MENU

Featured
Category

“Spinach king” turns healthy eating into a business

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

Spinach King

A young South African entrepreneur sources local gardens to produce popular, nutritious baked goods.

A young South African entrepreneur has built a business in healthy baked goods that has earned him the nickname of “Spinach King.”

Lufefe Nomjana, 28, produces spinach-based products including bread, muffins and sandwiches for retail outlets around Cape Town. Nomjana also offers delivery service via bicycle to local offices and consumers who want healthy meals.

He launched the business in 2012 with only 40 Rand (less than $3) in his pocket. Fast forward to 2016 and he operates Espinaca Innovations, which includes a bakery in a renovated shipping container, a café and bakery, and plans for a large-scale bread factory to open in August.

Recognized by the South Africa Breweries Social Innovation Awards in 2014, Nomjana used about $6,000 in prize money to expand his business.

A lesson in entrepreneurship

But the young businessman insists that entrepreneurial thinking has been more important than money on his path to success.

“You’ve got brains and intellectual capital. That will actually open many doors for you,” he said.

Nomjana was just out of school and in his early 20s when he embarked on a business career. He was selling clothes door-to-door but realized he needed to learn more about business and finance if he was going to start a successful business.

“Although I had the ambition and discipline to be self-employed, things weren’t going well,” he said. “I didn’t know enough about stock control and cash flow.”

A five-month course in entrepreneurship taught him that he could build a business while helping people in his community, providing them with access to healthy food.

Spinach king in action

Spinach readily available

That is when he started thinking about spinach, which was growing in abundance at a community garden where he volunteered in Cape Town’s Khayelitsha Township, where he lives. “Spinach grows easily almost everywhere. It’s one of the most nutrient-rich vegetables with many healthy side effects.”

He looked up recipes on the internet, persuaded a neighbor to let him use her oven and his healthy, low-carb spinach bread was born.

He was unable to find investors for his idea. But he went ahead, using the neighbor’s oven at nighttime in exchange for paying for electricity and giving her a supply of bread.

Nomjana baked four loaves a night, then eight and then 16, the most he could produce in his neighbor’s oven.

Building a brand

Profits were small. But while he wasn’t making a lot of money at first, he was building a reputation. Soon, he found he could not keep up with demand.

In the beginning, “it was not about profits. I was building a brand, and educating people” about good nutrition, he said.

A breakthrough came in 2013, when he asked Spar, a local retail chain, if he could use their ovens in exchange for supplying their stores with his baked goods. His production increased dramatically to 200 loaves a day. In addition to Spar, he could supply oven-baked spinach products to local offices.

He soon hired a small sales staff and – eager to speed up deliveries – launched a crowdsourcing campaign to raise money for five delivery bicycles.

By the end of 2013, Nomjana had saved nearly $3,000. With that money and his prize from the SAB Social Innovation competition, he bought his own baking equipment and renovated a shipping container as a bakery.

In 2016, Nomjana produces about 500 loaves daily of his popular low-carbohydrate “banting bread” along with other baked goods. He buys organic spinach from local farmers.

Plans to increase production four-fold

He believes he can increase production to 2,000 loaves once he opens a factory later this summer in nearby Stellenbosch.

At his new café, which also contains a bakery, customers can buy healthy, affordable meals such as gluten-free spinach bread and fresh butternut soup for about $1.

His experience has prompted Nomjana to advise other entrepreneurs to first identify resources they have – in his case locally grown spinach and a neighbor with an oven – before looking for investment.

It may make more sense to just get started with the resources available, the way he did.

“The first capital that you need, more than money, is intellectual capital.”

Read more

Tanzanian entrepreneur aims to light up his country with green energy

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

sunsweet solar

George Mtemahanji’s Tanzanian startup, Sunsweet Solar, looks to bring clean energy to its nation’s poorest people.

For 70% of Tanzanians, the only way to light up their homes after sundown is with a small kerosene-powered lamp. This shortage of electricity does not only affect people in their homes, but businesses and schools too. It was something that 22 year old George Mtemahanji understood well, as he had grown up in the small, rural town of Ifakara where kerosene was the only option for light after dusk.

Mtemahanji left his home in 2003 at only 9 years of age, as his mother took him to Italy in search of new opportunities. However, 8 years later he returned home, and upon seeing that the same energy problems still afflicted his hometown, he decided to find a solution.

The spark that can change lives

Mtemahanji was not only struck by how little things had changed in his place of birth, but also by how significant a lack of electricity was to the prospects for development. Mtemahanji explained, “Electricity supply is really important for the development of a country. Without electricity, New York or Johannesburg would just be villages – they’d be like Ifakara.”

