MENU

Africa
Category

Africa’s richest man resigns from Dangote Flour as Tiger Brands cuts funding

16 November 2015 Comments (0) Africa, Business, Latest Updates from Reuters

LAGOS (Reuters) – Africa’s richest man Aliko Dangote and three other directors resigned from the board of Dangote Flour Mills on Monday as majority owner Tiger Brands cut funding support to its struggling Nigerian division.

South Africa’s Tiger Brands said it was “currently exploring various alternatives with regard to its investment in Dangote Flour Mills, which also announced a change of name to Tiger Branded Consumer Goods Plc.

Aliko Dangote holds 10 percent of the company’s equity in through Dangote Industries. The other directors who resigned are Olakunle Alake, Asue Ighodalo and Arnold Ekpe.

 

(Reporting by Chijioke Ohuocha, Reuters)

Read more

Magatte Wade, the New African Global Voice

16 November 2015 Comments (0) Africa, Featured, Leaders

magatte wade

39-year-old Senegalese entrepreneur Magatte Wade, who made her name in Silicon Valley, has brought the love for her continent and her business flair together to bring the world a taste of African soul and the world to Africa.

If you are not prepared to face a pride of lions or find yourself pitted against the former CEO of Nestlé in a debate on the importance of organics, then step down, you are not prepared to be Magatte Wade.

Walking away from a $32 million business to create her second company in 2009, Magatte Wade is no stranger to making hard decisions, shunning the easy route and following her instincts. Five successful years went into Adina World Beverages before her departure, a company whose concept blossomed from a much loved yet rapidly disappearing traditional Senegalese drink, bissap, made from hibiscus flowers. The brave entrepreneur left behind Adina World Beverages not because it hit difficulties or became financially unviable, but rather due to a realization that her beliefs were no longer in sync with those of the other key stakeholders.

Now the founder and CEO of Tiossan, which produces luxury, organic skincare products, she brings traditional Senegalese recipes to the global beauty and health market, selling online, in high-end boutiques across the US and in their Hudson, New York, based store. Tiossan gives 10% of all profits towards creating innovative schools in Senegal.

“Use the power of brands to change perceptions”

As an entrepreneur Wade saw the disappearing bissaps’ marketing value but more than this, her experience had taught her that branding is the opportunity to tell a story and she had one she wanted to share.

During her first TEDex talk in 2011, the young Senegalese spoke of brands creating a culture. At the time over 50% of the Top 100 World Brands were American and not a single one African. She observed that American culture is in all our everyday lives and she concluded, “America has succeeded beautifully in exporting its own culture,” it being one of the most sought after worldwide.

To Wade this means building a powerful consumer brand of Africa’s own, to put it on a platform to engage on a global level and subsequently having a say on world issues. There are solutions and Africa can be part of it. “I want my continent to be an economic and cultural power.” Rather than sitting waiting for the next trend to come from America, she said “we can change whole world’s problems by addressing those in the US” first. Selling America healthier drink alternatives like bissap, to reduce obesity levels, was a clever example.

Big ideas and big ambitions

magatte wadeAs a girl, she ran free until the age of eight in her Senegal family compound. Always the instigator of fun hunting and fishing trips, she led a pack of boys with her on her escapades, leadership skills she now draws upon greatly.

From her grandmother, who was her main caretakeruntil she went to join her parents in Germany, she was given a “tremendous feeling of confidence and boundless opportunity”. These attributes, she says, taught her more than anything she learnedat school.

Arriving in Germany, school came as a cold slap of new reality. The rigidness she felt from those initial days would follow her to France, where she studied from the age of 10 until 20 and attended PSB-Paris Business School, which lefther seeking to inject more warmth, humanity and soul into the business world. She made connections while on an exchange program to Indiana and moved there in 1997, before finding her way to Silicon Valley nearSan Francisco.

