CEO Business Africa March 2022

DR. DAVID KIOS KAGRC CEO ROLLS UP HIS SLEEVES TO BOOST LIVESTOCK PRODUCTIVITY IN KENYA & REGION CHARI.MA GOKADA SAKENG DATA CENTRES: DEMAND FOR DIGITAL INFRASTRUCTURE DRIVES UP INVESTMENTS IN AFRICA’S DATA CENTERS COUNTRY FOCUS: TANZANIA EMERGING BUSINESS AND HOSPITALITY GIANT IN AFRICA DP WORLD: POWERING AFRICAN TRADE BY INVESTING IN PORTS AND LOGISTICS INFRASTRUCTURE

WWW.CEOBUSINESSAFRICA.COM

THE LIST: TOP 50

WOMEN SHAPING AFRICA IN 2022

YEAR 5 ISSUE 1. NO. 6

Afmass

y outh SUMMIT

JUNE 22-24, 2022

Sarit Expo Centre, Nairobi, Kenya CO-LOCATED WITH

AFRICA

FOOD SAFETY

&QUALITY SUMMIT

THE FORUM FOR BUILDING CAPACITY & NETWORKS FOR STUDENTS, YOUNG PROFESSIONALS & STARTUP ENTREPRENEURS IN AFRICA'S FOOD INDUSTRY

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$149

$99/

Person

Regular Delegate Rate

$30/

Person

Youth Delegate Rate

$0/

Person

Virtual Delegate Rate

AGENDA ISSUES Personal Growth & Development

Food Innovation & Market Trends

Career Opportunities

REGISTER:

Entrepreneurship

Sustainability & Community Impact

www.afmass.com/nextgen

HealthCare AFRICA

SPICE UP YOUR BRAND IN AFRICA.

ADVERTISE IN THE MAGAZINE READ BY KEY DECISION MAKERS IN AFRICA’S HEALTHCARE, PHARMA & BIOTECH INDUSTRY Distributed to several Eastern, Southern and Central African countries and available in digital format, HealthCare Africa is the leading publication that will make your brand stand out in Africa and beyond.

www.healthcareafrica.info

CONTENTS -MARCH/APRIL 2022 | YEAR 5 ISSUE 1. NO. 6

4 6

17

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CEO BUSINESS AFRICA

MARCH 2022

EVENTS CALENDAR EDITORIAL

8

EXECUTIVE INTERVIEW: MALVIN CHIWANGA

22

ISMAEL BELKHAYAT: CEO, CHARI.MA MOROCCO

Daring to take on energy industry titans in Southern Africa

Leading chari.ma to digitize and provide credit to informal retail stores in Morocco WWW.CEOBUSINESSAFRICA.COM

28

NIKHIL GOEL: CEO, GOKADA, NIGERIA Accelerating Gokada’s growth projections in Nigeria

33

THE LIST: TOP 50 WOMEN SHAPING BUSINESS IN AFRICA

42

LEOPOLD MALAN

Steering Sakeng Emporium to leverage technology to drive economic inclusivity in South Africa

WWW.CEOBUSINESSAFRICA.COM

48 COUNTRY FOCUS: TANZANIA Emerging business and hospitality giant in Africa

57

MOBILITY AND SUPPLY CHAIN AFRICA: DP WORLD

61

DIGITAL TECH AFRICA: DATA CENTRES

Powering African trade through robust investments in port and logistics infrastructure

Investment boom in Africa’s Data Center space.

MARCH 2022

CEO BUSINESS AFRICA

3

EVENTS CALENDAR

AGRICULTURE & FOOD

AUTO & AUTOMOTIVE

BUILDING AND CONSTRUCTION

West Africa Automotive Show 17 - 19 May 2022 Lagos, Nigeria www.westafricaautomotive.com AUTOEXPO KENYA 26 - 28 May 2022 Nairobi, Kenya www.10times.com/autoexpo-kenya

Sipsa-Filaha & Agrofood 14 - 17 Mar 2022 Mohammadia, Algeria www.sipsa-filaha.com

Automechanika Johannesburg 07 - 10 Jun 2022 Johannesburg, South Africa

Agrofood Nigeria 22 - 24 Mar 2022 Lagos, Nigeria www.agrofood-nigeria.com

www.automechanika.za.messefrankfurt.com

Lagos Motor Fair 28 Jun - 03 Jul 2021 Lagos, Nigeria www.lagosmotorfair.com

NAMPO Harvest Day 17 - 20 May 2022 Bothaville, South Africa

Auto Expo Ethiopia 07 - 09 Jul 2022 Addis Ababa, Ethiopia www.expogr.com/ethiopia/autoexpo

www.grainsa.co.za Watrex Expo 15 - 17 May 2022 Cairo, Egypt www.waterxexpo.com

BANKING AND FINANCE

International Training on Monitoring and Evaluation for Development Results 04 - 15 Apr 2022 Nairobi, Kenya www.imainternational.com Lagos Island International Education Fair 29 Apr 2022 Lagos, Nigeria www.educationfair.com.ng

4

CEO BUSINESS AFRICA

International Conference On Finance, Bank & Economics 28 April 2022 Bulawayo, Zimbabwe www.icbmeconf.org North Africa Trade Finance Summit 07 - 08 Jun 2022 Cairo, Egypt www.northafricatradefinance.com African Aviation Summit Air Finance Africa Conference & Exhibition 08 - 10 Jun 2022 Johannesburg, South Africa www.africanaviationsummit.com Digital PayExpo 09 - 10 Jun 2022 Lagos, Nigeria www.payexpo.com Asset Management & Maintenance Conference & Exhibition 12 - 13 Oct 2022 Gweru, Zimbabwe www.10times.com/e101-2shh-sfr8

Fuse Conference 17 - 20 May 2022 Cape Town, South Africa www.fuseconference.net

MARCH 2022

African Construction and Totally Concrete Expo 07 - 09 Jun 2022 Johannesburg, South Africa www.africanconstructionexpo.com Ceramica West Africa 07 - 09 Jun 2022 Lagos, Nigeria www.10times.com/nigeria-buildexpo The Big 5 Construct Egypt 25 - 27 Jun 2022 Cairo, Egypt www.thebig5constructegypt.com

ELECTRIC AND ELECTRICALS

Agro - Dairy & Poultry East Africa 27 - 29 May 2022 Kampala, Uganda www.10times.com/e1zd-30g2-psf9

EDUCATION & TRAINING

East Africa Property Investment Summit 18 - 19 May 2022 Nairobi, Kenya www.eapisummit.com

Lightexpo Africa 24 - 26 Mar 2022 Dar es Salaam, Tanzania www.lightexpo.expogr.com Future Energy Africa 07 - 09 Jun 2022 Lagos, Nigeria www.10times.com/wapic TEMs AFRICA ICT Expo 14 - 15 Jun 2022 Nairobi, Kenya www.temsafrica.com SAITEX Africa 19 - 21 Jun 2022 Johannesburg, South Africa www.saitexafrica.com Lift City Expo 21 - 23 Jul 2022 Cairo, Egypt www.10times.com/liftech-expo WWW.CEOBUSINESSAFRICA.COM

ENVIRONMENTAL AND WASTE

POWER AND ENERGY

Oran, Algeria www.simem.com We Are Africa 17 - 20 May 2022 Cape Town, South Africa www.10times.com/we-are-africa International Conference on Environmental Chemistry and Engineering 28 Apr 2022 Algiers, Algeria www.10times.com/e1z4-h9gh-3zx7 Watrex Expo 15 - 17 May 2022 Cairo, Egypt www.waterxexpo.com

HOSPITALITY AND TOURISM

EgyMedica 19 - 21 May 2022 Cairo, Egypt www.egymedica.com MEDEXPO KENYA 09 - 11 Jun 2022 Nairobi, Kenya www.10times.com/medexpo-nairobi International Conference on Recent Advances in Medical and Health Sciences 14 - 15 Jun 2022 Lagos, Nigeria www.icahms.com

Southern African Coal Conference 04 - 06 May 2022 Cape Town, South Africa www.opisnet.com Nigeria Oil & Gas Conference & Exhibition 04 - 07 Jul 2022 Abuja, Nigeria www.10times.com/oil-gas-nigeria SOLAR KENYA 19 - 21 May 2022 Nairobi, Kenya www.10times.com/solar-africa

LOGISTICS & TRANSPORT TELECOMMUNICATION

East Africa Clean Expo 06 - 08 Apr 2022 Nairobi, Kenya www.10times.com/clean-expo-nairobi Hostex 26 - 28 Jun 2022 Johannesburg, South Africa www.hostex.co.za Mega Horeca Nigeria 05 - 07 Jul 2022 Lagos, Nigeria www.megahorecanigeria.com

MEDICAL & PHARMA International Conference on Medical, Biological and Pharmaceutical Sciences 28 Apr 2022 Accra, Ghana www.10times.com/e1z0-10h9-gkgh Simem 11 - 14 May 2022

WWW.CEOBUSINESSAFRICA.COM

Inventory Control and Warehouse Management Course 04 - 15 Apr 2022 Nairobi, Kenya www.fdc-k.org International Conference on Mechanical and Aerospace Systems 10 - 12 May 2022 El Shorouk, Egypt www.icmas.org World conference cities and ports 11 - 13 May 2022 Tangier, Morocco www.citiesandportsworldconference.org Nigeria International Maritime Summit 05 - 06 Jul 2022 Lagos, Nigeria www.nims.com.ng/ Autoexpo Ethiopia 07 - 09 Jul 2022 Addis Ababa, Ethiopia www.expogr.com

Zimbabwe Conference of Information and Communication Technologies 20 - 21 Apr 2022 Harare, Zimbabwe www.10times.com/e10z-zxxs-5r21 East Africa Com 10 - 11 May 2022 Nairobi, Kenya https://tmt.knect365.com BigFive Summit Cape Town 11 - 13 May 2022 Cape Town, South Africa https://bigfivedigital.org International Conference on Computing and Wireless Communication Systems 21 - 23 Jun 2022 Tangier, Morocco www.iccwcs.net Cairo Consultants Forum 22 - 23 Jun 2022 Cairo, Egypt https://10times.com/e1z2-1s3d-0xgh

MARCH 2022

CEO BUSINESS AFRICA

5

Afmass FOOD EXPO The Future of Food in Africa

www.afmass.com

AFRICA'S MOST INFLUENTIAL FOOD PRODUCTS & NEW TECHNOLOGIES EVENTS 1

AFMASS FOOD EXPO EASTERN AFRICA NOVEMBER 24-26, 2022 | NAIROBI, KENYA

www.afmass.com/ke

2

AFMASS FOOD EXPO ETHIOPIA OCTOBER 20-22, 2022 | ADDIS ABABA, ETHIOPIA

www.afmass.com/et

3

AFMASS FOOD EXPO ZAMBIA APRIL 20-21, 2023 | LUSAKA, ZAMBIA

www.afmass.com/zm

4

AFMASS FOOD EXPO GREAT LAKES AFRICA SEPTEMBER 2023 | KAMPALA, UGANDA

www.afmass.com/ug

6

CEO BUSINESS AFRICA

MARCH 2022

WWW.CEOBUSINESSAFRICA.COM

WHAT ARE ON SHOW AT AFMASS FOOD EXPOS

FOOD

INGREDIENTS EXPO AFRICA

FOOD

LOGISTICS

& TECH

EXPO AFRICA

AFMASS

FOOD MARKET

AFMASS

RENEWABLE

ENERGY

WASTE & WATER EXPO AFMASS

HEALTHY,

NATURAL

& ORGANIC FOODS EXPO

WWW.CEOBUSINESSAFRICA.COM

MARCH 2022

CEO BUSINESS AFRICA

7

EDITORIAL

Join us on our journey to transform the African narrative Year 5 Issue 1. No.6 WWW.CEOBUSINESSAFRICA.COM

FOUNDER & PUBLISHER Francis Juma EDITORIAL Jackie Muinde I Elly Akoko | Paul Ongeto ADVERTISING & SUBSCRIPTION Virginai Nyoro | Elly Akoko DESIGN & LAYOUT Clare Ngode PUBLISHED BY: FW Africa P.O. Box 1874-00621, Nairobi Kenya Tel: +254 20 8155022, +254725 343932 Email: info@fwafrica.net Company Website: www.fwafrica.net RELATED PUBLICATIONS

WWW.FOODBUSINESSAFRICA.COM

WWW.FOODSAFETYAFRICA.NET

HealthCare AFRICA

WWW.HEALTHCAREAFRICA.INFO

A

s Africa focused business magazine, we strive to bring you stories of companies transforming the business environment in the continent.

In this edition, we delve into the investments and critical role data centres play in the rapid move to fully digitalised services and capability in organisations, reflected by the rapid growth in demand over the past 18 months.

Estimated at 14% of Kenya's agricultural GDP, dairy farmers are embracing Artificial Insemination (AI) in breeding exotic cows to bridge the 40 million litres gap of milk deficits within the county. We look at one institution that is spearheading the adoption AI technology in Kenya, KAGRC. In Africa, E-Commerce is still at its infancy by global standards. In this issue, we highlight the story of Chari.ma, a Moroccan B2B e-commerce platform that is connecting small retailers in these two countries to FMCG multinationals and local manufacturers.

Gokada, a Nigerian last mile delivery, logistics and transportation platform is also featured in this edition.

As the world marks International Women’s Day, we also celebrate the Top 50 women shaping business in Africa in this issue of the magazine.

In this edition, we also bring to you the story of Sakeng, a South African mobile virtual network operator (MVNO) that was started by group of funeral parlour owners.

We have also given an in-depth

coverage of DP World, an Emirati multinational logistics company port investment in West South, East and Central Africa.

This edition of country focus takes us to the East African nation of Tanzania where we have given in-depth coverage of key sectors like Tourism, Mining, Energy and Agriculture.

Our executive interview segment features Mr. Malvin Chiwanga, the Chief Executive Officer of Matrix Petroleum, a Channel Island-based energy group focused on the distribution of petroleum, lubricants and functional fluids, chemicals, and retail convenience services through an extensive network across 7 countries in Africa and the Indian Ocean Islands.

We wish you a good read.

Francis Juma Publisher

WWW.FWAFRICA.NET

CEO Business Africa is published 6 times a year by FW Africa. Reproduction of the whole or any part of the contents without written permission from the editor is prohibited. All information is published in good faith. While care is taken to prevent inaccuracies, the publishers accept no liability for any errors or omissions or for the consequences of any action taken on the basis of information published.

