AFRICA Inc.
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Af r i c a ’s b u s i n e ss a n d te c h n o l o g y m a ga z i n e
COUNTRY FOCUS: RWANDA - A COUNTRY FOCUSED ON EXCELLENCE | COMPANY PROFILES: ORTHNER & ORTHNER ASSOCIATES - GHANA; HOTEL DES MILLES COLLINES RWANDA; CALLFAST SERVICES - KENYA | INTERVIEW: ANDREW MUTUMA, DHL KENYA
Africa’s Business & Technology Magazine
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VOLUME 1 • ISSUE 1, NO. 1
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1 A FOODWORLD MEDIA PUBLICATION
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CONTENTS
AFRICA Inc.
Af r i c a ’s b u s i n e ss a n d te c h n o l o g y m a ga z i n e
www.africaincmag.com
EDITORIAL
2
New Business-focused Magazine Published in Africa, for Africa
CALENDAR OF EVENTS
4
Africa Inc. focused events
BUSINESS UPDATES
Volume 1 Issue 1. No.1 FOUNDER & PUBLISHER Francis Juma EDITORIAL LEADER Maureen Onyango ADVERTISING & SUBSCRIPTION: Jonah Sambai | Lavender Atieno DESIGN & LAYOUT Frank Bett
8 International Updates 14 African Updates COUNTRY FOCUS
20 Rwanda: A Country focused on Excellence
COMPANY FEATURES TRANSPORT & LOGISTICS
24 Callfast Services: Growing
Strong from a Small Foundation
FoodWorld Media P.O Box 1874-00621, Village Market, Nairobi Kenya Tel: +254 20 8155022, Cell: +254 725 343932 info@foodworldmedia.net www.foodworldmedia.net
RELATED PUBLICATIONS
CONSTRUCTION & REAL ESTATE
28 Orthner & Orthner
Associates: Architects with focus on a Greener Ghana
HOSPITALITY
www.foodbusinessafrica.com SUBSCRIPTION Contact: info@foodworldmedia.net
36 Hotel Des Milles Collines:
Annual Subscription: Kenya: KSh 2900 (VAT inclusive); Africa: US$ 70; Rest of World: US$ 90 (including postage)
EXECUTIVE INTERVIEW
TWO YEARS: Kenya: KSh 5600 (VAT inclusive); Africa: US$ 130; Rest of World: US$ 170 (including postage)
Rwanda’s Hotel with a Remarkable History
42 Andrew Mutuma, Country Manager, DHL Kenya
EVENT HIGHLIGHTS
44 African Health Business Conference
IN THE NEXT ISSUE OCT - NOV 2016
Sector Focus: Healthcare Special Report: Future of Cars & Mobility Country Focus: South Africa WWW.AFRICAINCMAG.COM
Industry Business Africa is published 6 times a year by FoodWorld Media Ltd. The magazine is distributed into a number of sectors of the industry in Africa. The magazine is available through subscription for the other stakeholders in the industry, including suppliers to the sector. Postage is paid at Nairobi, Kenya. Send address changes to FoodWorld Media Ltd by phone or email. Copyright 2016. 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.
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EDITORIAL
NEW BUSINESS-FOCUSED MAGAZINE PUBLISHED IN AFRICA, FOR AFRICA
T
“THE AFRICA INC. MAGAZINE IS FOCUSED ON HIGHLIGHTING THE BUSINESSES, ENTREPRENEURS, INNOVATIONS, AND TECHNOLOGIES FROM THE AFRICAN BUSINESS ENVIRONMENT.”
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hey say that foreigners tell the African story, and that Africa is portrayed in bad light because those who write the African story have no real-life experience of what Africa really is. We agree. As publishers of African-focused B2B magazines over the last four years, the most common question we receive from first time readers of our magazines is, “Is this magazine from here?” By ‘here’, the reader would be referring to Kenya, where we are based or something similar. We get puzzled that majority of our readers probably think that Africa has no stories to tell, or that Africa may not be the source of something unique, world-class and informative like our publications. What we have realised during over the years as a publishing house is that the African story is alive, bold and exciting, not just to Africans or those who reside in Africa but to the rest of the World. The interest in Africa and whatever it is that is happening in Africa is at an all time high, buoyed by the rising economic prospects in Africa, with Africa offering a rare positive investment prospect despite the gloomy global outlook. We have also discovered that Africa has millions of stories to be told, and that we are just beginning to unearth what Africa really is, or its vast potential – and that the World is very interested in the stories coming out of Africa’s industry. This new magazine joins a strong list of our company’s African-focused publications including Food Business Africa and Agri-Business Africa, and magazine inserts Dairy Business Africa and Milling & Baking Africa – industry focused publications that have made their mark on the continent and beyond. Our magazines are focused on bringing the African story to Africa and to the World. We welcome you to join us on this long journey with this new publication. The Africa Inc. magazine is focused
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on highlighting the businesses, entrepreneurs, innovations, and technologies from the African business environment. The bulk of the magazine is made of company features of businesses from the length and breath of Africa, providing our readers with the companies’ history, business essentials, people, products and services and future prospects and plans. The magazine also covers essential news from the World and Africa; African country profiles and news analysis that are critical to the African businessperson, investor, Government official and other stakeholders. The magazine is distributed originally into several African countries and is availed to key decision makers in the following key sectors of the economy: manufacturing and retail; financial services; infrastructure and construction; hospitality; ICT and media; training and consultancy; healthcare; government services; agribusiness; transport, logistics and aviation; and mining, oil and gas – covering the entire profile of the economy. In this issue we are proud to present to you several African businesses including Hotel des Mille Collines from Rwanda, Ghana’s Orthner & Orthner Associates, an architectural firm, and Kenya’s clearing and forwarding firm Callfast Services. The three enterprises showcase the possibilities in Africa’s industry with the same focus on success, even as they operate in very different countries and business environments. Welcome to the first issue of Africa Inc. We hope you can join us soon by giving us the opportunity to have your business story in this premier publication. Have a good read Regards Francis Juma, Publisher.
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AFRICAN INDUSTRY EVENTS CALENDAR
SEPTEMBER 2016 Sector: Manufacturing Date: September 2, 2016 – Nairobi, Kenya Event Name: Manufacturing Indaba East Africa About the event: The conference brings together South
African companies with East African companies from the manufacturing sector Website: www.manufacturingindaba.co.za/ea Sector: Government Date: September 5-6, 2016 – Kigali, Rwanda Event name: The Global African Investment Summit About the event: Conference that targets unlocking the
aspiration of Africa’s largest populated single market, COMESA Website: www.tgaiscomesarwanda.com
Sector: Agriculture & Agribusiness Date: September 5-9, 2016 – Nairobi, Kenya Event name: African Green Revolution Forum (AGRF) About the event: A multi stakeholder partnership and dialogue
forum on agricultural transformation in Africa Website: www.agrf.org
Sector: Infrastructure Date: September 16-17, 2016 – Nairobi, Kenya Event name: Africa Infrastructure Summit About the event: Focus on the institutional capacity building
on PPPs in Africa
Website: www.africainfrastructuresummit.com Sector: Construction & Real Estate Date: September 23, 2016 – London, UK Event Name: West Africa Real Estate Investor Forum About the event: Forum focused on investors with interest in
Western Africa
Website: www.mediceastafrica.com
Date: September 27-29, 2016 – Lagos, Nigeria Event name: Power Nigeria About the event: Conferences and exhibitions targeting the
power industry in Nigeria
Website: www.power-nigeria.com NOVEMBER 2016 Sector: Mining, Oil & Gasw Date: October 31-November 4, 2016 – Cape Town, South
Africa
Event name: 23rd Africa Oil Week About the event: Conference and exhibition on Africa’s oil
industry, with a focus on the upstream sector
Website: www.aow.globalpacificpartners.com/events Sector: Construction & Real Estate Date: November 2-4, 2016 – Nairobi, Kenya Event name: The Big 5 Construct Eastern Africa About the event: International building & construction show
focused on Eastern Africa
Website: www.thebig5constructeastafrica.com Sector: Agriculture & Agribusiness Date: November 17-18, 2016 – Addis Ababa, Ethiopia Event name: 5th Commercial Farm Africa About the event: Conference focused on unleashing Africa’s
agriculture potential
Website: www.cmtevents.com Sector: Financial Services Date: November 24-25, 2016 – Dakar, Senegal Event name: 5th World Congress on Rural & Sustainable
Finance
About the event: Conference on financing of rural agriculture
and financing
Website: www.afraca.org/5th-world-congress-agricultural-ruralfinance
Sector: Healthcare Date: September 27-29, 2016 – Nairobi, Kenya Event name: Medic East Africa About the event: Conferences and exhibitions targeting the
Sector: Government Date: November 24-26, 2016 – Nairobi, Kenya Event name: Latin America, Caribbean and Africa Business
Website: www.mediceastafrica.com
and Latin American Caribbean countries
healthcare industry in Eastern Africa
OCTOBER 2016 Sector: Energy and Utilities Sector: Healthcare • Date: October 6-7, 2016 – Nairobi, Kenya • Event Name: Africa Health Business Symposium About the event: Conference focused on growing the
business of health in Africa Website: www.africahealthbusiness.com
Summit
About the event: Conference on trade ties between African Website: www.lacafricasummit.com
Partnership events are highlighted with a blue coloured background
Organising an event in Africa? Contact us to list your event here. Get more value by seeking an Event Partnership with us and receive digital, print and e-newsletter benefits that will drive stakeholders to your event. Send us an enquiry: info@foodworldmedia.net 6
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Date: March 21-23, 2017 Venue: Kenya School of Monetary Studies, Nairobi, Kenya
www.afmass.com Register your interest today to Speak, Sponsor, Exhibit and/or become a Partner at the region’s major industry trade conference and exhibition
The food and beverage processing and food service sector is on a fast trajectory of growth. With the recent entry of multinationals into the processing, retail and food service into the rest of Africa, capacity building of the sector becomes paramount.
The African Food Manufacturing & Safety Conference offers excellent networking, educational sessions, field visits and poster display sessions that ensure sponsors, delegates and exhibitors derive the best out of the three day event
The African Food Manufacturing & Safety Conference covers a diverse range of topics that add value to the processor, retailer, distributor, regulator and investor in the regionfrom formulations and costs management, market trends, processing and packaging essentials, nutrition and sustainability.
DAIRY
SOFT DRINKS & WATER
Co-located with:
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ALCOHOLIC BEVERAGES
Media partner:
MEAT
FRUITS & VEG
SUGAR & CANDY
Organized by:
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AFRICA INDUSTRY EVENTS CALENDAR
GOVERNMENT
India reviews FDI regulations, opens investment doors to foreign countries Country’s once closed aviation, defence and retail sectors opened up to international players who have struggled to get traction in the country.
INDIA – The government of Nahendra Modi, India’s Prime Minister, has reviewed foreign direct investment (FDI) rules that seek to make India “the most open economy in the world for FDI.” In a major overhaul of FDI rules and regulations in the country in decades, the government eased FDI caps for defense, aviation, retail, pharmaceticals and manufacturing sectors, removing stringent requirements that required government approval for most FDI investments in a move hailed by analysts places India in good stead for future growth and development. “The Crux of these reforms is to further ease, rationalise and simplify the process of foreign investments in the country and to put more and more FDI proposals on automatic route instead of Government route where time and energy of the investors is wasted,” said a statement by the Prime Minister’s office. “This exercise is intended on the one hand to further open up the sectors for more foreign investments in the country 8
and also to make it easy to invest in India,” the statement added. Changes introduced in the policy include increase in sectoral caps, bringing more activities under automatic route and easing of conditionalities for foreign investment. Further, new sectors have also been opened to foreign investments. In the defence sector, the government has removed the previous requirement for access to ‘state-of-the-art technology’ and permitted foreign investment beyond 49% under the government approval route. Further, foreign ownership beyond 49% is possible with the approval of the Cabinet. Producers of high-end technologies like electronics and similar gadgets also have something to smile about after local sourcing norms for single-brand retail trading were relaxed for products deemed as having ‘state-of-the-art’ and ‘cutting edge’ technology. The country has also allowed for 100% FDI in cable networks and mobile TV, retail, e-commerce and food products made in the
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country under the automatic route. Allowing single-brand retail will offer incentives to the likes of American giants Walmart, Apple, and Swedish furniture maker IKEA to open and expand (in the case of Walmart) their footprint in the country. Companies have also been allowed to offer wholesale and retail, removing the requirement that only allowed key retailers like Walmart to offer retail only in India. “The Centre has radically liberalised the FDI regime, with the objective of providing major impetus to employment and job creation in India. This is the second major reform after the last radical changes announced in November 2015. Now most of the sectors would be under automatic approval route, except a small negative list. With these changes, India is now the most open economy in the world for FDI,” said the statement from the Prime Minister’s Office. The new regulations have also raised the FDI limit in scheduled commercial airlines to 100% and opened investments into the duty free, agribusiness (coffee, rubber, palm oil, cardamom and olive oil plantations), and increased foreign ownership in the banking sector to 74% without Government approval. The new regulations also eased investments back home by the so-called non-resident Indians (NRIs), who have been given “special dispensation for investment in construction development and civil aviation sector,” while rules have been relaxed for entities such as companies, trusts and partnership firms, which are incorporated outside India and are owned and controlled by NRIs, with the new rules treating such entities owned and controlled by NRIs at par with NRIs for investment into the country. The regulations have also increased the lower limit for proposals that have to go through the Cabinet Committee on Economic Affairs to ease the approval process.
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Date: March 21-23, 2017 Venue: Kenya School of Monetary Studies, Nairobi, Kenya
www.afmass.com Register your interest today to Speak, Sponsor, Exhibit and/or become a Partner at the region’s only major grains, milling, baking
and feed industry trade conference and exhibition
The African Grains, Milling & Feed Conference covers a diverse range of topics that meet the demands of those with interest in the grains, milling, baking and feed industry in Africa.
The conference offers excellent networking, educational sessions, field visits and poster display sessions that boost the industry like no other event in the region.
Attended by traders, processors, retailers, distributors, regulators and investors in the region, the conference covers a range of topics that add value to the industry stakeholders - from commodity markets, formulations and costs management, market trends, processing and packaging, nutrition, sustainability, and more.
