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Solar power hits the road in Uganda

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

Kayoola bus

A government-backed motor company introduces the continent’s first sun-powered bus.

With its abundant sunshine and growing need for efficient public transportation, Africa seems like a natural place for solar-powered vehicles. Now that idea will be tested with the introduction in Uganda of the continent’s first solar-powered bus.

The bus, called the Kayoola, is the brainchild of Paul Isaac Musasizi, chief executive officer of the government-owned Kiira Motors Corporation of Uganda.

Uganda has “non-stop sun,” Musasizi said. “No other countries manufacturing (solar) vehicles are on the equator like Uganda. We should celebrate that and make it a business.”

Powered by solar panels on the roof

He said the 35-seat bus could travel 50 miles. It is powered by two batteries. One battery is connected to solar panels on the roof; the other is charged electrically for longer trips and night journeys. It takes only one hour to charge each battery, according to Musasizi.

Kiira has produced a prototype of the Kayoola and ran a test drive in February in Kampala.

The prototype cost $140,000 to produce but the company said the price tag would be about a third of that amount – $45,000 – with mass manufacturing.

Ambitious solar vision

The bus is one part of Musasizi’s larger vision for a solar-powered automobile industry in Uganda, including service stations that have solar pumps to charge cars instead of selling them gasoline.

He wants Uganda to follow the lead of Morocco – which recently switched on the world’s largest solar power plant – in developing solar farms to power vehicles and other everyday devices.

He noted that efficient transportation is essential to the Ugandan economy.

“Without proper transportation, we cannot have a good economy.”

The Ugandan government funds Kiira through the Presidential Initiative on Science and Technology. The small company currently has 32 people on staff.

Company seeks investment to grow

Musasizi said he also hopes to attract private investors who are interested in green technology. He would like to grow the company to 200 employees in five years and produce 50 buses a year.

Uganda has been planning to develop an auto industry since 2007 after students and staff from Makerere University visited the Massachusetts Institute of Technology to study innovation.

Kiira plans to start manufacturing automobiles in 2018.

The auto industry is part of Vision 2040, a blueprint for Uganda’s economic development launched late last year by Prime Minister Ruhakana Rugunda. Rugunda said the government would support Kiira until the company is able to put vehicles on the market.

Kiira plans to produce sedans, pickups and crossovers, starting with production of 305 automobiles in 2018 and growing to 60,000 per year in 2039.

Nigeria also boosts auto production

Nigeria is also seeking to grow its auto manufacturing, primarily to replace imported cars with locally produced vehicles. Nigeria plans to assemble 500,000 autos annually for the next five years compared to production of 10,000 vehicles in 2014.

International automakers including Nissan, Ford and Honda, as well as local manufacturers are gearing up to increase production. The government has granted licenses to 36 manufacturers.

First solar bus operates in Australia

Meanwhile, solar vehicles remain a rarity globally; Australia, China, Austria and the United States have developed solar vehicles while India is working to launch solar-powered transport.

Australia began operating the world’s first solar-powered bus in 2007.

The Tindo as the bus is named after an indigenous word for sun, operates in Adelaide. It uses 100 percent solar power that it receives from a photovoltaic system at Adelaide’s central bus station rather than from solar panels on the bus. The bus can carry up to 40 people, including 25 seated.

While Uganda is not the first country to develop solar vehicles, Musasizi hopes the country will become a leader in the field.

“Our passion for automobiles will help us develop solar motor technology,” he adds. “I’m hoping we will become known as the innovation hub for solar transportation technology in the world.”

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Egypt says foreign reserves rise to $17.011 bln at end-April

4 May 2016 Comments (0) Business, Latest Updates from Reuters, Middle East

CAIRO (Reuters) – Egypt’s net foreign reserves rose to $17.011 billion at the end of April, the central bank said on Wednesday.

Reserves stood at $16.561 billion at the end of March.

Egypt had roughly $36 billion in reserves before an uprising in 2011 overthrew Hosni Mubarak and ushered in a period of political turmoil that scared away tourists and foreign investors, key sources of foreign exchange.

