Making Money as a Short-Term Investor
If you are looking to invest some money that you intend to use in the not-so-distant future, then you face the challenge of the delicate balance between making a decent return on your investment and ensuring that you can get all of it back when you need it.
In seeking a place to invest or save your cash for the short term, your priority should be for you to get your money back at a particular time. This is crucial because you often need to have the money in a specific time to meet obligations such as a down payment on a house, wedding expenses, your children’s tuition, or to meet your budget for a scheduled vacation.
On the other hand, while you want to keep your money safe, you also want a decent return on your savings. It is unlikely that you will earn as much in a short-term investment as you would in a long-term financial instrument.
Long term investments usually offer greater returns, but their prices are more volatile than short-term investments. While the company stock price may rise multiple folds over several years, it could decline during the next few months. You may also face the challenge of finding a buyer for the long-term asset that you have purchased.
Short-term investments, however, are often highly liquid, allowing you to cash out quickly should the need arise.
But because short term investments often present lower returns than longer-term investments, some people do not bother to invest at all. You are better off investing it in an interest-earning instrument.
You should also avoid taking excessive risk in a search for higher returns. Unusually high yielding instruments present unacceptable and greater risk. In some cases, such instruments are disguised as Ponzi schemes or similar arrangements.
Suitable short-term investments are typically characterized by stability in value, liquidity and low transaction costs. These features mean that your money will be safe and accessible when you need to use it, which is a significant reason to have a short-term investment. If you are investing money for three (3) years or less, a few principles will help you.
- Set reasonable expectations because short-term investments typically have lower potential returns than long-term investments.
- Focus more on the safety of your investment than the return.
- A little extra return may not be worth the additional risk.
Consider the FBNQuest Money Market Fund offered by FBNQuest Asset Management. It is a pool of money collected from many investors to invest in securities like treasury bills, commercial papers, banker’s acceptances and certificates of deposits. It is well suited for and adaptable to any investor type.
The Fund offers attractive returns, safety and liquidity to short term investors. You are better off using the power of a collective investment scheme like this to access higher returns for your investment than what you could earn if you made the same investment by yourself.
Mitigating Unemployment and Labour Migration in Nigeria
Nigeria has seen a sharp increase in unemployment over time, with a current estimate of 33%. All age categories in Nigeria are affected by a serious unemployment problem, with young people bearing a disproportionately high share of the burden. When people don’t have work, it makes life difficult for them and their households. Note that this causes labour migration, as people leave the country in quest of better opportunities and income sources abroad. Unemployment is one of the key reasons why its citizens migrate their labour to other countries.
Nigeria’s economy has struggled to produce enough jobs to accommodate this expanding workforce due to the country’s high population growth rate, which causes a large number of job seekers to enter the labour market each year. SMEs could be essential in reversing this trend and creating jobs, but they face challenges such as restricted access to capital, inadequate business support services, and a challenging business climate. Additionally, highly qualified individuals leave Nigeria in quest of better opportunities abroad, depleting the country’s talent pool and widening the skills gap in critical industries.
It is important to emphasize that because of the interdependence of these factors, a multidimensional and all-encompassing approach is required to address labour migration and unemployment. To mitigate unemployment and labour migration in Nigeria, a variety of actions can be taken. A few of these include:
➢ Job Creation and Economic Diversification: Nigeria is extremely vulnerable to variations in the price of oil because of its dependency on fuel. Through the promotion of companies and sectors other than oil, economic diversification can boost job chances and reduce dependency on a single industry. In Nigeria, it is crucial to increase the variety of employment options. The establishment and growth of various businesses and sectors can also encourage the emergence of new occupations and positions. There is a higher chance of employment for people when there are more businesses.
➢ Provision of Adequate Infrastructure: Infrastructure improvements have the potential to boost economic growth and draw in industries that can employ workers. For businesses to invest in and create jobs, they need a strong infrastructure that includes a dependable power supply, efficient transportation systems, and digital connections.
