TAR123 – Q2 2023 – TOP500 African Champions

Ra mapho sama yn otbeable to de li ve ra‘ Ne wD ea l’. Hema yy etbecome th e‘ GodofSmallThings’.

HARVESHSEEGOLAM CentralBankGovernor, Mauritius:“Wewilllaunch adigitalrupee”

GREENGOLDRUSH Will Africabenefit fromstrategic minerals?

SAFARICOM’S PETERNDEGWA: “Weunderstood theEthiopiaopportunity”

Whichfirmshavecomeoutontop?

WhichcompanieshavethriveddespitetheCovid-19pandemic,and whoisinbestshapetoreapthebenefitofhighercommodityprices?

Our2023editionof Africa’stop500companies reveals areshufingofthepackamongthecontinent’sheavyweights.

ABAN KFOR TH EN EW WORLD

totalpopulationof 1.4billionissetto double overthenext25 years,arguetheyare grossly under-representedindemographictermsat theBankandattheIMF

Thisunder-weightingoftheGlobalSouth translatesfromvotingrightsintoquotaallocations –the amount acountrycanborrow –attheIMF.Morewidely,Africanmember stateswantmoreseats intheBank andIMF boardrooms.AscellphonepioneerSirMo Ibrahimargues:“If we failtofind away for youngAfricatofitintotheagingmultilateral system,thenthesystemwillbecomesclerotic andirrelevant.”

WorldBankboffins have been workingthis yearon areform roadmaptoboostclimate finance.That worries thoseshareholderswho fearitcouldmarginaliseitsinitialmission offightingpoverty.Bangarightlyinsiststhe twoissuesare “intertwined”.Theriskisthat itcomesdowntochoosingbetweenfunds forthepoorestcountries andmorecashto stoshun

Whenfinanceministersandcentralbankers mullthechangingoftheguard at the Worl Banktheywill alsobe assessingthefutureo thisseptuagenarianinstitution. As intheUN Security CouncilandtheIMF,shareholders fromAfrica, Asiaand LatinAmerica want avoiceintheBankthat reflectsthe weight of demographicand economicchanges inthe21stcentury.

TheUS’s nomineetobethenext World Bankpresident,AjayBanga, has been welcomed acrossAfrica, AsiaandEurope. Yetanew chiefwillnotbeenough.He willberunninganorganisationplagued by financialpressures,geopoliticalchallenges andpolicydisputes. Banga,who steered therise ofMastercardtoa $300bn paymentsplatformfrom acredit-card companywortharound$20bn,is astar on WallStreet. Thatshould persuadebig firmsto workmore closelywiththeBank.

Someoftheknottiestproblemsconfronting Bangaarebeyondmoney. Suchas reforming quarrelsomebehemoth with189memberstates, 25 executivedirectorsand 27 vice-presidents

Acoregripeis structureand representation withintheBank.China,whichproducesabout 18%ofglobalGDP,complainsaboutits vo ingrightscompared to theUS,Germany an Japan.AfricanUnionmemberstates, whos

playingoutagainstthe ndfinance onomies, shington ndglobalisationin urofprotectionism,subsidisedmanywantto contain,China. onfiguraEuropeanUnionand happens pmentambitionsoftheGlobal ons such ean arena ithoutbetter coordinationandtoughernegotiatingstances, Asiaand rsasthebig

#123 /April-May-June2023

52 500CORPORATECHAMPIONS

Ourrankingofthe continent Top500 companies, covering 2021,shows notonlypost- Covid recovery but thehighest cumulativeturnoversince 2014.

82 INSIGHT /Africa-Germany

Thes cramblefor energy caus ed by Russia’s warinUkraine has prompted Germanytoturn it seyes tothecontinentfornew tradede als and par tner ships.

42 ENERGY DOSSIER

Symbion Poweris airliftinghydropowerto awholeof f- grid city, plus Eskom, Kenyan pricehikes and nuclear projects from Kore a.

90 LOGISTICS DOSSIER

Eg yptair’s pra gmatic approach, theSecond NigerBridgeand Transnet ’s PPP flop

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FEATURES

26 WIDEANGLE /Africaseeks‘greenminerals’advantage

Theracefor rare earthminerals and rivalr ybetween theUSand Chinapre sent s an ‘epo chal opportunit y’ formineral- rich countries.Z ambia, theDRCand Nigeriaare amongthecountries re adytos eize it.

34 SOUTHAFRICA /Thefirenexttime

As anew politics emerges in SouthAfrica, theANC is facingits toughes tbat tle yet,le avingPre sidentRamaphosa to dial downhis ambitions.

100 MAURITIUS FOCUS

Withtourists floo ding backand theopening of Africa’s third RenminbiClearing Centre, Mauritiusis bullish on grow th

PRINTER:SIEP77 -FRANCE N°DECOMMISSION

PARITAIRE :0725-I-86885 Dépôtlégal àparution/ ISSN1950-4810

THEAFRICAREPORT ispublishedby AFRICAMEDIAGROUP

BOTTOMLESS PIT

Pivotingtothe West by PresidentHichilemais not going to helplift Zambiaoutofpoverty inthe long run.Why?

WesternprivateFDI ishardly everaligned withAfricancountries’ sovereign economic interests.Itis almost alwaysexploitative financially,economicallyand ecologically.[…]

In my owncountry, Kenya,our President WilliamRutometwith BillGatesjustafterhis inaugurationin August last year andisnow aloud proponentof GMOagriculture, apet subjectwithGates. The economic, environmentaland foodsecurity concernsofmany Kenyanshave seemingly beenignored.

PresidentHichilema willneed to carefully considerZambia's engagementwiththese billionaires […]ashe pivots away fromChinese FDI.Otherwise,he'll be anothersad footnotein history,amongAfrica’s otherspinelessand clueless leaderswho

auctionedtheir nations’ wealthfortheproverbial 30pieces of silver.

AnthonyKuria

DEMOCRATIC ILLUSIONS

TheEmmersonadministrationislittledifferent from Mugabe’s;indeed it’sanextensionof it.Assuch,there'sno real democracyinthat economicallyblighted country.Mydeepsympathiesare with ordinary

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THEFALLOUT FROM PE ACE

Ifsustainablepeacein Ethiopiaisthe desired effect, [PrimeMinisterAbiyAhmed]isnot making therightchoices.[…]Hedidnotfree Tigray fromallforeignandnon-ENDFforces, hisforcesare colluding withtheirEritreanallies, andthe protectionofciviliansinTigrayisbeing neglected.Hehasalso beenagainstongoing initiatives ofthird-partyinvestigationsintoatrocitiescommitted.Sustainablepeacewillnotbe assured unlessthesebasic expectationsaremet […]Astothe choicethat Tigray authoritieshave to reintegrateintothe Ethiopianpolitical mainstream, Ifirmlydisagree.Whattheyshoulddo is maintainminimal representationatthefederal levelandconfinethemselves torunning Tigray Idon’tthinktheyhaveaplacein Ethiopian politics,and nor does theTigrayanconstituency.

Muluget a

Zimbabweans,whohave endured extraordinary hardshipsimposedby acorruptauthoritarian regimewhichtoleratesno opposition.

Gilber tAlabi Diche, Jos, Nigeria

MUTUALLY BENEFICIAL?