That special something

It appears her grandmother was onto something when she told her she had “something” special and “something”special to give the world. Ranked first in Forbes 2014 ”20 Young Builders of Africa of Tomorrow” as well as a Young Global Leader by the World Economic Forum at Davos, the list of impressive accolades goes on.

A woman of Africa and a visionary for her continent’s future, she remains humble and good humored. About that run-in with the Nestlé heavyweight, it was his un-gentlemanliness that allowed her to gracefully side-step a technical question she didn’t have the means to answer. It was “scarier than the day I ran into a pride of lions on the Okavango. And just as beautiful.”

Read more

Exxon Mobil to drill offshore post-Ebola Liberia in 2017

15 November 2015 Comments (0) Africa, Business, Latest Updates from Reuters

MONROVIA (Reuters) – Exxon Mobil Corp said it plans to start drilling in Liberia in 2017, in what President Ellen Johnson Sirleaf said was a sign of economic recovery after the Ebola epidemic.

The West African country produces no oil but has awarded a number of exploration blocs offshore, following the examples of Gulf of Guinea neighbours Ghana and Nigeria.

Exxon Mobil intends to start drilling late 2017, Steven Buck, its country manager for Liberia and Ivory Coast, said. The U.S. oil major signed for bloc 13 in 2003 but put the project on hold due to the Ebola epidemic.

The worst known outbreak of the haemorrhagic fever killed 4,800 people in the country and deterred investors. Liberia was declared Ebola-free in September but Johnson Sirleaf has said it will take two years to regain its economic footing.

“I am very excited to see Exxon Mobil here,” she said on Thursday after a meeting with Buck. “Their presence demonstrates to the world that Liberia is once more on the move.”

The United States has lifted economic sanctions on Liberia that it had put in place against former president Charles Taylor, who is serving a 50-year sentence for atrocities committed in Sierra Leone during its civil war.

 

(Reporting by Alphonso Toweh; Writing by Emma Farge and Makini Brice, editing by William Hardy)

tagreuters.com2015binary_LYNXNPEBAC0JB-VIEWIMAGE

Read more

Kenyan shilling falls on importer demand, stocks in up

14 November 2015 Comments (0) Africa, Business, Latest Updates from Reuters

NAIROBI (Reuters) – Kenya’s shilling gave up gains made earlier in the day due to importer dollar demand after the central bank sold the U.S. currency, while stocks inched higher.

At close of trade at 1330 GMT, commercial banks quoted the shilling at 102.35/45 to the dollar compared with Thursday’s close of 102.25/35.

“There was slight weakening towards the end of the day. Demand is still there in the market. The shilling has been capped by the central bank (dollar) sales,” a senior trader at one commercial bank said.

“Going into next week we should see more (importer) demand coming in. Government security yields are coming down. That would put pressure on the shilling, and just be supported by the CBK sales.”

The trader said dollar demand would be from sectors such as energy and manufacturing.

Traders said the central bank sold foreign exchange early on Friday, giving the shilling support after yields on the 91-day Treasury bill fell below 10 percent at auction, making it less attractive to offshore investors.

The shilling touched an intraday high of 102.10/30.

The central bank does not normally comment on interventions.

The jump in yields on T-bills of various tenors last month to above 20 percent had attracted offshore dollar inflows, helping reverse some of the recent weakness in the currency.

Dealers said the fall in yields could now start putting more pressure back on the shilling, which in September had almost touched its 2011 all-time low of 106.80.

The currency has been under pressure from a range of factors such global dollar strength and Kenya’s widening trade gap.

On the Nairobi Securities Exchange, the main NSE-20 Share Index was up 1.01 points to close at 3,917.64 points.

On the secondary market, government bonds valued at 2.22 billion shillings were traded, down from 2.58 billion shillings on Thursday.

