MENU

Featured
Category

MIT in MENA: Bringing Arab Minds Together for Change

4 April 2016 Comments (0) Business, Featured, Middle East

MIT brings MENA’s smartest minds together for a universally beneficial competition.

On April 14, the smartest technology-oriented minds from the Middle East and North Africa (MENA) will meet in the Kingdom of Saudi Arabia for the third and final round of the MIT Enterprise Forum Pan Arab competition. Organized by the renowned Massachusetts Institute of Technology (MIT), this forum brings together innovative minds from 21 Arab countries to change the way we think, learn and access services.

In its 9th year, this competition brings together MENA’s smartest innovators in four tracks: ideas, social entrepreneurship, start-ups and The Silicon Valley Program. This year, more than 5,000 applications were received from 21 countries in French, English and Arabic. All finalist teams will receive top tier coaching from leaders in their respective fields; networking opportunities with budding and well-known specialists and the opportunity to learn from others in their category. The top three finalists will receive, in order, US$15,000, US$10,000 and US$5,000 to turn their ideas into tangible reality.

Ideas Track

20 teams are short-listed for the “ideas” track. In order to be eligible, candidates must form a team of at least two people including at least one Arab national; are not required to have a working prototype of their invention; are forbidden from having any current sales; and are not required to be registered or incorporated in any way, but are required to incorporate a company in one of the Arab countries in order to win prize money; applicants may not have received any previous funding for their idea; and the idea can be in any industry–technology, food security, health delivery or otherwise.

Since the goal of this competition is to bring fresh ideas into the global marketplace, much of the judging criteria for this track is based on the feasibility of an idea. Teams are judged on three criteria.

Experience: the value each member adds to the team and the relevance of each team member to the incubation and development of the idea

Innovation: the creativity of the idea and whether or not it improves upon an existing solution/business process or introduces a new solution to a current challenge in any field

Scalability: the relevance of the idea to the global marketplace is judged on whether markets outside of team’s community would find the product useful. At a minimum, teams are expected to be relevant on a national scale, and should be replicable on a global scale.

Social Entrepreneurship Track

The Social Entrepreneurship track is similarly judged for eligibility. Teams must have a minimum of two members with at least one Arab national, the team must have a registered social enterprise either for or non-profit, the core product/service must address a specific social challenge faced by marginalized/disadvantaged peoples, and the enterprise can be in any industry.

The 20 finalist teams are judged on similar criteria as above, but with different details.

Innovation: the product/service must provide a new way to tackle the specific social challenge the team is addressing

Scalability: the social enterprise should not be limited to a local market, but should be scalable to the national level at a minimum. Preferably, the model could be expanded and replicated as the enterprise grows, where relevant.

Social Impact: the team will be judged on the efficacy of the project, and the extent to which it benefits the targeted population

Financial Sustainability: the team must prove that their enterprise is financially sustainable in the long-term for both for-profit and non-profit enterprises

Startups Track

30 teams will be selected for the second and final round of the Startups Track competition. These teams must be comprised of a minimum of two members, one of whom must be Arab, must have a working prototype of their startup, must already generate more than $500,000 in revenue, must have been in operation for no more than 5 years, must be legally registered in any Arab country and the start-up may be in any industry.

The teams will be judged on the following:

Team: judges score teams based on their individual experience, the value added by each person and the relevance of each role

Innovation: the start-up will be assessed for creativity, and whether it replicates an existing product/service

Scalability: the start-up must be relevant outside of the local context and should be easily replicable in other relevant fields, regardless of location.

The Silicon Valley Program

Unlike the above tracks, the Silicon Valley Program competition will finish in September, when finalists receive a much more comprehensive and hands on package than the other finalists. The Silicon Valley Program brings entrepreneurs from 20 start-ups to Silicon Valley (in northern California, United States) for a week-long immersive program. Finalists will attend and participate in conferences and workshops with some of Silicon Valley’s most successful start-ups and learn how to successfully “pitch” ideas to funders. Mentors include current industry leaders as well as members of the Arab diaspora who are better able to speak to the specific challenges entrepreneurs from the MENA region face.

This program accepts a higher-level of start-up teams than the other tracks. Start-ups must have been in operation for more than two years, must have global or regional reach/presence, must have successfully completed one round of fundraising and must have more than $500,000 in revenue per annum.

The Rising Tide

Competitions like this provide an incredible opportunity for young, successful and intelligent people to gather and share ideas. Not only do they have the potential to receive funding to scale up their operations to the global level, but they receive invaluable exposure and mentorship opportunities. Previous winners include Visualizing Impact, a Lebanese social enterprise that operates a citizen data laboratory to share science, design and technology data for social justice outside of formal channels; Kotobna, an Egyptian team that provides alternate means for young Arab authors to publish and monetize their written work and Screen DY, a Moroccan team that created a platform for users to quickly build complex, culturally relevant apps for all mobile technology platforms.