Last month the United Arab Emirates pledged $4 billion to Egypt, half in investments and the rest as a central bank deposit to support cash reserves.

 

(Reporting by Asma Alsharif; editing by John Stonestreet)

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International Marrakech Air Show 2016: Bigger Than Ever

4 May 2016 Comments (1) Business, Featured, Middle East

Marrakech Air Show 2016

The Marrakech Air Show is an international aerospace exhibition and conference, attracting businesses from the industry and worldwide spectators.

On Saturday, the fifth biennial International Marrakech Air Show (IMAS) concluded in stunning style. With every year that passes, it seems that this marquee event becomes ever more important. This year saw in excess of 200 industry leading companies take part and covered more than 70,000 sq. meters of exhibition space. While dazzling aerial displays on the final day are what capture the public’s imagination, the real impact of the event is realized through the forging of new business ties amongst the elite of the aeronautics world. This global exhibition is internationally recognized as being one of the top events on the international aerospace and defense (A&D) calendar, attracting industry leaders and international spectators.

The opening ceremony was kicked off in a traditional fashion by the Moroccan marching band. Afterwards, the Royal Moroccan flag and the International Marrakech Airshow flag were flown in tandem over the airfield by military helicopters. This was followed by a breathtaking display from The Royal Moroccan Army’s Aerobatics team who piloted F16 fighters and concluded the ceremony. The gravitas of the occasion was underscored by the attendance of Moroccan Head of Government, Abdelilah Benkirane.

Attendees and Spectators

Exhibitors included Civil Aviation, Spaceflight, Military Aviation, Defense Technology (from land, air and sea) and Research and Defense authorities from around the globe. There were both static and air exhibitions which included industry leaders and national representatives.

Marrakech Air Show 2016 conferenceKey attractions among the static displays were Dassault Aviation’s Rafale and a long-range Falcon 900LX which required a six-man exhibition team to staff the aircraft and show off its capabilities. Also prominently displayed was a U.S. Air Force C-130J Hercules, from the Ramstein Air Base in Germany. This Behemoth stood out as a symbol of partnership whilst promoting regional security throughout the African continent.

Aerobatic display teams from Italy, the UAE, Spain, The USA and the Royal Moroccan Air Force put on stunning shows for eager onlookers, competing over style and inflight capabilities to battle for pre-eminence in their field. The Italian aerobatic team, Frecce Tricolori, performed at the IMAS for the first time ever. They put on a particularly striking display in traditional Italian colors: red, green and white.

US and Moroccan bonds

With the US contingent of the show boasting 15 participating companies, and as one of the show’s largest exhibitors, it shows how important this region is to the US aerospace and defense industry. Among the companies representing the US were Boeing, FLIR, Lockheed Martin and Pratt & Whitney who were organized by Kallman Worldwide in collaboration with government agencies including the departments of Commerce, Defense and State. “The growth of the show and the expansion of military and commercial aerospace infrastructure in Morocco says a lot about the long-term opportunities for our exhibitors here,” said Kallman Worldwide CEO, Tom Kallman.

Not Just an Air Show

In reality, The International Marrakech Air Show is much more than just an air show. It’s an invaluable business and networking occasion for a variety of entities. This year saw exhibitors specializing in fields such as aircraft construction, satellite systems, avionics and onboard components, propulsions engineering, weapons systems, land defense armaments and many more. Senior government representatives from forty countries came to rub shoulders with specialist firms, legislators and aeronautics giants.

In the aeronautics sphere, Morocco has become the strategic gateway between Africa and the rest of the world. Commercial air travel is becoming increasingly more viable and popular for African citizens; authorities and private enterprises are both maneuvering to meet this demand. Additionally, African governments are increasingly looking to invest in defense capabilities and associated infrastructure. Big business opportunities beckon and the Marrakech Air Show is designed to facilitate the process.

