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The 10 best African airlines

23 August 2016 Comments (1) Africa, Business, Featured

Kenya Airways

African airlines have worked to improve safety and reliability to obtain eight spots in the top 100 global airlines, according to rating agency Skytrax.

Skytrax has published its latest survey, with 8 African Airlines falling into the “Top 100” global airlines. This is progress in a continent hardly known for its aviation prowess. Although Africa is the second largest continent, with the second largest population, it only accounts for 3% of all air traffic. High poverty rates with poor infrastructure and investment has typically stifled Africa’s air industry. Dire safety records, exorbitant fuel taxes and uncooperative governments have also compounded the problems for those who want to travel around Africa and internationally.

Fortunately for frequent flyers, there is a growing market for air travel in Africa. This is driven in part by increased business, trade and tourism along with a rising number of business “hubs” driving a demand for affordable and reliable flights routes. Back in 2012, African air traffic only accounted for 1% of all air travel and only 5 African airlines made it into the top 100 list.

Skytrax Awards: the pinnacle of safety and excellence in aviation

The Skytrax awards are a global benchmark in quality and safety and are widely known as the “Passenger’s Choice Awards” due to their selection process. Consumers from across the globe take part in a satisfaction survey to determine the winners; no external sponsorship, payment or influence alters the results.

Clear winners of the Skytrax awards are the South African airlines. Heading up the country’s list is South African Airways, a consistently well-rated airline that flies to 38 destinations and is a premier international aviation leader. Mango also made the list at number eight, a subsidiary of South African Airlines and a low-budget alternative with well-rated services and safety records. Finishing off the South African contingent is Kulula at number seven, another “no-frills” airline, operated as a franchisee of British Airways. South Africa’s reputation for business and status as a regional trading hub, coupled with its higher than average economic statistics can account for its prominent position in Africa’s aviation industry.

Luxury islands and South Africa coming out on top

Kenya Airways upsets the status quo by winning Africa’s Leading Airline at the 2016 World Travel Awards. In doing so it unseated South Africa Airways as Africa’s best airline, an award they had taken home for 22 years in a row. They also won the “Best in Business Class” award, clinching both the overall and luxury travel recognition, something many airlines struggle to do. Kenya airways has recovered spectacularly from its problematic history. Dogged by accidents in the early 2000s, “The Pride of Africa” has made great safety improvements to become a world-class airline. Kenya Airways Marketing Director, Chris Diaz explained, “This is sign enough that we are putting the dark clouds behind us to cruise unimpeded as Africa’s most respected airline.”

Air Mauritius and Air Seychelles are beaten only by South African Airways on Skytrax’ list. Their prominence as travel leaders is unsurprising due to their luxury locations and high levels of international tourism which drives expectations and assures quality. Air Mauritius has code sharing agreements with Emirates and other world class airlines, which is a certain sign of excellence, due to Emirates’ notoriously high standards in partnerships. Air Seychelles boasts Etihad as a stakeholder and was recently awarded a 4 star rating at the Skytrax awards.

All-Boeing fleets and drastic turnarounds

Ethiopian airlines

Ethiopian airlines

Also highly rated was Ethiopia Airlines, coming in at number four on Skytrax’ list. The firm also won Best Airline in Economy award at the World Travel Awards 2016. Ethiopia Airlines is the flag carrier of Ethiopia and has a strong reputation for cargo travel as well as its popular passenger air travel. TAAG Angola Airlines successfully made 2016’s list, real progress after a 2007 European travel ban and subsequent re-haul of the entire fleet and board. Now, it is has a Boeing-only fleet and has agreements with Emirates and other top-class airlines.

The airlines rounding off the top 10 are Royal Air Maroc and Air Austral. Air Maroc is fully owned by the Moroccan government and has its headquarters in Casablanca. It was formed in 1953 and also operates an all-Boeing fleet; it has now become a formidable force in African air travel. Taking risks, they were the only airline to continue flying to Sierra Leone, Guinea and Liberia amid the Ebola outbreaks, becoming an essential part of the fight against the disease and supplying the region with resources and medical staff. The last airline is Reunion Island’s Air Austral who has a particularly young fleet for African aviation, with an average age of 5.2 years. The success of these airlines demonstrates that the industry has come a long way in recent years, drastically changing the perception of African air travel.

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Nana Boateng Osei and his sustainable vision for Ghana

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

Nana Boateng Osei

Nana Boateng Osei and his company Bôhten have created an innovative and sustainable product that is benefiting his home country of Ghana.

