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South
Africa’s rand hit another 35-month high against the dollar on Friday,
continuing a recent rally that has been fed by rising risk appetite,
while local stocks edged lower in holiday-shortened trade.

The rand ZAR=D3
traded at a session high of 6.7350 to the dollar, hitting a new record
high for the year, just shy of the January 2008 high of 6.7175.

At 10:30 GMT the rand traded at 6.7530 to the dollar, not far off its close of 6.7590 on Thursday.

Foreign inflows
searching for higher yield have helped to support the rand, which has
appreciated 28 percent against the dollar so far this year.

“The stronger rand trend is continuing,” said Ian Martin, a trader at Rand Merchant Bank.

“It’s going to
drift stronger till the end of the year, I think the foreign funds
pretty much will keep it stronger.” The rand’s short, medium and
long-term moving averages point to further gains in the currency. It
also broke through key levels of resistance at 6.80 and the October
high of 6.7624 in the session, opening up the chance of a retest of
6.71.

One the bourse, investors sold some recent gainers such as Shoprite on concerns advances may be overdone.

The blue-chip
Top-40 index finished down 0.32 percent at 28,582.68. Trade on
Johannesburg Stock Exchange was a half day, ending at 10:30 GMT, ahead
of the Christmas holiday.

The broader All-share index

The Top-40 index is
up 15 percent so far this year “There is still an underlying positive
view in our market,” said Abri du Plessis, chief investment officer at
Gryphon Asset Management.

Traders have said
they expect further international demand for South African equities in
the coming year, given the better prospects for growth in developing
markets.

Shares of Shoprite
fell 1 percent to 99 rand. The retailer is the fourth-best performer on
the Top-40 so far this year, having risen more than 52 percent.

The Top-40’s best
performer this year, retailer Truworths, fell 1 percent to 70.22.
Truworths has gained nearly 64 percent this year.

Other notable
movers included Vodacom, South Africa’s largest mobile operator, which
fell nearly 2 percent to 72.75 rand. Shares of the company are up more
than 12 percent so far this month.

Government bonds
yields were steady, closing at 7.40 percent on the benchmark 2015 note
ZAR157= and at 8.38 percent on the 2026 ZAR186= issue.

(Reporting by Xola Potelwa, David Dolan and Gugulakhe Lourie; Editing by Toby Chopra)

These are indeed
heady days for politicians. Meanwhile these are perplexing days for
other citizens. Election fever is in the air and things are moving in
rather interesting ways. Some “Excellencies” thrown up by the world
acclaimed defective electoral processes of 2007 have been shooed away
and political equations and formulations are emerging in new twists and
turns.

The removal of some
governors has been neat and received with spontaneous celebrations of
victories delayed. Some have been less straightforward. Take a look at
the one of Delta State. There is going to be a rerun. Due to other
happenings that have eliminated some of those who ran in 2007, such as
death, carpet crossing or perhaps withering away of platforms, the
ex-governor was about to possibly contest against himself. But then the
codes were redefined and he can now look forward to a fight.

The build up to the
2011 elections makes headlines daily. Imagine how innovative Nigerians
can get in their bid to steal an election – by simply stealing data
capturing machines. If I had one of those I could possibly generate
enough voters’ cards to warrant the creation of several wards in my
yard. And then I could market the cards or the election. In the past we
have witnessed the grabbing of ballot boxes during election days; the
employment of folks with stiff thumbs to thumb the cards and thump the
election. Elections reduce unemployment! This election is also the
first (correct me if I am wrong) to throw up a regionally endorsed
candidate of a particular party to confront a candidate that arguably
runs on a national platform.

New ambition, new platform

And what do you say
when a minister who spent months brandishing a rebranding or rebranded
Nigeria suddenly rebranding herself as a candidate for the senate, not
on her party ticket but on another platform? Could it have anything to
do with expiry dates of party formations, going by NAFDAC rules?

Come on, that is
nothing new on these shores. If you are keen to seek elective office,
you do not have to be encumbered by party loyalty. If party A does not
give you the ticket, you can simply do a moonwalk on the carpet and
pick up the ticket of a party you previously opposed. Call it a game or
a dance. Call it what you like. What is important is that you grab a
ticket and place your face on the ballot paper.