At the time of his return, Mtemahanji was studying to be a technician in renewable energy, and the power situation within his home town immediately struck him as a problem that his training could help to solve. Mtemahanji said, “We have a lot of sun and it was really very strange that no one was doing something with solar energy.” The inspiration for Sunsweet Solar had been created, so Mtemahanji returned to Italy to discuss his ideas with a fellow student, Manuel Rolando.

By 2013, extensive research into solar energy in Tanzania had revealed that many locals simply did not trust solar energy as a reliable source due to poor quality installations that had proved inconsistent. However, Mtemahanji was confident that Rolando and he were capable of designing efficient, cost effective solar powered systems. The duo began approaching companies for funding, and found a Swiss company planning to build a photovoltaic plant (solar power plant) right in Mtemhanji’s hometown of Ifakara. The two young entrepreneurs offered to design and construct all the technical components of the plant for free, and their pitch was accepted.

Sunsweet Solar rises in the east

Mtemahanji’s voluntary work on the Swiss photovoltaic plant was a huge success; the plant is the largest of its kind in the Kilombero district, and it powers 200 lights, dozens of computers and can store 3 days’ worth of power. Moreover, it now proved to any other investor that Mtemahanji and Rolando had the requisite skills to complete their grand plans.

Mtemahanji was committed to ensuring that his home in East Africa would begin to finally see a rise in solar power, which would drive forward development, and would save money for the poorest people of his country. Sunsweet Solar was registered within days of the completed project in Ifakara, and they quickly established a partnership with a German company, Fosera, to provide household kits to rural districts.

Sunsweet Solar aims to not only build energy solutions for much of Tanzania, but to do so in a way that is cheaper than the current alternative of using kerosene lamps.

Mtemahanji discussed the 70% of the country that have no reliable electricity, remarking, “We can give them electricity for 25 years for only $79… It costs less than $0.30 per month; today a liter of kerosene costs $1.10. That means the people in rural areas spent 73% more with kerosene per month than with our solar system.”

Access to electricity can bring greater productivity in the workplace, and the ability to improve education. Since Sunsweet Solar installed solar power to Benignis Girls Secondary School, the school has seen exam performances increase from 18% to 83% in just 1 year. Something as simple as being able to study during the evening is a part of life that many people will have never had to consider.

In 2015, George Mtemahanji won the Anzisha Price, an award for young African entrepreneurs, and despite his success he is still only 22 years of age. With plans to roll out a loan system, so that customers can buy installations in installments, the future for both his company and Tanzania looks increasingly bright.

Read more

Pokemon Go fever seizes Africa

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

Pokemon Go South Africa

Pokémon Go has only been out for a month, but its popularity has led to global game-play including in many African countries.

The world has caught Pokémon fever and Africa has not been immune. Even though there is no official launch date for Pokémon Go anywhere in the continent, it is easily available to download from the app stores for those savvy and desperate enough to play ahead of its release. In the month since its launch it reportedly has more than 75 million players worldwide, overtaking Twitter for global users.

Pokémon Go is a 2016 release from Niantic, in collaboration with Nintendo who released the original game 20 years ago. Unlike the archetype which was played in a world contained inside a handheld Gameboy, Pokémon Go is set in an augmented reality universe. Players roam their real world which is overlaid with computer-generated imagery, attempting to catch creatures and battle them in simulated fight scenes. This is the first release of the game and it is predicted to launch versions where players can battle other players instead of AI characters.

Pokémon Go captures attention throughout the African continent

The game has been particularly popular in South Africa, with regular ‘meet-ups’ throughout the country, including in Cape Town and Johannesburg. Recent meet-ups in Port Elizabeth have even been coupled with aid drives for animal charities, capitalizing on the success of the app and need for players to gather in prime locations.

Similarly in Nigeria, there has been a veritable craze for Pokémon catching all over the country. Not long ago, an online craze would have been unthinkable in a city like Lagos, famous for its patchy mobile coverage. Recent improvements have changed matters however, with providers promising 3G coverage for 90% of the country and fiber-optic rollouts imminent.

Ghana and Kenya paint a similar picture with players roaming the streets looking for creatures and convening in “hotspots” in all major towns. Unlike in the western world, where Pokémon Go is widespread, in Africa it’s only the affluent and developed areas that seem to be picking up on the craze. This is due to the higher than average ownership of smartphones, coupled with access to mobile data services, along with generally higher socioeconomic circumstances.

Pokemon Go gathering in Cape Town

Pokemon Go gathering in Cape Town

Pokémon Go’s success drives sales for other businesses

While Nintendo has seen a rise in $7.5 billion to its market value, Pokémon Go has also been profitable for local businesses, utilizing their location or certain elements of the game to attract customers and drive sales. Many bars and restaurants, such as Beerhouse and Steers Fast Food in South Africa are offering unique promotions connected to the game, and using social media to promote Pokémon locations near their business. Some venues have even been placing Pokémon “lures” to promote their happy hours and organizing walks and Pokémon Go-themed events. Many South African “meet-ups” have also combined Pokémon catching with charitable drives, such as for local animal charities in the area.

