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Nigeria’s
quest to make the naira an international currency may become a reality
after all, albeit the move is coming from another country.

Mauritius-based
Global Board of Trade Limited (GBOT) has said in the next six months,
it would start trading the naira alongside other African currencies on
its currency futures exchange. GBOT will offer commodity as well as
currency derivatives products.

A
currency future is a futures contract to exchange one currency for
another at a specified date in the future at a price (exchange rate)
that is fixed on the purchase date. Typically, one of the currencies is
the US dollar.

The
GBOT, which started operations on Monday, October 18, will offer a
platform for Africa’s commodity and currency derivatives landscape,
thereby helping to tie up future sale contracts for exporters and
importers, guaranteeing prices several months before production or
actual delivery.

The
GBOT’s managing director and chief executive officer, Joseph Bosco,
told Reuters recently that the exchange would start with 12 brokers,
and would also be looking at opportunities in Nigeria, Uganda,
Tanzania, and Egypt.

Currency offerings

“GBOT
is already offering futures contracts on the African currency pairs
USD/MUR (US dollar/Mauritanian rupee) and ZAR/MUR (South African
rand/Mauritanian rupee). In the next phase, we plan to trade futures on
other African currencies on our Exchange,” Mr. Bosco said.

This
is the first time worldwide that two African currency futures will be
traded. He noted a marked interest from banks and from industry in
several countries on the continent for hedging on their currency’s
fluctuations.

The
naira has been fluctuating in recent weeks, dropping from about N147 to
the dollar at the beginning of the year to around N149/N150. At the
interbank market, the naira is trading at around N152 to the dollar.
This movement is due to the anticipation of either a possible
devaluation or uncertainties on political transition, thereby
increasing the activities of currency speculators.

“For
launching new African currencies on GBOT, we would first discuss the
matter with the Central Bank of the relevant countries and then take it
forward,” Mr. Bosco said through an email sent by Michel Gilbert
Deville, GBOT’s head of corporate communications.

‘We are not aware’

The
Central Bank of Nigeria (CBN) feigned ignorance of the development. “We
are not aware of anything like that,” said Mohammed Abdullahi, CBN
spokesperson.

Asked
about how disposed the Central Bank would be to such a venture by
another African country that would boost the reputation of the naira,
Mr. Abdullahi retorted, “I am not aware of anything like that. That is
the only thing I will tell you.”

However,
Lamido Sanusi, the CBN governor, said recently that the Central Bank
would consider introducing products that would discourage currency
speculation.

“Part
of what we are trying to do in the Central Bank is introduce a forward
market so that people can hedge that risk and then don’t feel any urge
to pre-liquidate outstanding dollar exposure,” Mr. Sanusi told Reuters
recently.

He
said there were indications that some people might be frontloading some
of their dollar obligations, resulting in the huge demand for foreign
exchange, a situation that would be ameliorated by a currency futures
market.

Sales promotion is
a direct inducement that offers extra values and incentives for the
consumer. Its major goal is to maximize sales volume and quicken the
sales process.

It comes through
reduction, discounts, commissions, and free sampling. It is an activity
that appeals more to the consumer’s purse, to make immediate purchase
decision of a specific brand.

Since it generates
sales that cannot be achieved by other means, it is important for brand
custodians to evolve a strategic action plan that deepens relationship
with the consumers. This is very important because I have discovered
overtime that some companies embark on sales promotion without any
relationship with the consumer. I will give an example to illustrate.

I am a customer of
a highbrow fashion outlet, though I must state here that the outlet has
a good data base of customers, but it all ends there. My other details
such as birthdays, wedding anniversary, and others should have been
documented as well.

My case here is
that it should not only be during sales promotion that I receive text
messages. Sales promotion should be a coherent branding strategy that
is hinged on a beneficial relationship with the consumers. This way,
brand loyalty is sustained. When all these happen, sale promotion would
definitely achieve desired objectives, as the brand becomes the
property of the consumer.

Sales promotion and consumer insights

While it is true
that not all consumers can be captured, a sampling method could be
adopted which can represent the views of an average consumer.

The role of
consumer insights here is to generate leads that can make the sale
promotion succeed. Some of the key insights are to ask probing
questions about consumer preference in terms of incentives, the nature
of the promotion, timing, and brand perception. All these go a long way
to make the sales promotion succeed.

This is because
today’s consumers are more concerned about an offer or extra incentives
given by the brand, and not only a brand promise. The sales promotion
activity should build customer equity, deliver worthwhile experiences,
and deepen relationships. It is indeed a call to action to connect
directly with consumers.

