Tar71 mauritius by The Africa Report

MiNiNg Dealing in the downturn

Nigeria What can Buhari do for Africa?

Mauritius Putting out the bank fire

w w w.t hea f r ic a r ep o r t .c om

N ° 71 • j u N e 2 015

the africa report

South Africa

Maimane comes out

monthly • n° 71 • june 2015

fighting

The Democratic Alliance’s first black leader takes on ANC corruption

sOutHerN aFriCa editiON

Algeria 550 DA • Angola 600 Kwanza • Austria 4.90 € • Belgium 4.90 € • Canada 6.95 CAN$ • Denmark 60 DK • Ethiopia 75 Birr • France 4.90 € Germany 4.90 € • Ghana 7 GH¢ • Italy 4.90 € • Kenya 410 shillings • Liberia $LD 300 • Morocco 50 DH • Netherlands 4.90 € • Nigeria 600 naira Norway 60 NK • Portugal 4.90 € • Sierra Leone LE 12,000 • South Africa 35 rand (tax incl.) • Spain 4.90 € • Switzerland 9.90 FS • Tanzania 9,000 shillings Tunisia 8 DT • Uganda 9,000 shillings • UK £ 4.50 • United States US$ 6.95 • Zambia 30 ZMW • Zimbabwe US$ 4 • CFA Countries 3,500 FCFA

GroUPE jEUNE AFrIqUE

Serenia [se-ren-ya] n. Latin; Serenus - meaning calmness & tranquility. Make Dubai’s Most Exclusive Beachfront Residences your home.

Serenia offers you more than just an address. It offers you a lifestyle suited to the world's most discerning. A collection of beachfront penthouses and garden apartments filled with elegant luxury. Nestled in the iconic crescent of The Palm Jumeirah, Dubai. Come, discover Serenity. It waits for you at www.sereniathepalm.com

Hazel Wong Design | Panoramic 360º Views | Personalised Concierge Service Luxury Penthouse Collection | The Palm Jumeirah Lifestyle

800 PALMA +971 4 452 2202 l palmaholding.com Developer Name and No. – Palma Homes Real Estate Development L.L.C. (1068) l Project Name & No. – Serenia Residences, The Palm (1641) Escrow Bank and Account – Emirates NBD (020 48558181 04) l Expected Completion Date – 31st December, 2017 l Service Charge – AED 20 Per Sq. Ft.

NIGERIA What can Buhari do for Africa?

MINING Dealing in the downturn

SOUTH AFRICA The DA’s Maimane comes out fighting

w w w.the af ric arepor t.com

N ° 71 • JU NE 2015

KENYA Monica Juma, Kenyatta’s brain

NIGERIA What can Buhari do for Africa?

UGANDA Patrick Bitature takes on the region

w w w.the af ric arepor t.com

MINING Dealing in the downturn

N ° 71 • JU NE 2015

NIGERIA What can Buhari do for Africa?

MAURITIUS Putting out the bank fire

w w w.the af ric arepor t.com

N ° 71 • JU NE 2015

MINING Dealing in the downturn

NANA AKUFO-ADDO “Ghana is bankrupt”

w w w.the af ric arepor t.com

contents

SOUTH AFRICA The DA’s Maimane comes out fighting

N ° 71 • JU NE 2015

THE AFRICA REPORT

Nigeria EXCLUSIVE INTERVIEW

Nana Akufo-Addo

“Ghana is bankrupt”

South Africa

EXCLUSIVE INTERVIEW

Maimane comes out

“Africa must stop subsidising the West!” The Chairman of Centum on how Kenya needs to fight for its farmers

GROUPE JEUNE AFRIQUE

MONTHLY • N° 71 • JUNE 2015

Chris Kirubi

The leader of the opposition says the government has brought the country to its knees, and offers his own economic remedies

fighting

The Democratic Alliance’s first black leader takes on ANC corruption GROUPE JEUNE AFRIQUE

WHAT CAN BUHARI DO FOR AFRICA?

The new poster boy for democracy can inspire and influence beyond the border – if he can overcome domestic troubles

The AfricA reporT # 71 - June 2015

GROUPE JEUNE AFRIQUE

GHANA EDITION

EASTERN AFRICA

SOUTHERN AFRICA EDITION

INTERNATIONAL EDITION

Business

4 Editorial Springtime for soldiers

60 mining Dealing in the downturn The gold price plunge is putting the squeeze on miners’ bottom lines, forcing them to sell their non-essential assets

6 lEttErs

cover crediTs: inTernATionAl: BAyo omoBoriowo/Ap/sipA - souTh AfricA: JAco mArAis/foTo24/GAllo imAGes/GeTTy imAGes - wesT AfricA: frAncis KoKoroKo for TAr - eAsT AfricA:sieGfried modolA for TAr

8 thE QuEstion

Briefing 10 signposts

12 opinion Pumla Dineo Gqola and Lindiwe Mthembu-Salter 16 intErnational 18 pEoplE

68 lEadErs Chris Kirubi, chairman of Centum Investment 70 lEadErs Patrick Bitature, founder and chairman of Simba Group

20 calEndar

frontLine 22 north africa A dream deferred As the old cronies re-emerge, is burying the hatchet the way to get economies moving?

poLitics 28 ElEctions 2015 What can Buhari do for Nigeria? Soldiers, young people and bankers outline what they want from the new government

72 financE Ecobank benefits from its pan-African platform 73 hannibal

powEr dossiEr 74 Dakar out of the dark The electricity blackouts that plagued Senegal in 2011 are long gone but customers are wary of Senelec’s power strategy 78 ghana Slow progress on privatisation 80 rEnEwablEs Green today, cheap tomorrow

32 intErviEw Nana Akufo-Addo, Ghanaian presidential candidate

Art & Life

36 intErviEw Mmusi Maimane, leader of the Democratic Alliance

38 sEnEgal Karim’s comeback 39 morocco Abortion outrage

82 nollywood A house divided and standing Nigerian directors are ditching their trademark genre in favour of a grittier filmmaking style 86 briEfs Malian musician Ben Zabo and community radio in Tanzania

39 rwanda-tanzania Kagame vs. Kikwete

88 travEl Cape Town

40 anansi

country focus 45 mauritius The great clean-up The new cabinet flexes its muscles against corruption and problems in the banking sector the africa report

64 aviation In Somaliland, the hopeful look skyward

•

n ° 71

•

j u n e 2 015

90 day in thE lifE Mohamed Hussein, Somali refugee and writer

This issue carries an insert between pages 34-35 for selected countries

editorial

The AfricA reporT A Groupe Jeune Afrique publication

By Patrick Smith

57‑Bis, rue d’Auteuil – 75016 PAris – FrAnce tel: (33) 1 44 30 19 60 – FAx: (33) 1 44 30 19 30 www.theafricareport.com

Springtime for soldiers

he armed forces are back at the centre of politics. Be they serving professionals, retired generals, jihadists trained in the Sahel or crew-cut wearing South African mercenaries, the men – and a smattering of women – in khaki are calling the shots again. In Nigeria, General (retired) Muhammadu Buhari captured the imagination in the country’s most credible elections for 50 years. And six months ago in Burkina Faso, the military took its cue from mass protests against long-standing President Blaise Compaoré’s bid to change the constitution and get another term; he was driven into exile within a week. Activists’ hopes were raised again in mid-May in Burundi when a group of generals around former intelligence chief Godefroid Niyombare tried to stop President Pierre Nkurunziza’s campaign to secure a third term. That time, Nkurunziza’s presidential guard defeated the putsch. But events in Ouagadougou and Bujumbura raise the question of a ‘good coup’. That was the argument of General Abdel Fattah alSisi in Egypt after he overthrew the Muslim Brotherhood government in 2013. The military campaign by Libya’s General Khalifa Haftar against a band of Tripoli-based Islamists who also claim an electoral mandate follows the same lines. Both Sisi and Haftar get tacit backing from the West but a nuanced ticking-off from the African Union. Soldiers will be getting stuck into more of such battles in the next few years. After two decades of high-octane growth in Africa, the World Bank has announced that this century’s first commodity supercycle has ended as China cuts copper, iron and gold im-

