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Coca-Cola looks to expand its investment in The Ivory Coast

3 May 2016 Comments (0) Africa, Business, Featured

Coca Cola Ivory Coast

Coca-Cola has invested more money into its already substantial holdings in The Ivory Coast.

The multinational giant that is Coca-Cola is no stranger to emerging markets and has never been afraid to take its eponymous leading brand to new shores. Africa is actually not a new market for Coca-Cola, as the company has promoted and sold its carbonated drinks on the continent for some time. However, with the Ivory Coast showing particularly robust economic growth, Coca-Cola has decided to increase its level of involvement with the West African nation.

Rather than simply viewing the country as a revenue stream of sales, Coca-Cola now intend to invest in the Ivory Coast as a source of production for both raw materials and fruit juice. It is a move that makes logistical and economic sense.

Improving company image

Through the sponsorship of football tournaments, heavy advertising and socially responsible welfare projects, Coca-Cola has already established itself as a familiar brand name across Africa, and the Ivory Coast is no exception. In fact, the capital city of Abidjan has been home to Coca-Cola’s headquarters for export in West Africa for several years. This office oversees export to 11 African nations and Coca-Cola brands are popular across West Africa. The recognition of the brand has been strengthened by co-operative efforts with major aid organizations that have helped Coca-Cola establish a reputation of responsibility.

At a time when sugary, carbonated drinks are being heavily criticized in the west, it has been hugely beneficial to attach the Coca-Cola name to programs such as the Fresh Water Program that was launched in conjunction with the USAID in 2005. This program sought to help provide greater access to clean, running water for communities from Western, Eastern and Sub-Saharan Africa. In 2007, Coca-Cola upped its investment in the program, making the joint enterprise worth $10 million.

Coca Cola Africa Foundation

Coca Cola Africa Foundation

As many of the products are youth driven, it has also made economic as well as humanitarian sense to target young people for particular support. Coca-Cola developed its own body, The Coca-Cola Africa Foundation, to help provide funding and support for projects like HOPE worldwide that support vulnerable children in impoverished African regions.

Even a cynic would have to admit that such funding is beneficial, regardless of whether the motive is altruistic or for public image. But the reality is that the people within The Ivory Coast and surrounding nations are still very poor and national, economic growth is needed to help them work their way out of this poverty.

Opening up new opportunities

It is therefore a significant step forward, when a company with the reach of Coca-Cola announces that it will be looking to include local resources as part of its production chain. This opens up potentially huge streams of income for local farmers and other agricultural workers.

The Ivory Coast is one of the main producers of pineapples in Africa and as recently as 2014, Coca-Cola launched its Minute Maid brand of juice drinks on the continent. The president of Coca-Cola Eurasia & Africa, Nathan Kalumbu, confirmed that the company would be investing in the fruit farming of The Ivory Coast and looking to produce significant amounts of its juice there.

The Ivory Coast’s President, Alassane Ouattara, has greeted the news positively and states that he hopes such investment will lead other corporations to treat the nation with “some confidence.”

In addition, to the commitment to pineapple juice and other fruit products, Ouattara hopes that Coca-Cola’s investment will provide income to other areas of Ivorian industry. It is a hope that looks to be realized, as Mr. Kalumbu confirmed that Coca-Cola would be looking to source other raw materials for its products inside The Ivory Coast.

After all, the country is the world’s largest producer of the Kola Nut, which was traditionally a major ingredient in the drink. Although, the nut is not commonly used in most Cola production today, there is no reason why it could not be used to produce much of Africa’s supply of the drink as it was only replaced in many markets due to more readily available alternatives.

The Ivory Coast stands to reap a large reward from Coca-Cola’s commitment, to expand, within Africa and according to Kalumbu; this commitment will total a staggering $17 billion between 2010 and 2020.

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Afroplan: 21st Century Coupons

1 May 2016 Comments (0) Africa, Business, Featured

afroplan

Afroplan is a new online and mobile platform that connects users in Cote d’Ivoire, Senegal and Togo with grocery store chains to learn about discounts and promotions in real-time.

Big-box grocery stores are still a relatively new phenomenon in developing countries. Until just a few years ago, the vast majority of citizens living in even the metropolitan areas of such countries did their grocery shopping in locally-run markets filled with locally or regionally sourced foods. With the increase in chain grocery stores around the world, shoppers are adapting to the “one-stop-shop” mentality, including the concept of discounts and promotions.

Coupon Cutting in the Digital Age

Afroplan is a new mobile and online platform created by Cletus Razakou, a young Ivorian-Togolese digital expert and app developer. Afroplan bridges the gap between retailers and consumers by allowing users to input their personal data, such as location and material interests, and alerting them when a near-by retailer has a discount on a relevant item. While currently present only in three West African nations, a region home to 37 or 13% of Africa’s commercial centers, Afroplan is available on all smartphone platforms.