Do not be surprised if Atiku Abubakar or even Goodluck Jonathan end up running on platforms you have never heard of.

Profitable venture

But what does it
matter what party platform you contest on? If you are running for a
seat in the Senate or in the House of Representatives, you may well be
simply embarking on a most lucrative business venture. Seeing that the
folks in the National Assembly have the knife and the yam as far as
their personal emoluments are concerned, who would begrudge you if your
desire is to say good bye to poverty, and that as quickly as possible,
before the national economy goes kaput?

Nigerian law makers
may well be termed money makers. But don’t you know the money trickles
down? We get regaled with stories of senators and representatives who
utilise their constituency allowances so judiciously that at least some
people in their areas can boast of being given motor cycles, sewing
machines and bags of salt. Do you imagine that those constituency
projects will not move Nigeria to the next level?

I cannot imagine
why the uproar that these folks in Abuja do earn 10 times more than
their Ghanaian counterparts. Or that David Mark earns almost 10 times
more than Barak Obama. Are we in Ghana or the United States of America?

What if these
legislators have gulped N385.80 billion as salaries and benefits since
their inauguration and are sure to swallow N515.80 billion by the time
they end their four years term? Nigerians have to know that Abuja is an
expensive city and these folks have to recover their electoral
investment – the bags of salt, the payment of thugs that helps to fight
unemployment on election days, the bottles of schnapps and beer. Yes?

I laughed out loud
when I read an analysis that says that the money grabbed by the
lawmakers in Abuja is enough to set up infrastructure to generate 2,572
megawatts of electricity. I think the analyst does not know if the
bellies of these lawmakers are wired and connected to the national
grid, we won’t need any further infrastructure to generate electricity.

It has also been
said that the cash they have cornered is enough to build four brand new
refineries and refurbish the four existing ones as an icing on the
cake. What do you need more refineries for? Do you want to throw the
petroleum products speculators into the poverty line? Haba? Have you
paused to imagine how much petroleum products can be obtained if we
simply give these political fat cats bottles to collect their golden
urine and ship to the Nigerian National Petroleum Company?

Okay, so many eyes
are set on the hollow, sorry hallowed, chambers of the national
assembly come 2011. I wish you luck and indeed I may vote for you
irrespective of what platform you stand on since there are no
ideological demarcations and no party programmes to prosecute and
defend.

With all the
goodies available in National Assembly and considering the fact that
you can simply get there with two items on your agenda: grab and sleep,
you may assume I am running too. You are right. However, I am running
from the Senate.

The late Adetunji Ogunkanmi brought transformation and dynamism
to the insurance industry when he was the helmsman of Cornerstone Insurance.
Mr. Ogunkanmi redefined the insurance business in Nigeria and raised awareness
to an unprecedented level. It is to his credit that Cornerstone Insurance was
the company that broke the ice of conservatism and nonchalance to marketing
communication in the industry.

Mr Ogunkanmi embarked on aggressive communication campaign
backed with superior service delivery. This manifested in the communication
campaign announcing a 24 hour prompt claims settlement by Cornerstone
Insurance.

This was a unique selling point for the company and it stood out
amongst its peers.

He kept the industry on its toes and helped instil public
confidence in insurance in Nigeria. His sudden demise put an end to all his
lofty dreams and vision to make every Nigerian patronise insurance services and
believe in insurance practitioners. I even learnt that the man had a strategic
blueprint for the industry if not for his sudden death. Even Cornerstone
Insurance has not also lived up to the expectation of Mr Ogunkanmi unlike the
consistent campaign that was a critical reference point for the industry in
those years.

The insurance industry indeed woke up from its slumber as quite
a number of companies began series of brand communication campaign as a result
of his vibrancy which was applauded by all and sundry.

Even professionals outside the insurance industry acknowledged
his invaluable contributions to raise the bar.

