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Folorunsho Alakija: A portrait of a billionaire

Comments (1) Africa, Featured, Leaders

Folorunsho Alakija

Businesswoman, fashion designer and even a marriage counselor; Folorunsho Alakija won’t be retiring any time soon.

Folorunsho Alakija is not only the second richest woman in Africa but she has also been listed as one of the most powerful 100 women in the world by Forbes magazine. This is a businesswoman who takes diversified interests to a quite remarkable level, as Alakija is not only involved in oil mining and fashion design but has even written books on marriage counseling and started up her own ministry.

So how did this 64 year old Nigerian woman end up in such a position of wealth and influence?

Folorunsho Alakija: “Many have asked how I got to where I am”

Alakija arrived into the world on July 15th 1951, born into a large family in which her father had an incredible 52 children. Alakija and one of her sisters were sent to school in the United Kingdom at the age of 7 and remained there for 4 years.

Although she returned to Nigeria for her high school education, Alakija made her way back to the UK as a young adult where she studied to be a secretary and also took up a fashion design course at the American College in London and the Central School of Fashion.

Alakija began her first job in 1970, working as a secretary for Sijuade Enterprises and then 4 years later moved on to become the Executive Secretary to the Managing Director of First National Bank of Chicago (now First City Monument Bank).

From this point on, determination, hard work and the confidence to take risks are what saw Alakija’s career go far beyond her formal qualifications. While she did not have a degree, diligence and natural talent helped her carve out increasingly senior roles in the corporate world. Within two years of joining the bank, Alakija was promoted to the Head of Corporate Affairs and subsequently rose further into the company hierarchy by becoming Office Assistant to the Treasury Department.

While many people would have been happy to continue such a progression in the corporate world, Alakija wanted to use her creativity and took a gamble by leaving the security of her career to launch her own fashion house in 1983. The Rose of Sharon House (originally named Supreme Stitches) was an almost immediate success and made Alakija a household name in Nigeria as she promoted traditional prints and Nigerian styles in her clothing.

A move from the finance sector into fashion design might seem unusual, but Alakija’s massive success has been built upon her willingness to take calculated risks and in 1991 she made another bold move into yet another arena.

“A truly family business”

In 1991, Alakija ventured into the oil industry and although her prospecting license was not granted until 1993, it was the move that would turn a successful career into one that made billions. Alakija’s company Famfa Oil acquired 60% of a lucrative block of coastal oil that came to fruition in 1996 when Texaco (now Chevron) approached her to broker a deal. Negotiations lasted 3 months, but at the end of it Alakija had a deal with a multinational oil company and Famfa Oil became a juggernaut in African business. Famfa is, as Alakija states, a “family business” in that her husband of 40 years is the chairman and their four sons are the Executive Directors.

Having been happily married for four decades and being a devout born-again Christian, it is perhaps unsurprising that Alakija is saddened by the world’s increasing divorce rates. What might be more surprising about a billionaire businesswoman is that she decided to try and address this by writing a book on marriage counseling and by regularly giving speeches around Nigeria to try and help provide advice on how to make marriage work.

“A burning desire to help the less privileged and needy”

Helping people is something that is important to Nigeria’s richest woman and her huge financial clout has meant that she is able to do a lot more than write books. In 2008, The Rose of Sharon Foundation was launched to allow Alakija to invest in the futures of widows and orphans in Nigeria. Scholarships and interest-free loans aim to help those with very little prospects have a chance at changing their own fortunes.

There have been 9,000 medical and engineering scholarships thus far and in addition to this work, Alakija has provided 21 clinics for treating tuberculosis across the country, 21 science laboratories and is in the process of designing the building of two schools that will bear the name of her foundation.

Alakija’s career has been extraordinary by any standards and yet with her foundation, public speaking and the ministry she launched in 2004, there is no sign of her slowing down any time soon. And it is her religion that she insists is behind her success and her passion to keep working and promoting her belief in her faith. Although many people might look to her ingenuity, brave decision making and talent, Alakija says “Though many have claimed that I have become their role model, I assign all the glory to God.”

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Palestinian banker charts path to economic growth

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Hashim Shawa

Hashim Shawa, who took over his family’s bank at age 31, has built the largest bank in the Palestinian territories with deposits of more than $2 billion.

Amidst occupation, war and financial uncertainty in the Palestinian territories, a young financier has built his family bank into the largest financial institution in the territories and its second largest employer.

Hashim Shawa took the reins of the Bank of Palestine in 2007, when he was only 31 years old, following the sudden death of his father.

Named by one of 100 most powerful Arabs under age 40 by Arabian Business, Shawa has made the bank one of the fastest growing in the region with more than $2 billion in deposits.

Bank started to aid citrus farmers

Shawa’s grandfather, Hashim Atta Shawa, founded the Bank of Palestine in Gaza in 1960, as an agricultural bank.

