hence banks and foreign investors are being fined big money. In Lingala they say "MBOLE MOKE" nigeria doesn't have CHEEESE/Money.

They bitch as if MTN makes over $10 billion from Nigeria alone
I THINK ITS ABOUT TIME S.A. COMPANIES THINK TWICE BEFORE INVEST IN AFRICA. To me shows Africa isnt MATURED both POLITICALLY AND ECONOMICALLY.

As one black academic said "BLACK MAN YOU'RE ON YOUR OWN". I think its about time African countries go different directions.


Nigeria's Fines on MTN, Banks Shows Buhari Under Fiscal Stress
Elisha Bala-Gbogbo
Amogelang Mbatha
November 2, 2015 — 2:42 PM SAST
Updated on November 3, 2015 — 12:12 PM SAST

MTN still in talks with Nigerian regulator over fine
Nigerian president has yet to appoint a finance minister



Nigeria is tightening rules against investors in a move analysts say is evidence of a government struggling to cope with fiscal pressures in the face of plunging oil prices, creating more unpredictability for Africa’s biggest economy.

MTN Group Ltd. was fined $5.2 billion by Nigeria’s telecommunications regulator last week, more than 20 percent of the mobile-phone company’s market value, for failing to comply with an order to disconnect customers with unregistered phone cards. In the same week, regulators also imposed fines on Standard Bank Group Ltd.’s Nigerian unit, United Bank for Africa Plc and First Bank of Nigeria Ltd.
Muhammadu Buhari
Muhammadu Buhari
Photographer: Bertrand Guay/AFP via Getty Images

“It’s worrying, the bank fines, the telecommunication fines,” Clement Nwankwo, executive director of the Policy and Legal Advocacy Centre, said by phone on Monday from Abuja, the capital. “I don’t get the sense of what the economic direction is. If Nigeria is broke and agencies are fining companies to make up for the shortfall in oil revenues then that is something that we should be worried about.”

Nigeria has no finance minister or clear economic policy five months after President Muhammadu Buhari took office on pledges to combat corruption, end an insurgency by Boko Haram militants and bolster the economy. He has had to do that with dwindling resources after oil prices fell 55 percent since June last year. Nigeria is Africa’s biggest crude producer, with oil making up more than two-thirds of government income.
MTN Slump

“The fiscal headwinds facing Nigeria has resulted in an increasingly assertive regulatory regime in Nigeria,” Martyn Davies, managing director of emerging markets and Africa at Deloitte & Touche LLP in Johannesburg, said in an e-mailed reply to questions. “These fiscal pressures are resulting in greater pressure on companies, local but particularly multinational, to comply.”

Gross government revenue fell 57 percent to 435 billion naira ($2.2 billion) in June from a year ago, according to data from the central bank. Revenue in the first six months of 2015 was 3 trillion naira compared with 4.8 trillion naira in the same period of 2014.

MTN shares have slumped 22 percent since Oct. 26, when the company said it’s facing a fine. The stock rose 0.6 percent to 148.99 rand as of 12:10 p.m. in Johannesburg after the company said the Nigeria Communications Commission renewed its operating license.

Tony Ojobo, a spokesman for the NCC, said on Oct. 29 that investors are required to comply with the rules or face penalties. He said on Monday that there’s no update to be disclosed on the MTN fine. Femi Adesina, a spokesman for Buhari, said by phone the MTN penalty is not a matter for the Nigerian presidency, referring queries to the NCC.

The penalties signal “that the new government is serious about compliance, which, over the medium term, should be beneficial for business,” Cobus de Hart, an analyst at NKC Independent Economists, said by phone from Paarl, near Cape Town. “However, given the understandably fickle investor sentiment currently in the country, being too strict too quickly will adversely affect the business environment and investors may become even more anxious.”
Slowing Economy

Investor confidence has slowly eroded this year. In September, JPMorgan Chase & Co. said it will remove Nigeria from its emerging-market bond indexes, as foreign-exchange restrictions imposed by the central bank to help stabilize the naira and reserves caused liquidity to dry up. Buhari has backed the central bank’s currency controls even though they are hurting importers and growth in an economy that expanded at the slowest pace this decade, at 2.4 percent, in the second quarter.

Buhari is yet to disclose the portfolios of his 36 cabinet nominees, who were all approved by the Senate last week during confirmation hearings.

