Tower of power - Simon Griffiths

More documents

Recommendations

Info

sponsored advertorial A voice for business Dr Henry O Nzekwu, Executive Vice Chairman of MessageWise, explains why the right investment climate is essential to targeting economic growth in Nigeria For the first time since Nigeria regained democracy in 1999, members of the law-making House of Representatives, led by speaker Dimeji Bankole, met with the Nigerian business community, led by Dr Alhaji Bamanga Tukur, President of the African Business Roundtable and Chairman of the NEPAD Business Group, to discuss ways to improve the business environment and attract more foreign investment. The forum was organised by MessageWise on June 25 and took place at the Transcorp Hilton, Abuja. Nigeria needs business and business needs Nigeria. It is businesses that creates jobs and wealth and will ultimately eradicate poverty and empower our citizens. Just as Nigeria’s political freedom depended on it achieving democracy, the only way to attain the developmental goals we have set for our nation is to achieve economic freedom. Nigeria has plenty of available human capital, natural resources and an entrepreneurial spirit, so creating the right environment for the free expression of these strengths is one of the government’s primary responsibilities. Attaining democratic and economic prosperity is central to our nation’s Vision 2020 agenda and the seven-point agenda of President Umaru Musa Yar’Adua. We must all partner effectively towards the realisation of these targets. Over the years, the gap between business and the government has increased to the point where they often see little common ground. Government must view the hurdles encountered by Nigeria’s business community as real barriers to sustainable national economic progress. By the same token, the business community must trust the intentions of government and appreciate the political expediency that often leads to the enactment of seemingly unfavorable laws. House of hope The House of Representatives has a clear role to play in creating an environment that allows business to flourish. We want to provide every opportunity for the House of Representatives to inject a pro-business agenda into its work and direction. It is important too for our business leaders to feel secure in their dealings with elected members. Therefore, effective communication is key. MessageWise is inexpressibly proud to act as host to this fresh, new and hopeful partnership. The choice of the House of Representatives as a starting point is to us logical because of its clear capacity to implement laws that promote national development and the very diverse nature of its membership. We have been encouraged by Dimeji Bankole’s leadership of the House. His youthfulness, energy, vision and consultative leadership style have laid solid foundations for successful and open dialogue, and he is clearly committed to working for Nigeria. We believe this approach will revive public faith in the leadership of the House and by extension the leadership of the country. We are positive that this dialogue will provide the desired framework for a formidable relationship between our lawmakers and the business community in Nigeria. Heartfelt thanks This high level forum convened by MessageWise was a first in Nigeria and our mission is to make it a recurring exercise in our national calendar. Facilitating interactions between government and other critical stakeholder groups is a task MessageWise hopes to pursue and implement with all vigor. MessageWise hosted this dialogue in conjunction with the African Business Roundtable (ABR), which works to promote sustainable economic growth, social development and intra-Africa trade. Alhaji Bamanga Tukur has blazed a trail for Africa’s business community and we are honoured to have been considered ABR’s partner. We would also like to recognise our lead sponsor, Diamond Bank, for its support of this initiative. It shows the bank’s commitment to act in Nigeria’s economic interest as well as promote fresh and innovative ideas, and we are very grateful. Our thanks also go to ACORN for their additional support. MessageWise MessageWise is a strategic communications consultancy company specialising in public relations, political, social and outcome-related marketing and media campaigns. It has wide experience in project management, public communications, image development, events, sponsorships and public relations management, and assists both public and private sectors in communicating and engaging more effectively with their local environment. Contact: Jima Plaza, Plot 1267, Ahmadu Bello Way, Area 11 Garki Abuja, Nigeria. Tel: +234 (0)9 314 7480, (0)9 314 7479, Fax: +234 (0)9 314 7479 Email: info@messagewise.org, web: www.messagewise.org BIOGRAPHY Dr Henry O Nzekwu is the Executive Vice Chairman of MessageWise Ltd, as well as the founder and Chairman of CSA Ltd. Nzekwu has served as a media and PR consultant to a number of Federal Government committees and boards, including the committee for the deregulation of Petroleum Products Supply and Distribution. Over the last five years he has also served as a communications consultant to the Federal Ministry of Information and has provided strategic communications planning, message development, media relations, broadcast, logistics, events and production design to corporate clients including Deloitte, Shell Petroleum, Zenith Bank, Coca-Cola, WAPCO, Nigerian Stock Exchange, and the Nigerian Communications Commission. Putting the message across: Executive Vice Chairman of MessageWise, Dr Henry Nzekwu (r) with the Rt Hon Dimeji Bankole, Speaker of the House of Representatives 94 | africainvestor