The Shawa family was in the citrus business, exporting oranges and grapefruit to Europe. The elder Shawa launched the bank to help Gaza farmers obtain loans for farm equipment and irrigation systems.

Israeli authorities closed the bank for more than a decade after the Six Day War in 1967. When Israel occupied Gaza, it ordered Hashim Atta Shawa to change the name of the bank from Bank of Palestine. The bank founder refused.

Following a favorable Israeli court ruling, the bank re-opened in 1981 and moved its headquarters to Ramallah on the West Bank. Hashim Shawa’s father, Hani Hashim Shawa, headed the bank until 2007, when he died of a heart attack.

Banking experience in Europe, Middle East

The younger Shawa’s transition to lead the bank at age 31 was sudden and unexpected. However, he had established his banking credentials in Europe and the Middle East.

Shawa worked as assistant vice president at Citigroup Private Bank in London from 1997 to 2002, after completing a degree in engineering at University College in London in 1997. He also served as vice president and senior private banker for Middle East region at Citigroup Private Bank in Geneva from 2002 to 2005. He was as associate director responsible for developing banking business in the Middle East & North Africa, at HSBC from 2005 to 2007.

Shawa said the family had always planned on him eventually taking the reins of the Bank of Palestine, first becoming his father’s deputy and then chief executive officer. “All of those plans had to be fast-forwarded in difficult circumstances,” he said.

Deposits more then double

In addition to being chairman and general manager of the bank, Shawa is vice chairman of the Palestine Institute for Financial and Banking Studies and a director of Investbank – Jordan, Abraj Real Estate Investment and Development Co., the Palestinian Investment Fund, and Palestine Power Generation Co.

Nine years after he took over, the Bank of Palestine has more than 50 branches and employs about 1,500 people. Deposits have doubled since 2009, from $1 billion to $2.1 billion.

Shawa said the bank has grown with demand for basic services such as small business loans and mortgages.

Challenges in Gaza

Progress has not come without its challenges, especially in the Gaza strip.

The bank faced street protests at some Gaza branches after it stopped transactions involving charities that might be in violation of international rules because they support Hamas.

Rival Arab Bank paid an undisclosed settlement after hundreds of terror victims sued on the grounds that the bank maintained accounts for Hamas operatives that made payments to the families of suicide bombers.

The Israeli-Gaza conflict in 2014 forced the bank to close more than a dozen Gaza branches for nearly two months except for occasional openings to allow customers to withdraw cash or make deposits.

Young population promises growth

Unlike other parts of the Middle East, nearly all of the businesses operating in the Palestinian economy are small or medium-sized. Growing interest in establishing businesses along with a population that is overwhelmingly young – three-quarters of the population is under age 35 – add up to opportunities for further growth for the bank.

“It’s a good foundation for any company that wants to set up a business and develop a growth strategy in any sector,’’ Shawa said. “We have a healthy target market of customers coming in every year, and they’re going to be looking at personal, home and business loans.”

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Oil-dependent Gabon seeks to diversify industry

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gabon oil worker

The African nation looks for private investment as it creates infrastructure to grow timber and mining production.

Gabon is making progress with its ambitious strategy of industrializing its economy by 2025, but plunging oil prices may slow its advances.

Gabon’s goal of economic diversification took on new urgency in 2015, when the plunge in oil prices sent shock waves through the economy of the nation of 1.8 million people located on the Atlantic coast of equatorial Africa.

In 2010, Gabon adopted a sweeping Strategic Plan Emerging Gabon, designed to diversify its economy and make its industry more competitive. With 80 percent of its export revenues coming from oil, the country is attempting to increase timber production and mining.

The plan calls for major investments in infrastructure and services to establish the Gabon Special Economic Zone with as many as 10 economic areas around the country.

Timber processing is key

Gabon’s industrialization plan relies heavily on improving the timber industry.

Forests cover nearly 85 percent of the country and it is home to more than 400 tree species.

In 2010, the government decided to halt exports of raw logs as a way of encouraging domestic processing, which would in turn increase profits and create more jobs. By 2012, about one third of logs were being processed in Gabon.

France is the largest importer of processed wood projects from Gabon, accounting for 42 percent of sales while Asia accounts for 3 percent.

Timber revenues triple

Since the halt, timber revenues have tripled from $66 million in 2009 to $190 million in 2014.

Gabon also created a special economic zone, Nkok, in Libreville, to make it easier for foreign companies to do business in the country.

The Nkok zone attracted 62 investors in 2013, including 40 percent in the timber industry. The number of timber processing factories increased from 81 in 2009 to 114 in 2013 while the number of jobs nearly doubled to more than 7,000.

The boost in the timber sector also resulted in the startup of transportation companies to haul logs.

Timber awaiting processing in Owendo, Gabon

Timber awaiting processing in Owendo, Gabon

Growth in mining sector

Mining is another sector that Gabon is attempting to grow.

Following the creation of a metallurgical complex in Moanda, production of manganese increased to $305 million. At the same time, the country went from small-scale production of gold – about 30 kilograms in 2009 – to produce more than 1,200 kilograms in 2014.