However, the trend has changed as several insurance companies
have gone back to the trenches again. It is to the credit of some insurance
companies who have also sustained the tempo of communication campaigns. There
are several others who have not been able to communicate any tangible offering
of their companies to the target audience.

For some time now, the insurance industry has been battling with
awareness. This has been one thorny issue that the industry has not been able
to resolve. About a year ago, the industry commenced a campaign tagged ‘The
Awareness Project’ which was an initiative of some insurance companies. The
campaign was intended to enlighten Nigerians about the benefits and
opportunities in the insurance industry.

Depth and strategy are
important

Indeed, the campaign portends a good omen for the industry but
it lacked depth and a coherent strategic thought. The major problem insurance
has in Nigeria is public apathy and this stemmed from the fact that people do
not have confidence and trust in the practitioners. It is a widely held opinion
that some insurance companies do not pay claims promptly. This has influenced
the thought process of Nigerians that insurance companies do not live up to
their promise.

From inception the campaign achieved nothing to correct
misconceptions about insurance services and as a result, apathy to insurance
services remained the same. The campaign was even implemented by a handful of
insurance companies on behalf of the industry.

Eventually, it was enmeshed in controversy which also questioned
the integrity of the industry.

The industry needs a more strategic approach that will focus on
enlightenment and educative series on what is insurance, why people need
insurance and the benefits accruable.

This coupled with the fact that several insurance companies have
not been projecting their services as well as corporate image. Some insurance
companies are only visible when they convene their Annual General Meetings. In
actual fact, some companies are only known during their AGM.

One can count the number of insurance companies that advertise
on a consistent basis. It is essential to communicate unique service offerings
which clearly distinguished Cornerstone in those days.

Last year, my organisation produced a “Media Image Measurement”
for insurance companies. The report was sent to some key insurance companies
but it is shocking that no insurance company acknowledged the report and it
never motivated them to subscribe to the report.

The industry needs a pragmatic and proactive action plan to
increase visibility and stimulate public’s interest in insurance services; it
has become imperative to conduct a survey in order to determine the thought
patterns of Nigerians about insurance services. This can indeed form the
foundational basis for any meaningful awareness campaign.

It is only a well structured and strategic communication
campaign that can increase the rating of the insurance industry.

The time has come for the industry to refocus and sustain a
visible image in the minds of Nigerians.

Ayopo, a communication
strategist and public relations specialist is the Ceo of shortlist
ltd.email-shortlistedprspecialists@gmail.com

This year was yet
another challenging year for many Nigerian families, with money matters
causing much concern. The end of a year is a good time to reflect upon
how you have fared over the past year, both your successes and any
failures. A new year brings with it a sense of renewal and the age-old
tradition of new-year resolutions helps you to focus on making positive
changes in various aspects of your life.

Many people make
new year resolutions to exercise more regularly and maintain a
healthier lifestyle, to be more prayerful, to read a book a month, to
be a better mother, father, sister or friend; One resolution that is
often ignored is to focus on getting your finances in order.

Here are 10
achievable financial resolutions to set you on the right footing for
2011. Don’t try to initiate them all at once or you will become
frustrated and abandon them; just elect say three or four that you can
start to address.

Get organised

An annual review is
necessary because finances are dynamic; needs and goals change, family
situations change, jobs change, incomes increase, children are born,
others are off to college. Do you have a clear picture of where you
stand financially? Start by gathering and organising your paperwork:
bank statements, investment certificates, insurance policies, title
deeds, your will, and other financial documents.

To determine your
net worth, list and add up all your assets, that is, what you own
including cash, mutual funds, savings and investment accounts, valuable
personal possessions and the value of your home and subtract your
liabilities or what you owe, such as your mortgage, car loans and other
debt.

If your debts
exceed your assets, do not despair; that is the purpose of the
exercise. You now need to see where you can make adjustments; ideally,
your net worth should be increasing each year, even if it is just by a
small amount. Keeping track of your net worth on a regular basis,
annually, or bi-annually is a good indicator of how effectively you are
managing your money over time.