SouthAfricaisemerging as astrongnationof Africa, expressingand actingfreely,sometimes againsttheUS. Congress

[ispushing]theUS Presidentto[censure]

SouthAfricaso thatthe other[African] countries maycarefullydistance themselves fromRussia andChina. Sensingthe waningofAmerican prowess,warnings appear tohave noimpact onAfricancountries. Whilemaintaining good relationswith[theUS], theycontinueto deal with Russian and Asian economicpower. Anon

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ADVERTISERS’INDEX

CIB P2;AFRASIABANK P5;LAGOSFREEZONE -TOLARAM P7;DIFCOMEVENTS P10;REP. OFNIGER P14-15; EBOMAFP19;REP. OFCOTED’IVOIRE P21-24; AFRICACEOFORUM2023 P33,89;REP.OFBENIN P41,73;MYTILINEOSHOLDINGS.A. P45;PERENCO P50-51;OCPAFRICA P63; ETEXNIGERIA P65; REP. OF GABON P68-69;SUBSCRIPTION TARP77;GFACONSULTINGGROUPGMBH P85;VERIDOSGMBH P85;UBAP 87;MSC P95;JETSTREAM P96; TANGERMEDENGINEERING P97; MAERSK P99;ROGERS P105;CIELGROUP P107;HARELMALLAC P109;EDBMAURITIUS P111; NINETYSIXHOTELCOLLECTION P113;EURONEWS P115;MCBGROUPP116

TheAfricaReport’sexclusiveguidetothequarteraheadfeatures keyeventsfromtheworldsofpolitics,businessandculture.Find outmoreabouthowtoplanyour April,May&June:willyoube headingtoAbujafortheinaugurationofthenewpresident?Will youbewatchingthepriceatthepump?Andhaveyoureserved yourspaceatTheAfricaCEOForuminAbidjan...?

End-to-endLogisticsinAfrica

ShapingAfrica’slogisticslandscape

On acontinentclockingupdevelopmentmilestonesat arapid rate,including aContinentalFreeTradeArea, solidsupplychainsandend-to-end logisticsarekeyto ensuringseamlessandsustainable interregional and internationaltrade.Maersk,presentinAfricasince the 1950’s,is tailoringitsintegrated logistics strategies and solutions to partnerAfricainmeetingAUAgenda2063 goals and contributetothe continent’s potentialas akey playeringlobaltrade.

Infrastructure challenge

Despit er ecentl yu pgradedandefficientports, developmentisbeingheldbackby weak roadand rail densityandpooraccesstoelectricity.With theAfrican Continental Free Tr adeArea(AfCFTA)set to spark ap ro je c te d2 8%increaseinintra-Africantradeand demand foralmost2million trucks,100,000 railwagons, 250aircraftand ove r1 00 ve ss elsby2030 ,t ra nsport, localinfrastructureand logisticsarecrucialareas for investment.

Maerskaims to connectandsimplifyglobalsupply chains byaddressingthe bottlenecksfacedby their customers inAfrica. Variousinvestmentshavebeenmadeacross the continentin termsofLogistics Parks,ColdStores andintegratedsolutions to driveeconomicgrowthand improve the flowof food ,goodsanddatathatsustain people,businessesandeconomiesthe world over.

Trainingandupskilling

Increasedmanufacturing andlocalsupplychainsmeans bringin gal argelyi nformal ,u nskilled wo rk fo rcei nto the formalsectorwhiletheadventofdigitaltechnology haschangedthe conventional skillsetin everysector, requiringupskillingof traditional rolesandintroducing

newones.Maerskhascreated acultureoflearningwithin thecompany to build apoolofhighquality,skilledand knowledgeableemployees,launchingtraining courses inthenecessaryskillsfor atechnology-drivenfutureand developinganinternalAfricaLeadershipDevelopment Programme. We alsostrivetoattractyoungpeopleto ourindustryand,throughourpartnershipwithLawhill Maritime CentreatSimonsTownSchoolinSouthAfrica, prepare them formaritimeandrelatedindustries.

Digital transformation

Theanswertomany ofAfrica’s supplychain woesare digital.Cloud-based supplyc hainsof fe ra two- wa y information exchangewithsupplychainpartnersinnear real-time,easyaccess to information,scalabilityand reliability, reconfigurability,andhighperformance–all withoutcomplex infrastructure management.As aleading end-to-end logisticscompany,Maerskhasdeveloped logisticsandsupplychainplatforms,continues to design digitaltools thatprovidevisibilityas wellaspredictability that supports companies to anticipateand predictmarket changesand disruptionsacrosstheirsupplychainsothat theycan scalequickly in response.

Streamliningcustoms

Africa’sdigitaltransformationstrategy (DTS)aims to build digitalinfrastructureanddigitalpublicinfrastructure (DPI),essential to supportingtheAfCFTAandenabling smooth cross-borderinteractions.

Maersk’sSupplyChain Managementplatformintegrates thecustomsprocessfor exportdatamanagementand downstreamimportbenefits,inlinewithAfrica’sdigital singlemarket(DSM)aspartoftheAfCFTA,wheredigital solutionsandaccess to datawillalso streamlinecustoms procedures. www.maersk.com

Features

26 WIDEANGLE

Africaseeks‘greenmineral’advantage

AstheUScompeteswithChinatodiversifysourcingofmetalsfor ‘green’transportandcommunication,Africancountrieshave aunique opportunitytocalltheshotsandaddvaluetotheirmineralriches.

34 SOUTHAFRICA Thefirenexttime

After30yearsinpower,supportfortheANCiswaningand anew politicsisemergingwithinandoutsideparliament.PresidentCyril Ramaphosamayhavetoputhisbigplansonholdjusttostayafloat.

Afanfareofrecoveryishowour24thranking ofthetop500Africancompaniesmightbe bestdescribed.Withtotalprofitsof$80,84bn forthisedition,whichcovers2021,the cumulativeturnoverjumpednearly12%

By PIERRE-OLIVIERROUAUD

Standingat$6 64.93bn,theturnover ofthis ye ar ’s ranking ofAfrica’s Top 500companies is atitshighest level since2014,whenithit$690.5bn.The high-watermark for the Top 500 remains2012,with$757bnin earnings.

This upturnincorporateactivity isalso reflecte d inprofits It evokes Africa’s economic re coveryin2021, before variousdisruptionsarrived, includingthe war inUkraine, inflation, rising interest rates and depreciating continentalcurrencies

Commodityandcurrency slumpshittwo ofAfrica’s he avyweight economies – NigeriaandEgypt – in2015 and2016 SouthAfrica,to a le sser extent, has face d thesamechallenges.

The Top 500performancealsoserves to draw a line underthe Covid-19pandemic. Inourprevious edition, cumulative revenues for the2020fiscal year were down by 3.9%

Asa reminder, our ranking, asusual,is expresse d in US dollars. It reflectstosome extentthe evolutionof currency parities MostofthemajorAfricancurrencies we akene d in 2021 againstthegreenback.

On average, accordingtoUnite d Nationsdata,the randandtheCFA franc lostbetween 7.5%and5%, re spectively. The Egyptianpoun dre maine d virtually unchange d in2021, before a series of devaluationsthatstarte d inMarch2022caused itto losehalf ofits value Thisislikelytohave a negative impact oncompanies in Egyptin next ye ar ’s ranking

Onthegrowthside in 2021, accordingtotheAfrican DevelopmentBank(AfDB),thecontinent’sGDPjumped 4.8%,including 4.5%insub-SaharanAfrica.Thiscomes after a 2.1% dropin2020.

ApartfromSouthSudanandEquatoria l Gu inea, everyAfricancountry revelled in positive growth rate s in2021 Some were among the best inthe world,such as Rwanda(+10.9%),Morocco(+7.9%), Côted’Ivoire (+7.4%), Kenya(+7.5%) and theDRC (+6.2%).

Thecontinent’s three largest economies experience d more measured leve lsofgrow th,namely 3.6% fo r Nigeria, 3.3% for Egypt, and 4.9% for SouthAfrica.

Inadditiontothe more stable economic conditions, manycompanies intheprimaryandagriculturalsectors have enjoye da spectacular re cove ryincommodity price s as a resultofinvigorate ddemandafter Covid, particularlyfromChina.