“Certainly it is important that the regulatory agencies are active and taking action against companies that violate the rules of business,” Nwankwo said. “But it is always useful that this be done in the context of a national economic policy.”
Before it's here, it's on the Bloomberg Terminal.

Am glad that EUROPE AND ASIA, SOUTH AMERICA,AUSTRALASIA are wooing S.A. companies to invest in their countries. Africa was benefitting from S.A. firms but soon. S.A COMPANIES WILL LOOK ELSEWHERE THIS WAS A "WAKE UP CALL".

S.A. WAS BUILT OUT OF MINERAL WEALTH, EVEN TODAY MINING IS THE BACKBONE OF OUR ECONOMY. This is where bulk of S.A money comes from not tax.
Am sure we wont abuse our OIL AND GAS WEALTH once we start tapping it.

Who is this mumu? You better shut the Bleep up and go back to your country.

If your country can tolerate this nonsense, ours don't.
Good luck to Crappy SA companies wooed by France, hope they disregard France law and jeopardize France security.

benvolavolarag:
Am glad that EUROPE AND ASIA, SOUTH AMERICA,AUSTRALASIA are wooing S.A. companies to invest in their countries. Africa was benefitting from S.A. firms but soon. S.A COMPANIES WILL LOOK ELSEWHERE THIS WAS A "WAKE UP CALL".

S.A. WAS BUILT OUT OF MINERAL WEALTH, EVEN TODAY MINING IS THE BACKBONE OF OUR ECONOMY. This is where bulk of S.A money comes from not tax.
Am sure we wont abuse our OIL AND GAS WEALTH once we start tapping it.

SASOL $20-billion investment in a facility in Louisiana, prompted by the North American shale boom, will be a world first in some respects.

http://mg.co.za/article/2013-09-20-00-sasol-cracks-major-us-fracking-deal

This is the money that was supposed to be invested in Nigeria, since they are misbehaving, we take it to the secured USA.

who cares about $5.2bn when we have 1 company with more than $60bn investment in china;

The huge success of Tencent — which provides mobile gaming and messaging services —
has meant the value of that holding has risen to be almost the same as that of Naspers’
$66bn market capitalisation.

https://next.ft.com/content/82e365aa-1984-11e5-a130-2e7db721f996

I think SA is generally a lawless enclave. How can lawmakers say that penalty imposed on a consistently belligerent operator would strain trade ties?

Mtn must not only pay, but they must pay on time. Let them not carry the lawlessness in S.A. to Nigeria.

THE SPACE YOU LIVE IN NOW AS WE BLOGG DEFINES YOUR STUPIDITY. When I look at your small towns you call cities. I laugh cos all I see theres NO SPACE, ORDER AND FORM. Looking from above aerially using GOOGLE EARTH LIVE OR AFRI GIS all we see is DOGS BREAKFAST.
;DTheir hope lagos and aboonja look SH8T.

MrMcJay:
I think SA is generally a lawless enclave. How can lawmakers say that penalty imposed on a consistently belligerent operator would strain trade ties?

Mtn must not only pay, but they must pay on time. Let them not carry the lawlessness in S.A. to Nigeria.

SA wine is big in China and has sold S.A. there....Their billionaires like S.A. wine.

I THINK OUR RETAIL GIANTS SHOULD MOVE TO ASIA, EUROPE, SOUTH AMERICA AND AUSTRALASIA. Where they will be appriciated, AFRICA is a BACKWARD HOLE am refering to Sub Sahara Africa and will continue being behind in everything as long as we have BAD HEARTED people like Boo-hurry and his nigerian greedy dogs.

S.A. foreign trade shows we're trading more with the rest of the world than Africa. I think we need to keep this trend growing. AFRICA sub sahara is bleeped beyond repairs (excluding central and east Africa,southern Africa).

Yes S.A. must help Africa south of EQUATOR (Cameroon,CAR,Equatorial Guinea and Sao Tome and principe,Gabon,Congo Brazza and DRC,Uganda,Kenya, Rwanda,Burundi,Tanzania,Malawi,Mozambique,Zimbabwe,Zambia,Swaziland, Lesotho,Botswana,Namibia and Angola) we have alot in common with these guys. Actually trade between S.A and these countries is even showing on the map below.

How do u trade in countries where their elite feed on foreign investment

SOUTH AFRICAN COMPANIES MOVE OUT OF NIGERIA, WOOLWORTHS LEFT TO AUSTRALIA. PLEASE LEAVE WHILE U CAN. They're not civilized....