infrastructure investor project finance lounge Old issues, new dynamics Risks are high, competition is heating up, but the telecoms sector still has plenty to offer astute investors, says Iain Fenn, of law firm Linklaters African telecoms companies can’t stay out of the news. MTN’s suitors, Safaricom’s IPO and various acquisitions by African and international telecommunications firms have kept the newswires buzzing. But while opportunities abound, investment in African telecoms companies remains dangerous territory for the unwary. Political and regulatory uncertainty remains in many jurisdictions. Investors acquiring interests in African telecommunications companies need to focus on the coverage offered by their licences and the risk of their removal, or limitation, in the future. There have been examples of spectrum being clawed back from operators, and of universal licensing creating opportunities for new entrants at the expense of current licensees. I fought the law In many African, and other emerging markets, the legal systems are immature and not completely effective. This can lead to undeveloped and insufficiently robust listing regimes. In the mergers and acquisitions arena, for example, concerns about local law in joint ventures can be addressed by providing for UK or US governing law and disputes can be resolved by arbitration outside the state in question. However, enforcement of judgments against purely local partners remains difficult. These features mean that aligning the economic interests of non-African investors and African partners remains very important. Local laws continue to constrain the distribution of profits and exchange controls remain in many jurisdictions. Many states also retain foreign ownership restrictions on telecoms companies, often for national security reasons. These can limit control and also render standard joint venture tools, such as puts and calls and buyout provisions, ineffective as they cannot, in practice, be exercised. Don’t hang up Despite all these issues, interest in African telecommunications remains strong. Why As well as the rewards of a successful venture, new dynamics are driving the demand and pricing of African telecommunications assets. Global players, such as Vodafone, have changed their strategies to focus on emerging markets in a search for growth. Middle Eastern operators with significant assets have become more active in their “backyard”. These include Zain, which purchased Celtel, as well as sovereign wealth funds. Another dynamic is that major players from countries that were until recently, or in some cases still are, seen as emerging have turned away from domestic markets and are looking for international growth. Africa is seen by some such operators – Reliance, Bharti, VimpelCom and China Mobile – as the perfect place to operate their high-volume, low revenue-per-user models and capitalise on western companies’ residual nervousness about African investment. The next step, and we are not there yet, will be consolidation. This may be led by international or African operators. MTN, Zain, Etisalat and Vodacom all appear to be potential African consolidators whether acting alone, or as part of a consortium with international telecommunications firms or sovereign wealth funds. Your call Potential investors in African telecommunications beware: you are probably not the only show in town. African governments privatising assets and African business partners are increasingly able to call the tune. As well as coming up with a good price, what should significant investors provide African players will be looking for partners who have access to capital and can provide it cheaply whether directly or indirectly. Sovereign wealth funds are particularly well placed to fulfil this need. They may also be looking for management expertise. Experienced individuals from western companies can transform the rollout programme for new infrastructure. They should also have experience in running a business with a view to a value-enhancing liquidity event: a disposal or an IPO. This can be particularly important for governments (such as in Kenya) or private equity financiers (such as the investors in Celtel). Technical expertise is vital. Strategic investors can provide this in the form of seconded employees, or service or partnership agreements on preferential terms. Such partnership arrangements with international firms can include access to preferential terms of business. There are clearly new dynamics at play in Africa, and investors need to consider the risks they face and their appetite for them in the context of tough pricing, tougher competitors and deal complexity in consortium situations. Sentiment appears to be that the risks are worth it. With particular expertise in the telecommunications sector, Iain Fenn is a specialist in corporate law, including mergers and acquisitions, takeovers, privatisations, public offerings, joint ventures and corporate reorganisations. Linklaters is the leading international law firm operating in Africa, advising some of the continent’s largest investors across a range of sectors. Contact: iain.fenn@linklaters.com, www.linklaters.com september – october 2008 africainvestor | 95
Page 1 and 2: A infrastuctureinvestor In this spe
Page 3 and 4: OUTSTANDING IDEAS SHARED SUCCESS WH
Page 5 and 6: sponsored advertorial Master of all
Page 10 and 11: infrastructure investor Tower of po
Page 12: infrastructure investor and this un
Page 15 and 16: infrastructure investor Proposals f
Page 17 and 18: infrastructure investor nepAd corne
Page 20 and 21: sponsored advertorial Mobile moves
Page 22: 110 | africainvestor

Tower of power - Simon Griffiths

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?