Nana Boateng Osei is the young man behind the stylish luxury eco-eyewear company Bôhten. He hails from a Ghanaian family that is deeply proud of its heritage. He has travelled the world, conceived various outlandish business ideas and even appeared on the Canadian version of Dragon’s Den. Today his company Bôhten is going from strength to strength, while also giving back to his home country, Ghana.

Travel, the Big Apple, education and Lilo

Osei’s early life certainly wasn’t dull. Due to his father’s job as a diplomat for the Foreign Ministry of Ghana, Osei and his siblings spent long periods of time in countries such as the U.K, the U.S, Yugoslavia and South Africa. His family eventually settled to live permanently in New York City. However, they held on tightly to their Ghanaian roots; Osei has said that at home his family would always speak Twi and eat traditional Ghanaian dishes. They became closely involved in the Bronx’s large Ghanaian community and retained strong links with family in their home nation.

In 2007, Osei moved to Canada to study Environmental Science at the University of Ottawa. It was while at University that he first began to create and pursue his own business ideas. In 2009, Osei opened a marketing firm Lilo Enterprises, which was designed to connect sustainable and environmental product manufacturers to consumers. Lilo foreshadowed the creation of Bôhten, highlighting the causes that Osei holds dear. He also flirted with other unorthodox businesses such as vertical gardens and limousine services during this time.

Ghanaian beginnings and the Dragons’ Den

Nana Boateng Osei

Bôhten eyewear was born from the culmination of multiple ideas. Firstly, Osei was inspired by a trip back to Ghana where he was moved by the natural beauty of the area. Also, some of his family worked in the local wood business, which interested him. These factors swirled with his love of fashion and passion for sustainability. He said, “At some point, my interests began to play off of each other and during that trip, the seed of the idea for using reclaimed wood for glasses was planted.”

In 2012 he started initial work on Bôhten while still at University. He derived the company from his own name, Boateng, which means prosperity in Twi. Osei got the chance to pitch his business in the infamous Dragons’ Den during a student special episode. While he impressed with his pitch, he didn’t receive an offer from the Dragons, who felt the business was too young.

Osei wasn’t deterred by the Dragons’ decisions. He went on to bring family members into the business to help him grow the organization. Osei has said that with hindsight, investment partners may have stifled his creative freedom, and that the company has managed to move forward without them by knuckling down and getting things done.

The exposure from appearing on the show led to skyrocketing sales and growth. Some say the Dragons missed out.

A sustainable vision for Ghana

Sustainability is at the heart of the business; Bôhten uses reclaimed wood from items such as chairs and tables, all sourced in Western Africa. Additionally Osei wants to use Bôhten as means to better the economy in Ghana. The company currently manufactures its glasses in Canada. However, later this year the firm intends to open a full-scale manufacturing plant in Ghana. The plant going live will be the realization of a long term ambition for Bôhten. “Our ultimate mission is to create a zero-waste facility in Africa that will not only serve to create jobs but also educate people the importance of eye care, sustainable design and social entrepreneurship.”

Osei says that eye care is woefully inadequate in Africa. He explained that the high levels of UV radiation on the continent are responsible for some of the issues that African’s face. To combat such problems, Osei has partnered Bôhten with eyesight charity Sightsavers. For every sale Bôhten makes, the company will make a donation to Sightsavers programs, aimed at eradicating avoidable blindness in West Africa.

As Bôhten grows, so will the benefits that it brings to Ghana and other nations in the region. Nana Boateng Osei is tenacious, compassionate and conscientious individual; a great example for Ghana and Africa as a whole.

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Tanzania extends its e-tax system to cut fraud

21 August 2016 Comments (0) Africa, Featured, Politics

John Magufuli

Tanzania’s president, John Magufuli, has extended the e-tax system to all government bodies as he bids to slash fraud.

Tanzania’s president, John Magufuli, has been in office for less than a year, but he is already making a name for himself as a staunch opponent of fraud and corruption. Magufuli has attacked tax evasion and corruption, in a bid to ensure that the government no longer loses billions of dollars in unpaid funds. One of the most significant measures taken in this battle with tax evasion has been the announcement that the nation’s e-tax system will now apply to all government departments and bodies.

The e-tax system

It was 6 years ago that Tanzania first introduced its e-tax system, but it has taken until now for the system to be applied to government positions and departments.

The e-tax system involved the distribution of Electronic Fiscal Devices (EFDs) by the Tanzania Revenue Authority (TRA) to Tanzanian businesses. The EFD is an advanced version of a traditional cash register that records all transactions, and provides the TRA with an easily processed record of the tax owed.