Petroleumbouncesback

Inourprev io us ed ition,thetelec omsecto r showe d great resilience This ye ar, itistheother way around: without having failed, many operators such as MTN (#6) , Vo dacom(#17) , or Maroc Te le com(#41) are losing place s togroupsoperating in cyclicalsectors –oilandgas inparticular.

In fact, oil experience d anunprecedente d situation attheheightofthehealthcrisis, withthepriceof We st Texas Intermediate (WTI) fallingbelow zero on 20April 2020 In2021, accordingtothe World Bank, WTI’s average annualprice re ache d $68perbarrel,compared with$39.3 theprevious year. Prices thenshotuponthe backoftheUkraine war.

Thishasbooste d Africa’s oilsector, whether internationalgroupsornationalcompanies. Sonatrach(#1) isatthetopofour ranking, as usual,with the Algerian giantseeingits exportactivityincrease by 75%.

Itisnottheonlyone:theAngolannationaloilcompany Sonangol(#12),de spite a dropinproductionof about10%in2021, isbackinthe Top 15andhasgaine d eightplaces inour ranking In Luanda, the government has re ite ra te d itsintent io n tolis t thepubl ic -sec tor grouponthestock exchange by 2027, especiallyasnew discoveries have strengthene d Angola’s positiononthe oilandgas scene, alsobenefiting ENIAngola (#50).

$665bn

Thetotalturnoverofthe500 companiesinourrankingthisyear, reflectingareturntoform

TotalEnergies Gabon(#213) saw its2021 revenuejump 50%toclimbup65places. Nigerian giant NNP C (#4) – sub - Saharan Africa’s leadingoilproducerin2021 butlatterly dethroned by Sonangol – hadprev io usly fa llen away in our ra nkingduetoitsinability toprovide certified accountdata. But, since2020, theMele Kyari-led company hasshownmore rigour

andtransparency, consolidatingitsplace amongthis ye ar ’s eliteandcominginalmostneckandneckwith South Africanutility Eskom(#3).

NLNG(#21),a he avyweightinliquefied gas and a subsidiaryofNNP C (in a joint venture with Shell), is currently engaged in a huge expansionproject(Train7).

Amongtheoil- distributionplayers is a recentmerger thathas yet tobevisible inour Top 500: Vivo’s takeover oftheSouth African-base d Engen(#24).

TheNigerian-base d Oando plc, anothermajorplayerinoildistribution,isonceagain absent fromour ra nking.Af fe ct ed by serious governanceproblems, theliste d grouphasbeenunable todiscloseaudite d accounts since 2019.

Miningcompaniesattheparty

Alongside oil andgas, many other extractive resources have re covere d in2021, suchasironore. Its average pricehasrisen by 48.5% to$161.7 pertonne, according to World Bank calculations.

While waiting for the Simandouprojectin Guine a tocommence, establishe d operatorssuchasthegiant SNIM(#88) aretakingfull advantage. The Mauritanianstate- owned group, whoseturnover expresse d in dollarsincrease d by more than a third,has move d up21place s.

The average annual value of phosphatehasalsosoared by nearly 62%, tothegrea t benefitofthe OCP group(#11), whose turnover in

TOPCLIMBERS

INNSCORAFRICA (#293)

SOCIÉTÉNATIONALEDEGÉNIECIVILETBÂTIMENTS (#348)

Zimbabwe440.4+566%

Algeria333.3+339%

NORTHAMPLATINUM (#73) SouthAfrica2135.8+182%

SONATEL(ORANGE) (#68)

TOP FALLERS

dirham rockete d 50%,enablingthecompany toclimb four place s and comecloserto enteringthe Top 10

Co mbin ed wit ht heal m ost comp le te re cove ryof operationalactivityinthemines, the persistentlyhigh priceof gold andthe revivaloftheplatinumpricehave helped thelikes of Anglo-AmericanPlatinum(#5). The SouthAfricancompany saw its valuein rand double in2021, movingupthree place s andsteppinginto the Top5 ofour ranking.

Newandtraditionalminerals

As fo r itscompatriot Sibanye -Stillwater(#7) , its businessgrew by 35%in rand(and50%inUS dollar), fuellin g th e company’s di ve rsif ic ationint o energy transitionmetals

In theDRC, thecopper-focuse d state- owne d mining holding Gé camine s (# 27 5) , whichhaswitnesse da re cen t le adershipchange, has move d up 66 plac es The averageannualpriceof re d metalhasrisenfrom $6,174 per tonnein2020to$9,317in2021.

AlsointheDRC, the new Kamoa-Kakula copper mine, (#173),h as en tered th e ra nkingwit ha bang. Initiated by theCanadian company IvanhoeMine s, th ispartnership projectwithChinese-base d Zijin Minin g did no t startproduction untilthethird quarterof2021

Prices ofsome agriculturalcommodities, including cocoa,staye d stable in2021 Butothercommodities spi ke d, fo re shadow in g the

inflationsurge of 2022,suchaspalm oil, whose average priceincrease d by 50%.

Asa re sult, Palm-CI(#349), thesubsidiaryofthe Ivoriangroup Sifca(#147), move d up71place s.

Alsoconfirme d this ye aristhepost-Covid re activationof logisticschains, as evidence d by the 11.7% increaseinactivity ofthe Port Autonomed’Abidjan (#461), wh ic h hasmove d up30place s, an d Marsa Maroc(#317), whosetraffic hasincrease d by 32%and revenuein dirham by 30%.

Growingdistributionacrossregions

Finally, this editionofour rankinghas demonstrate d little change from a ge ographic standpoint.

Souther n Africaan d Nort h Afr ic a stillcarr y an overwhelming weight inthis Top 500, representing 55%and 25% respectivelyoftotal revenue s, followe d by We stAfrica(14%),andEastAfrica(4%). Central Africafinishe d lastwith 2%.

Intermsofcountries, SouthAfricacontinue s to standhead-and-shouldersabove the restwithits156 companies representing 49.4% ofthe total, followed by thosebase d inEgypt(8.7%),Nigeria(8.0%),Morocco (7.3%),andAlgeria(6.6%)

Howe ve r, SouthAfrica’s do minancehastend ed to wane. Fiveye arsago, inour2018 edition, South Africangroupsalone were good for 57%ofthetotal, before graduallyslippingto51.6% last yearand falling below the 50%markinthis edition. A welcomesign of a betterdistributionofcorporate economic power onthecontinent, perhaps.

METHODOLOGY

Howarethe500ranked?

To produceourexclusiverankingbased oncompanies’turnover,oureditorialteams compileddatafrommorethan1,200 Africancompanies.Alldataisfromthe 2021fiscalyear.

Onlycompanieslegallydomiciledon thecontinent,holdingcompaniesandtheir subsidiariesaretakenintoaccountin the Top500ranking.Addedtothatareafew exceptionsintheresource-extractionsector, wherecompaniesaresometimeslisted outsideAfrica.

Allfigureshaveanidentifiableorcertified source.Somefamily-ownedgroupsdonot drawupconsolidatedaccounts,whereas othersdonotpublishanyaccountsatall. Theyareexcludedfromtheranking –asourceofregret,giventhemanystrong family-ownedgroupsonthecontinent. Seeouropinioncolumninourdigitaledition tounderstandwhy.

Thefiguresarefortheyearending2021 oruntilJune2022.Inthisrespect,this editionintroducesachangeofmethodconcerningtheinclusionofcompaniespublishingresultsnotbasedonthecalendaryear.

Withinthemid-yearlimit,themostrecent fiscalyearisnowtakenintoaccount(e.g., June2021/June2022insteadofJune2020/ June2021aspreviously).