Users are able to input all varieties of material interests, from specific food items to the latest tablet, and are able to make informed choices about the right time to buy. Razakou was frustrated by the lack of communication between retailers and consumers regarding promotions, and realized that if a platform were created where retailers and consumers could alert one another about promotions, more Africans would benefit from these bargains.

This not only benefits consumers, but benefits retailers: many stores experience financial losses due to the expiry of food-products or to the fast turnover of tastes and preferences in material goods. Stores are now able to inform a broader range of consumers about potential savings while ridding themselves of soon-to-be-obsolete stock.

Benefits for All

The platform works through a two-pronged approach: the first is that supermarkets and other retailers are charged a flat fee to post individual promotions. The second is that sellers can purchase specialized advertising space to reach a broader range of consumers, including those who have not specifically listed a product as one of their interests. This is not only beneficial for the app as a money-making scheme, but is beneficial to retailers: the more specialized advertising they purchase, the more people see their products, and the more people will be interested in purchasing a discounted item, even if they had not listed it as a preferred item. In this way, retailers are able to expand their consumer base by creating a culture of desire while preventing losses incurred from expired and unsold products.

Of course, users benefit as well: they are now able to make informed choices about how to best-spend their hard-earned money. Consumers are able to choose from eight categories of goods: fashion, home decor, electronics, beauty, telephones, infant/baby, food, and overstock items.

Initial Challenges

Creating an app for an emerging industry is not without its challenges. Razakou said that the main challenges during this process were financial. It was challenging, Razakou said, to publicize the platform to potential clients (stores) and users in an efficient manner in all three countries, because they had not yet received investments from clients. Fortunately, Afroplan’s initial success indicates that financial barriers may no longer be prohibitive for expansion.

The Future of Bargaining?

Afroplan is an interesting, innovative approach to discount consumption. Connecting users in real-time to see the latest discounts is a new way to encourage consumption in West Africa, and, for those living in areas with supermarkets that opt to work with Afroplan, could lead to substantial savings on big ticket items. Unlike shopping at a local African market, buyers are not generally able to bargain in a supermarket, which takes the power away from the consumer. Afroplan gives shoppers some modicum of power when supermarkets are growing in popularity and number. No longer do citizens of Senegal, Togo and Cote d’Ivoire have to choose between the convenience of a one-stop-shop and the potentially low prices of shopping at good-specific markets.

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AIG becomes Africa’s first “unicorn”

28 April 2016 Comments (0) Africa, Business, Featured

africa internet group

African Internet Group (AIG) has become the continent’s first ever start-up company to be valued at over $1 billion.

African Internet Group (AIG) has been a trailblazer since the company was launched, in 2012, and it has now become the continent’s first ever “unicorn” startup. A “unicorn” simply refers to any startup company that becomes valued at over $1 billion, of which there are only 151 across the globe.

While such success is an incredible achievement for any business, to attain such status within only 4 years of launching is an astounding feat.

It is not simply the matter of how AIG can provide employment and services in Africa, but how such success inspires others to pursue their ambitions within the continent.

A groundbreaking year

It was expected that AIG would reach its “unicorn” standing by early this year, as turnover from its numerous brands continued to soar. Then, in March, the French insurance group AXA announced that it had purchased an 8% share of the company for $326 million, and AIG finally had a valuation of over $1 billion.

Within weeks of this announcement, the organization had further investment. French mobile phone company Orange declared it had put a further $85 million into AIG, adding still more revenue to the startup’s burgeoning resources.

While Orange’s plans for cross-promotion with AIG are not yet clear, AXA will look to sell insurance packages through AIG’s largest source of income, its Jumia online retail brand.

Jérémy Hodara

Jérémy Hodara

Jumia was set-up, alongside AIG, by co-founders Jérémy Hodara and Sacha Poignonnec to provide African customers with an online shopping experience that matched the one offered by Amazon to consumers outside of Africa. While primarily focused in Nigeria, Jumia has expanded into a further 10 countries.

As Jumia flourished, AIG bought up and invested in other African companies that tapped into the demand for greater services in retail and leisure. The AIG portfolio includes the likes of Hellofood, an app for food delivery and Easy Taxi, which is essentially an African Uber.

AIG now controls 71 companies across 26 nations in Africa, with 10 of these companies involved in the e-commerce sector. The growth in the e-commerce market has been “double-digit…month after month” according to CEO, Jérémy Hodara.

The keys to success

Whenever a company realizes the level of growth that AIG has experienced, it is pertinent to ask: just what did they do to achieve such huge and rapid success? In the case of AIG, there are a number of factors that have allowed the company to do something unprecedented in Africa, with two in particular standing out.

The first of these was the focus on understanding and meeting the wishes of local markets. In an interview with Forbes magazine, Hodara explained that many African consumers were unsure about online shopping and trust had to be carefully fostered. This was done by offering not only exceptional service but by giving options that would be unusual in a market like America. One example of such options was cash on delivery, as Hodara said, “That way, people have assurance they can pay when the product arrives.”