8

CEO BUSINESS AFRICA

MARCH 2022

WWW.CEOBUSINESSAFRICA.COM

AFRICA

CO-LOCATED WITH

Afmass

FOOD SAFETY

y outh

& QUALITY SUMMIT

SUMMIT

www.afmass.com/nextgen

June 22-24, 2022 Nairobi, Kenya

ONSITE & VIRTUAL

CHOOSE YOUR PLAN

$149

$99/

Person

Regular Delegate Rate

$30/

Person

Youth Delegate Rate

$0/

Person

Virtual Delegate Rate

AFRICA’S NO. 1 FOOD SAFETY, QUALITY & COMPLIANCE CONFERENCE & EXPO REGISTER:

www.summit.foodsafetyafrica.net

WWW.CEOBUSINESSAFRICA.COM

MARCH 2022

CEO BUSINESS AFRICA

9

Africa Green Energy

&

Sustainability Summit

MARCH 9-10, 2023 HYBRID SUMMIT - PHYSICAL IN NAIROBI, KENYA & VIRTUAL ACROSS AFRICA & THE WORLD

DISCOVER THE FUTURE OF SUSTAINABLE BUSINESS IN AFRICA KEY TRACKS • • • • • • • • • • • • • • •

Sustainable Local Sourcing Renewable Energy Transition Environmental, Social & Governance Cleaner, Circular Economy Ethical Financing & Investing Diversity, Equity & Inclusion The Planet & Net Zero Strategies New Technologies & Digitalisation

REGISTER

10 CEO BUSINESS AFRICA

MARCH 2022

www.ceobusinessafrica.com/green WWW.CEOBUSINESSAFRICA.COM

CONFIRMED SPEAKERS

ASHISH PANDE

Managing Director & Senior Vice President, Olam Nigeria

JUSTIN ARCHER

COO East Africa & Group Head of Sustainability, Sucafina SA

ESSAM EL-MADDAH

HR & General Secretary Director, Danone Egypt & North East Africa

ROZY RANA

Managing Director, Dormans Coffee

BRETT THOMPSON

Co-Founder & CEO, Mzansi Meat

MERIJN GORIS

CEO, Holland Dairy, Ethiopia

OLUGBEMINIYI (BEMI) IDOWU

NICO ROOZEN

Honorary President, Solidaridad Network WWW.CEOBUSINESSAFRICA.COM

Managing Director, Talking Drum Communications

MARCH 2022

CEO BUSINESS AFRICA

11

MALVIN CHIWANGA: DARING TO TAKE ON ENERGY INDUSTRY TITANS IN SOUTHERN AFRICA 12 CEO BUSINESS AFRICA

MARCH 2022

WWW.CEOBUSINESSAFRICA.COM

By Elly Akoko

V

enturing into a sector dominated by deep pocketed multinationals is no mean feat. The odds are even higher when trying to break into a one such as oil that is known for its ruthless cartel style of operation. London Business School graduate Malvin Chiwanga is however not one to shy away from competition no matter how cutthroat it may be. He joined the sector in 2018 with his own company Matrix Petroleum and has managed to carve out a share for himself. In an exclusive interview with CEO Business Africa, Chiwanga opens up about what inspired him to start the venture and his plans for the future.

Give us a brief profile of yourself and tell us what inspired you to join this industry

Malvin Chiwanga graduated from the London Business School with speciality in Business and Economics. I have previously served as the Head of UnoMedical Southern Africa for ten years.

During this time, I was the highest-ranking corporate officer in charge of total management of the organisation. I was later appointed to the Board of Directors of the company based in the UK. Currently, I am the founder and CEO of Matrix Petroleum Group where I am responsible for leading the development and execution of the company’s strategies. I also serve as Chairman of Matrix Group, providing leadership to the board, and is responsible for the board’s composition and development.

I also have a vast understanding of the stock markets backed by years of experience in trading as well as research which has allowed him to set sights on listing Matrix Petroleum on the London Stock Exchange by the end of 2023.

Tell us a brief history of your organization and what gap in the market was it founded to fill and how has this changed over time?

Matrix Petroleum was initially incorporated in 2018 with the aim of supplying petroleum products in some of the Indian Ocean Islands as well as the Southern African region with specific focus on South Africa, Zimbabwe, Zambia and Namibia as well as other countries within this vicinity. This vision has grown with time with the inclusion of renewable energy, transport and logistics portfolio on the company’s core business, so far, our plan is shaping perfectly well in these markets, and we expect to continue penetrating these targeted markets.

I believe there is no substitute for hard work if one is to succeed in any career. Apart from hard work, other personal values that have contributed to my success are dedication and having a vision.

What products and services do you offer and What are the markets do you currently serve?

Our specialty is in petroleum products, and we are also into renewable energy as well as transport and logistics. On petroleum products, we are big on the wholesale of paraffin, jet A1 petrol, diesel and we are particularly able to deliver these in any part of the world. In terms of new products, we see ourselves consolidating on renewable energy in the near to medium term future.

Currently we are visible in the Indian Ocean Islands, Southern Africa (Zimbabwe, South African and Zambia as well as Eswatini).

What separates your company from its peers in the industry?

As a predominantly new entrant into the petroleum industry, one must understand that this is a highly complex industry with cartels

What inspired you to join this industry and what are some of the personal values that have enabled you to succeed in your career?

I am a leader who is driven by seeing others grow and I never shy away from competition, particularly when it brings our dream closer to where we want to be. I joined this industry because am particularly inspired by starting something from scratch and seeing it grow hence the idea of venturing into business and give it the due attention for growth. I believe there is no substitute for hard work if one is to succeed in any career. Apart from hard work, other personal values that have contributed to my success are dedication and having a vision.

WWW.CEOBUSINESSAFRICA.COM

MARCH 2022

CEO BUSINESS AFRICA

13

EXECUTIVE INTERVIEW: MALVIN CHIWANGA

Matrix Petroleum has grown to a company with an annual turnover of over US$150 million and employees that number around 30,000 (both direct and indirect workers) in all the markets we operate in.

which make it difficult to penetrate. What has made us different is our ability to deliver our products within the agreed time spans, being able to drive our vision with a competent complement of human resource and an ability to work in any part of the world. We have also been able to grow tremendously well under the circumstances bearing in mind that we are growing in the midst of a pandemic.

Give us a brief about your company’s key numbers and some of the most important milestones that it has achieved so far

Matrix Petroleum has grown to a company with an annual turnover of over US$150 million and employees that number around 30,000 (both direct and indirect workers) in all the market we operate in.

Our important milestone would be being able to register the company in the UK in the past four years and managing to spread our tentacles over a vast market of about 12 countries has been very rewarding. As we stand, we are in negotiations with other players for expansion in parts of the SADC.

Sustainability is a big concern for the energy sector. How is your company adopting to meet the rising need for more sustainable business operations and a better, cleaner planet?

There is a lot of talk around cleaner energy sources as well as environmentally friendly operations. While this has been seen as a threat to the petroleum industry, we believe we have to continuously find ways of settling for an acceptable level of emission from our products.

We are also fast moving into his renewable space to stay afloat.

What have been some of the setbacks you have faced in the past, but which made you to change your strategy or focus, to get better at what you do?

Not so much of setbacks as of yet. We are primarily focused on growing both the brand and the market space. Perhaps it is important to notice that like anyone else we are affected by both the downward and upward movement of petrol and petroleum prices worldwide. We are also not immune to other ravaging implications of COVID-19 that is affecting everyone.

What are some of the opportunities and challenges in your industry and how do you intend to take advantage of them to enable your business to thrive in your market?

We have quite a number of the opportunities in the emerging markets and these can easily be taken advantage of though conjuring up partnership with other players in these market.

Our focus is to partner with state owned oil firms in these countries so we can coin our footprint with time. CBA

14 CEO BUSINESS AFRICA

MARCH 2022

WWW.CEOBUSINESSAFRICA.COM

Afmass

OCTOBER 19-21 2022 ADDIS ABABA ETHIOPIA

FOOD EXPO

ETHIOPIA EDITION

DISCOVER ETHIOPIA’S FOOD INDUSTRY Join us on the journey of discovery of Ethiopia, as we host the first regular, pure-play food industry trade expo and conference in Ethiopia - AFMASS Food Expo Ethiopia.

Africa’s fastest growing economy, Ethiopia’s food, dairy, beverage, milling and other sectors have seen tremendous growth over the last 10 years - and more is on the way as Ethiopia seeks to boost local processing of food products and increase regional and global markets for its vast produce.

Sign up today to Sponsor, Exhibit, Attend or Speak at AFMASS Food Expo Ethiopia.

FOOD

LOGISTICS

& TECH

EXPO AFRICA

www.afmass.com/et/ WWW.CEOBUSINESSAFRICA.COM

MARCH 2022

CEO BUSINESS AFRICA

15

THE BIGGEST HEALTHCARE & PHARMA EXPO IN EASTERN AFRICA

AFRICA

HEALTH

&EXPO WELLNESS

www.expo.healthcareafrica.info

Health &

ss Exhibitions are and seminars that g the consumer eral well being. to ensure the

alth & Wellness

erage processors, act directly with ng the consumers s of theirNutrition, products enya iving; xhibitions health, personal eract directly with

Health &

rition, Health & Wellness Exhibitions are l,kend healthcare and expos and seminars that consumer face to face creating and improving the consumer management, healthy living and general well being. t, wellness goals held over the weekend to ensure the arting the right he entire family.

of industry eeract Kenya withNutrition, Health & Wellness

November 17-19, 2022 Sarit Expo Centre, Nairobi, Kenya

WHAT’S ON SHOW AT THE EVENT AFRICA

HOSPITALS &CARE EXPO General & Specialty Hospitals • Medical Clinics & Consultancies • Ambulance & Emergency Services • Care & Rehabilitation Centres • Mental Health Care Centres • Wellness Centres • Food Supplements & Nutraceuticals Diet and Weight Loss Products • Baby Health & Food Products • Natural, Organic and Nutritious Foods

AFRICA

NUTRITION HEALTH &

WELLNESS EXPO Baby and Mother Care Products and Services • Food Supplements • Vitamins And Minerals • Botanicals and Tinctures • Personal Care & Beauty Products • Personal Wellness Services • Exercise and Fitness Products and Services • Cosmetic and Reconstructive Surgery • Diet and Weight Loss Products

AFRICA

PHARMA EXPO

Pharma Manufacturing & Packaging Equipment & Solutions • Supply Chain and Storage Solutions • Construction, Plant and Infrastructure Installations • Mobility, Software and Logistics Solutions • Utilities and Support Services and Equipment • Refrigeration, Hvac Systems • Renewable Energy & Sustainability Solutions

AFRICA

MEDICAL

DEVICES EXPO Electrical Medical Equipment • Patient Monitoring Equipment • Surgical Equipment • Storage & Transport Solutions • Patient Mobility & Support Solutions • Acute Care and Procedural Equipment • Mobility, Software and Logistics Solutions to Hospitals etc • Consumables for use in Medical Facilities

AFRICA HEALTH

SUPPLY CHAIN &

LOGISTICS EXPO Pharmacy Chains and Chemists • Human Pharmaceutical Drugs and Related Products

AFRICA

MEDILAB

& DIAGNOSTICS EXPO

Medical Laboratory and Diagnostics Services • Testing, Consultancy and Training Services • Diagnostic Equipment and Solutions • Medical Laboratory and Diagnostics Consumables • Sanitation, Cleaning and Hygiene Solutions

AFRICA

ANIMAL

HEALTH & CARE EXPO Animal Health Products • Pet Nutrition & Products • Veterinary Services and Products • Equipment and Services for Animal and Pet Care

AFRICA HEALTH

AFRICA

INSURANCE EXPO

EXPO

FINANCING &

Pharma manufacturing equipment and solutions • Pharma packaging solutions • Pharmacy chains and chemists • Human pharmaceutical drugs and related products • Construction, plant and infrastructure installations • Utilities and support services and equipment • Refrigeration, HVAC systems • Renewable Energy & Sustainability solutions

HEALTHTECH ICT and software solutions • Healthtech apps and systems • Digital health technologies and services • New technologies such as IoT, AI, VR/AR, blockchain, etc. • Payment systems and technologies • Inventory management solutions • Cybersecurity applications etc.

INSPIRATIONAL AFRICAN CEO INSIGHTS & COMPANY PROFILES

Your business has a unique story. Work with us to showcase your organisation to our readers in Africa and across the World.

CEO Business Africa magazine is read by some of the most important business owners, C-suite managers and other key decision makers from the private sector, Government, NGOs, embassies, consulates, development organisations and other sectors across the breadth of Africa and the World.

Full of inspirational and impactful interviews with CEOs and other leaders, the magazine, available in print and digital formats, is the voice of business in Africa. We tell African business stories better than any other publication.

CEO Business Africa magazine tracks, reports and celebrates the huge strides that are made by organisations in the Continent - from well established multinationals, to young enterprises that are inching their way to greatness in the future - thereby catalysing the next wave of enterpreneurs and investors in the world’s remaining growth engine.

Having your organisation featured in this magazine provides your organisation and brands with the best opportunity to stand out in the crowded marketplace and for your story and impact to reach key decision makers across the Continent and beyond.

In case you would like to have your story told here, please contact our Editorial team on +254 725 34 39 32 or info@fwafrica.net to discuss how we can work together to deliver an impactful story for your organisation.

Hospitality & Tourism

Agribusiness & Biotech Aviation, Transport & Logistics

Health Care & Personal Care

Manufacturing & Retail

Construction & Real Estate

Government/NGO Services

Energy, Oil & Gas

Financial Services

Telecom, ICT & Media

Mining

WWW.CEOBUSINESSAFRICA.COM

Education & Training

MARCH 2022

CEO BUSINESS AFRICA

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20 CEO BUSINESS AFRICA

MARCH 2022

WWW.CEOBUSINESSAFRICA.COM

DR. DAVID KIOS: SPEARHEADING KENYA’S DRIVE TO INCREASE AI TECHNOLOGY ADOPTION AMONG LIVESTOCK FARMERS KAGRC produces superior animal genetics to drive optimal animal productivity in Kenya and beyond

MARCH 2022

CEO BUSINESS AFRICA

21

COMPANY FEATURE: KAGRC

By Elly Akoko

75 years after Artificial Insemination (AI) technology was first introduced in Kenya, adoption of the practice is yet to become widespread. A number of barriers ranging from costs, lack of infrastructure, ignorance, and social cultural issues are keeping adoption rates below 40%. To continue competing favorably with other livestock producers in the continent, Kenya wants to raise adoption rates to at least 80%. The responsibility to achieving that been bestowed upon the Kenya Animal Genetics Resource Center (KAGRC) currently under the captainship of Dr. David Kios.

A DECADES-OLD PRACTICE KEPT SECRET FROM MANY FARMERS

Artificial insemination (AI), a process of collecting sperm cells from a male animal and manually depositing them into the reproductive tract of a female, has been around for more than a century. In Kenya, the practice dates back to pre-colonial times when elite dairy farming was the preserve of white settler farmers. “When European farmers came to Kenya, they realized

22 CEO BUSINESS AFRICA

MARCH 2022

there were issues of livestock diseases especially breeding diseases that are transmitted during normal mating and they realized how difficult it is to have a bull breeding many cows because of disease, so they decided to use AI,” Dr. Kios narrates.

The demand for AI services led to the formation of the Central Artificial Insemination Station (CAIS) in 1946. The center initially had only 4 bulls mainly Friesian, Jersey and Guernsey, and these were deemed adequate as the center only served white farmers. With independence, the center’s mandate was expanded to include all farmers in the country, requiring more bulls to be brought in to meet demand. A department within the Ministry of Agriculture called Kenya National AI Service was also created to do artificial inseminations, mainly in the Rift Valley and Central Kenya where farmers had taken in exotic and improved breeds.

A NEW NAME TO REFLECT EXPANDED MANDATE

In order to improve on its functions, CAIS was

WWW.CEOBUSINESSAFRICA.COM

in 2011 transformed into a state corporation known as Kenya Animal Genetic Resources Centre and given a broader mandate. As KAGRC, the center will not just produce semen but also conserve animal genetic materials (semen embryo, tissues and live animals) and rear breeding sires for provision of highquality disease-free semen to meet the national demand and for export. The corporation was also mandated to provide training in animal resource conservation procedures as well as serve as a reference laboratory for certification, testing of semen, embryos and related livestock production materials.

As KAGRC, the institution has been able to increase its number of bulls to 130 and is now able to produce up to 1.1 million doses of semen every year, according to Dr. Kios.