GRAINS
Co-located with:
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MILLING
Media partner:
BAKING
A F R I C A ’ S
G R A I N S ,
M I L L I N G
&
B A K I N G
ANIMAL FEED
M A G A Z I N E
Organized by:
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INTERNATIONAL UPDATES
HUMAN RESOURCES
CEOs say next 3 years more critical than previous 50; believe now or never to transform their company
WORLD – A majority of top global executives believe the next 3 years will be more critical to their industry than the previous 50, according to a recent survey by consultancy firm, KPMG. The KPMG 2016 Global CEO Outlook, reveals that while a majority of CEOs foresee the next few years to be challenging, with expected moderate economic growth, they are optimistic they can successfully manage through this environment. According to the survey, while 72%
of top executives believe the next 3 years will be more critical to their industry than the previous 50, they are confident in their company’s growth prospects. Further 40% CEOs say they are pinning their prospects on significantly transforming their operating model over the next 3 years, up 12% from last year’s survey. Majority of the CEOs are confident in future growth over the next 3 years, with 89% feeling confident in their own company’s growth, 86% confident in their home country’s growth, 85% confident in the growth of their industry and 80% confident in the global economy. The annual study by KPMG International, of nearly 1,300 CEOs from companies across 11 industries in 10 countries, found that CEOs are concerned with a number of critical issues – many of which they indicate they have not previously experienced in their careers. The most pressing concerns for CEOs include customer loyalty (88%); impact of the global economy on their company if
global economic growth is less than they projected (88%); and lack of time to think strategically about the forces of disruption and innovation shaping their company’s future (86%). 65% of those surveyed are concerned that new entrants are disrupting their business models and more than half (53%) believe that their company is not disrupting their industry’s business models enough. Cyber risk rose to the top in the 2016 survey, whereas it was not among the top five risks in 2015, where 72% of CEOs believe their organization is not fully prepared for a cyber event. The survey targeted 1,268 CEOs in 10 key markets (Australia, China, France, Germany, India, Italy, Japan, Spain, UK and US). They came from 11 key industry sectors including automotive, banking, infrastructure, insurance, investment management, life sciences, manufacturing, retail/consumer markets, technology, energy/utilities and telecoms.
ICT
UNCTAD opens new initiative to boost developing economies focus on e-commerce
WORLD - Developing countries should grasp the rapidly growing opportunity of electronic commerce – e-commerce – worth around US$22.1 trillion in 2015, up 38% from 2013, or risk falling quickly behind, the United Nations Conference on Trade and Development (UNCTAD) has said. The UN agency launched a new initiative, called “eTrade for All” at its 4th meeting in Nairobi that brings together international organizations, donors and businesses under
one umbrella to ease developing countries’ access to cutting-edge technical assistance and giving donors more options for funding. By providing new opportunities and new markets, online commerce can help generate economic opportunities, including jobs, says UNCTAD, but challenges remain in developing countries ability to the adopt e-commerce “A huge divide is opening between countries that are exploiting those opportunities and those that are not,” UNCTAD Secretary-General Mukhisa Kituyi said, noting that while more than 70% of people are shopping online in Denmark, Luxembourg and the UK, in Bangladesh, Ghana and Indonesia, for example, just 2% or less of the population buy online. UNCTAD estimates that total world e-commerce to be over US$21 billion, with business-to-business (B2B) and business-to-consumer (B2C) raking in US$19.9
trillion and US$2.2 trillion respectively. This trade is mostly domestic, but is becoming more and more international. UNCTAD data shows that e-commerce is growing rapidly, with emerging economies accounting for most of this growth. China is now the world’s largest B2C e-commerce market, both in terms of sales and in number of online shoppers. Brazil, India, the Republic of Korea and the Russian Federation have also all moved into the top 10 e-commerce markets. The eTrade for All initiative will support developing countries which express an interest in boosting their online commerce with a focus on seven policy areas, including e-commerce assessments, information and communications technology infrastructure, payments, trade logistics, legal and regulatory frameworks, skills development and financing for e-commerce.
“UNCTAD data shows that e-commerce is growing rapidly, with emerging economies accounting for most of this growth.” 10
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AFRICA Inc.
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Af r i c a ’s b u s i n e ss a n d te c h n o l o g y m a ga z i n e COMPANY FEATURES, NEWS, SPECIAL REPORTS AND ANALYSIS TARGETED AT THE KEY DECISION MAKERS IN AFRICA’S INDUSTRY Manufacturing & Retail
Finance & Insurance
Education & Training
Aviation, Transport & Logistics
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Construction & Real Estate
Telecom, ICT & Media
Energy, Oil & Gas
Mining
Government/Public Services
Agribusiness & Biotech
Health Care & Personal Care
Hospitality & Services
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INTERNATIONAL UPDATES
RETAIL
Furniture retailer Ikea to spend US$1.5 billion in India; breaks ground on first shop INDIA – After three years of wrangling and pushing, the world’s largest furniture retailer Ikea has broken ground on a new shop in the southern city of Hyderabad as it plans to spend about US$1.5 billion to open up to 25 stores across India by 2025. The retailer, which got approval from the government late last year to invest in the country, will have its first store open by end of 2017, seeking to tap into India’s US$600 billion market that has so far eluded major
international brands including American retailer, Walmart. It remains to be seen how other major retailers take the recent relaxation of foreign direct investment regulations. However, a number of big corporations including Microsoft, Amazon and Apple have recently announced major investments in the country.
LOGISTICS & DISTRIBUTION
Container weight verification rule enters into force WORLD – A new regulation requiring the gross mass of a container to be verified before it is loaded onto a ship has entered into force this July 2016, ensuring that the millions of containers carried on ships each year are optimally stowed, preventing container stacks collapsing and containers being lost overboard, and reducing the associated injury and loss of life. Some 170 million containers are loaded onto ships each year according to the International Maritime Organization (IMO), the United Nations agency with responsibility for the safety and
security of shipping and the prevention of pollution from ships. The regulations are aimed to develop further measures to complement the existing provisions aimed at the stability and safe operation of ships, including the safe packing, handling and transport of containers, with the key element of this work being the verification of the mass of a packed container. This would complement the existing requirement to declare the gross mass of cargo and containers.
HUMAN RESOURCE TRANSPORT
Tesla’s Elon Musk releases his second Master Plan, to merge Tesla with solar provider, Solar City
US – Tesla, the maker of high-end electric cars and SUVs, including the famous Model S and X car models, has a new master plan and plans to buy out its sister company Solar City, as the company seeks to create a sustainable world driven by electric cars and solar systems. Solar City is America’s largest provider of solar systems, with a massive 32% share of the total market. It was also started by Musk and is run by his cousin Lyndon Rive. The deal values Solar City at US$2.6 billion. 12
According to South African born majority shareholder, and founder of both companies, Elon Musk, Tesla has achieved the original aims it established 10 years ago, and can now focus on the future. This has been defined in a master plan document christened Part Deux, or Part Two in French. Part Deux envisions the company achieving the integration of energy generation and storage; and expanding its products beyond cars and SUVs into everyday vehicles including “heavy-duty trucks and
AFRICA INC. | AUG - SEPT 2016
high passenger-density urban transport”. The company will also focus on autonomous systems to drive the cars of the future; and enable sharing of Tesla cars, with the company planning to launch shared car services in a few years. To enable the realization of the first goal above, the company has struck a deal to acquire Solar City. “Solar and storage are at their best when they’re combined. As one company, Tesla (storage) and SolarCity (solar) can create fully integrated residential, commercial and grid-scale products that improve the way that energy is generated, stored and consumed,” the company said in a statement, in its quest to create “the world’s only vertically integrated sustainable energy company.” Tesla’s ambitions to have full-autonomy of its cars and the planned launch of shared taxi services joins a long list of motor and technology companies that are seeking to do the same, including the likes of Google, Ford Motors, Uber, BMW, among others.
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RECENT HAPPENINGS FROM THE WORLD OF BUSINESS
HUMAN RESOURCES
World Bank Group President appoints Paul Romer as Chief Economist WORLD – The World Bank Group has appointed Paul Romer as World Bank Chief Economist. As Chief Economist, Romer will support the President and the senior management in leading the institution and inspiring the development profession
during this time of transformative change. As leader of the Development Economics Vice-Presidential Unit, his intellectual and strategic leadership will ensure the World Bank Group remains at the forefront of international development knowledge.
Romer is currently a professor at New York University (NYU), Director of NYU’s Marron Institute of Urban Management, and a professor of economics in NYU’s Stern School of Business
ICT
Microsoft acquires LinkedIn to tap into its professionals profiles USA – The biggest professional cloud provider Microsoft has acquired the leading professional connections company LinkedIn in a deal worth US26.2 billion, gaining access to vital data from over 430 million members around the World. “The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” said Microsoft CEO Satya Nadella at the announcement of the deal. “Together we can accelerate
the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet. According to the companies, LinkedIn will retain its distinct brand, culture and independence, with Jeff Weiner remaining CEO of LinkedIn, reporting to Nadella. LinkedIn is the world’s largest and most valuable professional network. The company’s online portal not only connects busi-
ness professionals, but is also used by companies to recruit staff around the World. The portal also delivers newsfeed focused on better business insights to its members. “Just as we have changed the way the world connects to opportunity, this relationship with Microsoft, and the combination of their cloud and LinkedIn’s network, now gives us a chance to also change the way the world works,” Jack Weiner, LinkedIn CEO said.
HEALTHCARE
Report recommends deeper healthcare reforms in China
CHINA - China needs to further reform its health system with a number of critical steps to meet the growing health needs of the population and further control spending increases, despite impressive achievements in healthcare reform and rapid progress toward universal health coverage. According a study by the World Bank Group, the World Health Organization, the Ministry of Finance, the National Health and Family Planning Commission, and the Ministry of Human Resources and Social Security of China, the reforms include systemic and institutional reform and innovation, adoption of a tiered service-delivery sysWWW.AFRICAINCMAG.COM
tem, a return to greater reliance on community health care and less on more expensive hospital care. According to the study, Deepening Health Reform in China, Building High-Quality and Value-Based Service Delivery, China has lifted more than 600 million people out of poverty in the last three decades and achieved noteworthy successes in health. The country has substantially increased investment since the reforms started in 2009 to expand health infrastructure; strengthened the primary-care system and achieved near-universal health insurance coverage in a relatively short period.
Further, it has reduced the share of outof-pocket expenses in total health spending; continued to promote equal access to basic public health services; deepened public hospital reform; and improved the availability, equity and affordability of health services. It has also greatly reduced child and maternal mortality and rates of infectious diseases, and improved the health and life expectancy of the Chinese people. However, an aging population, with those over 65 years reaching 140 million, and a surge in non-communicable diseases such as cancer, diabetes and heart disease mean that the country faces many challenges in reforming and developing its healthcare system. The study makes an urgent case for China to reform and start instituting a “people-centered” integrated healthcare system to meet new challenges, in the face of healthcare costs and a reduction of spending on healthcare due to a slowing economy. The report recommends that China maintain the goal and direction of its healthcare reform, and continue the shift from its current hospital-centric model that rewards volume and sales, to one that is centered on primary care, focused on improving the quality of basic health services, and delivers high-quality, cost-effective health services.
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INTERNATIONAL UPDATES
INTERNATIONAL BRIEFS
MANUFACTURING
Dubai launches Industrial Strategy
HEALTHCARE
Nestlé and Samsung partner to focus on healthy living tech SWITZERLAND - Nestlé and Samsung, two of the World’s leading companies, have launched a research collaboration that aims to explore the potential of nutrition science and digital sensor technologies to provide new insights into healthy living. The partners plan to develop a new digital health platform to provide individuals with more personalised recommendations around nutrition, lifestyle and fitness than previously possible. Their aim is to empower people to better manage their health and wellness using one simple, connected entity, rather than multiple platforms and devices. The long-term goal of the collaboration is to combine ‘Internet of Things’ technology (the growing ability of devices in our lives to connect with each other) with breakthrough nutrition science, to provide people with greater ownership of their quality of life. ICT
Indian company launches world’s cheapest smartphone INDIA – An Indian IT company Ringing Bells has unveiled the World’s cheapest smartphone, to the consternation of observers around the World. The firm’s Freedom 251 smartphone has a number of features including a 4-inch display, 1.3-GHz quad-core processor, 3.2 MP Rear and 0.3 MP Front Camera, 3G Support, 1450 mAh battery and 8 GB of storage. Listed at 251 rupees (US$3.65), the phone comes in at a prize that has shocked the mobile phone community, but which could revolutionise India’s mobile phone devices market, one of the biggest in the World. “This seems to be a joke or a scam,” The Economic Times quoted an upset Pankaj Mohindroo, national president of the Indian Cellular Association, saying that the matter was being investigated by various government authorities.
UAE – The emirate of Dubai has launched an Industrial Strategy that aims to elevate the emirate into a global platform for knowledge-based, sustainable and innovation-focused businesses. The Dubai Industrial Strategy is based on five key objectives that will serve as the foundation for the country’s industrial future, notes the strategy document. The strategy aims to increase the total output and value-addition of the manufacturing sector, enhance the depth of knowledge and innovation, make Dubai a preferred manufacturing platform for global businesses, promote environment-friendly and energy-efficient manufacturing and make Dubai a centre for the global Islamic products market. The Strategy has further identified six priority sub-sectors: aerospace, maritime, aluminium and fabricated metals, pharmaceuticals and medical equipment, food and beverages and machinery and equipment. ICT
End of an era as Yahoo! sold to Verizon US – One of the leading early entrants into the Internet technologies Yahoo! has been sold to US technology giant Verizon Communications for about U$4.83 billion in cash, bringing to a close one of the leading giants in the industry. Yahoo!, which popularised personal email and has a popular news website, ranging from financial to sports news, has faced hard times, as the likes of Google, Facebook and Apple soared, as new technologies and the rise of social media boomed, leaving the Internet pioneer struggling. “The acquisition of Yahoo will put Verizon in a highly competitive position as a top global mobile media company, and help accelerate our revenue stream in digital advertising,” Lowell McAdam, Verizon
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Chairman and CEO, said of the transaction, which provides his company with a global audience of more than 1 billion monthly active users, 600 million use its mobile platform Yahoo’s buy adds to Verizon’s acquisition of AOL last year, another internet pioneer, and will build on the company’s search, communications and digital content products. “Yahoo and AOL popularized the Internet, email, search and real-time media. It’s poetic to be joining forces with AOL and Verizon as we enter our next chapter focused on achieving scale on mobile. We have a terrific, loyal, experienced and quality team, and I couldn’t be prouder of our achievements to date,” said Marissa Mayer, CEO of Yahoo
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According to the strategy, these sub-sectors were chosen based on their importance to the Dubai Industrial Strategy and Dubai Plan 2021, as well as their future growth prospects, export potential and midterm to long-term economic impact. He added: “With the launch of the Dubai Industrial Strategy, we are taking one more step towards the future. We have laid down a strong foundation that blends our strategic location and infrastructure with our ambition, confidence and experience. Today, we have put in place the basic framework needed to compete globally in the industrial sector and develop national talents. We are one step closer to achieving the goal of making Dubai a homeland for innovators, a favourite place to live and work in, a global economic hub and a preferred destination for visitors,” said His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai during the launch.