[b]NIGERIA IS BROKE AND THEY'RE TRYING TO MILK FOREIGN INVESTORS BY ALL MEANS.
Look what theyr doing with STANDARD BANK.

Nigeria rejects Standard Bank fine
November 4 2015 at 12:11pm
By Yinka Ibukun
IOL pic sept4 BR STD Bank 2367

Abuja - Nigeria’s central bank rejected a request by the country’s Financial Reporting Council to take disciplinary action against Standard Bank Group’s local unit after the FRC said the lender had made material misstatements in its financial accounts and recommended a fine.

The FRC didn’t follow due process and the central bank is “unable to accede to your request to take disciplinary action against” Lagos-based Stanbic IBTC Holdings, Governor Godwin Emefiele said in letter dated November 2 obtained by Bloomberg and confirmed on Wednesday by central bank spokesman Ibrahim Mu’azu.

“We are seriously concerned that such a drastic regulatory decision could be taken on an entity under the regulation and supervision of the Central Bank of Nigeria without any form of consultation of the bank.”

The FRC on October 26 suspended the registration to sign off on financial statements of four past and current Stanbic officials, including Chief Executive Officer Sola David-Borha and Chairman Atedo Peterside. The issue under dispute is how to account for cross-border payments, according to Johannesburg- based Standard Bank, the continent’s largest lender by assets, which said Stanbic has been treating payments to units of the lender in other African countries as liabilities.

The central bank “does not see any reason to advise or compel” Stanbic to obey the FRC’s rulings, Emefiele said in the letter. The manner of the regulator’s announcements and actions has the ability to erode investor confidence, Emefiele said, noting the 18 percent drop in Stanbic’s share price since October 26.

Stanbic’s proposed sale of 800 million shares had also been suspended by the Nigerian Securities Exchange Commission over the FRC investigation into the company’s financial statements. The bank had announced plans in May to raise 24 billion naira ($121 million) of equity, which was approved a month later.

Standard Bank said in a statement on Wednesday it received a copy of Emefiele’s letter and welcomed the central bank’s intervention.

- With assistance from Elisha Bala-Gbogbo in Abuja. [/b]

RICHEST BANKS IN AFRICA 2015
To me this is similar with TOP UNIVERSITIES IN AFRICA. What is $5 billion thats lesser than GDPs of most S.A. big cities.

1) Standard Bank Group - $184.518 Billion (South Africa)
With assets of over $184.518 billion, Standard Bank is the richest bank in Africa. Headquartered in Johannesburg, South Africa, the bank has operations in 32 nations worldwide. More than 49,000 people work in Standard Bank. It offers commercial banking, investment banking and investment management solutions.

2) Barclays Africa/ABSA Group - $97.241 Billion (South Africa)
The Barclays Africa Group (formerly ABSA Group) has assets of around $97.241 billion. It offers personal and business banking, credit cards, corporate and investment banking, wealth and investment management, and Bancassurance in various nations of Africa.


3) FirstRand - $89 Billion (South Africa)
FirstRand offers banking, insurance and investment products and services to retail, commercial, corporate and public sector customers in South Africa and other African countries.

4) Nedbank Group - $80.110 Billion (South Africa)
Nedbank has assets of around $80.110 billion and offers a range of banking solutions for individuals, small businesses and large corporations. It is headquartered in Johannesburg.

5) National Bank of Egypt - $51 Billion (Egypt)
The National Bank of Egypt is the oldest and the largest bank in Egypt. It has assets of approximately $51 billion. The bank accounts for more than 23% of the Egyptian banking system's total assets.

6) Attijariwafa Bank - $40.026 Billion (Morocco)
Attijariwafa Bank is a leading bank in Morocco that has assets of around $40.026 billion. Founded in 1904, the bank has been listed on the Casablance Stock Exchange since 1943.

7) Banque Exterieure d'Algerie - $34.373 Billion (Algeria)
Banque Exterieure d'Algerie (BEA) was founded in 1967. This commercial bank is based in Bir Mourad Rais, Algeria. IT has total assets of $34.373 billion.

Investec Bank - $31.335 Billion (South Africa)
Investec Bank is a specialist bank and asset manager. It provides a wide range of financial products and services to a niche client base in South Africa.