With increased real world interaction and a new global interface, the drawbacks are obviously related to player security. According to insurance group Dialdirect, users in South Africa need to be cautious when playing, as they could become easy targets for crime. Many areas in Africa are dangerous for solo pedestrians to be walking around at night, or with their smart phones clearly on display. Crime that has been seen in other countries could be amplified in some of Africa’s more unsafe regions, particularly if users enter into those areas unknowingly and without weighing up necessary risk factors. “We usually recommend that consumers conceal their smart phones and that they don’t unnecessarily brandish them about” said Dialdirect spokesperson, Bianca de Beer.

Playing can be a real life danger to users

Users risk their online security as well as their real-life security by irresponsibly playing the game. While Pokémon Go is not officially available in Africa, illegitimate users risk their phone’s security by accessing the app via third party channels, leaving their device open to hackers. According to a statement by IT security company Sophos‚ there is already one “malware” mirror version of the Pokémon Go app out there and being downloaded. Users are urged to play with caution and not put themselves into risky situations, in real life or otherwise.

As the technology wave surges across Africa, connecting ever more people to internet and data services, Pokémon Go and its successors are likely to usher in a new generation of avid gaming enthusiasts. With such popularity in Africa even before its official release, Pokémon Go seems to be here to stay.

Read more

Zimbabwe: Abuzz with beekeeping

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

zimbabwe bees

More than 50,000 bee farms operate in the southern African nation, providing a cash crop and encouraging forest protection.

Beekeeping represents a win-win for Zimbabwe: It is a cash crop for thousands of struggling farmers and it encourages preservation of the nation’s depleted forestland.

The Beekeepers Association of Zimbabwe estimates there are more than 50,000 bee farms flourishing in the southern African country and the number is growing. Beekeeping has become profitable thanks to high consumer demand for honey as well as beeswax. Bees also pollinate crops, helping increase food production.

Beekeeping serves another important purpose: giving farmers a reason to preserve their woodlands. In Zimbabwe, forests have been ravaged by tobacco farmers who use wood to cure their crops and by high consumer demand for firewood fueled by the country’s frequent power outages.

Tobacco farmers cut down up to one fifth of Zimbabwe’s 800,000 acres of natural forest each year, according to the government forestry commission.

Programs provide training

Zimbabwe’s Department of Agricultural and Extension Services provides training for would-be beekeepers as do a variety of nonprofit organizations, including the European Union’s Forest Forces project and the Ruzivo Trust.

According to the Trust, beekeeping can add stability to farms that are highly dependent on abundant rainfall, which is no longer a given as climate change brings drought to the region. The Trust set up demonstration projects and used a “learning by doing” approach to train 100 families in Goromonzi. Most of the families combine beekeeping with growing crops and raising cattle.

One new beekeeper is Divas Matinyadze, who maintains about four dozen hives in a dense patch of forest near Mpudzi.

Matinyadze, who was trained by the government, was a successful farmer of cotton and maize before he switched to bees in 2014. He said he makes up to $60 per hive during each of two yearly honey harvests, enough to buy food for his family.

Drought threatens production

Isaac Mamboza, a beekeeper in the Chipinge district, said he was part of a group of 25 farmers who started a local beekeeping project with hives in the trees near a local dam.

“Beekeeping can help us protect our forests,” Mamboza said.

However, the burgeoning beekeeping industry faces threats from drought and from another insect that kills bees.

The current drought in the region has cut honey production.

As weather becomes more erratic with climate change, harvest from rain-fed agriculture is increasingly vulnerable.

This year, the drought has left more than 4.5 million Zimbabweans without enough to eat, according to the government. The country estimates it needs at least $1.6 billion to feed the country.

Matinyadze said he delayed his spring harvest because there was so little pollen, adding that his crops have sustained much more damage from the drought than his bee hives have.

“Pirate bee” strikes

Another major emerging threat is the “pirate bee,” an insect that invades the entrances of bee hives and kills the bees. This forces the bees to hibernate inside their hives, meaning they are not outside collecting nectar to produce honey.

The pirate bee or cuckoo bee, along with water shortages, have forced beekeepers to cut back from three to two harvests per year, according to Nyovani Ndlovu, a beekeeper in Lupane.

Several other insects, among them beetles and wasps, also hurt yields during the production of honey by infesting hives and forcing bees out.

Cliff Maunze, who heads a Forest Forces team, said beekeepers are upgrading their hives to use a sticky substance to trap the pirate bees and other predatory insects when they land on the hives. Maunze said the project also plans to plant gum trees to increase the density of forests where the bees forage.

Despite the challenges, experts see beekeeping as an important game changer for agriculture in many parts of the continent.