Cha i r m a n a nd f o und e r Béchir Ben yAhMed P ub l i s he r dAnielle Ben yAhMed publisher@theafricareport.com e x e Cut i ve P ub l i s he r JérôMe MillAn

ports. It also cites a report from the Armed Conflict Location and Event Data Project tracking riots, violence against civilians and military battles since 2000. Although the number of fatalities from such clashes dipped to about 1,000 per year in 2006 when economic growth levels were hitting new peaks, it was more than 12,000 by the beginning of this year. That number does not include those chased from their homes who might die of starvation or disease. The United Nations reckons that there are more than 12 million people displaced by conflict in Africa.This is The military a challenge as much to Africa’s armies as to its remains politicians. Though the the strongest military’s record is at institution, best uneven, in many countries it remains with a range the strongest and most of ethnicities representative national institution, including a and classes range of ethnicities and in its ranks classes in its ranks. Part of the aura that surrounds Nigeria’s Buhari is that he is regarded as an ascetic soldier who fought in Nigeria’s civil war and then made a genuine attempt to fight corruption as a military leader in the 1980s. Comments such as ‘this country needs some military discipline’ emanate from some of the unlikeliest quarters in Abuja. Politics holds the answers to the governance crises that plague Africa. But solutions must include the capacity to reform Africa’s militaries so they can defend constitutionalism and democratic rights. The image of a general standing up for democracy need no longer be an optical illusion. ●

m a r K e t i nG & d e ve l o P m e nt AlisOn KinGsley‑hAll e d i t o r i n Chi e f PAtricK sMith m a na G i nG e d i t o r nichOlAs nOrBrOOK editorial@theafricareport.com a s s i s ta nt e d i t o r chArlie hAMiltOn a s s o Ci at e e d i t o r MArshAll VAn VAlen e d i t o r i a l a s s i s ta nt OheneBA AMA nti Osei r e G i o na l e d i t o r s PArselelO KAntAi (eAst AFricA) crystAl OrdersOn (sOuthern AFricA) tOlu OGunlesi (niGeriA) Billie AdwOA McternAn (GhAnA) s ub - e d i t o r s AlisOn culliFOrd erin cOnrOy P r o o f r e a d i nG KAthleen GrAy a rt d i r e Ct o r MArc trensOn desiGn VAlérie OliVier christOPhe chAuVin AnAÏs QuérOn P r o d uCt i o n PhiliPPe MArtin christiAn KAsOnGO r e s e a r Ch sylVie FOurnier P ho t o G r a P hy clAire VAtteBled o nl i ne Prince OFOri‑AttA sales sAndrA drOuet sOlène deFrAncQ tel: (33) 1 44 30 18 07 – Fax: (33) 1 45 20 09 67 sales@theafricareport.com cOntAct FOr suBscriPtiOn: webscribe ltd unit 8 the Old silk Mill Brook street, tring hertfordshire hP23 5eF united Kingdom tel: + 44 (0) 1442 820580 Fax: + 44 (0) 1442 827912 email: subs@webscribe.co.uk 1 year subscription (10 issues): All destinations: €39 ‑ $60 ‑ £35 tO Order Online: www.theafricareportstore.com d i f Co m internAtiOnAl AdVertisinG And cOMMunicAtiOn AGency 57‑Bis, rue d’Auteuil 75016 PAris ‑ FrAnce tel: (33) 1 44 30 19‑60 – Fax: (33) 1 44 30 18 34 advertising@theafricareport.com a d ve rt i s i nG d i r e Ct o r nAthAlie Guillery with JeAnny chABOn r e G i o na l m a na G e r s FAdOuA yAQOBi liliA BenAceur elOdie BOussOnniere us r e P r e s e ntati ve AzizA AlBOu a.albou@groupeja.com

editorial@theafricareport.com the africa report

•

n ° 71

•

j u n e 2 015

Printer: sieP 77 ‑ FrAnce n° de cOMMissiOn PAritAire : 0715 i 86885 dépôt légal à parution / issn 1950‑4810 the AFricA rePOrt is published by GrOuPe Jeune AFriQue

Africans Building KappaCity

Ka Petrol Ka Power

Indigenous Oil & Gas Companies Production Exploration Associated Services & Industries

Hydro Power Generation Gas Fired Power Generation Associated Services & Industries

Kapp Oil & Gas Pipelines Water Network Power Transmission & Telecom Lines

www.kappafrik.com

Experience the Progress.

www.liebherr.com info.lex@liebherr.com www.facebook.com/LiebherrConstruction

The Group

briefing

IntERnAtIonAl 1

2 1

5 4

$5bn

In late April, the New York State Common Retirement Fund announced plans to invest up to 3% of its pension assets in Africa by 2020 as part of a strategy to increase returns. The pension fund manages around $180bn.

SAUDI ARABIA

Royal family sheikh up

Last man standing

British election pollsters were left scratching their heads after Britain’s Conservative Party sprinted to victory in the general election on 7 May by a narrow but clear margin. Until the last minute widely-published polls put Conservatives and Labour neck and neck and predicted a hung parliament. The election was followed by a slew of resignations as Labour and Liberal Democrat leaders Ed Miliband and Nick Clegg fell on their swords after embarrassing losses in parliament. Nigel Farage, leader of the right-wing UKIP party, failed to win a seat though his party did not accept his resignation. Nicola Sturgeon’s Scottish National Party was the election’s big winner, turning its modest six seats into 56 in the 650-seat parliament, effectively making Scotland a one-party state. Cameron’s joy at the Conservative victory is likely to be tempered by the problem of how to continue Britain’s fragile economic recovery while avoiding being held to ransom by an anti-European right wing ahead of a referendum on EU membership due before the end of 2017. ● 3

GREECE

Robbing Petros to pay Pavlos Fraught talks between Greece and a troika of international lenders rumbled on as Athens only narrowly avoided default on its International Monetary Fund (IMF) repayments in early May through some nifty financial footwork. Greece transferred cash out of one IMF holding account and into an IMF deposit account. This move, combined with borrowing cash from the government of the city of Thessalonica, allowed it to repay its $750m debt 24 hours ahead of time. It only buys the government a few weeks until more payments are due. Although talks are making progress on releasing previously agreed bailout funds, both sides remain divided on key issues. ●

Saudi king Salman bin Abdulaziz ushered in a new era of political transformation in the kingdom by appointing a new heir to the throne from the next generation of the ruling family. Salman ended the 60-year tradition of naming an heir from the many children of Saudi Arabia’s founder, Abdulaziz Ibn Saud, his father. In late April, he named his nephew Mohammad bin Naif, 55, as crown prince – the next in line to the throne. The move aims to combat the growing generational divide between rulers and ruled. About 70% of Saudi Arabians are under 30, but the country’s recent leaders have been in their 70s and 80s. ●

SyRIA

“Psychological defeat is the final defeat and we are not worried ” Syria’s President Bashar al-Assad speaking in early May ahead of a UN push to restart peace talks in Geneva between the government and opposition

ABR

GeoFF PuGh/ReX ShuTTeRS/SIPA

the africa report

•

n ° 71

•

j u n e 2 015

Your HR Business Partner for Africa Expatriate Recruitment Recruitment of African Profiles & Local Content policies support HR Consulting & Staff assessment Executive Search Manpower supply Paris (France) Lagos (Nigeria) Accra (Ghana) Luanda (Angola) Abidjan (Ivory coast) Casablanca (Morocco)

PEOPLE

FU U TU U RE OFAFRICA

AAR RE TTHE HE

+33 1 71 19 47 32 contact@adexen.com www.adexen.com

Oil & Gas

Finance

Energy

Industry

Martime

Telecom

Construction Agro Business

Wildlife Justice Commission (WJC) The Hague, The Netherlands

The newly established Wildlife Justice Commission (WJC) is an innovative organisation, set up to expose and disrupt criminal networks that are involved in transnational, organised wildlife crime. Our mission is to impede, expose and disrupt! We welcome applications from Senior International Executives for the following roles:

Director

Chief Of Investigations

As an engaging and energetic leader the Director will develop the WJC to become a well-established organisation. He/she will work with stakeholders to develop a coherent strategy and build relationships with international partners on all levels. The Director will be responsible for the international stage of a completely new justice mechanism and must be an innovator at heart, a true entrepreneur, as well as a clever diplomat. The Director is passionate about justice and wildlife.