Prior to this point, businesses recorded sales in hand written books, which not only allowed much easier deceit, but ensured that the TRA’s job was far more difficult. Director of Education and Taxpayer Services Richard Kayombo said that businesses would claim to have sold less, and that the old system was practically “worthless” in terms of stopping tax fraud.

In contrast, EFDs are compatible with the TRA’s own Electronic Fiscal Device Management (EFDM), which provides the government with real-time sales information. Kayombo said, “The system enables us to get information directly from a trader when they make business transactions.”

An Electronic Fiscal Device (EFD)

An Electronic Fiscal Device (EFD)

While the system was initially rolled out to large scale traders in 2010, a second drive in 2013 saw it become compulsory for mid-sized traders too. However, it has taken President Magufuli until now to extend this measure to governmental departments and bodies too.

Magufuli not only feels that it will be a huge financial boon for government coffers, but that it is also a matter of principle. Magufuli explained, “We forced entrepreneurs to capitalize on the electronics tax collection while we, in government, have not resorted to the same thing, which is a total contradiction.”

The increased reach of Tanzania’s e-tax system ensures that the government cannot be accused of hypocrisy in regards to its stance on corruption, and it also means that taxation revenue is expected to exceed the government’s original target for the financial year. The commissioner general of the TRA, Alphayo Kidata, predicted that takings would surpass “the collection target of 15.5 trillion Tanzanian shillings during the 2016/2017 fiscal year.”

This is a figure akin to more than $7 billion.

Looking to reap the rewards

In the first 2 months of Magufuli’s crackdown on taxes last year, the TRA collected around $700 million in taxes. However, while some of this was achieved by targeting corrupt officials and business owners, the true impact of the president’s policy will not be seen until the end of the financial year.

The rollout of e-taxes to all government bodies was announced only last month, after Magufuli met with the Rwandan president, Paul Kagame, who has successfully implemented a similar system in his nation. Rwanda has offered to send IT experts to assist Mr. Magufuli’s government in the implementation of the technology, and the announcement was greeted with widespread approval by Tanzanian commentators and experts. If the move is as successful as hoped, Magufuli’s government will be in a strong position to build the economy and social infrastructure.

In 2014, tax collections covered 75% of government expenditure, but universal e-taxation could make a dramatic difference to this. Mr Kayombo confirmed that in the first year of commercial businesses using EFDs, tax revenue rose by 23%, and by 27% in the second year. A similar success within government institutions would provide Tanzania with a huge influx of revenue.

Professor George Shumbusho, Senior Lecturer at Mzumbe University, felt that it was an excellent move from the government, and one that could have a massive impact, exclaiming, “This is a commendable decision given the fact that the country has been losing a lot of money to unscrupulous public officials…With this system, the government may be able to fund its budgets by 100 per cent.”

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Starting up in Nigeria: a challenging environment

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

Nigeria startups

Nigeria has massive potential for innovative tech start-ups, although there are numerous obstacles in their way.

While it is officially Africa’s biggest economy, the Nigerian nation is struggling. Talk of a recession has darkened the horizon for over a year. The slump of global oil prices has been a hammer blow to the country, while terrorism and oil refinery problems have worsened the situation. Nigeria is currently beholden to oil for 70% of its revenues; it must rebalance its economy to unbind itself from market volatility. The country realizes this, and is making an effort to diversify its revenue sources. Many are starting to look toward innovative start-ups to take the country in a new direction.

Big tech potential in Nigeria, Konga leads the way

The conditions in Nigeria are rife for daring tech start-ups to create new solutions and drive growth. Unlike other regions on the continent, Nigeria has high rates of mobile penetration with approximately 75% percent of its 175 million people using mobile phones and data services, making it the largest mobile market in Africa. However, this market is currently woefully underexploited. According to a 2013 report by consultancy firm McKinsey, only 1.5% of the country’s $500 billion economy took place online. This void presents a glaring opportunity for tech start-ups to create revolutionary new services.

Konga, is one such start-up that seized the initiative. Launched in 2012, Konga was an early pioneer in Nigeria’s tech space, offering online retail services. Today the company is thriving, offering a range of original solutions, which have connected all manner of suppliers and manufacturers to consumers across the country. Other innovators are also following Konga’s lead, carving out their own niche in Nigeria. However for every success, many start-ups struggle to overcome barriers in their way.

