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Gauteng Emerging as South Africa’s App Development Hub

19 August 2016 Comments (0) Africa, Business, Featured

South Africa app

Gauteng province in South Africa is fast emerging as a center for app development on the continent.

It wasn’t long ago that finding an Internet connection in Sub-Saharan Africa was next to impossible. Today, the scene couldn’t be more different: millions of young Africans are as connected to the Internet as their European or American counterparts. Through mobile phones and devices, many of the logistical challenges surrounding Internet infrastructure have been avoided. African businesses have been particularly aware of the potential of the Internet. Many small businesses are taking full advantage of the options available to them through app creation, and certain areas are fast emerging as app development hubs. According to Cassie Lessing, the Managing Director of the Strato IT Group, Gauteng Province, where both Pretoria and Johannesburg lie, is leading the way in app development.

In the Middle of it All

It comes as no surprise, then, that the province that is home to South Africa’s de facto and legal capitals should be a hub for innovation. As new businesses make their way into the market, app developers are highly sought after: the app economy is expected to create trillions of dollars of direct and indirect opportunities around the world, and Africa is no exception. The African Internet population is so mobile that they are poised to leapfrog directly into the era of apps, bypassing the cumbersome online experience. There are numerous websites where businesses can look for app development companies and individual developers, a fascinating look at the truly online nature of the future.

Already the country’s economic powerhouse, Gauteng provides app developers with more resources than they would have elsewhere. With a plethora of cool hang-outs and co-working spaces, young thinkers are able to learn from one another in informal environments, thus enriching each individual’s skill set. The apps that are being developed are varied and seem to span across nearly every field: news, government information, entertainment, healthcare services, mining, logistics, shopping and banking are just a few of the numerous industries in which apps have recently emerged.  “Economies rely on information to function effectively and the app economy represents a leap forward towards the goal of an informed and efficient knowledge-based society. Organizations that do not adopt and utilize the emerging technologies like mobility, digitization and cloud will be disadvantaged and lose out to the early adopters,” Lessing says.

Piloting the Future

Lessing’s company, the Strato IT Group, has been quick to capitalize upon the growing app market. Strato boasts an impressive “satisfied clients” portfolio, with big names such as Toyota, Deloitte and Babcock, to name a few. Unlike other companies in their field, Strato claims it prioritizes face-to-face relationships rather than the faceless services provided by mainstream IT companies. Ironic, given that a common side effect of mobile apps is to reduce the time users spend making face-to-face interactions with the world around them.

With a reputation built upon excellence, Strato has long been the go-to company for businesses looking to enhance their online presence. They now provide clients with app management, app development and consulting, as well as the newer “Application Management Outsourcing” (AMO) whereby Strato finds developers with the required “scarce skills” to handle a client’s needs.

The Strato IT Group has begun a pilot project whereby consumers (companies in need of apps) are able to connect with developers and be a part of the app creation process. This allows consumers to access experts while maintaining their company’s identity. “This approach not only serves to test and enhance product, but also provides valuable raw material for proof of concept and proof of value exercises,” says Lessing of the project.

The Future is Now

Strato exemplifies the opportunities available for businesses from any sector: connecting businesses with app developers not only increases the visibility of both parties, but provides users with services that increase ease of access. Apps developed through the Strato IT Group and elsewhere have already increased the efficiency with which South Africans can go about their daily lives: the recent launch of an app-accessible stock market, the creation of cheap fuel finding apps and app-based coupons have all made life a little easier and a little cheaper for South Africans.

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Mauritius raises 2016 tourism earnings forecast by 1.8%

19 August 2016 Comments (0) Africa, Business, Latest Updates from Reuters

PORT LOUIS (Reuters) – Mauritius said on Friday that tourism revenue in 2016 will be 1.8 percent higher than it had previously forecast, after a surge in visitors during the first half.

Tourism is a valuable source of foreign exchange for the tiny Indian Ocean country known for its luxury spas and beaches.

Earnings from the sector are now expected to reach 56 billion rupees this year, up from an earlier forecast of 55 billion in May, according to Statistics Mauritius, an official body.

Last year, tourism earnings totalled 50.2 billion rupees.