“Honey production presents enormous potential for achieving food security in Africa,” the Ruzivo Trust said.

Read more

Bettering Benin: Improving the Tourism Sector

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

Pendjari National Park – Benin

Benin received a $50 million International Development Association credit to invest in its tourism sector that will, hopefully, add an additional 30,000 jobs.

In March 2016, The World Bank approved a $50 million International Development Association (IDA) credit to Benin to invest in its tourism sector. The IDA provides grants and zero-interest loans, via the World Bank, to the world’s poorest countries to increase business opportunities and, ultimately, reduce poverty and improve standards of living by improving various industries. The tourism industry is Benin’s second largest source of foreign exchange currencies and third largest employer behind agriculture and commerce. The investment is intended to reduce the vulnerability of Benin’s economy, given its high dependency on informal trade with Nigeria, and its reliance upon the cotton sector.

The five year project, Benin Cross Border Tourism and Competitiveness Project (CBTCP), is a part of longer-term 2013-2021 tourism plan. The overarching aims of the World Bank’s funding are to increase and improve the current touristic sites including the physical infrastructure, such as accommodation; to improve the skills of tourist-industry personnel; to effectively promote tourism through branding and targeted marketing schemes; and to improve the management of existing sites by reinforcing leadership frameworks. This project is slowly moving from conception to implementation: in mid-July, the government approved a decree that will establish the creation of the National Agency of Heritage and Tourism. The aim of this project, and its corresponding agency, is twofold. By increasing cross-border tourism and private sector investment, the World Bank hopes to move towards its goals of poverty reduction while boosting “shared prosperity.”

Benin capitalizes upon the ecotourism industry

Visitors to a cultural festival in Benin

Visitors to a cultural festival in Benin

Investment will occur in the country’s key tourist destinations, mainly Abomey-Calavi, Cotonou and Ouidah, and hopes to help more than 1,000 existing tourist firms. More than 20% of these firms are led by female entrepreneurs, a point which both the World Bank and government of Benin are emphasizing as part of a gender inclusive initiative. It is hoped that, by investing in these firms, more jobs will become available for both unemployed Beninese people, and for citizens currently working in less secure industries, such as the cotton industry.

Benin is poised to capitalize upon the ecotourism industry if it can appropriately monetize its natural resources into well-kept tourist destinations. In order to do so, however, Benin will have to make a concerted effort to appropriately allocate World Bank funds. The first step is to clean up the existing potential tourist attractions: Benin’s coastline has been damaged from decades of open defecation, lack of waste removal systems and failure of sanitation infrastructure to remove both human and manufactured detritus. It seems that, hypothetically, the newly created National Agency of Heritage and Tourism may be able create jobs for people both working directly in the tourism sector, and for people working on clean-up projects.

30,000 additional jobs

In fact, according to the World Bank Country Director for Benin, Burkina Faso, Cote d’Ivoire, Guinea and Togo, “if efforts are made to meet [Benin’s] potential, tourism’s direct contribution to the country’s GDP will be increased by up to 30%, and could generate an estimated 30,000 additional jobs.” Thus far, the tourism industry has failed to develop as rapidly as that of other West African nations, due in part to the inability of private tourism operators to apply for loans. As capital has become less concentrated with the proliferation of tourism providers, individual businesses have been unable to meet the minimum requirements in order to receive loans from local banks, let alone international financial institutions.

The CBTCP will encourage private commercial banks to extend loans to businesses that fall in the “micro, small and medium sized” enterprise (MSME) category. The CBTCP will use World Bank funding to mitigate creditor risks through “first-loss cover,” thereby shouldering some of the risk that banks have been unwilling to absorb.

The National Agency of Tourism and Heritage directly looked after by Patrice Talon

The biggest fear of both Beninese citizens and outside observers is that the funds will be inappropriately allocated without direct oversight: the National Agency of Tourism and Heritage is not, as one would expect, overseen by the Ministry of Tourism, but is directly looked after by the President, Patrice Talon. The government has not issued an explanation of why this is, but hopefully it will not cause any confusion in the allotment of resources.

Read more

Global demand could boost lithium mining in Zimbabwe

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

lithium mining

Companies explore deposits, seek investment as worldwide demand grows for “white petroleum” to power rechargeable batteries.

As global demand for lithium skyrockets, Zimbabwe may increase production of the so-called “white petroleum’’ that powers rechargeable devices including telephones and automobiles.

Tesla’s plans to mass-produce its Model 3 battery-powered car have stoked worldwide demand. Tesla estimated its production target for electric cars alone – 500,000 vehicles by 2020 – could require as much lithium as is already currently being produced.

Zimbabwe, the fifth largest producer of lithium on the planet, could increase its share of a growing market.