The economy grew about 4.1 percent in 2015, and the African Economic Outlook projected similar growth in 2016.

Economic challenges persist

Nevertheless, Gabon’s economy “is facing mounting headwinds,” the International Monetary Fund (IMF) said in early 2016.

According to the IMF, falling oil prices have resulted in a slowdown in non-oil sectors including construction, transportation and services.

The slowdown has led to a government budget deficit of 2.3 percent of Gabon’s gross national product in 2015, after posting a surplus of 2.5 percent the year before. At the same time, the nation saw a trade deficit of 1.9 percent in 2015 compared to a surplus of 8.3 percent in 2014.

Slower growth forecast

The IMF predicted economic growth of only 3.2 percent in 2016, largely because of declining oil production. However, growth in the agricultural sector could help increase the growth rate to about 5 percent in 2017-18.

IMF directors noted that Gabon has made progress authorities in developing the country’s infrastructure since 2010.

They emphasized the need to continue to foster diversification so that Gabon will be less vulnerable to fluctuating oil prices.

As revenue to the government tightens, IMF directors recommended that Gabon officials focus on high-impact infrastructure projects and structural reforms that will increase productivity and improve the labor force.

Gabon improves regulatory climate

At the same time, Gabon officials have acknowledged that the regulatory environment could be better for business.

Gabon President Ali Bong Ondimba pledged to “radically improve” the business climate by streamlining the regulatory process for investment through a National Agency for Investment Promotion and with establishment of a National adjustment for Competitiveness Pact to facilitate and speed up establishment of business operations.

Ondimba said the country must encourage private investors to step up as public investment declines.

“We must ensure that everyone plays their part. The government facilitates the business environment and the private sector that invests and recruits. If everyone plays his role, we will (achieve) growth and the creation of 20,000 jobs per year,” he said.

One bright spot for investment in Gabon’s efforts came in April, when AFRICA Finance Corporation, based in Lagos, Nigeria, announced it was investing up to $140 million in the Gabon Special Economic Zone to help fund infrastructure projects including a new mineral terminal.

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Peugeot Nigeria: Rebirth and Revival thanks to Africa’s richest man?

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Aliko Dangote

January 26th saw the closing of bids for AMCON’s controlling shares of Peugeot Automobile of Nigeria Ltd.

AMCON’s acquisition of PAN’s controlling shares in October 2012 is set to end as Nigeria’s so called “bad bank” opens its shares of PAN up to bidders. Africa’s wealthiest man, Aliko Dangote, is ready to step up to the challenge.

January 2016 saw AMCON (the Asset Management Company of Nigeria), Nigeria’s so called “bad bank”, look to sell its stake in PAN (Peugeot Automobile of Nigeria Ltd.), and they began to invite bids from investors. AMCON currently owns a 79.3% controlling interest in PAN.

PAN was founded in 1972 as a joint venture between the French automaker and the Nigerian government, with the goal being to manufacture and market vehicles under the brand name of Peugeot.

Peugeot NigeriaDuring the 1980s PAN was profitable and produced upwards of 90,000 cars yearly. However, due to the influx of cheap, second-hand vehicles that began to come in to the country from Asia, the company began losing profits. This led to the sale of the controlling stake in the company, by the Nigerian government, to investors in 2006.

Unfortunately, the new investors did not fare well and managed to accumulate bad debt during their leadership, leading to AMCON’s acquisition of the majority share in the company in October 2012.

“Following the accumulation of huge non-performing loans (NPL) indebtedness to banks, in October 2012, the AMCON acquired the debts of the company and converted a portion to equity to help restructure the firm,” Peugeot had said.

Aliko Dangote and his associates take center stage

Enter Aliko Dangote, President and Chief Executive Officer of the Dangote group. A man that also carries the distinction of being Africa’s richest man, as ranked by Forbes in 2015, with an estimated wealth of $17.3 billion.

Dangote is already active in the cement, oil, food, sugar and farming industries, and now has his sights set on the automotive industry. Aliko Dangote has teamed up with the Nigerian States of Kaduna, and Kebbi, as well as the development lender Bank of Industry (BOI) to bid for the shares now up for sale by AMCON.

Governor Nasir El-Rufai told a conference, “We have submitted bids for the carmaker… with Aliko Dangote on board together with BOI, Kebbi and Kaduna State, we are confident our bid will sail through.”

Bidding for the stake controlled by AMCON closed on January 26th, and Governor El-Rufai did not provide any further details.

On its website PAN stated that its assembly plant, which is located in Kaduna state, has Peugeot Citroen PEUP.PA as its technical partner, and it has the capacity to assemble 240 cars in a day.

Made in Nigeria

Meanwhile, the Nigerian government has been keen on promoting a “Made in Nigeria” industrial policy and ordered local car distributors to make plans for new assembly plants back in 2014. They threatened to begin imposing prohibitive import duties.