➢ Support for Small and Medium-sized Enterprises (SMEs): Encouragement of entrepreneurship and assistance for small and medium-sized enterprises (SMEs) can promote innovation, generate job opportunities, and boost economic growth. Agriculture is a sector with a lot of SMEs. It has a great deal of potential to boost food security, minimize rural-urban migration, and create jobs. By giving farmers access to funding, cutting-edge farming techniques, and market connections, production can be increased and jobs created throughout the value chain of agriculture. Programs for training, mentoring, and access to financing and business development services also support these businesses.
➢ Changes in Business Policy: The development of many successful firms, especially SMEs, has been hampered by culpable policies and deregulation laws. Business owners, producers, and other market participants take advantage of policy gaps to perform arbitrary functions. Therefore, reviewing and updating corporate policies, regulatory frameworks, and labour laws can help to foster a climate that encourages investment and job growth. In addition, employment prospects may increase as a result of streamlining administrative procedures, lowering corruption, and guaranteeing fair competition for all enterprises.
Although it is a difficult problem to solve, mitigating unemployment and labour migration is crucial for Nigeria’s economic progress. Another strategy for this development is to strengthen the institutions of the labour market, lower company costs by streamlining regulations and lowering taxes, improve the business environment, and improve education, safety, job accountability, and security. By doing this, employment opportunities will be generated, and the general public’s professional development will be encouraged. Lastly, the government’s main priorities for sustainable solutions should address societal issues, attract investment, enhancing skill development and business climate.
Emmanuel Otori has over 10 years of experience working with 100 start-ups and SMEs across Nigeria. He has worked on the Growth and Employment (GEM) Project of the World Bank, GiZ, and Consulted for businesses at the Abuja Enterprise Agency, Novustack, Splitspot and NITDA. He is the Chief Executive Officer at Abuja Data School.
Improving Business Growth With Data Analytics: Why it’s a Priority
By Kehinde Ogundare
Running a business in Nigeria can be an arduous task. Business owners face fierce competition as they strive to secure market share, acquire new customers, and enhance their productivity and profitability.
The business environment is getting more competitive. According to World Bank data, 97,988 new businesses were registered in Nigeria in 2020 (the last year for which numbers are available). The country’s rapidly accelerating tech sector provides further evidence of that increased competitiveness.
A report from McKinsey found that the number of startups in Nigeria and other African companies grew threefold between 2020 and 2021.
The growth of a business, whether it offers a product or service, is closely linked to its customer base. In order to remain competitive and retain these customers, it is crucial to use data-driven insights to inform business decisions and facilitate a successful customer experience.
Understanding data analytics
In the simplest terms, data analytics is about making sense of all the data that a business gathers and using it to help the business improve its decision-making or to gain insights into a particular subject or problem.
It enables entrepreneurs to make profitable decisions, drive innovation, anticipate market trends, and manage budgets. However, a report by KPMG that analyzed the usage of data and analytics in Nigeria’s business environment reveals that 56% of organizations in Nigeria base their decision-making on intuition rather than data. This shows that businesses are yet to grasp the true potential that data can bring to decision-making.
Another report highlights that, on average, organizations plan to spend at least N50 million annually to develop data and analytics capabilities, indicating the potential for businesses seeking to integrate these practices. However, just 16% of organizations have a defined role for their Chief Data Officer, and many merge data analytics responsibilities with the Chief Financial Officer (CFO), highlighting a talent gap.
Finding the right solution
A strong BI platform can gather data from across different software used by different departments, such as sales, marketing, finance, and inventory, to help the user make sense of the data through simple-to-understand charts, graphs, and other visual tools. This, in turn, facilitates strategic decision-making.
Zoho, for example, provides a robust BI solution that comes with self-service data preparation and augmented analytics. It has strong AI/ML capabilities, enabling users to use natural language commands such as “show me our revenue growth last quarter” to get charts showing just that. Zoho Analytics can also be embedded in any third-party software, so users do not have to log into a new app just to view reports.
In today’s world, where there is high competition for customer attention among businesses along with organizational operations driven by technology, data analytics enables a business to optimize performance and make data-driven decisions. Having real-time insights into how their business is performing and the current market trends can help business owners adapt to the fast-changing landscape and stay relevant.