Unusual obstacles: reluctance and electricity

The issues facing start-ups vary. Some are complicated while some are frustratingly mundane. One simple yet formidable roadblock that start-ups face is the availability of electricity. For a new business trying to carve its own niche in the ecommerce space, a reliable energy supply is essential. However, when energy supply is unreliable, as it often is in Nigeria, a start-up has to generate its own power and purchase alternative fuel sources in order to consistently operate. Ultimately, this can lead to greatly increased costs which squeeze margins, snuffing the life out of promising but cash-strapped startup ventures.

KongaPay launch

On the whole, Nigerians are still very wary about parting with their money over the internet, for fear of their capital or financial information being stolen. This paranoia is not entirely without merit, as Nigeria is a hotspot for online scamming and phishing schemes. In order to accommodate these fears, some successful start-ups such as Konga and Jumia have built cash-only payment methods into their business. Konga has also recently created a payment system called KongaPay whereby money is held securely until orders are delivered. Despite these efforts, reticence remains. While some start-ups have survived, this reluctance has certainly deterred some consumers from using new services, reducing the customer base that new start-ups rely on for growth. Tech firms must realize they need to foster a safe and reliable online payment environment, and convince the masses to use it.

Investment is needed, although so is caution

New accelerator programs sponsored by large foreign entities are helping more start-ups get off the ground, especially in the Fintech space. However, Nigerian banks aren’t traditionally interested in providing loans to risky start-up ventures, and encourage start-ups to attract private equity investors instead. Fortunately, foreign private equity is really starting to pick up in Africa, with more and more investors willing to take a punt on a good idea. Regrettably, these investors sometimes undervalue Nigerian enterprises, and strong-arm inexperienced Nigerians into unfavorable deals.

Other issues such as the country’s poor logistics system can bring woe to start-ups who rely on delivering a physical product. Sometimes the lack of skills in critical areas such as accounting and marketing can kill a promising tech business before it can get off the ground. In other instances, eager entrepreneurs try to make an idea that has worked elsewhere work in Nigeria; without analysis and adaptation this often leads to the graveyard.

A veritable gauntlet of obstacles faces Nigerian start-ups. However, those that have survived are serving as a shining example to those that wish to follow. Success is more likely if a fledgling firm is aware of the pitfalls ahead, provided they have a great idea, a solid business plan and the business acumen to make it all come together.

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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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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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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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A report from The South African Property Owners Association’s 2016 Convention

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

SAPOA Awards

The South African Property Owners Association celebrated its 50th anniversary at its annual convention this year, with a renewed focus on development.

The South African Property Owners Association (SAPOA) is in its 50th year of existence, and its annual convention celebrated this landmark moment. However, while celebration of half a century’s existence was notable, so was a focus on the challenges that investors face in newly emerging markets. South Africa has changed almost immeasurably in the past 50 years, and trying to create an environment that encourages positive investments, both domestically and abroad, was key to most speakers.

Expanding African Investment

A focal point of the SOPOA convention was how to encourage foreign investors to embrace opportunities within Africa, as the body aims to create growth that will reward South Africa’s own developers and investors. The convention was held at the Sandton Convention Centre in Johannesburg, where leading figures in property development, from journalists to construction groups, met to exchange ideas on furthering the expansion of property ventures in Africa.

While much of any planned expansion will be within South Africa, many experts are hoping to encourage their own developers, and those from outside Africa, to see exciting opportunities across the continent. Experts agreed that investors needed to recognize that African property investment was a long-term game, and to treat the markets with the same respect that they would in America or Europe.

Bronwyn Corbett, the head of the pan-African property group Mara Delta, explained that patience was key as she said, “Many South African investors don’t actually know what happens on the ground in Africa and may expect things to happen more quickly.”

Mara Delta holds a property portfolio worth $430 million that spans 6 African nations, from as far north as Morocco to as southerly as Mozambique. Companies like Mara Delta offer South African investors opportunities to invest in these outside markets, and in turn help bolster the growth of property value within the nations where their holdings lie. The evidence suggests that a rising number of investors are seeing prospects in Africa. Ian Anderson, the chief investment officer at Grindrod Asset Management, told SAPOA listeners that a mounting number of companies were asking about openings within African property.

Likewise, South Africa’s largest real estate investment trust, Growthpoint Properties, is already working alongside Investec to find new assets outside of South Africa, and yet still within the continent.

The challenges faced

While a positive approach was extolled, any objective discussion of the continent’s opportunities had to address the difficulties that could be faced. By openly discussing some of the problems and concerns around property investment within Africa, organizers hope to find solutions, and assuage investor concerns.