Jean-Christophe Quemard, who is the executive vice president for Peugeot in Africa and the Middle-East, met with President Muhammadu Buhari in November to discuss reviving local production.

Other automakers such as Germany’s Volkswagen, Renault-Nissan, and South Korea’s Kia motors have also announced plans to begin assembling their vehicles in Nigeria, which is currently Africa’s biggest economy.

Not to be outdone, the Ford Motor Company of the United States will set up an assembly plant in Nigeria in November. With a 5,000 vehicle annual capacity, the plan is to produce up to 10 vehicles each day for the local market and eventually move into export into West African countries.

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Aïssa Dione: One woman’s fight for traditional Senegal textiles

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Aissa Dione

The lady behind internationally renowned textile company Aïssa Dione; artist, designer and entrepreneur.

Dating back to the 15th century, Senegal has a tradition of textile weaving and dyeing as rich as the fabrics themselves. However, with a shift towards mass-produced clothing and the ever changing fashions and trends, this time-honored practice has suffered a huge set back. The name Aïssa Dione has become synonymous with the ancient craft, as she has fought to revive what was a tradition on the brink of distinction. “Spinning and textile industries have nearly all closed and traditional weavers are slowly but surely disappearing,” said the designer, a woman who has dedicated her life to reviving Senegal’s tradition.

A bold autodidact

Born to a French mother and Senegalese father in 1952, the renowned painter and textile designer grew up in Nevers, France. She attended the school of Fine Arts in Chelles before leaving to Senegal at the age of 20, to pursue an international career as an artist. Fate was to slightly alter her career course, when a potential buyer of her work, Pierre Babacar Kama, head of Chemical Industries of Senegal (ICS), said he would like first for his offices to undergo a revamp. It was “a bluff,” she said, when the budding artist responded confidently that she could manage such an undertaking.

This event marked the beginning of the entrepreneur’s textile and business adventure. Dione began with a single weaver who had worked for her grandmother. They set up their make-shift studio in her garden and she went to work, combining her artistic flare with traditional Senegalese weaving methods, such as the Mandjaque technique. The result was so impressive that many commissions were to follow. Local media interest sparked intrigue and soon her work was reaching a global audience, with orders flying in from all across the globe.

Celebrating Senegal

Aïssa Dione Tissus

Aïssa Dione Tissus was officially launched in 1992. From its modest beginnings it rapidly grew from having a single weaver to 15 workers, prompting a move to a more suitable location. Still her place of work today, her now burgeoning artillery is situated in Rufisque, a small town outside Dakar in Senegal. The company employs 100 Senegalese artisans. Dione dreams of recruiting more and expanding her business further but in the meantime there are Senegal’s restrictive labor laws to contend with.

Passionate about her roots, what she has borrowed from the country’s tradition and methods, she has more than given back by celebrating all that is Senegalese through textile and showcasing it to the world. The company’s philosophy is one of slow industry; creating a refined, luxury brand from local raw materials. While the West African country exports 5,000 tons of cotton annually, none was previously leaving as finished pieces of textile; the entrepreneur is changing this trend. The products from Aïssa Dione Tissus are 100 percent made from Senegalese materials, created by a purely Senegalese workforce and traditional methods of dying and weaving that are still harnessed to this day. One example: the all-natural dyes they make out of local bark and mud collected from the lake during the dry season.

“I strongly believe in small-scale industries, as a way to bring development to West Africa. We grow a million tons of cotton in this region and we export 99% of that. If I can process that cotton here, at home, I can increase my revenue fifty or one hundred times,” said the elegant 62 year old.

The future for textile and art

What the statuesque designer has so masterfully achieved is introducing a social and economically aware business into the world of high fashion and design. She discovered how to elegantly blend the traditional with the modern and it is a roaring success. What had been slowly slipping into oblivion was rescued from the precipice and with just the right modern twist is made palatable for the current trends. Labels such as Hermès, Christian Lacroix and Fendi Casa have made orders from Aïssa Dione fabrics and designers such as Jacques Grange, Christian Liaigre and Peter Marino have all used her products.

Her passion, her drive and her determination to stick fast to her beliefs make the success of Aïssa Dione Tissus even more incredible. Many frustrations along the way could have tempted a less resolute person to take shortcuts here and there but that would have compromised too much of what this French-Senegalese artist and “Lioness of Africa” believes in.

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Tourism in Morocco down amid regional unrest

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Casablanca Morocco tourism

While the North African nation is considered safe, instability in neighboring countries prompts decline in foreign visitors.

As regional unrest results in declines in tourist visits by Europeans, Morocco is attempting to attract more visitors from Russia, China and West Africa.

A visit by Moroccan King Mohammad VI to Moscow in March underscored the North African nation’s strategy of attracting tourists from outside European nations that have traditionally been major sources of visitors.

The Ministry of Tourism of Morocco is also in talks with airlines to open direct flights to that country from Russia and China.