PARTNERSHIP WITH PRIVATE SECTOR TO DRIVE UP AI ADOPTION

Partnership with the private sector dates back to the 1990’s when structural adjustments swooped forcing the government to privatize AI services. The partnerships have however rapidly expanded under KAGRC. “We now have over 70 Agents distributed all over the country and their business is to take semen closer to the farmer,” Dr. Kios says. The inseminators buy semen from the Agents supplied by KAGRC so that at any given time, a farmer will always be having access to insemination services.

Working with the private sector has also had its downsides, one of them being unregulated prices for AI service. KAGRC semen goes for KSh 200 (US$1.76) per straw but the price the farmer pays for the service can go as high as Ksh 2,000 (US$17.6). “The AI Technicians sell the semen at a price of their choice although we give them guidelines to sell the semen to the farmers at between KSh 500 (US$4.40) and KSh 1,000 (US$8.80). Sometimes they even charge up to KSh 2,000 (US$17.6) which is unfair to the farmer.”

Thankfully, Kenya adopted a new constitution in 2013, ushering in devolved units of government which presented new partnership opportunities for KAGRC to drive down cost. According to Dr. Kios, the counties realized that not all farmers were able to buy the semen from the AI Technicians and Agents. KAGRC partnered with the 30 of the devolved units in an arrangement that would see the corporation supply the county governments with the semen for sale to farmers at subsidized costs. “The counties are controlling and selling at KSh 400 (US$3.51) to the farmer and that is why many small-scale farmers are now taking up AI technology” says Dr. Kios.

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LACK OF AWARENESS HAMPERS PROGRESS

One of the biggest challenges in AI technology adoption In Kenya is the knowledge gap.

“Farmers are not able to make sound breeding decisions because they cannot interpret the breeding catalogue in terms of feeding. These are very good genetics and with experience we have from KAGRC dating from 1946, you can be sure that we are competing with the very best internationally and the genetics are of superior quality but you still find that animals are not coming on heat because of issues in terms of feeding, either in terms of quality or quantity,” says Dr. Roselyn Wambugu, Director of Extension Services at KAGRC. “Some farmers want to do their own feeding rations but the knowledge on how to do it best is a big challenge so there is need for extension services on feeding. Again, even those who get good calves, they may not reach weaning weight or even become mature productive cows and that is why at the moment, the country has shortage of quality heifers to supply the national herd population and even to the region,” she adds.

Some farmers also fail to embrace AI technology due to social-cultural reasons.

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One of the biggest challenges in AI technology adoption In Kenya is the knowledge gap. Farmers are not able to make sound breeding decisions because they cannot interpret the breeding catalogue in terms of feeding.

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COMPANY FEATURE: KAGRC

COMPANY KAGRC

COUNTRY Kenya

SECTOR

According to Dr. Wambugu, some communities believe that that the use of AI denies the cows their ‘rights’ i. e interfering with nature. This limits them to the old practice of using bulls which is not only inefficient but exposes their dairy herds to diseases such as herpes virusequine coital exthanema - and contagious equine metritis which are mainly transmitted during breeding.

The other challenge is the equipment mantainance. “All these equipment is imported and whenever there is breakdown, getting spare parts takes long and when one or two machines goes down, you may not have enough liquid nitrogen to reach many villages in the country.

We used to get back-up from BOC, Synergy Gases and Noble Gases but with Covid-19, they are now concentrating in producing oxygen so today, if we do not have liquid nitrogen for KAGRC, the farmers have problems serving the animals,’ adds Dr. Kios.

EXPANDING BEYOND FOCUS ON DAIRY

KAGRC DURING THE LAUNCH OF ITS STRATEGIC PLAN 2018-2022

For a better part of the 75 years that KAGRC has been in existence, a lot of focus was given to dairy cattle, and for good reason since majority of Kenyans consume cow milk. But under Dr. Kios, KAGRC is breaking this barrier and is seeking to bring more livestock to its genetic pool.

Goat farmers are the first to benefit from this expanded mandate. “We realized that in some areas, they rely heavily on goats to get milk but unfortunately, they are milking half a cup but the semen we are producing at KAGRC for goats has the potential of producing up to 7 litres of milk per day so if we cross the low milk producers with high yielding ones, that farmer is assured of a dairy goat producing more than 4 litres of milk per day,” adds Dr. Kios. This transition to high yielding animals will ensure that the farmers especially in Arid and Semi-Arid Land (ASAL)

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Agriculture

WEBSITE www.kagrc.go.ke

areas will not suffer due to lack of proteins, he points out. Dairy goats are also resilient and with more milk, farmer incomes can also be boosted as unlike cow milk, goat milk is pricey.

KAGRC is also introducing pig AI services.

Because of poor breeds and inbreeding, pigs in Kenya take long to mature thus driving up the prices. KAGRC wants to reverse this in the next few years and in the end, bring down the price of pork which might also reduce the pressure on beef animals. “We want our pigs to grow faster.

You realize that the pigs we have currently grow so slowly, eating so much with little earnings

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produce many litres of milk within 9 months, he adds.

SUPPORTING DAIRY UNLOCK EXPORT POTENTIAL

Kenya is surrounded by countries such as DRC and Burundi which are not self-sufficient when it comes to dairy. Sadly, these countries depend on Europe for their milk exports while Kenya is just next door. KAGRC wants to change this narrative. The corporation has developed new breeds that can be distributed in areas where traditional dairy breeds could not survive because of harsh weather conditions. “As KAGRC, we have developed what we call ‘Magic50’ which is 50% indigenous and 50% exotic breeds. It can produce up to 20 litres of milk in any part of the country using very minimal resources and, in most cases, using roughages in those areas with little supplementation and can survive the harsh conditions,” say Dr. Kios. The CEO added that that their plan is to ensure that farmers get the right breeds to produce the right amount of milk for export market.

BECOMING BETTER AT HOME WHILE EXPLORING MARKETS ABROAD KAGRC CELEBRATING THE LAUNCH OF ISO CERTIFICATION 9001:2015

IN NUMBERS

1.1M THE NUMBER OF DOSES OF SEMEN PRODUCED EVERY YEAR BY KAGRC

out of them but we have introduced new genes, they grow rapidly taking only 30% of the time compared to the other breeds and matures within 5 months. These are targeted at the youth and women who keep goats and pigs,” explains Dr. Kios.

The CEO adds that KAGRC is also looking into the improved indigenous chicken. These birds take a long period of time before laying but the new genes allow the indigenous chicken to lay eggs early just like the other commercial chicken, giving the farmer between 220 t0 250 eggs a year.

“These are the new genes and lines we are introducing to famers in this country because you realize that these farmers suffer a lot because if you have a chicken that will only lay 20 eggs and start brooding on the 20 eggs and you wanted more eggs to sell then you are not in business.

These are the new species we are bringing on board to help the farmer,” says the CEO. The agency also recently received KSh 600 million (US$5.27 million) from the Kenyan government to establish an Embryo Transfer Centre. The center is expected to take AI to next level. “Very soon, instead of the farmer using the normal semen for AI, we’ll be putting in a fertilized egg of 7 days into the womb of those cows and they’ll produce pedigree animals,” says Dr. Kios. With embryo transfer technology we ca give farmers a pure breed animal that can

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KAGRC’s main goal still remains to increase AI uptake by farmers across the country. Currently, only 40% of Kenyan dairy farmers. “We are looking at pushing the uptake in collaboration with the county governments to ensure we reach up to 80% of the farmers. A country like Holland adopted the technology after Kenya but has achieved 100% adoption and exports powdered milk to Africa,” adds Dr. Kios revealed.

KAGRC is also looking beyond Africa. ‘We have already exported to Rwanda, Botswana, Uganda, Zimbabwe, Ghana, Nigeria and Burundi.

We are looking at assisting the African farmers through export to those countries,” says Dr.Kios.

To achieve the “African Dream” KAGRC wants to improve its own internal practices to make them align with required international standards for biosecurity. With greater biosecurity, Dr. Kios is optimistic that KAGRC can raise Kenya’s profile to match South Africa’s which already exports to the United States. A journey of a thousand miles starts with one step and for Dr. Kios, that first step will be widespread adoption of AI technology. “In Kenya and Africa, let’s embrace the technology. We have the ability to supply the whole world with milk if we embrace the technology because we have cheaper production systems. Let’s take up the technology, it is critical to our food security,” he concludes. CBA

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ISMAEL BELKHAYAT: LEADING CHARI.MA TO DIGITIZE AND PROVIDE CREDIT TO INFORMAL RETAIL STORES IN MOROCCO Chari digitizes the largely fragmented FMCG sector in parts of French-speaking Africa, particularly Morocco and Tunisia. It operates a mobile app that connects small retailers in these two countries to FMCG multinationals and local manufacturers, allowing them to order and get products in less than 24 hours.

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COMPANY FEATURE: CHARI.MA

SOPHIA ALJ AND ISMAEL BELKHAYAT - CO-FOUNDERS OF CHARI.MA

By Jackie Muinde

E-commerce and FinTechs have been the top businesses that boomed during the Covid-19 pandemic, mainly driven by people’s desire to avoid public spaces and handling of bank notes and coins. Ismael Belkhayat and his wife Sofia Alj saw an opportunity to join the bandwagon in early 2020, little did they know how timely their idea had been.

Born in Casablanca, Morocco, Ismael Belkhayat studied his undergraduates in Europe and then went to Cornell university, New York for graduate studies. His first job was at Boston Consulting Group (BCG) in their office in Paris and then moved to their office in Morocco. After BCG, he became an entrepreneur and founded two companies: Property Real Estate website and ride-hailing platform Vatcoshefeikh.ma.

Property Real Estate website is the leading Real Estate portal in Morocco and Ismael founded it through a joint venture with the group based in Dubai called Property Finder. After six years Ismael fully exited Vatcoshefeikh.ma by selling 28 CEO BUSINESS AFRICA

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his shares to Aevis Carrian Rentals.

Sofia, a Civil Engineering graduate from McGill University, Canada joined her husband in the business world after working for McKinsey as a strategy consultant for four years.

THE BIRTH OF THE CHARI.MA APP

While doing routine grocery shopping, Ismael and Sofia noticed that restocking small shops was a highly inefficient process that costed owners both time and money. To have their inventories restocked, most shop owners had to wait for distributor vans to drop by with their orders. The delivery schedules were unpredictable and could at times arrive when the owners had customers, interrupting sales. An alternative to distributor vans was going to the wholesale market to buy stock. This was even costlier as the owners had to close shop, missing out on business, and also incurring transport costs which would eventually add to the final price of products.

Having worked with the FCMG sector as WWW.CEOBUSINESSAFRICA.COM

We give SMEs micro loans to finance their working capital, so this is basically why more than 10,000 SMES have used the agent of sharing.

consultants, Ismael and Sofia came up with an idea that would streamline the restocking process for small shop owners. “My wife and I wanted to come up with very nice application with a lot of features that could help the shop owners with a lot of things,” Ismael points out. This led to the birth of Chari.ma, a business-to-business ecommerce and fintech mobile application for small shop owners. The owners could not only make orders from the click of a button but also have access to loans to fund their working capital.

The noble idea with loft ambitions was however not readily embraced by shop owners.

“We gave them an application that nobody was ready to use because it was too complicated,” Ismael points out. He and his wife went back to the drawing board, simplified the app and replaced the crowded user interface with a much cleaner interface with easy-to-use features and instructions. “We deleted the writings, and added more visual features and that’s how we made these people start using the App.”

REVOLUTIONIZING RETAIL IN MOROCCO

With user experience issues solved, Chari.ma launched in mid-2020 targeting small grocery store owners. When working with the grocery stores, messing up with one, means you messing with the whole group, but if you can do something nice word of mouth could be your best friend.

Knowing this perfectly well, Ismael and Sofia knew they had to get it right from the start. They invited some of the shop owners, explained what they wanted to do and why they wanted them to use their services. The couple promised the business owners that they will smoothen their

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operations and did just that. “We were delivering on time. When the client returned a product, we were accepting the returns for free, and we made sure our reputation was the best that can ever be.

We presented ourselves as a company which had impacts, social role; a company that was there to help them,” Ismael said.

Shop owners were not just experiencing supply chain inefficiencies, stiff competition from modern trade was also knocking on their doors. Modern trades are the big supermarkets who have a lot of money who can bring down prices to the disadvantage of small shops. “We came and explained to the small shops that we would gather them and become more powerful.

If we buy all together, we get better prices and can better compete with the big industries,” Ismael added. With an established network of small shop owners, Chari.ma had leverage when approaching the big first moving consumer brands. They bargained for cheaper rates in exchange for the invaluable data on the where their goods are sold. With cheaper rates from FMCG companies, Chari.ma was able to deliver on its promise of giving small shop owners goods at prices that would enable them to favourably compete against modern trade.

Chari.ma further cemented its position as the supplier of choice for its clients as it was the only one willing to give thirty days of preterm for goods supplied. “We give them micro loans to finance their working capital, so this is basically why more than 10,000 SMEs have used the agent of sharing,” Ismael revealed adding that the startup had cultivated its own group of 6,000 regular SME clients. Chari comes as a ‘super app’ and it might take time before any other company

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COMPANY FEATURE: CHARI.MA

IN NUMBERS

US$

70M

THE VALUE OF CHARI MA AFTER IT'S LATEST FUNDING ROUND

in North Africa comes up with something similar.

FUNDING, A CRITICAL GROWTH DRIVER

COMPANY Chari ma

COUNTRY Morocco

SECTOR E-commerce

WEBSITE www.chari.ma

30 CEO BUSINESS AFRICA

Ismael revealed to us that external funding was critical to the startup’s success from day one.

Before its launch in 2020, Chari.ma had raised a pre-seed funding round from HnS Invest Holding in 2019. Ismael and Sofia then combined the preseed and their savings to launch the company.

Almost one year into the business, Chari secured US$5 million in the largest venture funding round in the country in 2021. Ismael tells that it took four weeks to close the full seed round that valued it at US$70 million. The funding round was jointly led by Rocket Internet, Global Founders Capital and P1 Ventures.

Early this year, the startup closed another funding round that valued the company at US$100m. The funding was led by the Saudibased venture capital fund Khwarizmi Ventures (KV), AirAngels (Airbnb Alumni Investors), and Afri Mobility, the venture capital arm of AKWA Group.

Chari.ma may have been successful in attracting considerable investment from investors but that was not only thing they were after when seeking external investment. Ismael reveals to us that the mindset to gain market share was another key factor propelling them into partnering with venture capitalists. The desire to grow and become better in what they do has seen the startup also participate in a number of accelerator programs including the prestigious Y Combinator. “It’s an honor for us to participate in the S21 batch of Y Combinator. With my cofounder, we will belong to the very closed circle of YC Alumni, allowing us to benefit from a global network of brilliantly successful startups. This will create a lot of value for our startup,” Ismael MARCH 2022

affirms.

Chari.ma is also a member of Station F, the largest startup campus in the world. The startup hopes that integration with Station F will allow it to benefit from the expertise of startups around the world and to evolve in an environment at the cutting edge of technology. It also hopes to use experience from Station F to prepare for a Series A fundraising in the future.

EXPANDING WINGS BEYOND MOROCCO

Born out of a need to assist small shop owners easily replenish their inventories, Chari.ma has bigger ambitions of impacting the entire retail sector in Africa. Just like a journey of a thousand miles starts with one step, Chari.ma has started its journey by expanding into neighboring Tunisia. Ismael says that they are in discussion with a company in Senegal to acquire them and the next move will be to the French speaking African countries such as Mauritania, Cameroon, Ivory Coast, Senegal and Algeria before going to the rest of Africa.