The Chief Of Investigations plans, organises and implements international investigations. He/she is an innovative thinker driven to find smarter and more effective ways to achieve desired results and apply fairness and an unbiased search for truth in all projects. The CI will be able to negotiate on all levels of leadership and has great people and communication skills, able to deal with the media when needed.

Looking to Make a Difference in the World by Activating Justice on a National and International Level. We welcome your application in the form of a CV and Cover Letter. Please e-mail your details to careers@wildlifejusticecommission.org or view the full job profile on www.wildlifejusticecommission.org. For confidential questions about this position, please contact our consultant, Nicole Le Maire on 0044(0)2032905119. The closing date for applications is Friday 5 June 2015. WJC is an Equal Opportunity Employer with a strong commitment to diversifying its workforce.

briefing MAWAZINE FESTIVAL 29 May – 6 June RABAT | MOROCCO Rabat serves up a couscous royal of music, with Usher, Sean Paul, Akon, Placebo, Sting and Pharrell Williams among those joining Moroccan musical stars on eight live stages. festivalmawazine.ma

CALENDAR

CONNECTING WEST AFRICA 9-10 June

AFRICA’S BIG SEVEN & SAITEX 21-23 June

DAKAR | SENEGAL Networking opportunities galore as global and regional players tackle delivering affordable broadband and making data more profitable. westafrica.comworldseries.com

JOHANNESBURG | SOUTH AFRICA The continent’s largest food and beverage industry trade expo runs alongside its counterpart for non-food retail products. exhibitionsafrica.com

AFRICAN YOUTH IN PHILANTHROPY CONFERENCE 29-30 June

MINING ON TOP: AFRICA-LONDON SUMMIT 24-26 June

ARUSHA | TANZANIA 100 young Africans get to put forward their views ahead of the African Grantmakers Network AGM. aypconference.org

INTERNATIONAL DAY OF THE AFRICAN CHILD 16 June GLOBAL africanchildinfo.net

IGD FRONTIER 100 FORUM 31 May – 2 June CAPE TOWN | SOUTH AFRICA Meeting of senior executives committed to reducing poverty through business growth and investment. igdleaders.org

LONDON | UK miningontopafrica.com

AVIATION FESTIVAL AFRICA 30 June – 1 July

ZAMBIA INTERNATIONAL MINING & ENERGY CONFERENCE 18-19 June

BURUNDI PRESIDENTIAL ELECTIONS 26 June

LUSAKA | ZAMBIA zimeczambia.com

Following the coup attempt, elections may not be held.

Big and small players meet to discuss innovation in the sky. JOHANNESBURG | SOUTH AFRICA terrapinn.com

NOLLYWOOD WEEK PARIS 4-7 June PARIS | FRANCE nollywoodweek.com ECONOMIC FORUM/JAKOB POLACSEK

FIFA WOMEN’S WORLD CUP 2015 6 June – 5 July CANADA The indomitable Lionesses of Cameroon and Côte d’Ivoire’s Elephants will join the Super Falcons of Nigeria to form the trio vying to make Africa proud at the prestigious international competition. fifa.com/womensworldcup nth

AFRICA ENERGY FORUM 8-11 June DUBAI | UAE africa-energy-forum.com

WORLD ECONOMIC FORUM ON AFRICA 3-5 June CAPE TOWN | SOUTH AFRICA After Abuja last year, the forum returns to Cape town to mark the silver jubilee celebration of the Africa-focused event. Under the theme ‘then and now: Reimagining Africa’s Future’, co-chairs for this year’s forum include Antony Jenkins, group chief executive of Barclays UK, Phumzile Mlambo-ngcuka, undersecretary-general of Un Women in new York and South Africa-based African Rainbow Minerals founder Patrice Motsepe. the 3-day event will be packed with community conversations on entrepreneurship and leadership, and sessions on designing smarter cities, learning from the Ebola crisis and harnessing Africa’s population resource, among others. weforum.org the africa report

•

n ° 71

•

j u n e 2 015

Côte d’Ivoire

2020

MAJOR CHALLENGES TO BE MET

Abidjan, modern city of more than 4 million people.

n Saturday, 25 April, the majority coalition nominated the president of Côte d’Ivoire for a second term in office. “I am announcing the nomination of the only candidate of the Rassemblement des Houphouëtistes pour la démocratie et

la paix (RHDP) for president,” his main ally, Henri Konan Bédié, said during a ceremony

at Abidjan’s biggest stadium. In a white hat and shirt, Alassane Ouattara gave his first campaign speech before tens of thousands of supporters six months prior to election day.

ADVERTORIAL - June 2015 - I

Côte d’Ivoire

In unity there is strength “Our party is Côte d’Ivoire’s only chance for long-term stability and development,” Mr. Ouattara told the convention after thanking the ﬁve parties making up his coalition.1 Addressing his supporters in Abidjan’s biggest stadium, he spoke, based on the governing party’s

President Alassane Ouattara arrives at the Félix Houphouët Boigny stadium in Abidjan on April 25, 2015

record, about his vision of “a hard-working Côte d’Ivoire that believes in its bright future” while acknowledging that “major challenges remain, especially in the social sphere, the only guarantor

of lasting peace and national unity.”

Booming public and private investment fuel vibrant economic growth — approximately 9% a year between 2012 and 2014. The country is back to work The word “record” came up several times during the nomination ceremony: Côte d’Ivoire has made noteworthy strides in the past four years. Booming public and private investment fuel vibrant economic growth — approximately 9% a year between 2012 and 2014. Infrastructure tells a big part of the story. Since 2012, Côte d’Ivoire has built roads, motorways and bridges to bring people closer together and increase economic exchanges. At least 50,000 classrooms and 1,000 health centres have been constructed or refurbished nationwide. Progress has also been made in the areas of water and electricity: new power stations and lines have brought light to Ivoirians and enabled Côte d’Ivoire to export electricity to neighbouring countries.

Sococe shopping center in Abidjan.

Five parties make up the Rassemblement des Houphouëtistes pour la démocratie et la paix (RHDP), which was founded in May 2005: Mr. Bédié’s Parti démocratique de Côte d’Ivoire (PDCI-RCA), the Rassemblement des républicains (RDR Ouattara’s party), the Union pour la démocratie et la paix (UDPCI), the Union pour la Côte d’Ivoire (UPCI) and the Mouvement des forces d’avenir (MFA).

ADVERTORIAL - June 2015 - II

The containers terminal at Abidjan’s Port.