Safety fears groundless

Tourism minister Lahcen Haddad said Morocco has lost tourists because of unwarranted fears about safety prompted by continuing unrest in Libya, Tunisia and Egypt as well as recent attacks by terrorists in Turkey.

“Morocco remains a very safe and secure country,” Haddad said. “But we need to do more to get that message across.”

A 2015 report by the Overseas Security Council also declared all areas of Morocco safe for tourists, citing mostly minor thefts as the main risk.

Tourist visits down 1 percent

The country’s tourism industry got a wakeup call in 2015, when total tourism revenues and tourist visits declined after a decade of growth.

According to the Treasury and External Finance agency, tourist revenue to hotels and restaurants declined by 1.3 percent during the first three quarters of 2015, following an increase of 3.3 percent a year earlier.

The agency said tourist arrivals at Moroccan border posts also declined by 1 percent in 2015 while these arrivals had increased by 2.4 percent to more than 10 million in 2014.

French visits drop by 7 percent

The largest decline has been among the French, who constitute Morocco’s largest source of tourism. French tourism to Morocco declined by 7 percent in 2015. The nation also saw declines in visitors from Spain, Italy and Belgium, while arrivals from the United Kingdom and the United States increased, according to the tourism ministry.

Tourism revenue in 2015 totaled about $6 billion, still a significant share of Morocco’s $100 billion economy. The sector employs about 400,000 people.

Like other countries in the region, Morocco experienced significant growth in its tourism industry between 2001 and 2011, according to Eurostat. The Arab Spring began in Tunisia in 2010 and spread to Egypt, Libya, Syria, Yemen, and Bahrain the following year, prompting varying degrees of unrest and instability that persists in some countries today.

Other countries see steep declines

Morocco has not fared as badly as some other countries in the region.

Egypt more than tripled the number of visitors to 14.7 million in 2010, only to see tourism drop by one third. Jordan, while stable, saw tourism fall by 17 percent in 2010 and 2011.

Turkey, hit by terrorist attacks, also experienced steep declines in tourism, which accounts for 15 percent of its gross domestic product.

As Europeans stay away, Morocco is pinning its hopes to expand the tourism sector on visitors from Russia, West Africa and China.

King Mohammad visits Moscow

King Mohammad visits Moscow

King visits Moscow

In March, a visit to Moscow by King Mohammad VI’s included talks about ways to encourage more Russians to visit Morocco as well as talks about providing direct flights to the North African country from St. Petersburg and Moscow.

In his first visit to Russia since 2002, the Moroccan king met with Russian President Vladimir Putin to discuss bilateral cooperation in tourism, agriculture and energy. The two countries signed 12 agreements related to tourism.

The king also inaugurated an exhibition “Morocco-Russia: A shared ancient history,” which includes bronze objects from ancient Roman sites as well as Roman statues at Moscow’s Pushkin Museum.

Goal is 200,000 Russian visitors each year

Haddad, the Moroccan tourism minister, said the nation hopes to increase the number of Russian tourists five-fold, from 40,000 annually in 2015 to 200,000 by 2019.

“Russia offers us a big opportunity,” he said.

Haddad said talks are under way with Royal Air Maroc and Russia’s Aeroflot about opening new routes between Marrakesh and Agadir in Morocco and Moscow and St. Petersburg.

A 2014 plan to add direct flights between Morocco and China has not been implemented.

Morocco is hub for West African travelers

Meanwhile, Haddad said Morocco is a top hub for West Africans traveling to Europe or other countries in Africa.

Haddad said Morocco could attract as many as 160,000 visitors from West Africa if it can entice transit travelers to stay a few nights in Casablanca and visit attractions such as the medina and Hassan II mosque.

Morocco’s tourism industry is expected to get a boost later this year with more than 30,000 attendees at COP22, the 2015 global climate conference November 7 – 18 in Marrakesh.

Morocco has also started talks with European carriers about offering low-cost flights to Moroccan tourist destinations such as Ouarzazate and Errachidia, Haddad said.

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A great season for Tunisia’s olive oil

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tunisia olive oil

The EU has granted Tunisia a 2 year tax break on the import of olive oil; now it is down to the country to make it a top seller.

Producers of olives and olive oil since Roman times, Tunisia has stuck to a tried and tested method of harvesting this ancient fruit. Due to relatively cheap labor still on offer in the country, the olives benefit from being gathered using a technique of gentle sweeping with small rakes by a mostly female workforce.

Said to help retain the flavor of the olives and cause less damage to the trees, handpicking prevails over the commonly adopted method of machine harvesting in Europe. In order to distinguish themselves on the global market, maintaining the best flavor from their olives and being able to confidently ensure a pure product is paramount. “We can say that our bottled oil is 100% Tunisian and that counts for a lot in specialty shops. This is something Italy cannot always guarantee,” said Lemia Thabet, Executive Director of the Tunisian Technical Packaging Centre.