The incentive in
any sales promotion should be one that would motivate the consumers,
who should derive maximum benefits. They feel the burden in their
purses and this should translate to enormous gains for them. They
should gain extra value for what they have invested in – the brand.

The issue of
negative perception should also be addressed right from inception of
the sales promotion. An error can occur along the line and this may not
be deliberate on the part of the company. It becomes important to put a
mechanism in place to proffer immediate response in order to avoid
negative perception. Several brands have been negatively projected due
to the lack of a pro-active communication.

Sales promotion
offers a veritable platform to build brand image and as a result, a lot
needs to be ensured to eliminate any form of negative perception. It is
also not a period to offer expired products for sale. Consumers have
been ripped off through such acts and that is why the Consumer Advocate
Forum has taken up the gauntlet to checkmate these act.

Any brand that
fails to live up to its promise will be dismissed and destroyed. The
only way to engage in genuine bonding and connection with consumers is
to develop long term relationship built on trust, respect, and mutual
benefit. Sales promotion is that springboard to build an enduring
relationship with consumers.

Ayopo, a public relations specialist is the CEO of Shortlist Limited; shortlistprspecialists@gmail.com

Kayode Fayemi,
governor of Ekiti State, on Wednesday in Abuja, promised to partner the
World Bank on health, agriculture, education, infrastructure
development, and good governance.

The governor said
this was with a view to ensuring improved standard of living for the
people, as well as adequate development of the state.

Mr. Fayemi gave the promise when he paid a courtesy call on the World Bank acting country director, Foluso Okunmadewa.

“We are aware of
the role the World Bank has been playing in Ekiti State; our focus is
to ensure that the state is moved forward,” Mr. Fayemi said.

Ifueko
Omoigui-Okauru, the executive chairman of the Federal Inland Revenue
Service (FIRS), has said that the Value Added Tax (VAT) laws would be
reviewed to align with the General Tax System (GTS).

Mrs. Okauru said at the opening ceremony of the VAT Administrators
in Africa (VADA) conference in Abuja, on Wednesday, that Nigeria was
trying to simplify its VAT laws to attain the overall goals of the
system.

Zambia’s annual inflation slowed in October, official data showed on Thursday.

The Central Statistical Office (CSO) said in a statement that the drop was largely driven down by a decrease in non-food costs.

It said that inflation dropped to 7.3 percent year-on-year in October when compared with 7.7 percent in September.

Zambia, which is Africa’s largest copper producer, had targeted inflation of 8 percent by year-end.

But the Bank of Zambia govenor, Caleb Fundanga, told Reuters on Thursday he was confident a December print would be lower.

“Food inflation is well under control because of the good production of food,” he said.

South Africa’s
state power utility, Eskom, is financially sound and will be able to
service its debt, a senior treasury official said on Thursday.

Earlier, finance
minister, Pravin Gordhan, told a parliament committee the government
had extended guarantees to Eskom from 174 billion rand to 350 billion
rand to enable it to continue with its power generation programme
through 2017.

“Backed by these
guarantees … when they complete (new power stations) Medupi and
Kusile, the energy that is going to be generated by these power
stations should actually enable Eskom to service its debt,” Lungisa
Fuzile, head of asset and liability management at the treasury told the
same hearing.

MTN, Africa’s
biggest mobile operator, on Thursday, forecast a near 10 percent rise
in subscribers by year-end, reaping the dividend from billions of
dollars of spending on its networks.

The company said
subscriber numbers grew 4 percent in its third quarter, overcoming
intense competition and price cuts from rivals.

Strong growth in
Nigeria, Iran, and its home market of South Africa prompted the company
to lift its forecast for new users this year by 8.5 percent, to 22.9
million from 21.1 million.

MTN, which operates mobile phone networks across Africa and the
Middle East, has spent almost 100 billion rand on capital expenditure
over the last four years.

The Kenyan and
Ugandan shillings should strengthen next week, although minor political
uncertainty surrounding an election in neighbouring Tanzania is likely
to keep its currency in check.

Kenya’s shilling is seen firming, helped by dollar proceeds from sectors such as tourism, and remittances from Kenyans abroad.

“We favour a
stronger shilling going forward if, as expected, the euro makes further
gains in the days to come,” Bank of Africa said in a note.

“We also expect the local unit to receive support from strong
inflows from tourism, diaspora repatriation, and non-governmental
organisation proceeds – all of which could give the local unit impetus
to chart new levels,” it further said.