To aid in this growth is, Chari.ma acquired mobile credit book application Karny.ma. Karny. ma. allow traditional local businesses to manage their outstanding customers. Available on Google Play, the application allows them to simply record their transactions on their phone, share them with their debtors and thus more easily collect their loans. Karny.ma, founded by consultants from the Boston Consulting Group, already has 15,000 customer grocery stores across Morocco.

What makes the app attractive to Chari.ma is its lower customer acquisition cost. Chari.ma thus hopes to use the mobile credit book application to acquire new users at a lower price and then convert them into Chari.ma users. CBA WWW.CEOBUSINESSAFRICA.COM

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NIKHIL GOEL: ACCELERATING GOKADA’S GROWTH PROJECTIONS IN NIGERIA In Nigeria, the e-commerce and last-mile delivery market is projected to be worth more than US$20 billion in the next five years. Ride hailing-turnedlogistics platform Gokada IS increasingly carving out its niche, as it grows its share across the country.

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COMPANY FEATURE: GOKADA

By Jackie Muinde

The African business environment is one that is many things but predictable. Succeeding in this part of the world requires more than just having a sound business case, it needs grit.

Market penetration can be quite tough and laws can change overnight, at times with far reaching implications on your business.

When founding his bike-hailing business in Nigeria, African largest economy, Fahim Saleh just wanted to help Lagosians move around faster and not worry about getting stuck in traffic.

This was not his first venture in transport as he had previously founded two startups; Jobike- a Bangladeshi bike sharing platform-, and Pathao, an on-demand ride hailing, and last mile delivery platform also headquartered in Bangladesh.

The business in Nigeria however proved to be nothing like what he had experienced when starting his two other ventures in Bangladesh.

“In Nigeria, the model was also different,” Gokada CEO Goel Nikhil tells CEO Business Africa magazine. “If you think of other countries 34 CEO BUSINESS AFRICA

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in SouthEast Asia and any other part of the world most of these (ride-hailing platforms) are aggregations, what they do is they only take the bikes that are on the road.”

Nigeria being a unique market required unique solutions if Gokada had to survive its early stages of inception. The technology-only model that worked in SouthEast Asia had to be ditched and Gokada took on a new strategy; that of co-owning the bikes together with the riders, at least at the initial stage. And it was not just bike financing. “We provide all the support they need; we give them the bikes; we give them the training and the App so from that they could go and start making money and from the money they make be charged something as a business.”

8 PILOTS STEER GOKADA INTO SUCCESSFUL LAUNCH

Under its new operating model, Gokada was able to launch in January 2018, initially starting with

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about 8 riders which the company proudly refers to as pilots. According to Goel, these riders felt at loss because this was something they had never experienced before. “They didn’t have to walk or have to be paid for a salary because they were working on their own, making money out of it, and only paying Gokada for the resource,” he explains.

The pilots did their job well and soon the trafficladen city of lagos was dotted with Gokada bikes moving time-bound customers from one point to another. “Our riders are our true marketers, they are the ones who are continuously working with us and at the same time giving us insights on how can we keep making things better.” In its 14 months of operation, the startup had secured close to 1,000 bikes and completes around 5,000 rides across Lagos’ Mainland each day, with rides approaching one million in total.

The company was clearly on an upward growth trajectory. A year after its launch, Gokada had moved to a new office in Ilupeju, which housed a state-of-the-art driver training school to train and verify up to 500 riders at a time. Talks with investors also bore fruit leading to a successful series A funding where the startup raised US$5.3 million. The round led by Rise Capital with participation from Adventure Capital, First MidWest Group, IC Global Partners and several local investors, brought in much needed funds to assist Gokada in expanding its fleet of drivers, with the goal of increasing the number of daily rides 10-fold.

BIKE HAILING BAN FUNDAMENTALLY CHANGES BUSINESS MODEL

businesses ranging from food vendors to clothes retailers and other consumer goods providers were forced to sell online due to movement restrictions and were in desperate need of a logistics partner. Gokada promptly launched its Gsend services across the city providing a lifeline to SMEs whose businesses were otherwise threatened by lockdown restrictions “Executing the transition and diversification into last-mile delivery wasn’t easy,” Goel reveals.

Riders were only accustomed to carrying passengers, moving goods from one point to another required a whole new training which Gokada was more than happy to provide.

According to Goel, it took Gokada more than a year to get its business mojo back but once it took off, business was now booming more than ever. “We were doing more deliveries than we were able to do in the riding business in a day,” he revealed. At the end of the one year, the startup had been able to complete over 2 million food delivery and e-commerce orders on behalf of over 30,000 merchants, restoring confidence that the company was indeed moving towards the right direction.

NEW DIRECTION UNDER NEW CEO

While at the middle of implementing its new business strategy, Gokada lost its founder and CEO Fahim Saleh in July 2020. The reigns of leadership were handed to Goel Nikhil first in acting capacity until March 2021 where he was confirmed to be the CEO. Goel first joined Gokada in 2019 and had seen the company rapidly grow, have its wings clipped before

The beautiful thing with Africa is when a business opportunity dries up, another one springs up next to it. For Gokada, that opportunity was in last-mile delivery.

No sooner had Gokada started flying than new changes to Lagos State Road Traffic Law clipped its wings. The new laws, which took effect in February 2020, restricted motorcycles or tricycles from operating passenger services on major expressways and highways for security reasons. Gokada was effectively out of business and was forced to lay off 70% of its workforce as it retreated to strategise on what to do next. A new business model had to be developed fast if the startup was to salvage the millions of investments already pumped into the venture. “At the time the question was, should we continue with things in Lagos or should we move out,” Goel says. Moving out was however not feasible as other cities were not be able to give the returns that Lagos offered.

The only viable option was to find another model that was both legal and actionable.

The beautiful thing with Africa is when a business opportunity dries up, another one springs up next to it. For Gokada, that opportunity was in last-mile delivery. Last-mile delivery presented a strong business case as most WWW.CEOBUSINESSAFRICA.COM

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COMPANY FEATURE: GOKADA

IN NUMBERS

5000 THE NUMBER OF RIDES ACROSS LAGOS’ MAINLAND EACH DAY

COMPANY Gokada

COUNTRY

reinventing itself as a last mile delivery company.

He also brought with him extensive experience in the global last mile logistics space, first in India as General Manager of unicorn food delivery startup Zomato, and then as Head of New Verticals at SafeBoda in Kenya.

In just 12 months into leadership, Goel proved to be the right person for the job. During this period, Gokada had grown its volume by more than three times, passed US$100 million in annualised transaction value, and had completed over one million food delivery and e-commerce orders. The startup now had new plans to expand beyond its current base in Lagos across multiple cities in Nigeria, including Abuja, Port Harcourt, Ibadan and Ogun.

Before launching into other regions, Goel spearheaded the company’s move towards an integrated transport and logistics company, offering both last-mile delivery and e-commerce company. The company launched a super app in June 2021 to allow customers have to access food delivery, e-commerce, in one place. Through the super app, customers can now have access to thousands of pilots, be able to create easy order management, use API integration to create and cancel orders, estimate delivery charges, and receive status updates straight from their mobile device, as well as select route optimization to reduce delivery costs. The super app, according to Goel, is their plug for anything in their customers daily life from food delivery and e-commerce to logistics services and ride-hailing.

The new super app has also provided a window for Gokada to plot a comeback to its first business venture- ride hailing. This time, Gokada

Nigeria

MAKING A LASTING IMPACT

Having already built a successful last-mile delivery business, Gokada has improved lives of tens of thousands of Nigerians be it riders or owners of small and medium scale enterprises.

The company is now on a mission to create a lasting impact in Nigeria. It targets to organically scale its services so that it can triple its impact and reach millions more riders, small business owners, and ordinary citizens trying to beat traffic.

Unlike many companies whose growth ambitions including setting up shop in other countries, Gokada, at the moment, is focused solely on its Nigeria market. That is where it plans to make its impact most felt. “Nigeria is a population of two hundred and ten million, that’s not a small population,” Goel affirms. “If we can go and tap into the market out here properly, we can change the lives of millions of people.” CBA

SECTOR Logistics

WEBSITE www.gokada.ng

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looked at Ibadan, a large city close to Lagos, as its new launch pad. In Ibadan, clients will get to enjoy a full range of services provided by the super app which include food delivery (GFood) and logistics services (GSend), with plans to resume ride-hailing (GRide) and e-commerce (GShop) later in the year. Once the Super App is successfully deployed in Ibadan, Gokada plans to launch further hubs in Abuja, Port Harcourt and Ogun. The aim is to take advantage of Nigeria’s e-commerce and last-mile logistics sector, which is growing at 11 per cent per year, boosted by recent changes in shopper behavior and demand for last-mile delivery.

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WOMEN SHAPING AFRICA IN 2022 For the longest time in Africa, men have been at the helm of businesses and companies, but in the recent years, we have seen that change - gradually. Women are now leaders and founders of big companies and businesses. In this listing, we highlight 50 women who are changing the narrative and leading their companies to great success and impact..

ABENA OSEI-POKU CEO - Absa Bank, Ghana

ABIOLA BAWUAH Regional CEO - UBA West Africa

AGNES GATHAIYA Country Director - Google East Africa

Since September 2018, Osei-Poku has been the Managing Director and Chief Executive Officer of Absa Bank Ghana.

Prior to this, she worked at Absa in South Africa as Managing Director responsible for the Corporate & Investment Banking business in East and West Africa. She is currently the chairman of The Ghana Stock Exchange (GSE) Council.

Overseeing the Group's subsidiaries in Ghana, Benin Republic, Cote D'Ivoire, Liberia and Sierra Leone, Abiola Bawuah is the CEO of UBA West Africa. She joined United Bank for Africa (Ghana) Limited (UBA) as Deputy Managing Director in 2013, in less than a year she was elevated to MD/CEO, with two firsts: being the first indigenous CEO of a Pan African Bank and the first female CEO to take the helm.

As the Country Director for East Africa at Google, Agnes is responsible for managing regional Google operations, developing and executing growth and innovation, and building and managing strategic partnerships. She has held leadership positions in organizations including Deloitte Consulting, SAP, Safaricom, and most recently served as CEO of Integrated Payment Services Limited (IPSL).

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TOP 50 WOMEN SHAPING BUSINESS IN AFRICA

than four years. She represents SubSaharan Africa within the regional and global Visa network.

DR. AGNES MATILDA KALIBATA CEO - Alliance for a Green Revolution in Africa (AGRA), Rwanda Dr Kalibata is a Rwandan Agricultural Scientist and Policymaker, and President of the Alliance for a Green Revolution in Africa (AGRA). She served as Rwanda's Minister of Agriculture and Animal Resources from 2008 to 2014. She is also on the board of the International Fertilizer Development Center and the administrative center of Anand, Gujarat.

AKUA OWUSU-NARTEY Regional Managing Director Ogilvy Africa, Ghana

-

As the Regional MD, Akua drives business transformation in partnership with key Clients like Coca-Cola, Nestle, Guinness, Absa, Kosmos Energy, UNICEF among many. Her team works with a client portfolio across West and Central Africa in categories including Beverage, FMCG, Telco, NGO, Oil & Gas, Banking etc. She has worked on multiple Nestle brands, Vodafone, Sab Miller, Guinness, Renault and UNICEF. Others include DHL, P&G, Total, Coke, Woodin and Fidelity Bank.

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ANNE JUUKO Chief Executive Officer - Stanbic Bank Uganda Ann Juuko was appointed as the Managing Director and Chief Executive Officer of Stanbic Bank Uganda Limited, the largest commercial bank in the country in March 2020. She has been a part of the Standard Bank Group for over eight years having joined as Head of Global Markets for Stanbic Bank Uganda and was later appointed head of Corporate and Investment Banking at Standard Bank, Namibia.

ANTA BABACAR NGOM BATHILY Executive Director – Sedima, Senegal

AIDA DIARRA Senior Vice-President – VISA, SubSaharan Africa Diarra has under her jurisdiction, all Visa operations in forty-eight markets across Sub-Saharan Africa. She joined Visa from Western Union, where she was the Regional Vice President for Africa & Managing Director for more

woman to hold the CEO position.

She will oversee operations in offices in Kenya, Tanzania and Uganda, Ethiopia, South Sudan, Rwanda, Burundi, and Somalia in her new role.

ANN MURAYA CEO – Deloitte East Africa With her appointment being effective in June 2022, Ann will be the first

As the Executive Director of Sedima, Senegal's leading poultry production group, Anta oversees production, distribution and company development. She has steered the group's diversification process beyond the successful poultry business that her father founded in the 1970s. She led the WWW.CEOBUSINESSAFRICA.COM

establishment of flour mill operations in 2014. In 2016, Sedima opened two new factories, a flour mill and an abattoir, requiring investment of US$29 million.

Sedima has established operations in neighboring countries Mali and Equatorial Guinea, and as far away as the Democratic Republic of Congo.

BETTY SAYINZOGA CEO - Sanlam, Rwanda

DEBRA MALLOWAH Vice President - Coca-Cola East and Central Africa

Betty is the CEO of Sanlam Rwanda, a firm that controls over 40 percent of the insurance market in the country. She became the CEO of Prime life Insurance in 2015 and moved to Saham in 2017 as CEO of Saham Life Insurance Rwanda.

Overseeing the development and implementation of Coca-Cola's business strategies across the East and Central Africa, Debra is the Vice President of Coca Cola East and Central Africa Franchise. She is also a Non-Executive Director at GSK Consumer Healthcare Nigeria.

BETHLEMEN TILAHUN ALEMU Managing Director - soleRebels, Ethiopia

BUKOLA SMITH Executive Director – FCMB, Nigeria

Bethlemen is the Founder and Managing Director of soleRebels, the world's fastest-growing African footwear brand and first to emerge from a developing nation. It is also the first WFTO Fair Trade-certified footwear company. Through soleRebels, Tihahun Alemu has created hundreds of wellpaid jobs in Ethiopia that have not only empowered her community and country but has presented a dynamic face of African creativity to the global market.

Bukola established the FCMB Women in Business Desk (branded SheVentures) which supports female entrepreneurs; and set up FCMB Trustees and FCMB Custody. She is currently the Managing Director/Chief Executive Officer of FSDH Merchant Bank since April 2021. Previously, she was the Executive Director, Business Development at First City Monument Bank and held several other leadership positions since joining in 2006.

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DIANE KARUSISI CEO of Bank of Kigali The largest commercial bank in Rwanda by assets has Diane at the helm. She has steered the bank through a digital transformation journey and driven the expansion of the BK Group business into General Insurance, Investment Banking and Technology. Under her leadership, BK Group became the first home grown company with a balance sheet valued at over US$1 billion.

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ETHEL COFIE CEO - Edel Technology Consulting, Ghana As a leading tech entrepreneur from Ghana, Ethel is the founder of many.

She is the founder and CEO of Edel Technology Consulting, a company that provides IT and software services as an enabler and catalyst for businesses to achieve their goals. She is also the founder of Women in Tech Africa, initiator of the 1st Pan African woman in tech meetup.