Premier African Minerals has begun looking for partners to expand its Lithium and Tantalum mining operations at its Zulu Project in Zimbabwe.

Investors sought

George Roach, Premier’s chief executive officer, said preliminary talks were aimed at identifying parties who might be interested in supporting development.

Premier’s flagship mine is the RHA Tungsten Mine in Zimbabwe and the company has mineral projects across Africa.

Meanwhile, another company, Prospect Resources Ltd., has secured diamond-drilling services for its recently acquired Arcadia Lithium Project in Zimbabwe. The project has set a target of extracting up to 18 million tons of 3-5 percent lithium.

The company said it has raised $2 million of $16 million needed to fast-track exploration.

During intermittent production between 1954 and 1972, the Arcadia mine produced more than 15,000 tons of mixed ore that contained lithium. The mining operation, just 25 miles northeast of Harare, also produces eucryptite, petalite and feldspar.

Australia leads production

Zimbabwe is the world’s fifth largest producer of lithium after Australia, Chile, Argentina and China. Other major producers are Brazil, Portugal and the United States.

Zimbabwe produced 900 metric tons of lithium in 2015. By comparison, top-producer Australia accounted for 13,400 metric tons, Chile for 12,900 metric tons, Argentina for 3,800 metric tons and China for 2,200 metric tons.

The consulting firm Stormcrow Capital projects global demand will outstrip supply by 2023.

Such projections are driving investor interest in lithium, which was the only commodity to increase in price last year. The cost has skyrocketed to $6,400 per ton globally and reportedly to as much as $13,000 on some orders in China.

Zimbabwean mining struggles

Increased lithium production could be a boon for Zimbabwe’s struggling mining sector.

The Chamber of Mines of Zimbabwe told a recent conference of mining executives that the sector is fragile because of low mineral prices on global markets.

The depressed prices, combined with liquidity challenges as well as power and capital shortages, have resulted in many mining companies struggling to break even.

The sector produces 10 percent of the nation’s gross domestic product and 50 percent of its foreign direct investment and export earnings.

Toindepi Muganyi, president of the Chamber of Mines, told delegates at the Mining, Engineering and Transport conference that the sector had contracted by more than 2 percent for the second year in a row in 2015. Total mineral revenue dropped from $1.9 billion in 2014 to $1.86 billion 2015, he said.

Recovery forecast

In addition to interest in lithium, prices for gold, platinum and nickel were on the rise, Muganyi said, predicting a recovery this year.

The Zimbabwean government in 2014 announced plans to build a lithium processing facility, which could lead the way to manufacturing batteries in the country.

Valentine Vera, metallurgy director in Zimbabwe’s Ministry of Mines and Mining Development said the metal had the potential to drive the nation’s economic growth as global demand grew. However, Vera said the country would need to draw significant investment in order to increase production.

Zimbabwe is a mineral-rich nation with resources that include platinum, gold, nickel, copper, zinc, lead, limestone and phosphates. The country has the second-largest deposits of platinum in the world.

Exploration for lithium is also under way in Mali. Birimiam Limited, a multi-commodity exploration company has significant interests in lithium deposits as well as gold deposits in the West African nation.

Niger, Namibia, Senegal and Ivory Coast also have lithium deposits.

Read more

Is time the only thing that Buhari needs to rebuild Nigeria?

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

Muhammadu Buhari

Nigeria’s president inherited a multitude of problems from the previous administration. Does he have what it takes to overcome them?

Nigeria’s President, former military ruler Muhammadu Buhari calls for time and space to achieve the objectives he laid out upon his election last year.

Buhari has openly declared his intentions for Nigeria’s future. He wants to build a country that future generations will be proud to inherit. This is rare in a continent where leaders frequently think in the short term – often selling off natural resources for instant personal gain, rather than investing in long-term solutions for Africa’s economic problems. Buhari’s Nigeria, he claims, is “for its children.” Whether these promises will materialize will depend on his ability to identify and build upon his past mistakes, and those of his predecessor.

Muhammadu Buhari comes from a large family; he was his father’s 23rd child, born in 1942 in Daura, Katsina state. He ruled Nigeria for 20 months in 1985 and has since lost three general elections to the People’s Democratic Party, which has dominated the political landscape in Nigeria since the end of military rule in 1999.

Winds of Change for Nigeria

Buhari’s perseverance has paid off and after waning public support for Goodluck Jonathan, he became the first opposition candidate to de-throne an incumbent leader in Nigeria. The issues inherited from previous governments will not be easy to overcome however, and continuing President Jonathan’s battle to contain the Islamic militants in the north will be Buhari’s biggest challenge.

Originally from Nigeria’s Islamic North, Buhari has alienated many from the mainly Christian south of the country by giving his support to Sharia law. Subsequently, he has had to strongly deny having a radical Islamist agenda. Deep-seated suspicion regarding his religious background and suggested support of Boko Haram has been quelled by a recent failed assassination attempt that left 82 dead, apparently orchestrated by Boko Haram forces.