New lease on life for ancestral industry

Tunisia is the biggest producer of olive oil outside of Europe, yet for such a prolific producer the northernmost country in Africa has up until now remained decidedly in the shadows of its European counterparts. It has settled instead for selling off large quantities of oil to rival countries such as Spain, the biggest producer in Europe, and to Italy, commonly thought of as the home of olive oil. The wholesale olive oil is then mixed with the local kind, by way of improving on what will become the big brands we are all familiar with. In this way the “liquid gold” Tunisia produces is generating far less money than if they had the means to bottle, package and label the product on their own.

Tunisian olive oilOn 10th March, 2016, the European Parliament agreed upon an initiative to allow the country to export tax-free olive oil for two years, limited to 35,000 tons per year. The reason for the tax break is in part due to the particularly bountiful spell that Tunisia has been experiencing compared with the rest of the world. Records released by the Tunisian Ministry of Industry, Mines and Energy showed that for the 2014-2015 season, Tunisia exported more than any other country worldwide. In a record-breaking harvest, overseas sales reached 299,300 tons, which equates to a massive 10 percent of the global olive oil consumption. This earned the country, which has a 3,000-year history of olive-farming, a respectable $976 million. “Our record harvest has coincided with a shortfall in international production,” said Abdellatif Ghedira, the head of the government’s National Oil Office. “This year we are the world’s second-largest producer.”

Olive oil economy

Accounting for over 10 percent of Tunisia’s exports and providing a livelihood for hundreds of thousands of people, it is unquestionable that the olive oil trade is of major importance to the country, coming second to tourism. However, after the devastating effects of 2015’s Bardo Museum terrorist attacks and the Sousse beach massacre, what once was the nation’s linchpin, generating 15 percent of the country’s GDP in 2014, is now a sector worryingly in decline.

Bereft of some one million foreign visitors last year, the economy is in crisis and the security of the nation as well, as the somber climate has given rise to expanding terrorism. Recognizing the terrible blows Tunisia has been dealt over the past year and the promise the country had shown for real democratic change, the EU stepped in. A declaration of political support is the primary reason for implementing the measures, in hopes that it will allow the Tunisian economy enough time to recover. “Exceptional times call for exceptional measures. The proposal is a strong signal of EU solidarity with Tunisia,” said High Representative of the European Union, Federica Mogherini, adding, “Tunisia can count on the EU’s support in such a difficult time.”

Promoting the future

The tax break may come as a temporary relief but other obstacles still lie in the paths of the country’s producers. To truly make a success of this opportunity they first need to contend with a market that is very much geared towards promoting Spanish and Italian olive oil as superior. Also for the most profit to be made the entire production process would have to take place on home turf. “We buy almost all our bottles and stoppers from Italy and that pushes up the price, we should be making our own,” said expert Mounir Ouhrani of Slama Huiles.

While there may be some hurdles along the way, Tunisia can rest assured on the product they have to offer. A country that is covered with 1.7 million hectares of olive trees, almost 20 percent of the olive tree orchards worldwide, they are no small fry. The uniqueness of the olive oil they produce is remarked upon internationally; a particularly rich flavor that due to its high fat content is able to withstand high temperatures while still maintaining its notable nuttiness. Pair this with the traditional way in which the olives are harvested and you have two solid reasons why the North African country could make a successful breakthrough onto the global olive oil market. Given the chance and an audience who are willing to look beyond the norm, olive oil could soon be Tunisia’s number one industry.

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Algeria seeks to boost its tiny stock market

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Challenges include lack of knowledge of stock investment in the domestic market, lack of liquidity in investments and competition from more traditional investments.

Algerian officials are looking for ways to boost investment in the country’s stock exchange, which is one of the world’s smallest.

The relatively young exchange, based in Algiers, lists only four companies and has a capitalization of less than $140 million.

Officials hope to increase the capitalization to $1 billion in 2016 by listing additional companies.

The stock exchange faces several challenges, including lack of knowledge of stock investment in the domestic market, lack of liquidity of investments and competition from more traditional investments.

Biopharm offering attracts little interest

A recent initial public offering by the Algerian pharmaceutical company Biopharm had a lackluster start, raising only $6 million in its first week, far less than the $5.5 billion, or 20 percent shares in the company, on offer.

According to experts, Biopharm has clear advantages as an investment. It operates in the health sector, which is expected to grow as the population ages. It has a solid record of financial results, including net revenue of $32 million in the first three quarters of 2015 and promises a return of 14 percent.

Stock market is seen as a novelty

Investing in the stock market is a relative novelty in Algeria, which only established the exchange in 1999. Instead consumers favor more traditional investments, such as real estate, which are seen as more stable and safe. Another popular investment is to convert Algerian dinars to Euros, which in recent years has yielded higher returns than the Algiers-based stock market.

Another problem is the lack of liquidity of stock investments. Given low consumer interest in the exchange, it can be difficult for those who want to sell to quickly find stock buyers.