The statistics agency also raised its forecast for 2016 arrivals to 1,250,000 tourists from 1,240,000. Visitors in 2015 numbered 1,151,723.

In the first half of 2016, Mauritius attracted 586,464 tourists, up 9.9 percent from a year earlier.

 

(Reporting by Jean Paul Arouff; Editing by Aaron Maasho and Dominic Evans)

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Beijing Automobile Intl Corp to invest $800 mil in S.African industrial zone

19 August 2016 Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG (Reuters) – Chinese state-owned Beijing Automobile International Corporation (BAIC) has signed a deal to invest 11 billion rand ($823.30 million) in an industrial zone in South Africa’s Eastern Cape province, the operator of the zone said on Thursday.

The deal will see BAIC open an automotive manufacturing plant in the Coega Industrial Development Zone near South Africa’s Nelson Mandela Bay, the Coega Development Corporation said in a statement.

($1 = 13.3608 rand)

 

(Reporting by TJ Strydom; Editing by Alexandra Hudson)

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South Africa’s Truworths posts 12% rise in FY profit

18 August 2016 Comments (0) Africa, Business, Latest Updates from Reuters

(Reuters) – South African clothing retailer Truworths International reported a 12 percent increase in full-year profit on Thursday, boosted by cash sales at its British unit Office Holdings, but falling short of estimates.

* Group retail sales for the 52-week period ended 26 June2016 increased by 46.1 percent to 17.0 billion rand ($1 billion)versus comparable period. * Headline and fully diluted headline earnings per share for52 weeks ended June 26 up 12 percent to 667 cents, but short of702 cents estimate by Thomson Reuters Smart Estimates. * Shares in Truworths down 6.7 percent at 85.34 rand by 1450GMT. * Cash sales outpaced sales on in-store credit as Britishfootwear chain Office sells only in cash and new rules in SouthAfrica hamper credit extension. * “Credit retail sales were significantly impacted by theintroduction of new affordability assessment regulations inSeptember 2015, which management estimates resulted in a loss ofbetween 200 million rand to 250 million rand in sales,” thecompany said. * Annual dividend per share up 12 percent. * “We expect the South African trading environment to remainchallenging during the 2017 financial period, with slow economicgrowth and rising inflation putting pressure on consumers,” thecompany said. * The trading environment in United Kingdom is also facedwith uncertainty after decision to withdraw from European Union,but is likely to be less uncertain as more clarity regardingBrexit emerges, the company said.

 

($1 = 13.3300 rand)

 

(Reporting by TJ Strydom; Editing by James Macharia)

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Can Morocco rejoin the AU?

18 August 2016 Comments (1) Africa, Featured, Politics

African Union

Morocco seeks to return to the African Union, but the issue of Western Sahara remains unresolved.       

After 30 years on the outside, Morocco is seeking a return to the African Union, a body that it dramatically left in 1984. As of 2002 this body is called the African Union, previously known as The Organization of African Unity (OAU). Some see this move as long overdue while critics see it as an insidious maneuver to further Moroccan agendas. The controversial and complex situation revolves around Morocco’s disputed ownership of the Western Sahara in North-West Africa. Much has changed since Morocco’s departure, including the AU itself.

The ghosts of the past are not easily dispelled. Regional entities remain distrustful towards Morocco after the nation claimed ownership of the Western Sahara region in the wake of the Spanish withdrawal in 1975. Critics condemned the action as an illegal annexation and an opportunistic land-grab: the region contains vast phosphate resources, abundant fisheries and large untapped oil potential. Morocco however believes that the Western Sahara has always been part of Greater Morocco’s true borders. This annexation for them was merely a return of the Sahara to the “motherland,” and not an aggressive power play. The Western Sahara’s partially recognized ruling body, the SADR (Sahrawi Arab Democratic Republic), severely contest these historical claims to ownership.

History of Morocco’s relationship with the AU

When the independence of the Western Sahara was recognized by the OAU, Morocco immediately exited the union and has been on the outside ever since. So the question is: what has changed? In recent years Morocco has been fostering closer relations with its regional neighbors. This may just be the next step in the process of strengthening its African ties, with a desire to become a key economic and political player in the continent. “For a long time our friends have been asking us to return to them so that Morocco can take up its natural place within its institutional family,” King Mohammed VI said in a speech to African leaders. Morocco claims the motives are entirely separate from its stance on the Western Sahara, and wishes to rejoin solely from an economic standpoint.