ThedataisconvertedfromnationalcurrenciestoUSDattherateoftheclosingday ofthefiscalyear.Intheabsenceofdata,we arepublishingthefiguresfromtheprevious rankingforcertaingroups,whichareshown initalics.Aftertwoyearsofprovidingno accounts,thecompanydisappearsfromour Top500list.

Thisyear,wearesynchingourresults withoursistermagazine JeuneAfrique; therewillbesmalldifferencesintheresults relatedtoourpreviousasynchronouspublishingin2022.Finally,asareminder,this Top500excludesthebankingandinsurance sectors,whicharethesubjectofadifferent ranking,publishedseparately.

MT N Grou p (# 6) To tal cash pr ofi t be tween 2012-202 2 for Africa’s le ading telec oms gr oup was $12bn, with annual dividends pr oving a useful anchorforpensionfunds.

‘There is no doubtweneedtowiden anddefendthe taxsystem in thecountry.But we also cannot overregulate or overtax.’

OMOBOY EDEOLU SANYA, CE OofF lour Mill sofNig er ia (# 55 )

‘A llar easacr oss allprovinc es [have] challenge sinthe pr ovision of

Ne st léNi geri a (#16 8) ’s turnover was up 27% in 2022 to N4 47bn($ 970m), partly lifted by a re turn to gr ow th in the wider ec onomy.

‘2024isthe yearwetur nprofi table, and2027iswhen we be come sustainable.’

In 2022, turnoverfor Gu in es s Nig er ia (# 26 4) was up 29% to N206bn($ 447m), as thir st y Nigerians reengaged with bars and re staurants pos t- Covid.

‘T hisperformance is gratif ying consider ingadif ficult operating environmentwithfi er cecompetition […].’

DA RREN HE LE , CE OofFamou sBrand s(#3 05 )

CONTRIBUTINGTOTHE SUSTAINABLE GROWTH OF AFRICANFOODSYSTEMS

OCPAfrica’smissionistoencouragecommercialfarming.LocatedinMoroccowith12subsidiaries and212employeesrepresenting17Africannationalities,OCPAfricais amulticulturalAfrican companythatcontributestooptimizingtheagriculturalpotentialofthecontinent.

OCPAfrica,sinceitsinception,hassupportedagriculturaldevelopmentstrategiesanddeveloped large-scaleprogramstopromoteefficientandstructuredfarming.

OCPAfricaimplementsmajorprogramstoimpactsmallholderfarmersandtheentireagricultural valuechainbyleveragingitsagronomicandtechnologicalstrengths.Since2016,millionsof smallholderfarmershavebenefitedfromitsflagshipprograms.

Ca ir o Po ul tr y (# 361) Consolidate d pr ofi t at the Eg yptian B2B and retail supplier jumped 80.5% ye ar-on-y ear in the fir st nine months of 2022

2021resultsinmillionsofUSdollars;*initalics2020results;ND:nodata,NE:NewEntry

Go lde n St ar Re so ur ce s (# 40 6) TheWassa (Ghana) miner was bought by China’s Chifeng Gold for $470m in January 2022

‘SinceDecemberwecanreceive 14,000-TEU ships–wewantto make theAbidjanAutonomousPor tarealhub for theregion.’

HIE NYACOUBA SIÉ, CE

d’Abidjan(#4

61)

PERENCO, CREATINGENERGY OPPORTUNITIES FOR30YEARS

30yearsago,HubertPerrodo, FounderoftheGroup,hadtheidea oftakinganinterestinmatureoil fields,closetoabandonment, tobringthembacktolife.

ThestrengthofPerenco’smodel isthereforeforgedonitsabilityto revitalisetheproductionofmature ormarginalfields:takeoverand investto renovate,adapt,optimise and redeveloptoproducethem responsiblyandprofitablyfor allitsstakeholders.

Thus,eachyear,Perencoinvests nearly 3billiondollarsinitsfields andfacilitiestoapplythe latesttechnologiesinvented andpatentedbyitsteams.

TheOguendjofieldinGabon,thefirstfieldtaken overbytheGroup,isanexcellentillustration. Commissionedin1983thenboughtin1992by Perenco,itsendoflifewasestimatedat5years. 30yearslater,however,itstillproduces1,000barrels perdayandisduetoundergo amajor redevelopment projectintheyearstocome.

Otherfieldsfollowed,othercompaniesaswell,proof ofthemodel.

15yearslater,Perencomadethesameobservation ontheassociatedgasproducedwithoil.

Initiallyburnt,Perencowonderedhowto recoverthis other resourceassociatedwithoilproduction.

PERENCOTHENINITIATED APROCESSOFGASRECOVERY INAFRICATOPRODUCEELECTRICITY

•InGabon,Perencohasbeensupplyingthegas necessaryfortheproductionofnationalelectricity since2008,whichtoday represents100%ofthe electricityinPort-Gentiland70%inLibreville,as wellasgasfor anumberofindustries.

•InCameroon,KPDC(KribiPowerDevelopment Company)startedup a250MWplantin2013 powered100%bygassuppliedbyPerenco.This plant represents30%ofnationalelectricity

•IntheDRC,Perencohasbeensupplyinggasand electricitytotheentirecityofMuandasince2001, includingvariousinstitutions,suchasthegeneral hospital,andalmostallthevillagesintheterritory

•orerecentlyinChad, 7monthsaftertakingoverthe BadilaandMangarafields,Perencoisproviding thegasneededtoproduceelectricitytosupply Moundou,thecountry’seconomiccapitaland secondcity,whichuntilthenhadnocontinuous publicsupply.

INLIGHTOFTHESEACHIEVEMENTS, PERENCODECIDEDTOINDUSTRIALISEITSGASPRODUCTION BYDUPLICATINGITSSUCCESSFUL MODELFORTHEDEVELOPMENTOF MARGINALOILFIELDS

•IntheDRC,inordertostoptheflaring,Perenco hasstartedtheinstallationof anetworkof compressorsandpipelineswhichwilleventually connectnearly400wellstomakethemconverge towards aplannedLPGproductionplantof10,000 tonnesperyear.

•InGabon,intheprovinceofOgooué-Maritime, theBatangaplantcurrentlyunderconstruction willmakeitpossibletoproduce,fromthesecond halfof2023,15,000tonnesofLPGperyearfor theGabonesemarket,enablinga reductioninits importsbymorethan40%.

Perencoinvestsinthe recoveryofgasintheformof LPG(LiquefiedPetroleumGas)andLNG(Liquefied NaturalGas).

•InTunisia,theOumChiahprojecthasbeen producing26,000tonnesofLPGperyearsince 2008.

•InCameroon,PerencobuiltanLPGproduction unitin2018toproducedomesticgas,whichuntil thenwasmainlyimportedandsubsidizedbythe CameroonianState.The restofthegasis recovered in afloatingliquefactionunit,theHilliEpiseyo,the world’sfirstFLNGvesselconvertedfromanLNG carrier.ThisproductionnowallowsCameroonto reduceitsLPGimportsbynearly40%.

•InFebruary2023,Perencoannounced anew projectworthmorethan abilliondollarsforthe transformationandmodernisationoftheCap Lopez TerminalinGabonandtheconstruction ofanLNGproductionunit.Inthefirstquarterof 2026,itwillallowGabontobecomeself-sufficient inLPGandanexporterofLNGwith along-term annualproductiontargetof700,000tonnesofLNG and30,000tonnesofLPG,whilecreatingseveral hundreddirectandindirectjobsinthecountry.

Bycarryingoutseveralpioneeringprojectsinthe gassector,Perencohasestablisheditselfasoneof themajorplayersinitsdevelopmentontheAfrican continent.

Furthermore,bycombiningoperationalexcellence andsustainabilityin theimplementationof its operations,Perencocontributestotheprovision ofnew revenuesforStatesandtothesupport ofstrategiesforenergyindependenceandthe reductionofcarbonemissions.