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RECENT HAPPENINGS FROM THE WORLD OF BUSINESS
FINANCIAL SERVICES
Global FDI surpasses pre-crisis peak, reach US$1.76 trillion in 2015 WORLD – A new report by a leading UN agency shows that global foreign direct investment (FDI) flows soared in 2015, providing a glimmer of hope that the tide could be changing. The World Investment Report 2016 subtitled Investor Nationality: Policy Challenges, released by the United Nations Conference on Trade & Investment (UNCTAD) however, cautioned against over-optimism. “A 38 per cent jump in flows, to US$1.76
trillion dollars, gives hope that global FDI is at long last returning to a growth path. But we are not yet out of the woods,” UNCTAD Secretary-General Mukhisa Kituyi said. The report notes that a surge in global cross-border mergers and acquisitions to US$721 billion, from US$432 billion in 2014, was the principal factor behind the global rebound. Those acquisitions were due to large corporate reconfigurations by multinational enterprises, including shifting their headquarters, for strategic reasons
and for tax inversion purposes. However, discounting these large-scale corporate reconfigurations implied a more moderate increase of about 15% in global FDI flows in the year. The value of announced greenfield investment remained at a high level, at $766 billion, while inward FDI flows to developed economies almost doubled to US$962 billion.
MANUFACTURING
dollarshaveclub.imgix.net
Unilever acquires online start-up Dollar Shave Club as online sales soar
UK – Leading Anglo-Dutch company Unilever has acquired Dollar Shave Club, a California, US based online membership seller of shaving and male grooming products, as the emergence of online players
in the personal care industry threatens to take a shine off established brands. Founded in 2012 with its cheap and convenient offering of male shaving solutions to its members through an online subscription service, the company has grown into a full male grooming business that has transformed the shaving category with its lifestyle brand empowering 3.2 million members. The company had turnover of US$152 million in 2015, and is on track to exceed US$200 million in turnover in 2016, says Unilever. Analysts say that Unilever has bought the company for US$1 billion, a meteoric figure for a company that has yet to reach its
fifth year in operation. Beyond shaving, the company’s brands include men’s personal wash, skin care and hair styling products. The buy-out of Dollar Shave Club by Unilever provides the company with an entry into the shaving business in the US that is dominated by Proctor & Gamble’s Gillette brand. Online shaving solution providers, lead by Dollar Shave Club have grabbed a 5% market share in the highly lucrative US market, taking share from leading brands like Gillette, that have also been forced to start their own membership clubs in order to defend market share.
TRANSPORT & LOGISTICS
Uber gives up fight in China, merges with Didi
chinabusinessnews.com
Deal also includes Didi investing in Uber and makes Didi the leader in cub hailing services in main markets
CHINA – After spending upwards of US$2 billion to fight for market share in the World’s biggest consumer market place China, US-based Uber taxi has thrown in the towel, merging its operations with rival Didi Chuxing. Uber, present around the World, where it is either loved or hated especially by regular WWW.AFRICAINCMAG.COM
taxi service companies and individuals, and some regulators in a number of cities and countries, has been in China for two years, losing as much as US$2 billion, as it fought to gain market share in the country, according to Bloomberg. “In just two years (we have) exceeded even my wildest dreams. We’ve grown super fast and are now doing more than 150 million trips a month,” according to Uber’s co-founder and CEO, Travis Kalanick. “This is no small feat given that most U.S technology companies struggle to crack the code there. That’s why I’m so proud of what our amazing China team has accomplished,” he added, affirming the tough regulatory environment foreign operators in the technology space find themselves in in China. But two years of seeking to unseat China-based Didi in China, where a fifth of
the world’s population live, has been costly to both Uber and Didi, hence the truce. “Uber and Didi Chuxing are investing billions of dollars in China and both companies have yet to turn a profit there. Getting to profitability is the only way to build a sustainable business that can best serve Chinese riders, drivers and cities over the long term. As an entrepreneur, I’ve learned that being successful is about listening to your head as well as following your heart,” Travis said when announcing the deal. Didi’s deal with Uber also enables Didi to invest US$1 billion in Uber’s global company, taking a 20% stake in the company. Didi has aggressively grown its muscle to ensure that it has the lead in China, last year merging with its main rival in the country Kuaidi to form Didi Chuxing. Apple also mid this year invested US$1 billion in the company.
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AFRICAN UPDATES
INTERNATIONAL TRADE
Barclays says Africa will be a victim of Brexit vote Bank says Africa could lose export markets, tourism and aid, but some sectors see uptick from UK market after Brexit
AFRICA – The vote by the UK electorate to leave the European Union (EU) in June this year will impact Africa, adding further gloom to a continent affected by poor commodity prices and falling economic growth, the bank says, quoted by Business Insider. It may be miles away from Africa, but the decades old link between the UK as an investment and trade hub will be strained as the UK untangles itself from a 40 year relationship it has had with the EU, affecting investment flows, aid, tourism, markets for Africa’s produce, among others, especially if the UK goes into a recession as predicted by major thought leaders from Barclays, Credit Suisse and even the IMF. According to research by Barclays, Brexit’s economic impact on Africa, and especially sub-Saharan Africa, could be major and highly damaging to the continent’s burgeoning economies. “Post-Brexit, we see growth in subSaharan Africa halving to just 1.4% in 2016, the slowest pace in decades, due principally to sharply weaker growth outlooks in subSaharan Africa’s three biggest economies: Angola, Nigeria, and South Africa, which
together account for nearly three fifths of sub-Saharan African GDP,” said a group of analysts from Barclays led by Peter Worthington in a note. The bank has identified seven key reasons Africa’s growth is at risk from Brexit. These include falling demand from the UK consumers, which will impact countries that export raw materials; falling prices of key commodities that could hit countries reliant on exporting minerals, ores and other commodities; and falling tourism numbers due to weak economic prospects in the UK market, affecting tourism focused economies from Kenya to South Africa. Other reasons given by the bank include a reduction in Africans who could find work in the UK and Europe in the near future, which will affect remittances back into Africa; dwindling inflows aid into Africa if the UK and EU economies suffer critical damage that could lead to African economies losing the vital aid money for infrastructure, education and health; the increased risk aversion will increase financing costs and shrink capital inflows into sub-Saharan Africa; and a reduction in returns from investments by African companies, especially by South African companies which have a number of investments in the EU. However, the bank says that it is impossible to predict how the Brexit will ultimately affect the continent. “Quantifying the aggregate impact of all these factors is challenging, especially because of the many feedback loops between financial markets and the real economy, and the interlinking second order, multiplier, and lagged effects as the Brexit shock reverberates across borders around the global economy.
Moreover, even once the UK triggers Article 50 (the procedure to formally initiate divorce proceedings) it is likely to take at least two years to negotiate the terms of the UK’s exit from the EU. Until these terms are clear, the ultimate effect of Brexit will be obscured by much uncertainty.” Other notable companies and research companies agree with Barclays. EU-Africa and UK-Africa trade could be affected by the Brexit vote, with effect on Africa comes in faster than anticipated, especially its effect on suppliers of manufactured and agricultural goods to the EU and UK. With two-way trade between Africa and the EU and the UK valued at US$170.1 billion and US$20.7 billion in 2015, amounting to 25% of Africa’s trade figures according to Bloomberg, the effect on Africa could be severe. But some sectors of the economy could gain. According to a survey by Barclays, most of the retailers in the UK surveyed saying that post-Brexit they are considering changing their sources of supply with 38% planning to boost their sourcing from Africa, potentially working in favour of Africa. In the agricultural sector, there could also be benefits, with the EU safety requirements acting as impediment to Africa’s export potential in a number of key commodities. “The plant health regulations they have in the EU are very strict,” Justin Chadwick, the chief executive officer of South Africa’s Citrus Growers Association told Bloomberg. “The U.K. does not have any citrus at all. Their plant health regulations could be less onerous. And on tariffs, because they do not have a local industry to protect, they could negotiate differently to when they were part of the EPA.”
PERSONAL CARE
French brand L’Oréal boosts African focus, invests in new R&D facility SOUTH AFRICA – French beauty products giant L’Oréal has inaugurated its new Research & Innovation Center as it boosts its focus on African hair and beauty. “Sub-Saharan Africa is one of the fastest growing regions for L’Oréal. Our new research arm in South Africa will solidly enable us to continually create the beauty products of the future for our African consumers,” according to Alexandre Popoff, 16
Executive Vice-President Eastern Europe and Africa, Middle East. The centre will study African hair and skin specificities as well as the beauty routines and expectations of sub-Saharan consumers and will cooperate with the African scientific ecosystem, universities, dermatologists, natural biodiversity centres as well as hairdressers. “By opening this new Research &
AFRICA INC. | AUG - SEPT 2016
Innovation Center, we are spearheading L’Oréal Research for the African continent. We are showing our determination to go further in innovations for the African beauty market. We are starting with hair and our ambitions are much broader and cover the body, hygiene, skin care and makeup categories,” said Laurent Attal, Executive Vice-President of Research and Innovation.
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RECENT HAPPENINGS FROM AFRICA’S BUSINESS SCENE
RETAIL
Rest of Africa hot spots for investment, could take priority from South Africa
AFRICA – Cities in Kenya, Nigeria and Cameroon are projected to post faster growth in consumer expenditure in the 15 years to 2030 than cities in South Africa, potentially driving more investment into the region instead of South Africa, according to a recent report. According to the report, The Doing Business Beyond South Africa – Growth Opportunity in sub-Sahara African Cities released by Euromonitor, a research company, aggressive growth in consumer expenditure point to the continued importance of the rest of the continent as a growth driver. “Even though South African cities are some of the region’s most developed consumer markets, future growth potential will increase elsewhere,” says the report. The report states that despite short-term challenges, formal retailing in countries such as Kenya, Nigeria and Cameroon
offer substantial investment and business opportunities in the medium- to long-term for retailers. “South Africa is struggling to maintain its reputation globally as the best place for multinational companies to establish themselves in Sub-Saharan Africa. The lack of talent and relatively high cost of retention alongside political instability during the 2010s represents major shortcomings in the country’s business environment.” The survey says that companies will increasingly be attracted to enter the rest of the continent through other cities because of changing conditions and better prospects. “Top corporations are already recognising the importance of having a broader mind set and are choosing business locations that align with their priorities.” According to the report, Kisumu (280%), Mombasa (230%) and Nairobi (220%) in Kenya will post the highest
growth in consumer expenditure. Abuja (170%) and Cameroonian city of Yaounde (170%) will be hot spots of growth in the continent, posting impressive growth between 2015 and 2030. Cities like Lagos, Johannesburg, Pretoria, Cape Town and Durban will together account for 53%, or US$88 billion in constant value terms, moderate growth figures but from an already high base. However, challenges remain in the quest of multinationals to take over in Africa, especially the fact that local companies have also upped their game, and are making it harder for the big giants to enter the market unchallenged. “Africa-based companies are strengthening their competitive muscles as local providers by capitalising on their local knowledge of consumers, suppliers and distribution networks,” notes the report. It gives an example of the Walmart-owned Massmart that has grown its footprint in the rest of Africa from 10 to only 25 during the 2010-15 period, while Shoprite, a South African retailer, has doubled its footprint in the region to 300 during the same time. In June, French retail group Carrefour opened its first store in sub-Sahara Africa in Nairobi, Kenya instead of first going through South Africa, lending credence.
MANUFACTURING
Coca-Cola Beverages Africa commences operations as Africa’s biggest bottler takes shape The company also opens new plant in Mozambique, growing its regional footprint AFRICA – The newly formed Coca-Cola Beverages Africa (CCBA) has began operations as Coca-Cola and two of its biggest African bottlers join forces to create a behemoth that covers South Africa to Ethiopia, Kenya to Nigeria and Ghana. CCBA brings together the African nonalcoholic ready-to-drink bottling interests of SABMiller, the Coca-Cola Company, and Gutsche Family Investments, owners of the Coca-Cola Sabco franchise. This follows merger approval in all the 11 countries that the new company will initially serve, with plans to increase the number to 14 countries by the end of 2017. The merger brings Coke’s Dasani together with water brands from SABMiller across the region, bringing to an end WWW.AFRICAINCMAG.COM
SABMiller’s encroachment into the water category in the last decade through buyouts of established brands including the Keringet in Kenya, Ambo in Ethiopia and Ruwenzori brand in Uganda. SABMiller has been the largest bottling partner of Coca-Cola beverages in Africa, with the merger expected to give the new unit significant benefits, while Gutsche Family Investments has been been the majority owner of Coca-Cola Sabco, present in 7 countries in Africa. The new company, the largest Coca-Cola bottling company in Africa, will produce and distribute about 40% of all Coca-Cola beverage volumes in Africa and is the 10th largest Coca-Cola bottler worldwide. CCBA is headquartered in South Africa and it will
manufacture and sell 40 brands from more than 30 African bottling plants. With the end of the merger process, CCBA has operations in a number of key countries in the East, West and South African regions: South Africa, Namibia, Kenya, Uganda, Tanzania, Ethiopia, Mozambique, Ghana, Mayotte, Comoros and Nigeria. Botswana, Swaziland and Zambia are scheduled to join CCBA by end of 2017, according to the company. Meanwhile, Coca-Cola has opened a new US$130 million bottling plant in Matola Gare in Mozambique as it continues to fulfil its US$17 billion investment pledge into Africa. The new plant employs 400 fulltime employees.
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AFRICAN UPDATES
INTERNATIONAL AFRICAN BRIEFS BRIEFS HUMAN RESOURCES
EABL gets new CEO as Ireland takes London role KENYA – East Africa’s biggest beverage operator East African Breweries has a new CEO after Charles Ireland who has been leading the company leaves for a new role in London. Andrew Cowan, who has been the Country Director for Diageo Great Britain, has taken over as the new Managing Director with effect from 28th July 2016. He has also been serving as an alternate director to Nick Blazquez at the EABL Board. Andrew joined Diageo in 2008 as Commercial Director for Northern Ireland, with earlier roles in the FMCG industry, including positions held at GlaxoSmithKline and Boots Plc. The former MD, Charles Ireland, has been appointed to the new role of General Manager, Great Britain, Ireland and France, based in London.
