- welcome and introduction
TRANSCRIPT
Agenda
Welcome and Introduction 11.30-11:35am Moderator
Nancy Illoh-Nnaji
Welcome Address 11:35-11:40am Demola Sogunle
CE, Stanbic IBTC Holdings
Nigerian Economic Overview 11:40am - 11:50am Muyiwa Oni
Regional Head of Equity Research, West Africa, Standard Bank
Group
ACTS Offerings 11:50am - 12:00pm Luthando Vuba
Head: Africa China Trade, Standard Bank Group.
Guamao Offerings 12pm - 12:10pm Mike Zheng
Overseas General Manager , ZheJiang International Trading Supply
Chain Co., LTD.
Panel Discussion: 12:10pm – 12:30pm Luthando Vuba
Head: Africa China Trade, Standard Bank Group.
Muyiwa Oni
Regional Head of Equity Research, West Africa, Standard Bank
Group
Omoyemi Chukwurah
Managing Director, Seams and Stitches Nigeria Ltd
Mike Zheng
Overseas General Manager , ZheJiang International Trading Supply
Chain Co., LTD.
Questions and Answers 12:30pm - 12:40pm
Closing Remarks Ade Otukomaya
Head, Africa-China Banking, Stanbic IBTC Bank
- Welcome and Introduction
- Welcome Address
- Nigerian Economic Overview
SUMMARY OF KEY POINTS
12
34
5
Covid -19 and how it is
affecting our world
GDP growth trend and outlook
Inflation drivers and
outlook
FX outlook and current account position
Government revenue and
debt position
Source: NCDC; Standard Bank Research
A snapshot of COVID-19 Cases in Nigeria as at 22/08/2021
• We still expect oil prices to hover around the $70/barrel range in expectations that supply will still outweigh demand. The
downside to this view remains the case of the rising new variant case which is causing new restrictions in some countries.
• While interest rate hikes are still far in the future, the market has been debating whether rising inflation could get the Fed to move
sooner to end its bond-buying program and start its rate-hiking agenda.
• Nigeria vaccination: 2.52million people (126% of the 2million people targeted for the first phase) received their first dose and
1.4million (70% of target) were fully vaccinated.
• The second phase of vaccination is expected to start this August.
0
500
1000
1500
2000
2500
8-Apr 8-Jun 8-Aug 8-Oct 8-Dec 8-Feb 8-Apr 8-Jun 8-Aug
New Cases 7-Day Moving Average Total Samples Tested 2,727,834
Total Confirmed Cases 187,023
Recovered 168,455
Recovery Rate 90.1%
Deaths 2,268
Fatality Rate 1.2%
RISING NUMBER OF NEW COVID-19 CASES
TRADE, ICT, MANUFACTURING AND CONSTRUCTION DRIVE Q2:21 GROWTH
Key sector growth rates
Source: National Bureau of Statistics; Standard Bank Research
-8.0
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
-40.0
-30.0
-20.0
-10.0
0.0
10.0
20.0
30.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017 2018 2019 2020 2021
%%
GDP Growth (RHS) Agriculture Trade ICT
Manufacturing Oil Construction Real Estate
AGRICULTURE AND ICT SECTORS TO DRIVE 2021 RECOVERY
Source: National Bureau of Statistics; Standard Bank Research
Historical GDP growth
-4
-2
0
2
4
6
8
10
12
14
16
1991 1999 2007 2015
%
GDP Decade average
Growth Expectation
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
2016 2017 2018 2019 2020 2021F 2022F 2023F 2024F
GDP growth (y/y)
0
5
10
15
20
25
Mar
-10
Jul-
10
No
v-1
0
Mar
-11
Jul-
11
No
v-1
1
Mar
-12
Jul-
12
No
v-1
2
Mar
-13
Jul-
13
No
v-1
3
Mar
-14
Jul-
14
No
v-1
4
Mar
-15
Jul-
15
No
v-1
5
Mar
-16
Jul-
16
No
v-1
6
Mar
-17
Jul-
17
No
v-1
7
Mar
-18
Jul-
18
No
v-1
8
Mar
-19
Jul-
19
No
v-1
9
Mar
-20
Jul-
20
No
v-2
0
Mar
-21
%
Headline inflation MPR 1-y T-bill yield