This competition is an important hallmark for young Arab entrepreneurs. Benefitting from the experience of others while gaining exposure to other like-minded people can invaluably change the way people in the MENA region and beyond access knowledge, share information and obtain products.

Read more

Iran’s video-gaming industry poised for action

2 April 2016 Comments (1) Business, Featured, Middle East

garshasp

With international sanctions lifted, a burgeoning industry looks beyond its domestic market of 20 million gamers.

Iran, known mostly in the West for its grim political and religious restrictions, has a   burgeoning video game industry that is poised for growth as international sanctions are lifted in the wake of the international nuclear deal with Iran.

Iran has about 20 million video gamers, which represents about a quarter of the total population, according to the Iran Computer and Video Games Foundation. It’s notable that 60 percent of Iran’s population of 80 million is under 30 years of age.

With more than 38 million Internet users, more than half of them gamers, Iran “is the largest growing video games market in the Middle East,” the foundation said.

Games feature missile strikes

Iran’s video game industry is best known in the West for propaganda-driven warfare games such as Missile Strike, a 2015 release in which the Iranians break through Israel’s air defense system and launch missile strikes on Israeli targets, and Attack on Tel-Aviv, a 2011 release that simulates an Iranian military mission to the Israeli capital.

Iranian developers have said they created these games in response to a Battlefield 3, a game that simulates an invasion by United States forces in Tehran to search for the leader of a terrorist group and to look for nuclear weapons. Battlefield 3 was developed in Sweden and published in California.

“The reason we explicitly depict an attack on Israel is that they too are explicitly depicting attacks (on Tehran) in Battlefield,’’ Missile Strike developer Mehdi Atash Jaam said.

Popular games draw on Iranian mythology

Such militaristic games attract funding from conservative elements in the country. However, by many accounts, the most popular video games in Iran draw on the country’s rich history and culture rather than its contemporary international posturing.

For example, the popular Garshasp: The Monster Slayer, is drawn from Persian mythology. In Garshasp, released in 2010, the mythical hero with a hand blade fights in a series of epic battles against the evil Deevs who are trying to create an empire.

The game, created at a cost of $400,000 has sold more than 300,000 copies domestically.

A highly acclaimed 2014 release, Parvaneh: Legacy of the Light’s Guardians, features indigenous Iranian culture and promotes an Islamic lifestyle. It sold 85,000 copies in its initial release.

Most gamers are under 24

Iran video gamesClearly, there is an appetite for video games in Iran, especially among young people who make up such a large share of the total population. A survey by Techcrunch found that 67 percent of video gamers on mobile devices were under 24 and 80 percent were unmarried. Two-thirds play mobile games several times a day with the highest interest in action and strategy games followed by sports, racing and puzzles.

Since video game production began in Iran almost a decade ago, nearly 100 game studios have been established.

However, international sanctions have hurt Iran’s fledgling video gaming industry.

Developers have been unable to license their work and have limited ability to market it internationally.

Pirated games undermine domestic developers

While their games are relatively inexpensive, less than $10, the Iranian developers are often undercut by pirated versions of Western-produced games that have better production values yet cost only a few dollars.

When the prices are similar for one product developed by dozens of people at a cost of millions of dollars while another is developed at much lower cost by a small Iranian studio, “this makes for unfair competition,” said Mehrdad Ashtiani, production deputy at Iran Computer and Video Games Foundation.

Foundation provides funding and support

The foundation was established in 2007 with a gold of fostering the video game industry by providing funds and helping developers navigate government censorship restrictions.

Games such as Garshasp might not have been made but for foundation assistance.

The foundation also established a system for rating content and age appropriateness of digital content, including video games.

In January, the Iranian video game industry got some good news. United States and European officials lifted some of the harsher economic sanctions, which should open Iran to more investment from technology companies and video game publishers.

Read more

African Super Sunday: 5 votes in 5 countries

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

March 20th marked a large shift in African politics, as 5 countries on the continent voted on key issues.

Citizens of Benin, Niger, Cape Verde, Zanzibar, Senegal, and The Republic of Congo all had the chance to head to the polls last weekend. While some results were as expected, some showed progress towards improved electoral processes.

In Benin, a presidential run-off took place between Prime Minister Lionel Zinsou, and businessman Patrice Talon. Both were seeking to replace the incumbent President Yayi Boni, whose second term in office ends on April 6th. Events progressed well from the first round of the campaign in which there were 33 candidates. Benin has shown great progress in electoral process, and was the first country in sub-Saharan African to transition to a multi-party democracy. After the polls, Lionel Zinsou conceded defeat to Patrice Talon. The victory of the businessman shows a push for change in how the people of Benin wish to be governed.