2020: major challenges to be met © KAMBOU SIA / JA

Boosting agricultural production Agriculture will always be a priority for Mr. Ouattara, who thanked his “brother farmers” for making Côte d’Ivoire “a champion in many fields”. Two-thirds of the country’s households earn their living from agriculture, which accounts for 70% of export revenues. A total of $4 billion have been invested in the sector since 2012. Côte d’Ivoire

The unit against high technology crime.

has strengthened its position as the world’s leading cocoa producer with an annual output of 1.5 million tonnes today (40% of the world total). It is

“LASTING PEACE AND NATIONAL UNITY”

the world’s second-leading grower of cashew nuts (450,000t/year) and Africa’s top rubber producer (305,450t/year). The output of these cash crops rose by 14% and of subsistence crops by 28%

Created on 24 March, the National

between 2012 and 2014. The agricultural sector has

Commission for Reconciliation and

created over 650,000 jobs. © RENAUD VANDERMEEREN / LES ÉDITIONS DU JAGUAR

the Compensation of Victims (Conariv) is a new step towards narrowing the deep social divide that opened up with the socio-political crises of the 2000s. Peace, security and the rule of law have been restored in the past four years. The State has redeployed its administration and reasserted its authority throughout the country, which had been cut in half. Conariv continues the work of the Truth and Reconciliation Commission, which had been created in the events’ aftermath, but in a more peaceful

New food crops in the Bouaké area.

political context. It has set speciﬁc goals: caring for victims and paying out the reparations they are due. To achieve

Businessmen are conﬁdent again The country’s entire economy is back on track. The international

those aims, this year Conariv has a 10-billion-FCFA ($20 million) budget. It has already gathered information from

community broadly backs the National Development Plan (PND),

all the stakeholders and gives itself three

which has invested $20 billion in the economy since 2012. The

months to compile a consolidated list of

investment opportunities it oﬀers, and the president’s and his min-

victims to compensate.

isters’ many trips abroad, have burnished the country’s international image. In a sign of restored conﬁdence, businessmen are ﬂocking back to Côte d’Ivoire. Private investment now accounts for 62% of the total. Several public-private projects tapping a total of nearly $15 billion are under way in energy, transport, agro-industry, ICT,

Over 650,000 jobs created in the agricultural sector in four years.

the environment, urban planning, health and education. ADVERTORIAL - June 2015 - III

2020: major challenges to be met © NABIL ZORKOT / JA

Côte d’Ivoire

MEETING THE CHALLENGES OF HEALTH AND EDUCATION Côte d’Ivoire has nearly 23 million people, 40% of them under 14 years old. These ﬁgures alone sum up the country’s health and education challenges. Much has been accomplished since 2012. Côte d’Ivoire’s 85 hospitals, as well as 600 local health centres, have been refurbished and re-equipped, and an additional 450 are under

Testing laboratory at Cipharm’s pharmaceutical production facility.

construction. The rehabilitation of 30,000 primary school classrooms, and the building of 25,000 more, will

What remains to be done Many challenges still lie ahead. The country is at peace, but “reconciliation is still the priority” said candidate Ouattara, recalling the recent creation of the National

help to reach the goal of universal enrolment in 2015-2016. The building and equipping of 40 middle schools and four regional universities, as well as the rehabilitation of the © NABIL ZORKOT / JA

Commission for Reconciliation and the Compensation of Victims (CONARIV, see box). He is aware that the man in the street has not seen the fruits of growth trickle down to him. Increasing prices paid to farmers by an average of 40%, doubling the minimum wage and raising over half the civil servants’ salaries have not beneﬁtted everybody. That is why social issues are at the heart of Mr. Ouattara’s second campaign programme. Doing more for youth, providing education and better-quality teaching for all universal health care, are the commitments he made on 25 April “to strengthen what has been achieved, improve everyday life and increase buying power.”

The University of Abidjan. country’s four main universities and two graduate schools, oﬀer a rising number of students a chance to contribute to their country’s economic development.

Providing education for all and facilitating access to basic social services, including universal health care.

The earliest results are encouraging, but it will take much more work and energy to give Côte d’Ivoire the social infrastructure it needs to satisfy youth and fulﬁl their desires for economic development. “We will give our children quality education, for they are our future,” candidate Ouattara said on 25 April.

ADVERTORIAL - June 2015 - IV

and facilitating access to basic social services, including

Nasseem ackBaraLLy/TraNsTerra media

country focus Mauritius

A new breed of ambitious, globally-minded Mauritians will join the job market

The great clean-up The new government elected in December enjoyed a short honeymoon. It is now engaged in dealing with corruption cases, problems in the banking sector and growth levels that are too low to make Mauritius a high-income country by 2020

By Crystal Orderson in Port Louis

the africa report

•

n ° 71

•

j u n e 2 015

surprise victory for the opposition in the snap December 2014 elections ushered in the Alliance Lepep. It also contributed to the downfall of Labour Party leader and prime minister Navin Ramgoolam. Voters punished his proposals to boost presidential powers, and they then watched gobsmacked as the police arrested him for corruption. In early February, television news programmes showed police officers carrying bags full of money totalling close to R220m ($6.3m) following a raid on his

country focus | Mauritius

PORT LOUIS

Indian Ocean

MAURITIUS

Indian Ocean

10 km

mauritius in numbers 1.26 million1

SourceS: World Bank 2013 & 20141, african econoMic outlook 20142, un conference on trade and developMent 2014 report3, MauritiuS MiniStry of finance & econoMic developMent 20144

PoPulation urban PoPulation (% of total)

40%1

life exPectancy at birth

73.62

infant mortality (per 1,000 births)

11.32

aid flows

$178m2

fdi, inflows (current US$)

$258.6m3

GdP (current US$)

$11.93bn1

GdP Growth (annual %)

3.2%1

unemPloyment rate

7.8%4

inflation, consumer Prices (annual %) 3.2%4

eXPOrts Exports by country of destination

Belgium

Source: MauritiuS MiniStry of finance and econoMic developMent, 2014

Source: MauritiuS MiniStry of finance and econoMic developMent, March 2015

Netherlands

3rd Qtr14 4th Qtr14

Madagascar South Africa France U.S.A. United Kingdom 0

500 1 000 1 500 2 000 2 500 3 000

tOurism Tourist arrivals for Mauritius (number of tourists)

% change: 4.5 Jan-Sep 2013

694,443

Jan-Sep 2014

725,623 0

200,000

400,000

600,000

800,000

house. While the Labour Party called foul, union organiser Ashok Subron argues there is “no justification for the money the prime minister had in his possession and there is no witch hunt. The prime minister has to answer why he had so much money in his vault.” This leaves Militant Socialist Movement (MSM) leader Pravind Jugnauth in a nearly unassailable position. The MSM rules in a coalition with the smaller Mauritian Social Democratic Party and Muvman Liberater, a group that broke away from the Mauritian Militant Movement (MMM). Together, they hold 47 out of 62 elected seats in the national assembly. The remaining MMM and Labour Party members of parliament (MP) are fighting for their political survival. punished by the people

“They didn’t vote for the new government; they voted against the old one,” former Port Louis mayor and Labour Party MP Reza Issack tells The Africa Report from his office in Curepipe. “We It was just in time, perhaps. Jugnauth werearrogant,madewrongdecisionsand was barely in power for three months refused public debates. It was difficult for the nation to reconcile [itself with] this.” when a banking scandal rocked the For the man on the street, it is unclear island, threatening the country’s offwhether things have changed. “Politishore banking sector and its reputation cians are all the same here in Mauritius: as a regional financial hub. The industry it is all about their families and how they contributes about 10% to the country’s look after each other,” laments Anwar $11.9bn gross domestic product. Ackerbally, a taxi driver and father of In April, the central bank revoked the two, as he drives through Port Louis. licence of British American Investment’s Bramer Bank and also placed its insurThe incidence of rotating coalitions ance unit, BAI Co., into administration. certainly backs that up – Jugnauth had Jugnauth claims that there are links to a already been in an alliance with Ram$690m Ponzi scheme and that the lender goolam, for example. riskeddepositors’funds.Clientshadbeen Others are more positive. “There’s a rapidly withdrawing their money from new mood in the country. Things had Bramer Bank since December. stalled under the old government. The Jugnauth and good governance minnew team is pioneering new possibilities to help push Mauritius forward,” says ister Roshi Bhadain stepped in to calm Ziyad Bundhun, an executive director investors. “This is also to show to the at Rogers Group, a local conglomerate. world that we are not prepared to sweep Former president Anerood Jugnauth anything under the carpet. I can reassure now heads the government as prime minister. The octoThe government is keen genarian leader appointed to show it will not not sweep old hands in senior posts anything under the carpet in the finance ministry and at the central bank. Following the surprise victory in December, you that going forward people will see Jugnauth quickly moved to make some that we mean business and we want to do changes in the financial sector and fired things in a transparent manner,” Bhadain central bank governor Rundheersing says. The ruling party claims the people Bheenick and deputy governor Issa gave them a mandate to clean up after Soormally. He appointed Ramesh Basthe previous administration. ant Roi, who was governor from 1998 to Bankers are putting on a brave face. 2006, to lead the institution. “This is an isolated case. There have the africa report