Boko Haram, unemployment and rampant corruption to fight

Boko Haram

Boko Haram

He was previously mistrusted by the voting populace in the south, but President Jonathan’s failure to overcome the jihadi militia left Buhari with an opportunity to exploit. The 276 Chibok girls missing since 2014 have piled local and international pressure upon Nigeria’s administration. The Boko Haram crisis has left more than 20,000 dead and over 2 million displaced since 2009. Since his inauguration there has been a lot of posturing and even claims to have “defeated” the militant group, but terror attacks, kidnappings and suicide bombings are still rife, particularly in the North of the country. With an agenda to meet, but what appears to be little structural planning, it will take more than time or crude military suppression to overcome “the most deadly terrorist group in the world.”

Boko Haram is unfortunately not Nigeria’s only crisis. Buhari will also have to tackle large scale unemployment and rampant corruption. Buhari’s Deputy Prime Minster estimated that 110 million of Nigeria’s 170 million inhabitants are living in extreme poverty. He also noted that the majority of the wealth is going into the pockets of the nation’s privileged few. For Africa’s most populous nation, these economic issues add stress to the fractures caused by religious extremism and recent spates of violence. Making progress with these issues may also be the key to undermining the militant support among the population, with rampant unemployment being a key factor in their recruitment campaigns.

Buhari: an incorruptible and converted democrat for Nigeria

His biggest election promise is to tackle the fuel shortages that have blighted the population and stagnated the economy over the last several years. His plans are to increase production and improve distribution, while renegotiating terms with the rebel forces. In 2009 President Jonathan’s government agreed to pay militants $400 per month to stop their attacks on the fuel supplies. Once the money inevitably dried up, the attacks recommenced and the supply problems are now worse than ever. On paper, Buhari seems to be well placed to handle this crisis: he was the Minister for Petroleum and Natural Resources in 1976 and during his tenure heavily invested in pipelines and created 21 new petroleum storage units across the country. But his ability to negotiate with the Nigeria Delta Avengers is in contention; his rigidity and stubbornness are well known within the administration and beyond. Striking a balance between tackling the underlying issues, negotiations and strategic military moves will be key to eradicating the extremist violence that have dominated the political horizon in Nigeria.

Buhari claims to be a “changed man” and a “converted democrat,” taking full responsibility for all that happened during his short military rule in the mid-80s, and the part he played in the military coup that overthrew the democratically elected leader, President Shehu Shegari. If Buhari’s “incorruptible” and rare reputation for honesty holds true, he may be able to usher in a wave of change, washing away the culture of injustice and corruption, both in businesses and in government. He has appealed for time and patience, but will this be enough, or will the multitude of problems he faces just be too much to overcome?

Read more

Tech Titans: The Battle for Africa

31 July 2016 Comments (0) Africa, Business, Featured

Microsoft 4afrika initiative

The tech giants are busy building in Africa as the continent represents a golden opportunity to reach new customers while transforming African society.

We all know the names Google, Facebook, Microsoft, and IBM. These are the tech titans who have forged the modern world we inhabit and hardly entities that the general public associates with Africa. However, foresight and innovation enabled these behemoths to propel the developed world to a new future. Now, the tech giants have foreseen that Africa’s future is one of abundant potential.

The reasons behind this trend are actually rather simple. Africa possesses 7 of the world’s 10 fastest growing economies. As a whole, Africa is the fastest growing region on earth. For tech companies this has created two general fronts on which to engage the continent. Firstly, this growth has led to the emergence of the African middle class. Tech companies suddenly have a new market in which consumers are hungry for their products. Secondly, this new market has enormous potential to grow. With limited tech infrastructure, such as internet access and mobile networks, the adoption of new technologies is still very much in its infancy across huge parts of the region. If top companies generate the conditions for mass tech usage, they stand to gain an enormous new customer base while improving the lives of millions; a veritable win-win situation.

Africa, a new frontier for Google, Facebook, Microsoft, IBM

Microsoft was arguably the first global tech company to take a major active interest in Africa. Three years ago, the company started its 4Afrika initiative. The $75m program was designed to train thousands of Africans either for their own businesses or for the company’s 22 African offices. Simultaneously the program focused on getting affordable smart devices into the hands of millions of new customers. Amrote Abdella, the regional director of the 4Afrika project said, “In order to drive the knowledge economy, we need to drive connectivity so Africans can create and access content.”

As a result the company is experiencing strong growth in the region. However, rather than resting on their laurels, Abdella went on to explain why Microsoft intends to build on its successes: “Three years down the road one of the things that we have learnt is that the need and the demand on Africa is about doubling down on investments we are making around connectivity and smart services.”