Kehinde Ogundare is the Country Manager for Zoho Nigeria
6 Ways Google is Working With AI in Africa
Lounging on Labadi Beach, browsing the shops on Osu’s Oxford Street, ending the day with a meal in a local chop bar: This is Accra, Ghana’s bustling capital city. It’s also where, in 2018, we opened our first AI research centre in Africa.
The centre houses research labs that explore how we can use AI to help solve pressing problems affecting millions of people both locally and globally, like mapping buildings in remote locations to provide better electricity. Our local researchers collaborate with research teams across the globe to work on AI-based tools to create change for communities worldwide, including in various countries across Africa.
Here are six AI projects we’re working on in our Accra research centre and beyond and how we’re hoping they’ll make a difference.
Even with satellite imagery, it can be difficult to map buildings in remote locations. When these buildings go unmapped, it can make things like planning infrastructure difficult. Our Open Buildings dataset project, launched by a team in the Accra research centre, combines AI with satellite imagery to pinpoint the location of buildings. That helps governments and nonprofit organizations understand the needs of residents and offer assistance. In Uganda, for example, the nonprofit Sunbird AI is using the dataset and working with the Ministry of Energy in Lamwo district to study villages’ electrification needs and plan potential solutions, such as prioritizing electricity in important areas like commercial centres. And we’re continuing to expand our Open Buildings dataset to see how it can help communities in more areas. In addition to various countries in Africa, the dataset now covers 16 countries in Southeast Asia, including Bangladesh and Thailand.
The United Nations has reported that half of the world’s least-developed countries lack adequate early warning systems for disasters, including floods. In West and Central Africa specifically, where flooding can be severe, early warning systems could enable better preparation and potential evacuation. Lifesaving technology, like our Flood Forecasting Initiative, can help residents stay safe and give governments time to prepare. We’re using AI models to predict when and where riverine floods will occur in 80 countries worldwide, including 23 in Africa. Our Flood Hub platform displays the forecasts up to seven days in advance, with detailed inundation maps — showing different water levels predicted in different areas — so people know what to expect where they live.
Locust infestations can have a devastating effect on food crops. Through collaborations with AI-product-focused company InstaDeep and the Food and Agriculture Organization (FAO) of the United Nations, our team at the Google AI Center in Ghana is helping to better detect locust outbreaks and enable farmers to implement control measures. The AI Center team is working on building a model that forecasts locust breeding grounds using historical data from the FAO and environmental variables like rainfall and temperature.
Improving maternal health outcomes with ultrasound
Ultrasounds can be crucial for identifying potential complications during pregnancy. In recent years, sensor technology has evolved to make ultrasound devices significantly more portable and affordable. Globally, we have been working on building AI models that can read ultrasound images and provide important information to healthcare workers. In Kenya, for instance, we are partnering with Jacaranda Health to help improve our ultrasound AI technology, with a focus on using handheld ultrasound devices that don’t need to be attached to larger machines. This can help people who aren’t trained to operate traditional ultrasound machines to acquire and interpret ultrasound images and triage high-risk patients simply by sweeping the handheld probe across the mother’s belly.
Helping people with non-standard speech make their voices heard
We built Project Relate, an Android app that uses AI research, to help people with non-standard speech communicate more easily. After recording 500 phrases, users receive a personalized speech recognition model. Now available for user testing in Ghana, it can transcribe speech into the text; use a synthesized voice to repeat what the speaker has said; and engage Google Assistant to complete tasks, such as asking for directions, playing a song or turning on the lights.
Teaching reading to children worldwide
Due in part to the effects of COVID-19, it’s estimated that about two-thirds of 10-year-olds globally are unable to read and understand a simple story. Read Along, Google’s AI-based reading tutor app and website is helping to increase child literacy. Diya, the in-app reading buddy, listens to the speaker reading aloud, offering support when they struggle and rewarding them when they do well.
Over the past three years, more than 30 million kids have read more than 120 million stories on Read Along. That progress helps the children, but it also affects their families. For example, one of our Lagos users, William, began using the app when he was 10 years old. He went from being able to read for three minutes at a stretch to reading for 90 minutes at a time. “I am more confident about William’s future because he can read well,” said William’s mom, Martha, “Not just reading well — he now loves to read.”
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