The second major differential, that marks AIG’s group of e-commerce sites apart, has been their vertical integration. While most retailers in the US or Europe would outsource delivery to an existing company, this would simply not provide the level of customer service AIG wanted in Africa. Therefore, they use their own fleet of drivers, which Hodara explains is “larger than UPS, Fedex and DHL in Nigeria.”

AIG also employs its own online marketing and IT teams, which, aside from ensuring quality control, also reduces costs. Hodara says, “We believe we need to control the value chain from A-Z.”

Online retail is an area that Hodara believes will eclipse “bricks and mortar retail” within Africa. With that in mind, it has been a huge boon to AIG to have struck deals with the continent’s largest telecommunications companies, Rocket Internet, Milicom International Cellular and MTN.

Even more tantalizingly, McKinsey Consultants predict that within 9 years’ time, Internet penetration in Africa will have hit 50%. The opportunity for even greater expansion is evidently within AIG’s grasp.

A few years ago, an African “unicorn” might have seemed a proposition almost as unbelievable as its namesake, but AIG has not just become a first, they have potentially changed forever how investors view African startups.

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eTobb brings a medical Q&A service to the Middle East

25 April 2016 Comments (0) Business, Featured, Middle East

etobb

The eTobb startup looks to democratize medical advice for people across the Middle East, with its Q&A online service.

Startup companies in the Middle East are not anything like as common as they are in other parts of the world, and so finding a niche would appear to be more straightforward. However, finding a niche that truly offers something original and has the potential to positively change people’s lives is a far greater task.

Lebanese startup eTobb appears to be just this sort of company. Launched in January 2013, eTobb is an online Q&A platform for medical problems. Dubbed a “medical Quora” in some quarters, eTobb works in a similar format to the popular aforementioned general Q&A website, but with a key difference. That difference is that any medical query or concern that a member posts can only be answered by a registered doctor. Therefore, customers can be assured that the answers they receive are reliable. Within 2 weeks of launching, eTobb had 50 qualified physicians onboard; after 1 year that number had risen to over 700.

Providing a much-needed service

Perhaps the most obvious reason for eTobb’s rapid growth is that it has provided a service that the region was in need of, as opposed to simply trying to create a demand for something new. While social media platforms have had to create a yearning for their product, access to medical expertise and advice is something that people across every continent, in every era, have desired.

eTobb was founded by 4 people, Paul Saber, Sara Helou, Nader Dagher and Jad Joubran. None of the team had a medical background, but all of them saw the importance of democratizing the access to healthcare information in Lebanon and the wider Middle East.

Co-founder Paul Saber

One of these founders, Paul Saber, explains, “The idea emerged from a need…the lack of information out there, let alone the inaccuracy of this information is a huge dilemma.” In a region like the Middle East, this problem is exacerbated by common cultural and socio-economic issues. In cultural terms, it can be considered taboo for many in the Arab world to discuss personal issues surrounding sexually transmitted diseases, pregnancy and women’s health. This was an area that another of the co-founders, Sarah Helou, identified while discussing the importance of an informative blog that eTobb has added to their site, saying, “The blog compliments our services. It’s to raise awareness about different topics and issues.”

The other widespread issue within the region is the cost of healthcare. In an area in which a lot of people struggle with poverty, it is simply not viable for people to travel to an emergency room (which is often the only option) in order to receive medical advice.

As Paul Saber said, “The service provided by eTobb allows users to access reliable medical information, from…experts for free.”

While the benefits to users are obvious, it is also an opportunity for doctors to build up a reputation with potential customers and indirectly advertise themselves to a wider market.

Developing and broadening services

Alongside the launch of the eTobb blog (that covers issues from staying healthy during Ramadan to warning signs for breast cancer), the company has also launched a web app for smartphone users.

As more doctors register to provide their services, the platform continues to grow and provide expert, free advice to not just Lebanese citizens but people all over the Middle East. Corporate support has also arrived, in the form of sponsorship, from Banker’s Assurance, one of Lebanon’s largest insurance companies.

By 2014, there were over 15,000 Arabic speakers signed up to a waiting list for an Arabic version of eTobb to be launched. The company successfully launched this option within the same year, opening up their services to an even greater number of people, across an even wider region.

Customers can also have face-to-face video consultations with an available doctor if they require more detailed discussion or simply desire the more personal experience that this can offer. The feedback from users has been hugely positive and Saber says, that people, “from all over the Arab world and beyond” have signed up and messaged eTobb to say how much it has made their lives easier.

With sponsorship, glowing feedback from consumers and an ever growing list of medical professionals signing up, the future for eTobb looks very healthy.