Denis Sassou Nguesso was elected to his third term in office

In the Republic of Congo, Presidential elections were held under the new constitution which removed both age and term limits for those serving as President. Before the polls, opposition parties had denounced the lack of transparency in the electoral process. Adding to the irregularity, the country experienced a government-initiated communications blackout during the voting. The official statement was in order to avoid illegal leaking of election results. As predicted, the incumbent President Denis Sassou Nguesso was elected to his third term in office. President Nguesso has already served in office for over 30 years.

In Niger, a Presidential run-off took place between the incumbent President Mahamadou Issoufou, and Hama Amadou. Tensions were high before the run-off with the opposition party rejecting the results before the election was even held, and the COPA withdrawing from the campaign stating a lack of transparency in the process. Hama Amadou was arrested earlier in the year on charges of baby trafficking, and had been flown to France recently for medical treatment as it was stated that his health rapidly deteriorated while in prison. President Mahamadou took more than 92 percent of the vote.

Zanzibar was set for a re-run of its elections which were held in October 2015. At the time the Civic United Front claimed victory even before the results had come out, however the election was invalidated by Jecha Salim Jecha (the president of the local Electoral Commission) due to what was claimed as massive fraud. The Civic United Front however, claimed that this was a ploy by Chama Cha Mapinduzi to deny it victory. For these reasons, the main opposition party decided to boycott the elections only 2 days before the polls were held. The incumbent President Ali Mohamed Shein of Chama Cha Mapinduzi was re-elected.

Senegal: Yes or No referendum

In Senegal, voters were called to vote on a yes or no referendum. Among the issues the referendum addressed was reducing the term limit for presidential office from seven years to five years. This was seen as a bold move by President Macky Sall, as other African leaders seek to find ways to extend their term limits. The referendum would also afford official recognition to the opposition leader in the constitution, local councils would be give more power, and new rights would be afforded to citizens regarding the environment and land ownership.

Meanwhile on Cape Verde, parliamentary elections were held which saw the Movement for Democracy win an absolute majority. They will replace the African Party for the Independence of Cape Verde which had been in the majority for over 15 years.

Read more

Development bank: ‘High 5’s’ will drive African economic growth

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

Powering and industrializing the economy of Africa are among key priorities outlined in March by the new head of the African Development Bank.

Akinwumi Adesina, president of the bank since September, told about 500 business leaders from 43 countries at the fourth Africa CEO Forum in Abidjan that the continent will rely on private investment as it seeks to advance on “the value chain” from being a source of raw materials to becoming a manufacturing economy.

Adesina said the African Development Bank will focus on five key priorities as it seeks to improve the business climate and quality of life on the continent.

The priorities, which Adesina dubbed the “High 5’s,” are:

  1. Light up and power Africa

This priority is critical to the development of a manufacturing economy, the bank president said.

He noted that more than 645 million Africans do not electricity while energy bottlenecks power shortages cost Africa about two to four percent of gross national product each year, undermining economic growth and job creation.

He said the African Development Bank has launched a program New Deal on Energy for Africa that has investment commitments of $12 billion over the next five years, in addition to public and private partnerships worth about $50 billion.

  1. Feed Africa

With two-thirds of the world’s uncultivated arable land and more than 60 percent of its population involved in agriculture, Africa could become a powerhouse in providing food to the world, Adesina said.

Nevertheless, many on the continent suffer from malnutrition and African nations are forced to import food at a high cost, some $35 billion annually.

Adesina said African leaders must change their strategy from thinking about agriculture as a way of managing poverty to treating it like a business to generate wealth and diversify economies.

  1. Industrialize Africa

In sub-Saharan Africa, manufacturing accounts for only 11 percent of economic output on the continent and less than two percent of global output.

However, without infrastructure, power, and a supportive business environment, Africa will continue to import manufactured goods that might otherwise be made in Africa, Adesina said.

  1. Integrate Africa

Adesina said the fragmentation of African economies is holding back progress and integration will be critical to driving industrialization.

He called on African governments to implement regional and inter-regional agreements that would remove barriers to integration.

He said the African Development Bank would continue to invest in regional infrastructure and work with regional partners to facilitate integration of trade and transport.

  1. Improve the quality of life for Africans

Adesina said the bank will accelerate its investments in vocational training and education to help drive economic development.

The centerpiece of this effort is the “Jobs for Africa’s Youth Initiative,” a partnership of the development bank, the United Nations Economic Commission for Africa and the African Union.

Adesina said the goal of the initiative goal is to reach 50 million young people and create 25 million jobs in the coming decade, to enable young Africans to “realize their economic potential through business incubation and financing.”

Private sector critical to growth

He said the private sector, which accounts for 90 percent of African jobs, must play a major role in the youth education initiative and in the overall development of the economy.