INFLATION COOLING OFF AMID BASE EFFECTS AND SLOWER RISE IN FOOD
INFLATION
Inflation, policy rate and 1-y T-Bill yield
Source: CBN; NBS; Standard Bank Research
300
350
400
450
500
550
Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21
NAFEX Parallel -
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
450.00
Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21 Jul-21
USD
'mn
USD/NGN Rate Avg. daily turnover in the IEFX Market
FX: PARALLEL MARKET RATE JUMPS C.500; LIQUIDITY PRESSURES PERSIST
Source: CBN,FMDQ
22.43
12.65 12.65 13.02
16.27
19.1119.94 19.49
23.00
30.00
0
5
10
15
20
25
30
35
2012 2014 2016 2018 2020
%
18 19 18 17
22
29
45
62
54
58
83
0
10
20
30
40
50
60
70
80
90
2010 2013 2016 2019
%
Debt-to-GDP (%) Debt service-to-Revenue (%)
REVENUE MOBILIZATION REMAIN MAJOR SOURCE OF FISCAL PRESSURE
Source: Budget office, Debt Management Office, Standard Bank Research
-0.94
-1.64
-2.37
-3.3-2.9
-2.2
-3.8-4
-3.5
-3
-2.5
-2
-1.5
-1
-0.5
0
2014 2015 2016 2017 2018 2019 2020
% o
f G
DP
Source: Budget office, NBS, Standard Bank Research
Recent Financing Plans• The Senate approved issuance of not more
than $6.18billion Eurobond for financing of part of the deficit contained in the approved 2021 Appropriation Act.
• The IMF-Special Drawing Rights (SDRs) allocation of $3.35 billion to Nigeria is expected to further boost FX reserves.
Nigeria’s Sovereign Ratings;
S&P and Fitch downgraded Nigeria's credit rating a notch lower in 2020 as the twin shocks
of Covid-19 and lower oil prices significantly impacted fiscal revenues in the absence of no
adequate buffer.
S & P: B-Fitch: B
FISCAL DEFICIT AND FINANCING PLANS
Fiscal Deficit as a % of GDP
2018 2019 2020 2021f 2022f 2023f 2024f 2025f
GDP (% yr) 2 2.3 -1.9 2.0 3.0 3.1 4.7 4.9
Current account (USDbn) 12.4 -17 -16.8 -14 -11 -9 8 12
CPI (% yr) average 12.2 11.4 13.2 15.5 12.4 11.4 11.8 11.5
Policy rate (%) – end period 14 13.5 11.5 11.5 11 11 11 11
5-year rate (%) – end period 15.8 10 3 13 12.5 11.5 11 11
USD/NGN – end period 365 365 400 430 440 460 460 460
NIGERIA: SUMMARY
Forecasts
Source: National Bureau of Statistics; Standard Bank Research
- ACTS Offerings
AFRICA CHINA TRADE SOLUTIONS
“We connect clients to opportunities.We connect African buyers to Chinese
suppliers, and African suppliers to buying opportunities in China.
We connect our clients to seamless Africa-China Trade.”
CLIENT VALUE PROPOSITION
IMPORT• We provide a one-stop-
shop for you to easily
find Chinese suppliers,
through our Import
Partner – Guomao.
• You’ll receive favourable
payment terms: 20%-
30% deposit, 70% once
goods are ready to be
shipped.
• Our Import Partner
offers additional support
to you by undertaking
inspection on your
behalf to check quality
and quantity is in order.
EXPORT• We help you access the
China market through our
vetted export agents who
help you get export-ready
or to assist you across
the export value chain.
• We also can assist you
with your exports by
loading your products
onto the ICBC e-Mall, an
e-commerce platform
provided by the biggest
Bank in China, which is
used by their large
customer base.
TRAVEL• Are you in the hospitality
industry? We can assist
you to get your services
marketed in the Chinese
market through the ICBC
e-Mall.
• We can also help you
to target your marketing
for Chinese tourists
travelling in Africa
through the ICBC
I-Go programme,
a rewards programme
for the ICBC
customers.