•

n ° 71

•

j u n e 2 015

been reassurances to the investor community, and the deficiencies in the system will be corrected,” says AfrAsia Bank deputy chief executive Kamben Padayachy. Rogers Capital’s Bundhun is more critical and explains that there were people who were aware of the scandal but political protection allowed the perpetrators to get away with it: “This is a test for the financial sector, and we would like to see the government appointing a commission of inquiry to look at what happened and look at all aspects in order to protect the country.” short-term goals

The authorities are, however, convinced thattheyhavedealtwiththeissueandcan now concentrate on growing the island’s economy and diversifying away from the tourism, textile and sugar sectors. For finance minister Seetanah Lutchmeenaraidoo, this means junking talk of the previous government’s ‘Vision 2020’ programme and focusing on more concrete short-term ambitions and growing the local economy by investing in cities and infrastructure. Lutchmeenaraidoo’s 2015/2016 budget, presented in April, showed lacklustre 3.5% economic growth in 2014. The International Monetary Fund predicts that this will rise to 3.9% for 2015, the africa report

•

n ° 71

•

j u n e 2 015

In a dramatic sweep in February

but the slide of the rupee against the dolformer PM Navin Ramgoolam lar is another concern for the economy. (left) was arrested for corruption More pressing in the long term is meeting the demands of the country’s youth. tius Chamber of Commerce, all the govAt the University of Mauritius, carefree ernment agencies are working together students walk around the campus chatto market the country. Bundhun adds: ting in Creole, French and English. They “The new government has put out all the form part of the new breed of ambitious right signals about investing in Africa. Mauritians who see themselves as part of We may be an island, but we are on the the global economy. “Young Mauritians continent. I really see Africa as the mardon’t want to do back-breaking work in ket where we want to be.” the country’s factories or even sugarcane This may be even more necessary plantations; people have if an important tax treaty aspirations,” says professor between India and MaurJocelyn Laval Chan Low. itius is altered. The counAnd it is these ambitions tries signed a double taxathatareleadingMauritius to tion avoidance agreement look to Africa for its future in 1983 that played a key role Banking contributes growth. With the economic in developing the Mauritian around 10% to the recovery looking weak in financial sector and encourMauritian economy the EU – Mauritius’s main agedIndia-focusedinvestors economic partner – local toroutetheirmoneythrough the country. Discussions are ongoing and companies see the emerging economIndian prime minister Narendra Modi’s ies in Africa as a key centre of growth. government insists that it will not fun“Africa is one area where we would like damentally alter the deal but just wants to feature. [Mauritius] is an attractive measures to prevent abuse of the treaty. financial services centre, and we want “There have been murmurs for more to sell and offer our expertise to other than a decade, and we would welcome African countries,” says Bundhun. some clarity on the issue to put it to rest While there has long been talk of the country increasing its investment in the once and for all,” says AfrAsia’s Padaycontinent, Budhun wants the country to achy. While the uncertainty has brought start ‘Africanising’ its approach and to be some pain, it could ultimately be benefiseen to be serious about partnering with cial if Mauritian firms begin to look elseAfrica. According to Faeeza Ibrahimsah, where for new opportunities borne out communications director at the Mauriif its location close to Asia and Africa. ●

10%

Source: AfDB

Dynastic duo: Pravind Jugnauth (far left) is a minister in his father Anerood’s government

Mauritius | country focus

country focus | Mauritius

PeOPle tO WatCh

Political coalitions and all that jazz Ministers young and old strive for the excellence and innovation of Mauritius’s science and music stars

here’s been change at the top following the election win for the Militant Socialist Movement (MSM) and its coalition partners in December 2014. The defeat of the governing Labour Party and the Mauritian Militant Movement (MMM) took many by surprise. “Politics in Mauritius has always been about alliances,” says University of Mauritius history professor Jocelyn Laval Chan Low, who argues the election is significant because of the voters who failed to show up, “with everyone thinking there would be a big victory for Labour and the MMM.” For the past 50 years, a few families have dominated the country’s political life – perhaps none more so than the Jugnauths. Anerood Jugnauth, who already served four and a half terms as prime minister between 1982 and 2003, is back in the same role following his tenure in the presidency in Paul Bérenger and Navin Ramgoolam’s governments (2003-2012). The popular 85 year old’s task is to revive the economy. Despite his age, Jugnauth is firmly in charge of government affairs. Anerood’s son, Pravind Jugnauth, 53, is the leader of the governing MSM and minister of technology, communication and innovation. Pravind was finance minister and deputy prime min-

ister under Ramgoolam and he also has ambitions to take over from his father. Roshi Bhadain (1) is a rising star in the MSM. The lawyer and former corruption czar was thrust into the spotlight by the Bramer Bank scandal in April. The authorities say the financial institution was involved in a Ponzi scheme that defrauded investors. Seen as close to Prime Minister Jugnauth, Bhadain has the new portfolio of financial services, good governance and institutional reforms. Bhadain tells The Africa Report that he is not getting much sleep: “We have a clear mandate from the people in Mauritius to clean up and the prime minister is very, very clear on that. We have been elected to ensure that all the abuses and all the malpractices and the irregularities that were there in the past are eradicated – and that they don’t recur again in the future.” MsDP wins seats

The MSM formed a coalition with the smaller Mauritian Social Democratic Party (MSDP). Its leader, Xavier-Luc Duval, was part of the former ruling coalition until he stepped down as finance minster in June 2014 after a dispute over proposed constitutional reforms. Duval is now the deputy prime minister and tourism minister. “It was a shock

for everyone that they [MSDP] did so well in the election,” says labour rights activist Ashok Subron. The MSDP has four ministerial posts and holds the position of the deputy speaker. Moving up in the party is the minister of gender equality, welfare and family development, Marie-Joyce Perraud. The former social worker tells The Africa Report that she is stepping into big shoes: “I am conscious that it is a big responsibility and want to bring change to women and families in Mauritius.” MeDicinal Plants

Winner of the AU and the L’OréalUNESCO Women in Science awards, Ameenah Gurib-Fakim (3) is managing director of the Centre for Phytotherapy Research. As a founding member of the Association for African Medicinal Plants Standards, Gurib-Fakim is passionate about plant life and ensuring her country’s and Africa’s unique plant species will be around for generations to come. She is researching the use of herbal products in medicine, cosmetics, aromatherapy and nutrition. Mauritius is not just known for its banks, sugar and textiles. One Mauritian musical export is jazz guitarist Eric Triton (2). Loved by locals for his contemporary sounds, Triton’s most recent album was Tritonik Project One. He has been playing music and collecting guitars for some 30 years, playing Creole blues in Mauritius, Africa and Europe. “Music is my religion and it is the best medium to spread messages of hope and create awareness about what is going on,” Triton told Radio France International in 2013. ● Crystal Orderson in Port Louis

the africa report

•

n ° 71

•

j u n e 2 015

MiCheLiNe PeLLetier/gaMMa

verONiQUe PhitOUssi/CitiZeNside

The bigger picture We have come a long way since 1838. Today, the MCB Group is a leader in financial services in Africa. At the heart of Mauritius, a fast-growing financial hub ideally placed between three continents, we are a trustworthy partner that will help you go places. Together, let’s look at the bigger picture. • Investment Banking • Corporate Finance • Private Banking & Wealth Management • Consulting Contact us: financingsolutions@mcb.mu

mcbgroup.com

country focus | Mauritius

TexTiles

The big neighbour with smaller costs With its skilled workforce, lower wages and duty-free access to US markets reinstated, Madagascar offers opportunities to Mauritian textile companies but there are also companies active in areas like publishing and tourism.” De Bollivier argues that Madagascar could offer a better business climate for textile manufacturers, however: “There are too many administrative procedures, problems with corruption and a weak judicial system. So because of this, and although there is a lot of potential here, Madagascar isn’t a hotspot for Mauritian investors.” Companies complain about the poor quality of the electricity supply and delays and corruption at the port of Toamasina. raw materials