In recent years, the Moroccan aeronautics sector has seen rapid growth of between 15-20% per annum. Firms such as Boeing, Lockheed Martin, Airbus, Bombardier and a host of others now maintain a permanent presence within Morocco’s borders. In total, more than 120 world class aeronautics organizations now operate in the country. The success of the airshow has helped demonstrate to businesses that Morocco is the premier platform from which to service new markets in the region.

Ultimately, The International Marrakech Airshow 2016 was as a resounding success. The event delivered on two fronts, firstly as a thrilling spectacle of modern aviation, and secondly as a vehicle by which business and aeronautics can flourish, bringing benefits not just to Morocco but to the entire continent.

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SABMiller, Coke agree concessions with South Africa over bottling merger

4 May 2016 Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG (Reuters) – SABMiller and Coca-Cola have agreed concessions with the South African government to win approval for a deal to combine their soft-drink operations, the companies said on Wednesday.

The concessions, agreed with the South African Ministry of Economic Development, include a three-year freeze on layoffs and the companies investing 800 million rand ($54 million) to support small South African businesses.

SABMiller, which is in the process of the being taken over by larger rival Anheuser-Busch InBev, agreed in November to team up with Coke to create Africa’s largest soft drinks bottler, Coca Cola Beverages Africa.

The business will have annual sales of $2.9 billion and ambitions to corner the fast-growing market on the continent.

The all-equity deal was given a preliminary approval in December by South Africa’s Competition Commission, which said it could go ahead on several conditions including Coca-Cola Beverages Africa limiting jobs cuts to 250 and making sure it buys cans, glass, sugar and crates from local suppliers.

The Commission investigates deals for any antitrust issues and recommends remedies to the Competition Tribunal, which makes a final ruling. A Tribunal hearing on the proposed deal is due to start next Monday.

South Africa has a history of taking its time over approving deals, partly because regulators have a public interest mandate to safeguard jobs in addition to an antitrust mandate to protect competition.

“I am very happy that we have reached this agreement and hope we now have a clear path to the conclusion of this transaction,” said SABMiller Chief Executive Officer Alan Clark.

Coca-Cola Beverages Africa will account for 40 percent of all Coke volumes sold in Africa, serving 12 southern and eastern African countries. It will be headquartered in South Africa, its largest market.

The deal would also hand Coke an extra 20 brands, including sparkling soft drink Appletiser, whose fruit juice concentrate is sourced from South African producers.

Coca-Cola and SABMiller agreed to maintain and grow Appletiser production operations to serve the domestic market and use as a base from which to export elsewhere in the world.

The Gutsche family, Coke’s South African bottling partner, will also be a shareholder in the Coca-Cola Beverages Africa.

($1 = 14.6759 rand)

(Reporting by Tiisetso Motsoeneng; Editing by Mark Potter)

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West Africa pirates switch to kidnapping crew as oil fetches less

3 May 2016 Comments (0) Africa, Business, Latest Updates from Reuters

LONDON (Reuters) – Pirate gangs in West Africa are switching to kidnapping sailors and demanding ransom rather than stealing oil cargoes as low oil prices have made crude harder to sell and less profitable, shipping officials said on Tuesday.

Attacks in the Gulf of Guinea – a significant source of oil, cocoa and metals for world markets – have become less frequent partly due to improved patrolling but also to lower oil prices, according to an annual report from the U.S. foundation Oceans Beyond Piracy (OBP), which is backed by the shipping industry.

“They have had to move towards a faster model and that faster model is kidnappings,” OBP’s Matthew Walje said, noting that ransom payouts were as high as $400,000 in one incident.

“It only takes a few hours as opposed to several days to conduct the crime itself,” he told Reuters at the report’s launch in London. “Fuel prices have fallen, which cuts into their bottom line.”

OBP said violence had also risen, including mock executions, and last year 23 people were killed by pirates there.

“A lot of people are dying from piracy – nowhere near that number died in the last few years in the Western Indian Ocean (due to Somali piracy),” Giles Noakes, of leading ship industry body BIMCO, told the briefing.

“We are particularly concerned by the issue,” said Noakes, whose association audits the OBP’s annual report.