A more cynical reasoning is that after many years of diminished regional influence due to its absence from the AU, Morocco will be in a stronger position to undermine the legitimacy of the Western Sahara once inside the organization. An official from the AU speaking with anonymity said, “The AU general secretariat is concerned that Morocco wants to return in order to argue the SADR issue from within the AU.”

Issue of Western Sahara remains

Western Sahara

Western Sahara

Morocco is unlikely to concede any significant points over their occupation of the Western Sahara. Some commentators feel that it is likely that they will continue some form of hostilities towards the SADR whether inside or outside the AU. The rest of the union needs to carefully consider whether it can better manage the outcome of disagreement with Morocco inside or outside the union. Morocco’s return to the organization will undoubtedly cause conflicts. The nations of the AU and beyond are already taking sides. Despite Egypt and Tunisia’s links to Morocco via their common cultural identity and geographic locations, they have not issued statements or official comments supporting Morocco’s potential re-entry. Mona Omar, an assistant to the Egyptian foreign minister said, “Egypt is committed to taking neutral positions when it comes to Algeria and Morocco.”

Realistically, 30 years ago when Morocco left, the union was a far less influential and interventionist body. If it returns, it will be to an entity that is far more prepared and capable to intercede in conflict. It will not sit back and watch Morocco bully the Western Sahara, even if it re-enters with no restrictions on its actions.

The African Union’s evolution

Today, the AU is a pan-African organization designed to promote peace and prosperity throughout the continent of Africa. It is quite different to the OAU in that it can and does intervene in conflict and is not just advisory in nature. Its Peace and Security Council can deploy military forces and initiate peacekeeping missions throughout Africa, while also suspending memberships if countries abandon democratic practices, excluding them from trade relations and intercontinental funds. The AU will not play placid spectator to Morocco’s intimidation. Morocco will be required to make some concessions to its diplomatic relations if it wants to play a central role within the African Union.

The circumstances surrounding Morocco’s departure remain unchanged, so critics have questioned Morocco’s timing and motives. The dispute over the Western Sahara is unresolved, causing tension throughout the whole of North Africa. For all parties to be duly satisfied it will take delicate diplomacy and Morocco would undoubtedly need to meet certain stipulations laid out by the union. Both parties have made it clear that they will not be compromising on their standpoint on the SADR; whether this will be a sticking point over Morocco’s membership remains to be seen.

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Ghana says on track to halve budget deficit after IMF deal

18 August 2016 Comments (0) Africa, Latest Updates from Reuters, Politics

ACCRA (Reuters) – Ghana is on target to halve its fiscal deficit this year after its $918-million aid deal with the International Monetary Fund, Finance Minister Seth Terkper said on Wednesday.

His comments appeared designed to allay uncertainty over the deal that emerged this month when parliament rejected a key component that was designed to promote fiscal discipline. The following day the government suspended a planned Eurobond issue.

The government issued a bill to eliminate central bank financing of the budget deficit in line with the requirements of the deal but on Aug. 2 parliament passed the bill with an amendment allowing financing of up to 5 percent.

Ghana’s public debt eased to 63 percent of GDP in May from 72 percent at the end of 2015, while consumer inflation dropped to 16.7 percent in July from 19 percent in January, Terkper said, citing the impact of the deal that began in April 2015.

The central bank expects inflation to slow to 8 percent, plus or minus two, by September 2017.

“We are set to halve the deficit from 12 percent in 2012, and we have also started stemming the rate of growth of the public debt,” he told a meeting of private businesses in Accra.

Ghana, which exports cocoa, gold and oil, signed the assistance programme to bring down inflation and the budget deficit and stabilize the currency.

Terkper said the debt stock could rise marginally to 65-66 percent of GDP on planned disbursements towards the end of the year but will remain below 70 percent.

Ghana pulled out of a planned five-year $500 million amortising Eurobond this month because investors demanded a yield higher than the single digits the government had expected.

Terkper led the government finance team on the deal and said his team only suspended pricing of bids.