FREHIWOT TAMRU CEO - Ethio Telecom, Ethiopia For 10 years now, Tamru has been the CEO of Ethio Telcom, the country telecom monopoly company. She also owns her own IT business, DOXA IT Technology PLC which has been running for 7 years now

FLORA MUTAHI CEO - Melvins Tea, Kenya

JACQUELINE MKINDI CEO - Tanzania Horticulture Association (TAHA)

Certified Public Accountant, entrepreneur and Corporate executive, Flora is the founder and Chief Executive Officer of Melvin Marsh International Limited the manufacturer of Melvin's Tea, a Kenyan brand. She is chairperson of the Kenya Association of Manufacturers and board chair of The Kenya Private Sector Alliance (KEPSA).

She began a program in Kenya called Women in Maufacturing (WIM0 a program aimed at encouraging more women to join the industry).

Jacqueline is the Chief Executive Officer for Tanzania Horticulture Association (TAHA) and Chairperson of TAHA Commercial Companies (TAHAFRESH Handling Ltd and GreenCert Ltd).

She has been very instrumental in creating and facilitating transformative partnerships with the Government of Tanzania and Development Partners such as USAID, EU, UNDP, International Trade Centre (ITC), the Dutch, Belgian, Finnish, Swedish (SIDA) and Danish (DANIDA) Governments

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JANE KARUKU CEO - East African Breweries Limited Jane is the Managing Director and Chief Executive Officer of the East African Breweries Limited. She is also the chair of The Kenya Vision 2030 Delivery Board (VDB) and recently led the Kenyan COVID-19 Fund Board

JOYCE ANN WAINAINA CEO – Citi Bank, Kenya Since 2014, Joyce has been the Chief Executive Officer, of Citibank Kenya. She is also the Regional Executive Director of Citibank subsidiaries in Kenya, Tanzania, Uganda & Zambia. She serves on several boards including the Junior Achievement and the America Chamber of Commerce Association.

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Africa, a role she held for almost two years then got promoted to the Manging Director and CEO of Microsoft South Africa. Lillian currently also sits on the Board of the American Chamber of Commerce in South Africa and the Gauteng Provincial Government 4IR Commission – as well as being Advisory Board Member of the Institute for Intelligent Systems at the University of Johannesburg.

KABAMBA MIREILLE Managing Director Congo (DRC)

CANAL+,

Kabamba is the Executive Director of Canal + DRC. She began her career in Belgium, at Euroclear Bank, then travelled between the two Congos and Kenya for Celtel. After a brief stay in Gabon, she joined Canal+ Cameroon in 2014 as financial director before becoming Executive Director in 2015.

KATE HENNESSY CFO - Cassava Technologies, South Africa Kate is an Executive Vice President and Chief Financial Officer of Cassava Technologies. Kate previously served as Liquid’s Chief Financial Officer from 2007 to 2018, before becoming the Chief M&A Officer for just over a year.

MERCIA GEISES CEO - SBN Holdings Ltd (Standard Bank) Mercia is the Managing Director and Chief Executive Officer of Standard Bank Namibia Limited. She worked before as the CEO of Old Mutual. She later joined the Standard Bank as head of Personal and Business Banking (PBB) at Standard Bank Namibia Holdings Limited and as head of PBB at Standard Bank Namibia Limited before her appointment as the CEO. KADIJAH AMOAH CEO - Aker Energy Ghana Limited, Ghana Kadijah is on the Executive Management Team of Aker Energy AS and holds directorships in affiliated AGM Petroleum Ghana and Aker Ghana Investment Company. She is also a council member of the Ghana Upstream Petroleum Chamber.

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MIMI KALINDA CEO - Africa Communications Media Group LILLIAN BARNARD CEO - Microsoft South Africa Lilian joined Microsoft in May 2017 as the Public Sector Director for South

Mimi is the Group CEO and CoFounder of the Africa Communications Media Group (ACG). She is the former Brand, Marketing and Communications Director at the Global Development Incubator, MARCH 2022

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MUKWANDI CHIBESAKUNDA CEO - ZANACO, Zambia headquartered in Washington, DC. She is also the former Director of Communications for the African Institute for Mathematical Sciences (AIMS).

MONICA MUSONDA Founder – Java Foods, Zambia Monica is Chief Executive Officer and Founder of Java Foods, a food processing company based in Zambia that she established to provide affordable nutrition to the southern African market. Monica currently serves on the Boards of the Central Bank of Zambia and Dangote Industries Zambia Limited, and is Chairperson of Kwacha Pension Trust Fund, Zambia's largest single employer pension fund.

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As the Chief Executive Officer of Zambia National Commercial Bank (Zanaco) Plc, Mukwandi oversees its growth into a leading bank in Zambia on all fronts. Ms. Chibesakunda featured in the Forbes Magazine as a driven Chief Executive Officer of a state-owned savings and credit bank, against the odds, injecting life through embedding governance and digitization in the transformation process

NANCY MUHOYA NG’ANG’A CEO - Ernst & Young LLP (EY), Kenya Ms Muhoya is the first woman to be appointed as the Managing Partner and East Africa region leader of EY Kenya. Prior to this, Nancy was the Assurance Leader for East Africa. She has continued to possess extensive Assurance experience having served clients in diverse sectors over the last 17 years at EY.

NASIM DEVJI CEO - Diamond Trust Bank, Kenya Nasim serves as the Managing Director and Chief Executive Officer of Diamond Trust Bank Group, a commercial banking conglomerate, with headquarters in Nairobi and banking subsidiaries in Burundi, Kenya, Tanzania and Uganda.

She sits on the board of directors of, Diamond Trust Bank Agency Limited, Jubilee Insurance and Protection Fund Board of Kenya.

NGOZI OKONJO-IWEALA Director General – World Trade Organization, Nigeria Ngozi is the first woman and the first African to serve as Director-General of the World Trade Organization (WTO).

She is at the helm of the global trade body, which was created in 1995 to help settle trade disputes, write new trade rules and encourage the flow of goods and services worldwide.

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NJERI RIONGE Wananchi Online, Kenya Njeri is the founder of Wananchi Online, a leading Internet service provider. She is also the founder of Ignite Consulting, a thriving business consultancy; Business Lounge, Kenya’s leading startup incubator; Ignite Lifestyle, a health care consultancy; and Insite, one of Kenya’s most successful digital marketing outfits. In 2011, Forbes titled Njeri as Africa’s Most Successful Woman.

NUNU NTSHINGILA Regional Director - Facebook Africa Nunu is the Regional Director Meta (formerly Facebook) Africa responsible for building Facebook’s commercial presence across the entire African continent. She is also the Non-Executive Director at Ivanhoe Mines and the chair of Sustainability Committee and Member of Compensation and Human Resources Committee.

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OWEN OMOGIAFO CEO - Transcorp Group, Nigeria Owen is the President and Group Chief Executive Officer of Transnational Corporation of Nigeria, a diversified conglomerate with strategic investments in the Power, Hospitality and Oil and Gas sectors. She is also the Managing Director/CEO of Transcorp Hotels Plc where she drives the Company’s strategic objectives at its properties.

PRISCILLAH MABELANE Executive Vice President - Sasol, South Africa Priscillah, as the Executive Vice President of Energy Business at chemicals and energy group Sasol.

She is responsible for upstream and downstream gas activities as well as distribution, marketing and sales of liquid fuels in Southern Africa. She is leading strategy formulation for the Energy Business which will support and steer a stakeholder-centric approach in spurring sustainable growth.

PATRICIA ITHAU CEO – WPP ScanGroup, Kenya Patricia has been a leader in many companies. She is the currently the Chief Executive Officer and Executive Director of WPP Scangroup Plc. She is also a board member in companies such as Absa Bank Kenya, Trademark East Africa, Jambojet, British Chamber of Commerce and Industry, and a trustee on the boards of Vodafone Foundation UK, and M-Pesa Foundation.

RACEY MUCHILWA Country President and Head of Novartis Sub- Saharan Africa Novartis, Kenya Leading 46 countries Racey is the Country President & Head,

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Novartis Global Health Sub-Saharan Africa (SSA). She is a recipient of the World Business Council for Sustainable Development (WBCSD) 2020 Leading Women Awards, for exemplary leadership during the COVID-19 crisis.

serves as a Member of the Kenya Vision 2030 Delivery Board.

REBECCA MIANO CEO - KenGen, Kenya Rebecca is the Managing Director and Chief Executive Officer of the Kenya Electricity Generating Company (KENGEN), the largest producer of electricity in the East African region.

She is responsible for the operational running of the company and ensuring the execution of the corporate strategy for long-term competitiveness. She is a member of Investment & Strategy Committee and Administration & Communication Committee.

RITA KAVASHE CEO - Isuzu Motors East Africa Limited Rita is the Managing Director of Isuzu East Africa Ltd, the largest motor vehicle assembler in the region selling a wide range of Isuzu vehicles.

She is also the chairperson of the Kenya Roads Board, a non-executive Director of Bamburi Cement Limited (Lafarge Group), Vice-Chair of the Kenya Private Sector Alliance and 44 CEO BUSINESS AFRICA

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She is one of North Africa’s wealthiest female entrepreneurs. The Aksal Group, which attracts 15 million visitors every year and generates an estimated turnover of US$514 million, owns a 50 percent stake in the Morocco Mall.

The conglomerate also owns the sole franchise for several leading brands in Morocco, including Fendi, Gucci, Ralph Lauren, Zara, Banana Republic , Massimo Dutti, Pull & Bear and Gap.

RUTH ZAIPUNA CEO - NMB Bank, Tanzania Ruth is currently the Chief Executive Officer (CEO) of Tanzania's most profitable lender, NMB Bank Plc, and is responsible for driving the Bank's corporate strategy. Within her first year, the bank registered profits that no bank in the Tanzanian market had crossed, ensuring healthy dividend returns to shareholders.

SALWA AKHANNOUCH President – Aksal Holding, Morocco Salwa is the founder and current president of Aksal Holding, a Moroccan company specializing in retail, beauty and cosmetics, luxury goods and malls.

SARA MENKER CEO - Gro Intelligence, Ethiopia Sara is an Entrepreneur and the CEO of Gro Intelligence, which uses artificial intelligence to forecast global agricultural trends and battle food insecurity. She is a trustee of the Mandela Institute for Development Studies and was elected one of the World Economic Forum Young Global Leaders.

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SYLVIA MULINGE Chief Consumer Business Officer Safaricom PLC, Kenya Sylvia is the Chief Customer Officer of Safaricom, the leading communications company in Kenya with the widest and strongest coverage and the home of the famous Mobile Money service, M-PESA. As on of the few female Directors at the most profitable business in East and Central of Africa, she has a front row seat in driving the business agenda in the region.

TIGUIDANKE CAMARA CEO - Tigui Mining Group, Guinea Camara is a Guinean model and mining entrepreneur. She is the Chairman and CEO of junior mining companies, Tigui Mining Group and Camara Diamond Gold Trading Network. She is also a member of the association International Women in Mining. She is one of the youngest mining entrepreneurs in Africa, and the only woman in Guinea to own a mining company. She also founded Women in Mining Guinea in 2013.

TAELO MOJAPELO CEO - BP Southern Africa

TOSEEF DIN CEO - BP Southern Africa

A post she has held since June 2020, Taelo is the CEO BP Southern Africa.

Prior to being elected as the new CEO, Mojapelo was the head of optimization and supply at the company and previously held several leadership roles in multinational companies including, Mondelez International, Kellog’s and DHL.

Toseef is the CEO of MP Shah Hospital since November 2020. Until her appointment, she held senior positions at the hospital including the finance department as the Head of Finance and later as the Chief Operating Officer.

She has close to two decades of diverse experience in finance and healthcare management.

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TSHOLOFELO MOLEFE Chief Financial Officer - MTN Group, South Africa Tsholofelo Molefe is the Group Chief Financial Officer (CFO) of MTN Group Limited. She offers extensive financial strategy, financial management and accounting experience, with a strong background in enterprise risk management and financial controls.

YVONNE MANZI MAKOLO Chief Executive Officer - RwandAir Ltd Yvonne is the Managing Director and Chief Executive Officer of Rwandair, the national airline of Rwanda. She was appointed to that position on 6 April 2018. With a fleet of 12 aircraft serving 29 destinations in Africa, Europe, Middle East and Asia, RwandAir is one of the fastest growing airlines in Africa.

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LEOPOLD MALAN: STEERING SAKENG EMPORIUM TO LEVERAGE TECHNOLOGY TO DRIVE ECONOMIC INCLUSIVITY IN SOUTH AFRICA Sakeng Emporium’s dream is that every man and woman should experience what it feels like to own a small part of the economy

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COMPANY FEATURE: SAKENG EMPORIUM

What if you owned a small percentage of the marketplace where you buy your essentials from? That every purchase you make, yields profits which will eventually trickled down to you because you co-own the marketplace together with other members of your community.

Certainly, your sense of pride will be boosted. You are no longer just a consumer, you become part of the elite category of people known as investors, people who do not just drive the economy but own it. Unfortunately, most online-market places do not afford people the chance of becoming investors. A single share of Amazon, the world’s largest retailer, averages at about US$3,400, more than what most people in Africa take home as annual salaries. Even Africa-focused online retailer Jumia does not come cheap with its shares currently trading at US$18, which is ten times more what a majority of people in Africa spend on meals on a single day.

Somewhere further south in the continent, a group of business men and women are working tirelessly to change the narrative. Their dream is that every man and woman should

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experience what it feels like to own a small part of the economy. To make the dream a reality, the business men and women combined their resources, talents, and networks to create an online market place with a unique structure where not only do ordinary South Africans get to purchase product at competitive rates but also get to be co-owners of the site. We got a chance to chat with Leopold Malan, one of the key people driving the business, and his insights revealed to us how Sakeng is working behind the scenes to create an inclusive South Africa where everyone can prosper.

AN ONLINE MARKET PLACE & A MOBILE NETWORK

Sakeng Emporium’s quest in economic inclusivity gave birth to the idea of an online marketplace where retailers and consumers could meet and trade. “If you look at the marketplace across Africa today, there are so many retailers and each one of them has several platforms to engage with their customers including apps. In South Africa, there are over 6000 retailers and if 10% of them

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Sakeng Emporium’s quest in economic inclusivity gave birth to the idea of an online marketplace where retailers and consumers could meet and trade.

decided to build an app that would mean that the consumer will have to house 600 apps in his phone which is not practical,” says Leopold Malan, Chief Technical Officer of Sakeng.

Ordinarily, online platforms are often associated with big corporates, which often attracts the suspicion of small-scale retailers.

Issues of data privacy also emerge when consumers transact with online market places whose ownership, they have no control over. This was a clear gap that Sakeng had the opportunity to fill. To fill the gap, founders created a unique ownership structure where owners are members of its platform and distribution partners.

According to Mahlan, Sakeng members own 80% of the Sakeng Investment Corporation and the remaining 20% is owned by Sakeng Distribution partners who are comprised of all retail stores, spaza shops, hairdresser, or local fast-food shop that join the platform. With its community-ownership structure, the new marketplace under the name Sakeng Emporium would be less intimidating to retailers afraid of big corporations. “The whole idea is to make the consumers own the platform because if a big corporate owns it then the other retailers might refuse to participate,” Malan says. Being community owned, the founders also envisaged a future where the consumer will be at the core of the conversation and he or should be able to protect his own data.

As part of the initial products, Sakeng also built a mobile virtual network operator (MVNO) under the brand name Sakeng mobile. The mobile network like its online marketplace sister is owned by the community. Community ownership ensures competitive airtime rates and what is even more interesting is that Sakeng

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Mobile promises even lower rates as the number builds up. “Our dream is that the person needing only 50MB of data should not be paying much more than the person buying 2GB of data.