 

(Reporting by George Obulutsa and Edmund Blair; editing by Richard Balmforth, Reuters)

Read more

Eskom applies to regulator to recover $1.6 bil via tariffs

12 November 2015 Comments (0) Africa, Business, Latest Updates from Reuters

CAPE TOWN (Reuters) – South African utility Eskom has asked the energy regulator to allow it to recover $1.6 billion in costs from 2013/14 when it ran expensive diesel plants and brought more green power to keep the lights on.

The regulator (NERSA) in Africa’s most advanced economy in June rejected a request from cash-strapped Eskom to raise tariffs and the utility said it would seek alternative ways of funding.

Eskom’s spokesman Khulu Phasiwe said the utility was over budget as it had to buy an extra 1,800 megawatts of green energy and used more diesel to run its expensive plants in 2013/14.

The regulator said it was assessing Eskom’s request and did not say when it would publish its outcome.

“Should the results of the assessment indicate that Eskom has to reimburse the customers then the price of electricity would have to decrease. Similarly, if the customers have to reimburse Eskom the price would have to increase,” National Energy Regulator spokesman Charles Hlebela said.

Eskom, which provides virtually all of South Africa’s electricity, is scrambling to repair its ageing power plants and grid. Earlier this year, the utility was forced to impose almost daily power cuts that hurt economic growth.

Eskom said last week, however, that it does not expect to implement electricity blackouts until April 2016.

The energy regulator could grant Eskom the full 22.8 billion rand ($1.6 billion) it wants to recover, or a portion thereof, with customers ultimately bearing the cost.

Independent energy analyst Ted Blom said if the full increase was granted, consumers could expect to pay between 11 and 15 cents extra per kilowatt/hour for electricity.

 

(Reporting by Wendell Roelf and Peroshni Govender; editing by David Clarke, Reuters)

 

Read more

South African drought to cost Sappi up to $10 mil

12 November 2015 Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG (Reuters) – A drought in South Africa could cost paper maker Sappi between $5 million and $10 million in the first quarter of 2016 as it would result in slower production in its mills, chief executive Steve Binnie said on Thursday.

The drought – the worst in over a century in the eastern KwaZulu Natal province where Sappi has some mills – will negatively impact profits but Binnie told Reuters the first quarter of next year would still show improvement compared with the first three months of this year.

 

(Reporting by Zandi Shabalala; Editing by James Macharia, Reuters)

 

Read more

New MTN boss hints at cut to $5.2 bil Nigeria fine

10 November 2015 Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG (Reuters) – The newly installed head of South Africa’s MTN has hinted that he would seek to reduce a $5.2 billion fine imposed on African’s biggest mobile telecoms company by the Nigerian authorities.

Non-executive chairman Phuthuma Nhleko was named executive chairman of MTN for up to six months after Sifiso Dabengwa stepped down as CEO with immediate effect on Monday.

His priority is dealing with the crisis in Nigeria, Africa’s most populous nation, which is MTN’s largest market and contributes more than a third of its revenues.

“I can’t say whether we’ll pay the whole fine. I don’t want to negotiate with Nigerian regulators on a public forum,” Nhleko, who is also a former CEO of MTN, told Talk Radio 702.

MTN has a deadline of Nov. 16 to pay the fine imposed on its unit in Nigeria for failing to cut off more than 5 million users with unregistered SIM cards.

The Nigerian communications regulator has been pushing cell phone network companies to verify the identity of their subscribers because of fears that unregistered SIMs were being used for criminal activity.

MTN would not comment on whether it has approached banks to ensure enough cash is available should the fine be enforced.

“The planning is based on all possible outcomes and contingencies and our aim is to comply with all regulations in Nigeria,” said MTN spokesman Chris Maroleng.

But analysts say Nhleko is pulling out all the stops to get the fine reduced.

“Nhleko will bring the matter to a conclusion,” said 36One Asset Management analyst Jean-Pierre Verster.

“I expect there will be a discount of somewhere between 5 percent and 75 percent.”

He sees the Nigerian regulator’s renewal of MTN’s operating licence last week as a sign that the regulator could cut MTN some slack.