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Drawing On the Diaspora: Africa’s First Tech Diaspora

22 April 2016 Comments (0) Africa, Business, Featured

haweya-mohamed-afrobytes

Afrobytes, the first diaspora for African tech innovators, held a biannual conference on March 21-22 to discuss the future of development and role of technology for Africans.

Diasporas are common the world over but as the rigidity of nations and states disintegrates with the expansion of technological inclusion, the shape of diasporas is shifting. No longer are diasporas defined as concentrated groups of immigrants/non-native individuals in another country. Afrobytes, the self-described “first African tech diaspora in Europe,” aims to connect leaders in African innovation across the European and African continents to create a better flow of ideas. This sort of boundary-less platform is an intriguing look at the future of diasporas and the future of development.

Paris-based Afrobytes held its first conference on March 21-22, organized by CEO Ammin Youssef, and Head of Communications Haweya Mohammad. The goal of the conference was to bring the brightest minds from France (and greater Europe) and Africa together to discuss the future of Africa’s development. The conference was broken into four categories: mobile education; women as Africa’s future innovators; sustainable infrastructure development and sustainable agricultural development.

Featured speakers hailed from all corners of the globe with all varieties of expertise, from the founder of Libraries without Borders to the PR Manager of WeFarm, from the founder of an open source drone company, Flylab, to the creator of Nairobi’s premier co-working space, iHub. This enormously diverse group of speakers came together to discuss the best way to promote inclusive, sustainable, bottom-up development for the African people.

Inspiring Change: The Themes of the Day

The idea of “re-branding” Africa was a driving force behind the selected themes: after all, without investment, how can Africa develop outside of the traditional and increasingly obsolete top-down model? Re-branding Africa as a well-educated, innovative, inclusive (55% of speakers and attendees identified as women) and multi-faceted sustainable market is important for the future of the continent.

As all conferences on development must, Afrobytes kicked off with a half-day dedicated to the discussion around the role of technology in education. Experts in information-sharing were featured speakers, and topics ranged from traditional, school-based education to the borderless open-source sharing of the WeFarm platform. WeFarm, for example, connects more than 43,000 farmers from Sub-Saharan Africa and South America to share tips on sustainable agriculture near and far.

The next theme was women as the emerging innovators of Africa. While hardly new, the idea that women should be encouraged to think critically, listened to and seen as mentors is new to many, African and otherwise. The primarily female speakers gave lectures on connecting with commercial investors, utilizing co-working spaces, both physical and on-line, and more.

On March 22nd, discussions surrounding Africa’s next “raw material” focused on the necessity of providing African’s with 21st-century-standards of living, including universal access to reliable (and ideally renewable) sources of electricity. The challenges facing the start-up culture and overall clean energy sector were discussed, including a talk by leaders in existing sustainable agriculture initiatives like founder and CEO Abdoulaye Niang of Transconcept Food, Senegal, a company that specializes in the re-appropriation of traditional farming techniques for the modern world. GreenTec Capital spoke to the diverse group, saying “a lot of work is still to be done to support the African start-up environment, and we are thankful for initiatives like Afrobytes.”

Why an Online Diaspora?

The population of Africa is expected to double by 2050 to 2.5 billion, or one-quarter of the world’s projected population. Unless living conditions rapidly improve for millions of Africans, this level of population growth could prove disastrous. According to the African Economic Outlook, “despite progress, the level of human development in Africa remains low….gender inequality and exclusion exist in many countries,” which is exactly why the sorts of dialogue inspired at Afrobytes is so critical. Not only is Afrobytes an inclusive platform that provides women and men equal space to voice their ideas, but it is an important step away from traditional forms of top-down (or government-led) development.

More than three-fifths of Africa’s population is under 25 years old. These individuals have grown up with greater access to knowledge than any generation before, and are therefore more driven to change their surroundings because they are aware, to a painfully precise degree, of what they are missing out on in comparison to their foreign counterparts. The way in which Africa is developing demonstrates the importance of the free-flow of ideas between continents.

By inviting speakers from different physical diasporas, such as the Kenyan ambassador to France, Afrobytes has given its online diaspora a real sense of physical community. Eric Yoon of GreenTec Capital expects “Afrobytes to become an important platform for digital stockholders on the African data scene.”

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Bader Al Kharafi, one of Kuwait’s most powerful figures

21 April 2016 Comments (0) Featured, Leaders, Middle East

Bader Al Kharafi

Bader Al Nasser Kharafi, is rapidly establishing a reputation as one of Kuwait’s most powerful figures and as one of the most influential young Arab businessmen in the world.

Bader Al Nasser Kharafi, is rapidly establishing a reputation as one of Kuwait’s most powerful figures and as one of the most influential young Arab businessmen in the world. Making a name for himself has never been Al-Kharafi’s focus, but as the son of the hugely respected late Nasser Al-Kharafi, his family name was already synonymous with Middle Eastern business.