The stagnant Algerian exchange contrasts with the largest stock exchange in the region, in Saudi Arabia, which is also the largest economy in the region.

Saudi market capitalization is $570 billion

The Saudi market capitalization is $570 billion, or about one percent of the world stock market and larger than the main market in Russia. The exchange is highly liquid, with a daily trading volume of $2.5 billion, making up 65 percent of the trading in the entire region.

Saudi stock exchange

Saudi stock exchange

The Saudi exchange, which has issued several initial public offerings, opened to foreign investment in 2015. The exchange is primarily geared to larger foreign investors in order to promote stability.

Other large exchanges in the region are in the United Arab Emirates, with a market capitalization of $245 billion, and in Qatar, where the stock market is capitalized at about $200 billion.

Algeria’s neighbors also have active stock exchanges. Morocco’s exchange is capitalized at approximately $48.8 billion with 77 companies listed. Tunisia’s exchange has a market capitalization of $9.2 billion with more than 70 listings.

Algerian government seeks to boost exchange

Some have said the Algerian government should be doing more to promote that nation’s stock exchange.

Algerian Finance Minister Abderrahmane Benkhelfa recently met with representatives of the stock exchange, bank managers and other key players to explore ways to “boost the stock market.”

Benkhelfa stressed “the need for synergy and dialogue among the organizations to give more credibility to the financial market.”

The minister said the stock exchange needed to be modernized with improvements in company transparency, including regular publication of their financial statements, and efforts to improve competitiveness. He appealed to Algerian companies to join the market to fuel their growth.

He said the upcoming listings of Biopharm in April and of Aïn Kbira of Sétif, a cement company, in May, would help boost the market’s value significantly.

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Keeping In Step: Competition for Anghami Music App in MENA

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Anghami, a recently launched Lebanese music listening platform, is facing fierce competition from the French company Deezer, which recently announced an expansion into some Middle Eastern and North African countries.

Mobile music listening platforms have rapidly become the norm, and with an ever-expanding variety of services, competition is fierce between geographically isolated competitors. Anghami, a newly launched Lebanese mobile music platform, gained more than half a million users in its first three months on the market, leaping to the top of iOS app lists in 12 MENA countries. A reported 30% of Anghami subscribers use the app daily, indicating strong staying power, and the app has already been shortlisted for a variety of MENA technology start-up awards.

While Anghami has burst into the scene as a regional leader, it is now being threatened by French music platform Deezer. Deezer, which boasts more than 7 million active users, announced that it would be putting $130 million towards an expansion into the MENA region. Deezer will soon be available in Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Tunisia, UAE, and Yemen, encroaching very seriously on Anghami’s territory.

Not Missing A Beat

While Deezer may have more experience than Anghami, Anghami was specifically created for Arab users. Anghami’s founder, Elie Habib, was very conscious of his demographic’s needs: consumers in the MENA region prefer mobile music that can be easily shared with friends, and so Anghami is only available on smartphones. Anghami is widely available on most smartphone platforms to cater to its clients’ varied phone plans.

Unlike Anghami, Deezer is available both on smartphones and through the web, but is more limited in terms of platform compatibility because its current, mostly European users have a smaller variety of phones.

Anghami is also conscious of its users’ interest in learning about new music through the app. To meet this need, Anghami has a personal DJ function that enables users to discover new music. Deezer has no such function. While currently in English, Anghami is reportedly working on an Arabic version to drive home its local focus. Currently, 75% of Anghami’s users’ phones are set in English, and 25% are in Arabic. Creating an Arabic language version would create a better sense of inclusion for 25% of users and may increase appeal amongst Arabic speakers around the region. Anghami is very MENA focused, and is only available in 15 countries. Habib points to this as one of their strong points: they are focused on a very niche group, and can better tailor the app to meet their needs and changing demands, unlike Deezer, which is now expanding for a more global reach.

The Customer is Always Right

In keeping with its regional focus, Anghami not only provides its users with access to international music, but has specific sections for Arabic music as well. Users with premium access can download songs from Anghami to their phones and listen when there is limited or no internet available. This is especially important for a region that does not have 100% internet coverage. For users in, say, the Atlas Mountains of Morocco, being able to download music would be incredibly important.

Anghami’s premium service enables users to share downloaded music with friends on social networks, such as Facebook or Twitter, and is ad free.

While Anghami boasts many intriguing aspects, Deezer’s global reach and larger consumer network has made it much more globally attractive. Not only does Deezer provide a similar new-music service, but the app tracks listening trends and personalizes playlists. Users with the premium app can opt to see the lyrics of their favorite songs in real-time, thus preventing the age-old embarrassment of belting out nonsense. Since Deezer is available across language barriers, this may be a very interesting feature for people whose first (or second) language is not English. Anghami has not specifically addressed this feature, but it seems as though it would be a good opportunity to incorporate into their Arabic language platform.