The private sector, he said, accounts for 90 percent of employment on the continent, 80 percent of production and two-third of investments.

He said the bank’s effort to support private enterprise includes investment in private projects. In 2015, the development bank approved private sector projects at a cost of $2.4 million out of a total of $9 billion.

Adesina said the continent is poised for growth in spite of challenges to the global economy and, in Africa, declines in commodity prices and in demand from China.

He said economic growth on the continent will outpace global growth. The global economy is projected to grow by three percent in 2016 while the predicted growth rate for Africa is 4.4 percent this year and five percent in 2017, he said.

Read more

The African CEO Forum 2016

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

africa-ceo-forum-2016

The first African CEO Forum Awards held within the continent sees new awards and renewed progress.

The 2016 African CEO Forum and its accompanying award ceremony was a benchmark event in the forum’s 4 year history. Taking place from March 21st to the 22nd, this was the first time the business networking event was held within Africa. The Ivory Coast was chosen to play host to the annual conference of African CEO’s, bankers and developers that aims to continue the continent’s economic growth and innovation.

“We concluded deals worth $30 million”.

Since the inaugural forum of 2012, investors and business figures from across Africa have used the event to form new commercial opportunities, broker deals and establish a stronger network of communication and development among the men and women who are steering African development through the 21st Century.

Official figures indicate that since the first edition of the CEO forum, 70% of all participants have come away having identified new business ventures or actually concluded new deals, with the likes of Felix Bipko of the African Guarantee Fund, finalizing deals worth $30 million in only the first year of the forum’s existence.

The Ivory Coast – progress in the face of adversity

After the third edition of the African CEO Forum broke all attendance records, the 2016 conference aimed to not only break old records but break new ground in bringing the forum to African soil for the first time. The Ivory Coast seemed an obvious choice given that it is seen as the driving force behind the integration of the 15 nations that make up the Economic Community of West African States (ECOWAS), an area that has had the highest economic growth in Africa over the past 5 years.

African CEO Forum founder and President, Amir Ben Yahmed explained the choice of the host nation further:

“[W]e have chosen a country and a region that is showing clear signs of robust economic development. The fact that the African Development Bank is based there …was a further contributing factor.”

However, when terrorist attacks shook the nation on March 14th, the event seemed in jeopardy. But a strong united stance from both the organizers and key political figures within Africa ensured that progress and development continued to triumph over individuals trying to use fear to derail stability.

“We continue our mission.”  – Amir Ben Yahmed

A resolute stance was immediately taken in the wake of the attacks as the organizers made it clear that the event would go ahead and a strong message of solidarity was sent when the respective presidents of The Ivory Coast and Ghana, Alassane Ouattara and Dramani Mahama, confirmed their attendance.

With over 800 participants from across Africa, the forum was a triumph that continues to grow and open up new horizons for African commerce and trade.

The 2016 event added to the existing structure of debates and meetings by introducing new “Deal Rooms” that allow smaller meetings between investors and company owners to forge new links, exchange ideas on fostering growth of their businesses and to put pen to paper on new deals.

“Our future is bright and belongs to us all” – Oba Otudeko.

As always, the forum hosted its annual award ceremony in which a panel of carefully selected figures within African business select the winners of various awards from African CEO of the year to Private Equity Investor of the Year. This year also saw a new award for Young CEO of the year.

Oba Otudeko of the Honeywell Group won CEO of the Year and accepted the award from one of the forum’s major sponsors, Jay Ireland, CEO of General Electric Africa.

Sebastien Kadio-Morokro of Petro-Ivoire was awarded the maiden Young CEO of the Year by Akinwumi Ayodeji Adesina, President of the African Development Bank.

Dangote Group won the African Company of the Year and was presented with their trophy by African CEO Forum President Amir Ben Yahmed.

BGFI Bank was awarded with the African Bank of the Year accolade by Adama Koné, the Ivorian Minister of Economy and Finance.

Emerging Capital Partners took home the prize for the Private Equity Investor of the Year, and were presented with the title by Cheikh Oumar Seydi, the regional director of the International Finance Corporation.

Heineken were rewarded with the title of International Corporation of the Year.

Read more

Cyrille Nkontchou, African business tycoon with a conscience

29 March 2016 Comments (0) Africa, Featured, Leaders

Cyrille Nkontchou

Always a firm believer in his continent, the Cameroonian businessman now is investing himself in Africa’s future.

Having recognized the potential of his continent early on, Cyrille Nkontchou was one step ahead of the rest by investing and believing in Africa. A man of the world, he lived, studied and worked across the globe before finally returning, full of knowledge and experience, to his motherland. The serial entrepreneur operates from his Sandton office in the heart of the exclusive suburb of Johannesburg. Quiet and discreet, this tycoon has already pioneered a way to bring investors to Africa. Now he wants to help educate his academic and entrepreneurial successors.

