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ELAN Urges FG To Consider Equipment Leasing For Growth In Recession

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The Equipment Leasing Association of Nigeria (ELAN) has enjoined the Federal Government to consider equipment leasing option to revitalise the national economy, especially in this period of recession.
Speaking at a press briefing to address recent developments in the economy, ELAN’s Executive Secretary, Andrew Efurhievwe, commended the Federal Government over the diversification and other initiatives to drive the economy towards achieving growth out of this recession.
He noted that equipment leasing is considered as a major financing option, which can be used to facilitate access to the much-needed equipment necessary for national development, especially when considering the volume of funding required in facilitating these growth during season of recessions. Citing the examples of climes that have maximized this option he said, “In the United States of America for instance, leasing remains the single most widely–used method of external finance, representing 30% of investment in capital equipment.
Many developing countries such as Brazil, Indonesia, Pakistan Zambia, South Africa and Ghana, are equally using leasing to stimulate investment and create jobs. In these countries, leasing is at the forefront of investment in the extractive industries, transportation, agriculture, telecommunications, roads and other infrastructure.
“Leasing is vital for economic growth and poverty reduction. The link between leasing, capital investment and economic growth has been established globally for some time now. The conclusion is that capital investment stimulates economic growth. In turn, leasing stimulates capital investment in countries where it is well developed, for leasing enables businesses and even governments (at the local and national level), to acquire capital assets for production. The acquisition and use of productive assets leads to productivity, income generation as well as job creation.”
Considering the huge benefits of equipment leasing, it is imperative for Federal Government to tap into the benefits of equipment leasing in order to use it as a major instrument for upgrading and maintaining sectoral infrastructures for national economic development.
He stated the influential benefits of leasing to all sectors of the economy to include, no collateral requirement with more flexible payment options, adding that occasionally no down payment is required. “This frees up capital for extra expenditure; 100% or more financing which include hardware, software, installation, maintenance, training, all of which can be encompassed in the lease contract” he added.
The Executive Secretary revealed that, leasing has gained significant global recognition as a creative financing alternative for the acquisition of capital assets, in Nigeria, it has continued to contribute to national development, creating wealth and improving the economy. In the last 10 years, the leasing industry added assets worth over N5.9trillion to capital formation in the Nigerian economy. In 2015, outstanding lease volume was estimated at N1.1trillion, up from N869 billion in 2014, representing a growth rate of 27.3 percent as against 11.3percent in 2014.
The impactful visibility of leasing is increasing in various sectors of the economy and exhibits a brighter future given its developmental attributes.
Based on the developmental attributes of leasing, the Association called on Government to embrace leasing as a major instrument for upgrading and maintaining infrastructural facilities across the country.
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Education

STEM education in Africa: Essential to the continent’s development

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Matthew Odu

STEM education which primarily revolves around ‘Science, Technology, Engineering and Mathematics’ has become highly sought after by learners all across the world and is crucial in encouraging a nation’s development.

Recent reports suggest that over the next 5 years, STEM jobs will grow by 13% – particularly in the areas of Computing, Engineering and Advanced Manufacturing. This shift in the global labour market should be a central focus of African leaders as the United Nation’s (UN) projections show that by 2035, the working population of the continent will surpass that of the rest of the world.

I join the call led by Stefania Giannini, assistant director-general for education at UNESCO – who has asked governments to put education investment at the centre of their post pandemic recovery. The past 12 months have witnessed the most severe disruption to global education systems in history, which during the peak of the crisis – led to more than 1.6 billion learners out of school. In the global south, school closures are likely to erase decades of progress made by educators.

As education expenditure continues to increase in the west and in the far east, the opposite is true in Africa. Millions of our children are gifted in science, math and physics yet the vast majority are not being given a fair chance to compete in this fast-evolving world. The supply of quality education is lagging behind.

A new report released earlier this week by The Education Finance Watch, jointly commissioned by the World Bank and UNESCO, revealed that two-thirds of low- and lower-middle-income countries have cut their public education budgets since the onset of the COVID-19 pandemic. In comparison the UK’s Department for Education recently announced a new £700M plan to help young people in England catch up on lost learning due to the pandemic and in 2020, public spending on education in China reached 3,633.7 billion yuan.

“The learning poverty crisis that existed before COVID-19 is becoming even more severe, and we are also concerned about how unequal the impact is,” Mamta Murthi, World Bank vice president for human development, said in a statement.

What is the African response?

Recently many of us have been horrified at the images circulating on social media showing dilapidated school buildings in Nigeria, with no infrastructure being led by teachers who haven’t received salaries in months. This is totally unacceptable and should not be tolerated by the educators on the continent.

During a recent HESED webinar themed ‘Next generation School Leadership’ we engaged with teachers in Nigeria who expressed a willingness to push their students more in the classroom but felt the situation impossible without adequate training, modern infrastructure and an improved curriculum.

Fortunately, Covid-19 has not just brought about the need for change, it also points a way forward and for parents, online learning is one of the bright spots. It is safe to say that the success of online STEM education has made a clear case for adopting a hybrid model.

HESED is an initiative and my own personal contribution to providing quality education to Nigerians, as a borderless structure with an unrestricted curriculum. The e-learning platform compliments the current school system by using a national curriculum with the option of studying an international syllabus.

Quality STEM Education is the new normal.

 

By: Matthew Odu, A Fellow of Institute of Chartered Accountant of Nigeria

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Logistics

Digitalization in logistics – A user’s experience

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Geraldine Mamburu, Founder & MD PDQ Logistics (Source: Geraldine Mamburu)

In some cultures, children are sometimes named after events that would have taken place close to or during their birth.  Jokes around naming children Quarantine Buthelezi, Social-distance Moyo, or Pandemic Ndlovu, were circulating in 2020 and made for a good laugh, however, one couple in India took this a little too seriously and named their twin boy and girl, Corona and Covid.