It is never easy for a child to follow in the footsteps of a highly successful and renowned parent. Nasser Al-Kharafi had taken the family company, MA-Al Kharafi & Sons (MAK), to dizzying heights before his death. However, since taking the helm of the family conglomerate, in 2012, Bader Al-Kharafi has stepped out of his father’s shadow and maintained the company’s long-standing reputation.

A long tradition of family-run success

MA-Al-Kharafi & Sons (MAK) was set up, in 1956, by Bader Al-Kharafi’s grandfather Mohammed Abdul Mohsin Al-Kharafi and the contracting company rapidly expanded into multiple markets outside his native Kuwait.

However, it was one of the sons, Nasser Al-Kharafi, who became a legend within Kuwaiti business, and turned the company into a vast conglomerate of varied operations. It is, therefore, no surprise that when Nasser died, in 2011, stocks in many of the MAK owned entities plummeted and a host of investors began to feel decidedly nervous.

Replacing a highly esteemed business leader is never easy and when there is a potential for in-fighting between family members, shareholder unease is understandable. Bader Al-Kharafi himself said, “I think it is very hard to convince someone to have confidence when you lose someone like Mr. Nasser.” Despite initial concerns, the company made a united, and fairly quick, decision to appoint Bader as the senior figure within the organization.

Bader Al-Kharafi commented on how this helped to placate any concerns with shareholders and thus arrest the initial drop in share prices saying, “The committees running the company and the family members and uncles all united together, that is the message that the market wants.”

Diversified interests and an eye for new horizons

Bader Al-Kharafi was not just taking control of a very prosperous company in 2012; he was heading up a corporation that operates on a huge scale and over a multitude of industries and nations. According to Arabian Business Magazine, in 2012, MAK was operating over 28 countries with 135 companies under its umbrella and was worth over $8 billion. The group has major interests in a plethora of areas, from its large holding in the telecommunications company Zain, to its petroleum, manufacturing and even hospitality interests.

Telecommunications is one of the most significant strings to the MAK group’s bow, and its company Zain has over 44 million customers across 8 nations. Zain has continually invested in new technology to try and keep ahead of competition and Al-Kharafi proudly states, “We introduced…new technologies before Europe and some other countries, including the United States.”

To continue the growth of Zain, Al-Kharafi signed a deal with Vodafone allowing the latter a greater access to the Middle East and allowing Zain to benefit from Vodafone’s existing British and European networks.

Tradition behind continued growth

Al-Kharafi has already expanded his own interests and personal positions of influence since taking over the family company. In 2012, shortly after taking over MAK, he was asked to join the board of Gulf Bank, adding to his existing positions as a board member of Foulath Holding (Bahrain Steel) and as chairman of Gulf Cables and Electrical Industries. By 2014, the world famous private bank Coutts had also added Al-Kharafi to its board.

Aside from continuing the family legacy, Al-Kharafi has shown a dedication to investing in other people and providing the youth of Kuwait with new opportunities, as the job market continues to change and adapt. INJAZ Kuwait is a non-profit NGO that was founded, in 2005, to provide educational support for young people in Kuwait.

Under the guidance of Al-Kharafi and other board members, INJAZ Kuwait has helped over 25,000 students at more than 25 educational institutions learn entrepreneurial and leadership skills. Al-Kharafi says, “I am always up for challenges and risks; mainly because I was introduced to the business at a young age…I like to make sure that I make the first step to becoming a pioneer.”

With such support, INJAZ could help provide the education for the next Al-Kharafi to emerge from the small but prosperous gulf state.

Although he continues to invest in new ideas, Al-Kharafi believes that continuing his father’s ethos is what will ensure ongoing success saying, “The model my father proved time and time again to be vital to success is: people, honesty and making sure you deliver.”

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Mugabe looks to nationalize Zimbabwe’s diamond industry

19 April 2016 Comments (5) Africa, Business, Featured

Robert Mugabe

Zimbabwe’s longtime President, Robert Mugabe, has announced the state will seize all of the nation’s diamond mines.

Zimbabwe’s controversial President, Robert Mugabe, has announced a massive change to the country’s diamond mining industry, in that all assets will now be state owned. In a move that is a throwback to his socialist roots, Mugabe claims that foreign mining companies have profiteered for too long off one of the nation’s most valuable commodities and he will ensure that the nation now reaps the rewards from its diamonds.

Mugabe gave an interview in early March to the state broadcaster ZBC, during which he expressed his anger at what he sees as foreign companies plundering Zimbabwe for a precious, natural resource. Mugabe claimed that, in doing so, foreign companies made around $15 billion in profits, while Zimbabwe itself had only earned $2 billion in the same period of time and, as such, the diamond rich region of Marange would now be a “state monopoly”.

The Marange diamond fields were only discovered in 2006 but by 2013 they were producing an astonishing 16.9 million carats of diamonds, which is akin to 13% of the world’s rough diamond supply. However, this output has dropped significantly due to reluctance by companies to invest in deeper exploration. Industry group Kimberly Process states that in 2014 Zimbabwe’s diamond production was around 4.7 million carats.