Digify, Project Loon, Link… Ambitious plans for Africa

Project Loon

Project Loon

The connectivity race is on in earnest. Google first tested the African waters back in 2012, with an SMS based version of its Gmail service. Today, their efforts have intensified while becoming more imaginative. Google intends to utilize its cheekily named “Project Loon” in the region. Loon is a network of communications balloons positioned high in the stratosphere that can be strategically maneuvered to provide connectivity in remote areas where coverage is lacking. Data is then passed through the balloon network before being transferred down to the global internet.

Google has two other notable initiatives in the region, Link and Digify. Link has seen the installation of metro fiber optic Wi-Fi networks across Uganda and Kampala, with a further roll-out underway in Ghana. Digify is a major commitment to train 1 million Africans in digital skills. Google spokeswoman Michelle Atagana explained the strategy behind the project: “The idea is to improve people’s skills so that they can increase their chances of becoming employed or start their own businesses.”

Not to be bested, Facebook is focused on waging ambitious campaigns in the booming new market. In 2015, the social media giant opened its first African office in Johannesburg. Additionally, Facebook CEO Mark Zuckerberg highlighted plans to provide satellite internet to rural areas of sub-Saharan Africa. He explained why he felt the move was key by saying, “To connect people living in remote regions, traditional connectivity infrastructure is often difficult and inefficient, so we need to invent new technologies.”

Investing to impact

IBM has also been incredibly busy in Africa in recent years. The company has opened new research centers, invested in local businesses, funded a $60m computer skills program, and created new initiatives designed to drive the usage of big data, analytics and cloud computing. Dr. Kamal Bhattacharya, the director of IBM Research explained why the company is taking such a significant interest: “As scientists we believe that science and technology is an enabler to express your needs, it is an enabler to shape your own future. And this is why IBM is making this very significant investment into Africa.”

Where the tech giants go, immense progress and social transformation follows. Economically, Africa will benefit immeasurably as the continent gains skills and business is increasingly done in today’s tech space. Socially, Africans will be able to access a global treasure trove of information, use life changing services and communicate in a way never before possible.

Read more

BMW looks to capitalize on the emerging African market

30 July 2016 Comments (0) Africa, Business, Featured

BMW Rosslyn plant, South Africa

How BMW is planning to become the leading luxury car brand in sub-Saharan Africa.

BMW has recently announced big plans for a major expansion into the African market. The German automotive powerhouse has long been considering a major push across the continent, and hopes its new strategy will see it become a household name in years to come.

South Africa is the stage from which BMW hopes to address its new audience of African consumers. The company has actually operated inside South Africa longer than it has in any other country outside of Germany. BMW acquired its historic Rosslyn plant from South African manufacturer Praetor Monteerders back in 1975. Since then, BMW has firmly established its prestigious brand inside South Africa, but seen little success across the rest of the continent, largely due to economic factors. For the most part, the Rosslyn plant has been used to service export-markets in Asia and the United States.

Rosslyn revived thanks to a major face-lift

The Rosslyn plant, famed for its outstanding quality, even by BMW standards, is about to receive a major face-lift. Production rates at Rosslyn have for a number of years been limited by one curious factor: room. Space has been at a premium for some time, thanks to the increasing technological demands of making modern cars. The firm has been cramming new technology into the same old space for over four decades, forcing it to compromise while restraining productivity. However, the shackles are about to be ripped off.

In late 2015 BMW finally acquired a long sought after plot of land adjacent from the factory. They simultaneously announced a 6 billion rand investment in the company’s South Africa division. A large part of this investment will be used to build a state of the art body-shop for producing the new BMW X3, which is critical to BMW’s forward strategy. The new body-shop will be one and a half times the size of the existing facility. This should make the Rosslyn facility twice as productive, providing BMW with the resources with which to wage its Africa expansion.

Strategic moves for BMW

BMW has realized it needs a “boots on the ground” approach to lead the charge across the continent. As a result, the company has granted full autonomy to its South Africa division, while using the rest of the 6 billion rand investment to train new staff and improve supplier support services. South Africa CEO Tim Abbott explained why BMW is so invested in the expansion: “The real growth for us in the future will come from Africa.”

While BMW is an international powerhouse in developed countries, those markets are saturated. Not just in the automotive sector, but in industries worldwide, shrewd organizations are realizing that Africa is the final frontier, the last chance to grow their brand in rapidly emerging markets. BMW does not intend to be left behind. The firm intends to start its courtship of Africa by targeting markets in Nigeria, Kenya, Ivory Coast, Togo, Ghana, Angola and Senegal.

BMW busy paving the way for a successful launch

BMW X3

BMW X3

Pivotal to their strategy is the upcoming BMW X3. The X3 is a sturdy and powerful four wheel drive SUV, which also boasts the style and finish synonymous with BMW. The German giant believes that these qualities will make the car highly attractive in the African market. Tim Abbott said that “with the X3, we believe we have a vehicle that resonates with these countries.”