But there are other, more fundamental issues, too. Despite cotton featuring in its agriculture, almost no cloth or haberdashery items are made in Madagascar, so the materials to make into the clothes have to be imported. Madagascar is also far away from markets sewing machines are whirring in North America and Europe. again after Madagascar paid One further factor that may keep the price for political instability Mauritian investors away is fears about Madagascar’s political stability. There Mauritius. And, of course, the labour was a coup in 2009 and a long political costs here are much lower,” Hargreaves transition that ended with elections at tells The Africa Report. The minimum the end of 2013. Some investors may wage in Madagascar is around $50 per be waiting for another couple of years month; a low-level worker’s salary in of calm before looking at Madagascar Mauritius is five times higher. There are other advantages to manuagain. Nevertheless, even now, World Knits’ Hargreaves says all the Mauritian facturing in Madagascar. Compared to, groups now present in Madagascar are say, Bangladesh, it is close to Mauritius, looking to expand their operations. and French is spoken in both countries, The government of Madagascar is which makes communication easier. even more optimistic. Madagascar’s The two countries are also members of three regional trade blocs, industry minister, Narwhich reduces import and son Rafidimanana, says export duties. its target is the creation of 200,000 new jobs in the texMarc de Bollivier, the tile industry within the next chief executive of Mauritius four years. One of the conCommercial Bank’s Madasequences of the return to gascar operations, says that Madagascar-Mauritius ties The Madagascan democratic order is that, as of June 2014, Madagascar have grown steadily over the government aims to create once again has duty-free past two decades. “Mauriaccess to the US market untian investment started with der the African Growth and the textile industry,” he jobs in the textile says. “From textiles, we’ve Opportunities Act. This will sector by 2019 provide a bigger market for moved into many different MiniStry of induStry areas, including services. So Source: all its exports. ● and Private Sector there’s trade in products, develoPMent, MadagaScar Martin Vogl in Antananarivo All rights reserved

n the ground floor of the World Knits factory in the Madagascan capital, Antananarivo, mounds of fabric sit waiting to be cut and made into clothing. All of this fabric is made in the company’s factories on the neighbouring island of Mauritius before being shipped to Madagascar. Upstairs, on the main factory floor, 800 workers assemble the cut pieces to make fancy T-shirts, pyjamas and prêt-à-porter clothing like women’s jackets. Once the clothes are finished and packed, workers take them downstairs again. In a vast storeroom, piles and piles of brown boxes are ready for shipping. The factory makes approximately 25,000 garments each day, which are sold to large-scale retailers such as South Africa’s Woolworths. World Knits Mada, which launched its operations in 2013, is one of a handful of Mauritian-owned factories on the island today. Its managing director, John Hargreaves, is an old hand as he launched Madagascar’s first Mauritian-owned factory for the textile manufacturing giant Ciel Textile in 1990. “The thing that drove Mauritian companies to Madagascar was a lack of manpower. There simply aren’t enough workers in

200,000

the africa report

•

n ° 71

•

j u n e 2 015

Kross Border benefits as Mauritius lures “business with substance” the Mauritian government’s attempts to diversify the economy from its reliance on sugar started to bear fruit. 21 years later, its financial services industry is well established, and the island is positioning itself as a hub for investment into Africa. Kross Border, which originally formed part of KPMG Mauritius but was spun off and rebranded in 2003 to comply with the Sarbanes-Oxley Act, has shared in the Mauritian success story: its staff complement has doubled to 120, and revenue jumped 82% over the past five years in US dollar terms. “We are increasingly seeing business with substance coming here, and I think it is a trend that will continue,” said Jaye Jingree, managing director of Kross Border and one of its founders. An increasing number of Australian mining companies, for example, are establishing offices in Mauritius to manage investments in Africa. Setting up a base in Mauritius offers a stable environment and helps to manage the time difference between the continent and Australia, said Jingree. Gone are the early days of working from 9 to 4 – with global clients to serve, office hours and weekends are no longer set in stone. “We are focused on our service delivery. We respond fairly rapidly to clients, and we’re available 24/7. This, along with the long-term relationships we have with our clients and a low turnover of staff help to give us a competitive advantage. Many of our employees have been with us from the start, and it gives clients some comfort to deal with the same people over many years,” said Jingree. Kross Border currently manages 650 structures, including multinational companies, high net worth individuals, investors, fund managers and financial institutions. The firm has a branch in Singapore and is looking to set up offices in London, Hong Kong and Mumbai. ADVERTORIAL

It has representatives in a number of countries around the world and is affiliated with Russell Bedford International, a global network of independent firms of accountants, auditors, tax advisers and business consultants Kross Border’s main service offerings include fund administration, tax advisory and compliance, asset protection, company formation, re-domiciliation and statutory compliance, accounting and payroll, ship and yacht registration, trade support, fiduciary services and occupation and permanent residence permits.

M. GEORGES CHUNG PRESIDENT

Mauritius has double taxation treaties with 37 countries, with many more under negotiation or awaiting ratification, offering investors greater opportunities to plan their investments. It also has investment promotion and protection agreements in place with 22 countries, including China, Singapore, India, South Africa, Germany, the UK and Switzerland. With uncertainty surrounding the future of a doubletaxation agreement with India, a big business driver for the Mauritian ﬁnancial services sector, there is a major focus on Africa. “At the moment, everyone is focused on Africa. It is a difﬁcult market to enter – you’re dealing with different countries, different languages. There are many challenges. Mauritius offers a stable platform from where to do business,” Jingree said. Clients are particularly interested in East and West Africa, with investments going into mining, oil & gas, agri-business, infrastructure development and trading, he said. “Mauritius has been a very important point for Indian companies to channel foreign direct investment through Mauritius. Now we’re seeing companies from across the globe using Mauritius as a hub for investment worldwide.”

M. JAYE C.JINGREE MANAGING DIRECTOR

Kross Border

St Louis Business Centre, Cnr Desroches & St Louis Streets, Port Louis, Mauritius www.krossborder.com

DIFCOM/CDS - PHOTOS : DR.

Back in 1993 when Kross Border was established,

Nasseem ackbarally/TraNsTerra media

ICT

Outsourcing faces new challenges

Costs are rising and global competition is stronger, so the government and players in the BPO sector are looking to increase the complexity of the services on offer

auritius’s information and communications technology (ICT) and business process outsourcing (BPO) sectors, which began in the late 1990s as a means to diversify the economy away from sugar and textiles, have reached a growth plateau. According to business leaders, Mauritius is still far from its objective of becoming a fully-fledged ICT hub. Vidia Mooneegan, managing director at Ceridian Mauritius, which specialises in human capital management and software creation, says the government’s target of returning to double-digit growth is not an easy task. He says it will take a series of measures including heavy investment in education and infrastructure to help the industry move up the value chain. So far, the new government has voiced high ambitions but been slow to take action towards attaining them. He also says that new financial structures are required. “Mauritius needs angel investors to invest their own money in start-ups. When investors see the success of these start-ups, then we will have venture capital funds looking for projects. This is how it works in other parts of the world, for example in Silicon Valley, London, Berlin, Israel and South Africa, which is closer to home,” Moonegan tells The Africa Report. There were 138 companies working in Mauritius’s ICT sector in 2013. To take the industry to its next level, the government has set itself the lofty objective of transforming Mauritius into a smart island. The Smart Mauritius