Our entry-level data packages are some of the most competitive in the market. The Sakeng Emporium allows the customer to negotiate together with the rest of his/her community for the best possible rates,” Malan reveals.

In the Sakeng Mobile framework, every user of the Sakeng mobile platform automatically becomes a member of the Sakeng Emporium business, and thus has a chance to own a small part of the economy they fuel. Malan reckons that if everyone in South Africa was to join the Sakeng network then the largest mobile network in the country would be owned by the very people who use it, giving them power to dictate their online experience while also benefiting from its profits.

SMALL WINS KEEP THE HOPE OF SUCCESS ALIVE

Launching in a market dominated by multinational giants like MTN was never going to be an easy task for a small startup like Sakeng.

But the business vision was intact, and the company has been able to record a few wins that keeps it soldering on. The mobile virtual network which started operations about one and half years ago has so far attracted about 1.6 million members, of which around 650,000 are adults.

It hopes to attract several millions more as it deepens its roots in South Africa. “The MVNO is running, and we raised millions to build this platform and it is now available on android play store, the USSD stacks are done, the groundwork is already there, the work left for us is to take it to take the ground operations. We don’t have a large budget, so we hope to market it via community networks,” Malan says.

The online marketplace is also gaining traction, attracting more retailers by the day.

“We have been in the pilot phase, and we brought the platform into life from the 1st of May 2020 here in South Africa but there is quite a job to be done to convince more retailers to join as well as integrate with them. Nevertheless, I am happy to announce that we have talked with over 1,200 retailers as well as product manufacturers and the feedback is amazing,” says Malan. The Chief Technology Officer at Sakeng is also quick to note that their marketplace is open to all consumers, regardless of age, gender or race. “We hope that it would appeal to customers from all segments.

Core to the Sakeng value system is that even the small guy should get the big deal, so we do expect more initial interest from the current prepaid mobile base,” he adds.

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COMPANY FEATURE: SAKENG EMPORIUM

IN NUMBERS

1.6M NUMBER OF SAKENG MVNO SUBSCRIBERS

COMPANY Sakeng Emporium

COUNTRY South Africa

SECTOR Telecommunication

WEBSITE www.sakeng.co.za

AMBITIOUS GROWTH PLANS

With its current set up, Sakeng’s vision is to have the platform run in any given country on the African continent. “Our concept is universal, and we hope that it will spread all over Africa and maybe even facilitate commerce across the continent,” says Malan. Sakeng also has a dream of helping consumers engaged each other in a much more meaningful manner and potentially have Africans from all over engage with each other. “I think it is high time we as Africans stopped depending on foreign technology and instead started innovating locally considering that our opportunities and problems are unique to us,” Malan adds. “It is definitely a big project, but we shall unfold it one brick at a time. I believe that if we put our minds to it, we as consumers support that which is ours, we can bring about change,” he adds.

As the company moves towards its next phase of growth, Malan reveals that significant investment will be made on its retail network to make it easier for retailers to join the platform.

The company also plans to add functionality for members on the platform. “We have a road map of features to add for the next 3 years, we actually have a box full of ideas, time and money is the only thing that comes between us and implementing those ideas. We will also listen to ideas that the community will put forward, you add features that they think will help make their life easier because at the end of the day they are the ultimate owners,” the trustee explains.

Malan believes that despite the enormous task ahead, the Sakeng team has the right skills and talents to take the company forward. Malan, a technology expert, with years of experience working with both large and small companies launch innovating technologies believes his background would be critical in driving the company forward. “I have been working in technology my whole life and my background in working with both big and small companies gave me a lot of exposure. I got to see how technology can actually solve problems in amazing ways. The little contribution I bring to the table together with a bunch of other skills that we need in the business from marketing to distribution to operations will enable the company to thrive. It is never a one-person thing, it is always a team’s affair, and it is always satisfying when one is able to bring their past experience on the table and work with a team to develop something and even more satisfying see it grow,” Malan says.

FUTURE SUCCESS PEGGED ON CONSUMERS

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can only thrive if the community embraces it.

Investment from outside the business will only dilute member ownership and beat the whole sense of coming up with the business which is making the world a better place and make money for everyone not just a few shareholders.

Malan says that the company can only grow if more South Africans join the platform and “Invest” through using the services it offers. “The amazing thing is that there is no place to invest in the business because it belongs to the consumers, but we do hope that over time the business will be funded by two things: - one, a few transaction costs that we can charge on value added.

Second, we hope that if the retailers feel that the platform works for them, they can send in some contributions, however we would not want to depend on donations, we must be a sustainable business to a earn a place in the society,” Malan adds. “Sakeng is basically a technology platform built on the philosophy that every single human being can own a part of something and deserves a platform that looks up for their interests. All it needs in exchange is the support of these same people it looks out for.” CBA WWW.CEOBUSINESSAFRICA.COM

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TOURISM: RADISSON GROUP

TANZANIA: EMERGING BUSINESS AND HOSPITALITY GIANT IN AFRICA 52 CEO BUSINESS AFRICA

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Tanzania’s broad vision is to become a middle-income country by 2025, characterized by high-quality livelihoods, peace, stability, unity and good governance, a well-educated and learning society, and a competitive economy capable of sustainable growth and shared benefits.

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COUNTRY FOCUS: TANZANIA

OIL AND GAS SECTOR INVESTMENT IN TANZANIA

By Elly Akoko

At 947,303 square kilometres, Tanzania is the 13th largest country in Africa and the 31st largest in the world. Following two decades of sustained growth, Tanzania reached an important milestone in July 2020, when it formally transitioned from low-income country to lowermiddle-income country status. Tanzania’s achievement reflects sustained macroeconomic stability that has supported growth, in addition to the country’s rich natural endowments and strategic geographic position.

AN ECONOMY ON THE RISE

Reflecting strong income growth over the past decade, on July 1, 2020, the World Bank announced that Tanzania’s gross national income (GNI) per capita increased from US$1,020 in 2018 to US$1,080 in 2019, exceeding the threshold for lower-middle income status. Moving a step higher in the economic ladder has been Tanzania’s goal for some time now. The country’s broad vision to be a middle-income country in 2025 is out in the Tanzania Development Vision 2025. In the vision plan, Tanzania wants its economy to be characterized by high-quality livelihoods, peace, stability, and unity good governance, a well54 CEO BUSINESS AFRICA

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educated and learning society, and a competitive economy capable of sustainable growth and shared benefits.

Tanzania has fared relatively well compared to its regional peers, but economic growth has slowed significantly. The real gross domestic product (GDP) growth rate fell from 5.8% in 2019 to an estimated 2.0% in 2020, and per capita growth turned negative for the first time in more than 25 years. The global economic slowdown adversely affected export-oriented industries, especially tourism and traditional exports, and caused a drop in foreign investment.

Although the government did not impose stringent mobility restrictions, the pandemic prompted firms and consumers to adopt precautionary behaviours, hindering domestic economic activity. Meanwhile, steep declines in production, consumption, and imports have significantly reduced fiscal revenue. The pandemic has also compounded pre-existing challenges in the financial sector, and the share of non-performing loans on bank balance sheets continues to be high, while the growth of credit to the private sector has slowed.

According to the African Development Bank

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outlook report, growth slowed to 2.1% in 2020 from 6.8% in 2019 because of COVID–19. The modest growth was driven mainly by construction and manufacturing on the supply side and investments on the demand side. Monetary policy has been accommodative to support credit and economic growth, with a reduction in the policy rate from 7% in August 2018 to 5% in May 2020, where it remains. Inflation fell to 3.3% in 2020 from 3.5% in 2019, due to a steady decline in food prices. Exchange rates remained stable, partly due to the Bank of Tanzania’s interventions to ensure stability in the foreign exchange market.

The government’s fiscal consolidation has helped to reduce recurrent expenditures, but the adverse effect of COVID–19 on revenues increased the fiscal deficit slightly from 2.0% of GDP in 2019 to 2.3% of GDP in 2020—which still is lower than the government target of 5%.

MINING, A KEY DRIVER OF TANZANIA’S ECONOMY

Mining is a critical segment of the country’s economy, accounting for over 50% of the country’s economy. From Gold and Diamonds to Gemstone, nickel, copper, and titanium, the country is rich in minerals. Of all the minerals found in the country, gold is by far the most important in terms of both mineral deposits and revenues generated from exports. The country has gold reserves of 45 million ounces, generating revenue of over US$1 billion. Diamonds are also found in significant amounts.

Tanzania is the 4th largest gold producer in Africa after South Africa, Ghana and Mali.

The mining industry experienced an estimated 15.3 percent growth in the first quarter of 2020 compared to 10 percent growth during the same quarter in the previous year. Tanzania’s profile as a leading gold producer could also rise if investors tap into other greenfield areas where active commercial-scale mining is yet to start.

The current perceived opportunities range from former mines in the Archaean Greenstone belts around Lake Victoria, Proterozoic rocks and conceptual grass root plays in Karoo and younger rocks. Investigation has mainly been focused on the greenstone belts around Lake Victoria with particular attention on the shear hosted gold mineralization associated with banded iron formations (BIF), tufts and volcano-sedimentary exhalative. Several "world class" gold deposits have already been discovered in the Lake Victoria Goldfields and are at different stages of development.

Diamond is also found in plenty in Tanzania.

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(3,800 kg) of diamonds. A wide variety of gemstones are also present in the country, including the world-renowned Tanzanite (blue zoisite) occurring in the Proterozoic metamorphic rocks of the Usagaran and Ubendian Systems.

Other gemstones mined in the country include ruby, rhodolite, sapphire, emerald, amethyst, chrysoprase, peridot and tormaline. Recently, a major alluvial occurrence was discovered in the southern region of Ruvuma, Mtwara and Lindi.

Varieties include chrysoberyl, spinels, sapphire, garnets, zircons and diamonds.

A variety of clays - bentonite, kaolin and fullers earth - in size-able deposits have been identified and are only scantily exploited. The Pugu kaolin deposit located some 30 kms West of Dar es Salaam has a great potential for development.

Evaporates and saline deposits of economic significance are associated with the rift valley lakes. Investigations of the Soda ash deposits at Lake Natron revealed a potential recovery of over one million tonnes a year.

Graphite occurs in high-grade gneisses mainly in the Usagaran system. Sufficient reserves have been identified at Merelani, northern Tanzania, for a 40-year operation at a mining rate of 15,000 tonnes per year of high grade flake graphite of 97-98% purity. Basemetals are found in a belt running from Kagera through Kigoma to Mbeya, Ruvuma and Mtwara regions: recent evaluations have so far outlined contained resources of 500,000 tonnes nickel, 75,000 tonnes copper and 45,000 tonnes cobalt.

Its importance to the economy has led to the government enacting a number of policies to catalyze development in the sector, encourage

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Tanzania is the 4th largest gold producer in Africa after South Africa, Ghana and Mali.

DIAMOND FROM WILLIAMSON MINE

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greater local participation while ensuring the country gets to benefit from the rich minerals within its borders. Liberalization of the sector has its origins in the 80s and 90s when the government of Tanzania (GoT) relaxed rules to allow for private ownership of mining activities.

With greater participation of the private sector, the contribution of the mining sector to the economy rose by 2.1% above the 2010 figure of 2.7%.

In 2017, the GoT, introduced a raft of new legislations aimed at ensuring that Tanzania benefits more from the minerals it produces. The changes in the legislations have increased the loyalties increasing from 4 percent to 6 percent and an introduction of 1 percent clearing fees on the value of all minerals exported from the country. Also, the new laws give the GoT ability to acquire 16 percent of shares from major mining companies on free carrying basis. The amendments led to the establishment of Joint Venture Company known as Twiga Minerals Corporation Limited between the Government (16 percent shares) and Barrick Gold Corporation Company (84 percent shares); and payment of compensation of US$100 million from Barrick Gold Corporation Company as initial settlement of the agreed US$300 million. With new legislation, Tanzania seems to be reaping more from its mineral reserves. Revenue from mineral collection has for instance increased to US$202.7 million from July 2019 to April 2020, a figure that more than doubles the US$84.5 million that the country collected in the in 2015/16 financial year.

The Government of Tanzania also says it would like to see more value-added activities in the country to include smelting and processing of minerals. In 2015 the World Bank offered Tanzania a US$45 million loan to improve the small-scale mining industry in rural Tanzania.

As of 2020, two model gold smelters were built in Lwamgasa and Katente, one stop mineral processing and export centre, strengthening of mineral control and reduction of smuggling due to construction of a 24.5km wall around the Mirerani tanzanite mine.

With the government updating its policies to ensure the sector is beneficial to Tanzanians, opportunities exist for locals to enter the lucrative mining sector. Foreign companies working withing existing legislations also have opportunities to tap into the vast opportunities in the mining sector. Opportunities particularly lie in areas such as the establishment of gold refinery activities, supplying equipment and explosives, grinding media, mill liners, etc., under joint venture with Tanzania entrepreneurs, 56 CEO BUSINESS AFRICA

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establishment of value-added activities, Gemstone cutting and polishing (lapidary).

The 2010 Government legislation banning the export of unprocessed gemstones in a bid to spur local value also creates additional incentive for investment into mining value addition.

AGRICULTURE, THE BACKBONE OF TANZANIA’S ECONOMY

Tanzania, like many countries in sub-Saharan Africa, has agriculture as the backbone of its economy. The country has vast agricultural resources with estimates revealing that as of 2018, Tanzania had over 44 million hectares of arable land which represents 45% of the country’s total land area. With such huge agricultural resources, it’s not surprising that the sector is the main pillar of the country’s economy. According to Tanzania Invest, the country’s agriculture is a leading contributor to the country’s GDP accounting for 28.2% in 2018 (US$ 12.7 billion). In 2014 it accounted for US$ 10.3 billion or 25.8% of GDP, marking an increase of 48% over 5 years.

The agricultural industry also makes a large contribution to the country's foreign exchange earnings, with more than US$1 billion flowing into the country annually from cash crop exports.

Cash crop production reached 0.639 million tonnes in 2018/19, compared to 0.627 million tonnes in 2014/15, marking an increase of 2%. Cashew nuts are the most produced cash crop in Tanzania accounting for 35.2% of the production, followed by seed cotton (34.9%), coffee (10.4%), tobacco (8.6%), tea (5.8%), and sisal (5%). Exports from cash crops accounted for US$830 million (9%) of the total value of Tanzania’s exports in 2019, compared to USD

According to Tanzania Invest, the country’s agriculture is a leading contributor to the country’s GDP, accounting for 28.2% in 2018 (US$ 12.7 billion)

MAIZE IS THE MOST PRODUCED CROP IN TANZANIA

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793 million in 2015, representing an increase of 5%. Raw tobacco and cashew nuts emerged as Tanzania’s most exported cash crops. Most of Tanzania’s tobacco was exported to Germany, Russia, and Poland, while almost 80% of cashews are exported to India. Most of the production of cashew nuts in Tanzania is exported without being shelled.

When it comes to food crops, Maize is the most produced crop in Tanzania accounting for 62.6%, followed by rice (21.6%), pulses (15.1%), and wheat (0.7%). Tanzania’s crop however production decreased by 3% in the past 5 years, from 10.3 million tonnes in 2014/15 to 9.9 million tonnes in 2018/19. The country’s livestock, on the other hand, production generated US$4.2 billion in 2018, compared to US$2.4 billion in 2014, representing an increase of 75%. Out of the total meat production, 55% (US$2.31 billion) came from cattle, 21% (US$0.88 billion) from sheep and goats, 14% (US$0.59 billion) from pigs, and only 10% (US$0.42 billion) from chicken. Tanzania Aquaculture Tanzania’s fishing industry generated US$0.27 billion in 2018 versus US$0.21 billion in 2014, marking an increase of 26%. Aquaculture in Tanzania is dominated by freshwater fish farming in which small-scale farmers practice both extensive and semi-intensive fish farming. Small fishponds of an average size of 10 m x 15 mm (150 m2) are integrated with other agricultural activities such as gardening and animal and bird production on small pieces of land. Tanzania is currently estimated to have a total of 14,100 freshwater fishponds scattered across the mainland.