Getting started

Nkontchou spent his formative years in his country of birth, Cameroon. Leaving at the age of 13 he moved with his diplomat parents to France. A good and committed student, he studied Economics at the Paris Institute of Political Sciences before earning a place at the illustrious Harvard Business School, coming away with a Master of Business Administration (MBA) degree. His impressive education led him to work for the likes of Andersen Consulting, in their branch in the French capital and Merrill Lynch investment bank in London, where he started his career as an investment adviser for international companies interested in opportunities in Africa. Here he gained experience that would prove invaluable for his future pursuits.

In 2000, the young aspiring entrepreneur took a leap of faith, packing his bags as he set off for Johannesburg to create Liquid Africa. With many years experience it was a calculated risk but nothing could prepare him for his first failure. Hailing his primary business as a platform to access financial info on the internet proved to be unviable in Africa. It was back to the drawing board, which gave the Cameroonian businessman the opportunity to successfully re-orientate his company as an investment banking business. “Fortunately, from 2005, Africa has again become fashionable, and we had a lot of success,” said Nkontchou.

Sharing good fortune

On the back of his first venture’s triumph, the winner of the accolade “Young Global Leader in 2006” at the World Economic Forum, decided to go into business with his brother. Together in 2007, they created Enko Capital, an asset management company that deals with launching and managing investment funds for clients. Investments are made in public and private equity, and fixed income markets, mainly in the African continent. The company is still going strong, with offices in London and Johannesburg.

This hard-earned prosperity has given Nkontchou the opportunity to put something back into his continent. “In addition to the infrastructure, in particular energy, agribusiness is a promising sector in Africa,” he said. Whilst working with a pesticide company in West Africa he realized that many small producers struggled because of a lack of capital. He decided he could assist by providing pesticides to farmers on credit. Re-payment is then not required until crops have been harvested and sold. Already more than 50,000 small producers have benefitted from Nkontchou’s lending scheme.

Enko Education

Enko Education

Investing in the future

After many years of hard work Nkontchou is not ready to put his feet up. Instead he is continuing to use his privileged position to focus on the social issues that surround him. In 2013 he set up Enko Eduction: private schools that aim to assist the youth of Africa’s increasing middle class. Having benefited from a good education in France, he feels it is hugely important to bring this same opportunity to the African entrepreneurs of tomorrow. He believes this can best be done through the private sector, as he expressed, “Africa will come to work when governments will rely more on the private sector which is more effective in management.”

Enko Education has a goal, to welcome 20,000 students across a network of 45 schools, in 30 countries in 5 years. Cyrille Nkontchou also has a goal, to put back what he can into his continent and to help pave the way for all its bright future graduates. He has a legacy that he wants to share, that Africa is worth investing in. “You know, at the beginning of a career one thinks only to accumulate the most wealth possible but, from a certain age, we think more to give and leave an intangible heritage,” said the conscientious businessman.

Read more

Russia and Morocco Strengthen Ties

26 March 2016 Comments (0) Featured, Middle East, Politics

morocco russia

New strategic agreements between Morocco and Russia

Russia and Morocco are known for their mutual respect concerning diplomacy and economic issues since the late 18th century. The Sultan of Morocco, Mohammed III, and Russian Empress Catherine II exchanged letters in areas of mutual interest, including establishment of commercial ties, and allowing Russian boats to have access to Moroccan shores for fishing. Mohammed III then invited a Russian representative to come to Morocco for further talks.

The relationship between Russia and Morocco underwent an evolution in the 19th century, and Russia established a Consulate in Tangiers in 1897. The Russian diplomat Vasily Romanovich Bakherakht arrived in Morocco in May of 1898. Morocco became the first Arab country that Russia established diplomatic ties with, and remained so until the October Revolution.

In November of 1955, the Kingdom of Morocco became an independent state, and the Soviet Union recognized its independence in July of 1956. Diplomatic ties were re-established in September of 1961. Since that time, the connection between Russia and Morocco has been robust, in spite of many economic and political changes that both countries have experienced in the 20th and 21st centuries.

An increasingly strategic alliance between Morocco and Russia

In the past five to ten years, there have been significant indications leading to increasingly close ties and cooperation between Russia and the Kingdom of Morocco. Their international involvement with the global community has experienced uncertainty echoed in circumstances and events affecting both countries. Economic sanctions placed on Russia and the evolution of debate over the Moroccan Sahara are other factors explaining the increasingly strategic alliance between Morocco and Russia.