Set financial goals

Have you set short,
medium, and long-term financial goals? Are they still appropriate for
your current situation? Your short-term financial goals will consist of
what you want to accomplish in the coming year. This could include
saving for a car, or a vacation. Longer-term goals include putting a
down payment on a new home in three years, or planning for your
retirement in 10 years. If you are planning a family or have very young
children, you could start an education fund to cover school or
university fees. Prioritise your goals and assign them a value and a
target date.

Get out of debt

Getting out of debt
is another key step to taking control of your finances. List all your
debt, and prioritise; it is important to tackle the most expensive debt
with the highest interest rates first. Having your debt under control
gives you more freedom to do other things. It will take some sacrifice,
but it is worth the effort.

Create a budget

Once you know what
you owe, a budget will help you deal with your debt systematically.
Budgeting is one of the most important tools for financial security and
to plan ahead could mean the difference between achieving financial
freedom and experiencing financial failure. A good budget will help you
to plan and monitor your expenses so you can identify where your money
goes and where to cut back if necessary. If you don’t already have a
budget, try to make one, and stick to it.

Educate yourself

Improve your
knowledge of money matters through books, magazines, newspapers,
seminars, and by seeking professional advice. Whether your interest is
in learning how to manage your money, how to get out of debt or how to
plan for your children’s education, there is a plethora of information
that will guide you and put you in control of your finances, bringing
you closer to achieving your goals.

Establish an emergency fund

Saving is key to
financial success. If you don’t already have an emergency fund, think
seriously about building one. Try to have at least three to six months’
worth of living expenses in a safe, accessible,

interest bearing
money market account. If you are suddenly faced with unexpected job
loss, major car repairs, or medical expenses, you will be better
prepared to cope if you have this financial cushion to fall back on.

Try to develop a
strict habit of setting aside a minimum of 10 per cent of your income
each month for savings or investment purposes. You will be surprised to
discover that over time, even small amounts add up. Automate your
savings by putting a direct debit in place so that you won’t be tempted
to spend all your income.

Invest for the
future Make it a priority in 2011 to put some long term investments in
place. Many stocks continue to sell at a discount to their true value.
Inspite of market volatility, continue to invest in the stockmarket if
you have a long time frame, such as for your children’s education or
for your retirement. However, do pay attention to your asset allocation
and ensure that you are well diversified across the primary asset
classes including cash, bonds, stocks and real estate.

Do you have a retirement plan?

Did you add to your
retirement nest egg this past year? Every single year counts; indeed
many financial experts suggest that you may need as much as 70 per cent
of your pre-retirement income to maintain your standard of living after
you stop working. Most of your retirement income will have to come from
the money you set aside and invest today. If you haven’t done so
already, open a retirement savings account and in addition, start to
build an investment portfolio.

Have you made a will?

I know it sounds like a morbid way to start the New Year, but do you have a will or a living trust?

Putting your last
wishes down in writing should be a top priority, particularly if you
have dependants. Most parents have this on a ‘to do’ list but it often
gets left on the back burner. Knowing your children will be cared and
provided for should anything happen to you, will give you a huge sense
of relief. If you already have a will, it is a good time to review and
update it to make sure you have included any recently acquired assets
or new beneficiaries.

Give

Giving is a
powerful and effective way to change people’s lives for the better
whilst at the same time giving you financial freedom. Determine a cause
or charity that you would like to be involved with and identify ways in
which you can give back to the community.

Remember… it’s not all about money

Just one last bit
of advice: In all these money matters, do remember that the best and
most fulfilling things in life have nothing to do with money. Remember
to count your blessings, not just your money! May God grant you good
health, happiness, wisdom, security and peace in abundance in the year
2011 and beyond.

Happy New Year!

The Integrated Payroll and Personnel Information System (IPPS)
introduced to electronically capture the data of workers in the Federal Civil
Service has so far saved government over N12billion.

The system, is presently operational in about 16 ministries,
departments and agencies (MDAs), but it is expected to be introduces across the
country in the first quarter of next year, the Director General, Budget office
of the Federation, Bright Okogu, told journalists in Abuja.

Speaking during a session on the Budget process, Mr Okogu said
the electronic data capturing system is part of the present administration’s
strategy to stop wastage, particularly through leakages in the system as a
result of significant losses in salaries and pension payments to ghost workers
and retired employees in the Federal Civil service.