Looking back, I do not recall ever coming across a proposal to name children after any of the variations around the word digital, after all, every second Point of View that was being released was around digitalization and digital transformation. It got me thinking, and realised that a lot of these terminologies are thrown about in the corporate space, but what does this actually mean to the end-user? How does the user interact, make use of, and appreciate digitalization?

Being in the logistics space has found me interacting with a lot more digital platforms over and above e-commerce, social media, and the all-so-dreaded-virtual-meeting platforms. My favourite most convenient app (which is currently the best thing ever since sliced bread in my books) has got to be Truck Fuel Net (TFN). TFN offers a cloud-based, real-time software management solution that helps me manage all my on-road refuelling and driver spend needs. Given that the bulk of operational costs in road freight is fuel, one must have their finger on the pulse and be on the constant lookout for the best price, over and above monitoring driver efficiency. The TFN Management system helps me decide, where, when, and how much the driver can refuel.

Sidebar – I’ve been driving a Ford Kuga 1.6 AWD for a few years (NB: No fire starter jokes allowed) and for such a small engine, that car can chow fuel – I’m talking 11 – 12km/100! I never used to fill up because it was painful watching all that money go down the drain. When I filled up the truck for the first-time round, let’s just say I needed to sit down because I felt a little dizzy.

Every day, we transport goods worth millions of Rands. It goes without saying that the safety and security of the driver, the goods we carry, as well as the trucks themselves, is of paramount importance. TFN’s solutions enable us to run a cashless operation. In the road freight sector, cargo, equipment, and increasingly drivers, are all targets for criminals and if we can take one incentive out of the equation, the better off we are.

Whilst on cashless operations, I would like to give SANRAL a standing ovation. Now, now, before your eyes roll all the way to the back of your head, let me just say that we might have qualms as “Gautengers” about how they went about the e-toll saga, but their app is such a lifesaver! With an e-tag fitted on the vehicle, I can manage my account quickly and securely. The app works in real-time, allowing me to be kept informed of my spend on vehicles. And lo and behold when I do forget to top up (because …you know …admin), I immediately get a notification the moment my funds are depleted, allowing me to top up immediately whilst the truck is still on route, contributing to a seamless operation. Well done SANRAL. Sometimes the government does get it right …sometimes.

The South African logistics sector contributes about 12% towards the GDP, according to Stellenbosch University and the World Bank. Of that percentage, approximately ¾ is attributed to road freight alone. With such modestly generous figures, it’s encouraging to see various organisations come up with digitally inspired solutions to cater to this industry.

This brings me to my most used platforms, Car Track and Tracker. I can only assume that before the advancement in technology, one must have had to have a great deal of faith, composure, and trust. Not to say that we no longer require these skills, but the ability to log onto these apps and be able to get real-time updates on the exact location of a customer’s goods in transit certainly prevents a blood vessel or two from popping (in the event that you cannot reach the driver.) As for Google Maps, it goes without saying, that this is the backbone of my interaction with these tracking platforms.

There are a bunch of other digital platforms such as Linebooker that I am still to explore as the business continues to grow. However, it’s been interesting to know that before we start thinking self-driven trucks (think of that one scene from Terminator, were the machine is operating the truck…but I digress) and other seemingly complex technological advancements aimed at this industry, there are still digital channels that make the day to day operations in logistics that much easier.

What other digital platforms are you using or have you heard off that have made a world of a difference in the logistics space?

Article by: Geraldine Mamburu, Founder & MD PDQ Logistics

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Technology

Three African-American Female Engineers Who Changed Our World

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Image source: Pexels

The fields of science, technology, engineering, and mathematics (STEM) produce innovation that drives us forward as a species. Despite the fact that women and people of color have often been at the forefront of new discoveries, their representation within the STEM fields is historically low.

As culture progresses in understanding toward the value of a diverse workforce, those seeking out the future leaders of STEM are reaching out to underrepresented populations – specifically, women and people of color. One such outreach is ‘Introduce a Girl to Engineering Day’, a global campaign established by the National Society of Professional Engineers.

The event, which takes place this February 25, is run by teachers, volunteers, and STEM professionals, and includes engaging engineering-based learning activities that encourage young women to develop problem solving skills and indulge their interest in science and engineering.

The road to their future success was paved by the intrepid women who came before them, including these three remarkable African-American female engineers:

  • Kimberly Bryant: Seeking to create an inclusive technology learning space for young women of color, Ms. Bryant created the not-for-profit coding camp Black Girls Code. As of late 2019, the organization has 15 chapters, and Ms. Bryant has been recognized as a White House Champion of Change for Tech Inclusion as well as one of 2013’s 25 Most Influential African Americans in Technology.
  • Dr. Patricia Bath: An early pioneer of laser surgery for cataract treatment, Dr. Bath was the first female member of the Jules Stein Eye Institute, the first female African-American surgeon at UCLA Medical Center, and the first female leader of a postgraduate ophthalmology training program.
  • Alice Parker: A housewife from New Jersey, Mrs. Parker developed and filed a patent for a gas-powered central heating system inspired by cold coastal winters. Her filing came before both the Women’s Liberation Movement and the Civil Rights Movement, a remarkable achievement for an African-American woman during her time.

More stories of African-American female engineers and  female leadership in engineering can be seen here:

To discover more about Introduce a Girl to Engineering Day, visit NSPE online.

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