Mauritius has fast connectivity, but needs to up the ante to compete with cheap-labour competitors

more skills, more business

Focusing on high-end activities would mean reinventing the ICT sector, which currently employs around 19,000 people and contributed 6.5% to gross domestic product in 2014 according to government statistics. Training workers to work in jobs that require more skills will take time, from five to 10 years say experts in the sector. Charles Cartier, the head of the Outsourcing and Telecommunications Association of Mauritius, told Business Magazine in March that “raising the level of activities in BPO is inevitable, for the simple reason that Mauritius is becoming more and more expensive”. Mauritian operators are finding it more difficult to compete with low-cost call centre operators in other countries due to rising labour costs at home. Mauritian companies in the busiExpected ICT ness processing space are following sector growth in their peers in the search for oppor2015. Growth has tunities elsewhere in Africa (see slowed since the page 50). Ceridian’s Mooneegan 12.7% of 2008 says that Mauritius needs to learn Source: StatiSticS how to operate on the continent and MauritiuS focus on countries where it understands market dynamics, has established business ties and has a proven track record. CSL, a subsidiary of Mauritius Telecom and an operator of one of the country’s first call centres, opened a 100-seat operation in Madagascar in February. Mauritius-based Bhumishq also said in late 2014 that it is targeting Africa’s market for data centres as part of its expansion plans. Bhumishq and its Ethiopian partner South West Technologies launched Addis Ababa’s first third-party cloud computing and data centre in 2014. ●

Honoré Banda in Port Louis

Across All Borders

No matter where you are, or where you want to be, or why, or when, we’re well placed to assist you. That’s because we’re truly universal and we have the platform and strength to support your goals. We deliver innovative, integrated ﬁnancial solutions to:

• Foreign Companies • Global Businesses • Trusts, Funds and Foundations • Non-Resident Individuals Contact us for your Private Banking and International Finance requirements.

We’re born in Mauritius, increasingly African and deﬁnitely international.

+ (230)202 9200 - info@bankone.mu www.bankone.mu -

Difcom - F.C. Photos : DR

Strategy, which the government is finalising, is based on the rolling out of bandwidth and several other projects. Pravind Jugnauth, leader of the governing Militant Socialist Movement and the government’s technology and information minister, is piloting the new strategy, which includes the creation of a new techno park, the establishment of areas of free Wi-Fi and a third submarine fibre-optic cable for the island country. Another goal is to increase internet connection speeds from 1Mbps currently to 10Mbps in the short term while keeping prices the same. The price of bandwidth is no longer a great constraint on the sector. The World Economic Forum published its Global Information Technology Report in April and it ranked Mauritius as the third-best country in the world in terms of the affordability of connectivity. Mauritius was the only African country to rank in the top 50 overall, and its weakest score was in infrastructure and digital content, where it ranked in 77th place out of 140 countries. Local companies have been complaining about the legal framework for the ICT sector, saying that the 10-year-old ICT Act needs to be revised in order to encourage growth and adapt to changing technologies.

country focus | Mauritius

interview

Seetanah Lutchmeenaraidoo Finance minister

We can emerge as a regional hub

eradicating corruption, promoting new sources of growth and shifting investment focus from asia to africa are among the challenges ahead

n o l d ha n d at the finance ministr y, Seetanah Lutchmeenaraidoo helped to reengineer the island’s economy in the 1980s. He has faced many obstacles since returning as finance minister in December 2014: from a sluggish growth rate to a bank scandal that threatens Mauritius’s role as a financial hub. Meanwhile, the government’s promise to spread wealth more equally – raising hopes of greater social spending – is a challenge that has stretched many a finance minister in lean times. More money pumped into urban development projects might go some of the distance – and the government hopes that a re-energised economy will provide the jobs to do the rest. One sector attracting renewed attention is the marine economy, including new fishing ports. TAR: The regulator revoked the licence of British American Investment’s (BAI)BramerBankinApril. Prime Minister Jugnauth said there is evidence of a Ponzi scheme. Are you worried this is impacting on Mauritius’s standing?

SeeTAnAh LuTchMeen ARAIdoo : There’s a process of cleansing and all that is happening has to come out. We were given a broom to clean by the people, and we are cleaning house now. All that was illegal and immoral is coming out too. As stated by the prime minister, the banking issue and the BAI collapse have caused a shock to the population. But the good news is this is part of the cleansing process. The intense cleansing also shows all the shortcomings we might have. And no, it is not threatening the banking industry of the country. You plan to revive the local economy with massive investment in the local port and the so-called ‘ocean economy’. You can’t become a competitive country if your infrastructure is weak or if you’re not going to cope with international arrivals. What we need at least is a port and and an airport that is at our beck and call for local and international investors. We are investing not only in the extension of the port but in the development of a port that is compatible with our ambition in the region. The port will become a key contributor to the development of the ocean economy. And over the next five years, there will be unprecedented high investment in the port infrastructure. We have a multibillion-rupee project on the cards which includes two fishing ports. We are also in negotiations with foreign investors for ● ● ● the africa report

•

n ° 71

•

j u n e 2 015

country focus | Mauritius

● ● ● the port and the infrastructure investment. The port project will connect all the ports in the region and would enable thousands of vessels to drop anchor in our harbour while supplying a wider variety of port and maritime services. The master plan is focused on making the Port Louis harbour a hub for bunkering, seafood, cruises and petroleum. This project has the potential to make a double-digit contribution to the gross domestic product. So the number one infrastructure plan is the port and also the airways. We are opening our skies so that new airlines can come and service the country and the region with more regular flights. I have no doubt that we will have more regular flights to and from other African countries and we will become the regional hub for air transport.

You want Mauritius to achieve higher growth, especially for small and medium-sized enterprises (SMEs). What are your ideas for the sector? We are a multiracial, multilingual country. We come from Europe, Asia and Africa. This has given us a melting pot of cultures. This is probably the magic we have and that Mauritius offers. We have a population that can deal with challenges, overcome them and then progress.

The future will be challenging because the world economy has changed. Our traditional sectors are achieving low growth and low investment, and we need to think outside of the box. One sector we are focusing on is the SME sector. We are proposing a one-stop-shop approach to SMEs. We are launching the SME bank, which is an expression of trust and faith in the youth of this country. We are going to lend them money for projects without taking any guarantee or any security. An amount of R10bn ($289m) will be made available to the bank over the next five years. And the one-stop shop will provide all the support, financing and information to entrepreneurs. Explain the ‘Smart Cities’ concept, which is seen as a plan to revolutionise the way Mauritians live, work and play. We have eight major projects, and we have nearly finished with the specific planning and preparation of the Smart Cities concept. The implementation is starting now. The eight smart cities are substantial areas of development that will provide state-of-the-art connectivity, provide modern transportation and generate their own resources in terms of water and energy. The areas are located in the south, northern, centre, north-east and west of the island.

With the shift away from channelling investment to Asia, what are your plans for increasing investment on the African continent? This is probably not the easiest task. It is much easier for us to deal with Europe than to deal with Africa because of our colonial past. But nothing is being left unturned to open up to the region. We are in fact a member of the Southern African Development Community (SADC), the Common Market for Eastern and Southern Africa, and the African Union, so we are fully integrated with Africa at the level of international organisations and regional ones. This is our commitment to the continent. We have some experience with local economic zones. We are working very closely with some African countries to help them with the establishment of economic zones. Discussions are far advanced with Senegal, Ghana and Madagascar. Those are three countries where we expect important cooperation to take place. The future is challenging, but I am convinced that we can emerge as a regional hub.

Back in Business 24 May 1944 Born in Mauritius 1973-1980 Worked as an economist in the commerce ministry. 1983-1991 Served as finance minister 1991 Launched a career as an investment adviser 1998-2001 Named chairman of State Bank of Mauritius December 2014 Elected to parliament and named finance minister

A new stateowned bank will replace Bramer Bank, disgraced by a Ponzi scheme

How do you intend to boost economictieswiththeSADCregion? One big ambition for us is that Mauritius becomes a focal point in the region. We are not in competition with any other destination – not South Africa. It’s just that we want to become a regional focal point. But how do we achieve it? By opening up the economy and by mounting our resources and being a stepping stone for business in Asia to Africa [...]. Our ambition there is to be a regional hub for business and using Mauritius as a stepping stone for our international investors to Africa. And we are committed to serving the continent. We all want a prosperous region and Africa.