Morocco’s stronger inclinations towards relations with Russia have often been pointed out by government officials, either through direct meetings or official statements. In several speeches, King Mohamed VI has officially declared the intentions of Morocco to strengthen cooperation with Russia in trade, tourism, and investment. On July 30, 2014, the 15th anniversary of Mohamed VI’s coronation, the Monarch announced his country’s commitment to advancing stronger bonds with Russia. King Mohamed VI

On Tuesday, March 15th, 2016, King Mohamed VI met with Vladimir Putin at the Kremlin and signed six binding agreements and several memorandums, framework agreements, and protocols that deepen ties between the two countries.

The agreements cover:

– Extradition between Morocco and Russia.

– Air services between the countries.

– Cooperation covering environmental protections and use of natural resources.

– Cooperation on sea fisheries.

– The promotion and reciprocal protection of investments.

– A mutual protection of classified information on military and military-technical matters.

– A Moroccan-Russian declaration on the fight against international terrorism.

The memorandums, framework agreements, and protocols cover an understanding on:

–  Cooperation in the field of energy.

–  Cooperation in geological research and exploration of the subsoil.

–  An understanding between the National Health Security Office of foodstuffs (ONSSA) of the Ministry of Agriculture and Maritime Fishing (Morocco) and the Federal Agency for Veterinary and Phytosanitary Surveillance (Federation Russia) plant health of plants and plant products.

– Joint action programs for 2016-2018 in the field of tourism.

– Cooperation between the Ministry of Endowments and Islamic Affairs of the Kingdom of Morocco and the Central Religious Organization (Shura Council of Muftis of Russia).

– A framework partnership agreement with the National Foundation of Museums and the Museums of the Moscow Kremlin.

– And a protocol for the exchange of information on moving goods and vehicles between Morocco and Russia.

The two countries also stressed the need to strengthen global cooperation combating international terrorism and violent extremism.

The two country’s Declaration on their deeper strategic partnership also called for strengthening the central role of the United Nations in its fight against global terrorism, transnational organized crime, criminal corruption, and other challenges.

Read more

Laughing Cow goes to Africa

25 March 2016 Comments (0) Africa, Business, Featured

laughing cow africa

Bel Group, the third largest cheese-maker in the world increases sales and production on the continent, including a new pre-fabricated factory in Ivory Coast to produce The Laughing Cow cheese.

Bel Group, the world’s third largest cheese-maker and producer of popular The Laughing Cow cheese (La Vache qui Rit), launched a miniaturized production operation in Ivory Coast in an innovative pre-fabricated factory.

The French cheese-maker, which also has production plants in Morocco and Algeria, has found a growing market in Africa, selling more than two billion single-serving portions of Laughing Cow cheese in 2015.

The new plant in Abidjan, which began production in December 2015, was designed, assembled and tested at Bel Group’s research center in Vendome, France before it was shipped as a kit to the Ivory Coast in 14 containers. The factory was constructed “like a Lego,” said Bel CEO Antoine Fievet.

Company miniaturizes production process

Before designing the plant, Bel Group spent three years figuring out how to miniaturize its production process so that it could prefabricate plants as it seeks to grow its local operations in key markets where import processes are expensive or cumbersome.

The Abidjan plant, located in the industrial area of Yopougon, will produce 100,000 portions of cheese daily for sale in Ivory Coast, Bel said. The 4,200-square-meter plant, which cost $3.4 million, can manufacture 20 million cheese servings annually.

Bel patents factory design

“This unique plant once again demonstrates the expertise of Bel in miniaturization and the innovation capacity of our industrial teams,” Hubert Mayet, Bel director general of industrial operations and technology, research and innovation, said.

Mayet said the plant employed 12 people with an expansion to 20 planned for 2016.

Bel will import raw material for producing cheese, Bel said. “If success is to go, we can easily increase the size of the plant and will launch other products,” Fievet said.

Bell called the pre-fabricated factory “unprecedented in the cheese industry. Bel, which has patented the concept out of fear that competitors might copy it, said pre-fabricated factories could soon be deployed in other key market locations.

Plants in Morocco, Algeria

In addition to the new plant in Ivory Coast, Bel employs a total of 3,500 people in factories in North Africa and Egypt. Bel Group also has operations in Turkey and Iran, and the company operated in Syria until civil war broke out.

In Morocco, Bel cheese is the market leader, selling brands including The Laughing Cow, Kiri and the Children.

The company in August 2015 acquired a nearly 70 percent stake in one of Morocco’s largest dairies, Salfilait, which processes and sells fresh milk and dairy products under the brand name Jibal.

Bel Group CEO Antoine Fievet said “Bel is proud of its success in Morocco built with the help of historical local partners. The group welcomes this new partnership with renowned a Moroccan industry and responds fully to its strategic development goal.” He called the two companies “close cousins.”

Tangier plant launched in 1970s

Bel has operated in Morocco since the 1970s with a plant in Tangiers that employs about 1,500 people.

In Algeria, Bel employs about 1,000 people at a production facility in Algiers. It established the operation Bel Algeria operation in 2001.