EDUCATION
Stellenbosch University to give Afrikaans and English equal status SOUTH AFRICA - Stellenbosch University is set to adopt a revised language policy, which will effectively give English and Afrikaans equal status, reports BD Live. The university council approved the proposed new language policy with the amendments proposed by senate. However, the decision is said to have led to a walk out by some council members who wanted the university to maintain Afrikaans as the main language. Council Chairman, George Steyn said by approving the proposed new language AVIATION
Ethiopia takes delivery of first Boeing A350 XWB
HUMAN RESOURCES
Innscor Africa gets new CEO as Toni Fourie leaves ZIMBABWE – Toni Fourie, who has been the Group Chief Executive for Innscor Africa, the Zimbabwean conglomerate tha owned the famous Nandos brand, has resigned effective August 21, leaving the Group that has undergone drastic changes in the short time he was at the helm. Zimbabwean Julian Schonken who has been the director light manufacturing business at the company will replace Toni from September 1, who is South African and joined the company in 2014. Under Toni’s watch, the company unbundled its quick-service restaurant business Simbisa Brands that will now run its Nandos and other restaurant businesses, with the aim of making the main company to focus on its “light manufacturing of food and other FMCG products” business line.
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policy, council has expressed its unequivocal support for multilingualism, without excluding students who are not proficient in either Afrikaans or English. The policy explicitly makes provision for students who prefer to study in Afrikaans, while also improving access to education for students who are proficient in English only. “The new language policy acknowledges Stellenbosch University as a national asset and reaffirms our commitment to the users of Afrikaans, English and isiXhosa, he said – BD Live
ETHIOPIA - Ethiopian Airlines has become the first airline from Africa to take delivery of the Airbus A350XWB aircraft and the first airline in the world to fly the ultramodern airplane in African skies. The aircraft offers wider seats in business and economy classes, the lowest twin-engine noise level, advanced air conditioning technology and full LED mood lighting that enhance passenger comfort and reduce fatigue during long flights. “The fact that we are ushering in another first to Africa in a span of four years is an affirmation of our continuing pioneering role
in African aviation. It is also a testimony of our commitment to give our passengers the very best travel experience, with the latest industry products and services. On behalf of all my colleagues at the Ethiopian family, I am delighted to see Ethiopian to continue making Africa First in Aviation Technology,” said Tewolde Gebremariam, Group CEO of Ethiopian. All seats are fitted with high-definition touchscreen personal monitors and a higher selection of movies, television series and audio channels. Inflight Wi-Fi connection will be made available on the aircraft in the future, when the internet service goes operational. The A350XWB’s innovative technology improves performance in operation. Its revolutionary airframe and simplified systems have optimized fuel burn, maintenance costs and reliability, and its engines have the lowest carbon dioxide CO2 emissions of any in the wide body category. The company has ordered 14 Airbus A350XWB aircraft.
MANUFACTURING
Japan Tobacco seals deal for Ethiopia tobacco firm ETHIOPIA - Japan Tobacco International (JTI) has sealed a deal to invest in Ethiopia’s tobacco monopoly tobacco maker in one of Africa’s most populated countries, according to the Addis Fortune. The deal, a US$500 million investment that gives JTI a 40% stake in Ethiopian Tobacco Enterprise beat other international tobacco giants including British American
AFRICA INC. | AUG - SEPT 2016
Tobacco (BAT) and Philip Morris which had bid US$250 million and US$130 million respectively. The deal gives the company a 10year monopoly in the tobacco industry in Ethiopia. Ethiopia offers a significant investment potential in tobacco, considering its 100 million population and growing economy. WWW.AFRICAINCMAG.COM
RECENT HAPPENINGS FROM AFRICA’S BUSINESS SCENE
GOVERNMENT
AU launches African e-Passport to ease travel AFRICA - The African Union (AU) has launched its electronic passport (e-Passport) during the AU Summit that took place in Kigali, Rwanda in July 2016 with the goal of fostering intra-Africa trade, integration and socio-economic development. The e-Passport project falls within the framework of Africa’s Agenda 2063 and has the specific aim of facilitating free movement of persons, goods and services around the continent. The continent’s
leaders first agreed on the initiative in 2014, as an effort towards realizing integration and unity on the continent. The Chairperson of the African Union Commission (AUC), Dr. Nkosazana Dlamini Zuma, has described this initiative as both symbolic and significant, calling it a “steady step toward the objective of creating a strong, prosperous and integrated Africa, driven by its own citizens and capable of taking its rightful place on the world stage.” The concept of unrestricted movement
of persons, goods and services across regions and the continent has been outlined in the Lagos Plan of Action and the Abuja Treaty. A number of countries including Seychelles, Mauritius, Rwanda, and Ghana have taken the lead in ensuring easier intraAfrica travel by relaxing visa restrictions and in some cases lifting visa requirements altogether. The continent hopes to achieve the dream of visa-free travel for African citizens within their own continent by 2020.
MANUFACTURING
Bidco Africa signs animal feeds partnership with Land O’Lakes
KENYA – The American agribusiness and food cooperative Land O’Lakes, Inc. and Bidco Africa have created a new joint venture called Bidco Land O’Lakes, that builds on Bidco Africa’s animal feed business. Through the deal, Land O’Lakes, Inc. and Bidco Africa have each assumed a 50/50
ownership of the JV called that combines the animal feed leadership of the Land O’Lakes, Inc. business with Bidco’s market knowledge and distribution networks across East Africa, along with its rapidly growing feed business.
Bidco Africa is one of the largest manufacturers in the Eastern and African region and a leader in the vegetable oils and fats, hygiene products and laundry detergents in East and Central Africa. The deal was sealed in March this year, but the official announcement was released in early August this year. Land O’Lakes, a leading cooperative in the US, has been present in Africa since 1981 through its Land O’Lakes International Development, a non-profit venture that has been active in the agribusiness environment in the region, working with other agencies to boost animal production. “This is an exciting new chapter for us, and will allow us to experience meaningful growth in the feed sector, while making a positive impact on local farmers,” said Vimal Shah, President and CEO of Bidco Africa. The Bidco Africa deal is the second commercial investment in Africa by Land O’Lakes following a recent joint venture with Villa Crop Protection in South Africa, a crop protection company, and reflects the cooperative’s accelerated focus on Africa.
REAL ESTATE
Old Mutual to invest US$700m in Nigeria real estate, agriculture NIGERIA - Anglo-South African financial services firm Old Mutual and Nigeria’s sovereign wealth fund have signed agreements to set up two funds to invest in real estate and agriculture in Africa’s most populous nation. Old Mutual and Nigeria Sovereign Investment Authority (NSIA) said they would jointly raise a $500m fund to invest in real estate and another $200m to spend WWW.AFRICAINCMAG.COM
on agriculture projects in Nigeria. Chief executive of NSIA, Uche Orji, said both parties will each commit $100m as initial commitment for the real estate fund and $50m for the agriculture fund. “We are looking at office towers, commercial real estate,” Orji said. “We are investing equity in agriculture. We are looking at farming with emphasis on export.”
Nigeria established the Sovereign Investment Authority (SIA) in 2011 with $1bn of seed capital in an effort to manage oil export revenues. The new funds, which will stay invested for up to 12 years, will target returns of around 20%, Hywel George, chief investment officer at Old Mutual said.
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AFRICAN UPDATES
AFRICAN BRIEFS TELECOMS
Orange completes acquisition of Airtel Burkina Faso BURKINA FASO – French telecoms operator Orange has announced that, together with its subsidiary Orange Côte d’Ivoire, it has completed the acquisition of 100% of the mobile operator Airtel in Burkina Faso. The finalisation of the deal follows the signing of an agreement with Bharti Airtel International (Netherlands) BV in January 2016. Orange has obtained all the official approbations necessary to complete this transaction. Airtel is the 2nd largest mobile operator in Burkina Faso, with about 4.6 million customers. With 18 million inhabitants and a relatively high mobile penetration rate for the region (80% of the population), Burkina Faso becomes the 20th country in Africa and the Middle East to join the Orange group. HUMAN RESOURCES
Uganda Breweries names Ocitti the MD UGANDA - Mark Ocitti Ongom has taken over as the Managing Director at leading brewer Uganda Breweries Limited (UBL) with effect from 1st August 2016. Mark takes over from Nyimpini Mabunda, who has been the MD of UBL for the last 3 years. Mark Ocitti becomes the second Ugandan national joined EABL in August 2014, as Managing Director for EABL International (EABLi), which is responsible for EABL’s business in South Sudan, Rwanda, Burundi and DRC. According to the company, during his tenure at EABLi, Mark’s strength in commercial and operational experience enabled him to successfully develop a robust distribution network in South Sudan and Rwanda, growing the Tusker brand into the number one preferred beer brand in South Sudan; as well as achieving and maintaining market leadership in premium spirits in both Rwanda and South Sudan.
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MANUFACTURING
GE developing Africa Innovation Centre to focus on African solutions SOUTH AFRICA – American conglomerate GE is developing its first African-focused Innovation Centre in Johannesburg, South Africa to leverage local talent, skills and knowledge to address Africa’s toughest challenges. The centre, opening in June next year, will provide the tools and space for GE to collaborate with local customers to design uniquely African solutions to business challenges. These pilot solutions will be commercialised by local business teams. “The GE Africa Innovation Centre will work with our customers and partners, leveraging our global expertise - our people and processes - to find and apply solutions that work,” says Jeff Summers, of GE. “Our team is committed to finding local and global solutions to African opportunities, leveraging the best of GE and global
methodologies, technologies and tools.” The innovation centre project follows the 2014 commitment by GE to spend US$50 million in South Africa to develop innovation and skills. The Centre includes an exhibition space ideation, workspace, and a learning and development space. It will also include a physical and virtual showcase of GE Healthcare’s product and services technology with a virtual connection to be maintained to the GE Healthcare Institute in Nairobi, which is currently under development. The 2,700m2 facility will be the first green and (Leadership in Energy and Environmental Design) (LEED) certified building in Sub-Saharan Africa. Thomas Konditi, President & CEO Africa for GE Transportation, stressed that innovation was vital for African growth. he said.
HEALTHCARE
Cipla to build SA’s first biotech manufacturing facility SOUTH AFRICA – Indian pharmaceutical giant Cipla plans to invest R1.3 billion (US$95 million) in its proposed biotech subsidiary into the country’s first biotech manufacturing facility, for the production of biosimilars. Cipla Ltd owns Cipla Medpro, South Africa’s third largest pharmaceutical manufacturer, as well as Cipla BioTec, a biotechnology company focused on affordable and accessible biopharmaceuticals. “Biosimilars are important to enable access to advanced cancer and autoimmune treatments. These treatments are only used by about 8% of patients who should be treated worldwide mainly due to the high costs of these drugs. Biosimilars are as safe
and effective as the original treatment and are starting to be introduced worldwide. However, biosimilars remain too expensive for broad use outside of major western markets. ” said Steven Lehrer, Director of Cipla BioTec. The factory, which will be located in the Department of Trade and Industries Special Economic Zone of Dube Tradeport in Durban, will manufacture biosimilar drugs made from living organisms and used in the treatment of cancer and other diseases. Construction is scheduled to start in early 2017, with full operations expected to commence in the third quarter of 2018. At full capacity, the facility is expected to create upto 300 jobs.
FINANCIAL SERVICES
Barclays’ new CEO to drive Africa growth strategy SOUTH AFRICA - Barclays Africa Group has announced the appointment of Peter Matlare as Deputy Chief Executive Officer with responsibility for the rest of Africa banking operations with effect from 1 August 2016. Peter, who was the CEO of the South African-based, African-focused manufacturer Tiger Brands till early this year when he left after the company’s foray into
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Nigeria went awry, joins the executive side of Barclays Africa as the parent company is scaling down its African operations, and where he has also been a non-executive director. During his tenure at Tiger Brands, Peter led forays into Ethiopia, Kenya, Cameroon and Nigeria as Tiger Brands grew its African footprint.
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RECENT HAPPENINGS FROM AFRICA’S BUSINESS SCENE
MINING, OIL & GAS
Helios, Vitol seal major investment in Oando Plc.
NIGERIA – Nigeria’s leading indigenous energy group, Oando Plc, has announced a US$210 million investment in its downstream operations by HV Investments
II, enabling the company to boost its investments in the Nigerian petroleum sector. HV Investments II, a joint venture by Helios Investment Partners, an Africafocused private investment firm and the Vitol Group, a trader of energy commodities will take a 49% stake in the new company, with Oando taking a similar stake, with the residual 2% being taken over by a local entity “This partnership will reinvigorate Nigeria’s downstream sector and create one of Africa’s largest downstream operations,”
Oando Group CEO, Wale Tinubu, said. The new company, to be renamed OVH Energy (OVH), will be led by a local management team, with the initial Board consisting of Wale Tinubu, as the Chairman, Christian Chammas, CEO of Vivo Energy, other Vitol and Helios representatives. The current CEO, Mr. Yomi Awobokun, will continue in his role. The service stations will retain the Oando brand. OVH’s assets will comprise over 350 service stations in Nigeria and will be the second largest downstream fuels company in Nigeria, with a market share of 12%.
DEFENSE
Defense companies QinetiQ and Paramount to collaborate on opportunities SOUTH AFRICA - Africa’s privatelyowned defence and aerospace business company Paramount Group has signed a memorandum of collaboration with UK based QinetiQ to identify areas of mutual interest by sharing opportunities, design, technology and global market intelligence in the defense industry. The agreement will allow QinetiQ and Paramount Group to consider each other
as preferred suppliers for specific projects. The two companies have already identified opportunities across land, sea and air platforms for the joint development of new technologies as well as the enhancement and modernisation of existing capabilities. Both companies are leading providers of international defence and security technologies and services. The agreement is expected to facilitate collaboration on
a number of areas including rotary and fixed wing upgrades, mission systems enhancements, aero structures, unmanned systems and leveraging synergies in the maritime and naval environment. “By working together, QinetiQ and Paramount Group will be able to provide our existing and prospective customers the very best defence and security solutions,” said Steve Wadey, CEO of QinetiQ.”
ENERGY & UTILITIES
AfDB arranges loan Eskom to boost electricity generation capacity SOUTH AFRICA - The African Development Bank (AfDB) and South Africa’s power utility firm Eskom have signed loan facilities worth US$1.34 billion that will boost Eskom’s capital expenditure program. With a plan to invest US$17 billion during the 2016-2020 in its capital expenditure program, AfDB estimates this will help boost electricity generation in Africa by nearly 10%, heralding progress toward the
Bank’s vision to achieve universal access to energy by 2025 under the New Deal for Energy in Africa. AfDB has arranged US$965 million with nine commercial banks, representing the largest syndicated A/B loan arranged to-date in Africa. By 2020, Eskom’s capital expenditure program is expected to increase SA’s electricity generation by nearly 11,000 MW and expand its transmission network
by over 9,500 Km. “South Africa has the third most attractive renewable energy market across emerging markets (behind China and Brazil) and this program, spearheaded by the South African Department of Energy, is an example of how to approach green growth in Africa,” said Stefan Nalletamby, Acting Vice-President for Private Sector, Infrastructure, and Regional Integration at the AfDB.