Last month, Nigeria and Equatorial Guinea agreed to establish combined patrols to bolster security.

Analysts say the pirates have emerged from Nigerian militant groups such as the Movement for the Emancipation of the Niger Delta and OBP’s Walje said a growing problem was the splintered nature of the various gangs operating in West Africa.

“It is more fractured than it would be off Somalia where there were a few major gangs and kingpins operating,” he said.

OBP estimated costs related to piracy and armed robbery in 2015 in the Gulf of Guinea were $719.6 million, 61 percent of which was borne by the industry. The 2014 cost was $983 million, 47 percent of which was borne by the maritime sector, it said.

 

(By Jonathan Saul. Editing by Louise Ireland)

 

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South African investment firm RMB Holdings to buy stake in Mall of Africa developer

3 May 2016 Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG (Reuters) – South African investment firm RMB Holdings Ltd. plans to expand its portfolio by buying a stake in unlisted Atterbury, builder of the Mall of Africa, one of the largest shopping venues in the country.

RMB Holdings Limited, which holds a 34 percent stake in FirstRand, the largest banking group by value in Africa’s most industrialised economy as its only major asset, said on Tuesday it will buy 25.01 percent of Atterbury.

Although it did not put a price on the cost of investment for Attebury, RMB Holdings said in the statement it would fund the deal through preference shares.

RMB Holdings said in a statement it aimed to use Atterbury to spearhead its retail and industrial property business.

The Mall of Africa, which opened its doors last week, targets consumers in Midrand a middle-class suburb north of the commercial hub of Johannesburg.

“We thought it was a missing element of our overall portfolio,” RMB Holdings Chief Executive Herman Bosman told Reuters, referring to property investments.

Shares in RMB Holdings fell 4.60 percent on the bourse by 1358 GMT, as stocks tumbled across the board tracking a sell-off in emerging markets.

 

(Reporting by Tanisha Heiberg; Editing by James Macharia)

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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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IMF sees sub-Saharan Africa growth near two-decade low in 2016

3 May 2016 Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG (Reuters) – Economic growth in sub-Saharan Africa will likely slow this year to its weakest in nearly two decades, hurt by a slump in commodity prices, the Ebola virus outbreak and drought, the IMF said on Tuesday.

In its African Economic Outlook, the Fund said the region would likely grow 3 percent this year – the lowest rate since 1999 – after expanding by 3.4 percent in 2015.

Growth was seen recovering to 4 percent next year, helped by a slight recovery in commodity prices, and the Fund said it was still optimistic about the region’s prospects in the longer term.

“However, to realise this potential, a substantial policy reset is critical in many cases,” the Fund said.

Affected countries needed to contain fiscal deficits as the reduction in revenue from the commodities sector was expected to persist, it added.

Major oil exporters Angola and Nigeria were hardest hit by the slump in commodities prices, as were Ghana, South Africa and Zambia, the report said.

Guinea, Liberia, and Sierra Leone were only gradually recovering from the Ebola epidemic, while several southern and eastern African countries including Ethiopia, Malawi and Zimbabwe were suffering from a severe drought, the IMF added.

On the upside, Côte d’Ivoire, Kenya and Senegal would see growth of more than 5 percent, mostly “supported by ongoing infrastructure investment efforts and strong private consumption,” the report said.

“The decline in oil prices has also helped these countries, though the windfall has tended to be smaller than expected, as exposure to the decline in other commodity prices and currency depreciations have partly offset the gains in many of them,” it added.

 

(Reporting by Olivia Kumwenda-Mtambo; Editing by Andrew Heavens)

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Nigeria to begin exploratory oil drilling in Chad Basin by October

2 May 2016 Comments (0) Africa, Business, Latest Updates from Reuters

ABUJA (Reuters) – Nigeria plans to begin exploratory drilling in search of oil in the northeastern Chad Basin region by October, the head of the state oil company has said.

Emmanuel Ibe Kachikwu, who last year said Africa’s biggest crude exporter may be on the verge of a significant oil find in the Lake Chad area, said in a statement on Sunday that seismic studies were ongoing.