Given the low revenues that raw agricultural produce, the country has been keen on value addition. The country agriculture value-added net output increased by 46% during the period 2012–2017, from US$10.5 billion to US$15.3 billion. Currently, value-added products in Tanzania include cotton yarn, manufactured coffee and tobacco, sisal products (yarn and twine), wheat flour, biscuits and pasta, beer, textiles, rolled steel, and refined sugar.

Sugar production has been averaging of 300,000 tonnes of sugar per year while demand stands at about 670,000 tonnes. In April 2020, The Tanzania Investment Centre (TIC) issued a notice inviting domestic and foreign investors to develop sugarcane and sugar processing plantations due to a sugar demand gap in the country. Other sectors have not been abandoned and the country has been pursuing a policy where it seeks to ensure at last two new products are developed from each of the staple crops, horticultural crops, livestock and fisheries by that year. The Tanzania Agricultural Development

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Bank (TADB) is a key drive of this initiative and it is leading from the front by mobilizing financial resources and supporting smallholder farmers with low-interest loans.

Under Tanzania’s Five Year Development Plan (FYDP), agriculture has been earmarked as a major driver of the country’s economy.

Through the plan, the government has planned major interventions in the agricultural sector, including improving value chains, developing skills, increasing commercialisation, funding new research and development, enhancing infrastructure and improving access to credit.

While agriculture accounts for approximately 30% of total exports today, the plan envisions the sector to account for 36.7% of all exports by 2025. Under the FYDP, agriculture’s contribution to GDP is forecast to increase from 29.1% in 2016 to 29.4% in 2020/21 and 32% in 2025/26, while the plan targets boosting the sector’s real growth rate from 3.4% in 2015 to 7.6% in 2020/21 and 13.1% in 2025/26.

Increased private sector investment in all aspects of the agricultural value chain will play an important role in the achievement of the FYDP. To this end, the government is particularly seeking out new foreign financing for the flagship project Southern Agricultural Growth Corridor of Tanzania (SAGCOT) to quickly develop that region’s agricultural potential. The entire project seeks to mobilise US$2.1bn of private sector investment under a public-private partnership model. SAGCOT is expected to dramatically improve smallholder MARCH 2022

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15.3B TANZANIA'S AGRICULTURAL VALUE-ADDED NET OUTPUT IN 2017

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farmers’ links with domestic and international markets, a critical consideration given that 80% of farms in the country are no larger than 2.2 ha. The US International Trade Administration (ITA) reported in April 2016 that the government had, by that date, already allocated 63,000 ha of land for development under SAGCOT to be used for the cultivation and processing of sugarcane and rice. These wide-reaching efforts should see production levels of key cash crops return to growth in the coming years, helping boost valueadded processing in the cotton, sisal, cashew, livestock, oilseed crop, coffee and tea segments.

TOURISM, A LEADING FOREIGN EXCHANGE EARNER

Tourism is Tanzania’s primary foreign exchange earner generating US$2.4 billion in 2018 versus US$2.2 billion in 2017, marking an increase of 9.1%. International tourist arrivals reached 1.4 million in 2018, compared to 1.3 million in 2017 and 754,000 in 2010. Europe accounted for the largest share of arrivals in 2017, followed by Asia and the Pacific, the Americas, Africa, and the Middle East. Tanzania´s hotel occupancy rate was estimated at 53.8% in December 2019 compared to 44.9% in December 2018.

When Tourists flock to Tanzania, they come for its vast wilderness and pristine sandy beaches.

Tanzania Wildlife & Beaches are considered

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among the finest in the world. There are 16 National Parks in Tanzania, 28 Game Reserves, 44 Game controlled areas, 1 conservation area and 2 Marine Parks. Some of the top tourist destinations include the Serengeti National Park, a world renown wild life sanctuary known for the Wildebeest migration. The Kilimanjaro National Park, which hosts Africa’s highest mountain is also another tourist magnate. Other additional natural attractions include the white sandy beaches of the Zanzibar archipelago, of north and south of Dar es Salaam, and excellent deepsea fishing at Mafia and Pemba Islands. Tanzania is also prized for its superb trophy hunting (sport hunting or safari hunting). Hunting in Tanzania is presently permitted and regulated by the Wildlife Conservation act of 2009, and its subsidiary regulations.

TANZANIA INVESTS IN ENERGY TO DRIVE ECONOMIC GROWTH

The generation, transmission and distribution of electricity in Tanzania, is channelled through TANESCO, which is fully owned by the government and is responsible for 98% of the electricity produced in the country. Currently, Tanzania’s total power installed capacity is 1,602 MW of which 244MW were added in the past four years. Tanzania’s electricity generation comes mostly from natural gas (48%), followed by hydro (31%), petrol (18%), solar (1%), and biofuels

SERENGETI NATIONAL PARK, A WORLD RENOWN WILD LIFE SANCTUARY KNOWN FOR THE WILDEBEEST MIGRATION.

Tanzania’s electricity generation comes mostly from natural gas (48%), followed by hydro (31%), petrol (18%), solar (1%), and biofuels (1%).

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(1%). With demand outpacing supply, Tanzania imports power from Uganda (10MW), Zambia (5MW) and Kenya (1MW). The traditional dependence on hydropower combined with the droughts that are affecting the country, often result in power supply shortages.

Tanzania knowing fully well the importance of electricity in economy growth has invested huge sums in harnessing its natural resources to produce electricity to continue bridging the energy gap and providing more for economic growth. Hydropower is the country’s main source of power, providing up to 562 MW of energy. The country’s vast water resources however have potential to offer even more with current estimates of potential additional capacity being project to be as high as 4.7 GW, according to Tanzania Invest. The country has been keen to tap these resources and has a number of projects in the pipeline to up its hydropower production capacity. The 222 MW Rumakali and 358 MW Rhuhudji projects, both located in the Njombe region in the southern highlands of Tanzania and could double the country’s total installed hydropower capacity from 562 MW to 1,142 MW. In May 2021, the African Development Bank (AfDB) and the Government of Tanzania have signed loan agreements totalling US$140 million to finance the construction of the 50 MW Malagarasi hydropower plant in Western Tanzania. The funds will be used to construct the plant and an evacuation transmission line, as well as to add 4,250 rural electrification connections, providing reliable renewable energy to households, schools, clinics and small and medium-sized enterprises in the Kigoma Region.

Natural gas, the country’s major leading source of energy, still has more untapped potential that could be exploited to meet demand. Tanzania’s natural gas is produced from three sources: Songo Songo, Mnazi Bay, and Kiliwani North.

The total gas production stands at approximately 175 cubic feet per day. There are nine thermal power plants in Tanzania converting natural gas to electricity: Ubungo I and II, Tegeta, Songas, Mtwara, Somanga, Kinyerezi I and II, and Dangote. Total production per year stands at approximately 650 MW. Tanzania natural gas potential is however severely underexploited.

Estimates show that natural gas reserves stand at 57 trillion cubic feet (TCF) with The Tanzania Petroleum Development Corporation (TPDC) expressing confidence that the country’s gas fields are large enough to cover the domestic power requirements and make Tanzania the next natural gas hub in Africa. Geothermal is the other energy that could be tapped to expand Tanzania’s energy capacity. Estimates indicate a potential WWW.CEOBUSINESSAFRICA.COM

exceeding 650MW, with most prospects located in the East African Rift System.

Shifting to renewable energy, Tanzania being within the tropic has huge solar potential.

Tanzania’s sunshine hours per year range between 2,800 and 3,500 with global horizontal radiation of 4–7kWh per m2 per day. Solar resources in Tanzania are especially present in the central region, and they are being exploited for both offgrid and grid-connected solutions. To date, about 6 MW of Photovoltaic (PV) solar energy have been installed in Tanzania. The Government supports solar development within the country by removing VAT and import taxes on the main solar components (panels, batteries, inverters and regulators). In 2019, the World Bank signed a grant agreement with the Government of Tanzania amounting to US$4.5 million to finance the access to a sustainable water supply through improved solar pumping systems in 165 rural Tanzanian villages.

Wind resource assessments indicate that the Kititimo and Makambako areas have adequate wind speed for grid-scale electricity generation.

At Kititimo wind speeds average 9.9 miles per second and at Makambako they averaged 8.9 miles per second at a height of 30 meters. In June 2020, Tanzania’s first-ever wind farm in Mwenga in the Mufindi district of Tanzania’s Iringa region started generating electricity as part of its startup testing procedures. Construction of the 2.4MW power plant was completed in May 2020. It was made possible thanks to a loan from the Renewable Energy Performance Platform (REPP) and is operated by the Rift Valley Energy Group.

Tanzania also has coal reserves estimated

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1.4M NUMBER OF TOURIST WHO VISITED TANZANIA IN 2018

PORT OF DAR ES SALAAM

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though a few big players still dominate the market.

There are currently 30 insurance companies, 109 insurance brokers, and 635 insurance agents as of December 2018. The insurance penetration in Tanzania however remains very low but has plenty of room for further growth. The securities market in Tanzania which emerged in the 1990s has also been expanding. Within its framework, the Capital Markets and Securities Authority (CMSA) was established in 1994 and the Dar es Salaam Stock Exchange (DSE) was incorporated.

As of September 2020, there are 27 companies listed at the Dar es Salaam Stock Exchange (DSE) with a total market capitalization of TZS 15,183.09 billion (US$ 6.5 billion).

A COUNTRY ON THE RISE

MALARAGASI HYDROPOWER PLANT

Tanzania has a total of 49 licensed banks and other non-banking financial institutions and the market is highly competitive though a few big players still dominate the market.

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at 1.9 billion tonnes, 25% of which are proven.

The main coal reserves are found in the southwestern part of the country. Currently, less than 1% of Tanzania’s power is generated from coal-fired plants, however, the government is keen on developing up 2,900 MW of coal energy 2025. Biomass also comes on board as Tanzania’s largest energy source. Biomass in Tanzania is presently used for grid generation (around 18 MW) and by the agro-industry to generate its own electricity (about 58 MW estimated). It is also estimated that more than 95% of households in Tanzania use firewood and charcoal as their source of energy for cooking. In urban areas, about 71% of all urban households consume charcoal and about 19% consume firewood. Investment in other energy sources particularly natural gas could help in driving down this statistic as biomass as currently used is not only bad for the environment but also for the health of those exposed to its fumes.

Tanzania has been making bold economic moves, particularly under the era of the late president John Pombe Magufuli. A greater focus on mining promises to uplift the country’s revenue from these precious resources while investments in electricity, particularly hydropower, are creating incentives for greater investment in the country’s manufacturing sector. The African Development Bank is positive about the country’s economic outlook is positive, with real GDP projected to grow 4.1% in 2021 and 5.8% in 2022, due to improved performance of the tourism sector and the reopening of trade corridors. AfDB however highlights business regulatory bottlenecks that constrain private sector activity and uncertainties regarding the pandemic as the major downside risks. All in all, Tanzania has proved that it can achieve significant economic milestones within a short period of time, and with the right policies, the country can realize its 2025 vision of becoming a middle-income country characterized by highquality livelihoods, peace, stability, and unity good governance, a well-educated and learning society, and a competitive economy capable of sustainable growth and shared benefits. CBA

TANZANIA FINANCE

Tanzania embarked on financial liberalization in 1992 in order to sustain its economic growth.

This has been done by mobilizing financial resources, increasing competition in the financial market, and enhancing quality and efficiency in credit allocation. As a result, the sector has been booming, particularly during the last few years. The banking sector has been the biggest beneficiary with new merchant banks, commercial banks, bureaus de change, credit bureaus, and other financial institutions have entered the market. With a total of 49 licensed banks and other non-banking financial institutions, the market is highly competitive MARCH 2022

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PHOTO COURTESY: DP WORLD

DP World: Powering African trade through robust investments in port and logistics infrastructure Ports constitute a major part of the global transportation sector and have been integral to the success story of economies the world over for many centuries, evolving with the rise of ‘container hubs’ acting as a crucial connection between sea and land. DP World is one of the world's largest port operators and continues to invest in our ports, because it benefits its partners, clients and the world.

By Elly Akoko

The African logistics market, which is currently estimated at US$150 billion, is expected to experience rapid growth particularly with the arrival of the Africa Continental Free Trade Area (AfCFTA) agreement. The continent’s potential

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has attracted the interest of global logistics major DP World. Investments made by the company across the continent not only demonstrate its commitment to Africa but the potential of the continent’s transport and logistics network.

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MOBILITY & SUPPLY CHAIN AFRICA: DP WORLD

DP WORLD’S AFRICAN FOOTPRINT

DP World is not new player in African logistics scene. In fact, it has been around for over 20 years managing port logistics in a number of countries including Senegal, Egypt, and Somaliland.

It also manages about 3.5 million 20foot equivalent units of capacity in Senegal, Mozambique, Somaliland, Angola, Rwanda, Algeria, and Egypt. These numbers add to 70 million containers that it handles globally, making it one of the largest port operators in the world.

US$1.7B PARTNERSHIP WITH CDC TO MODERNIZE AFRICA’S PORTS

Modern logistics property is currently scarce across much of the Sub-Saharan region. Most ports are managed by decades old technology which cannot adequately meet logistics needs of modern retailing, distribution and manufacturing practices. To bridge this gap, DP World partnered with UK’s development finance institution and impact investor CDC Group in October 2021 to create a US$1.7 billion investment platform.

The platform is aimed at modernization and expansion of ports and inland logistics across Africa, starting in the ports of Dakar in Senegal, Sokhna in Egypt and Berbera in Somaliland.

The platform covers a long-term investment period and DP World is contributing its stakes in three existing ports initially and expects to invest a further US$1 billion through the platform over the next several years while CDC is committing approximately US$320 million initially and expects to invest up to a further US$400 million over the next several years.

“We are excited to announce a partnership with CDC Group that will enable increased investment in ports and logistics infrastructure across Africa, driving efficiency and trade growth.

The partnership will create transformational opportunities for tens of millions of people over the next decade,” Sultan Ahmed bin Sulayem, Group Chairman and CEO, DP World, said.

“By combining our in-depth knowledge of ports and logistics and CDC’s expertise in infrastructure investment in Africa, we can drive greater supply chain efficiencies, provide improved trade connectivity and ultimately enhance value for all stakeholders.”

An additional US$2 billion of new investment has also been planned for new capacity in Senegal, the Democratic Republic of Congo, Angola, Somaliland, and Mali.

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economy and by 2035, and the ports are expected to support stable employment for around 5 million people indirectly.

ACQUISITIONS AND PORT INFRASTRUCTURE EXPANSION

To further expand its Africa footprint, in July 2021, DP World made an audacious US$1.2 billion bid to acquire 100% stake in Imperial Logistics of South Africa. DP world said that the deal will help it to build better and more efficient supply chains for the owners of cargo in Africa In the same year, DP World and the Government of Somaliland inaugurated a new container terminal at Berbera Port, following completion of the first phase of the port’s expansion aimed at transforming it into a major regional trade hub in the Horn of Africa.