Political risk consultancy eurasia said MTN would probably secure a reduction to the fine.

“We expect an eventual compromise to sharply scale back the size of the penalty (to less than half the original amount), especially as MTN takes concrete steps to address the regulator’s concerns,” it said in a published note.

Shares in MTN were down 3.9 percent at 153.75 rand by 1252 GMT, compared to a 1.6 percent drop in the Johannesburg Stock Exchange’s benchmark Top-40 index.

 

(Reporting by TJ Strydom; Editing by James Macharia and Keith Weir)

tagreuters.com2015binary_LYNXNPEBA90OX-VIEWIMAGE

Read more

Access Infra Africa signs plan for $100 mil Nigerian solar plant

10 November 2015 Comments (0) Africa, Business, Latest Updates from Reuters

ABUJA (Reuters) – Access Infra Africa has signed a joint development agreement with Nigerian Quaint Global Energy Solutions for a 50 megawatt solar power plant that is expected to provide electricity for over 600,000 homes in northern Nigeria, the partners said on Tuesday.

The west African nation has chronic power shortages due to a dilapidated transmission grid and natural gas constraints while the new generating and distribution companies are still struggling to be profitable since the 2012 privatisation of the sector.

Power output has risen since President Muhammadu Buhari was inaugurated at the end of May, fluctuating at just under 4,000 MW per day over the last few weeks versus just over 3,000 MW under the former administration, according to transmission data. But the level is still far below the country’s needs.

Businesses rely heavily on expensive diesel generators while the average Nigerian must put up with days of blackouts.

The ABIBA plant in northern Kaduna state is expected to be built in the next two years though the partners must still negotiate a Power Purchase Agreement (PPA) with the Nigerian Electricity Regulatory Commission (NERC) before it can seek financing from banks.

Access Infra Africa, a renewable power developer with a presence in 17 African countries, will contribute the bulk of the 30 percent equity put down for the $100 million project.

Quaint has also received a $1.3 million grant from the U.S. Trade and Development Agency for ABIBA.

If successful, the solar farm would be the first in the country and largest such plant on the continent outside South Africa.

Other renewable energy projects became stuck in the PPA phase under the previous administration and stalled due to an unprofitable tariff but the NERC announced a new feed-in tariff at the start of November for renewable projects up to 30 MW.

Buhari has made increasing power generation a priority as better access to power will be key to his goal of diversifying the economy.

 

(Reporting By Julia Payne; editing by Susan Thomas)

tagreuters.com2015binary_LYNXNPEBA90RQ-VIEWIMAGE

Read more

Nigeria’s Stanbic IBTC cuts 2015 loan growth forecast to 3%

9 November 2015 Comments (0) Africa, Business, Latest Updates from Reuters

LAGOS (Reuters) – Nigeria’s Stanbic IBTC has cut its 2015 forecast for loan growth to 3 percent from 10 percent, citing the impact of slowing economic activities on businesses, the local unit of South Africa’s Standard Bank said on Monday.

Africa’s biggest economy posted its lowest output growth for five years in August with its economy expanding 2.35 percent in the second quarter against 6.54 percent a year ago. Stanbic said the slowdown continued in the third quarter.

The mid-tier lender said loans grew marginally by 1 percent to 418.3 billion naira ($2.1 billion) in the first nine months and lowered its return on equity (ROE) target to 15 percent from 18 percent, it said in a presentation.

 

(Reporting by Chijioke Ohuocha, editing by David Evans, Reuters)

 

Read more

Africa, the Middle East, and the Future of Football

9 November 2015 Comments (0) Africa, Featured, Middle East, Politics

fifa

In 2010 South Africa hosted the first World Cup to be held on the African continent. Following ex-President Sepp Blatter’s scandal of corruption and vote-rigging this summer, FIFA is once again turning to the Middle East and Africa for solutions and a new vision for the organization’s future.