“Drilling activities will commence by the last quarter of 2016,” the Nigerian National Petroleum Corporation (NNPC) chief, who is also minister of state for oil, was quoted as saying in the statement issued by the state oil company.

Africa’s biggest economy has been hit hard by the sharp fall in global oil prices because it relies on crude exports for around 70 percent of government revenue.

NNPC spokesman Garba Deen Muhammad said exploration in the region was intended to “add value to the hydrocarbon potentials of the Nigerian inland basin, provide investment opportunities, boost the economy as well as create millions of new jobs”.

 

 

(Reporting by Camillus Eboh and Alexis Akwagyiram, editing by David Evans)

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Faso Soap: A weapon against malaria?

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

faso soap

A soap created by two students in Burkina Faso holds promise as an affordable way to fight the devastating disease.

As malaria threatens millions of people in Africa, a mosquito-repellent soap invented by two students in Burkina Faso may help prevent infection.

Faso Soap could be tested and produced if a crowd funding campaign launched in April is successful.

The “Save 100,000 Lives” campaign hopes to raise $113,000 to test and manufacture the soap. The goal is to save 100,000 lives in the Democratic Republic of the Congo, Tanzania, Ghana, Nigeria and Uganda, through malaria prevention by 2018.

Gerard Niyondiko of Burundi and Moctar Dembele of Burkina Faso created Faso Soap when they were students at the International Institute for Water and Environmental Institute in Ouagadougou, the capital of Burkina Faso.

Prize-winning invention

It was the first project from the African continent to win the $25,000 grand prize at  University of California Berkeley’s Global Social Ventures Competition in 2013, beating 650 entries from 40 countries.

Globally, more than three billion people live in areas at risk for malaria, mostly in poor tropical and sub-tropical regions.

Africa is hardest hit by the debilitating disease. An estimated 430,000 people die from malaria each year and 90 percent of the deaths occur in sub-Saharan Africa, mostly among children under five years old, according to one U.S. official.

Sheila Paskman, chargé d’affaires at the U.S. Embassy in Liberia, said a child dies from malaria every two minutes in Africa, where the disease is also responsible more than half of all school absences. “The disease costs the continent billions each year in health costs and lost productivity,” she said.

Africa most vulnerable

According to the Centers of Disease Control and Prevention, Africa is most vulnerable for a variety of reasons: A predominant species, Plasmodium falciparum, is most likely to cause death; the climate allows transmission to occur year round; and scarcity of resources hinders malaria control.

Nigeria, Burkina Faso, Sierra Leone, Mozambique and the Democratic Republic of the Congo are hardest hit by the disease.

In other areas of the world, such as parts of South Asia and Latin America, malaria is less likely to cause death but can still result in severe illness and incapacitation, according to the CDC.

Eradication and control efforts include insecticide-treated mosquito nets, indoor insecticide spraying campaigns, and community education campaigns.

Officials cite progress

While the disease remains a serious problem, eradication efforts are paying off.

Since 2000, malaria death rates have fallen by 60 percent, and new cases have dropped by more than one third globally, according to the World Health Organization. In Africa, death rates dropped by more than 65 percent overall and among children less than 5 years old.

Faso Soap could be another weapon in the arsenal fighting malaria.

Niyondiko said the soap is made from Shea butter, lemongrass oil and other ingredients.

Soap is accessible, affordable

He said Faso Soap can repel mosquitoes for several hours after use and could especially offer protection in the early evening when people are still outdoors and mosquitoes appear.

The team hopes to engage in partnerships with large soap producers and distributors to create a product that is competitive with conventional soap.

The French Association for Research Against Infectious Diseases in Africa is collecting the donations. So far, the project has raised more than $42,000 from 464 contributors.

Now working with social entrepreneurs Lisa Barutel and Franck Langevin in Burkina Faso, Niyondiko said the aim is to provide an accessible and affordable product for people who may not be able to afford anti-mosquito products or nets.

“Soap is a commodity product and not going to add other additional costs to the population” as they will buy soap in any case, Niyondiko said.

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