The terminal includes a modern container yard with eight rubber tyre gantry cranes (RTGs).

A new port One Stop Service Centre is also currently being built and will be ready in quarter three this year.

A total of US$442 million has been committed by DP to develop and expand Berbera

DP World has planned an additional US$2 billion for new capacity in Senegal, the Democratic Republic of Congo, Angola, Somaliland, and Mali.

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Port whose first phase now complete. Work is already underway to further expand the port to enable it handle up to two million TEUs a year, and multiple large container vessels at the same time.

The Economic Zone which is part of the overall Berbera plan will serve as a center of trade with the aim to attract investment from a range of industries, including warehousing, logistics, traders, manufacturers, and other related sectors.

Still on port expansion, DP World and the government of the Democratic Republic of the Congo (DRC) have signed a collaboration agreement for the development of the deep-sea port at Banana.

“The conclusion of the Collaboration Agreement paves the way for DP World to begin construction within 12 months of the DRC’s first deep-sea port, which will be located at Banana along the country’s 37-kilometer coastline on the Atlantic Ocean,” a statement from DP World indicated.

Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, added: “The port will enhance the country’s export capabilities and give WWW.CEOBUSINESSAFRICA.COM

it affordable access to international markets.”

The development of the Banana Port is expected to bring significant cost and time savings for DRC’s trade as it will attract direct calls of larger vessels from Asia and Europe.

The initial plan by DP World is to develop a 600-meter quay with an 18m draft capable of handling the largest vessels in operation and will have a container handling capacity of about 450,000 TEUs annually, and a 30-hectare yard to store containers.

Not to be left behind, the government of Angola also entered a 20-year concession agreement with DP World to operate the multipurpose terminal at the Port of Luanda, Angola’s largest port The agreement followed an international process during which an evaluation committee selected DP World as the preferred bidder for the concession.

“Our entry into Angola and planned investment in the terminal, as outlined in the agreement, reflects our belief in the potential for further economic growth in the country” said Sultan Ahmed bin Sulayem of Group Chairman & CEO, DP World The Multipurpose Terminal will be DP World’s first operational seaport terminal on the western coast of southern Africa.

DP World said it will invest US$190 million over the 20-year period of the agreement and is already planning to refurbish the existing infrastructure and acquire new equipment to modernize operations and improve efficiency.

The goal is to increase the terminal’s annual throughput to around 700,000 TEUs. In Senegal, the Port operator DP World has begun work on a US$1.1 billion deep-water port at Ndayane. The scheme, which is located 50

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442M AMOUNT OF MONEY COMMITTED

BY DP WORLD TO DEVELOP AND EXPAND BERBERA PORT

GOVERNMENT OF SOMALILAND INAUGURATED A NEW CONTAINER TERMINAL AT BERBERA PORT

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DP world has established itself as a leading provider of worldwide smart end-toend supply chain logistics, enabling the flow of trade across the globe.

kilometer south of Dakar, will be developed in two phases. The first will include an 840-meter quay and a 5-kilometer marine channel while the second phase will add 410 meter of container quay and further dredging.

In Namibia, DP World signed an agreement with Namibia’s !Nara Namib Free Economic Industrial Zone to develop an industrial park at Walvis Bay. According to Suhail Al Banna, CEO for Middle East and Africa at DP World, the development will help Namibia grow as a centre for industrial operations and logistics, creating opportunities and jobs across multiple sectors, including agriculture, fishing, automotive and mining.

Development of the first 50 hectares phase of the zone has the potential to create 3,000 jobs and help attract investment to Namibia of US$230m while the expansion to 1,500 hectares is expected to increase the potential investment to US$1.68 billion with 20,000 job opportunities.

As part of the agreement DP World plans to bring to the project its extensive expertise and track record in establishing and operating some of the world’s leading ports, logistical parks and free zones integrated with railways and trucking.

VENTURING INTO AFRICA’S E-COMMERCE SPACE

ANGOLA ENLISTS DP WORLD TO OPERATE ITS MULTIPURPOSE TERMINAL AT THE PORT OF LUANDA

Over the last decade, a growing middle class and rapid progress in mobile and internet penetration have supported the view that African countries are ripe for e-commerce success. The covid-19 pandemic however accelerated the growth of e-commerce as it became a key driver of trade as people minimized social interactions.

According to Statista, the revenue generated by online shopping in Africa was estimated to be around 27.97 billion U.S dollars, an increase of over 6 billion since 2019. According to estimates made by Statista, the e-commerce revenue in Africa will keep increasing between 2021 and

2025 and might reach a value of over 46.1 billion U.S. dollars at the end of the forecast period.

The immense potential of e-commerce in the continent attracted DP World which in November 2021 announced the launch of its global wholesale e-commerce platform DUBUY. com in Kenya, bringing a new digital trade corridor for Kenya and the East African region.

This expansion follows DUBUY.com’s successful launch in Rwanda earlier this year, where the platform has become a major gateway for trade in the East African region.

The entrance to Kenya, according to the company, is aimed at fostering a secure and reliable way for organizations to develop, expand and crucially, improve supply chain connectivity and resilience as the country recovers from the COVID-19 pandemic.

Mahmood Al Bastaki, Chief Operating Officer of Dubai Trade World said the online marketplace will also solve some of the key challenges facing the growth of e-commerce in Africa, including reliable fulfillment, secure financial transactions, and the movement of goods.

“African businesses are increasingly using digital channels and technologies to engage with suppliers and distributors to create agile supply chains, and digital platforms like DUBUY.com will be key to this shift,” Mahmood said.

“Our technology allows homegrown businesses to transform into international enterprises by providing access to new markets in Africa, the Middle East, and the rest of the world.”

This launch marks the six-month milestone since DUBUY.com first began trading operations in Rwanda during Spring 2021.

In that timeframe, DUBUY.com received more than 500,000 website visits from sellers and buyers in Africa, built a community of more than 4,000 active merchants on the platform, and saw particular success in the sale of automotive supplies and kitchen appliances.

BECOMING AN ADVANCED LOGISTICS COMPANY

DP world has established itself as a leading provider of worldwide smart end-to-end supply chain logistics, enabling the flow of trade across the globe. Its robust investment in the continent will not only enhance trade in the region but also enhance DP World profile in Africa, building on its extensive infrastructure of ports, terminals and economic zones. The investments will also significantly accelerate DP World’s transformation into an advanced logistics company offering end to end supply chain services to the owners of cargo. CBA 64 CEO BUSINESS AFRICA

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DIGITALTECH AFRICA

Demand for digital infrastructure drives up investments in Africa’s data centers

By Elly Akoko

Africa is expected to attract billions worth of investments into its data centre market on the back of the continent’s growing internet economy.

According to Research and Markets, the Africa data center market size by investment was valued at US$2 billion in 2020 and is expected to reach US$5 billion by 2026, growing at a compounded annual growth rate of 15% during 2021-2026.

According to ReportLinker, the prominent data centre investors in Africa are Africa Data Centers, Icolo.Io (Digital Realty), IXAfrica and MainOne (MDXI).

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Telecom Egypt, NTT Global Data Centers, Paratus Namibia, Rack Centre, Raxio Data Centers, Teraco Data Environments (Digital Realty) which announced construction of US$250 million a new hyperscale data centre in Johannesburg and Wingu are also big players in the space.

ReportLinker an AI-driven market intelligence platform figures indicate the sector gobbled up US$2.6 billion in 2021 with a total of US$5.4 billion set to be invested in the next five years alone. The report further shows that

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US$

5B

AFRICA DATA CENTER MARKET SIZE BY INVESTMENT BY 2026

AFRICA DATA CENTRE IN NAIROBI

data centre markets in South Africa, Kenya, Egypt, Nigeria and Ethiopia will attract the lion’s share of investment. Other states with noticeable investment activity are Morocco, Algeria, Ghana and Ivory Coast.

COVID-INDUCED TRANSITION TO DIGITAL CREATES NEW DEMAND FOR DATA CENTERS

While the Internet of Things (IoT) is not new in Africa, COVID-19 has forced businesses once resistant to digital transformation to embrace tech.

This includes restaurants where more people now order food online, as well as the retail, logistics and education sectors, which in a bid to keep pace with demand, satisfy new expectations and retain customers, are forced to adopt digital solutions.

To store, communicate, and transfer data seamlessly, these businesses are creating more demand for data centers to ensure that their supply chain is not disrupted.

It is an opportunity for investors to plug significant gaps, given that currently, most of Africa’s data is stored elsewhere.

The Economist reported that from the continent’s southern tip “it can take 180 milliseconds for a message to reach Europe and back— long enough to frustrate people trying to trade shares or play games.”

But with new multi-billion dollars investments into data centers, the internet will be brought much closer to users, laying the ground for the advancement of Africa’s tech revolution.

ReportLinker, notes that global cloud service providers such as AWS, Microsoft, IBM, and Oracle are expanding their presence with new cloud regions and as such, it argues that there is “an opportunity for vendors to grow in suburban areas and fuel the demand for hyperscale data centers in Africa.

LOCAL PLAYERS RAMP UP INVESTMENT IN DATA CENTERS

As data demand and cloud adoption continue to cause a surge in traffic, data centres are becoming increasingly important on the continent.

Africa Data Centres says its vision is to unveil various business opportunities and develop a strategic network of partnerships to further strengthen and grow its market share in Africa while providing high-quality interconnected, carrier- and cloud-neutral data centre facilities.

The company recently began the development of a second data centre of up to 20MW of IT load in Kenya and is securing land for a third facility in the country. It has also established other data centres in Lagos, Nigeria and Lomé, Togo. In 2021, another pan-African telco, Airtel Africa awarded Ericsson a turnkey project to relocate and modernize their existing network and core services to a new data centre in Seychelles.

Not to be left behind, Mobile network operator

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also developing facilities in the same park.

GLOBAL PLAYERS SCRAMBLE FOR AFRICA’S DATA CENTER MARKET

In 2021, The United States government announced an investment of US$300m in Liquid Telecom’s Africa Data Centers (ADC), to fund expansion in South Africa and Kenya as well as new builds and acquisitions elsewhere.

Safaricom is deploying a new prefabricated data center in the Ethiopian capital Addis Ababa, as the telco begins to launch operations in the country. Anwar Soussa, managing director of Safaricom Ethiopia, said in December 2021 the company’s first data center has arrived in Addis and the company is working on its network rollout. “At such a monumental time where we are building our network, we are committed to bringing the best telecom technology to Ethiopia. We have invested US$100 million in our first Data Center in Addis,” the company said in a social media post.

While the company did not share specifics around specifications, Pedro Rabacal, Chief Technology Officer at Safaricom Ethiopia, said the facility ‘started off in China’ and was built there over a number of weeks before being delivered to the capital via boat. He added the company is investing around US$300 million into the country in 2022 and more data centers will be rolled out as the network grows.

Safaricom is only one of the many players seeking to have a presence in Ethiopia’s capital.

Others include Ethio Telecom which in May 2021 opened a new Huawei-made modular data center in Addis Ababa and Raxio which in 2021 broke ground on a 3MW facility in Addis Ababa’s ICT Park. Wingu.Africa and RedFox are

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The rapidly expanding Africa data center market has attracted the attention of major global players in the field, stimulating investing and driving further expansion. In December 2021, Equinix, an American multinational company that specializes in Internet connection and data centers announced its plan to acquire MainOne data centers in West Africa for a sum of around US$320 million. The acquisition was to give it a launchpad from whence to expand operations in Africa.

In 2021, The United States government announced an investment of US$300m in Liquid Intelligent Technologies' Africa Data Centers (ADC), to fund expansion in South Africa and Kenya as well as new builds and acquisitions elsewhere. Strive Masiyiwa, head of Econet Wireless, the Zimbabwe operator that owns Liquid Telecom and ADC, said that the money will allow them to expand our facilities in South Africa and Kenya, as well as build new facilities in Egypt, Ghana, and Morocco.

In South Africa, global software giant Oracle also announced that it has chosen Johannesburg as the site of its first African data center, its first cloud region on the African continent, went live in January 2022. According to the company, the Oracle Cloud Johannesburg Region will allow organizations looking to build high-performing, secure applications, meet data sovereignty requirements, and devise robust disaster recovery plans, to meet the rapidly growing demand for enterprise cloud services across the continent. Johannesburg will be among the 14 locations across Europe, the Middle East, Asia Pacific, and Latin America that the company says it plans to open cloud regions to support strong customer demand for Oracle Cloud services. In April 2020, Oracle rival Amazon Web Services (AWS) announced the opening of the AWS Africa (Cape Town) Region, which the cloud giant said has three availability zones, located in separate and distinct geographic locations.

As other global giants’ troop to the continent, Microsoft has been here since 2019 when it opened two data centre regions in South Africa, becoming the first global provider to deliver cloud services from data centres on the African continent.

NO PEAK IN SIGHT FOR AFRICA DATA CENTER’S GROWTH

International Data Corporation estimates public cloud services adoption in Sub-Saharan MARCH 2022

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DIGITAL TECH AFRICA: DATA CENTRE

Even with the tremendous progress that has been made in expanding Africa’s data centre infrastructure, Africa still only accounts for less than 1 per cent of total available global data centre capacity

68 CEO BUSINESS AFRICA

Africa will accelerate at a compound annual growth rate of 25% year-on-year between 2020 and 2025, with this momentum expected to continue. The growth is expected to be driven by a number of factors including robust investment in renewable power, smart city initiatives, and increased support for the digital economy.

Countries such as Egypt, South Africa, Kenya, Morocco, and Ethiopia are actively working toward improving the share of renewable energy in the region’s electricity generation, providing affordable energy to power the energy intensive power grids. Africa is also emerging as a leader in microgrid capacity providing an alternative energy framework for data centers not connected to a reliable grid power. Grid-connected, on-site energy generation or storage plants help data centers control power costs more efficiently by saving on peak demand costs charged by traditional grid facilities.

With the Africa IT infrastructure market expected to reach approximately US$4 billion by 2026, the growth in data generation in Africa is fueling the demand for fast-processing efficient servers and the demand for buildto-suit infrastructure is growing to support specific applications. Several segments such as BFSI, healthcare, transportation and logistics, education, and heavy industries are adopting advanced server systems for efficient services.

All these are expected to further investment into Africa’s data centers.

Smart cities are expected to continue being MARCH 2022

a catalyst to growth of Africa’s data centers.

Diverse as they are, these cities have acted as development catalysts: inducing foreign investment, augmenting infrastructure networks and, more recently, fibre-optic connections.

The huge demand for digital infrastructure has sparked investment in new Data centers further driving market growth. Kenya Technopolis -The Africa Silicon Savanna catalyzed the development of a new Tier III National Data Center which support the Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) in which the government opts to have a private cloud alongside a government cloud. In the next phase, more smart cities are expected to take root across the continent, becoming the seedbeds from which new data centers are built.

Even with the tremendous progress that has been made in expanding Africa’s data centre infrastructure, Africa still only accounts for less than 1 per cent of total available global data centre capacity, according to Xalam Analytics.

However, with the continent’s urban population set to grow by 60 per cent by 2050, characterised by an increasing technology talent pool and an emerging middle class, further investment is expected to flow into the sector to mee the ever expanding demand for cloud storage. “Data centres are at the heart of economic growth in Africa and without them, developing rich and self-sufficient ICT ecosystems cannot happen,” says Stephane Duproz, CEO of Africa Data Centres. CBA WWW.CEOBUSINESSAFRICA.COM

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