TELECOMS
Liquid Telecom partners RBH to acquire Neotel SOUTH AFRICA - Liquid Telecom, a panAfrican telecoms group, majority owned by Econet Global, has entered into an agreement to acquire South African communications network operator Neotel. In the deal valued at Rand 6.55 billion (US$480 million), Liquid Telkom will take the majority 70% and local South African company Royal Bafokeng Holdings (RBH), a South African investment group, will take a 30% equity stake. It ends a protracted battle by Vodacom SA for a number of WWW.AFRICAINCMAG.COM
years to take a stake in Tata Group’s owned Neotel, which was fraught with regulatory concerns. The transaction “is transformative and will create the largest pan-African broadband network. Through a single access point, businesses across Africa will be able to access 40,000kms of cross-border, metro and access fibre networks. These currently span 12 countries from South Africa to Kenya, with further expansion planned,” said the companies.
“Leveraging the strengths of Liquid Telecom, RBH and Neotel, we will offer an unprecedented fibre network with a unique set of services and international connectivity for telecom operators and enterprises across sub-Saharan Africa. For the first time, African companies will be able to connect with each on a single fibre network. We will also be increasing investments into Neotel to cater for rapidly accelerating mobile and enterprise traffic.” Nic Rudnick, Liquid Telecom CEO, said.
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COUNTRY FOCUS: RWANDA
RWANDA: A COUNTRY FOCUSED ON EXCELLENCE TOP: THE NEW KIGALI CONVENTION CENTRE SITS 5,000 PEOPLE - RWANDA CAN NOW COMPETE FOR CONFERENCES IN THE REGION
“KIGALI CITY CONTINUES TO URBANIZE AT A RATE OF 15% WITH ESTIMATES POINTING TO 35% BY 2017 AND WITH A GROWING MIDDLE CLASS”
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Small. Mountainous. Genocide. Kagame.
These four words describe what comes to mind whenever some one thinks of Rwanda, the Central African country in the volatile Great Lakes region. But you may as well add excellence to the above. Having gone through the debilitating genocide that wiped about 1 million of its population in 1994, Rwanda has made a remarkable recovery, leaving in its wake a number of other African countries that went through turmoil brought by civil wars of the 1990s – Liberia, Sierra Leone, Democratic Republic of Congo, Angola, Burundi, Somalia – a time when Africa truly showed its dark side to the World. While most of the countries above are still crawling out of their wars, Rwanda is flying, aiming to be a prime destination for investments in Africa. Beyond genocide Many analysts portend that the remarkable recovery of Rwanda is down to good leadership and focus on excellence under the country’s leader, President Paul Kagame. The country’s rise after the genocide and attention to detail can be compared quite well to Japan. Coming out of the Second World War in 1945 defeated and humiliated, Japan focused its energy on rebuilding its infrastructure and industry, and by the 1970s was already a leader in many industries including electronics and the car industry. Globally competitive, leading in region The pull for investors into Rwanda is not without basis.
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In the 2015 version of the Global Competitiveness Index by the World Economic Forum, Rwanda improved its world ranking to 62nd position, up from 66th in 2014. In Awfrica, Rwanda retained the 3rd position and was the most competitive in the East African Community. Labour market efficiency and institutional pillars were the main strengths of Rwanda, where it ranked 9th and 18th in the world respectively. The country was among the top 10 in the world in a number of critical parameters: starting a business (2nd), government spending (4th), friendly foreign direct investment (FDI) rules (5th), procurement of advanced technology (5th) and burden of government regulations (6th). Below we highlight some of the key sectors that Rwanda is focusing on to be Africa’s premier destination. Manufacturing Taking advantage of its location in the centre of Africa, the country aims to be an important manufacturing hub in the Central Africa region. As a manufacturing hub, Rwanda offers easy access to western Uganda, northern Tanzania, eastern Congo, Burundi and other export markets. According to the Rwanda Development Board (RDB), the country offers good opportunities for production of construction supplies, pharmaceutical drugs and agro produce. The Special Economic Zones, launched in 2010 through a policy document by the Government, WWW.AFRICAINCMAG.COM
A COUNTRY FOCUSED ON EXCELLENCE
RWANDA IN BRIEF GEOGRAPHY
offers investors in the manufacturing sector a number of incentives to investors in these zones to increase the country’s exports. Currently, investors in pharmaceuticals, packaging, electronics, and construction supplies, food and beverage and heavy industries have opened shop at the Kigali SEZ. However, beyond the SEZs, the country is a significant producer of cement (Cimerwa, majority owned by South Africa’s PPC Group, inaugurated an expanded plant to produce 600,000 tonnes in 2015), food and beverages (through Bralirwa, a subsidiary of Heineken Breweries, which also bottles for Coca-Cola; Inyange, a dairy processor; and a local subsidiary of Belgian company, Skol Brewery, among others). Other manufacturers include the Sulfo Rwanda group, a conglomerate that manufactures a range of fast moving consumer goods, including food products. A new player has also joined the electronics-manufacturing scene in the country. Positivo BGH has a deal to supply the Government with 150,000 computers annually, but with the goal to target the regional market with computers, mobile phones and tablets. Infrastructure Rwanda has invested aggressively in its road, air and water infrastructure to improve access in the mountainous country and ease connection with the region and Africa. On road transport, the country has connected all the major towns and cities with high quality tarmac roads. The country’s main Kigali International airport has undergone major upgrades recently with new apron, three taxiways and hangar but is over stretched currently. Other airports include Kamembe International in the southwest and Gisenyi to the North. The Government plans to build a new airport southeast of Kigali. The planned Bugesera International Airport is expected to be the main gateway into Rwanda in future. To boost its capacity in the railways transport, the country plans to build two standard gauge rail routes, according to the RDB - one through Dar-es-Salaam in neighbouring Tanzania and the other through Uganda and Kenya through Mombasa. The country has also invested significantly in the governmentowned RwandAir that currently flies into several African cities including Johannesburg, Nairobi, Lusaka and other destinations including Dubai. The airline is currently increasing the number of destinations following the expected receipt of new aircraft, including A330-200 and A330-300 Airbus wide body aircraft in September and November that will boost its routes beyond Africa into Asia and Europe. WWW.AFRICAINCMAG.COM
Location: Central Africa, east of the Democratic Republic of the Congo, north of Burundi Border countries: Burundi, Democratic Republic of the Congo, Tanzania, Uganda Climate: Temperate; two rainy seasons (February to April, November to January); mild in mountains with frost and snow possible Terrain: Mostly grassy uplands and hills; mountainous with altitude declining from west to east Natural resources: Gold, cassiterite (tin ore), wolframite (tungsten ore), methane, hydropower, arable land Land use: Agricultural land: 74.5%; forest: 18%; other: 7.5%
PEOPLE AND SOCIETY
Rwanda is the most densely populated country in Africa Languages: Kinyarwanda, French (official), English (official) and Kiswahili Population: 12.6 million Age structure: 0-14 years: 41.83%; 15-24 years: 18.86%; 25-54 years: 32.72%; 55-64 years: 4.07%; 65 years and over Median age: 18.8 years Population growth rate: 2.56% Urbanisation: urban population: 28.8% of total population; rate of urbanization: 6.43% annual rate of change
ECONOMY OVERVIEW
Rwanda is a country with about 90% of the population engaged in subsistence agriculture and some mineral and agro-processing. Tourism, minerals, coffee and tea are Rwanda’s main sources of foreign exchange. The government has embraced an expansionary fiscal policy to reduce poverty by improving education, infrastructure, and foreign and domestic investment, and pursuing market-oriented reforms. The Rwandan Government is seeking to become a regional leader in information and communication technologies. • GDP (purchasing power parity): US$20.42 billion • GDP (official exchange rate): US$8.267 billion • GDP (real growth rate): 6.9%; 7% (2014 est.); 4.7% (2013 est.) • GDP per capita (PPP): US$1,800; US$1,700 (2014 est.); US$1,700 (2013 est.) • GDP, composition by sector of origin: agriculture: 32.6%; industry: 14.1%; services: 53.3% Agriculture products: coffee, tea, pyrethrum, bananas, beans, sorghum, potatoes; livestock Industrial products: cement, agricultural products, small-scale beverages, soap, furniture, shoes, plastic goods, textiles, cigarettes Industrial growth rate: 4.4% Labour force: 6.247 million; Labour force by occupation: agriculture: 90%; industry and services (2000) Exports: US$726.1 million (2015 est.); US$719.9 million (2014 est.) Export commodities: coffee, tea, hides, tin ore Export partners: Democratic Republic of the Congo 19.8%, US 10.8%, China 10.3%, Swaziland 7.9%, Malaysia 7%, Pakistan 6.2%, Germany 5.9%, Thailand 5.5% Imports: US$1.913 billion; US$1.984 billion (2014 est.) Imports (commodities): foodstuffs, machinery and equipment, steel, petroleum products, cement and construction material Imports partners: Uganda 15.7%, Kenya 11.8%, India 8.7%, China 8.7%, UAE 8.6%, Russia 6.6%, Tanzania 5.1% All figures 2015, unless stated. Source: The World Factbook
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COUNTRY FOCUS: RWANDA
A panel discussion at the World Economic Forum
Construction works at a food factory at the SEZ
The Kigali Heights project
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Tourism and hospitality Rwanda’s tourism potential and unique assets including the mountain gorillas, volcanoes and game reserves are a rare gem that has drawn tourists into the country. The country is proud of its mountain gorilla heritage, even going to the extent of having a gorilla naming ceremony, Kwita Izina that celebrates the rare primate. This year’s event is set for September 2. The country has also set its eyes on boosting the conference tourism side of the equation, taking advantage of its central location and peaceful environment to attract conference organisers from the private and public sector. This year the country has played or is set to play host to some of the most important conferences in the region, including the World Economic Forum on Africa, Aviation Stakeholders Convention, African Union Summit, Global Africa Investment Summit and the Africa Hotel Investment Forum. But it is in the entry of global hotel chains that Rwanda gets a special mention. The country hosted the African Union Summit at the newly opened Kigali Convention Centre. The Centre is a new conference focused facility that enables Rwanda to host for the first time, 5,000 delegates, and will be a sure puller to the country for conference organisers. “When you offer security and keep the country clean, every investor would find it very easy to come to invest in the country. Rwanda is not Switzerland, but the first impression that visitors and investors have of a country is very important,” says the General Manager of Hotel Des Mille Colline, Denis Wollner, in an interview with our publication. To tap into this expected increase in numbers, Marriott Hotels has chosen Rwanda as its first location in sub-Sahara Africa, as it aims to grow into the region, opening in Kigali in August this year. “Marriott could not have chosen a better destination for its first property in Sub-Saharan Africa. The country holds a lot of promise and this marks the beginning of an exciting journey for the hospitality sector,” the hotel’s Sales and Marketing
Director Peter Mukulu told the New Times recently. Radisson Blu, another international chain also recently opened its facility, which is located within the Kigali Convention Centre complex. Other brands that have recently joined the industry include Golden Tulip, Swiss International. The Serena Hotels chain has been present in the country for a number of years. Local and regional hotel chains also continue to grow and boost their capacities and capabilities. A number of international hotel chains are also lining up to join the country’s rising hotel industry. Real Estate and Retail Rwanda offers exciting real estate and retail opportunities that has drawn the interest of not just the Rwandan investors but also many others from Africa and the World. “As the (Kigali) city continues to urbanize at a rate of 15% with estimates pointing to 35% by 2017 and with a growing middle class and fast growing population, the urban population is expected to grow as more people migrate to towns to take up the growing number of jobs and to start businesses,” notes the RDB. According to the RDB, the Government has pointed out six secondary cities to act as poles for growth: Rubavu, Musanze, Nyagatare, Muhanga, Huye and Rusizi, in its quest to provide housing to its growing population. But it goes beyond the provision of basic housing. The skyline of Kigali has undergone a drastic transformation in the last five years, with high-rise buildings and malls joining the fray. Days are gone when the Union Trade Center used to be the main attraction of Kigali, hosting the Kenyan supermarket chain Nakumatt, boutiques, cafes and shops. Nakumatt has three branches in Kigali. Other retailers include T-2000, and locally owned Simba and Crystal Mart. One standout development is the Kigali Heights, a mixed-use retail and office block, which is a stone’s throw away from the Kigali Convention Centre, and is under construction. IBA WWW.AFRICAINCMAG.COM
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CALLFAST SERVICES LTD
Industry Business Africa magazine is availed in print and digital formats to key decision makers in Africa and beyond, reaching over 100,000 readers. Our high quality company profiles provide unrivalled reach that unlock crucial business networks and opportunities for your company. They are excellent marketing opportunities for your brand; when celebrating an anniversary or major achievement; launching a new brand, product, project, market or management.
Talk to us today. Contact the publishers on info@foodworldmedia.net or 254 20 8155022/ +254 725 343932 AUG - SEPT 2016 | AFRICA INC
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CALLFAST SERVICES LTD – GROWING STRONG FROM A SMALL FOUNDATION Callfast Services is a good example of an enterprise that has risen from a humble start to one of the most sought after players in the clearing, forwarding, warehousing and transport industry in Kenya. The company is determined to be among the leading players in the region, as the CEO Maurice Wambua explains.