SafaricomCEO Ndegwa leads the charge on Ethiopia subsidiary

Renownedforhisexecutionandmasteryoffinance,PeterNdegwaisamanwhoavoids thepolitical.Afternearlythreeyearsatthe Safaricom(#58) helm,hehassuccessfully revitalisedthegroup,whichwasonceoverlyfocusedonthedomesticmarket

By QUENTINVELLUET

Clean-shaven anddressed tothenines, Peter Ndegwa isasattentive tohisappearanceas heistobeing discreet. Little isknownabout theSafaricomCEO, apartfromthe factthat he loves golf, regularly spends hisholidays on thecoastof Watamu(about100kmnorthofMombasa), andlikes to walkonthewhitesandsofMauritius.

Although heperhapscutsanaustere figure tosome, Ndegwa isapproachable andpleasant, as The Africa Report foundonspeaking tohimonthesidelines ofthe World Mobile Congress inBarcelonain earlyMarch.

What everyoneseemstoagree onisthatthe53 -yearold fromtheEastleigh districtofNairobi,whoruns 25kmper week,isamanoffigures.Acertified public accountantwhograduated with an economics degree fromtheUniversityofNairobi,heholdsanMBAfrom LondonBusinessSchool.

Partofhisbusinessacumenincludes his fearlessness whenconfrontingthemostdifficult decisions,suchas changingSafaricom’s corporateculture.

KaptainKPI

Since takingthe helmatSafaricom inApril2020, he has eschewed favouritism,whichisoftensteepedintribal logic. Under hismanagement, what reallymattersis key performanceindicators.

“Safaricomis a bigship thatne eds time to change course, butthanks to[recent]management, [we mightsee]progress inthe way things are done,” says a formerSafaricom executive.

AccordingtoSitoyo Lopokoiyit, interimmanagingdirectorofM-Pesa, Safaricom’s mobile bankingservice, Ndegwa iscurrently fighting a tough

battle against “suppliercartels” thatimpose a “corrupt” system.Ndegwa,however, says thisissue“isno longer a concern”. Theproblemhasbeensolved by the fact thatSafaricomisnow using Vodafone’s procurement company. TheUK’s VodafonehasastakeinSafaricom.

Ndegwa stepped inwhenthe localmarketbecamesaturated and Safaricom was languishing withslowing growth. Thetiming was right:hetookhold ofthecompany asit was leadingaconsortiumtotapthe Ethiopianmarket.

Addisorbust

In Ethiopia,Africa’s second most populouscountry, anelectronicupgrade– rangingfrom4Gnetworksto mobilemoney– remainsonthecards.

“Wehadtomakesurethattheboardofdirectorsunderstoodtheopportunitythatthecountry represented,at atimewhenothercompetitorshadchosentowithdraw fromthe race,” Ndegwasays.“In10 years’time, we’ll realisethat it was thebest decision tomake,” he asserts, addingthatthechallengeismoreabout executionthan goodbusinessstrategy.

Theprivateoperator ’s licenceobtained for$850min April2021in AddisAbabaisa long-termgamblethat re quires $8.5bnofinve stment over 10 ye ars, during whichSafaricom’s earningsmight wellshrink.

Safaricom,which was founded in 1997, estimatedits userbaseatmorethan42millionpeopleanditsturnoverat KSh298bn($2.3bn)in2022, including KSh55bn inprofits, despite thehe avy inve stmentsmade inits newsubsidiary.

Safaricomprofitsin2022,despite heavyinvestmentsinEthiopia

Accordingtofinancialmarket estimates, Ethiopia is likelytopose a significantburden onSafaricom’s profits in2023and2024, whichare

Sharp, decisiveand fearless: Safaricom CEOPeter Ndegwa

foreseento fallbelow KSh50bn. “We willbeprofitable after four years,” says Ndegwa.

M-Pesa isconsidered anaccelerator for Safaricom, whichithas recently expanded intodifferent Africancountries Today, themobile-money service accounts for 38%oftheoperator’s revenues. Thissegmentisdriving thegrowthofthegroup, 35%ofwhichis controlled by Vodacom,itself70% owned by Vodafone

Themobile-bankingservicehasthepotentialtodiversify intoinsurance, healthservices ande-commerce, oneof Safaricom’s priorities for 2023, alongside Ethiopia,the the development offixed internet (fibre andfixed 5G), andthe internetofthings (IoT).

“TheBritishthink they can defineM-Pesa’s African strategyfrom where they are, buttheyfailed inSouth AfricaandGhana,” says a formerSafaricom executive, speakingonconditionofanonymity.

Balanceofpower

Internally, Vodacom’s desiretocontrolM-Pesaistroublingandhastended tocementthe relationshipbetween Ndegwaand Lopokoiyit.

“Sitoyo Lopokoiyithasthe realpower andstrategic vision,”the formerSafaricom executivesays,adding thatthetwo bosses haveverydifferent ways ofcarrying outtheirduties. “Sitoyo is a long-termstrategistand a telecoms veteran, while Peter remains a financier focused ontheday-to -day financialperformanceofhisgroup.”

Whenhetookcharge ofSafaricom,Ndegwa closeda 14 -year chapterinconsumer goods, more thaneight of which were with theBritishspiritsgroupDiageo, which he led fromAmsterdamfrom2018 to 2020.

According to oursources, his work a few years earlieratthehelmof GuinnessNigeria was noticed by the Vodacomboard andtheUhuru Kenyattaadministration. Hissix-year stintat PwC in Londonmade hiscredentials evenmore appealing.

“Ndegwa wasa perfectmatch for the criteria,[andwhat] theboard andthe government were looking for–a Kenyan leaderwith a successfultrack record in a multinational

company,” says the formerSafaricom executive. “His experienceintheconsumer goodssectormusthelphimin hisday-to -day work, asthere are real similarities between this industry and the telecom industry,” the executive adds.

Ndegwa gained his experienceand knowledge inthetelecom sector duringhis first years workingunderthemanagementofMichaelJoseph,the former Safaricom CEOandpredecessor of thecharismatic Bob Collymore.

Womenonboard

Februaryboard changes included theappointmentof Karen Kandie, directorofparastatal reforms, including finance,at Kenya’snationaltreasury, replacingStanley Kamau.OryOkolloh,the “cybermilitant”who founded Ushahidiandisnowa partner atinvestor Verod-Kepple Africa Ventures, replacesBitangeNdemo.Theboardis now equallybalancedbetweenthesexes.

Ndegwahassinceplacedpeopleclosetohimin key positions.EstherMasese,the formerdirectorof KCB CorporateBanking,was appointed directoroffinancial service s. Herprede cessor, BonifaceMungania, was nameddirectorofdigitaltransformation forthepublic sector, while Zizwe Awuor Vundla,the ex-marketing directorofDiageo in SouthAfrica,becamebrandand marketingdirector.

Buthow muchsupportwillSafaricom’s top executive have from the new rulingmajority?

While rumoursquicklyspread thatNdegwa would resign fromhispost followingthe resultsof Kenya’s presidential election, he quicklyissued anofficial denial.

“We have thesupportofthe entire board, whether itisthe externalmembers,thosefrom Vodafoneand Vodacom,orthe government representatives,” hetells The Africa Report.

The formerSafaricom executive believes thatpolitics may ultimatelybeNdegwa’s Achilles heel:“He stayswell away fromthesetopics and definitelyhasnointerest in them.” Or, justmaybe, steering clear ofpoliticsisthe best way tomaintain longevity.