While it is understandable that Mugabe may feel the country needs to earn a greater proportion of the wealth that the Marange region is host to, issues of corruption and internal theft are perhaps as large a problem as outside sources. As far back as 2012, South Africa’s former President Thabo Mbeki warned that Zimbabwe was losing much of its diamond wealth to a “predatory elite” within its own nation.

Illegality plagues Zimbabwe’s diamond industry

The NGO Partnership Africa Canada (PAC), which monitors conflict minerals in Africa, produced a damning report in 2012 that stated government ministers in Zimbabwe were the ones becoming rich off the back of stolen diamonds. Corruption and theft were so rife that the organization said, “The scale of illegality is mind-blowing” and the investigation named former mines minister Obert Mpofu as having amassed an unaccountable fortune since mining began. Mpofu was said to have been spending $20 million “mostly in cash” over a 3 year period.

If high level government figures are the very people denying the state treasury of its rightful income from Marange’s diamond mines, then will a state owned monopoly make much difference? While Mugabe has angrily pointed the finger of blame abroad, it remains to be seen whether those now in charge of the state’s new body, Zimbabwe Diamond Consolidated Company, can ensure that the profits from diamond minds find their way to the rightful government coffers.

What is certain is that the foreign companies who have been mining in Zimbabwe will not take Mugabe’s orders without a fight. China has developed closer trade agreements with Zimbabwe in recent years and the Chinese-run mining company Anjin Investments has already challenged Mugabe’s ruling at the High Court. The early indications are that the courts might well side with the mining companies as the largest mine, Mbada Diamonds, has already won its case at the High Court and been given full control of its assets.

Whether this is a ruling that Mugabe’s government will accept and adhere by is an entirely different question. While some voices have expressed concern over how this dispute could affect trade between China and Zimbabwe, Mugabe himself dismissed such worries, saying, “I don’t think it has affected any of our relations at all…I told President Xi Jinping that we were not getting much from the company, and we didn’t like it anymore in this country.”

Zimbabwe diamond mine

Zimbabwe diamond mine

Where does Zimbabwe’s diamond industry go from here?

If the government of Zimbabwe overcomes the legal challenges, maintaining the $1 billion worth of Chinese trade despite seizing Chinese interests, and eradicates the corruption that has plagued the mining industry thus far, then it would obviously earn considerably more money. However, these are a sequence of unlikely outcomes given the manner in which the move has come and given the history of the mining industry in Zimbabwe.

There is the additional concern that potential investors in other mining projects within the country could be put off by this recent announcement regarding diamonds. John Turner, head of the mining group at law firm Fasten Martineau says, “To the extent that private firms were looking at Zimbabwe thinking they were ahead of the curve, this may give them pause for though.”

Any concerns outside of Zimbabwe have not appeared to weaken the resolve of Mugabe or his government. They insist that the problem lies with theft from abroad and moreover that recent mining has actually been illegal, as the mining companies had not renewed their licenses.

Amid conflicting claims and ongoing lawsuits, who emerges as having control over the lucrative Marange diamond mines over the next few months will be of interest to many parties and people both in and outside of Zimbabwe.

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Folorunsho Alakija: A portrait of a billionaire

18 April 2016 Comments (1) Africa, Featured, Leaders

Folorunsho Alakija

Businesswoman, fashion designer and even a marriage counselor; Folorunsho Alakija won’t be retiring any time soon.

Folorunsho Alakija is not only the second richest woman in Africa but she has also been listed as one of the most powerful 100 women in the world by Forbes magazine. This is a businesswoman who takes diversified interests to a quite remarkable level, as Alakija is not only involved in oil mining and fashion design but has even written books on marriage counseling and started up her own ministry.

So how did this 64 year old Nigerian woman end up in such a position of wealth and influence?

Folorunsho Alakija: “Many have asked how I got to where I am”

Alakija arrived into the world on July 15th 1951, born into a large family in which her father had an incredible 52 children. Alakija and one of her sisters were sent to school in the United Kingdom at the age of 7 and remained there for 4 years.

Although she returned to Nigeria for her high school education, Alakija made her way back to the UK as a young adult where she studied to be a secretary and also took up a fashion design course at the American College in London and the Central School of Fashion.

Alakija began her first job in 1970, working as a secretary for Sijuade Enterprises and then 4 years later moved on to become the Executive Secretary to the Managing Director of First National Bank of Chicago (now First City Monument Bank).

From this point on, determination, hard work and the confidence to take risks are what saw Alakija’s career go far beyond her formal qualifications. While she did not have a degree, diligence and natural talent helped her carve out increasingly senior roles in the corporate world. Within two years of joining the bank, Alakija was promoted to the Head of Corporate Affairs and subsequently rose further into the company hierarchy by becoming Office Assistant to the Treasury Department.