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The business of clearing and forwarding is not for the faint hearted,” Maurice Wambua, the CEO of Nairobi-based clearing and forwarding firm informs us as we start the interview. “I can tell you that there have been many individuals and companies that have been lured into this industry, attracted by the wrong impression that there is easy money to be made, only to find their companies going under or finding themselves on the wrong side of the law,” he cautions. The company’s mission is to build value-adding long-term relationships with its clients by offering quality and cost effective services. It aims to offer 26
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customer satisfaction to all its clients as the ultimate goal. Humble beginnings, but aiming higher Callfast Services was established in 1999, and incorporated as a private limited company in Kenya in 2004. “The business started small, just like many businesses in Africa do – a small business with a great idea, vision and drive to succeed. It was not easy at all but as time went by, I managed to grow the business, getting to work with various customers over time,” he adds. Callfast Services was incorporated into a business WWW.AFRICAINCMAG.COM
www.momentumshipping.net
CALLFAST SERVICES LTD
TRANSPORT & LOGISTICS
COMPANY PROFILE YEAR STARTED 1999
LOCATION
NAIROBI, KENYA
SERVICES OFFERED
CLEARING & FORWARDING, WAREHOUSING & TRANSPORT
EMPLOYEES 20
CONTACTS
Callfast Services Ltd Location: Jomo Kenyatta International Airport, Airport Terminals. Suite 104 1st Floor. K.A.H.L Building. Tel: +254 722 696880
in 2014 and capable staff recruited to offer the necessary support and backbone to the running of business. Mr. Wambua realised very early in his building the business that to be a major player he had to make the business formal, have an office and to have the right staff to succeed. That is when he decided to incorporate the business as a limited company in 2014. The business Currently, Callfast Services has offices at the freight terminal of the Jomo Kenyatta International Airport in Nairobi and a branch office in Mombasa. The company provides superior and cost effective solutions for both import and export cargo and brings^ a fresh and innovative approach to its services acting as a value adding third party logistics partner for its clients. Its goal is to exceed the expectations of every client by offering personalized attention through outstanding customer service and is distinguished by its operational efficiency. Its functional and technical expertise combined with its hands-on experience, ensure that the clients receive the most cost-effective, efficient and professional services. Its also proud of its winning team of trained and experienced professionals. WWW.AFRICAINCMAG.COM
“Our business is more than just a clearing and forwarding company. We are extremely proud to be the General Sales Cargo Agent (GSA) for Nairobi for one of the fastest rising regional airlines, RwandAir. The confidence and responsibility that the RwandAir has placed on us, as their official cargo partner in Nairobi, is a huge stamp on our capability as a business,” he explains. Over the years RwandAir, the national airline of the Republic of Rwanda has built the reputation of a fast growing airline and offering affordable prices to most capital cities within the region and outside the region, says Wambua. The airline’s passenger and cargo numbers have grown annually as it opens new routes and offers numerous value adds to its services. The airline currently services Kigali, Dubai, Brazzaville, Libreville, Accra, Lagos, Juba, Dar es Salaam, Douala, Lusaka, Johannesburg, Entebbe, Kamembe, Bujumbura and Mombasa and the list keep growing with new routes planned. “Further, we provide air and ocean freight for both export and import. We also consolidate loose cargo, both air and ocean freight; provide road freight into the Eastern and Central Africa region; and provide project cargo services to our clients. “These services are complementary to our clearing and forwarding business, providing a critical business extension to our customers, meaning that we provide
Email: sales@callfast.co.ke Website: www.callfast.co.ke
“WE ARE EXTREMELY PROUD TO BE THE GENERAL SALES CARGO AGENT (GSA) FOR KENYA FOR RWANDAIR”
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CALLFAST SERVICES LTD
and out of the major regional airport hub. It also has an operations office at Mombasa to handle customer orders into and out of the port of Mombasa. The company enjoys good working relations with all leading airlines and airline ground handlers for all import and export cargo. This facilitates its quality and timely service delivery to its clients in the region. Further, it has partners in a number of countries around the World, including those in the US, Europe, Dubai, China, South Africa, Egypt and India. The company has a growing number of clients from the manufacturing advertising, tourism, and telecommunications sectors, among others. “In addition our diverse business networks internationally also extend locally with the various bodies at the Kenya Revenue Authority, Kenya Bureau of Standards (KEBS) and other governmental institutions involved in freight handling and clearance. This assures us that assistance is accorded on behalf of our clients speedily and any delays or possible problems are promptly addressed and rectified,” he says.
MAURICE WAMBUA, CEO, CALLFAST SERVICES LTD.
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them with an all-inclusive, seamless service that enables them to reduce time, costs and complexity for their businesses”, Wambua adds. The company’s location at the Jomo Kenyatta International Airport’s Cargo area places the company at the heart of the cargo business coming in
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Building a viable business “Growing our business into a viable business over the last more than 20 years has been a good challenge with numerous lessons learnt, but we can only thank our very supportive customers who have made this possible. And I can also say that since our customers trust us to deliver as promised, we have continued to grow, even as the market has continued to become competitive.”
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TRANSPORT & LOGISTICS
But what are the keys to success in the clearing and forwarding business in Kenya? The key to success for Callfast Services is reflected in the company’s values: professionalism, reliability, integrity, and teamwork. Basically, it is sticking with the rules of the land, keeping your promises and working beyond the customer’s call, placing integrity above all else and working as a team within the company, he informs us. “For us, we have built integrity and trust of our customers for a long time. Secondly, we do not accept walk-in customers and customers we do no know well because some of these people could give us suspect cargo which might later cause problems. We only work with corporate clients and even our trucks are not hired out to clients unknown to us,” he stresses. Changing business environment So what has really changed in the clearing and forwarding environment in the past 24 years Callfast Services has been in business, we ask. “The most important change was when the Kenya Revenue Authority (KRA) took over from the Customs Department after which it introduced the Simba System in 1995. The automation brought by the new system reduced a lot of the problems of the manual systems we had been used to. It streamlined the processes and eliminated the need to be present at the Mombasa port to make a customs entry since we could then clear the goods from our Nairobi offices,” he informs us. The other notable change has been the recent launch of the Kentrade system that has seen integration of the numerous agencies involved in clearance processes with agents. “These recent WWW.AFRICAINCMAG.COM
changes have also eased the flow of information and made it easier to transact with the banks, Government regulatory agencies and KRA.” Human resource is critical to success “This business requires our company and all our staff members to understand the major local rules and regulations applicable in the clearance of goods and forwarding process locally, regionally and internationally for our partners and clients,” he says. A dedicated team staffs the Nairobi head office and the Mombasa branch. “We value our employees and consider them our most critical resource, since we are a service company. People are involved at all the stages of the services we offer, so skills development for all our staff is paramount to us.” The future is bright Mr. Wambua says that he foresees his business growing, driven by the rising investments in the region. “From the port of Mombasa to the Jomo Kenyatta International Airport where we are located down to the exit and entry borders into and out of Kenya, we have seen tremendous investment by the Government to improve capacity. As a private sector player, our business can only take advantage of these investments to grow our business. We are talking to a bank to get some cash to build a proper warehouse on Mombasa Road, to boost our storage capacity, further enhancing our capability,” he informs us. And does Callfast intend to spread its wings to the region? “Yes, absolutely we are planning to have offices out of Kenya in the long term to increase our market penetration and enhance our presence internationally,” he concludes. IBA
THE CEO WITH SOME OF HIS COMPANY’S TEAM MEMBERS
THE COMPANY’S VALUE INCLUDE PROFESSIONALISM, RELIABILITY, INTEGRITY AND TEAMWORK
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ORTHNER, ORTHNER & ASSOCIATES
ORTHNER, ORTHNER & ASSOCIATES:
ARCHITECTS WITH FOCUS ON A GREENER GHANA
Orthner, Orthner & Associates (OOA) is an Accra, Ghana-based leading provider of architectural services. The company prides itself in blending its African base and European origin to deliver futuristic, unique and green solutions to the rising housing market in Ghana. Industry Business Africa had a discussion with the company’s directors, Martin and Rosemary Orthner and their teams.
T
he demand for housing, be it for residential, office or commercial use, in Africa continues to be a major handicap to economic development for a number of African countries. Vibrant economic growth in the last 20 years in Ghana have played a part in boosting housing demand due to the rise in the proceeds from oil and increased foreign direct investment in the country, with the country’s economy registering more than 10% growth per annum over several years. Even though the last few years
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have seen rising inflation, slowing economic growth, rising public debt and depreciating currency, which have tempered housing demand, the overall picture remains that Ghana’s housing problems persist. The country’s Ministry of Water Resources Works and Housing’s reported in 2013 an estimated housing deficit of about 1.7 million houses. It further stated that only about 40,000 housing units were being built annually, compared to an annual demand of about 100,000 units. WWW.AFRICAINCMAG.COM
REAL ESTATE & CONSTRUCTION
mental concepts that have not existed before in this market. Of course the government must do more to deliver more abundant, affordable housing to its citizens,” she adds.
“There is a huge demand for housing in Ghana; it’s like there is a big hole that needs to be filled. There is a big need for affordable housing,” Ms. Akosua Oben’g, an architect at Orthner & Orthner Associates (OOA) informs us during our interview with the company. “We have a significant role to play as the private sector to help bridge this gap. As a private company, we believe that we can contribute to changing the narrative about housing in Ghana, bringing in new concepts about design and environWWW.AFRICAINCMAG.COM
Bringing new perspectives to housing “We have gained a reputation for our organization, attention to detail and a well-structured approach to projects,” Martin Orthner, OOA’s Managing Director says. “We are proud of OOA as a brand which stands for responsible, sustainable design, creative use of local materials and workmanship to create outstanding modern, tropical designs in a short period of time,” he explains. Established in 2000 in Austria and present in Ghana since 2006, OOA’s expertise covers the full spectrum of architectural services, from initial design concept through to planning, project management and environmental consulting. The company prides itself in introducing innovative concepts to the country’s architectural landscape over the last six years it has operated in Ghana. According to Rosemary Orthner, the company’s Director, the company is proud of its dual African-European heritage. “The knowledge and experience of working in the two different cultures are key factors to our success and our ability to work with international clients and teams,” Rosemary explains. The company has executed several projects with local and international partners including commercial, office and residential properties in Accra. “Our company gives particular care and emphasis to economical and efficient use of materials and resources: low energy and water consumption; water treatment systems; consideration of climatic conditions and the use of passive heating, shading and cooling techniques; natural ventilation and the use of solar energy are all integral parts of our efforts to meet the highest international standards of sustainable design,” says Martin. He knows better, for Ghana sits within the hot and humid tropical rain forest region of West Africa. Abundant rainfall and lush green forests and abundant sunshine all year round provide a tropical paradise in the country. But for an architectural firm, how does the company take advantage of the local surrounding? “The work we do is what tropical architecture is all about,” comments Akosua, explaining the company’s recent work with clients from the World Bank Group’s International Finance Corporation and the Tesano Lofts, where OOA has, in partnership with its partners made abundant use of local materials like wood and energy saving initiatives that place its building designs a cut above all else in the industry. Ghana’s tropical rain forest is home to abundant quantities of wood and is a well-known exporter
COMPANY PROFILE YEAR STARTED 2000
LOCATION
ACCRA, GHANA
SERVICES OFFERED
ARCHTECTURAL & PROJECT MANAGEMENT
EMPLOYEES 10
CONTACTS
Orthner Orthner & Associates Location: DTD 117 Cantonments Accra-Ghana Tel/Fax: +233 30 2544069 Email: office@orthnerarchitects.com Website: www.orthnerarchitects.com
“OUR COMPANY GIVES PARTICULAR CARE AND EMPHASIS TO ECONOMICAL AND EFFICIENT USE OF MATERIALS AND RESOURCES”
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TOP & BELOW: THE COMPANY’S WORK AT LABADI BEACH HOTEL
of wood. “It is sad that the knowledge we used to have on the use of wood in housing disappeared over the colonial period, when cement became king. We just don’t know how to use wood anymore. We have deliberately incorporated wood into our building designs with fantastic results, albeit we have been forced to source for those with knowledge of wood in housing from Germany to help us,” explains Akosua.
Successfully executed IFC project The skyline of Accra, the capital city of Ghana continues to change, with an increasing investor base taking their bet on a rising middle class in the country. Other major cities like Kumasi, Tema and Takoradi are not left behind. OOA is proud of its contribution to this changing skyline through its work. “The new IMF building in Accra has been a big one for us,” says Rosemary when we enquire which of their projects has generated the most buzz. “That project really put our company on the map in Ghana, and provided an opportunity for us to deliver on some of the concepts we have always wanted to do in the country,” she adds. Opened in 2013, the new IMF building in Accra is a 6-floor structure that has used the latest technology in design, environmental management, and water use and energy conservation. A number of green initiatives put the building above the rest: it is the first building in Ghana to have a garden on the roof, on which grass grows throughout the year; is bathed with natural light all through the building; and uses wood claddings to keep the building cool. “The green roof of the IFC building neutralizes the heat island effect of this building. Instead of the aluminium roof that reflects the heat, the green roof absorbs the heat from the sun, cooling the building in the process. The green roof also provides insulation to the roof at the same time,” says Akosua. The building also echoes traditional Ghanaian buildings, with a central courtyard that has an imposing 90-year old tree, around which the building rises to the sky; with almost reddish colour that is common in Ghanaian villages.
“THE IMF BUILDING PUT US ON THE MAP AND PROVIDED AN OPPORTUNITY FOR US TO DELIVER ON SOME OF THE CONCEPTS WE HAVE ALWAYS WANTED TO DO”
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ORTHNER, ORTHNER & ASSOCIATES
TOP & BELOW: THE WORLD BANK BUILDING FROM DIFFERENT ANGLES
The IFC building, in which the company worked with Co-Arc International and Arup, meets a key milestone: it is LEED certified. LEED or Leadership in Energy and Environmental Design is a rating system developed by the US Green Building Council (USGBC) to evaluate the environmental performance of a building and encourage market transformation towards sustainable design.