AFRICA-CHINA TRADE SOLUTIONS
AFRICA CHINA TRADE – IMPORT SOLUTION
AGRICULTURE TOOLS & EQUIPMENT
No. of Units
Model/Description of Unit(s)
1SINOTRUCK HOWO 6*4 DUMP TRUCK LEFT HAND DRIVE
2 Sino Howo A7 6x4 Tractor Truck
3
Sino Howo 7 6x4 Tractor
Sino Howo7 6x4 Dump Truck
3 Axel Flatbed Semi-Trailer
1 Sino Howo 7-Water Bowser
2 Sino Howo 7 Dumper
1 Sinotruck Howo 8x4 Dump truck
2 40 Feet 3Axles Flatbed Semi-trailer
1 6x6 Howo Water well drilling machine and parts
1 Sino Howo 7 6x4 Concrete mixer RHD 14 CBM
2 Sino Howo 7 8x4 Concrete mixer RHD 16CBM
1 Sino Howo 6x4 29.2m Concrete pump truck
1 Concrete batching plant - mixer truck
Items
Axe Head with wood handle
Pick Black color
Matchet with Wood handle
Hoe head Cock Brand
Hoe handle
Shovel Black coating and grip
Sickle
Shovel 2kg
Blue PVC Layflat Hose
Orange PVC Suction Hose
Stainless Connector
Stainless Clamp
Hoe Head
Hoe handle
Matchet with Wood handle
Matchet with PVC handle
Slasher, with PVC handle
Five rows maize planter
Twelve Discs Disc Harrow
Nine rows wheat planter
SINO TRUCKS MEDICAL – COVID 19 RESPONSE
Items
Disposable Medical 3ply Surgical Mask
KN95 Surgical mask
KN95 Medical mask
Disposable KN95 mask
Isolation gown
Mop caps
Shoe overlays
Safety goggle
Covid rapid testing kit
Receive
PaymentsExport
Prepare
for Export
Navigate Regulator
Requirements
Establish Market
Access
African
Exporters
Chinese
Importers
• Buyers
• Partners with access to Buyers
• Virtual Matchmaking
• ICBC E-Commerce platform: GETS
By leveraging our partnership with ICBC, the world’s biggest bank, as well as a number of other reputable off-takers, Standard connects you with importers in China, providing clients with an unrivalled competitive advantage for Africa China Trade.
Zimbabwe team focused on exports of commodities such as (but not limited to) macadamias*, tobacco and crocodile skins.
Exporters can engage with buyers via physical & online sales channels and matchmaking events.
*Protocol in place for exports to China
CONNECTING YOU TO REPUTABLE BUYERS IN CHINA
20
VIRTUAL MATCHMAKINGLEVERAGING DIGITAL CAPABILITY FOR OUR EXPORT SOLUTION
In 2020, due to the challenge of the pandemic for physical travel and physical gatherings, we pivoted to Virtual Matchmaking events. We used these to connect our African exporters to Chinese off-takers who were interested in alternative markets or African products:
• The 1st one was held in October 2021 with 23 Exporters participating with over 50 Chinese off-takers.
• The first event was successful and then we went on to host two more in November and December 2021. Matchmaking sessions are product focused, thereby bringing buyers and suppliers of specific products
• A total of 65 African companies participated across the 3 Virtual Matchmaking events in Q4 of 2020
• Some of the products were Macadamia, Cashew, Coffee beans, Cocoa bean to mention a few
• In 2021: This now a quarterly event
AFRICA-CHINA EXPORT INITIATIVESCAETE AND CIIE
HOW WE SUPPORT OUR CLIENTS WITH THEIR CHINA IMPORTS
Prosep Chemicals provides a total water management system in South Africa and imports goods from Chinawhen developing water management solutions for clients. CEO of Prosep Chemicals, Steve Evans, approached Standard Bank’s Africa China Banking division to assist with sourcing trusted suppliers and facilitating a visit to China.
Assisted Prosep Chemicals to identify the right suppliersStandard Bank introduced Steve to the China Trade Agent, who assisted in making the travel arrangements for Steve, identifying the right suppliers for Prosep Chemicals and setting up meetings between Steve and the suppliers across China.
Navigating language and cultural barriersDuring the trip to China, the agent accompanied Steve to assist in communicating effectively with the potential suppliers.
Improving Cross-Border Payment EfficienciesPreviously, Prosep Chemicals would need to make a 50% advance payment before goods in China would be manufactured and the balance of payment prior to shipment. With the introduction of Standard Bank’s Africa China Trade solution, Prosep Chemicals is now able to make a 20% advance payment with a 90-day letter of credit, ensuring that quality goods will arrive as per the company’s specifications.