“We did not call off the 2016 bond …. What we did was to suspend pricing …. We must sometimes hold our nerves when we’re in the capital market to look for the right window before we strike in order to get the best results,” he said.

Ghana will on Thursday begin pumping oil from a second offshore oil field, Tweneboa-Enyenra-Ntomme or TEN, in addition to its flagship Jubilee production which began in late 2010.

 

(By Kwasi Kpodo. Editing by Matthew Mpoke Bigg)

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Three-week South African fuel strike ends as union signs new pay offer

17 August 2016 Comments (0) Africa, Business, Latest Updates from Reuters

CAPE TOWN (Reuters) – South Africa’s petroleum industry and striking workers agreed to a new two-year wage deal on Wednesday, ending a three-week strike that caused limited supply disruptions, an official representing employers said.

Around 15,000 striking workers affiliated to Chemical, Energy, Paper, Printing, Wood and Allied Workers union (CEPPWAWU) agreed a 7 percent wage increase this year and an April CPI plus 1.5 percent hike in the second year, said Zimisele Majamane, the deputy chairman of the National Petroleum Employer’s Association.

 

(Reporting by Wendell Roelf; Editing by James Macharia)

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Simbarashe Mhuriro: Zimbabwe’s savy solar innovator

17 August 2016 Comments (0) Africa, Featured, Leaders

solar power in africa

Simbarashe Mhuriro and his company OurSun Energy Limited are creating an ambitious solar powered future for Zimbabwe.

A surge of innovation is electrifying Africa. A new wave of savvy, ambitious entrepreneurs with big ideas are pushing the envelope, and invigorating nations. Simbarashe Mhuriro, is one such person. Simba, as he likes to be known, is the 31 year old Executive Director of OurSun Energy in Zimbabwe. His firm has set out ambitious goals to bring wide scale renewable solar energy to Zimbabwe

Business beginnings

Simbarashe Mhuriro

Simba grew up in Marondera, Zimbabwe, just 30 kilometers from the capital Harare.  He attended a local school and by all accounts had a normal childhood. He didn’t start his career as a business high flyer. Simba recalled how his first jobs were rather ordinary, and not particularly indicative of the career he has gone on to pursue. His early jobs included working as a school teacher and even as a disk jockey before becoming a hotel reservations agent.

He built upon his hospitality career and moved to Dubai after landing himself a job with hotel giant Emaar Hospitality Group. As he climbed the ladder, Simba rubbed shoulders with established business people from a variety of industries while gaining a sound understanding of the corporate world. In 2010, he decided that given his business skills and knowledge of Zimbabwe, he wanted to create his own firm.

Partnership and major solar plans for Zimbabwe

Simba found two seasoned business partners in Andrew Connelly and Honour Mkushi. The trio swiftly formed Oxygen Africa Ltd, a firm specializing in identifying opportunities and creating partnerships between foreign investors and projects in Zimbabwe. Originally the group focused on energy, mining and agriculture. However in 2012, Simba was introduced to Jo Hanns Dieter Trutschler, the principal of Meeco Group, a Swiss firm that creates solar energy projects in developing nations. Simba and Trutschler started to build a strong business relationship, with Trutschler tutoring the Zimbabwean on the workings of the solar energy sector. Simba said that this “literally got me hooked into solar, so I zoned in and said you know what, I have to get these guys to Zimbabwe with me.”

With Simba’s unique blend of business skills and Zimbabwean connections, and Meeco Group’s expertise in solar energy, a partnership was imminent. In 2014 the two groups formed the official joint venture OurSun Energy Limited.

Intensely passionate about OurSun’s program, Simba believes it can play a huge part in solving Zimbabwe’s energy issues. He explained why this is the case: “The Zimbabwean geographical situation is ideal for the implementation of solar energy and related applications such as energy storage, lighting or water pumping due to its level of radiation, one of the highest worldwide,”

While such a program seems ideal for Zimbabwe, the country is not known for being an easy place to do business. Bringing the myriad facets of OurSun’s program together has been no easy feat. Simba has been an instrumental facilitator responsible for dealing with authorities and regulation, identifying prospects, bringing in additional partners, managing imports, sourcing suppliers and overseeing the implementation of the projects.