Rosemary explains that the problem with Ghana is that building standards are still quite low, but that with international clients like the IFC, they can use such opportunities to showcase world-class facilities to the local market, improving the quality of the sector in the process. “Bringing up such buildings like the IMF building require meeting some standards, like the LEED which we incorporated into this building. We hope that with these newer buildings, newer technology and certifications, people will have a local reference point, using such buildings to decide on the type of housing they need. Without these prototypes, they would not know what they really want,” she concludes. The wooden building appeal A recent project by OOA is the on-going development of town houses on the outskirts of Accra called Tesano Lofts. “The Tesano Lofts project has reintroduced the significance of wood as a building material, especially to fulfill the high demands of residential buildings in tropical conditions,” states Martin. Wood may not be your kind of material to build a high-class building but OOA is out to prove this in Ghana. “We were lucky to find a client with access to wood, and who accepted us to work with the wood on his building. Normally consumers in Ghana think of wood as a material that is not durable and will not
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REAL ESTATE & CONSTRUCTION
last or will rot. We have shown that wood, which we have in Ghana in abundance, is a good and strong material that can with stand all the strains thrown its way,” explains Akosua. According to Akosua, the Tesano buildings are completely wooden, save for the structure, which is in steel and concrete. The walls, floors and even the bathrooms are wooden. “Wood is a good material if used right, but another critical point to make is that the choice of the wood to use is also key. You can see this in the communities living near water bodies like rivers, lakes or oceans, where the boats are made of wood, and used in water!! Using wood the right way and using the right wood is the secret to using wood in buildings,” she reiterates. Despite the success OOA has had in the Tesano Lofts project, skeptics still abound. “People come to us with their housing requirements and after we show them the Tesano Lofts project, they really appreciate the concept and the building. But whenever we ask most of them if they can have their own buildings in wood, they say an absolute No!! It will take us time to convince more people in Ghana to take this path,” says Akosua. The company has also recently finished several assignments in Accra for Google, Oracle and Labadi Beach Hotel, one of the iconic hotels in Ghana. Building capacities, changing mind sets OOA is aware of the critical role the company plays in building up the capacity of its staff and the indus-
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try at large in the country. With a total work force of 10, including 4 architects, and other projects staff, OOA strives to be the leader in its field by training and equipping its staff with the latest technology and skills. “Our employees have always been a key factor to our success. Their full involvement in all projects from inception to completion is crucial for a successful and long lasting relationship. We are constantly involving the local creative personnel and artisans in
TOP: THE WORLD BANK BUILDING WRAPS AROUND A 90-YEAR OLD TREE BELOW: THE COMPANY’S WORK AT LABADI BEACH HOTEL’S CONFERENCE ROOM
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ORTHNER, ORTHNER & ASSOCIATES
all our design projects. We are also constantly updating our office equipment and software skills, investing in employee training and visiting our international partners, suppliers and clients to keep up to date with international standards and technology,” says Martin. OOA is also a proactive participant in national and international workshops, forums and symposia as well as lecture and round tables promoting sustainable use of building materials, energy efficiency in buildings in tropical zones and the design of sustainable cities. The company is also involved in working with clients and communities to improve the use of urban spaces. “Accra is a rapidly growing city with a very young population, but public spaces are rare. Our designs are landmarks, giving public areas to the community, working towards a creative and walk able city for the people and the disabled community,” Martin informs us. “We are also working with our customers to build smaller units and leave some space for other uses, not cover the whole space with the house. We explain to them that with smaller units, you earn less but you earn sooner hence reducing the risk of running out of money before the building is finished. We are beginning to see a change in the local market; the younger generation is starting to ask us for smaller, more affordable homes’ Rosemary adds. No power, no problem While the power situation in Ghana over the past few years is well known, OOA has invested recently in a photovoltaic system, to overcome the unreliable power supply to ensure guaranteed uninterrupted power availability for its equipment and data protection at all times. The company’s offices are 100% solar powered following the installation of a 4.5 kW photo voltaic system, comprising of 18 solar modules, solar and battery inverters and a 48 volt battery bank with storage capacity of 22 kWh. The office is therefore 100% independent from the national grid, reducing its carbon footprint by 4.5 metric tons of carbon dioxide (CO2) per year. Opportunities abound but challenges remain “With Ghana’s emerging market and economic growth, the high demand of housing, office and infrastructure developments, OOA is well positioned and prepared for a successful future,” says Martin. The company is readying itself to meet the demand for mass housing and office blocks, individually designed projects, especially ones where quality is a major requirement, to meet the company’s key areas of strength, Martin explains. 36
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“We are hoping that people continue to come to us, seeking good quality buildings. Having quality buildings in Ghana provides an educational forum to convince consumers that such buildings are actually possible in Ghana, despite their earlier thoughts that these can only be possible in Europe,” says Rosemary. There are also challenges with meeting green initiatives like LEED in the country. OOA, which is a member of the Ghana Green Building Council, believes that a lot of capacity building and creation of awareness must be boosted to encourage the desgn and building of more environmentally friendly buildings in Ghana. “Public awareness of the importance of sustainable developments has to be increased tremendously. The various institutes of building professionals and concerned citizens/organizations will have to take the lead by instituting award systems for energy efficient buildings. Government will also need to take a lead role in providing the legislation, financial incen-
TOP: THE LADIES TEAM OF ARCHITECTS BELOW: THE COMPANY’S DIRECTORS MARTIN & ROSEMARY ORTHNER
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REAL ESTATE & CONSTRUCTION
tives and creating the necessary public awareness for there to be a change in the current building culture,” advices Martin. “We cannot achieve LEED as high as we would want, because we cannot basically meet some requirements for lack of certain supplies in Africa. It is almost like we need a LEED system for Africa. Some things are not just produced here, while LEED requires that some materials be locally sourced,” Rosemary says. Making it harder is also the lack of specialists in the local market to advice on LEED requirements. But she is confident that with time, it will be much easier to adopt LEED requirements in Africa. There are various institutions developing a green rating for LEED, which fits to Ghana and West Africa, for example in Ghana, the Ghana Green Building Council she explains. The future lies in Ghana According to Rosemary, the future of OOA lies in Ghana. “We would want to build more capacity for WWW.AFRICAINCMAG.COM
all our team and the company, and make a real difference to the community we are building for. Everything we build, we would like to provide adequate public space for example roads, parking, green areas, seating areas and a nice view of the city. “Our focus is basically Ghana for now, we can work with partners in other countries, but we would like to remain in Ghana. We want to do our work well in Ghana to employ more young, female architects – making us more proud and with a greater influence on our society. Our aim is to employ more local architects, despite our company’s roots in Austria. “With the Internet, a lot of people are now exposed to current trends in building designs and features. There is a generational change and experience by many customers out of the country has also improved our experience with them. We really believe in the future of Ghana and are investing to meet rising demand for our services,” she concludes. IBA
THE TESANO LOFTS PROJECT MAKES INNOVATIVE USE OF WOOD IN THE CONSTRUCTION
“WE WANT TO DO OUR WORK WELL IN GHANA TO EMPLOY MORE YOUNG, FEMALE ARCHITECTS”
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HOTEL DES MILLES COLLINES
HOTEL DES MILLE COLLINES:
RWANDA’S HOTEL WITH A REMARKABLE HISTORY THE HOTEL’S FACADE & POOL
The hotel industry in Rwanda is growing aggressively. But one hotel stands out from the rest: Hôtel des Mille Collines, the premier hotel that has been part of Rwanda’s hotel scene for over 40 years. As times change, the hotel is set to boost its glory, as the General Manager, Denis Wollner explained to Industry Business Africa.
H
ôtel des Mille Collines is a business that is proud of its heritage and history that is connected to the development of Rwanda as a country. As Rwanda soars in its quest to be one of the prime business destinations in Africa, the hotel is planning a major upgrade and changes to the way it is managed to take advantage of new business opportunities in the country, says Denis Wollner, the General Manager. Denis, who is a 38-year industry veteran previously worked in Europe, Africa, Middle East, Asia
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and Latin America and is a consummate Swiss national whose family’s involvement in the hotel industry goes three generations, believes that the hotel is set for glorious times ahead. “When you offer security and keep the country clean, every investor would find it very easy to come to invest in the country. Rwanda is not Switzerland, but the first impression that visitors and investors have of a country is very important, and in that it can compare itself to Switzerland,” says Denis as we chat in his office, on the common referral of Rwanda and WWW.AFRICAINCMAG.COM
HOSPITALITY
its grounds to escape the 1994 genocide that nearly brought Rwanda to its knees, only for the country to defy the norms and rise to its present position in Africa as a peaceful, prosperous and a premier investment destination. “This hotel’s story is very unique. Firstly, the hotel has a history of over 40 years and has been a key part of the country for all these years and secondly it made history, unfortunately, during the genocide, so the hotel is part of the country and should be kept as such. But it is not fair to compare the film and the hotel as the movie producers had their story to tell, which could be a bit different, from what really happened here. We have a country here, which is just over 100 years old, and 40 years ago this was one of the first hotels that has continuously offered quality service and high standards over all these years. It is still a remarkable place, not only the brand Hôtel des Mille Collines as such but also the employees who have worked at this hotel over the 40 years. Without the right employees, you cannot have success in any corporate company. But, yes, the Hôtel des Mille Collines brand is very strong,” Denis says. And then there is the Rwanda story that works in favor of the hotel to deliver on its mandate, considering that as a small country, Rwanda, on paper, may appear to not have many good things its way in attracting guests to utilize the hotel facilities. “In Rwanda you have a feeling of excellent quality of life that keeps attracting visitors, be they tourists or business men into the country, to our favor as hoteliers. I hope this doesn’t change because when business grows, people also change their standards and quality, and their own mentality to superior service. If Rwandese keep themselves as welcoming as they are then that will be great asset for this country into the future,” the “Switzerland of Africa.” Having worked in several African countries, Denis feels at home in Rwanda, but the most important part of his day is spent working on boosting the profile of Rwanda’s iconic hotel, Hôtel des Mille Collines, which has been in existence for over 40 years, and where he has been the General Manager for a short period, approaching his first year in the role. Strong and long heritage Hôtel des Mille Collines (meaning hotel of a thousand hills, named after the breath-taking hilly landscape of Rwanda) is as important to Rwanda as many of its historic sites. The hotel is immortalized in the movie Hotel Rwanda and other movies and documentaries. Hotel Rwanda told of the refuge the hotel offered to thousands of people who ran to hide on WWW.AFRICAINCMAG.COM
The business Hôtel des Mille Collines is located in the Rwandan capital, Kigali. The hotel features 112 rooms, suites, meeting and conference facilities. It also has a ballroom that can host up to 300 people, an outdoor swimming pool, recreation area and seven boutiques. Located in downtown Kigali, 75% of the hotel’s guests are business people with the remaining 25% being tourists. “We have a couple of products; banquets and events, syndicate rooms for small meetings and a panorama restaurant which is our main restaurant on the 4th floor with an exclusive view of the city, plus exclusive service and exclusive food. “Then we have the terrace restaurant which offers nice breakfast, African and European buffet every day. We also have the pool bar which offers snacks and of course the pool and relaxation time. If I would
COMPANY PROFILE YEAR STARTED 2000
LOCATION
KIGALI, RWANDA
SERVICES OFFERED
HOTEL SERVICES
NUMBER OF ROOMS 112
CONTACTS
Hôtel des Mille Collines Location: 2 KN 6 Ave, Kigali, Rwanda Tel/Fax: +250 788 192 000 Email: info@millecollines.rw Website: www.millecollines.rw
“IN RWANDA YOU HAVE A FEELING OF EXCELLENT QUALITY OF LIFE THAT KEEPS ATTRACTING VISITORS, BE THEY TOURISTS OR BUSINESS MEN INTO THE COUNTRY, TO OUR FAVOUR AS HOTELIERS”
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HOTEL DES MILLES COLLINES
DENIS WOLLNER, GENERAL MANAGER
be asked to define this hotel, I would say we are a city hotel and a resort,” says Denis. “In fact an “ULTIMATE URBAN RESORT,” he stresses. The management team of the hotel is composed of experienced and professional team members with great experience and background in their domains, all the way from the General Manager to the departmental heads, line managers and staff. Most staff members have grown in their areas of responsibility while working with the hotel. For example, the company’s Executive Assistant in charge
of rooms Claire Kangwage, has been a member of the team since 2006, starting as Guest Relations Manager. She has a Hospitality and Tourism background, and the right experience. The Executive Chef and Executive Sous Chef both have a great experience in the industry in Europe, Middle East and Africa. Denis is a third generation hotel industry descendant whose father and mother worked in the hotel industry, with over 38 years of experience in Europe, Africa, Middle East, Asia and Latin America. “All our team members no matter the sector or department have knowledge in their fields, including our gardening and IT specialists. All of them are proud to be part of a great and remarkable hotel and bring forward new ideas and suggestions every day for us to improve our business and make the hotel better,” Denis informs us. The hotel’s core business is selling accommodation rooms and food and beverages to its clients, with two main service categories. It also offers MICE facilities, catering services, massage, business centre services and car service. “We try to accommodate our guests from the moment they land in Rwanda to the moment they take off back to their destinations by trying to cover all their needs when they are in the country. We also work with various third parties such as tour operators, airlines and conference services providers to provide a seamless service to the clients and ease
The hotel’s lobby 40
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HOSPITALITY
their travel, be it for leisure or business,” Denis adds. The company is a privately owned family business with strong roots in Rwanda that works well of the company. Booming industry, with challenges With new entrants into the Rwanda hospitality industry, Denis is convinced that the initiatives they have planned for will make the brand to retain its place in the hospitality scene. “The biggest challenge we are facing in the next months are the competitors, there are many competitors coming. The industry is multiplying by a factor of three the number of rooms in the four and five star sector, which is a lot in a short period of time. Of course we could suffer because they are newer but we have our brand that everyone who comes to Rwanda wants to see, whether they are staying at the hotel or at to another hotel,” he says. “The other challenge we have ahead is the recently opened Kigali Convention Centre that shall compete with our conferences, incentives and meetings, but we do have our place in this business area, and we can only improve our facilities to make it a wonderful place to consider for these activities.” WWW.AFRICAINCMAG.COM
“Of course as a country, we have a gap here in training of staff on hospitality and food and beverage courses. The country needs a high caliber hotel management school that meets international requirements, which I know the Hotel Association of Rwanda is discussing at the moment. For our part, we are willing to have some practical’s and internships here to build more capacity. We have good trainings here and this can be proved by the fact that other hotels are taking our employees regularly.” Building for the future According to Denis, with 40 years behind its back, the hotel is set for a major upgrade to cater for changing customer needs. “Over the past 4 months we have started to refurbish the centralized areas of the hotel to build on our recent initiatives to improve the service and quality of the hotel, but we are not yet done with the changes we require. We are having a major refurbishment of the hotel in the next 18 months, in three phases, commencing early next year, if all go to plan. The project aims to improve the rooms and other facilities, plus the security, fire detection and communication systems in the hotel. We shall also
A GROUP PHOTO OF THE MANAGEMENT OF THE HOTEL
“WE HAVE STARTED TO REFURBISH THE CENTRALIZED AREAS OF THE HOTEL TO BUILD ON OUR RECENT INITIATIVES TO IMPROVE THE SERVICE AND QUALITY OF THE HOTEL”
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HOTEL DES MILLES COLLINES