While many people would have been happy to continue such a progression in the corporate world, Alakija wanted to use her creativity and took a gamble by leaving the security of her career to launch her own fashion house in 1983. The Rose of Sharon House (originally named Supreme Stitches) was an almost immediate success and made Alakija a household name in Nigeria as she promoted traditional prints and Nigerian styles in her clothing.

A move from the finance sector into fashion design might seem unusual, but Alakija’s massive success has been built upon her willingness to take calculated risks and in 1991 she made another bold move into yet another arena.

“A truly family business”

In 1991, Alakija ventured into the oil industry and although her prospecting license was not granted until 1993, it was the move that would turn a successful career into one that made billions. Alakija’s company Famfa Oil acquired 60% of a lucrative block of coastal oil that came to fruition in 1996 when Texaco (now Chevron) approached her to broker a deal. Negotiations lasted 3 months, but at the end of it Alakija had a deal with a multinational oil company and Famfa Oil became a juggernaut in African business. Famfa is, as Alakija states, a “family business” in that her husband of 40 years is the chairman and their four sons are the Executive Directors.

Having been happily married for four decades and being a devout born-again Christian, it is perhaps unsurprising that Alakija is saddened by the world’s increasing divorce rates. What might be more surprising about a billionaire businesswoman is that she decided to try and address this by writing a book on marriage counseling and by regularly giving speeches around Nigeria to try and help provide advice on how to make marriage work.

“A burning desire to help the less privileged and needy”

Helping people is something that is important to Nigeria’s richest woman and her huge financial clout has meant that she is able to do a lot more than write books. In 2008, The Rose of Sharon Foundation was launched to allow Alakija to invest in the futures of widows and orphans in Nigeria. Scholarships and interest-free loans aim to help those with very little prospects have a chance at changing their own fortunes.

There have been 9,000 medical and engineering scholarships thus far and in addition to this work, Alakija has provided 21 clinics for treating tuberculosis across the country, 21 science laboratories and is in the process of designing the building of two schools that will bear the name of her foundation.

Alakija’s career has been extraordinary by any standards and yet with her foundation, public speaking and the ministry she launched in 2004, there is no sign of her slowing down any time soon. And it is her religion that she insists is behind her success and her passion to keep working and promoting her belief in her faith. Although many people might look to her ingenuity, brave decision making and talent, Alakija says “Though many have claimed that I have become their role model, I assign all the glory to God.”

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Peugeot Nigeria: Rebirth and Revival thanks to Africa’s richest man?

13 April 2016 Comments (0) Africa, Business, Featured

Aliko Dangote

January 26th saw the closing of bids for AMCON’s controlling shares of Peugeot Automobile of Nigeria Ltd.

AMCON’s acquisition of PAN’s controlling shares in October 2012 is set to end as Nigeria’s so called “bad bank” opens its shares of PAN up to bidders. Africa’s wealthiest man, Aliko Dangote, is ready to step up to the challenge.

January 2016 saw AMCON (the Asset Management Company of Nigeria), Nigeria’s so called “bad bank”, look to sell its stake in PAN (Peugeot Automobile of Nigeria Ltd.), and they began to invite bids from investors. AMCON currently owns a 79.3% controlling interest in PAN.

PAN was founded in 1972 as a joint venture between the French automaker and the Nigerian government, with the goal being to manufacture and market vehicles under the brand name of Peugeot.

Peugeot NigeriaDuring the 1980s PAN was profitable and produced upwards of 90,000 cars yearly. However, due to the influx of cheap, second-hand vehicles that began to come in to the country from Asia, the company began losing profits. This led to the sale of the controlling stake in the company, by the Nigerian government, to investors in 2006.

Unfortunately, the new investors did not fare well and managed to accumulate bad debt during their leadership, leading to AMCON’s acquisition of the majority share in the company in October 2012.

“Following the accumulation of huge non-performing loans (NPL) indebtedness to banks, in October 2012, the AMCON acquired the debts of the company and converted a portion to equity to help restructure the firm,” Peugeot had said.

Aliko Dangote and his associates take center stage

Enter Aliko Dangote, President and Chief Executive Officer of the Dangote group. A man that also carries the distinction of being Africa’s richest man, as ranked by Forbes in 2015, with an estimated wealth of $17.3 billion.

Dangote is already active in the cement, oil, food, sugar and farming industries, and now has his sights set on the automotive industry. Aliko Dangote has teamed up with the Nigerian States of Kaduna, and Kebbi, as well as the development lender Bank of Industry (BOI) to bid for the shares now up for sale by AMCON.

Governor Nasir El-Rufai told a conference, “We have submitted bids for the carmaker… with Aliko Dangote on board together with BOI, Kebbi and Kaduna State, we are confident our bid will sail through.”

Bidding for the stake controlled by AMCON closed on January 26th, and Governor El-Rufai did not provide any further details.