Welcoming The Big Fish Into A Not-So-Small Pond

Co-founders Eddy Maroun and Elie Habib did their due diligence before launching Anghami, securing deals with key regional and international labels. Several Arab artists have released their albums only through Anghami, making the appeal of new music even greater. Deezer has similar contracts with one major exception: Anghami has an exclusive three-year contract with Rotana, one of MENA’s biggest labels, for streaming in Lebanon, the UAE and Saudi Arabia.

Not only is Anghami strategically linked with important labels, but it is also working on partnerships with telecom companies. For a platform solely available on mobile networks, this is the key.

The question is whether users will move from Anghami to Deezer once their playlists and preferences have been set. Deezer has a much larger catalog of music (more than 40 million titles), but, as Habib points out, “most people only listen to 100,000 songs. What you really care about is the core catalog…by May or June we’ll have 5 or 6 million songs.” As demonstrated by their soon-to-be dual language platform that caters specifically to smartphone users, Anghami is focused on regional appeal, rather than the number of songs available.

Entry Power VS Staying Power

Habib has a very positive outlook for the future of Anghami in MENA, even after the arrival of Deezer. “We’re pretty excited to have Deezer coming in. It validates that we are in the right place at the right time. We’re looking forward to having a healthy competition. At the end of the day, the user benefits from it,” says Habib.

Anghami is shiny, new, and specifically designed for an Arab clientele; Deezer is nearly a decade old and has millions of followers from most regions of the world. Anghami’s website features popular Arab artists as well as internationally known musicians, and has photos that are likely a more accurate representation of their users. Perhaps Deezer has plans to use some of its $130 million commitment to design an Arab-friendly website as it expands into MENA, but Anghami’s specific design will, hopefully, give it a boost.

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Algerian telecom Djezzy sees path forward

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A tax dispute behind it, Djezzy receives approval to expand its 3G network in the fast-growing mobile market.

Djezzy, a long-troubled Algerian telecom, says it is on a path to growth after receiving approval to upgrade its network to 3G nationwide.

The upgrade could put Djezzy on a par with rival companies Mobilis, which offers 3G coverage in all 48 of Algeria’s provinces, and Ooredoo, which offers 3G in 36 provinces.

Djezzy currently has more than 18 million subscribers, almost half the market, but it offers 3G coverage in only 30 provinces. The company, in which the Algerian government has a 51 percent stake, said it would extend service to the remaining provinces this year.

Tax dispute slows Djezzy growth

Algeria’s mobile market is booming. However, Djezzy’s growth has been slowed by a lengthy dispute over back taxes that culminated in the Algerian government’s purchase of a majority share in the company in 2014.

VimpelCom, owned by Telenor ASA of Norway and Russian billionaire Mikhail Fridman, retained the remaining 49 percent of the Djezzy, and continued to operate Djezzy through their Optimum Telecom Algeria.

VimpelCom recently reaffirmed its commitment to the Algerian market.

Company will expand 3G nationwide in 2016

Vincenzo Nesci, executive chairman of Optimum Telecom Algeria, said in March that the company had received government authorization to deploy 3G services in all provinces of the country and would implement the expansion during the during the ‘first months’ of 2016.

The expansion follows a long period of crisis for the company.

The Algerian government barred Djezzy from importing SIM cards and other equipment starting in 2010 and the Algerian central bank blocked overseas transfers of funds – including paying dividends to the parent company – in a dispute over taxes Algeria said the company owed.

The government said Djezzy, at the time the country’s largest operator with 14 million subscribers, owed $600 million in back taxes.

Government buys share of company

Algerian regulatory hurdles also derailed a proposed sale of Djezzy to MTN, a telecom based in South Africa, for $7.8 billion.

Instead, the Algerian government bought a majority stake in Djezzy in 2014, in a deal that provided the parent company with $4 billion in cash and dividends after paying a fine of $1.3 billion to settle the Algerian tax claims.

Djezzy faces competition from two other major mobile network operators, Mobilis and Ooredoo, seeking to serve Algeria, which has a population of about 40 million.

Djezzy leads market, lags in 3G

According to an August 2015 report by Algeria’s Post and Telecommunications Authority, Djezzy leads in the total number of subscribers with 18.6 million, nearly half of the market. Mobilis has 13 million subscribers and Ooredoo has 11.7 million.

However, Mobilis leads in 3G subscribers, with 3.8 million, followed by Ooredoo with 3.4 million. Djezzy brings up the rear in 3G with only 1.25 million subscribers.

The regulatory agency said the market grew by 22.7 percent in 2014, compared to 2013. The total market generated revenues of about $3 billion in 2014, 8 percent higher than in 2013.

One study found that Algeria was one of the fastest growing mobile markets in the region along with the United Arab Emirates and Saudi Arabia, while the market was stagnant in Egypt, Kuwait and Israel.

Mobile revenue in the Middle East and North Africa was expected to grow from a total of $50.4 billion in 2013 to $59.1 billion in 2018. As more people consume information on their mobile devices, the study said primarily spending on handset data would drive growth.

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