- Guomao Offerings
目 录 C O N T E N T S
About Guomao01
Quality of China02
Guomao's Roles03
01
About Guomao
Have you encountered pain points in the process of your trading with China
Introduction of Guomao
21 years Experience in International trade
➢ Full quality control
⚫ We have a professional team of international lawyers, with
which trade risks to suppliers can effectively be reduced
➢ Reducing the risk of supplier fraud
⚫ As the only partner of Stanbic IBTC Bank in China and
one of the largest foreign trade companies in China, we
have TT, LC, DP and other payment methods to ensure
the security of Your Business and capital.
➢ Varied kinds of Payment Terms
⚫ We are also an AEO(Authorized Economic Operator),
so the clearance of goods exported from China to
Nigeria customs will be much easier and faster.
➢ AEO Advanced Customs
Certification & Clearance
⚫ Guomao is an enterprise with 21 years experience in
foreign trade. We provide services to 3,500 foreign
Clients. We have accumulated and deposited a batch
of almost 10,000 high-quality suppliers.
⚫ Together with the professional QC team, suppliers'
background inspection can be carried out before
placing orders and quality control of the products are
ran before loading and sending to customers.
Specialised Industry of Guomao
C o n s t r u c t i o n a n d M i n i n g E q u i p m e n t
( X C M G , S H AN T U I S I N O M AT C H S I N O T R U K )
A g r i c u l t u r e E q u i p m e n t
( Y T O, Z O O M L I O N , M E Y E R , A M D )
Specialised Industry of Guomao
P l a n t P r o d u c t i o n L i n e E q u i p m e n t
S o l a r P r o d u c t s ( B r a n d : J I N K O , J A , Ta l e s u n , L o n g i )
Specialised Industry of Guomao
A m u s e m e n t E q u i p m e n t
A l l k i n d s o f P a r t y Te n t
02
Quality of China
Quality of China
www.qualityofchina.cn
03
Guomao's Roles
Guomao plays an important Role in Africa-China Business
Stanbic IBTC ACTS Team is our Best Choice !
One-stop service to facilitate importers’ customer satisfaction in a seamless
way.
1. Saves you r t ime by p lac ing and tak ing cha rge o f you r
who le o rder
2. Guomao’s who le spec ia l i sed one -s top expo r t se rv i ce wi l l
make o rder execu t ion eas ie r ;
3 . Guomao i s S tanb ic IBTC Bank ’s on ly pa r tner, t he re fo re
j us t f ee l f ree to communica te w i th the ACTS team and
Guomao any t ime you need he lp .
1 . Produc t ’s Qua l i t y ;
2. R isk in f und t rans fe r ;
3 . Supp l ie r R isk ;
4 . Expo r t and impor t p rocesses ;
Easier, more efficientHigh risk Business Reduction On
Some thoughts on China-Africa Trade
COSCO Haikong: net profit in the first half of the year
increased by 3162% year on year
On 7 July, COSCO announced that it expected to achieve a net
profit of 37.093 billion yuan in the first half of the year, compared
with about 1.137 billion yuan in the same period last year.
With the changes of bus iness envi ronment between Af r ica
and China and the impact o f Vi rus spreading, Af r ica and
China Bus iness s t i l l face b ig chal lenges.
1
With the rap id development of China -Af r i ca Trading Business , the
indust ry of agr icu l tu re , const ruc t ion and other indust r ies is
growing s t rong ly now and in fu ture .However expor t the products
which need in China f rom Afr ica to China has a lso become a
t rend .
2
Unl ike before, more and more c l ients have s tar ted paying
more at tent ion to the qual i ty o f product, fu l l -af ter sa les
service and bus iness secur i ty.
3
Panel session 'Facilitating Africa-China Trade: The role of Stanbic IBTC Bank'
Luthando Vuba
Head, Africa China
Trade, Standard
Bank Group.
Muyiwa Oni
Regional Head of
Equity Research,
West Africa,
Standard Bank
Group
Omoyemi Chukwurah
Managing Director,
Seams and Stitches
Nigeria Ltd
Mike Zheng
Overseas General
Manager , ZheJiang
International Trading
Supply Chain Co.,
LTD.
Q and A Session
Ade Otukomaya
Head, Africa China Banking, Stanbic IBTC Bank
- Closing Remarks
Thank you Contact our Africa-China Banking CentreEmail – [email protected] – 01 422 0006
Contact the Guomao Team
Zhejiang Interational Trading Supply Chain CO., LTD
Overseas General Manger(Guomao): Mike Zheng
Whatsapp : 00 86 137 8346 9298
Wechat : 0086 150 5867 0638
E-mail : [email protected]