Bel is the third largest cheese-maker in the word after Lactalis and Kraft.

Founded in 1865 in France, Bel, now headquartered in Paris, has 28 production plants worldwide and distributes its products in 133 countries, including 44 countries in Africa.

laughing cow

400 million customers

According to Bel, 400 million consumers globally partake of its cheeses each year and 10 million portions are consumed each day. In addition to The Laughing Cow, major brands include Kiri, Mini Babybel, Boursin and Leerdammer.

Bell also launched operations in the United States, opening a plant in Brookings, South Dakota with capacity to produce 20,000 tons of cheese a year in order to meet strong U.S. demand for Mini Babybel cheese. Bel Groups sales in the United States increased by 40 percent between 2013 and 2015.

World-wide, the company reported sales of nearly $4 billion in 2014, an increase of more than 20 percent from the year before.

In 2015, Bel reported a revenue increase of nearly 6 percent to nearly $4.2 billion.

International markets accounted for much of that group with increases of 29 percent in the Americas and Asia. Net income increased by 50 percent to $205 million.

Large share of company growth in Africa

Bel said about 63 percent of the company’s growth in volume came from Africa in 2015, which saw an increase in sales of 8 percent on the African continent, generating $475 million in revenue.

The company has operated in Africa for more than 50 years and sees the continent as a further growth area for sales.

”Bel is already a leader in Africa, but the continent still offers numerous untouched markets worth exploring,” the company said.

Read more

Ojay Greene, helping the land bear fruit for those in need

24 March 2016 Comments (0) Africa, Featured, Leaders

ojay greene

Ojay Greene is a business seeking to improve lives in East Africa by working with smallholder farmers.

With consumer consciousness being on the rise, demand is high for products to be sourced locally, ethically and sustainably. The food industry in particular is noticing a trend towards a more aware buyer and while popularity may make some companies jump on the bandwagon, one has set a precedent for genuine philanthropic and ecological concern. Only two years in the running and already winning big investors, Ojay Greene is going for it full-heartedly and making changes for the better.

The brainchild of Kenyan born Yvette Ondachi, the agribusiness seeks to address the key problem that faces small-scale farmers in Kenya, the inability to contend with their larger counterparts. At present a mere 5% of the country’s fruit and vegetable suppliers hold the monopoly on supermarkets, providing them with 80% of their produce. Rural farmers have little chance to compete without the support and knowledge of a company like Ojay Greene, which is creating inroads for them to sell to the big buyers.

At the roots

A small enterprise themselves, the business is run mainly by a dedicated team of four based in the country’s capital Nairobi. Headed by founder and managing director Ondachi who set up Ojay Greene in March, 2014 the venture has quickly acquired a solid client base. Currently working with over 200 smallholder farmers they connect the rural producers in contracted terms with the likes of Naivas Supermarket and the Fairmont Hotels and Resorts.

To optimize the impact of their business model and share their philosophy and knowledge, Ojay Greene offers a range of services but the area in which they excel and have gained most success is food production. Concerned with enhancing small, rural agriculturists, they work alongside the farmers, offering solutions, training and providing market links to long-standing clients in order to help each one reach full potential.

“If we have professionals with a sense of justice and strong sense of determination, they will join the entrepreneurs in trying to shape our society,” said founder Yvette Ondachi.

Lady with the “greene” fingers

Yvette Ondachi

Yvette Ondachi

The lady behind it all, with experience both academic and vocational, Yvette Ondachi not only has a vision, she also has the means to provide all the services her company supplies. After studying Biochemistry & Chemistry at the University of Nairobi, the young entrepreneur worked for 15 years in pharmaceutical sales and marketing. After traveling all over East Africa, what struck her most was the great divide between rich and poor.

Ondachi’s decision to step away from a lucrative and stable career, to embark on a risky but now highly successful entrepreneurial adventure, was fueled by the desire to bridge this divide and to make a change to the poverty levels in her country. Despite now having a burgeoning business model everyday still remains a challenge. “Entrepreneurship is definitely not a walk in the park especially because the solutions we are giving smallholder farmers have to do with behavior change,” Ondachi acknowledges.

Key to the future

On the 24th of July, 2015, the company won the Pitch for Impact 100k competition, receiving an investment of $100,000 from Steve Case, founder of AOL. Having already won a big investment and having gained partnerships from leading supermarket chains, it is clear that not only those involved see great potential. “Ojay Greene represents the promise that Africa is truly open for business,” said Steve Case.

It is the hoped that smallholder farmers will continue to embrace the changes in return for a more profitable future. Already the company has increased the income of more than 30 growers by up to 40% and improved the lives of many. Ondachi and her team are intent on extending their invaluable work further, welcoming all who wish to participate into the Ojay Greene care. However, they remain realistic. Change doesn’t happen overnight but little by little, but the incorporation of new methods and the creation of new solid partnerships between rural and urban are starting to bear fruit.