Since the founding of FIFA in 1904 all but one President has been European, with the exception of Brazilian João Havelange. But the candidate list confirmed by FIFA last week boasts a truly 21st century roster; four out of the seven candidates hail from the Middle East and Africa, signaling not only the globalization of football but also the millions of fans represented in this region.

The Untapped Potential

Andrew Walsh of the sports research group SPORT+MARKT, notes an “increasing awareness of the scope for growth in Africa’s key football markets”. And it’s not just FIFA that is gaining interest in the region, but all of football leadership. “Africa is a hot-bed of untapped potential for clubs due to the sheer numbers of fans there. No other continent on earth harbors such a high ratio of football interest,” Walsh added.

And he’s not exaggerating. In a 2011 study, SPORT+MARKT revealed that 72 per cent of Africa’s 1.12 billion people, aged between 16-69, have an interest in football, roughly 800 million football fans. The study shows that 55 per cent of them are interested in the Premiership, while 39 per cent actively support an English top flight team.

In comparison, Europe’s entire population is 742.5 million people- the fact that there are millions more African football fans than the entire population of Europe illustrates why FIFA’s newly diverse potential presidential candidates mirror the future of football.

south africa worldcup

The Odds

Despite the numbers, many sport bookies seem to favor Frenchman Michel Platini as the likely winner of the upcoming elections. But as a long-time FIFA executive currently on suspension alongside Blatter, many Union of European Football Associations (UEFA) members doubt that he will be able to oversee the far-reaching reform needed following Blatter’s regime- especially since he’s trying to hold onto his UEFA presidency at the same time.

The FIFA presidency requires full attention to achieve necessary reform, so it’s likely that when it comes to the vote UEFA members will swing behind a candidate that will bring a fresh-start to the organization.

The Candidates

Likely candidate Jordanian Prince Ali bin al-Hussein ran against Blatter in this summer’s elections and nearly won, with UEFA’s backing as well as the support of Asian and African regional football associations. A former FIFA Vice President, veteran politician, and current President of the West Asian Football Federation, Prince Ali seems like a worthy contender to Platini. However in the last Vice Presidential election, Prince Ali lost to Sheikh Salman bin Ebrahim, another candidate with a strong running for the presidency.

Sheikh Salman also has an impressive track record and a proven ability to consolidate votes. A Bahraini FIFA Vice President, Salman is on the task force to untangle football disputes between Israel and Palestine, and has targeted match-fixing, grassroots development, and women’s involvement during his time as President of the Asian Football Confederation, an organization mired by historic corruption and transparency issues.

“Turn FIFA around really quickly”

Salman currently denies allegations of human rights abuse concerning the violent suppression of pro-democracy campaigns in Bahrain in 2011, where over 150 athletes were imprisoned. Salman is a historic Blatter fan and a backer of the controversial Qatari and Russian World Cup bids, but he reckons he’ll “turn FIFA around really quickly”

Musa Bility, Liberian Football Association President and oil mogul, is also plagued by a controversial history concerning his 6-month football ban in 2013 and allegations that he won his presidency by buying votes for $500 a piece.

Among all the candidates, Tokyo Sexwale has the most divergent CV: a millionaire mining tycoon and anti-apartheid activist, Sexwale was imprisoned for 13 years in Robben Island alongside Nelson Mandela. A former FIFA Vice President, Sexwale was also key member of South Africa’s winning World Cup bidding team, and a chief organizer of the competition. Though the bid has drawn allegations for bribery, Sexwale has not been accused of any wrongdoing and has publicly criticized the payments, calling it “worrisome” for the future of football in a BBC interview.

Despite FIFA’s need for a fresh-start, many candidates have a history of wrongdoing to address. Currently embroiled by scandal, FIFA needs a new figurehead fast to clean up the mess and criminal reputation Blatter left behind. Recovering from collapse will be tricky without strong leadership, but it’s undoing offers a once-in-a-lifetime chance to build an international governing body fit for it’s purpose. It would be a true crime to waste it.

Read more