TOP: EXCELLENT GROUNDS FOR GROUP ACTIVITIES BELOW: TOP CLASS ROOMS WITH A VIEW OF THE CITY
“WITH THE PLANNED WORKS WE WILL ACHIEVE PERFECT QUALITY FOR OUR GUESTS AND CLIENTS THAT WILL CATER FOR THEIR NEEDS FOR THE NEXT YEARS”
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upgrade the Wi-Fi, electricity, water and TV, rooms, and public areas all to optimize the services for our clients,” Denis says, with the aim of giving their clients better and improved service. But even as the hotel looks forward to major changes, innovation still continues to meet customer requirements. “We recently introduced a massage gazebo by the swimming pool which has proved to bring great added value to our guests’ experience at the hotel. That has been reflected in extra revenue at the end of the month but also positive feedback from
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guests,” he informed us. Employee focus and awards As stated earlier, Denis believes that the hotel brand has also been supported by a strong human resource capability. The management of the hotel has ensured that the staff members are involved in improvement initiatives at the hotel including through formal monthly staff gatherings where they can communicate their concerns and share their achievements. Informal activities including sports and birthday
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HOSPITALITY
parties add to the creation of a friendly working atmosphere. The hotel is also improving on its procedures and processes to ensure that service quality is standardised across the team members by having regular training sessions that build on employee capability. “We recently received the “Best Hotel Customer Service” award from the annual Service Mag award. It certainly had a very positive effect on the team, which got inspired and motivated by such recognition.” The future in mind Denis says that the hotel aims to maintain and improve its standing in the Rwanda hospitality market and to be competitive with the rest of the industry. “We will have to analyse closely the market and our competitors, be at their level or better, with the focus of staying the best traditional landmark hotel and the sole hotel where business can be shared with leisure in a unique atmosphere of remarkable urban resort,” adding that the hotel has its unique proposition that makes its customers to continue to patronise the facility, but that they will also add more effort to market the facility to new clients. As a business they have many priorities but first they are focused on improving the services and optimizing the effectiveness as the team. The hotel is targeting to take advantage of the growing investments in Rwanda to drive more business through its doors. “The city is growing and also the economy of the country, we are part of these improvements and of course we shall take advantage to grow. With the recent investments in a major conference venue, Denis says that they foresee more conferences, and shall build their capacity to handle the conference guests. “The trend will be more conferences and meetings in town and we are prepared as we initiate changes and improvements to make us become more flexible for any requests for our future clients,” he states “With the planned works we will achieve perfect quality for our guests and clients that will cater for their needs for the next years,” he adds. Community focus The hotel is deeply connected to the community and Rwandans feel much attached to the property. The company’s corporate social responsibility (CSR) strategy is focused towards youth empowerment, the goal being to support self-sustainability within the local active population. Some of the recent activities include the full coverage of university tuitions for some young students and provision of cows to upcountry residents in order for them to sell milk and start small businesses, according to Denis. IBA WWW.AFRICAINCMAG.COM
The Panorama Restaurant
The Conference Room
The Spa Gazebo
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EXECUTIVE INTERVIEW
good example of this is the recent and rapid progress made by the East African Community (EAC) (Kenya, Uganda, Tanzania, Rwanda and Burundi) who are working incredibly hard on developing a number of critical and trade boosting areas, for example, they are working to improve the roads, ports, rail and critically, the customs border environment. From the regulatory perspective, a harmonized customs and tax collection system has enabled us move our goods a lot faster between the countries in the region
ANDREW MUTUMA, COUNTRY MANAGER DHL KENYA
“WE HAVE MADE A NUMBER OF IMPROVEMENTS AT OUR NAIROBI GATEWAY TO TAKE ADVANTAGE OF THE IMPROVEMENTS AT THE AIRPORTS AND PORTS”
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Q: Tell us about yourself and your role in this organization A: DHL has been a crucial part of the East African landscape since 1978. As for me, I have been part of the team here for just over one year. Over the nearly 40 years, DHL has continued to grow in capacity, from the number of staff and the facilities that we have as well. The company is growing from strength to strength as we have made great investments in infrastructure and our network capabilities so as to meet our customers’ needs and expectations. Q: What have been some of the key experiences in the region for your company and how have they shaped the business over the last few years? A: Since entering Africa in 1978, DHL has witnessed the continent develop into the emerging economic powerhouse it is today through continued foreign and local investment in the region. As an economic integrator, our role as DHL is critical in ensuring that our services meet the growing needs of both developed and developing markets. There are a number of successful trade blocs in place which focus on better connecting the region. A
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Q: There has been a lot of government activity around infrastructure from the Standard Gauge Railway (SGR) in Kenya, expansion of airports, ports and roads in a number of Eastern African countries. How do these developments fit into your plans into the future? A: As DHL, we are already into the future! One of those things you think of in business is how do you remain relevant not just presently but into the future? Our eCom tools are geared for e-commerce customers. MyDHL is an all-in-one, web-based shipment management system especially suited for SMEs. It enables users to quickly prepare their exports, simplify their import communications, and accurately track their shipments’ transit. We have made a number of improvements at our Nairobi Gateway to take advantage of the improvements at the airports and ports. The investments include overall facelift of the facility to enhance efficiency and speed of delivery of customers’ shipments. Part of the equipment will include an MHE – Material Handling Equipment that will omit the manual handling of shipments. The facility has air and landside access, accommodating offices, courier operations, warehouse process, vehicles and other operational equipment. This helps in being able to appreciate that business may not be working in full capacity now but as the region continues to have integration both from the economic, regulatory and political dimensions we are then able to get to a place where we are able to get a lot more shipments through the facility. Once we already have the facility in place, there will be no need for more investments to think about, as we will just grow to the capacity that we have already built. Q: What are challenges you face that you still face as a business? A: Despite the improvements, we still face a number of challenges including infrastructure that does not meet our requirements; restrictive protectionist and non-harmonized customs rules and processes; and limited connectivity of IT & telecommunications systems. WWW.AFRICAINCMAG.COM
ANDREW MUTUMA, COUNTRY MANAGER DHL KENYA
Q: How has technology plugged into your business? A: One of those things that have helped Kenya is that a lot of people have mobile phones so Internet access is a lot higher than many African countries. This has allowed us to have our customers ask for pick-ups for their shipments online, they don’t have to call us, all they have to do is to get to their accounts and put in certain aspects of their details and we are able to get that through our system without them having to call; we are then able to transmit that information to our couriers in the field. We have introduced new scanner technology that increases the speed at which we can process shipments at both customer locations and DHL facilities and also empowers our frontline employees with access to real-time shipment information, which assist them with workload management. We have also introduced e-billing that also allow our customers to track their shipments online. We are ahead in terms of technological advancement including significantly reducing the amount of time spent travelling to other countries for meetings, through the use of technology. We are increasing the use of technology and we will continue to do so to exploit the benefits that will help us to save costs in running the business. Q: How has online shopping impacted your business? A: While there is huge potential for e-commerce in the region, compared to emerging markets e-retailing in Africa is still in its infancy. However a massive e-commerce market will emerge in Africa by 2017 as the continent becomes more familiar with technological advances. As DHL, we have presence in 220 countries and territories and thus are well prepared to take on online shopping. Consumers however need to be well informed of the different regulations / taxes that will be incurred while importing goods. Q: How do you project the future of logistics business in the region? A: It’s definitely going to get tougher as more and more international players come into the market. I believe this business line is not one of those businesses that have low barriers to entry because it is very expensive to get in to from a software/hardware perspective but even more so from getting competent staff who are able to understand the business. There is definitely going to be a lot more government regulation of the sector as the market continues to be more fragmented because most governments are also growing in terms of their budgets so they are looking for ways to generate money to fund the budgets. We are seeing opportunities in Kenya and we will WWW.AFRICAINCMAG.COM
continue to grow stronger and stronger as the country metamorphoses into something better, systems become stronger, and the benefits of the new constitution become clearer. On the new constitution, the devolved system of government has opened new market frontiers in places like North Eastern region, for example in Moyale, because those areas now have funds and expatriates are moving to those areas and ordering for shipments. The market is therefore going to grow from strength to strength. I believe in a positive outlook for Kenya and possibly in the next 5 to 10 years, we are going to see a lot of changes in this country. Q: What are the critical investment areas for your company in the next 5 years? A: The most fundamental aspect of this business is the people that work for it so our first pillar is motivating the staff and getting them to understand the business. We have therefore developed a training program for all staff that covers our company from a global perspective and there are specific staff members who spend their full time with us to build on that capacity. A motivated employee will provide great service quality, which in turn will result in loyal customers and a profitable network. Another area of investment is in our facilities. We have invested massively in the renovation of our Nairobi Gateway and also our fleet. These investments have also been rolled out in other countries across Sub Saharan Africa. Q: What’s the future of your business in Kenya and Africa? A: DHL will continue to focus on Africa. We are the only courier company that is in 51 African countries. We are very well represented, we have the all the expertise and the equipment and we are very well interlinked in terms of taking advantage of this particular market in Africa and the world. We are in 220 countries globally, over 120,000 destinations so customers have a great opportunity to work with us. We are more than just a courier company. We are a partnership, we are a trade barometer e. g we can tell how tea is not doing well based on the samples that are coming through us. There are various ways we are able to appreciate business and guide our customers. As for the small and medium enterprises (SMEs) that continue to grow in Kenya, we also continue to give them good business opportunities. We have 310 retail outlets in Kenya that we are working in partnership with their owners to grow. These are great opportunities and we shall continue to empower people who work and interact with us to grow their businesses as well. IBA
“A MASSIVE E-COMMERCE MARKET WILL EMERGE IN AFRICA BY 2017 AS THE CONTINENT BECOMES MORE FAMILIAR WITH TECHNOLOGICAL ADVANCES. DHL WILL CONTINUE TO FOCUS ON AFRICA”
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EVENT HIGHLIGHT
AFRICAN HEALTH BUSINESS SYMPOSIUM
H
ealthcare demands in Africa are changing and healthcare systems are at a turning point. The reforms that governments undertake over the next decade will be crucial in improving overall health in the continent. Over the last twenty years, Africa’s population has increased by 2.5 percent per year and in 2015 the number of people living in the continent has been set at 1.17 billion1. This is expected to rise to about 2.4 billion by 2050, with some of the countries doubling or even tripling their numbers; making Africa the region with the largest population growth2. Rapid population growth calls for governments, development agencies, and the private sector to collaborate on strategic investments as well as planning so as to power Africa’s future and to address the current challenges many African countries face in regard to weak institutional capacities, infrastructural deficits, substantial income inequalities and high poverty rates. Despite these challenges, the African region is experiencing steady economic growth due to domestic and external conditions, and predictions for the coming years remain favorable, with growth rates ranging between 5-6 %, well above the world average of 2.2 percent3. The role of the private sector is increasing and widely recognized by the international community as the engine for sustainable and inclusive economic growth. The impact that such growth has on the healthcare sector in particular is that a growing urban middle class is willing to pay for better treatment widening the door to the private sector, which is starting to play a new vibrant role, often working in part46
nership with donors and governments to provide better healthcare services and increased access to medicine at an affordable price. Substantial investment will be needed to meet the growing demand – largely from low and middle-income households, which comprise 70% of Africa’s purchasing power. There has been a paradigm shift in the relationship between public and private sector over the past years in Africa. This enhanced dialogue progress has created a positive trend in enhancing Public Private Partnerships (PPP’s) in the health sector on the continent. The countries in the regions that share culture, traditions and challenges have federated to jointly combat the high burden of diseases within its own boundaries by sharing knowledge and resources to improve overall health for its citizens. We have noticed that the East African, West African, South African, Central African and North African private sectors will all soon harmonize its regional federations towards a positive output to health thus ensuring the momentum is maintained. The aim of the Africa Healthcare Business Symposium is to provide this platform for intra-regional discussion so as to further strengthen the roles played by both the private health sector, the public health sector and development partners. Fostering these relationships will play a major role in promoting the PPP dialogue within the regions and countries through the regional unification of private health sectors under a single umbrella – the Africa Healthcare Federation. IBA
AFRICA INC. | AUG - SEPT 2016
Join these healthcare leader this inaugural sym EVENT
INFORMATION Mr. Roelof Assies Philips, Healthcare Africa
DATE
6-7 OCTOBER 2016
LOCATION
Dr. Ardo Boubou Bâ SAFARI PARK HOTEL, Alliance Nationale du Secteur Privé de la Santé NAIROBI KENYA Senegal
CONTACTS
Dr. Clare Omatseye Healthcare Federation of Nigeria
Nishit Shah, Director Cell: +254 733 799062 nshah@africahealthbusiness.com www.africahealthbusiness.com Dr. Amit N. Thakker Chairman Africa Health Business
Dr. Bernard Hauuku Minister of Health, Namibia
“THE AIM OF THE AFRICA HEALTHCARE BUSINESS Event Partners SYMPOSIUM IS TO PROVIDE THIS PLATFORM FOR INTRA-REGIONAL DISCUSSION TO STRENGTHEN THE ROLES PLAYED BY THE PRIVATE Knowledge HEALTH SECTOR, THE Partner HEALTH SECTOR PUBLIC ForDEVELOPMENT more information and to register visi AND PARTNERS” or email us on events@africa
WWW.AFRICAINCMAG.COM
Join these healthcare leaders and many more at this inaugural symposium Mr. Roelof Assies Philips, Healthcare Africa
Prof. Khama Rogo IFC World Bank
Mr. Kartik Jayaram McKinsey & Co Dr. Ardo Boubou Bâ Alliance Nationale du Secteur Privé de la Santé Senegal Dr. Clare Omatseye Healthcare Federation of Nigeria Dr. Jane Ruth Aceng Ministry of Health, Uganda
Dr. Amit N. Thakker Chairman Africa Health Business
Dr. Bernard Hauuku Minister of Health, Namibia
Event Partners
Mr. Onno Schellekens PharmAccess Foundation
Dr. Anuschka Coovadia KPMG South Africa
Knowledge Health Partner Partner For more information and to register visit www.africahealthbusiness.com 47 WWW.AFRICAINCMAG.COM AUG - SEPT 2016 | AFRICA INC or email us on events@africahealthbusiness.com
DATE: MARCH 21-23, 2017 VENUE: KENYA SCHOOL OF MONETARY STUDIES, NAIROBI, KENYA
The region’s event for the formulation, processing, packaging and safety of dairy, beverages, meat, fruits and vegetables, processed food, sugar & confectionery and food service
The region’s event for the post-harvest, formulation, processing, packaging and safety of grains, milled products, snacks, baked goods and animal feed
AFRICA’S LEADING FOOD, BEVERAGES, MILLING AND FEED INDUSTRY EVENT AFMASS showcases: • Processing equipment and technologies • Packaging equipment and supplies • Ingredients and chemicals • Energy, water and waste management solutions • Laboratory equipment, testing and services • Food service and retail equipment and solutions • Food safety solutions
AFGRAINS showcases: • Milling and baking equipment and processing technologies • Packaging equipment and supplies • Post-harvest and sorting equipment and solutions • Milling and baking ingredients and additives • Feed processing equipment and ingredients • Food and feed safety solutions
AFMASS Eastern & Central Africa 2017 offers excellent sponsorship, exhibition and product partnership opportunities. Contact the organisers for more information and rates. FoodWorld Media • P.O. Box 1874-00621 – Village Market, Nairobi, Kenya Tel: +254 20 8155022; +254 725 343932 | info@foodworldmedia.net Please log onto the event website for more information:
www.afmass.com