STRATEGIC MOVER

Shoprite’s Africa downsizing is a winning move

TwoyearsafteritculledanumberofitsstoresacrossAfricatoconsolidate operationsathome, Shoprite(#8) feelsemboldenedbyitsdecision.With17.5% salesgrowth,itisleadingthemarketinSouthAfrica

By RAYMWAREYA inJohannesburg

Tills were ringingatShoprite last ye ar “Our supermarketsincreased sales by 17.5% because ofourcustomersspendingR12bn[$6 44m] more withuscompared tothesameperiodlast ye ar,” said ShopriteCEOPieterEngelbrecht while presentingthecompany’s interimfinancial results on 7 March. “Thisgrowthisaheadofthemarket for thepastthre e ye ars.”

In2021, Shoprite, Africa’s large st retailerandSouth Africa’s biggest privatesectoremployer, sold itssupermarketbusiness inNigeria,close d itsthree stores in Kenya,anddiscontinue d itsoperationsinMadagascar and Uganda.TheMajid AlFuttaimgroup – theEmiratesbase d mall developerandfranchise e of French retailer

Carrefourin Uganda – has re ached anagreement to obtainShopriteUganda’s leases by theendofthe year Meanwhile, Shoprite’s operationsinZambiaand Angola were leftintact Thecompany stilltrades in 10Africancountries as wellasSouthAfrica,where it earns80% of itssales and92% of itsprofits.

“In recent years, we distilled ourview thatourbiggest opportunityisin[our]homemarket, SouthAfrica. Ourconsol id at io n st rateg y isnearingcomplet io n,” EngelbrechtwroteinShoprite’s September2022annual integrate d report.

Sell-offpaysoff

DownsizinginAfrica was evidently a wisemove, says David Keith, a financialanalystand founderofSouth African venture capitalfirm, FundUp “They expanded outofSouthAfricaduringboomtime s. Now consolidation was ne eded to reassessrisk,” hetells The Africa Report. Shoprite’s financial resultsshow thatthecompany is dominatingSouth Africa’s grocerysector, withrivals suc h asPicknP ay, WoolworthandSpar lagging behind.

7.2%

CEOEngelbrecht says thecompany’s currentstrategyaims atcl ea rlyseparatingin ve stmentin Usave brands (allocate d to themid-to low-incomeconsumerdivision)andtheCheckersand Checkers60brands(servingSouthAfrica’s mid-to upper-incomeniche).

Bythe endof the 2022 financial ye ar, sales ofthe Usave seg m ent h ad ex pand ed by 7. 2% , buttres se d by whatShopriteclaims tobeitsabilityto lock key foodpricehikes at 3.9%,asoppose d to SouthAfrica’s 13 -year-highconsumerpriceindex of 7.8%in2022.In themore affluentCheckersandCheckersHyper division, Engelbrecht rejoices inwhathecalls “market-leading” sales growthof 9.1%.

Key tothissuccessfulconsolidationathome, Shoprite says, are aggressive mergersandacquisitionsofdistresse d rivalssuch as Massmart, anaccelerate d hiring spree of 4,480 workerssinceJanuary2023, abstaining fromfranchisingits 1,820core supermarkets, and a swift re opening of200stores in theaftermathofthe July2021 riots.

“Ourmerger andacquisitionactivities this yearticked seve ra l boxe s,” En ge lbrec htsays, pointin g tojoint ventures withPingo, a rising SouthAfricanon- demand fast food retailer, inDecember2021

Lookingbackat2021, retailandfinancial expertstell The Africa Report that Shoprite’s exitfromseveral

SIPHIWE SIBEKO/REUTERS

Shopritehaskeptfood pricehikesdownto3.9%

SalesgrowthoftheUsave segmentin2021-2022

marketsinAfricaoffersrichand cautionary le ssons for otherambitious SouthAfrica n re tail ers, es peciallyin Nigeria,the continent’s largest economy.

There, evenafter Covid-19 restrictions, retailmallsoccupancy rates andcustomer footprintincre ase d significantly in2022 compared withthe previous ye ar.

90%

ofNigeria’sretailtrade isinformal

Butthe formal retailsectoronly represents 10%of the retailtrade inNigeria, TerenceHermanus, supply chains expertandsenior le cturerattheCape Peninsula University of Technology, tells The Africa Report. Much tothefrustrationofthelikes ofShoprite,“theinformal retailsector remains dominantandcontinuestobethe sectorofchoice forconsumersinNigeria,”hesays

HermanuscitesthetoxicatmosphereinNigeriaasa reason forShopriteto exitthecountry. “Thebusiness climateinNigeriaisalready extremelytough,stemming fromhigh levelsofcorruption[and] ever-decre asing purchasingpower duetorising unemployment. Tough trading conditionsare exacerbated by anti-SouthAfrican sentiment,” hesays.

Onlineshoppingnotamajorthreat

FannySaruchera,asenioracademicat WitsBusiness SchoolinJohannesburg, says theriseofonlineshopping inthelikes of Uganda,theDRCandNigeriamayhave contributedtoShoprite losinggroundandencouraged thescaling downprocess,butonlytoalimited extent.

“Outside ofSouthAfrica,onlineshoppingis, in my view, notthatbigtobe a majorthreat tothe existence of low- cos t Shoprit e,” Saruchera tells The Af ric a Report. “OnlineshoppinghasbeenontheriseinSouth Africa.There could bemore to fe arfromwithinthan fromwithout.” Hermanus echoe s hersentiments He

pointsoutthat eventhoughNigeria’s lo cale-commerceplaye rslike Jumia are growing fastandcanbeconsidere d a potentialthreat toShoprite, customers whobrowseonlinestore website sdon’t necessarilyconvertduetothe low credit-card ownership “Onlineshoppingin Nigeriadoes not represent a major factorthreatening Shoprite’s successintheNigerianmarket,” hesays.

Noplacelikehome

AlthoughShoprite’s withdrawalpaid dividends, other retailerscouldle arnfromthecompany’s initialcontinentalinve stmentsandthe downsizingprocesslater on,analystssay. Shopriteknows howtorunefficient supplychains despiteenduringaR1bn($54m)annual dieselbill.But,likeseveralofitsSouthAfricanpeers, thecompany expectsthebusinessenvironmentinother countries to besimilartohome;whichisoftena false notion,says financier Keith. “They overreactto economic cycles withinthe local economy[inSouthAfrica]and feeltheneed toinvestoffshoretochase returns.”

Hermanus says thatShoprite’s latestfinancial results warrantcloser scrutiny “While theShopriteGroupas a wholehasenjoyed goodgrowth(9.3%increaseinsales) in2021, notallthebrandswithinthegroupperforme d as well,” he says

The lower- endofShoprite’s target market was hitthe hardest by the ramificationsof Covid-19, whichcause d thegrowthof its Usave brandtoslow down.

Saruchera does notrule outthepossibility ofShoprite onceagaintappingmore Africanmarketsinthefuture “Somepresence insomeofthe promisingAfricanmarketsshould beconsidered, evenjustasfranchiseoutlets toenhance its regional competitiveness.”

SOURCE: SHOPRITE

TheeffectsofCovid-19hitthe Usavebrandhardest

“MYTILINEOS -ANINTEGRATEDENERGYUTILITY”

2022 wasa milestone year forMYTILINEOS, aleadingglobalindustrialandenergy companywitha strongpresenceinall five continents.Itwas theyearoftransitiontoa newera throughitscorporatetransformationinto MY TILINEOS Energy & Metals andnowthecompanyiscovering twobusiness Sectors, theEnergy andthe Metallurgy Sector. Strategicallyplaced attheforefront of theenergy transition as aleadingandintegrated greenutility,withaninternationalpresence, MY TILINEOS is also establishingitselfasareferencepoint of greenmetallurgy.