9) Banque Misr - $29.436 Billion (Egypt)
Egyptian bank Banque Misr was founded in 1920 and nationalized in 1960. The bank has assets of approximately $29.436 billion. It has branches in all of Egypt's governorates.

10) Credit Populaire du Maroc - $27.662 Billion (Morocco)
Credit Populaire du Maroc (Groupe Banque Centrale Populaire)is a Morocco-based group of banks engaged in the provision of financial products and services. It offers products and services to individuals, professionals and businesses. It has assets of around $27.662 billion.

THESE BANKS COMBINED ARE WORTH MORE THAN THE ENTIRE nigerian oil economy. Yes oil economy started by British in 1950s.

I'd rather see S.A. retail giants building in rural and small towns in S.A. than in AFRICA.

Am happy they are investing more in rural S.A. and am happy that new players are non whites and younger. S.A villagers shopping in over 20 000-60 000 sqm. malls. somewhere in rural Mpumalanga.

somewhere in rural North west...

benvolavolarag:
THE SPACE YOU LIVE IN NOW AS WE BLOGG DEFINES YOUR STUPIDITY. When I look at your small towns you call cities. I laugh cos all I see theres NO SPACE, ORDER AND FORM. Looking from above aerially using GOOGLE EARTH LIVE OR AFRI GIS all we see is DOGS BREAKFAST.
;DTheir hope lagos and aboonja look SH8T.

I suggest you get a proper education before you reply my posts next time. Your punctuations are atrocious, your manners repulsive and your sanity questionable.

You can say what you will, but the fact remains that while the apartheid guys flogged your fathers, we stood up to them on your behalf.

As regards Lagos, that city had been developed when your fathers were busy hunting antelopes and calling the white man 'baas'.

The major difference between Naija and SA is what while my President is a decorated General of many battles and a statesman, yours is a rapist who believes that eating beetroot after unprotected sex prevents HIV.

somewhere in rural northwest...

Rural Limpopo having fun as well....LA CLASS FROM BUBS TO VILLAGES Z.A STYLE. Am happy small towns are receiving alot of attention/development lately.

Rural Z.A. somewhere in Mpumalanga. UNDER CONSTRUCTION 60 000 square meter mall for rural people S.A. you're too much in DEVELOPMENT.

Before you even mention education pls. Please visit UNIVERSITY RANKINGS IN AFRICA from 1900-2015 you will see that your FLAT UNIVERSITIES are sh8tholes that produce half baked DEAD BRAINS like u and Boo-hurry. What battles if I may ask

IF Z.A. were to go to WAR now with nigeria. Z.A. ARMY WOULD WIN THAT WAR IN LESS THAN A WEEK, HENCE GEJ HIRED OUR SPECIALIST TO FIGHT BH. We won't even deploy our men to fight that battle but send OUR GADGETS.
[b][/b]

MrMcJay:


I suggest you get a proper education before you reply my posts next time. Your punctuations are atrocious, your manners repulsive and your sanity questionable.

You can say what you will, but the fact remains that while the apartheid guys flogged your fathers, we stood up to them on your behalf.

As regards Lagos, that city had been developed when your fathers were busy hunting antelopes and calling the white man 'baas'.

The major difference between Naija and SA is what while my President is a decorated General of many battles and a statesman, yours is a rapist who believes that eating beetroot after unprotected sex prevents HIV.

I wont mind POSTING BIAFRA WAR where your fellow flat heads were STARVED AND DEFEATED by your own army. Thats in 1970 not so long ago, I think you have not recovered from Biafra

Sies blogging with people who live in spaces like this *Spitting*

somewhere in rural northwest....

UNDER CONSTRUCTION rural KwaZulu Natal small town getting pimped. 70 000 sqm mall ....

Z.A. on the left and kwere kwere GENERATOR republic on the right.

Rural ZA shoppers eating good food checked by FOOD TECHNOLOGISTS and approved by health dept. since 1BC.

What do u expect from people who eat gorillas and dogs

The difference betwee us and them. Hence they're reactionary pricks by nature. ZERO REASONING ABILITY SHAPED BY SPACES THEY LIVE IN.

Mighty Z.A. BIG IN LAND AREA AND BLESSED WITH NATURAL BEAUTY. we are building over 5 spanking new mega cities they're making noise about small Eko/8 km sq. development.

New cities UNDER CONSTRUCTION
Modderfontein city