One of the main problems discussed was that many investors felt concern over the varied currencies of Africa. Africa uses more than 40 difference currencies, and the process of exchanging these can be time consuming. In addition, many African banks suffer from a slower speed of service that can give investors cold feet.

Corbett and others also discussed concerns over limited debt facilities within some African markets, but she insisted that companies like Mara Delta existed to relieve investors of the need to understand every market’s nuances.

Moreover, despite the issues that came up, the tone from Corbett was one of optimism, as she stated, “Each African country is different. Each is a challenge, and it wouldn’t be worth doing this if it wasn’t a challenge.”

The Convention and its awards

SAPOA celebrated its 50th anniversary with a grand convention, which offered attendees the opportunity to enjoy golf courses and a banquet, alongside the more serious nature of the talks and presentations. As with all of SAPOA’s conventions there was also an awards ceremony to recognize outstanding performers within property.

Some of the most notable awards included the Mall of the South for best retail development, Google Head Office Building for the Overall Green Award, Mitchell’s Plain Hospital for the Overall Transformation Award, and Frank’s Place for the best residential development.

The most prestigious award for the 2016 SAPOA Property Development Awards in Innovative Excellence went to Lion Match Company.

As many financial markets face uncertain times, the experts at SAPOA felt confident that property will provide stable investments for many people, and Africa can offer an exciting and prosperous opportunity for those willing to invest.

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South Africa Looks to Modern Mining for Youth Empowerment

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

youth in mining summit

South Africa’s mining industry to make use of non-traditional programs to empower youth

Even in 2016, the term “mining” brings to mind images of dust-covered coal miners with pickaxes. South Africa is rolling out a youth empowerment program in urban mining through its state-run mining and metallurgical entity, Mintek, that couldn’t be more different. Contrary to what its name suggests, urban mining does not involve any actual resource extraction. Urban mining is the slightly more glamorous and modern-day version of dumpster diving: this field re-appropriates pre-existing materials, such as recycled glass, into commercially viable semi-luxury goods.

At a recent South African conference, the Youth Mining Summit, government officials spoke about their desire to empower South Africa’s youth to look into the mining sector for jobs. The Youth Mining Summit occurred in mid-June, over the 40th anniversary of the infamous SOWETO Uprisings. To commemorate the historic youth uprising, South Africa dedicates each June to focus on youth development issues. This year, Deputy Director General of Mineral Regulation Joel Raphaela discussed the government’s efforts to encourage more young South Africans to go into the mining industry: “We continue to reach the youth through the department Learner Week Programs, where we create mining awareness by organizing mine visits around the country.” This sort of exposure, Raphaela hopes, will show young people from diverse backgrounds and educational qualifications that there are numerous job opportunities within the mining sector.

One Man’s Waste

Mintek Small Scale Mining & Beneficiation Program

Mintek Small Scale Mining & Beneficiation Program

An important component of this effort is the training and mentorship opportunities available to interested youth. Since 1934, Mintek has been South Africa’s leading mining and metallurgical research and development center. As South Africa begins to put a more visible emphasis upon black empowerment, Mintek is an integral part of a youth development program that looks to train young people in marketable metallurgy. Mintek emphasizes its newly branded urban mining program as the future for sustainable employment. A simple example of urban mining is the creation of glass beads from recycled bottles: Mintek provides training in all of the skills needed to turn glass bottles into beautiful jewelry with everything from different crushing techniques to the variety of ways to melt and re-purpose crushed glass. According to Mintek, “Urban mining presents numerous opportunities for young people to use urban waste to manufacture saleable products, without necessarily having a higher education qualification. The glass bead manufacturing process is a great example of this.”

Last year, Mintek provided 148 youth with practical training in partnership with the Mining Qualifications Authority (MQA), and the Department of Science and Technology. Thirty-six of these graduates have been placed in foundries across the country, where they continue to grow their theoretical and practical skill sets in the metallurgical field. Unemployed graduates from previously disadvantaged groups have the opportunity to receive further training in the field of occupational hygiene, surveying, mining, electrical and mechanical engineering. Not only is Mintek providing hands-on training, but it is working with local governments to set up training centers in the Northern Cape. Two such centers were established in Upington and Prieska, where students can get practical training for making jewelry from locally-mined semi-precious stones.