THE“ENERGY EXPERT ”

Especiallyinthe EnergySector,MYTILINEOSis rapidlytransforminginto anintegratedenergyutility,aimingtoprovideits customerswitha wide range of solutions,derivingfromthe digitalacceleration of energy services. Simultaneously, the companysustainsitsleadingpositionintheentirespectrum of energy,fromthedevelopment, constructionandoperation of thermalunitsandRESprojectstothedesignand construction of electricityinfrastructureprojectsandsupplyandtrading of naturalgas. It is aglobalmanufacturerand contractor of solar energy and energystorageprojects, providingreliablesolutions acrosstheprojectdevelopmentspectrum,fromstandalone projects to complexhybrid systems. With strongknow-how, internationaloperationsandunparalleled responsiveness, MYTILINEOSdesignsandimplementshigh-qualityprojects foritsclients, resultingin agrowingportfolio of 9.1GWinRES projects (all technologies)andstoragein Greeceandabroad. In addition,MYTILINEOSis aleadinginternational contractorinthe construction of specialized, large-scale turnkey energyprojects, undertakingthefull range of services required forsuccessfulimplementation,whetheritis conventionalelectricitygeneration projects,energytransitionprojects (e.g.distributionnetworks, hydrogen etc),orelectricitysavingprojects,digitaltransition, smartcities& IoTplatforms

MY TILINEOS IN AFRICA

In Africa,MYTILINEOShas astrongpresenceensuringaccess to sustainable, afordable, reliable, and modern energy to all citizens,alwaysbasedonthelatest technological developments andinternationalbestpractice. Especiallyin Ghana,thecompanyhas worked for3 projects.Firstly,the Combinedthe Cycle

PowerPlantprojectin Takoradi thatincludesthe engineering, procurement, constructionand commissioning of a192MW combinedcyclepowerplantinTakoradi. Theplantwillbeimplementedwiththe capability to operateonbothnaturalgas andlightcrudeoilandwillutilizethelatestadvancedversion of GeneralElectric’s well proven9Egasturbine.Secondly,the LPG PowerPlant projectin Tema,thatincludestheengineering,procurement, construction and commissioning of a200 MWpowerproject capable of beingfueledbyLPG, NaturalGas and Diesel.Lastbutnotleast,theengineering,procurement, installation, commissioning,and operation &maintenanceof10 GeneralElectricTM2500+ mobilegasturbinepowergenerating setswith atotaloutputof256MW at ISO conditionsin Takoradi. InNigeria MYTILINEOS’ of-Grid Hybrid PowerProject of 7,5MW willelectrify four Nigerianuniversities. Thepowerplantcomplexconsistsofonepowerplantof3MW,two of 2MWandone of0.5MWoutputpower. Furthermore,in TunisiaMYTILINEOS undertook a5.5MWphybridpowerplant, close to theADAM existingoil concession of EniTunisia, consisting of solarpower togetherwith abattery energy storage systemandan Energy Management System. Theproject’stargetistoreducefuelgas consumptionup to 50% of thegeneratorthanks to Energyfrom theADAM hybridpowerplant.

Alongwithitsenergyprojectsintheareaandits continued commitmenttodeliver to allcitizens afuture withenergyautonomy, MYTILINEOSalsohas alonghistoryofcommitmentto social responsibilityandenvironmentalsustainability.Through itsdonations to the St NicholasSchool,itssupporttoenvironmentalinitiativesanditsscholarshipstodistrictcommunity childrenshelters,the companysupportsand contributes to theneeds of local communities,actingasanenabler of growth andprogress.

DEAL OF THE YEAR

Shipping giant MSC becomes king of African logistics

InDecember2022,theItaliangroupMSC hitthejackpotwithits$6.1bnacquisition ofFrenchlogisticscompanyBolloré’s networkofAfricanportsandrailways: awin-winfortwofriendlygiants

By OLIVIERCASLIN

Even things thatseemeternalmustend.The spectaculartakeover oftheAfricanactivities ofthe Bolloré Transport& Logisticsgroup (BTL) by theMediterraneanShipping Company (MSC)is a perfect illustration. Few could have imagine d justa few ye arsago thatthe Bolloré group would partwithwhathas longbeenitsmainsourceof we alth:Africanports. With16terminal concessions onthecontinent – themajorityin We stAfrica – BTL has longhad a near-monopolypositioninthe region. Thesale could be relate d tothegroup’s legalproblemsof February2021 In a Frenchcourt, billionnaire chairman Vincent Bolloré admitted guilt for corrupting public officialsin Togo, buthis troubles did not go away: thejudge ruled the offence s were tooseriousto besubject to a plea bargain.

Ce rtainly Bo lloré teste d themarket fo ra sale at theend of 202 1. Plea se d by th e offershe re ceived , he de cide d tooffloadtheportstoMSC fo r € 5.7 bn ($6.1bn)before retiringin February2022,handinghis

Aleaderinshipping,MSCnow controlsAfrica’scontainerports

businessempiretohissons.Thusconcluded thesale ofthemost importanttransport andlogisticsnetwork onthecontinent.

ThesalewasconductedbyCyrille, Vincent Bolloré’s thirdson.Ontheotherside ofthetable wasanother “sonof”:DiegoAponte,now presidentofMSCafter succe edinghis father,Gianluigi,in2014. Itseemsthe twoheirssaweye to eye, sincetheacquisition wasagreed on31March2022andcomplete don 21Decemberofthesame ye ar

Fo rano perationofthisscal e

€5.7bnandmorethan23,000employeesonthecontinent –thisis afast turnaround.Allthemoresowhenit concernsanarea asstrategicasport andmaritimeservice s.

Theninemonths le adinguptothe completion essentiallyconsiste dof convincingthepublicauthorities of the 47 countries concerne dthatthe changeofownership wouldhaveno impactonthesmoothrunningoftheir terminalsortheir railline s. “Wewill follow in Bolloré’sfootsteps,” Diego Aponteannounce don30May,asifto re assureeveryoneinvolved …

Aleadingrole

…startingperhapswithhimself.For whilet he wo rld’slea din gs hippin g companyalreadymanaged theterminalsofitsAfricantranshipmenthubs in LoméandSanPedro viaitsport subsidiary TerminalInvestmentLimited (TiL),itwillnowhavetodiversifyits skillsbas einp orts thata re mainl y orientedtowardstheirhinterland,from AbidjantoDouala,from Conakryto Pointe-Noire.

re mainwithinthesameentitybutwith ad ifferent name,whichwillbeannounce dshortly.Forthenext twoyears,Philippe Labonne,theCEOofBAL, whose role wascentralduringthetakeovernegotiationswill continuetodirecttheentity.

Thepurchase represents astrategicmove forMSC which,likeitsmaincompetitors, MaerskandCMA CGM, istaking advantageofhugeprofitsamasse dsincethe Covid-19pandemictoembarkon a strategyof verticalintegrationglobally, acrossland,se aand air.

MSCassetsinAfrica

16 containerterminals

5,000 kilometresofrailways

Inall,the Ge ne va -base dS wis sItalian operatornowowns16container terminals,7terminals forRo-Ro traffic, and 5,000kilometres of railwaysalong the WestAfricancoast,spreadbetween Cameroon, Côted’IvoireandBurkina Faso,nottomentionthenetworkof dryportsand warehouse sscattered acrossthecontinent. Thismultimodal infrastructure, whichisalmostuniqueonthecontinent, shouldrapidlyenableMSCandits varioussubsidiaries toplayaleading role intheAfrican transportsector.

7 terminalsforRo-Rotraffic

Thisstrategy aimstoimprove the connectionsbetweenAfricanmarkets andthe restofthe world,andpromises toincreasehandlingcapacityand containerise dvolumes

Coulditalsobring adropinport tariffs? Thatiscertainlywhatcustomersarehoping for. ‘The average costtotransport acontainerin We st and Ce ntralAfr ic ai s US $2.43per kilometre, whichis 1.5and2. 2time s thefreight ratesappliedinSouthAfrica and theUnitedStates,’ reports Tralac, anindustrythinktank.