Read more

Japan offers African development aid to counter rival China

23 March 2016 Comments (0) Africa, Business, Featured

Japan Africa

Japan plans to support 60 projects in Africa as preparations get under way for the sixth Tokyo International Conference on African Development in Kenya in August.

Japan plans to provide development aid for 60 projects in Africa as it seeks to take part in the economic growth of the continent while countering the increasing presence of China.

The Japanese commitment is expected to be announced at the Tokyo International Conference on African Development in Nairobi, Kenya in August. The conference is sponsored by Japan, the United Nations and the African Union.

The total dollar amount of the assistance has not been determined. However, the Japanese aid will focus primarily on infrastructure development in the area around Mombasa port in Kenya, around Nacala port in northern Mozambique, and developments in Ivory Coast and surrounding West African countries.

In addition to port infrastructure and roadwork, the projects include development of an urban transportation network in Nairobi and development of natural gas extraction capabilities in Mozambique.

Program will distribute testing equipment

In Zambia, the Japanese will fund a program to distribute medical testing equipment in the wake of the Ebola outbreak. A student exchange program and a microloan project also are under discussion.

Japan has a history of significant aid and investment in Africa and has been the largest Asian source of investment in the continent.

Japanese development assistance to Africa nearly doubled from $1 billion in 2007 to USD 1.8 billion in 2012. In the private sector, Japanese companies accounted for $3.5 billion in 2014, more than 80 percent of the total private investment from Asian countries.

Japanese investors show interest in Africa

One investment expert says interest from private Japanese investors is growing.

“It is clear there is significant and increasing interest both in terms of the government and the trading houses in looking at Africa and Sub-Saharan Africa in particular. The Japanese see Africa as an important and inevitable market and, as with other emerging markets, it is somewhere that they need to be,” said Andrew Skipper of the London law firm Hogan Lovells.

The Japanese government has encouraged and attempted to facilitate private Japanese investment in Africa. For example, during his 2014 visit to Africa, Japanese Prime Minister Shinzo Abe was accompanied by trade delegations from his country and pushed the idea of more Japanese private investment in the continent.

At a Japan-African Ministerial Meeting for Resources Development in Tokyo in May,

Yoichi Miyazawa, the Minister of Economy, Trade and Industry, said the government wanted to take trade with African states “to a new stage.” A government statement added: “Japan aims to expand opportunities to bring about a mid-to-long term stable supply of mineral resources from Africa.”

Competition with China

The meeting also brought into focus the competition among investors from different nations. Martin Kabwelulu Lablio, mining minister of the Democratic Republic of Congo, told attendees that China had committed $6 billion in investment in mining and infrastructure. Lablio encouraged Japanese investors to follow suit. “We want Japan to surpass this number,” he said.

As it seeks to raise its profile and its influence in the region, China has stepped up its investment in the continent, mostly through loans from Chinese banks rather than direct aid.

With its need for minerals and to gain footholds in strategic locations for its “one belt, one road” policy of creating trade routes to the West, China has issued a string of announcements about large investments on the continent.

For example, China has announced plans to build a naval base in the Horn of Africa nation of Djibouti. Other plans, with a price tag of $12.4 billion, include expansion of port facilities, two new airports, as well as a $4 billion rail link with Ethiopia, Djibouti’s land-locked neighbor.

Chinese bank pledges funds

According to one report, China heads the list of state-run development financiers, with the Export-Import Bank of China pledging $1 trillion in the next decade. Chinese institutions are the largest source of funds for infrastructure in Africa, accounting for $13.4 billion in 2013.

In December 2015, China pledged investment of $60 billion in Africa over three years, with most of it in the form of loans or export credits. However, China’s investment in Africa also declined by 40 percent last year as the Asian nation’s economy slowed.

Analysts said the change in China’s investment also might reflect a decrease in the nation’s need for minerals from Africa.

China is Africa’s largest trading partner. Trade both ways totaled $220 billion in 2015, with China primarily receiving minerals from Africa in exchange for manufactured goods.

Conference first in Africa

Japan seeks to rival the Chinese with increased investment in the continent.

The sixth Tokyo International conference is the first to be held in Africa. Previously staged in Japan every five years since 1993, but will now be held every three years and the Africans have been encouraged to take ownership of the process.

Japanese Prime Minister Shinzo Abe is expected to announce the 60 aid projects during the Nairobi conference Aug. 27 and 28.

The Japan-Africa partnership is not without friction. In 2013, Japan announced financial assistance of $32 billion but African officials note that so far only about 20 percent has been disbursed. The Japanese, meanwhile, want to see appropriate technology and training in place before they commit more funds.

Read more