A Diamond in the Rough

South Africa’s mining stretches beyond metallurgy and re-appropriation of urban waste to the most glittering of all gems: diamonds. After the 2015 launch of the South African Young Diamond Beneficiators Guild, a collective of predominantly black-owned small and emerging diamond manufacturers, young adults were accepted into training programs to learn the cutting and polishing techniques employed to refine rough diamonds. 25 of the young trainees were accepted into a two-year training program based in Italy, but will also travel to Switzerland to learn about the technical art of watchmaking.

A watchmaking teaching curriculum is currently being developed in South Africa. Once it is completed and through the approval process, South Africa would be able to teach the special skill set for the first time in its history.

Digging Deep to Lift Up Youth

All of these initiatives have the same goal: to empower youth with marketable skills that will not only provide them with sustainable income, but will allow them to participate in the global economy. Training programs are blossoming in everything from urban mining to watchmaking, and it seems that this is only the beginning. As Raphaela said, the “economic empowerment of young people is not an option, but a national imperative.”

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Engie and Thales will design the Dakar Regional Express railway line

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

rail track

The French companies Engie and Thales have won the design contract for Senegal’s new Dakar Regional Express Railway project.

The French companies Engie and Thales were recently announced as the winners of the lucrative design contract for Senegal’s vaunted new Dakar Regional Express railway line. The two companies are well established within Africa, but had to fight off stiff competition from several other bids in order to secure the contract with Senegal’s government. The announcement of their successful bids was made on July 27th by APIX, the Senegalese Agency for Investment Promotion and Public works, and the lucrative deal is valued at around $251 million.

The route ahead

The Dakar Regional Express Railway project was first announced in 2014, as part of the Senegalese government’s “Emerging Senegal” program, which aims to boost the nation’s economic and social development. The railway line will connect Senegal’s capital city, Dakar, with the new international airport, Blaise Diagne, and the city of Diamniadio.

The first part of the project will see the construction of the longest section of 36 km between Dakar and Diamniadio. After this, an additional 15 km of line will be built between Diamniadio and the new Blaise Diagne international airport.

The total 55 km distance, between Dakar and the airport, will be covered in around 45 minutes, with 14 stations en-route, and the trains will reach speeds of 160 km/h. The service is also intended to have 3 lines, with 2 for standard passenger trains, and the other for freight transport.

Construction is expected to begin in the final quarter of this year, and to take 26 months, meaning that trains should begin service at the end of 2018. By the end of 2019, the government expects the service to have carried around 115,000 passengers.

The construction work and civil engineering will be carried out by a French, Senegalese and Turkish consortium. The companies making up the consortium are the local Senegalese group CSE, France’s Eiffage Company, and Turkey’s Yapi Merkezi. However, the design and integration of the electrics and communications, alongside overall project management is what has fallen to Engie and Thales.

Engie and Thales the winning duo

Engie and Thales both have a long-standing involvement in African projects. Engie, formerly known as GDF Suez, is a renowned company within the field of electrical power, and has designed and developed renewable energy projects in Africa for 50 years. Engie’s expertise in electrical energy and energy efficiency is evidently pertinent to the Dakar rail project, and its existing presence in Africa will have also aided its bid. The company employs 154,950 people, and had a turnover of over $77.8 billion in 2015.

Likewise, Thales is a company with a recognized body of work within Africa, having worked across multiple fields around the continent for 30 years. However, its know-how, in rail signaling and telecommunications in land transport, is clearly of most significance to the decision to grant the group the dual contract. Thales is already involved in the rail industry in 5 African nations, and employs 62,000 people across 56 countries, with a turnover of $15.6 billion last year.

While the exact split of the $251 million contract between the 2 French corporations is not known, they released a joint statement saying, “Engie and Thales have been selected…for the design and construction of infrastructures and systems of the new Dakar Regional Express Train, for a contract in the amount of 225 million euros”

The teams’ responsibilities

Engie and Thales will now be responsible for multiple aspects of the Dakar Regional Express’ design and development. Aside from designing the systems and providing management, Engie and Thales are also responsible for integrating all aspects of the rail service.

One of the major areas in which their combined expertise will be utilized is the management of the fiber-optic communications network that will connect the trains to the command center. Train signaling, power supply, and providing technical supervision for all train station equipment are also core responsibilities that the French companies have.

Engie and Thales won the contract in the face of strong bids from various competitors, including two Chinese companies, China Railway Construction Company and China Road & Bridge Corporation.

Senegal’s government will be hoping that the combined proficiency of the French duo will ensure that a major part of their bold “Emerging Senegal” project will soon be a reality.

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