Optimistsmay alsohopefor aboost forAfrica’s Continental Free Trade Area.The zone,whichcameinto force in early2021,hasnot yethadmuchimpactontrade volumesbetweenAfrican countries,forwhomnon-tariffbarriers likeexpensivelogisticconnectionsare justasseriousas tariffwalls.

WhatnextforBTL?

As forBolloré, apagehasbeenturned, evenifthegroup remainsinAfricavia itssubsidiaryCanal+ andthevarious developmentsthatitenvisages inthe communicationandentertainment sectors.Thedays ofitsinvolvement intransportand logistics,however, nowseemtobenumbered.Assoonas thesaleoftheAfricanassets wasconfirmed,therumourof asaleofBTL’s activities aroundthe worldbeganto surface.Source ssay thatCMA CGM, controlled by another famous logistics dynasty, the Franco-Lebanese Saadéfamily, hasalready expresse daninterest.

MSC’smanagementhasalready de cide dthatthe se differentactivities, groupedtogethersince2008under the brandname BolloréAfrica Logistics(BAL),will

Thepathisnowcle ar forCyrilleB olloré toinve stin hisnewpassion:agricultureindevelopingmarkets.It wouldbeareturn toits roots foragroupthatbeganits Africanhistory by managingplantations

ALL THAT GLITTERS

West African miners eye the putschists

InBurkinaFaso,GuineaandMali,theregion’ssuccessionofcoupshasnot alwaysbeenbadnewsforminingcompanies

By OLIVIERCASLIN

For WestAfricanminingCEOs, the big questionisBurkina Faso Two re cent putsches, still fresh in everyone’s mind, have donenothingto resolve thesharp deteriorationinthesecurityclimate, orthe lossofcontrol over more than40%oftheterritory toarmed terroristgroups.

Theinjunction forcing French troopstomove out earlierthis yearisnomore reassuring. Onemining investorwishingto remainanonymous says:“The government in Ouagadougouisnot stupid.Itmust have thoughtofanalternative solution.” Perhaps, like Malinext door, by invitinginmercenaries from theRussian paramilitarygroup Wagner.

In early February, Russian foreign minister Sergey Lavrov promised thathis country would “provide support”. For thetimebeing, attacks onBurkinabe forces are increasing. At least 51 soldiers were killed on17 February in thecountry’s north.Due tothelackofsecurity, three gold mines are still at a standstill: Taparko, owned by Russia’s Nordgold, Youga, owned by Avesoro Resources, and Karma, owned by Nere Mining.

Givemethegold!

A new developmenthas further undermined the industry’s confidence: CaptainIbrahim Traoré, who has beenthecountry’s interim leadersincethe 30September coup, made two surprise gold requisitionson15 Februaryfrom two ofthe country’s majorplayers:EndeavourMining (Manamine)and Nordgold (Bissa mine).Thebarsofunrefined gold have an estimated worthof$25m.

Nationalproduction hascollapsed from67tnin2021to9tnin 2022.Thesector represents 16%of GDPand30%oftax revenues for

theBurkinabe economy. A new code to regulatethe sector was recentlyannounced, worrying miners, whosee init a furthersourceofunpredictability.

In Guinea,theindustry was initially reassured by the “pro -business” declarationsofcoup leader ColonelMamadyDoumbouya, whocametopower inSeptember2021. Butthemilitaryjunta known asthe Comité NationalduRassemblement pourle Développement (CNRD)thenquicklytargeted the Société Minière deBoké (SMB) –a company jointly owne d by Fadi Wazni’s Unite d MiningSupply, Singapore’s Winning InternationalGroup, and theChinaHongqiaoGroup Thisisanything but a coincidence, asSMBhasbecomethecountry ’s largestbauxiteproducer, far aheadofthehistoric Compagniedes Bauxites de Guinée (CBG).

Infrastructurefirst

As for the world-classSimandouironore projectin Guinea,costingan estimated $15bn,theoustingof PresidentAlpha Condé has got things moving faster. On10March2022,thestatesuspended activities ontheproject, dissatisfied withits progress,and then managed tobringthestakeholderstogether tosign a frameworkagreement

30% oftaxrevenuesinBurkina

The followingquarter, ittook a new and unprecedented step withthecreation of the Compagnie du Transguinéen (CTG), a company for thejoint managementof the rail and port infrastructures, inwhichitacquired a free 15% stake Mali’s miningscenecontinues to attractChineseinvestors despite thepoliticalturmoil.Thelithium sectorisparticularlydynamic, withtwo projects being developed south ofBamako: Goulamina, led by Australia’s Leo Lithium,and Bougouni by Kodal Minerals

Fasocomefrommining

UK MIGR AT ION DEALSN EED AR ET HI NK

ne ed immigrationinorderto remain economicallyproductive.

The government’s controversial Rwanda policy,w hichit de scribe so n its we bsite as a‘worldfirstpartnership totackle [the] globalmigrationcrisis’,hasalsocomeunder scrutiny.Critics describethepolicy of flying asylumseekerstoKigali for‘processing’and apotential ‘new andprosperouslife’ inthe Africancountryasan exerciseinsmokeand mirrors.Rwandaisonlyabletotakein1,000 asylumseekersduringthetrialperiod, at a costofover£170m($208m).Thistranslates to astaggering£170,000cost perperson.

Furthermo re ,t hepropose dI llegal MigrationBilllists57countries fora similar deal.Only 19% oftheseare Africancountries, andonlythree arewilling toaccept women. SomeAfricannationshave already rejecte d the ide a,suchasGhana.

TheUK’spropose dIllegalMigrationBill, introduce dbyH omeSecretarySuella Braverman,hasdrawncriticismforitsperceive dnarrow focuson domesticsolutions to acomplex globalproblem.

Aimedasa deterrentto ‘smallboatcrossings’,thebillmakesprovisionto detainand remove fromtheUKanyonewhoarrives by illegalmeans.Withthe UN estimatingthat morethan100millionpeopleare forcibly displacedworldwide,criticsarguethatthe government’scriminalisation andstigmatisation ofso -called ‘illegal’migrantsisbothmorally reprehensibleand economicallyshort-sighted

Numerousstudies have shownthatimmigrationhas anetpositiveeffectoneconomies, particularlyintermsoftax revenue s.

Researchconducted by ChristianDustmann and TommasoFrattini ofUniversity College London foundthatimmigrantswhoarrived intheUKsince2000have madeconsistently positivefiscalcontributions,regardlessof theircountryoforigin.

As such,manyarguethat boththeUKand Europe

As sumingthat ea chcountry re quires a similarfinancial de al to t hat ofRwa nda, thecostcouldamounttonearly£9.79bnon partnershipsalone,afigurethatcouldbe betterspentinve stinginclearerand fairer policies that allowfor secure, safe and legal immigration intothe country

Giventhe re ality ofthebuildingglobalmigrationcrisis,criticsarguethatitis hightime fortheUK governmenttoadopt am oreh umane and ec onomicallysound app ro ac htoi mmigrat io n. Criminalising andstigmatisingvulnerablepopulationsis not aviablesolution.

Instead,the governmentshouldinvestin policies that re cognisethe economicand moralbenefitsofimmigration.The va rie dethnicbackgroundofthis government suggeststhatthesesortsofargumentsmay alreadybestaringtheminthe mirror

Anincrea sing number of mi grant st o Europe hailfromAfrica,whetherthrough displacementornot.Africanshave barely contribute dtot heclimat ec risispushing themout oftheirhomes;forcing themonto planes addsinsulttoinjury.

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