On its website PAN stated that its assembly plant, which is located in Kaduna state, has Peugeot Citroen PEUP.PA as its technical partner, and it has the capacity to assemble 240 cars in a day.

Made in Nigeria

Meanwhile, the Nigerian government has been keen on promoting a “Made in Nigeria” industrial policy and ordered local car distributors to make plans for new assembly plants back in 2014. They threatened to begin imposing prohibitive import duties.

Jean-Christophe Quemard, who is the executive vice president for Peugeot in Africa and the Middle-East, met with President Muhammadu Buhari in November to discuss reviving local production.

Other automakers such as Germany’s Volkswagen, Renault-Nissan, and South Korea’s Kia motors have also announced plans to begin assembling their vehicles in Nigeria, which is currently Africa’s biggest economy.

Not to be outdone, the Ford Motor Company of the United States will set up an assembly plant in Nigeria in November. With a 5,000 vehicle annual capacity, the plan is to produce up to 10 vehicles each day for the local market and eventually move into export into West African countries.

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Aïssa Dione: One woman’s fight for traditional Senegal textiles

12 April 2016 Comments (1) Africa, Featured, Leaders

Aissa Dione

The lady behind internationally renowned textile company Aïssa Dione; artist, designer and entrepreneur.

Dating back to the 15th century, Senegal has a tradition of textile weaving and dyeing as rich as the fabrics themselves. However, with a shift towards mass-produced clothing and the ever changing fashions and trends, this time-honored practice has suffered a huge set back. The name Aïssa Dione has become synonymous with the ancient craft, as she has fought to revive what was a tradition on the brink of distinction. “Spinning and textile industries have nearly all closed and traditional weavers are slowly but surely disappearing,” said the designer, a woman who has dedicated her life to reviving Senegal’s tradition.

A bold autodidact

Born to a French mother and Senegalese father in 1952, the renowned painter and textile designer grew up in Nevers, France. She attended the school of Fine Arts in Chelles before leaving to Senegal at the age of 20, to pursue an international career as an artist. Fate was to slightly alter her career course, when a potential buyer of her work, Pierre Babacar Kama, head of Chemical Industries of Senegal (ICS), said he would like first for his offices to undergo a revamp. It was “a bluff,” she said, when the budding artist responded confidently that she could manage such an undertaking.

This event marked the beginning of the entrepreneur’s textile and business adventure. Dione began with a single weaver who had worked for her grandmother. They set up their make-shift studio in her garden and she went to work, combining her artistic flare with traditional Senegalese weaving methods, such as the Mandjaque technique. The result was so impressive that many commissions were to follow. Local media interest sparked intrigue and soon her work was reaching a global audience, with orders flying in from all across the globe.

Celebrating Senegal

Aïssa Dione Tissus

Aïssa Dione Tissus was officially launched in 1992. From its modest beginnings it rapidly grew from having a single weaver to 15 workers, prompting a move to a more suitable location. Still her place of work today, her now burgeoning artillery is situated in Rufisque, a small town outside Dakar in Senegal. The company employs 100 Senegalese artisans. Dione dreams of recruiting more and expanding her business further but in the meantime there are Senegal’s restrictive labor laws to contend with.

Passionate about her roots, what she has borrowed from the country’s tradition and methods, she has more than given back by celebrating all that is Senegalese through textile and showcasing it to the world. The company’s philosophy is one of slow industry; creating a refined, luxury brand from local raw materials. While the West African country exports 5,000 tons of cotton annually, none was previously leaving as finished pieces of textile; the entrepreneur is changing this trend. The products from Aïssa Dione Tissus are 100 percent made from Senegalese materials, created by a purely Senegalese workforce and traditional methods of dying and weaving that are still harnessed to this day. One example: the all-natural dyes they make out of local bark and mud collected from the lake during the dry season.

“I strongly believe in small-scale industries, as a way to bring development to West Africa. We grow a million tons of cotton in this region and we export 99% of that. If I can process that cotton here, at home, I can increase my revenue fifty or one hundred times,” said the elegant 62 year old.

The future for textile and art

What the statuesque designer has so masterfully achieved is introducing a social and economically aware business into the world of high fashion and design. She discovered how to elegantly blend the traditional with the modern and it is a roaring success. What had been slowly slipping into oblivion was rescued from the precipice and with just the right modern twist is made palatable for the current trends. Labels such as Hermès, Christian Lacroix and Fendi Casa have made orders from Aïssa Dione fabrics and designers such as Jacques Grange, Christian Liaigre and Peter Marino have all used her products.

Her passion, her drive and her determination to stick fast to her beliefs make the success of Aïssa Dione Tissus even more incredible. Many frustrations along the way could have tempted a less resolute person to take shortcuts here and there but that would have compromised too much of what this French-Senegalese artist and “Lioness of Africa” believes in.

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