Solar Energy stands to benefit Zimbabweans and their economy

OurSun aims to deliver 230MW of solar applications throughout Zimbabwe in the next ten years. The benefits of the scheme should be significant. In Simba’s words: “The main thrust for us is developing clean energy solutions for the well-being of the population, especially in remote and rural areas. They are the ones in urgent need of stable and reliable power.”

OurSun is also committed to seeing its schemes benefit the local economy. They are looking to maximize the amount of manufacturing, research and development and hiring that happens locally. The firm estimates that over 2,000 jobs will be created throughout the life-cycle of the scheme. Furthermore Simba has commented that the program represents a great opportunity to drive growth in the industry via the the “knowledge transfer” that will occur between OurSun and indigenous Zimbabweans, many of whom will be women and the young.

Tenacious individuals like Simba are essential to usher in change. Zimbabwe will enjoy the benefits of his conscientious work, and can be sure to see further contributions from this home-grown pioneer in the future.

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South African court sets aside Eskom’s electricity tariff hikes

17 August 2016 Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG (Reuters) – A South African court on Tuesday struck down some of the tariff increases granted to Eskom this year, saying the power utility had not followed the correct procedure when applying for a special claw-back, local media reported.

National energy regulator (Nersa) in March allowed Eskom a total tariff hike of 9.4 percent, of which part was an interim increase for running expensive diesel generators to keep the lights on in Africa’s most industrialised economy.

A court in Johannesburg on Tuesday granted the application by business organisations to set the regulator’s decision aside.

Had the interim increase not been granted, the tariffs would have risen by 3.5 percent from April 1, Moneyweb reported.

Eskom would not comment on the court’s decision directly, saying in a statement it would await a decision by the regulator.

 

(Reporting by TJ Strydom)

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Kenya’s finance minister opposes capping of banks’ lending rates

16 August 2016 Comments (0) Africa, Business, Latest Updates from Reuters

NAIROBI (Reuters) – Kenya’s Treasury opposes a move by parliament to cap commercial lending rates because other measures being put in place will help bring down borrowing costs over time, the finance minister said on Tuesday.

Parliament passed changes to the banking law two weeks ago to cap commercial interest rates at 400 basis points above the central bank’s policy rate, now 10.5 percent. The changes are awaiting presidential approval.

Henry Rotich, the finance minister, told Reuters his ministry preferred to improve the transmission of monetary policy signals to commercial rates and the creation of a central registry for collateral to cut rates, rather than capping them.

“Our approach in this issue is to deal with the root cause of why interest rates are where they are in Kenya,” he said.

The average lending rate was 18.2 percent last month, compared with 15.8 percent in July last year, the central bank said. The central bank cut its policy rate to 10.5 percent in May, having left it at 11.5 percent since July 2015.

Rotich said they were working to improve the Kenya Banks Reference Rate (KBRR) to ensure banks were pricing loans correctly.

Introduced by the government in 2014 to help rein in high costs of loans by offering a benchmark for banks to price their loans, the KBRR has been criticised widely for failing to help bring down interest rates.

“There is more room for refining the KBRR and banks are working on ensuring that the margins reflect the best pricing of loans,” the minister said without offering details.

He said a law to establish a central registry of collateral would be taken to parliament soon, enabling borrowers to transfer their loans between different banks easily and cutting costs of securing collateral once it is passed.

“We think these measures are going to help to bring down rates over a period of time,” Rotich said.

Kenyan banks have reported rising profits in the last decade, attracting foreign investors. Rotich said the growth of the sector had helped to boost the share of the population with access to formal financial services to 70 percent.

“We don’t want to rock that boat … Anything that reverses that would not be a good way to go,” he said.

The central bank also opposes capping interest rates saying it could restrict lending. It however wants banks to lower their rates.

Rotich said the government’s budget deficit for the fiscal year starting last month would be lower than the 9.3 percent approved by parliament, adding they would also raise money in capital markets abroad to avoid putting pressure on local rates by borrowing too much in the domestic market.

“Our strategy is to diversify our sources of funding so that we don’t borrow heavily domestically,” the minister said.

(By Duncan Miriri, Editing by Richard Balmforth)

 

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