Whilst the X3 isn’t going to be hitting African streets until 2019, Tim Abbott explained that BMW is busy paving the way for a successful launch: “Our plan over the next three or four years must be to create a structured sub-Saharan environment for BMW vehicles so that when the X3 is ready, so are the markets.”

Abbott explained that the firm intends to do this by working with African banks to create new vehicle financing options in target countries. Additionally a scheme is underway to re-sell used BMW’s from South Africa and elsewhere in the new African markets, while working with African dealerships to enhance sales and services to Western standards.

Ultimately, BMW is looking to secure its place in Africa’s conscious as the premier luxury car brand. Armed with major investment and an airtight strategy, it would seem unwise to bet against them.

Read more

The Ivory Coast looks to double its hydrocarbon production by 2020

29 July 2016 Comments (1) Africa, Business, Featured

ivory coast offshore oil

The Ivory Coast, plans to double its production of hydrocarbons by 2020.

The Ivory Coast boasts one of the region’s most reliable power grids, which allows the nation to export energy to its neighbors. However, a recent economic boom in the already thriving Ivorian markets has seen the demand for energy rocket. The ever-growing demand for more energy has meant that the Ivory Coast has set itself the ambitious goal of doubling its hydrocarbon production by 2020.

The numbers behind the headline

While doubling production could be quite achievable for a nation only just embarking upon the mining of newly discovered resources, the Ivory Coast has a well-established hydrocarbon industry, in which 70% of its resources are already used up by electricity production.

The obvious questions are whether doubled production is realistic, and just what needs to be achieved if the aim is to be met. In simple terms, it means an increase from around 100,000 BOE (barrels of oil equivalent) per year, to roughly 200,000 of annual production by 2020.

Despite this seeming a large undertaking, the Ivory Coast has every reason to be confident. The recent history of its hydrocarbon industries shows hugely impressive growth, and there are plans in place to help realize its goal. From 2012 to 2013, the Ivory Coast doubled its natural gas output, reaching 220 million cubic feet per day. By 2014, this was 250 million cubic feet per day – mainly produced by the Ivorian company, Foxtrot International.

The state oil company Petroci is also working with Foxtrot and GDF Suez to ensure that natural gas contributes even further to the Ivory Coast’s energy needs. Foxtrot committed almost $1 billion over a 5 year period, in 2013, to increase gas production annually.

Petroci itself has also made marked inroads in expanding oil production, increasing its production from around 30,000 barrels per day (bpd) in 2014 to a 2015 high of 53,000 bpd. Such increases, in both gas and oil, indicate that the nation is well on target to meet its grand scheme of doubling total production across the field.

Confidence in development

Foxtrot International worker

Foxtrot International worker

While the aforementioned figures are impressive, the government’s supervisor of hydrocarbon exploration and production, Ousmane Doukouré, reported that the first half of 2016 has seen oil extraction at around 45,000 bpd. While this is still a marked improvement on 2014 figures, it is down from last year’s figure. However, investment, foreign assistance, and as yet untapped resources all provide confidence.

Petroci’s Managing Director, Ibrahima Diaby, spoke at an energy conference in the country’s capital, Yamoussoukro, and indicated the scope for development. Diaby spoke on off-shore gas reserves in the country, saying, “Today we have around 60 blocks. We’ve awarded about 20.”

Companies such as Exxon Mobil and Total are working on exploration within the Ivory Coast, and in addition to outside support, the Ivorian government has pledged $3.3 billion to boost oil production over the next 5 years.

For many years, the Ivorian government focused its development efforts on the agricultural industry, and as such energy was somewhat ignored. With a concerted effort from both the government and private companies, the resource rich nation is likely to grow its output exponentially. Diaby said the outcome of the nations increased gas and oil production would boost electricity by 80% over the next 6 years.

Foxtrot International began digging 7 new gas wells in 2014, and installed a new platform at its Marlin gas field in 2015. With major international oil and gas companies invested in developing the nation’s energy infrastructure, Diaby was confident in saying, “With the current exploration, our ambition is to reach 200,000 BOE (barrels of oil equivalent) in 2020.”

Wisely, there are additional angles to meeting the Ivory Coast’s growing energy needs. Aside from the ramped up production of domestic hydrocarbon resources, Diaby also told journalists that the country would begin importing liquefied natural gas (LNG), to help supplement the gas needs of some its power plants. These imports are scheduled to begin in 2018, and the Texas based company, Endeavor Energy, confirmed that it was aiming to secure a $900 million gas-driven power project within the Ivory Coast.

If such developments continue, West Africa’s largest economy may soon become as known for its power production as its famous cocoa exporting.

Read more