Are you happy to be back as finance minister? This is a very hot seat, but this is a mission. It’s quite a tough one, but I am ready for it. ● Interview by Crystal Orderson in Port Louis

the africa report

•

n ° 71

•

j u n e 2 015

Africans Building KappaCity

Ka Petrol Ka Power

Indigenous Oil & Gas Companies Production Exploration Associated Services & Industries

Kapp Oil & Gas Pipelines Water Network Power Transmission & Telecom Lines

Hydro Power Generation Gas Fired Power Generation Associated Services & Industries

www.kappafrik.com

Gym

Strategic Planning Seminar Hennessy

7AM TO 7.45AM

10AM TO 12.30PM

Your Business Trip

Lunch at Hennessy 12.45PM TO 1.45PM

Meeting with Patrick La Terrasse, Labourdonnais 4PM TO 4.45PM

in Mauritius

Catamaran Sundowner Departure: Le Suffren 5.30PM TO 6.30PM

Massage I Spa 7PM TO 8PM

Japanese Dinner IZUMI, The Address 8.30PM TO 10.30PM

Indigoâ&#x20AC;&#x2122;s selection of 4* and 5* business hotels presents the perfect mix of unequalled business services and leisure options. its unique sense of style, outstanding service and business practicality in the capital Port Louis and in Ebene Cybercity. For a totally successful business trip in Mauritius, Indigo is the way to go. Labourdonnais Waterfront Hotel

Hennessy Park Hotel

The Address Boutique Hotel

www.labourdonnais.com

www.hennessyhotel.com

www.addressboutiquehotel.com

Caudan Waterfront, PO Box 91, Port Louis, Mauritius - T (230) 202 4000 - F (230) 202 4040 - E reservations@indigohotels.com - www.indigohotels.com

country focus | Mauritius

the stores that work in Mauritius share some of the values found at Port louis’s famous bazaar

SamueL ZuDeR/LaIF-Rea

Retail

Keeping an old tradition alive

Family-owned shops are going strong and fending off the advances of big chains and retailers, including newer arrivals from South Africa

he pavements in downtown Port Louis are abuzz with traders selling everything from tasty pineapple with spices to cookware and women’s clothing. But off the street there is a steady stream of people to a retailing institution, Tulsidas. Since the 1940s, people from all walks of life have bought their saris and kurtas at the Tulsidas shops across the island. At the main store in Port Louis, representatives of three generations – a grandmother, a mother and a daughter – discuss the latest fashions and colours, with their male relatives keeping a watchful eye. Staffers share their opinion about the quality of fabric, the intricate stitching and the payment options available. A recent study on shopping behaviour in the country shows that the Mauritian retail sector is dominated by such traditional outlets. personalised service

“They have big volumes and variety here. My grandmother and mom shopped here and it has decent prices,” says shopper Sweetine Buldawy. Fourth-generation owner Dinesh Tulsidas says it is an emphasis on service

of the fabrics and the quality and huge volumes required. The retail sector is a tough one to crack. Mauritians are fickle about brands and their wardrobe choices. “There’s decent purchasing power here, but the growth aspect is very challenging,” says Dinesh. The retail and wholesale sector rose by just more than 3% in 2014, a decrease from the previous year. At the top-end Bagatelle shopping mall, a steady stream of shoppers are buying goods at locally-owned stores, while South African clothing outlets like Aca Joe, Jenni Button and shops like Benetton and Guess are empty. “The past 10 years has seen an explosion of shopping malls, but not everyone has survived. Most of the malls are having a tough time, and retailers located at the malls, including the South African ones, are struggling,” says Dinesh. bargain hunters

Across town at the local Winners supermarket, the company’s dynamic chief operating officer, Nicolas Merven, says the retail market is competitive and that has ensured the Tulsidas brand is small. “Although competition is tough alive and booming in the tough retail we are keeping close to our customer environment on the island: “Everyone base,” he says, adding that people are knows us,” he says. “We are the first stop always looking for a bargain. shop for any bride and her family in Mauritius. They know we offer a loyal A 2014 study shows that nearly 40% and personalised service, and generof people surveyed had visited at least one of the 20 Winners stores that year. ations keep coming back.” The local retail giant is part The store has an averof the IBL Group, which age daily footfall of 1,000 had a turnover of R17.5bn customers, with the avin 2011/2012 and employs erage client spending more than 7,000 people. The R2,000-3,000 ($57-86) conglomerate operates in on an outfit. Dinesh says six majors sectors including Tulsidas has invested commerce, logistics and reheavily in the 10 shops, tail. Winners had a turnover including four specialof R6bn in 2014. ised bridal outlets. Wholesale and retail Several South African Dinesh says that Tulsitrade in 2014 stores, including ShopRite das has a turnover of a totalled R39.3bn and Spar, have opened opfew million rupees and it Source: chamber of commerce erations in Mauritius. Othimports clothing from Iners, like Pick n Pay and Game, lost mildia with the help of incentives from the Mauritian government. The company lions of rupees in unsuccessful ventures. “It’s a difficult retail environment, but imports the clothes duty free because we know our market and Winners is a the government recognises that they brand name on the island,” says Mercannot be produced locally. Despite ven. He plans on opening three more a strong textile industry in Mauritius, Tulsidas opts to import from India and stores in the next year and a half. ● Crystal Orderson in Port Louis not China due to the intricate nature

SAL

the africa report

•

n ° 71

•

j u n e 2 015

A sharp eye for new investment opportunities.

Asset Management â&#x20AC;˘ Trust Services Wealth Management â&#x20AC;˘ Corporate Advisory www.rogerscapital.mu

day in the life Extraordinary storiEs of ordinary pEoplE

SIegfrIed Modola for The afrIca reporT

Writing a way

Mohamed Hussein, 19, is a Somali refugee who was born in the Dadaab camps in Kenya. He is trying to use his passion for writing to achieve success

always wake up at the crack of dawn. I love relishing the serene, tranquil moments of the morning, before the world around me gets hectic and strenuous. I think this has to do with the history of my family and how we got to the Dadaab refugee camps. For decades, my family relocated from country to country, searching for better opportunities. My father left Ethiopia for Somalia before the civil war there forced him to flee with our family again to Kenya. After we lived in north-eastern Kenya for a while, the UN High Commission for Refugees moved us to Dadaab. That is where I was born, the first of my family to be born in a refugee camp. I am also the first person in my family to finish high school. I worked hard throughout the years to achieve my dream. I have to admit that I quit school when I was in the third grade. I started seeing friends getting better in maths and English and instantly realised I had to go back. From then onwards, I was always first among equals – especially in English literature. In high school, I read and wrote a lot. I wrote for two of Kenya’s biggest dailies: the Daily Nation and The Star. I also started a blog to tell the world about what it means to live in Dadaab. I wrote about Somali women and their strength, about education,

and about poverty in the camp. My most famous piece was a letter to the Saturday Nation about the waning reading culture in Kenya and how schools were to blame for not encouraging young people to read beyond the classroom textbooks. A Kenyan lawyer living in South Africa read my letter and donated over 1,000 books to my school. The school named the library after him and me. I don’t know where I will go from here, or if I will join a university. Over the years, some of my colleagues in Dadaab got scholarships to study abroad and I would be very happy if I got the chance too. I don’t know what the future holds for me. I am a refugee in a country that wants us to go back to our war-torn nation. What people don’t understand is that refugees are themselves victims of insecurity. I don’t believe there’s any Somali refugee who wishes to stay in the camps for rest of their lives.

persistence is key

The closure of Dadaab will be a dilemma for my family. Perhaps it would be good if Kenya offers us citizenship. Kenya doesn’t know us. It actually sees us as the enemy. A lot of people here still discriminate against Somalis. I have never been to Somalia but I would like to go and visit. I know I am from Somalia but Kenya is my first home and where I was born. I believe persistence is key. Sometimes, I luxuriate in the thought of publishing my first novel or winning a major writing fellowship. I would do anything these days just to distance myself from the thought of war, the memory of displacement and the travails of living in a refugee camp. ● Interview by Abdi Latif Dahir the africa report

•

n ° 71

•

j u n e 2 015