“The implementation of the Integrated Personnel and Payroll
Information System (IPPIS) in 16 ministries so far has helped reduce the number
of ghost workers on government payroll by over 7,000. That is why government is
poised at extending the system to other ministries, departments and agencies in
the first quarter of next year.

“Apart from helping government to update its data and records
for proper planning, the e-payment policy has been widely acknowledged as a
positive step to stem corruption, reduce administrative hostage taking
associated with payment to individuals and contractors as well as facilitate a
more transparent payment system that allows for effective monitoring,” Mr Opogu
said.

He described the proposed Sovereign Wealth Fund as a critical
part of the process by government to ensure fiscal consolidation and stronger
fiscal discipline, by ensuring that earnings from the natural resources are
saved for the development of basic infrastructure that would guarantee the
welfare of the people.

According to him, the Fund has the goal of helping build a
savings base for future generation of Nigerians by utilising part of the
revenue earnings from the oil and gas resources as well as to enhance the
development of critical infrastructure, like roads, railway system and airport.

Besides, he said the Fund will be used to provide stable
last-resort source of financing for commodity price-induced budget deficits
based on clear prudential guidelines.

2011 budget and reforms

Meanwhile, the government has allocated the sum of N37billion
for the Multi Year Tariff Order being managed by the Nigeria Electricity
Regulatory Commission as part of effort by government to subsidise the high
cost electricity supply for poor consumers.

The allocation, which is part of the overall allocation in the
2011 budget to facilitate the sustenance of the ongoing reforms in the energy
sector, also saw the Ministry of Power being allocated about N3.776billion for
recurrent expenditure and N86.250billion for capital projects, while the
Ministry of Petroleum Resources got N38.489billion for recurrent expenditure
and N10.27billion for capital expenditure.

The Ministry of Mines & Steel Development got
N11.513billion, and the Niger Delta Ministry was allocated N3.23 billion for
recurrent expenditure in addition to N53.40billion for capital projects.

The Presidential Amnesty Programme got the largest chunk of the
Niger Delta Ministry budget, with stipends and feeding allowance for
ex-militants getting about N17billion, while the reintegration of the
ex-militants got an allocation of N35.7billion. Operations cost of amnesty
programme got N1.95billion.

In addition, about N17.5billiuon has been set aside for the payment of the
2010 arrears for the re-integrated transformed ex-militants, apart from
N6.5billion for the settlement of the 2010 arrears for the
re-insertion/transition safety allowance for 20,192 transformed ex-militants.

Delta Airlines, an
international carrier operating into Nigeria has announced that it has
airlifted over two million air travellers from Africa since it commenced
operations in the continent in 2006.

The United
States-based carrier, which provides flight services in seven cities and
six countries in the continent, disclosed that Africa accounts for
about 27 per cent of its total revenue coming only second to the US
domestic market with 53 per cent. The airlines also offer 6,800 seats
weekly between Africa and the U.S.

Bobby Bryan, the
airline’s Commercial Manager for East and West Africa, who disclosed
this told reporters at a briefing in Lagos that the carrier’s year on
year improvement is about $878million.

Out of the two
million passengers transported from Africa, Mr Bryan explained that
336,000 travellers were airlifted from Nigeria to the United States
since it started operations in the country in 2007.

“2010 is quite
profitable for the airline with about $929million profit recorded in the
third quarter,” he said. “We are delighted to be in Africa and we
appreciate our Nigerian partners who have supported us this far.”

Mr Bryan said that
the Delta Airlines is exploring opportunities to work with Air Nigeria,
an indigenous carrier with operations on the domestic routes.

He described the
fact that airlines like Arik Air and United Airlines have commenced
operations on the Nigeria-US route, a positive development.

“We very much
welcome our competitors in the market and we are glad to have them here,
but we feel that or network is the strongest point that we have,” Mr
Bryan said.

“The Nigerian market is a rapidly developing market and we feel that
as the market increases we will get our fair share of the market and the
travelling public.”